CRS Transaction Management and Closing Process 3

Question 1

What is a 'dry closing' in a real estate transaction?

Accepted Answer

A closing where all documents are signed but funds are not disbursed until a later date

Answer

In a dry closing, all documents are executed but funding and title transfer are delayed, often to allow final lender review or wire transfer processing.

Question 2

What does 'recording' the deed mean in the closing process?

Accepted Answer

Filing the deed with the county recorder's office to create public notice of the ownership transfer

Answer

Recording the deed with the appropriate government office establishes the public record of ownership transfer and protects the buyer against subsequent claims.

Question 3

Which of the following is typically a seller's closing cost in a US residential transaction?

Accepted Answer

Real estate agent commissions

Answer

Seller's closing costs typically include the agent commissions, title transfer fees, and any agreed-upon seller concessions, while the buyer bears most financing-related costs.

Question 4

When a lender requires a 'clear to close,' what does it mean?

Accepted Answer

The underwriter has approved all loan conditions and the loan is ready to fund

Answer

Clear to close (CTC) is the lender's final confirmation that all underwriting conditions are satisfied and the loan is approved for funding.

Question 5

What is the role of an attorney in states requiring attorney closings in the US?

Accepted Answer

An attorney must prepare or review closing documents and oversee the closing to ensure legal compliance

Answer

In attorney-closing states (such as Massachusetts, New York, and South Carolina), a licensed attorney must conduct or supervise the closing as required by state law.

CRS - Certified Residential Specialist Practice Test

CRS - Certified Residential Specialist Practice Test

CRS Transaction Management and Closing Process 3