A Transaction Involving Real Estate Whereby One Party Deposits a Deed

question 1

Multiple Choice

A transaction involving real estate whereby one party deposits a deed or money with a third party who holds the deed or funds until the happening of an agreed-upon event is called a(n) :

• A) adverse possession.
• B) escrow.
• C) foreclosure.
• D) abstract of title.

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Definitions:

Discounted

Refers to the reduction of an item's price or the present value of future cash flows discounted back to the present value.

Proceeds

The amount of money brought in from a transaction or sale, before any expenses are deducted.

Compounded Semi-annually

The process of applying interest to both the principal amount and any accumulated interest every six months.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada, offering tax benefits.