Massachusetts Real Estate License Practice Test

What documents are typically included in the seller's closing statements?

1. Closing disclosure and purchase agreement

2. Deed and mortgage covenants

3. CERTIFICATES and tax stamps

4. Deed and seller financing documents

The correct answer is: Deed and mortgage covenants

The inclusion of the deed and mortgage covenants in the seller's closing statements is essential in a real estate transaction. The deed serves as the legal document that transfers ownership of the property from the seller to the buyer, which is a fundamental part of the closing process. It officially documents the change of title, ensuring that all legal formalities are observed. Mortgage covenants are also critical as they outline the promises made by the borrower (typically the buyer) regarding their obligation to pay off the mortgage. These documents clarify the terms of the financing, such as payment schedules and interest rates, and can help protect the seller's interest in the transaction, particularly if there are any remaining financial obligations on the property being sold. The other documents mentioned, while relevant to real estate transactions, serve different functions. For instance, the closing disclosure and purchase agreement primarily pertain to the buyer's transaction documentation and do not directly concern the seller's obligations post-sale. Certificates and tax stamps relate more to the payment of property taxes and transfer taxes, which may not always be specific to the seller's financial statements. Documents like the deed and seller financing documents are typically more directly associated with the seller's closing disclosures.