Purchase contract part two Flashcards
A person, firm, or corporation other than the named insured on a policy, or a lender named in a mortgage clause, who is protected against last by the terms of the policy
Additional party insured
A method for resolving disputes out of court we are by an impartial third party renders a binding decision. This is the method by which disputes between realtor brokers may be resolved
Arbitration
Standardized language used in contracts for the sake of efficiency and completeness
Boilerplate
A record of insurance losses on the property being purchased or on a specific consumer such as the buyer. Also called CLUE report or loss history report
Claims history report
A real estate transaction that has been completed and the sale is final
Close of escrow - COE
Provision in a contract that makes the parties rights and obligations dependent on the occurrence (or non-occurrence) of a particular event
Contingency clause
A policy that protects a business from liability for data breaches that involve sensitive identification and credit information
Cyber insurance
Simultaneous escrows on the same property where in the buyer has sold the property prior to closing, used some of the proceeds from the sale to find the purchase, and realizes the balance of the proceeds as profit. Also called simultaneous closing
Double escrow
A person charged with coordinating the activities and documentation necessary for completing a real estate transaction usually the one who assists in preparing the settlement statement and conducting the closing. Also called closing officer, settlement officer, escrow officer, or closing agent
Escrow agent
A negotiated agreement to increase the length of time that is specified in a contract
Extension
An intentional perversion of the truth for the purpose of inducing another, in reliance upon it, to part with something of value or to surrender a legal right
Fraudulent misrepresentation
A contract between a homeowner in a home warranty company that provides coverage for the repair or replacement of named components of the home for a specified period of time
Home Warranty
The fraudulent acquisition and use of another person’s private identification information, usually for financial gain
Identity theft
A contract provision that relieves one party of liability for damages that are caused during the execution of the contract. Also called exculpatory clause or hold harmless clause
Indemnification clause
A sum of money to which the parties to a contract agree in advance (at the time of entering into the contract) will serve as compensation in the event of a contract breach
Liquidated damages
A person designated in an insurance policy to be paid if the insured property is damaged or destroyed, for example, a mortgage lender
Loss payee
The process whereby cases already filed with the court or accelerated by referring certain matters to a court referee
Mediation
A clause in a purchase contract that makes the sale contingent upon the buyer obtaining financing. Usually specifies the loan amount, interest rate, terms, and the date by which the buyer must obtain a commitment. Also called financing contingency
Mortgage contingency clause
A false statement that is unintentional and as the result of carelessness or negligence, rather than intent to deceive
Negligent misrepresentation
The allocation of expenses, real estate taxes, or rents between the buyer and seller in proportion to their actual use of an item
Proration
Exaggerated or superlative comments or opinions
Puffing
The annulment of a contract by mutual consent of the parties. Verb form: to rescind
Rescission
A legal remedy by which a court order someone who has breached the contract to perform as agreed, rather than simply paying monetary damages
Specific performance
Occurs when a hacker intercepts an email and sons fraudulent wiring instructions directly to a client’s money to the hackers’s account
Wire fraud
