Before you read
Test yourself first: 5 questions
Question 1 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 2 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 3 of 5
Once HUD receives a fair housing complaint, it must promptly notify the respondent and, before any hearing, attempt to resolve the dispute through:
Answer: B. HUD is required to engage the parties in conciliation, a voluntary settlement process, to attempt to resolve the complaint before proceeding to a hearing.
Question 4 of 5
In a tax proration, an item paid by the seller in advance but covering a period after closing is handled how on the settlement statement?
Answer: A. Prepaid expenses benefiting the buyer are credited to the seller (who paid) and debited to the buyer (who reimburses).
Question 5 of 5
Accepting an undisclosed kickback from a service provider the agent referred is:
Answer: A. Undisclosed referral kickbacks breach the duties of disclosure/loyalty and may violate RESPA for settlement services.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Typical steps: title search & title insurance commitment; final loan approval and the Closing Disclosure (given ≥3 business days before consummation); a final walk-through; signing the deed, note, and mortgage/deed of trust; paying funds (down payment + closing costs); prorating taxes/HOA dues between buyer and seller; then recording the deed and disbursing funds. Costs are split per the contract — buyers commonly pay loan/title fees, sellers commonly pay the commission.
The Closing (Settlement) Process: FAQs
Is The Closing (Settlement) Process 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.
