Chapter 17: Real Estate Closings and Computations Flashcards
Arrears
When payment is due at the end of the term
Credit
On a closing statement, credit refers to money that is paid or payable
Debit
On a closing statement, debit refers to money that is owing or a payment
Pre-closing Inspection
On-site review and inspection of a property shortly before closing
Profit
The difference between the selling price and the cost price of an asset
Prorate
To apportion an expense between the buyer and seller so that each party pays its fair share
Which type of payment is paid in advance?
Rent
Which of the following usually appear as a debit on the buyer’s closing statement?
A Purchase price B Lender charges C State taxes on the loan D All of the above
All of the above
What is the tax rate for intangible taxes on real estate financing?
0.002 or 2 Mils
Which of the following appears as a credit on seller’s closing statement?
A Tax proration B Down payment C Purchase price D Realtor's commission
Purchase price
Which of the following is typically pro-rated at closing?
A Property taxes B Purchase price C Real estate commission D Doc. stamps on the deed
Property taxes
