D Prepaid interest (also known as interim interest) is listed as a debit for the buyer on the settlement statement. Where is prepaid interest noted on the settlement statement?ĭ. A An escrow agent may not charge a separate fee for the preparation of the uniform settlement statement. Under the Real Estate Settlement Procedures Act, how much can an escrow agent charge for preparation of the uniform settlement statement?ĭ. D Because the seller has already paid for the insurance, she would be credited for the prorated cost of the unused portion of the insurance policy. A refund for prepaid fire insurance would be listed on the settlement statement as a:ĭ. C If a buyer assumes a seller's loan, the assumed balance is a credit for the buyer and a debit for the seller. As a debit for the buyer and a credit for the seller 14. As a credit for the buyer and a debit for the sellerĭ. When the buyer is assuming the seller's existing loan, how would the loan balance appear on the settlement statement?Ĭ. C On a settlement statement, the sum of the buyer's debits must equal the sum of his credits. The balance due to the seller is listed in the seller's credit column 13. The buyer's total debits must equal the buyer's total creditsĭ. The buyer's total debits and credits must match the seller's total debits and creditsĬ. The sum of one party's debits must equal the sum of the other party's creditsī. Which of the following is true about a settlement statement?Ī. C RESPA doesn't apply to loans used to purchase 25 acres or more. loan used to finance 50 acres for residential developmentĭ. senior mortgage loan made by a mortgage banker to finance a condominium unitĬ. purchase money first loan made by a bankī. RESPA applies to all of the following except a:Ī. C For a land contract, the amount of credit extended would be listed as a debit for the seller and as a credit for the buyer. a debit for the buyer and a credit for the seller 11. a credit for the buyer and a debit for the sellerĭ. On the settlement statement, the amount of credit extended would be:Ĭ.
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