Richard and Beth Kimball purchased a condominium for 280,000. The received a GFE with total closing costs of 8,200. When they arrived on the day of closing they were told that there closing costs would be 9,100 because of errors in their loan origination fees and computation of property taxes. Which of the following is a true statement?
A)RESPA does not apply to condominium purchases and closings.
B)The actual closing costs exceeded the variation permitted under the GFE under RESPA.
C)Although the actual closing costs may have exceeded the amount of variation permitted on the GFE under RESPA, the costs are permissible if spread across more than one cost category.
D)The actual closing costs are still within the variation range permitted under RESPA.
Question 2
Ellie Bernstein has a large oak tree on her property but the roots of the tree have grown into her neighbor's, Carl Ephron, property. Carl's septic system is being damaged by the roots. Carl:
A) Has no rights to stop the tree roots because of the rule of capture.
B) Can destroy the tree.
C) Is entitled to remedies for trespass.
D) Cannot seek remedies for trespass because Ellie did not enter his property physically.
Richard Spruce
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