Before you read
Test yourself first: 5 questions
Question 1 of 5
If the seller discovers a new material defect WHILE the home is in escrow, they must:
Answer: A. The duty to disclose is ongoing — newly discovered material defects must be disclosed before closing.
Question 2 of 5
A title company offers a broker $100 for every buyer referred for closing services. The broker should:
Answer: C. RESPA Section 8 bans kickbacks for referrals of settlement-service business on federally related loans — disclosure does NOT cure it. Only payments for services actually rendered at market value are permitted.
Question 3 of 5
RESPA primarily:
Answer: B. The Real Estate Settlement Procedures Act requires clear disclosure of closing/settlement costs and bans kickbacks/referral fees for settlement services.
Question 4 of 5
The Consumer Financial Protection Bureau (CFPB) combined the disclosures formerly required separately under TILA and RESPA into which integrated forms?
Answer: B. The TRID rule (TILA-RESPA Integrated Disclosure) replaced the older Good Faith Estimate and HUD-1/Truth-in-Lending forms with the Loan Estimate and the Closing Disclosure.
Question 5 of 5
Once a buyer and seller sign the purchase contract, the buyer holds:
Answer: A. Signing gives the buyer equitable title; legal title transfers by deed at closing.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The DEED must be delivered and ACCEPTED during the grantor's lifetime to convey title; recording is for protection against third parties, not validity. RESPA governs the settlement process on federally related loans: no kickbacks for referrals of settlement services, and the borrower may request the Closing Disclosure figures in advance. IRS Form 1099-S reports the sale; FIRPTA may require withholding when the seller is a foreign person.
Closing Roles: RESPA, Escrow & the Deed Hand-Off: FAQs
Is Closing Roles: RESPA, Escrow & the Deed Hand-Off on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
