Transaction Management & Coordination Flashcards

Under RESPA Section 8, which practice is prohibited?

Answer: Accepting a kickback for referring settlement service business

RESPA Section 8 prohibits kickbacks and unearned fees for referrals of settlement service business.

Which federal disclosure must accompany the sale of most housing built before 1978?

Answer: Lead-based paint disclosure

Federal law requires sellers of pre-1978 housing to disclose known lead-based paint hazards and provide the EPA pamphlet.

Under federal lead-based paint rules, how long are buyers generally given to conduct a lead risk assessment unless waived?

Answer: 10 days

Buyers receive a 10-day opportunity for a lead-based paint inspection or risk assessment unless they waive it or agree to a different period.

A TC is managing 30 active files. What is the most effective way to avoid missing deadlines?

Answer: Use a centralized calendar or transaction management system with automated alerts

A centralized system with automated reminders makes sure every contingency and milestone is tracked across files.

The lender reports the buyer's loan has received 'clear to close.' What does this mean?

Answer: Underwriting conditions are satisfied and the lender is ready to prepare closing documents

Clear to close means underwriting has signed off and the lender can issue final documents and schedule closing.

What is the difference between 'closing' and 'funding' in many transactions?

Answer: Closing is document signing; funding is when the lender releases the loan money

Documents may be signed at closing, but the deal isn't complete until funds are disbursed and the deed is recorded, which may be later in 'escrow' or 'dry funding' states.

After closing, which task is typically part of the TC's file-close process?

Answer: Making sure the brokerage file holds all fully executed documents and the final settlement statement

Brokerages must keep complete transaction files, so the TC confirms all executed documents and the final statement are filed for compliance.