Buyer Representation and Counseling Flashcards

Which buyer counseling approach best reduces the risk of buyer's remorse?

Answer: Setting clear expectations, prioritizing needs vs. wants, and maintaining open communication

Managing expectations throughout the process and aligning the search with true priorities significantly reduces post-purchase regret.

What is the primary advantage of a VA loan for an eligible veteran purchasing a home?

Answer: It allows eligible veterans to purchase with no down payment and no private mortgage insurance

VA loans offer a significant benefit by eliminating down payment requirements and PMI for eligible veterans and service members.

When reviewing a title commitment with a buyer, what does a Schedule B-II exception mean?

Answer: These are specific items not covered by the title insurance policy

Schedule B-II lists specific exceptions—like easements or restrictions—that the title policy will not insure against, requiring careful buyer review.

A buyer's CRS agent discovers a material defect the seller did not disclose. What is the agent's obligation?

Answer: Disclose the material defect to the buyer promptly

Agents have a duty to disclose known material facts that could affect the buyer's decision, regardless of whether the seller disclosed them.

What is the purpose of a final walkthrough before closing?

Answer: To verify the property's condition matches the contract terms and agreed-upon repairs were completed

The final walkthrough confirms that the property is in the agreed condition, any required repairs are done, and no new damage has occurred.

Which document at closing outlines all final loan terms and closing costs that the buyer must review before signing?

Answer: The Closing Disclosure

The Closing Disclosure, provided at least three business days before closing under TRID, details all final loan terms, fees, and cash to close.