Exam (elaborations)
Escrow And Settlement –Questions With Solutions
Escrow And Settlement –Questions With Solutions
[Show more]
Content preview
Escrow And Settlement –Questions With SolutionsWhich of the following would be considered a seller debit in the closing
statement? Correct Ans - The seller's current mortgage payoff
The seller's debits include expenses, the seller's share of prorated items,
and the payoff of the seller's current mortgage loan or other lien.
Who generally takes responsibility for reporting required information on
Form 1099-S after a real estate closing? Correct Ans - The closing
agent
Generally, the closing agent will notify the Internal Revenue Service; if not,
the lender should. However, brokers and the parties to the transaction can
also be held liable if the required report isn't filed.
Seller Jamison is closing on his property with buyer Conrad. Jamison paid
the current year's property taxes already. Is this a prepaid or accrued
expense, and how will it be represented on the settlement statement?
Correct Ans - The taxes are a prepaid expense, and will appear as a
buyer debit and a seller credit.
Per FIRPTA, trusts with foreign beneficiaries must withhold what
percentage from the sale of U.S. properties? Correct Ans - 35%
Marco, a salesperson for Maricopa Realty, just walked out of a closing with
his commission check in hand. Is this legal? Correct Ans - Yes, if the
broker issues written permission to the closing company.
Arizona statutes permit closing companies to disburse commissions
directly to licensees at closing if the broker has provided written
permission to the closing company.
Angelique, a foreign investor, is getting ready to sell her urban condo. What
percentage of withholding of the sales price will FIRPTA require?
Correct Ans - 15%
The Real Estate Settlement and Procedures Act requires that lenders
provide borrowers with a full disclosure of closing costs in a closing
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$12.92. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80202 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
