Skip to content

14.ESCROW AND SETTLEMENT Quiz

14.ESCROW AND SETTLEMENT Quiz

Time limit: 0

Quiz Summary

0 of 20 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 20 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

14. ESCROW AND SETTLEMENT 0%

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Question 1 of 20

1. Question

What is the primary role of an escrow in real estate transactions?

To provide financing to the buyer.
Correct Incorrect Correct answer

To act as a neutral third party holding documents and funds.
Correct Incorrect Correct answer

To assess the property’s market value.
Correct Incorrect Correct answer

To negotiate the sale price between buyer and seller.
Correct Incorrect Correct answer

Correct

Incorrect
Question 2 of 20

2. Question

Who are typically the parties involved in an escrow transaction?

Buyer, seller, and mortgage broker only.
Correct Incorrect Correct answer

Buyer, seller, escrow agent/company, title company, and lender.
Correct Incorrect Correct answer

Buyer, real estate agents, and property inspector.
Correct Incorrect Correct answer

Seller, buyer’s family members, and appraiser.
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 20

3. Question

What does a Uniform Settlement Statement include?

A list of the buyer’s and seller’s personal belongings.
Correct Incorrect Correct answer

The final closing costs paid by both buyer and seller.
Correct Incorrect Correct answer

Only the seller’s expenses related to the transaction.
Correct Incorrect Correct answer

The property’s original purchase price for comparison.
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 20

4. Question

What is a debit in a real estate settlement statement?

A credit returned to the buyer.
Correct Incorrect Correct answer

Any charge or cost incurred during the transaction.
Correct Incorrect Correct answer

A discount given to the seller.
Correct Incorrect Correct answer

An adjustment for prepaid taxes.
Correct Incorrect Correct answer

Correct

Incorrect
Question 5 of 20

5. Question

Which of the following is considered a credit in settlement statements?

The buyer’s earnest money deposit.
Correct Incorrect Correct answer

The seller’s mortgage balance.
Correct Incorrect Correct answer

Cost of home inspection paid by the buyer.
Correct Incorrect Correct answer

Repair costs paid by the seller.
Correct Incorrect Correct answer

Correct

Incorrect
Question 6 of 20

6. Question

How are commissions typically distributed to real estate agents?

Directly by the buyer at closing.
Correct Incorrect Correct answer

Through the escrow company, as instructed by the buyer.
Correct Incorrect Correct answer

By their designated broker, as per the contract.
Correct Incorrect Correct answer

Individually by the seller after closing.
Correct Incorrect Correct answer

Correct

Incorrect
Question 7 of 20

7. Question

What is “Double Escrow”?

A method to extend the escrow period for difficult transactions.
Correct Incorrect Correct answer

A process where the seller becomes the buyer in a second transaction.
Correct Incorrect Correct answer

A scenario where a property is bought and then immediately resold by the buyer.
Correct Incorrect Correct answer

When two escrow companies manage one transaction for added security.
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 20

8. Question

What is FIRPTA?

A federal law imposing tax on foreign persons selling U.S. real property interests.
Correct Incorrect Correct answer

A state regulation for domestic property transactions.
Correct Incorrect Correct answer

A guideline for calculating escrow fees.
Correct Incorrect Correct answer

A disclosure requirement for environmental hazards on property.
Correct Incorrect Correct answer

Correct

Incorrect
Question 9 of 20

9. Question

When are mortgage payments considered paid in arrears?

When the lender receives payment before the loan is issued.
Correct Incorrect Correct answer

After the month for which the mortgage covers has passed.
Correct Incorrect Correct answer

If the buyer delays the first mortgage payment beyond 30 days.
Correct Incorrect Correct answer

When payments are made in advance for future months.
Correct Incorrect Correct answer

Correct

Incorrect
Question 10 of 20

10. Question

How is the day of closing financially treated in Arizona?

As belonging to both buyer and seller equally.
Correct Incorrect Correct answer

As a neutral day with no financial transactions allowed.
Correct Incorrect Correct answer

As belonging to the seller, who incurs all costs.
Correct Incorrect Correct answer

As belonging to the buyer, who incurs the costs for that day.
Correct Incorrect Correct answer

Correct

Incorrect
Question 11 of 20

11. Question

Which of the following charges could be prorated in a settlement?

