Indiana Real Estate Exam Flashcards

Indiana Real Estate Exam Flashcards A brokers commission is specified in the ______ with the principal.contract adjustment dateThe date the interest rate changes on an adjustable-rate mortgage.assumptionThe term applied when a buyer assumes the seller's mortgage.Foreclosureis the loss of property to pay off a debt.A salesperson can receive ______ ONLY from that broker.compensation appraiserAn individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.common lawAn unwritten body of law based on general custom in England and used to an extent in some states.balloon mortgageA mortgage loan that requires the remaining principal balance be paid at a specific point in time.

Liquid Assetscan be quickly converted to cash. Ex: bank accounts,

stocks, bonds, mutual funds certificate of depositA time deposit held in a bank which pays a certain amount of interest to the depositor.leased feeinterest is the owner or landlord's interest Leaseholdinterest is the tenant's interest in the property. The tenant holds the lease.creditorA person to whom money is owed.defaultFailure to make the mortgage payment within a specified period of time.common areasThose portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. This includes swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.deed-in-lieuthis conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts, the avoidance and non-repayment of debt will most likely show on a credit history. It may prevent having

the documents preparatory to a foreclosure being recorded and become a matter of public record.cost of funds index (COFI)One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages.amortizationThe loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the

interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off in the specified time.brokerMost Realtors are "agents" who work under a "broker." Some agents working for themselves or under another

broker. Usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. Is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.