Escrow & Title
Which of the following items on a closing disclosure is typically a prepaid item (not a recurring cost)?
AMonthly mortgage payment
BHomeowner's insurance premium for the first year and prepaid interest✓ Correct
CAnnual property tax payment
DMonthly HOA dues
Explanation
Prepaid items at closing include the first year's homeowner's insurance premium and any prepaid interest (from the closing date to the end of the month). Property taxes and HOA dues are typically set up in escrow as recurring items.
Related Arkansas Escrow & Title Questions
- In Arkansas real estate closings, who typically disburses closing funds and records the deed?
- To be recorded in Arkansas, a deed must be:
- In an escrow closing, the escrow agent's primary duty is to:
- A lis pendens is:
- A judgment lien is created when:
- A chain of title refers to:
- A 'cloud on title' is:
- Title insurance protects the policyholder from:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →