Escrow & TitleIntermediateDelaware Exam

What is a 'RESPA' disclosure, and when is it required in Delaware?

AA property condition disclosure required for all listings
BA federal closing cost disclosure required for most residential mortgage loansCorrect
CA state transfer tax disclosure required at settlement
DA disclosure about neighborhood conditions required before contract signing

Why A federal closing cost disclosure required for most residential mortgage loans Is Correct

Answer B: A federal closing cost disclosure required for most residential mortgage loans

RESPA (Real Estate Settlement Procedures Act) requires lenders to provide borrowers with a Loan Estimate and Closing Disclosure for most residential mortgage loans, detailing all settlement costs.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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