Title Closing & Costs, Contract of Sales and Leases

Question 1

accrued item

Answer 1

in terms of proration at a real estate closing, an item that is owed by the seller but paid by the buyer

Question 2

binder

Answer 2

an agreement in writing signifying the intention of the parties to move forward with the sale and containing the basic terms of the agreement

Question 3

boot

Answer 3

the additional cash or a thing of value other than real property paid to either party in a tax deferred exchange that will be taxed at the time of the exchange. This is taxable to the person receiving it

Question 4

buyer default

Answer 4

a situation where the buyer in a real estate contract refuses to proceed with the purchase of a property

Question 5

closing in escrow

Answer 5

the process of closing a real estate transaction that takes place through a third party who gathers all the paperwork and funds and distributes them to the proper parties

Question 6

compensatory damages

Answer 6

moneys that may be paid in a default situation where one party (may be the buyer or seller) sues the other party for money they believe they have lost as a result of the default by the other party

Question 7

credit

Answer 7

in terms of proration at a real estate closing, the amount that is owed to the buyer or seller, or something for which they have already paid

Question 8

debit

Answer 8

in terms of proration at a real estate closing, an amount that the buyer or seller owes

Question 9

earnest money

Answer 9

a relatively small amount of money given at the time the binder is signed to indicate good faith on the part of the purchaser to move ahead with the purchase