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1.
Title insurance on a house protects the mortgage lender if you become insolvent.
False. Title insurance guarantees that the seller is the bona fide owner and has all rights to transfer ownership.
2.
The current market value of your home, minus what you owe on it, is commonly known as your _________.
Home equity. Your home equity is the difference between what you own (the current market value of your property) and what you owe on the property.
3.
An amount paid to secure a real estate agreement is called _______.
Earnest money. To secure the agreed price, the buyer is expected to give earnest money to the seller to secure the agreement.
4.
All of the following are examples of capital improvements to a home except _______.
Repairing the driveway. The other projects increase or improve the livable area in your home and could increase its appraised value. Repairing the driveway is necessary, but only maintains what was already there.