RE - Set 05

Question 1

PREPAYMENT CLAUSE

Answer 1

A clause in a trust deed that allows a lender to collect a certain percentage of a loan as a penalty for an early payoff.

Question 2

ASSEMBLAGE

Answer 2

Putting several smaller, less valuable parcels together under one ownership to increase value of total property.

Question 3

UTILITY VALUE

Answer 3

The usefulness of the property.

Question 4

APPRAISAL

Answer 4

An estimate or opinion of value supported by factual information as of a certain date.

Question 5

T-INTERSECTION LOT

Answer 5

A lot that is fronted head-on by a street. The noise and the glare from the headlights may be detractors from this type of lot.

Question 6

COST

Answer 6

Represents expenses in money, labor, material, or sacrifices in acquiring or producing something.

Question 7

CUL-DE-SAC

Answer 7

A lot on a dead-end street.

Question 8

VALUE

Answer 8

The power of goods or services to command other goods in exchange for the present worth of future benefits arising from ownership.

Question 9

MARKETABLE TITLE

Answer 9

Good or clear salable title reasonably free from risk of litigation over possible defects.

Question 10

ESCROW HOLDER

Answer 10

An independent third party legally bound to carry out the written provisions of an escrow agreement; sometimes called an escrow agent; A neutral, bonded third party who is a dual agent for the principals.

Question 11

SECURITY INTEREST

Answer 11

The interest of a creditor (lender) in the property of a debtor (borrower).

Question 12

MORTGAGE LOAN DISCLOSURE STATEMENT

Answer 12

A statement that informs the buyer of all charges and expenses related to a particular loan.

Question 13

ACTUAL DEPRECIATION

Answer 13

That depreciation occurring as a result of physical, functional, or economic forces that cause loss in value to a building.

Question 14

BOOK DEPRECIATION

Answer 14

An accounting concept which refers to an allowance taken to provide for recovery of invested capital.

Question 15

SWING LOAN

Answer 15

A short-term loan used to enable the purchaser of a new property to buy that property on the strength of the equity from the property the purchaser is now selling.

Question 16

BALLOON PAYMENT

Answer 16

Under an installment loan, a final payment that is substantially larger than the other payments and repays the debt in full.

Question 17

SUBORDINATION CLAUSE

Answer 17

A clause in which the holder of a trust deed permits a subsequent loan to take priority.

Question 18

TRUTH IN LENDING ACT (REGULATION Z)

Answer 18

A federal law that requires borrowers to be informed about the cost of borrowing money.

Question 19

LAND CONTRACT

Answer 19

A contract for the sale of real property in which the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale or agreement of sale.

Question 20

ACCELERATION CLAUSE

Answer 20

A clause in the loan document describing certain events that would cause the entire loan to be due.

Question 21

CONTRACT FOR DEED

Answer 21

A contract for the sale of real property in which the seller gives up possession of the property but retains title until the total of the purchase price is paid off.

Question 22

SUBJECT TO CLAUSE

Answer 22

A buyer takes over the existing loan payments but assumes no personal liability for the loan.

Question 23

HOMEOWNER EQUITY LOAN

Answer 23

A cash loan made against the equity in the borrower’s home.

Question 24

OPEN END LOAN

Answer 24

A loan in which the borrower is given a limit up to which may be borrowed, with each advance secured by the same trust deed.

Question 25

VENDOR

Answer 25

The seller under a contract of sale (land contract).