5)A sale is closing on August 31. Real estate taxes, calculated on a calendar year basis, have not been paid for the current year. The tax is estimated to be $1,800. What amount of proration will be credited to the buyer?

a. $1,100

b. $1,200

c. $1,485

d. $1,500

8) A man owns a fully occupied rental apartment building. If he sells the apartment building to a woman, how will the tenants security deposits be reflected on the closing statement?

a. Credit man, debit woman

b. Debit both man and woman

c. Credit woman, debit man

d. None of these

9) A buyer is purchasing a house from a seller. The single-family home is subject to an existing 30-year mortgage of $286,500 at a fixed rate of 6%. Under the terms of the sales contract, the buyer will assume the sellers mortgage at 6% interest and pay the federally insured lenders assumption fee of $100. In addition, the seller will assist the buyer by taking back a purchase-money mortgage in the amount of $25,000 at 8% interest. Is this transaction subject to RESPA?

a. No, because this transaction involves a purchase money mortgage taken back by the seller.

b. No, because the terms of the assumed loan were not changed.

c. Yes, because the seller is taking back a purchase money mortgage at an interest rate higher than that charged for the assumed loan.

d. Yes, because the lenders fee on the assumed loan is more than $50.

10) Since 2002, a real estate broker has had an understanding with two of the five mortgage lenders in town. She recommends only those two lenders to her clients and does not tell clients about any other lenders. In return, the recommended lenders pay for the vacations the broker offers her salespeople as rewards for high performance. Based on these facts, which of these statements is TRUE?

a. The broker is not doing anything illegal.

b. Because this arrangement has been in existence for more than 10 years, it is exempt from RESPA.

c. This is a permissible controlled business arrangement under RESPA because the broker is not paid a fee for the recommendations.

d. The brokers arrangement with the lenders is an illegal kickback under RESPA.

15) How is earnest money treated if the buyer does not default and shows up for closing?

a. Credit seller

b. Debit buyer

c. Credit buyer

d. Debit seller