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Details Title: PA Real Estate Exam Description: Settlement Total Flash Cards: 14 Created: 07/18/2005 13:06:47	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term RESPA Definition Real Estate Settlement Proceedures Act The purpose of this is to protect the consumer who obtains a loan to purchase a 1-4 family dwelling. Term Requirements of RESPA Definition The lender must provide the borrower w/a consumer info booklet w/in 3 business days following the mortgage loan application date The lender has 3 days to provide a good faith estimate of settlement costs that the buyer is likely to incurr The HUD-1 settlement statement must be used at the accutal settlement and the borrow must receive a completed copy The borrow has the right to review the settlement statement 1 day before closing Parties that arrange for settlement serviecs cant get a kickback, rebate or fee for services not performed, and MUST disclose to borrower any interests or arrangements if referring a borrower to that provider. Seller can't require specific providers Excess funds paid by borrower cannot exceed to months worth of funds Brokerages may use a computerized loan if they disclose the fee in writing Term Where is settlement held Definition Anywhere, usually the title insuance agency's location Term Who should be consulted regarding settlement date Definition seller, buyer, lender, title insurance company, attorneys, and cooperating brokers Term Who should attend settlement Definition seller, buyer, attorneys, and cooperating brokers Term What documents must be at settlement Definition Mortgage documents and check for buyer Deposit check New Deed Hazard and or flood insurance policy/binder as well as buill or receipt Title insurance policy or binder Certifications or receipts for property taxes and other lienable municipal services Wood infestation report if required Pay-off statements for seller's mortgage and other liens Certificate of occupancy Other certifications and or reports which may be required by the purchase agreement or a lender as well as a bill of sale or receipts for all certificates/reports Term What is the role of the settlement officer at settlement Definition Complete the requests of the title insurance company and the buyer/borrower's lender complete the settlement statement Collect and disperse funds Term What is the role of the real estate agents/attorneys Definition Provide the settlement officer with necessary information and documents explain the documents that must be signed explain the settlement statement Collect their fee Term What is the role of the seller at settlement Definition sign documents, including the deed approve the settlement statement give deed and keys to the buyer receive a proceeds check Term What is the role of the buyer at settlement Definition Sign documents approve the settlement statement pay additional funds as required receive teh deed and keys from the seller Term section 35.334 PA state Real Estate Commission's rules and Regulations Definition Requires real estate liscensees to provide a written estimate of closing costs to the parties before they sign the purchase agreement. This will need to be amended with counter offers. Just prior to settlement another estimate should be provided so the parties have funds to complete the transaction Term Typical Closing costs Definition Any of these can be negotiated as to who pays Title insurance Recording fees Transfer tax Survey Notary fee FINANCE RELATED appliaction fee appraisal fee credit report loan origination fee loan discount fee VA Funding fee Mortgage insurance Interest to the first payment Wood infestation report Reserves deposited w/lender for escrow account Hazard Insurance Flood Insurance Taxes MISC Brokerage commissions Broker Services Certificate of Occupancy Other certifications Term Proration Definition To divide, distrubute, or assess proportionately based upon the date of settlement. Necessary for property taxes, water and sewer, association fees, interest on a mortage assumption, rents on an income producing property. Term HUD-1 Definition Uniform Settlement Statement is an itemization of all charges which helps to make sure that they are paid by the proper party. It determines the seller's net proceeds from the sale, this will occur if the sale price exceeds the total of the seller's closing costs and liens Determin the amount of additional funds required from the buyer to complete the transaction. These funds should be brought to the settlement as cash or certified check.