CHCP Post-Closing Procedures & Recording 2

Question 1

What happens if a deed is recorded but contains an error in the legal description?

Accepted Answer

A corrective deed must be executed and recorded

Answer

A corrective deed (or reformation deed) must be signed by the grantor and re-recorded to cure errors in the original recorded instrument.

Question 2

Which document releases a seller's mortgage lien from the public record after payoff?

Accepted Answer

Satisfaction of mortgage (or release deed)

Answer

A satisfaction of mortgage (also called a release or discharge) is recorded by the lender to extinguish the lien once the loan is paid in full.

Question 3

In a post-closing audit, the closing agent discovers a $200 excess was collected from the buyer. The correct action is to:

Accepted Answer

Refund the buyer promptly

Answer

RESPA and professional ethics require that any overage collected from a party be refunded to that party without delay.

Question 4

The 'gap period' in real estate closings refers to the time between:

Accepted Answer

Final title search and recording of the deed

Answer

The gap period is the window between the last title search date and the actual recording of the deed, during which undetected liens could arise.

Question 5

When must a lender provide the homebuyer with the final Closing Disclosure under TRID rules?

Accepted Answer

At least 3 business days before consummation

Answer

TRID requires the Closing Disclosure be delivered at least three business days before loan consummation, giving borrowers time to review final terms.

(CHCP) Certified Home Closing Professional Practice Test