Module 5 Flashcards
The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender
Closing
Delivering the property to a party in the contract
Possession
A section of TREC’s promulgated contracts that is for factual statements or business details that are not addressed in the contract form and for which there is no TREC promulgated addendum, lease, lease, or other mandatory forms
Special provisions
Often referred to a as closing, which is the consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender
Settlement
Expenses that are prepaid or paid in arrears, that are divided or distributed between the buyer and seller at closing (such as taxes, insurance, interest and rents)
Prorations
A fire or other casualty that damages or destroys the property after the effective date of the contract
Casualty Loss
Non-performance of a duty under a contract
Default
A type of dispute resolution where a mediator hears both sides and tries to help the parties to come to an agreement
Mediation
The closing of a transaction through a third party called an escrow agent, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow agreement
Escrow
The time period that the buyer has the right to purchase property within a definite time at a specified price.
Option period
Occurs when a property s listed by one firm and later sold by another
Cooperative Sale
Occurs when a single brokerage firm sells one of its own listings, the broker is on both the listing and the selling side of the transaction
In-house sale
“Good funds” is described as a
a cashier’s check or wire transfer
The buyer temporary residential lease is used when
the buyer moves in before closing
The buyer’s temporary residential lease is used for no more than
90 days
Settlement expenses include:
Release of existing liens, appraisal fees, and loan application fees
What is the process of dividing ongoing expenses between the buyer and seller at closing
Proration
If buyer fails to comply with this contract, who is in default
Buyer will be in default
If Seller fails to comply with this contract, who is in default
Seller will be in default
The state of Texas encourages who to resolve disputes
Mediation
A seller who has no social security card or green card is considered a
foreign person
The escrow agent will withhold from the sales proceeds an amount sufficient to comply with
applicable tax law
An agent should encourage a client to consult an attorney before
signing the contract
The broker is responsible for ensuring that the effective date is
filled in
