Chapter 14 vocab

Question 1

The fulfillment of a real estate sales contract

Answer 1

Closing

Question 2

A method of closing, and which a dissinterested, third-party acts as the agent of both buyer and seller to coordinate the closing activities

Answer 2

Escrow

Question 3

The type of loan in a real estate settlement governed by RESPA

Answer 3

Federally related loans

Question 4

a charge that a party owes and must pay at closing

Answer 4

Debit

Question 5

an amount in a parties favor that has already been paid, that is being reimbursed, or that will be paid in the future

Answer 5

Credit

Question 6

The division of financial responsibility for various items between the buyer and seller

Answer 6

proration

Question 7

Expenses to be divided between the parties that are owed by the seller, but later will be paid by the buyer

Answer 7

accrued items

Question 8

Expenses that have been paid by and are credited to the seller

Answer 8

Prepaid items

Question 9

a 360-day period used in calculating prorations

Answer 9

Banking year

Question 10

An unearned fee, paid as part of a real estate transaction, that is prohibited by RESPA

Answer 10

kick back