Ch 16: Closing & Settlement Real Estate Transactions

About This Chapter

Use the fun lessons in this chapter to deepen your knowledge of closing and settlement real estate transactions. The lessons along with mini quizzes ensure you have the understanding needed to excel on a future test.

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.

7 Lessons in Chapter 16: Closing & Settlement Real Estate Transactions
Test your knowledge with a 30-question chapter practice test
Real Estate Closing & Settlement Procedures & Parties

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.

Real Estate Closing Documents: Overview & Description

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.

Down Payment & Purchase Price: Definitions & Calculations

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.

Closing Costs for the Seller & Buyer

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.

Closing Costs: Calculations & Practice

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.

Tax Consequences & Deductions in Real Estate Transactions

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.

How to Calculate Real Estate Commission

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support