Exam 13: Contracts for Sale and Closing

Contracts for sale may contain sections that cause implementation of the contract to depend on the successful completion of some prior action such as the buyer's ability to obtain financing on specified terms.This type of contract is commonly referred to as a(n):

Recording documents in the public records informs anyone who may have a potential interest in a property of both the owner and lender.In so doing,it provides what is commonly Referred to as ____________ of an interest in real property.

Since the issues in many transactions are similar,brokers often use standard preprinted contract forms.Generally,the best standard form contracts are those prepared and approved by which of the following parties?

The Real Estate Settlement Procedures Act (RESPA)is a federal law that requires federally chartered or insured lenders to provide buyers and sellers with expectations of their closing costs prior to the closing date.When a borrower (the buyer)applies for a loan,the lender will provide him/her with which of the following forms that includes details pertaining to specific loan information and an estimate of expenses that the borrower is likely to incur at the closing?

The laws of some states require that real estate brokers provide buyers and sellers with a list of estimated closing costs before signing a contract for sale.At the closing,it is typically which of the following party's responsibilities to pay the full premium for an owner's title insurance policy?

The distinction between legal title and equitable title is an important concept in the contract for sale of real estate.When the buyer obtains equitable title,the seller can no longer sell the property to someone else,even though the legal title has not officially passed on.In the contract for sale process,the creation of equitable title occurs when: