by Gloriane Noonan
Navigating the complexities of real estate closings can be challenging, but understanding the key elements is crucial for a smooth transaction. This quiz will test your knowledge on various aspects of the closing process, ensuring you’re well-prepared for your next real estate deal. Whether you’re a seasoned professional or a newcomer to the field, this quiz offers valuable insights and learning opportunities. Good luck, and let’s see how much you know about real estate closings!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Real Estate Closing Quiz Questions Overview
1. What is the purpose of a title search in a real estate transaction?
To determine the market value of the property
To ensure the property has no liens or legal claims
To negotiate the sale price
To inspect the physical condition of the property
2. Who typically pays for the title insurance in a real estate transaction?
The buyer
The seller
The lender
The real estate agent
3. What is an escrow account used for in real estate?
To hold funds for property repairs
To manage the buyer’s mortgage payments
To hold funds until all conditions of the sale are met
To pay for the real estate agent’s commission
4. What document is signed at closing to transfer ownership of the property?
The purchase agreement
The deed
The mortgage note
The inspection report
5. Which party typically orders the property appraisal?
The buyer
The seller
The lender
The real estate agent
6. What is a closing disclosure?
A document detailing the buyer’s credit score
A summary of the property’s inspection results
A form listing all final loan terms and closing costs
A contract between the buyer and the real estate agent
7. What is the primary role of a closing agent?
To negotiate the sale price
To inspect the property
To manage the closing paperwork and funds
To provide legal advice to the buyer
8. What is a contingency in a real estate contract?
A required home improvement
A condition that must be met for the sale to proceed
A type of mortgage loan
A fee paid to the real estate agent
9. What is earnest money?
A fee paid to the lender
A deposit made by the buyer to show serious intent
A payment for the home inspection
A commission paid to the real estate agent
10. What is the purpose of a home inspection?
To appraise the property’s value
To identify any potential issues with the property
To negotiate the sale price
To finalize the mortgage terms
11. What is a deed of trust?
A document transferring property ownership
A type of insurance policy
A legal agreement involving the borrower, lender, and trustee
A contract between the buyer and seller
12. What is prorated at closing?
The sale price of the property
The real estate agent’s commission
Property taxes and homeowner’s association fees
The cost of the home inspection
13. What is a closing statement?
A document outlining the terms of the mortgage
A summary of the property’s inspection results
A detailed account of all costs and credits in the transaction
A contract between the buyer and the real estate agent
14. What is the primary purpose of a final walk-through?
To negotiate the sale price
To ensure the property is in the agreed-upon condition
To finalize the mortgage terms
To appraise the property’s value
15. What is a mortgage note?
A document transferring property ownership
A summary of the property’s inspection results
A legal document outlining the terms of the loan
A contract between the buyer and the real estate agent
16. What is the role of a notary public in a real estate closing?
To appraise the property’s value
To witness and authenticate the signing of documents
To negotiate the sale price
To inspect the property
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
