ACCURATE RIGHT ANSWERS .
security deposit - correct Answers -Money paid to a landlord to cover potential cleaning costs at
the end of the lease, as well as any damages the property suffered during occupancy
orgination fee - correct Answers -A charge to process your loan
Cost (Replacement) Approach - correct Answers --finding out how much would it cost to replace
the building brand new
-better for new buildings not old
Sherman Antitrust Act - correct Answers -aganist monopolies
boycotts
price fixing
market allocation
tie in arrangements
illegal actions
earnest money deposit - correct Answers -A deposit made by the potential home buyer to show
that he or she is serious about buying the house.
replacement cost - correct Answers -the cost to replace an inventory item in its identical form
nonconforming loan - correct Answers -Any loan that does not meet the Fannie Mae/Freddie
Mac loan requirements.
, Proration - correct Answers -The division of expenses between buyer and seller in proportion to
the act. ALSO CALLED: Adjustment.
Satisfaction of Mortgage - correct Answers -A document acknowledging the payment of a
mortgage debt..
Consideration Clause - correct Answers -A part of the insurance contract that states that both
parties must give something of value for the transfer of risk, and specifies the conditions of the
exchange.
use clause (lease clause) - correct Answers -define how a tenant is allowed to use the property.
an how a tenant cannot use the space
Grantor - correct Answers -the individual who conveys the ownership rights of real property
Mortgagor - correct Answers -borrower
Term Loan/Straight Loan - correct Answers -Interest only until the end of the term
Open Listing - correct Answers -Multiple agents; only the selling agent (broker) entitled to
commission; seller retains right to sell independently without obligation to pay anyone a
commission
Straight Term Loan - correct Answers -A loan in which only interest is paid during the term of
the loan, with the entire principal amount due with the final interest payment.
Ballon Mortgage - correct Answers -A mortgage with a very large last payment, with all other
payments being relatively low
Amortization - correct Answers -A method for computing equal periodic payments for an
installment loan.