Unit 14 - Real Estate Related Computations and Closing of Transactions

Question 1

Arrears

Answer 1

The state of being behind in the discharge of an obligation; paid at the end of the period for which something is due.

Question 2

Credit

Answer 2

As a verb, to make an entry on the right or credit side of an account; as a noun, payment or value received.

Question 3

Debit

Answer 3

As a verb, to make an entry on the left or charge side of an account; as a noun, a charge or expense.

Question 4

Preclosing inspections

Answer 4

A final walk through with the sales associate to verify that repairs have been completed and that the property is left in good condition

Question 5

Profit

Answer 5

The amount one makes over and above one’s costs

Question 6

Proration

Answer 6

To divide or assess proportionate shares of charges and credits between the buyer and the seller according to their individual period of ownership

Question 7

Title closing

Answer 7

The consummation of a real estate transaction, when the seller delivers title to the buyer in exchange for payment from the buyer of the purchase price.