Purchase Transaction Scenario:

Seller Brokerage has listed a Single Family home in South Gate with Mr. Seller. An offer was submitted on behalf of Mrs. Buyer by Buyer Brokerage and Mr. Seller accepted the terms. The open Escrow on this transaction is approaching the Buyer Loan document signing and funding stage. The Buyer has been presented the Preliminary Title Report and Buyer Estimated Closing Document for acceptance and signature. You have been asked a few questions regarding these documents which you will supply your answers within this document below:

Questions regarding the Preliminary Title Report:

1. What is the Property Legal Description described on "Exhibit A"? What method of Legal Description is being used (hint there are 3 types of Legal Description) Why do you think Exhibit A would also include the APN number of the property?

1. What are the 2 types of Title Policies being issued as described on Page 2 of 5 of the Preliminary Title Report?

1. On Page 2 of 5. What type of Estate is this Property held under? What does that Estate term mean? (hint. If you haven't covered this in Real Estate Principles or Practice, then google the term to gain understanding).

1. Also on Page 2 of 5, An Easement is indicated on this report. Who is the Easement holder of record and what is the easement described as? Why do you think learning about existing easements on the property would be important to a prospective Buyer?

1. Was there any portion of the Preliminary Title Report that you found most interesting?

Questions regarding the Buyer Closing Disclosure:

1. On what section of the Disclosure do you find and what are the amounts of the Loan Interest rate and monthly payment of the Loan (Principal and Interest)? According to the Disclosure, can the Interest rate or monthly payment increase after closing?

1. Does this Loan's Monthly Payment Estimate include Property Tax and Hazard Insurance within the Monthly Payment? How did you determine this?

1. How much is the Closing Costs charged to the Borrower? What generalized amounts did the disclosure state factored into this calculation?

1. How much is the "Cash to Close" that the Buyer must bring in to close their Escrow? What is the Buyer generally paying towards when they bring in their Cash to Close?

1. Why do you think it is important to allow the Buyer to review this disclosure before closing the Escrow?

1. Was there any portion of the Closing Disclosure that you found most interesting?