RE - Set 06

Question 1

SETTLEMENT STATEMENT

Answer 1

A complete breakdown of all cash received, all charges and credits made, and all costs involved in the transaction.

Question 2

RED FLAG

Answer 2

Something that would warn a reasonably observant person of a potential problem, thus requiring further investigation.

Question 3

EXTENDED POLICY

Answer 3

An extended title insurance policy.

Question 4

ABSTRACTOR

Answer 4

A person who searches out anything affecting the title to real property and summarizes the information in the findings.

Question 5

TITLE PLANT

Answer 5

The storage facility of a title company which holds and stores the complete title records of properties in its area.

Question 6

TITLE INSURANCE

Answer 6

An insurance policy that protects the insured against loss or damage due to defects in the property’s title.

Question 7

VENDEE

Answer 7

The buyer under a contract of sale (land contract)

Question 8

ALL INCLUSIVE TRUST DEED (AITD)

Answer 8

A purchase money deed of trust subordinate to, but still including, the original loan.

Question 9

WRAP-AROUND LOAN

Answer 9

A method of financing in which a new loan is placed in a secondary position; the new loan includes both the unpaid principal balance of the first loan and whatever sums are loaned by the lender; sometimes called an all-inclusive trust deed (AITD)

Question 10

ROLLOVER MORTGAGE

Answer 10

A loan that allows the rewriting of a new loan at the termination of the prior loan.

Question 11

ASSESSED VALUE

Answer 11

Value placed on property by a public tax assessor as a basis for taxation.

Question 12

CONDEMNATION

Answer 12

A common name for eminent domain, or the right of the government to take private property from an owner for public use, paying fair market value.

Question 13

LAND PROJECTS

Answer 13

Subdivisions located in sparsely populated areas of California, and made up of 50 parcels more.

Question 14

EMINENT DOMAIN

Answer 14

The right of the government to take private property from the owner for public use, and paying the market value.

Question 15

EFFECTIVE GROSS INCOME

Answer 15

The anticipated income resulting from estimated potential gross income from a rental property less an allowance for vacancy and bad debts.

Question 16

ECONOMIC AGE

Answer 16

Age of a building determined by its condition and usefulness.

Question 17

EFFECTIVE DEMAND

Answer 17

The desire coupled with purchasing power.

Question 18

APPRECIATION

Answer 18

An increase in value.

Question 19

ACCRUED

Answer 19

Accumulated over a period of time.

Question 20

FRONT FOOTAGE

Answer 20

The width of a property along the street.

Question 21

FARM

Answer 21

A specific geographical location in which an agent walks every month in order to obtain listings.

Question 22

INDIRECT COSTS

Answer 22

Development costs not related to the land or structure, such as legal and architectural fees, financing, and insurance costs during construction.

Question 23

CURB APPEAL

Answer 23

The impression gained, whether good or bad, of a property when it is first seen, usually from the street while driving by.

Question 24

TRADE ASSOCIATION

Answer 24

A voluntary, nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to aid in the industry problems, promote its progress, and enhance its service.

Question 25

EARNEST MONEY

Answer 25

Down payment made by a purchaser of real estate as evidence of good faith; or a deposit or partial payment.