Transaction Coordination Flashcards

Under the TRID rule, how many business days before consummation must the buyer receive the Closing Disclosure?

Answer: Three

TRID requires the Closing Disclosure be received at least three business days before consummation.

A buyer's lender changes the loan product from fixed to adjustable after the Closing Disclosure is issued. What happens to the closing timeline?

Answer: A new three-business-day waiting period is triggered

A loan product change is one of the triggers that requires a new three-business-day waiting period under TRID.

The seller's listing agent learns the inspection contingency deadline falls on Sunday. What is the best first step?

Answer: Check how the purchase contract defines days and deadlines

The contract's own definition of days and deadline rules governs, so the agent must read it first.

Which party typically orders the title search and issues the title commitment?

Answer: The title company or closing attorney

The title company or closing attorney searches public records and issues the title commitment.

A seller agent's tracking sheet shows the appraisal came in $15,000 below price. Which contingency most directly gives the buyer options?

Answer: Appraisal contingency

An appraisal contingency lets the buyer renegotiate or exit when value falls short of the contract price.

Why should a seller representative confirm the seller's mortgage payoff amount early in the transaction?

Answer: To identify any shortfall that could prevent closing

An early payoff check reveals whether sale proceeds will cover liens, avoiding last-minute surprises.

An email arrives claiming to be from the title company with new wiring instructions for the seller's proceeds. What should the agent advise?

Answer: Verify by calling the title company at a known, independently obtained number

Verifying through an independently confirmed phone number is the standard defense against wire fraud.