Purchase contract part two

Question 1

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

Answer 1

Additional party insured

Question 2

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

Answer 2

Arbitration

Question 3

Standardized language used in contracts for the sake of efficiency and completeness

Answer 3

Boilerplate

Question 4

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

Answer 4

Claims history report

Question 5

A real estate transaction that has been completed and the sale is final

Answer 5

Close of escrow - COE

Question 6

Provision in a contract that makes the parties rights and obligations dependent on the occurrence (or non-occurrence) of a particular event

Answer 6

Contingency clause

Question 7

A policy that protects a business from liability for data breaches that involve sensitive identification and credit information

Answer 7

Cyber insurance

Question 8

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

Answer 8

Double escrow

Question 9

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

Answer 9

Escrow agent

Question 10

A negotiated agreement to increase the length of time that is specified in a contract

Answer 10

Extension

Question 11

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

Answer 11

Fraudulent misrepresentation

Question 12

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

Answer 12

Home Warranty

Question 13

The fraudulent acquisition and use of another person’s private identification information, usually for financial gain

Answer 13

Identity theft

Question 14

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

Answer 14

Indemnification clause

Question 15

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

Answer 15

Liquidated damages

Question 16

A person designated in an insurance policy to be paid if the insured property is damaged or destroyed, for example, a mortgage lender

Answer 16

Loss payee

Question 17

The process whereby cases already filed with the court or accelerated by referring certain matters to a court referee

Answer 17

Mediation

Question 18

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

Answer 18

Mortgage contingency clause

Question 19

A false statement that is unintentional and as the result of carelessness or negligence, rather than intent to deceive

Answer 19

Negligent misrepresentation

Question 20

The allocation of expenses, real estate taxes, or rents between the buyer and seller in proportion to their actual use of an item

Answer 20

Proration

Question 21

Exaggerated or superlative comments or opinions

Answer 21

Puffing

Question 22

The annulment of a contract by mutual consent of the parties. Verb form: to rescind

Answer 22

Rescission

Question 23

A legal remedy by which a court order someone who has breached the contract to perform as agreed, rather than simply paying monetary damages

Answer 23

Specific performance

Question 24

Occurs when a hacker intercepts an email and sons fraudulent wiring instructions directly to a client’s money to the hackers’s account

Answer 24

Wire fraud