NRES Nevada Real Estate Salesperson Exam - Set 5 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: A federal law requires lenders to make certain disclosures about the mortgage and settlement process on most first-lien residential loans, and it prohibits practices, such as kickbacks and referral fees, that needlessly increase the cost of settlement services. Which federal law is this?
Question 42: Under the federal settlement procedures law, paying or receiving a fee or anything of value simply for steering a buyer to a particular title company, lender, or other settlement provider, when no real service is performed, is forbidden. What is this forbidden payment called?
Question 43: Within three business days after a borrower submits a mortgage application, the lender must deliver a standardized form that shows the estimated loan terms and settlement costs, so the borrower can compare competing offers before proceeding. What is this early standardized form called?
Question 44: For a federally related loan, an itemized statement lists every charge paid by the buyer and the seller at settlement, and the borrower has the right to review it shortly before closing to confirm the figures. What is this final settlement statement called?
Question 45: On a closing statement, each dollar figure is entered as one of two opposite kinds of entry: a charge that a party owes and must pay at closing, or an amount credited in that party's favor. What is the entry for an amount a party owes called?
Question 46: At closing, continuing costs such as property taxes, rent, and mortgage interest are split fairly between buyer and seller according to the portion of the period each one actually owns the property. What is this fair splitting of shared costs called?
Question 47: At closing, an expense the seller has already incurred but not yet paid, such as taxes for time the seller occupied the property that the buyer will later pay, is charged to the seller and credited to the buyer. What is such an owed item called?
Question 48: At closing, an expense the seller has paid in advance but not fully used up, such as heating oil still left in the tank, is credited back to the seller and charged to the buyer who inherits it. What is such a paid-ahead item called?
Question 49: On many licensing examinations and in many states, prorations of taxes and interest are figured using a year made up of twelve equal months of thirty days each, rather than the actual number of calendar days. What is this assumed year called?
Question 50: In many states, the buyer and seller never meet at closing; instead a disinterested third party holds their deposits and documents, follows written instructions, and disburses the funds only after every condition of the sale has been met. What is this neutral third party called?
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