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9 Cards in this Set
- Front
- Back
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ESCROW |
An arrangement in which something of value (such as money or a deed) is held on behalf of the parties to a transaction by an escrow agent until specified conditions have been fulfilled |
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ESCROW AGENT |
An agent who holds things of value on behalf of the parties to a transaction in an escrow arrangement |
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HAZARD INSURANCE |
Insurance against damage to real property cause by fire, theft, vandalism, and other covered perils |
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SETTLEMENT STATEMENT |
A document that presents a final, detailed accounting for a real estate transaction, listing each party's debits and credits and the amount each will receive or pay at closing |
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DEBITS AND CREDITS |
A debit is a charge or debt owed by a party, and a credit is a payment owed to a party |
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PREPAID (INTERIM) INTEREST |
Interest on a new loan that must be paid at the time of closing; covers the interest due for the first month of the loan term |
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FIRPTA |
The Foreign Investment in Real Property Tax Act, which requires that an escrow agent must withhold funds from the sale of real property by a seller who is not a U.S. citizen, in order to prevent tax evasion |
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RESPA |
A federal law that governs residential real estate closings, requiring disclosure of closing costs and prohibiting payment of kickbacks to settlement service providers |
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CLOSING DISCLOSURE FORM |
A form required by RESPA and TILA in most residential transactions; it discloses each party's closing costs and also shows how the actual loan charges compare to the estimatesin the buyer's loan estimate form |
