Why Did The Implementation Of Trid Impact Closing Dates

Question: What's the approximate length of the foreclosure process in Illinois if the borrower doesn't contest the foreclosure, seek delays, request hearings, or file for bankruptcy?90 days410 days365 days215 days

Answer: 215 daysThe approximate length of the foreclosure process in Illinois if the borrower doesn't contest the foreclosure, seek delays, request hearings, or file for bankruptcy is 215 days.

Question: Which of the following is an example of self-dealing?- A licensee lists his property with another firm and sells his home without informing buyers of his license status.- A licensee purchases a listing through his cousin but does not inform the seller.- A licensee purchases a property for personal profit.- A licensee sells a property for personal profit.

Answer: A licensee purchases a listing through his cousin but does not inform the seller.Making a profit is not illegal. Illegal self-dealing is having an undisclosed personal interest in a transaction.

Question: What should you do to avoid fair housing violations?- Have your broker review your qualification process.- Avoid advertising to avoid the possible perception of discrimination.- Right from the start, describe the ideal buyer for specific properties.- Test all your listings and agents to ensure fair housing compliance.

Answer: Have your broker review your qualification process.Have your broker review your qualification process. Testing every property is unnecessary, and advertising should simply describe the property, not the buyer.

Question: Why did the implementation of TRID impact closing dates?- The complexity of the forms makes them more time-consuming to complete.- Lenders must give buyers five working days to review the closing disclosure.- Certain financing changes may trigger a new three-day waiting period.- Once the CD is issued, the loan underwriter must perform a final review and approval.

Answer: Certain financing changes may trigger a new three-day waiting period.Increases in the annual percentage rate, addition of a prepayment penalty, or changes to the basic loan product require that the lender issue a new CD, necessitating a new three-day waiting period.

Question: If Emily has received pre-approval for her mortgage loan, it means which of the following steps has been completed?- A conversation with the lender in which Emily discloses her income and debt- The loan application, and lender verification of data- The inspection, showing that no major repairs are required- The appraisal, showing that the home is valued appropriately

Answer: The loan application, and lender verification of dataPre-approval means that Emily has completed the loan application, and the lender has verified the data Emily provided and has pre-approved the loan based on current information.

Question: When should a seller's desire for a specific replacement property factor into the pricing strategy for the seller's current home?- Never- In a hot market that's appreciating at more than 15% per year- When the replacement property is comparable to the seller's current property- When the desire for the other property outweighs the seller's need to get top market dollar for the current home

Answer: When the desire for the other property outweighs the seller's need to get top market dollar for the current homeWhen the desire for the other property is strong enough, a seller may be willing to price the current property lower for a quicker sale.

Question: William is a real estate licensee who's preparing a sale agreement that will include an unusual circumstance. What's the best course of action?- Use existing forms but modify the language to address the unusual circumstance.- Use an existing form and write an addendum that covers the unusual circumstance.- Create his own forms.- Consult an attorney.

Answer: Consult an attorney.It's possible that William could still use an existing form, but it won't cover the unusual circumstance. William should not write an addendum that covers it. His best bet is to consult an attorney.

Question: From a real estate licensee's standpoint, what's the purpose of qualifying buyers before working with them?- To determine their financial wherewithal- To pre-qualify them for a loan- To learn if you have things in common with them- To determine their readiness to purchase and make sure they're not already working with another agent

Answer: To determine their readiness to purchase and make sure they're not already working with another agentTo determine their readiness to purchase and make sure they're not already working with another agentThe purpose of qualifying buyers is to determine their readiness to work with you, and their readiness to purchase. It's also important to establish that they're not already exclusively represented by another agent.

Question: Ahmed is selling his three-bedroom home to Ruth. Under the terms of their agreement, he must replace the roof, which was damaged in a severe thunderstorm. At the walk-through just before closing, Ruth learns he hasn't yet done this. She loves the house, though, and isn't interested in "making him pay"—she just wants the roof replaced. In this case, which of the following remedies should Ruth pursue?- She should sue him for specific performance.- She should unilaterally rescind the contract.- She should accept partial performance.- She should accept liquidated damages.

Answer: She should sue him for specific performance.A suit for specific performance requires the parties to make good on the promises they made. In this case, Ruth can sue Ahmed to replace the roof, as he promised in the contract.

Question: Bonnie always schedules an in-person meeting with prospective buyers before she begins sending them data on properties. Why might this be?- She needs their written permission to send them data.- She needs to have them sign an agency agreement before she can work with them.- She needs to define the buyer's needs and wants.- She needs to see if she likes them enough to work with them.

