Section 14 Vocabulary

Question 1

How to calculate commission

Answer 1

To calculate total commission paid by a seller: Take Sale Price × % Charged as Commission = Total Commission Due.

Question 2

Amount due licensee from commission paid

Answer 2

Commission Paid to the Listing or Buyer Broker x % Paid to the licensee = Amount due licensee.

Question 3

Graduated Commission

Answer 3

A type of compensation that incrementally increases as the sale price increases.

Question 4

Arrears

Answer 4

taxes that are paid behind or in arrears.

Question 5

Credit

Answer 5

A credit means that the person who gets the credit is receiving money.

Question 6

Debit

Answer 6

A debit means that the person who gets the debit is being charged money.

Question 7

Pre-Closing Inspection

Answer 7

A pre-closing walk-thru is a normal part of closing procedures. A buyer has the right for a final inspection to make sure that things are good for closing.

Question 8

Principal

Answer 8

The amount of a regular loan payment that reduces the total amount owed.

Question 9

Proration

Answer 9

Debits and Credits to buyers and sellers divided according to details allocated in the contract (or by number of days in the month) owed before the closing date.