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Closing & Settlement Real Estate Transactions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What is the withholding rate for real estate sellers subject to FIRPTA?

Question 2 2. What money is capital gains tax paid on?

Question 3 3. Which of the following describes short term capital gains tax rates?

Question 4 4. What is the minimum real estate ownership period to qualify for long term capital gains tax rates?

Question 5 5. In real estate sales transactions, a ______ is never involved in conducting the closing process.

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Question 6 6. In real estate sales transactions, what services do title agents provide in addition to managing the closing?

Question 7 7. In real estate sales transactions, which of the following parties' signatures are not essential?

Question 8 8. In the real estate sale closing process, which form does the closing agent give to the buyer at least three business days before closing?

Question 9 9. Who is not entitled to a split of the real estate commission?

Question 10 10. How are real estate agents paid for their services?

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Question 11 11. Who writes the check that pays the real estate commission fee at closing?

Question 12 12. A property sells for $100,000. The brokers agree to split the 6% commission evenly. The seller's agent splits the commission with his broker 50/50. The buyer's agent is a broker. What amount the buyer's agent receive at closing?

Question 13 13. Which of the following fees are almost always paid by the seller?

Question 14 14. Where can a buyer see a list of the closing costs associated with their purchase?

Question 15 15. What is the general definition of closing costs?

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Question 16 16. Which of the following items are prorated and divided between the buyer and seller?

Question 17 17. What is one purpose of covenants:

Question 18 18. A document that helps to secure a lender's rights to real estate is called:

Question 19 19. A legal document that may be attached to another legal document adding additional terms and conditions is:

Question 20 20. Borrowers may be required to sign the following IRS form:

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Question 21 21. What does proration mean in real estate ?

Question 22 22. Anna's loan requires that she escrow seven months of her annual property tax bill of $2,439. How much money will be collected at the time of closing?

Question 23 23. Brian's closing date is June 15th. His loan amount is $80,000 and his interest rate is 5%. How much prepaid interest will he pay at the time of closing?

Question 24 24. Buyer's and seller's expenses in a real estate transaction are called

Question 25 25. If the purchase price is $300,000 and the buyer must have 10% down, how much is the down payment?

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Question 26 26. What happens to the down payment when a house is purchased?

Question 27 27. What is a down payment?

Question 28 28. What is the purchase price of a home?

Question 29 29. How much in capital gains can a married filing jointly couple exclude from taxation?

Question 30 30. Which of the following statements is always true of real estate sales transactions?

Closing & Settlement Real Estate Transactions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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