Answer: She needs to define the buyer's needs and wants.One purpose of this meeting is to help her define the buyers' needs, wants, and readiness to purchase. She also demonstrates her professionalism to her potential clients and builds rapport with them during the meeting.

Question: What's the primary hurdle between loan pre-approval and the loan commitment?- Clearing clouds on the title- The appraisal- Checking credit scores- Loan documentation verification

Answer: The appraisalReceipt of an appraisal validating the loan amount is the biggest hurdle between pre-approval and the loan commitment.

Question: Which of the following statements is true about dual agency disclosure and confirmation in Illinois?- Dual agency is illegal.- Dual agency disclosure and confirmation must be in writing.- Illinois license law requires clients to consent to dual agency representation.- Dual agency applies to sales transactions only, not rentals.

Answer: Dual agency disclosure and confirmation must be in writing.In order to practice dual agency legally in Illinois, all transaction parties must give their informed written consent and confirmation.

Question: Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the features, even the spot in the attic where a previous owner's ghost likes to come back and visit. Jason asks Rebecca if buyers should be told about this. Which response is best?- "All states require sellers to disclose any undesirable feature of a house, which includes ghosts."- "The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws."- "You can't mention this, because it would be a fair housing violation."- "We can tell prospective buyers that the property comes with a roommate."

Answer: "The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws."Some states require disclosures related to stigmatized properties, so make sure you know whether your state requires such disclosures.

Question: What's a consent foreclosure in Illinois?- A scheme to defraud the lender- A way to shorten the foreclosure process and automatically give the lender a deficiency judgment- A way to shorten the foreclosure process and prevent a deficiency judgment- A way to delay the foreclosure process and prevent a deficiency judgment

Answer: A way to shorten the foreclosure process and prevent a deficiency judgmentIf legal action has already begun, the property owner can request a consent foreclosure, which shortens the foreclosure process and may prevent a deficiency judgment, although the property owner may be liable for court costs and attorney fees.

Question: Which section of the property management agreement requires owners to confirm that they are, in fact, the legal owner of the property?- Owner's scope of authority- Manager's scope of authority- Owner's covenants- Legal owner disclosure

Answer: Owner's covenantsThe owner attests to being the legal owner of the property in the owner's covenants section. A covenant is a warranty, assurance, or promise.

Question: The seller net sheet is a(n) ______ of closing costs.- Estimate- Final accounting- Legally binding estimate- Bank-prepared estimate

Answer: EstimateThe seller net sheet is an estimate, prepared by the licensee, of the sellers' expenses and credits on the day of closing. It's not legally binding, final, or prepared by a bank.

Question: Jennings has received a Closing Disclosure from his lender. What's the purpose of this form?- To disclose the distribution of commissions that will occur at closing- To estimate the seller's net proceeds- To detail all costs Jennings will owe at closing- To estimate closing costs

Answer: To detail all costs Jennings will owe at closingThe Closing Disclosure, provided at least three days before closing, details the buyer's closing costs, as well as other loan terms, such as the projected monthly payment.

Question: In real estate marketing terms, what's a farm area?- An agricultural district- Vacant land- Your sphere of influence- A targeted market

Answer: A targeted marketConsistent marketing to a targeted market is called farming, and it's one of the most lucrative ways to build your business.

Question: Your client Glenn wants to sell his home in the Capitol Heights neighborhood. Built in 2000, it has an updated kitchen and a three-car garage, is 2,350 square feet, and sits on a 6,000-square-foot lot. Which of the following properties would you consider potential comparables to Glenn's home? Unless stated otherwise, assume all features match the Glenn's property.- Property A is a condo in Capitol Heights that sold last month.- Property B is a Capitol Heights home that sold two months ago in foreclosure.- Property C is a 2,500-square-foot home in a neighborhood adjacent to Capitol Heights that sold three months ago.- Property D is a 2,300-square-foot home located in Capitol Heights, with a two-car garage that sold two years ago.

Answer: Property C is a 2,500-square-foot home in a neighborhood adjacent to Capitol Heights that sold three months ago.Condition of sale, proximity, age, and recent sales are important considerations. Only Property C is a good match.

Question: Jack keeps in mind current buyer tastes when touring a home during a pre-listing appointment. This helps him to ______.- Block out any dated features- Make a note of any recommended updates to discuss later with the sellers- Determine whether he wants to list a home that's too dated- Compile a list of current buyers who would like the home

Answer: Make a note of any recommended updates to discuss later with the sellersIt's best to make a note of any upgrades or updates needed during the pre-listing appointment. Your knowledge of current buyer tastes will come in handy when offering suggestions to the sellers.