Check Your Understanding Answers
- Although it’s not required, why is it a good idea for agents to attend escrow closings?
Not only may issues arise that the agent can quickly resolve without delaying closing, it’s an exciting time for clients to sign final paperwork and could lead to repeat business. It’s essentially a good business practice.
- What are closing costs?
Fees and expenses to settle the transaction.
- When does an escrow close?
An escrow only closes when all deeds associated with the transaction have been recorded.
- What is the Foreign Investment in Real Property Tax Act?
The Foreign Investment in Real Property Tax Act prevents foreign investors from avoiding paying taxes on the sale of real property.
If the seller is not a U.S. citizen or green card holder, the escrow agent must withhold 15% of the net proceeds of the sale and send it to the IRS within ten days of closing.
