N14 Settlement, Prorations & Investments Flashcards
A complete detailed statement showing all receipts and disbursements for a transaction and required by the CFPB is a _________ formerly known as the _______.
Closing Disclosure, HUD-1 Settlement Statement.
A proportional division or distribution of monies between buyers and sellers or landlords and tenants is a _________.
Proration
When prorating items in Arizona, the _______ ,or in a lease the _______ is the person usually responsible to pay for items for the day of closing.
Buyer, Tenant
When prorating, items paid in arrears (that have not been paid) are a Charge (Debit) to the ___ and a Credit to the ____.
seller, buyer
When prorating, items paid in advance (that have been prepaid) are a ___ to the seller and a _____to the buyer.
Credit, Charge (Debit)
Unless negotiated differently, closing costs on a loan are usually paid by the ______________.
Buyer (Borrower)
The owner’s title insurance policy is usually paid for by the __________.
Seller
The projected income on an investment property as if the property was 100% occupied is the ___________
Gross Scheduled Income.
If rent was uncollectable by a landlord it is considered to be a _____________.
Credit Loss
The actual income a rental property produces is _________ AKA _____________.
Effective Gross Income aka Gross Operating Income
Expenses incurred in running an income property are defined as ___________.
Operating Expenses
The income remaining after operating expenses are deducted from the effective gross income is the ___________.
Net Operating Income
The principal and interest paid on a loan are defined as the _________ on an income property.
Debt Service
The amount remaining after paying all operating expenses and debt service is defined as the _________.
Cash Flow Before Income Tax
The two items related to owner-occupied property that may be taken as a tax deduction are __________ and ___________.
Mortgage Interest and Property Taxes
