CHAPTER 14 REVIEW QUESTIONS

  1. The binder deposit held in escrow by a broker would be entered on the closing statement as a ___ to the ___.
    credit, buyer
  2. The ___ normally pays for the documentary stamp tax on the deed.
    seller
  3. Expenses on a closing statement are always entered as ___.
    debits
  4. Prorations are always entered on a closing statement as ___ entries.
    double
  5. Title insurance is ordinarily paid by the ___.
    buyer
  6. The state documentary stamp tax on the promissory note and intangible tax on a new mortgage is normally paid by the ___.
    buyer
  7. ___ is paid in advance; ___ and ___ are paid in arrears.
    rent, taxes, interest
  8. The amount due the seller at closing is calculated by subtracting the seller's total ___ from the seller's total ___.
    debits, credits
  9. The amount the buyer is required to bring to closing is calculated by subtracting the buyer's total ___ from the buyer's total ___.
    credits, debits
  10. The seller's ___ ___ and the buyer's ___ ___ are not usually equal due to the differences in their expenses.
    grand totals, grand totals
  11. The day of closing is always charged to the buyer for ___ ___.
    prepaid interest
  12. Entries on the broker's statement are made as either ___ or ___.
    receipts, disbursements
  13. Prorated rent is entered on the closing statement as a ___ to the seller and a ___ to the buyer.
    debit, credit
  14. No taxes are payable on either the note or mortgage when title is taken ___ ___ the mortgage.
    subject to
Author
mccullochhelen
ID
331990
Card Set
CHAPTER 14 REVIEW QUESTIONS
Description
REVIEW QUESTIONS
Updated