Chapter 13

Question 1

5 types of closing costs

Answer 1

Title search fee
Title insurance
Attorney’s fee
Appraisal fee
Credit report

Question 2

5 things to consider when purchasing home

Answer 2

Location
Price
Job opportunities
Neighborhood
Safety

Question 3

2 quality of life advantages of owning a home

Answer 3

Privacy
Personal freedom

Question 4

2 sources for a down payment

Answer 4

Savings or relatives/parents

Question 5

2 tax deductions are:

Answer 5

Property tax and interest on mortgage

Question 6

2 benefits of real estate agent

Answer 6

Knows market
Helps close sale

Question 7

Renting or owning real estate is a type of tax shelter

Answer 7

False

Question 8

Most common source for down payment money is a bank

Answer 8

False

Question 9

A lien is a right or privilege one person has to use the land of another person

Answer 9

False

Question 10

Most lenders require that the borrower buy title insurance

Answer 10

True

Question 11

Home ownership offers:

Answer 11

Financial advantage
Quality of life advantages
Tax savings

Question 12

Cost of home ownership is lowered through:

Answer 12

Tax deductions

Question 13

Who conducts a title search and issues a report?

Answer 13

Title insurance company

Question 14

Real estate agents use comps to get a general idea of a property’s ____ value, which helps sellers establish a list price for their home

Answer 14

Estimated

Question 15

Appraised value

Answer 15

Comparing the value of your home with homes in the same area

Question 16

Assessed value

Answer 16

Home value set annually by city/county to compute property tax

Question 17

Estimated value

Answer 17

Used to help sellers establish a list price by comparing recently sold homes in area

Question 18

Escrow account

Answer 18

A find where money is held to pay amounts that will be due that year

Question 19

Origination fee

Answer 19

Amount charged to process loan papers

Question 20

Closing costs

Answer 20

Settlement costs to transfer ownership from seller to buyer

Question 21

Property insurance

Answer 21

Must have to cover building and contents

Question 22

CC&Rs

Answer 22

Rules to maintain property values and protect property owners

Question 23

Zoning laws

Answer 23

Building permits for modifying property

Question 24

Contingencies

Answer 24

Conditions that limit buyer’s liability

Question 25

Inspection report

Answer 25

Details of existing conditions of the house

Question 26

Escrow closer

Answer 26

Person who gathers and verifies info, prepares closing statement, makes sure title passes to buyer

Question 27

Closing statement

Answer 27

Lists what buyer owes and what credits will be applied

Question 28

Clear title

Answer 28

No liens or judgements

Question 29

Title search

Answer 29

Check for ownership and claims to property