Chapter 8 Vocabulary

A legal document that defines the conditions of a rental agreement.

• lease

• condominium

• cooperative housing

• zoning laws

An individually owned housing unit in a building with several such units.

• lease

• condominium

• cooperative housing

• zoning laws

A form of housing in which a building containing a number of housing units is owned by a nonprofit organization whose members rent the units.

• lease

• condominium

• cooperative housing

• zoning laws

Restrictions on how the property in an area can be used.

• lease

• condominium

• cooperative housing

• zoning laws

A portion of the price of a home that the buyer deposits as evidence of good faith to indicate a serious purchase offer.

• lease

• earnest money

• mortgage

• points

A long-term loan on a specific piece of property such as a home or other real estate.

• lease

• earnest money

• mortgage

• points

Prepaid interest charged by the lender.

• lease

• earnest money

• mortgage

• points

The reduction of a loan balance through payments made over a period of time.

• amortization

• earnest money

• mortgage

• adjustable-rate mortgage

A home loan with an interest rate that can change during the mortgage term due to changes in the market interest rates.

• amortization

• earnest money

• mortgage

• adjustable-rate mortgage

Match the vocabulary with the word.

• appraisal

• insurance that, during the mortgage term protects the owner or the lender against financial loss resulting from future defects in the title

• title insurance

• fees and charges paid when a real estate transaction is completed

• closing costs

• a document that transfers ownership of a property from one party to another

• deed

• an estimate of the current value of a property

• escrow account

• money, usually deposited with the lending financial institution, for the payment of property taxes and homeowners insurance