Terms Pt.5

Question 1

Closed Mortgage

Answer 1

(14) One which does not allow the borrower to pay off the loan before maturity.

Question 2

Closing

Answer 2

(19) The act of finalizing a transaction, in which title is conveyed to the purchaser. Also called Settlement.

Question 3

Closing Costs

Answer 3

(14) Prorated charges by the lender including costs of making the loan and a service charge can be paid by the buyer or seller.

Question 4

Closure

Answer 4

(1) The metes and bounds legal description must return to the point of beginning or the description is incomplete.

Question 5

Cloud on the Title

Answer 5

(4) Any claim, lien, or encumbrance that impairs title to real estate.

Question 6

Co-broker

Answer 6

(6) A broker who assists the listing broker in securing a buyer.

Question 7

Co-brokering

Answer 7

(18) Participation of more than one broker in a real estate transaction.

Question 8

Codicil

Answer 8

(4) A written instrument executed for the purpose of amending an existing will.

Question 9

Collateral

Answer 9

(14) Property pledged to a lender as security for a loan.

Question 10

Color of Title

Answer 10

(4) A title condition which appears to be good but in fact is not valid due to a certain defect, such as a forged deed.

Question 11

Commercial Easement in Gross

Answer 11

(2) A right to use the land of another. It does not benefit any particular property. The right is transferable and freely inheritable. Typical examples include utility easements, railroad right-of-ways and billboard easements.

Question 12

Commission

Answer 12

(6) A broker’s compensation for rendering a service to the principal as negotiated with the principal.

Question 13

Commingling

Answer 13

(8/18) Mixing funds held in trust with the broker’s personal or business accounts.

Question 14

Commission

Answer 14

(18) The GA Real Estate Commission, the state licensing authority charged with the enforcement of the Real Estate License Law.

Question 15

Common Elements

Answer 15

(3) Those areas in a condominium that each unit owner has the right to use in common with the other owners. Examples include land, buildings, recreational and parking areas, and other improvements.

Question 16

Common Law

Answer 16

(6) A body of law based on custom and court decisions over time.

Question 17

Comparables

Answer 17

(3) Properties with similar characteristics to the subject property used for analysis in the market data approach.

Question 18

Community Property

Answer 18

(3) A type of concurrent ownership between husband and wife which entitles each spouse to one-half of all property acquired by their mutual efforts during marriage.

Question 19

Concurrent Ownership

Answer 19

(3) A form of ownership where more than one person has an interest in the same property at the same time.

Question 20

Condemnation

Answer 20

(4) A legal proceeding to exercise the power of eminent domain to take private property for public use.

Question 21

Condemnation Clause

Answer 21

(10) A lease provision which specifies that proceeds be paid to the landlord in the event the leased premises are acquired by the gov’t through condemnation.

Question 22

Condition

Answer 22

(2) A provision in a deed which subjects the ownership of land to certain restrictions. The party creating the condition (the grantor) reserves a future right in the property. Upon the occurrence or nonoccurrence of a stated condition, either the title automatically reverts to the grantor, or the grantor has the right to sue for possession and terminate the estate.

Question 23

Conditional Commitment

Answer 23

(14) An official FHA appraisal of a specific property. Referred to as cost of acquisition. It is used to determine the amount of loan the FHA will insure.

Question 24

Condominium

Answer 24

(3) A form of concurrent ownership in which each occupant of a multiple unit building holds fee simple title to an individual unit. Common areas like land and recreational facilities are co-owned by the unit owners as tenants in common.

Question 25

Consideration

Answer 25

(8) Anything of monetary value to induce another to enter into a contract.

Question 26

Construction Loan

Answer 26

(14) A short-term interim loan to finance the cost of labor and materials necessary to complete construction of a building or other project.

Question 27

Construction Communication

Answer 27

(8) Communication by operation of law.
When an offer is made through a courier the offeree’s acceptance is effectively communicated to the offeror when the acceptance is sent, not when it is received by the offeror.