Choose the One Most Appropriate Answer for Each

question 31

Multiple Choice

Choose the one most appropriate answer for each.
-a third-party escrow agent used in tax-deferred exchanges

• A)"as is"
• B)bill of sale
• C)binder
• D)closing date
• E)delayed exchange
• F)dry rot
• G)earnest money deposit
• H)equitable title
• I)installment contract
• J)lease-option
• K)letter of intent
• L)loan commitment
• M)optionee
• N)option fee
• O)prorating
• P)purchase contract
• Q)qualified intermediary
• R)right of first refusal
• S)"time is of the essence"
• T)vendee

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Definitions:

Formal Instruments

Legally binding documents that record obligations, rights, or processes, such as contracts, deeds, or promissory notes.

Credit Issued

The provision of funds or goods before payment, based on the trust that payment will be made in the future.

Reasonable Source

A credible or reliable origin of information or data that is considered acceptable or trustworthy for making decisions or drawing conclusions.

Sold Receivables

The process of a company selling its receivables to a third party to improve its cash flow.