Escrow & Title
The process of 'closing' a real estate transaction in Rhode Island involves:
AOnly signing the purchase contract
BThe final settlement where ownership is transferred, funds are disbursed, and documents are recorded✓ Correct
CThe home inspection and appraisal review
DOnly the transfer of the mortgage from lender to buyer
Explanation
Closing (settlement) is the final step in a real estate transaction where the buyer and seller sign all necessary documents, the buyer pays the purchase price, funds are disbursed, and the deed is recorded to officially transfer ownership.
People Also Study
Related Rhode Island Questions
- A Rhode Island home sells for $425,000. The seller's attorney fee is $1,200, the broker's commission is 5%, and the RI Realty Transfer Tax is $2.30 per $500. What are the seller's total closing costs for these three items?Real Estate Math
- A deed of release (or satisfaction of mortgage) in Rhode Island is recorded when:Finance
- A Rhode Island seller pays the realty transfer tax of $2.30 per $500 on a $550,000 sale. How much is the tax?Real Estate Math
- In Rhode Island, who is responsible for recording the deed after closing?Escrow & Title
- A Rhode Island home sold for $350,000. The seller pays 5.5% commission and $2,500 in closing costs. What are the seller's total costs?Real Estate Math
- A Rhode Island landlord wants to evict a tenant for non-payment of rent. What is the first step in the eviction process?Property Management
- An appraiser in Rhode Island determines that a property's value is $375,000. The purchase price was $395,000. What does this mean for an FHA loan?Property Valuation
- What is a 'HUD-1 Settlement Statement' (or its modern equivalent, the Closing Disclosure) used for in a Rhode Island closing?Escrow & Title
Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →