About This Chapter
Closing & Settlement Real Estate Transactions - Chapter Summary
If you need help grasping the basics of closing and settlement real estate transactions, you've reached the right place! This entertaining chapter is filled with instructor-developed lessons that cover closing documents and costs, real estate commission, settlement procedures and more. After exploring this chapter, you will be ready to do the following:
- Discuss the procedures and parties associated with real estate closings and settlements
- Provide a description of real estate closing documents
- Define a down payment and purchase price
- Describe closing costs for the buyer and seller
- Calculate closing costs and real estate commission
- Explain real estate transaction tax consequences and deductions
Feel free to navigate the lessons in the order that aligns with your study needs, and be sure to review them as many times as needed to feel confident in your understanding. If you hit a snag during your studies, don't hesitate to clarify concepts you don't fully grasp by sending questions to our subject-matter experts. Before, during, or after reviewing each lesson, take the accompanying quiz to gauge your comprehension. Before the day of your test, take our practice exam to assess your knowledge of all lessons in this chapter.
1. Real Estate Closing & Settlement Procedures & Parties
The closing or settlement procedure concludes a real estate sale. In this lesson, we will identify who is involved in closing and give a general overview of the process.
2. Real Estate Closing Documents: Overview & Description
After someone makes an offer on a home, how is the sale finalized? The sale of real estate is finalized when closing documents are signed. Learn about the different types of documents used to complete the sale of real estate.
3. Down Payment & Purchase Price: Definitions & Calculations
Buying a house is exciting, but also overwhelming. It takes preparation to ensure you will have enough for the down payment and understand what the purchase price means.
4. Closing Costs for the Seller & Buyer
In this lesson we will define closing costs and examine the typical costs paid by buyers and sellers as part of a real estate transaction. We will also discuss how costs can be divided or prorated at closing.
5. Closing Costs: Calculations & Practice
There is an old wise saying: 'There are two sides to every story'. In real estate, the transaction is the story; one side belongs to the buyer, the other side to the seller. In this lesson, you will learn how both sides complete the story of a transaction.
6. Tax Consequences & Deductions in Real Estate Transactions
Let's look at the tax consequences of real estate transactions. A real estate sell may have deductible expenses, taxable gains, and possibly an exception for those gains. We will also briefly cover tax rules for foreign investors.
7. How to Calculate Real Estate Commission
In this lesson, we will define real estate commissions. We will then explain how the commission is divided among the real estate agents and their brokers at the conclusion of a real estate transaction.
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Other chapters within the Indiana Real Estate Broker Exam Study Guide course
- Introduction to Real Property
- Public & Private Land-Use Control
- Estate Ownership, Rights & Interest
- Deeds & Property Transfers
- Property Titles
- Property Value & Appraisal
- Introduction to Real Estate Contracts
- Real Estate Agencies & Agency Relationships
- Listing Agreements & Property Management
- Fair Housing & Consumer Protection
- Risk Management in Real Estate
- Property Disclosures
- Introduction to Real Estate Financing
- Real Estate Lender Requirements
- Federal Real Estate Financing Regulations
- Real Estate Investments
- Indiana Real Estate Commission & Licensing
- Indiana Real Estate Law
- Real Estate Business Procedures
- Indiana Real Estate Broker Exam Study Guide Flashcards