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Chapter 22 Review

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					Chapter 22 Review


  Personal Finance
1
A  legal document that
  established ownership.
 Title
2
 Owner  occupied real estate is
  a __________. This means
  there are tax advantages to
  owning.
 Tax Shelter
3
 The  highest price that the
  property will bring when it is
  put up for sale.
 Market value
4
 What  is a down payment?
 The amount the buyer must
  put down before the bank will
  supply the loan.
5
A    ___________ is done to
  make sure the property is clear
  before ownership is
  transferred.
 title search
6
 Why  do some buyers & sellers
  choose to use a real estate
  agent?
 The agent has more time &
  additional resources to
  dedicate to finding or selling a
  home.
7
 The  _______ is when property
  is actually transferred.
 Closing date
8
A loan to buy real property.
 Mortgage
9
 Why  is owner-occupied real
  estate a tax shelter?
 You don’t have to pay taxes on
  the equity until you sell the
  home
10
 Another   name for closing
  costs.
 Settlement costs
11
 Lista quality of life advantage
 to home ownership.
  Privacy

  Personal Freedom

  More space
12
 How often are property taxes
  usually paid?
 Twice per year
13
 How  come some new utility
  customer must pay a deposit?
 They have poor credit or no
  credit history.
14
 Who  pay’s realtor fees?
 The seller, not the buyer.
15
 With  this type of mortgage the
  interest rate does not change.
 Fixed-rate mortgage
16
   List two of the fees included in
    closing costs.
   Title search
   Credit Report
   Loan fees
   Assumption fees
   Paperwork fees
   Recording fees
   Prorated taxes
   Prorated interest
   Property insurance
17
 Propertytaxes are paid on the
  ______ value of the home.
 Assessed
18
 Why  is it more expensive to
  own rather than rent a home?
 Additional utilities

 Taxes

 Maintenance
19
 With  this type of mortgage the
  interest rate starts lower but
  goes up until it reaches a
  predetermined maximum rate.
 Adjustable-rate mortgage
20
         fees are usually
 Realtor’s
 _______ % of the purchase
 price.
6 %
21
 An  ______ is a formal
  document that expresses
  interest in entering into a
  contract with someone else.
 Offer
22
 Ifyour offer is accepted, this
  serves as proof of your intent
  to enter into a binding contract.
 Earnest money
23
A  formal agreement to the
  terms of an offer. Forms a
  binding contract.
 Acceptance
24
A  legal document that
  establishes ownership.
 Title
25
 The  expenses incurred in
  transferring ownership from
  buyer to seller in a real estate
  transaction.
 Closing costs
26
A   real estate marking service in
  which agents from many real
  estate agencies pool their home
  listings and agree to share
  commissions on the sales.
 Multiple listing service (MLS)
27
 The highest price that a
  property will bring on the
  market.
 Market value
28
A   mortgage on which the
  interest rate does not change
  during the term of the loan.
 Fixed-rate mortgage
29
A  formal agreement to the
  terms of an offer, forming a
  contract between the parties.
 Acceptance
30
A   legal document that
  transfers title of real property
  from one part to another.
 Deed
31
A   formal document that
  expresses interest in entering
  into a contract with someone
  else.
 Offer
32
 The  difference between the
  market value of property and
  the amount owed on it.
 Equity
33
 An  offer in response to another
  offer.
 Counteroffer
34
A  portion of the purchase price
  that the buyer deposits as
  evidence of good faith to show
  that the purchase offer is
  serious.
 Earnest money
35
A  financial claim on property.
 Lien
36
A   mortgage for which the
  interest rate changes in
  response to the movement of
  interest rates in the economy
  as a whole.
 Adjustable-rate mortgage
37
 When  people have a
  mortgage, their property taxes
  are most often paid from a(n)
  _____ account.
 Escrow
38
 Property taxes are calculated
  on the _____ value of a home.
 Assessed
40
 What  does MLS stand for?
 Multiple Listing Service
41
 List   3 things a landlord will ask
    for from a potential tenant.
   Deposit
   Complete an application
   Permission to check their credit
   Previous rental references
   Proof of employment
42
 Listthe name of the website
  we used in class to view local
  properties for sale.
 www.homeviewsiouxfalls.com
43
 When   a landlord removes a
  tenant from a rented unit.
 Eviction
Final Question
   Renting                   Owning
List   2 advantages      List   2 advantages


List   2 disadvantages   List   2 disadvantages
        Renting                       Owning
List2 advantages             List2 advantages
Usually less expensive       Investment

Limited maintenance          Paid off at some point e

Don’t need to sell to move   Freedom (pets, paint walls
                              fuchsia)
                              Often more space


List2 disadvantages          List2 disadvantages
Less privacy                 Maintenance

Less freedom (limitations)   Sometimes more expensive

Often less space             Can be difficult to sell

Lease

				
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