Entries for the ‘Short Sale’ Category

What is the Commission Paid at Settlement?

The commission paid at settlement (closing) is the total commission to be paid.  It may be charged to the Buyer, the Seller, or both

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What is a Deposit?

A deposit is defined as a sum of money, or its equivalent, delivered to a real estate licensee as earnest money, payment, or partial payment in connection with a real estate transaction.  An earnest money deposit may be in the form of cash, currency, or any medium of exchange or securities that can be converted [...]

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What is an Escrow Account?

An Escrow Account is an account for the deposit of money a disinterested third party holds in trust for others. For a mortgage loan, an escrow account is one that is established to hold seperate funds for the purpse of paying bills such as homeowner’s insurance and property taxes.

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What is the Property Tax Disclosure?

Prospective buyers of residential property must be presented a disclosure summary concerning ad valorem taxes before or at the time of execution of the contract for sale.   The property tax disclosure summary is to caution prospective buyers that they can not rely on the amount of the seller’s property taxes as an indication of the [...]

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What is Lien Priority?

If there are two or more liens on a property, the priority of liens determines the order in which the liens will be satisfied if the property must be sold.  The priority of most liens is the date and time that the lien was recorded in the public records.  Real estate (property) tax liens and [...]

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What Does The Term Realtor Mean?

As a home buyer, you should know that the term Realtor identifies a licensed professional in real estate who is a member of the National Assocation of Realtors.  Not all licensed real estate brokers and salespersons are members of the National Association and only those who are can identify themselves as Realtors.

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What is an Escalator Clause?

An Escalator Clause is a clause in a contract, lease or mortgage that allows for increases in wages, rent, interest based fluctuations in certain economic indexes, costs or taxes.

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What is a Prepayment Clause?

A  prepayment clause allows the borrower to pay off part or all of the debt, without penalty or other fees, prior to the majority.  A prepayment clause usually stipulates conditions and terms under which the mortgage loan may be prepaid.

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What is an Exculpatory Clause?

This clause requires that the Lender waive the right to a deficiency judgment against the borrower.  It relieves the borrower of personal liability to repay the loan

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What is the Affiliated Business Arrangement Disclosure?

When a lender, real estate broker or other closing participant refers a borrower to an afilliate for a settlement service, RESPA requires the referring party to give the borrower an Affiliated Business Arrangement Disclosure.  This form explains to the borrower, that they are not required, with certain exceptions, to use the affiliate and are free [...]

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