Chapter 24 - Statements of Adjustment and Completion of the Sale

Question 1

A statement of ____________ is a closing statement in a real property transaction whose format is structured by debits and _______.

Answer 1

A statement of adjustments is a closing statement in a real property transaction whose format is structured by debits and credits.

Question 2

A ____________ statement is prepared for a purchaser or vendor, showing the amounts to be received and paid out in the transfer of real property. The difference between these amounts represents either the balance payable by the ____________ or the cash proceeds from the sale to the ___________ upon completion of the transaction.

Answer 2

A closing statement is prepared for a purchaser or vendor, showing the amounts to be received and paid out in the transfer of real property. The difference between these amounts represents either the balance payable by the purchaser or the cash proceeds from the sale to the vendor upon completion of the transaction.

Question 3

A _________’s statement of adjustments is a ________ statement which shows the ___ amount of proceeds to be received by the vendor upon completion of the transaction.

Answer 3

A vendor’s statement of adjustments is a closing statement which shows the net amount of proceeds to be received by the vendor upon completion of the transaction.

Question 4

A ____________’s statement of adjustment is a _______ statement in a real property transaction which indicates the balance of ____ required from the purchaser to complete the transaction.

Answer 4

A purchaser’s statement of adjustment is a closing statement in a real property transaction which indicates the balance of cash required from the purchaser to complete the transaction.

Question 5

A fixture, such as a wall or fence, which illegally intrudes or invades onto public or private property, diminishing the size and value of the invaded property is referred to as an _____________.

Answer 5

A fixture, such as a wall or fence, which illegally intrudes or invades onto public or private property, diminishing the size and value of the invaded property is referred to as an encroachment.

Question 6

The date on which the purchaser’s solicitor undertakes to the vendor (or his/her solicitor) that he/she will pay the balance owing to the vendor upon the _________ of _________ being accepted for registration, is known as the ________ date.

Answer 6

The date on which the purchaser’s solicitor undertakes to the vendor (or his/her solicitor) that he/she will pay the balance owing to the vendor upon the transfer of title being accepted for registration, is known as the completion date.

Question 7

What is the adjustment date?

Answer 7

What is the adjustment date?
Answer:
The adjustment date is the date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

Question 8

What is a conveyance?

Answer 8

What is a conveyance?

A conveyance is the process of transferring an interest in land from one person to another by way of a transfer document. Conveyancing usually refers to the transfer of title to land but also includes dealings such as assignments, leases, and mortgages.

Question 9

A take-back mortgage will appear as a credit on which party’s statement of adjustment?

(1) Purchaser
(2) Vendor

Answer 9

A take-back mortgage will appear as a credit on which party’s statement of adjustment?

(1) Purchaser
(2) Vendor

Answer: (1) Purchaser

Question 10

A deposit paid directly from the purchaser to the vendor will appear on the vendor’s statement of adjustments.

(1) True
(2) False

Answer 10

A deposit paid directly from the purchaser to the vendor will appear on the vendor’s statement of adjustments.

(1) True
(2) False

Answer:
(1) True. The deposit would appear as a debit on the vendor’s statement of adjustments.