Fees charged by the escrow company
Correct Incorrect Correct answer

Lender discount points
Correct Incorrect Correct answer

Property taxes
Correct Incorrect Correct answer

Any of these can be prorated
Correct Incorrect Correct answer

Correct

Incorrect
Question 12 of 20

12. Question

In a settlement statement, what are debits?

Refunds issued at the close of escrow
Correct Incorrect Correct answer

Costs or charges that a party is responsible for paying
Correct Incorrect Correct answer

Credits due to overpayment of fees
Correct Incorrect Correct answer

The difference between the sale price and the loan amount
Correct Incorrect Correct answer

Correct

Incorrect
Question 13 of 20

13. Question

What is the role of the “escrow officer”?

To negotiate the sale price between buyer and seller
Correct Incorrect Correct answer

To oversee the closing process and ensure all conditions are met
Correct Incorrect Correct answer

To inspect the property for any defects
Correct Incorrect Correct answer

To provide financing to the buyer
Correct Incorrect Correct answer

Correct

Incorrect
Question 14 of 20

14. Question

How is the day of closing treated financially in Arizona?

It is considered a day of no financial activity
Correct Incorrect Correct answer

Costs incurred on this day are divided equally between buyer and seller
Correct Incorrect Correct answer

The buyer is responsible for all costs incurred on the day of closing
Correct Incorrect Correct answer

The seller covers all expenses on the day of closing
Correct Incorrect Correct answer

Correct

Incorrect
Question 15 of 20

15. Question

What is the significance of earnest money in an escrow transaction?

It is a penalty fee for late closing
Correct Incorrect Correct answer

A deposit made by the buyer to show commitment to the transaction
Correct Incorrect Correct answer

The total amount payable to the escrow service
Correct Incorrect Correct answer

A refundable fee if the transaction does not close
Correct Incorrect Correct answer

Correct

Incorrect
Question 16 of 20

16. Question

What happens in a “double escrow” scenario?

The buyer sells the property to another buyer before the original escrow closes
Correct Incorrect Correct answer

Two separate escrow accounts are opened for buyer and seller
Correct Incorrect Correct answer

The escrow period is doubled to allow for financing delays
Correct Incorrect Correct answer

Both buyer and seller must provide double the usual earnest money deposit
Correct Incorrect Correct answer

Correct

Incorrect
Question 17 of 20

17. Question

Under FIRPTA, what is required of purchasers of U.S. real property interests from foreign sellers?

To ensure the property meets certain environmental standards
Correct Incorrect Correct answer

To withhold a portion of the sale price for tax purposes
Correct Incorrect Correct answer

To obtain a foreign investment permit
Correct Incorrect Correct answer

To pay the seller in the currency of their home country
Correct Incorrect Correct answer

Correct

Incorrect
Question 18 of 20

18. Question

What are “underwriting fees” associated with?

The cost of a home inspection
Correct Incorrect Correct answer

Fees charged by a mortgage lender for loan processing
Correct Incorrect Correct answer

Legal fees for reviewing the title
Correct Incorrect Correct answer

Escrow company fees for managing the transaction
Correct Incorrect Correct answer

Correct

Incorrect
Question 19 of 20

19. Question

What is the “Tax Service Fee” in a real estate closing?

A fee for transferring property taxes from seller to buyer
Correct Incorrect Correct answer

A charge for a third-party service that monitors property tax payments
Correct Incorrect Correct answer

The cost of filing the property deed with the IRS
Correct Incorrect Correct answer

A municipal fee for updating the property’s tax records
Correct Incorrect Correct answer

Correct

Incorrect
Question 20 of 20

20. Question

How are mortgage payments typically handled in Arizona?

Paid in advance for the upcoming month
Correct Incorrect Correct answer

Paid at the end of the month for the previous month’s use of funds
Correct Incorrect Correct answer

Included in the property’s sale price and settled at closing
Correct Incorrect Correct answer

Prorated based on the day of the month the sale closes
Correct Incorrect Correct answer

Correct

Incorrect

Login

Accessing this course requires a login. Please enter your credentials below!

Username or Email Address

Password

Remember Me

Lost Your Password?

Register

Don't have an account? Register one!

Register an Account