Contracts
A Hawaii buyer's purchase contract is contingent on selling their current home within 30 days. This is known as a:
AFinancing contingency
BHome sale contingency✓ Correct
CInspection contingency
DAppraisal contingency
Explanation
A home sale contingency makes the buyer's obligation to purchase conditional upon the successful sale of their existing home within a specified time period.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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