Transaction Coordination Flashcards

Which document lists all final costs and credits for both parties at closing in most residential financed transactions?

Answer: Closing Disclosure or settlement statement

The Closing Disclosure (or ALTA settlement statement) itemizes final figures for the transaction.

A seller agent spots an error in the seller's credits on the draft settlement statement. What should they do?

Answer: Notify the closing agent promptly so it is corrected before signing

Errors should be raised with the closing agent before signing so final figures are accurate.

Property taxes are paid in arrears in the area and the closing occurs mid-year. How are they usually handled?

Answer: The seller gives the buyer a credit for taxes owed through the closing date

With taxes paid in arrears, the seller credits the buyer for the portion of the year the seller owned the home.

The buyer's lender requires a repair before funding. Who decides whether the seller will make that repair?

Answer: The seller, after advice from the listing agent

The lender can require repairs for the loan, but the seller decides whether to do them, subject to the contract.

In a short sale, what additional approval is typically needed before closing?

Answer: Approval from the seller's lender(s) to accept less than the amount owed

Short sales require lienholder approval because the proceeds won't fully pay the debt.

Why should the listing agent keep copies of all signed addenda and amendments in the transaction file?

Answer: To maintain a complete record for compliance, broker review, and dispute resolution

A complete file supports broker supervision, regulatory compliance, and defense in disputes.

After closing, which task most commonly remains for the seller's agent?

Answer: Confirming funding and recording, retrieving the lockbox, and closing out the file

Post-closing duties include confirming funding/recording, removing signage and lockbox, and finalizing records.