Escrow & Title
In Louisiana, the closing agent's responsibility for handling funds during a real estate closing is governed by:
ARESPA (Real Estate Settlement Procedures Act) at the federal level
BOnly Louisiana state banking law
CRESPA requirements and Louisiana licensing laws✓ Correct
DThe Louisiana Tax Commission
Explanation
Real estate closings in Louisiana are subject to both RESPA (which governs federally related mortgage transactions) and Louisiana licensing and trust account laws governing the handling of escrow funds.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
State-Specific Concepts
Trust Account Rules
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