Chapter 16

Question 1

Closing

Answer 1

The time when a transaction is consummated, or the actual signing over of the documents and delivery of the deed; the time after signing when the documents are recorded.

Question 2

Closing Statement

Answer 2

A statement of settlement made by a broker or an escrow company that reflects the financial position of the buyer or seller in that particular real estate transaction.

Question 3

Credit

Answer 3

The acknowledgment of payment in a closing statement.

Question 4

Debit

Answer 4

A charge on a closing statement.

Question 5

Impound Account

Answer 5

A reserve account required by lenders, usually equal to two months taxes and hazard insurance, to cover future payments of taxes, insurance, or cover any increases in these amounts; also, reserve account; also, customer trust fund.

Question 6

Prorate

Answer 6

To divide or distribute proportionately; to divide monies, usually at time of closing, proportionately between seller and buyer.