Definitions

Question 1

Probate

Answer 1

An action of the court to determine the validity and legality of a last will and testament

Question 2

Escheat

Answer 2

When a person dies with no will and no heirs for his/her estate, and after 15 years the estate reverts back to the State of Hawaii

Question 3

Devise

Answer 3

A gift of realty by will

Question 4

Devisee

Answer 4

One who receives gift of real estate by will

Question 5

Reciprocal Beneficiaries

Answer 5

People who can’t legally marry each other, but are given certain rights as to those who can’t

Question 6

Forclosure

Answer 6

Procedure where property is sold to satisfy a debt in the event of default in payments or terms

Question 7

Covenant

Answer 7

A promise in writing

Question 8

Encumbrance

Answer 8

A claim, lien, charge, or liability legally affecting real property

Question 9

Assignor

Answer 9

A grantor in a leasehold

Question 10

Certificate of Title

Answer 10

An opinion of a title from an examiner’s examination who works for a title company

Question 11

Title examination

Answer 11

A search to determine the quality of a title to real property by searching through public record

Question 12

Escrow

Answer 12

Process by which money and/or documents are are held by a disinterested 3rd party until completion and satisfaction of a sales contract or escrow instructions have been achieved.

Question 13

Fee Simple

Answer 13

An estate in real property, by which the owner has absolute ownership of it. That he may dispose of, trade, or will as he chooses.

Question 14

Leased Fee

Answer 14

The interest and rights of the lessor in a leased real estate

Question 15

Leasehold

Answer 15

Interest and rights of a tenant in a leased real estate

Question 16

Mortgage Clause

Answer 16

An insurance policy that protects the interest of the lender even though the buyer is at fault

Question 17

Promissory note

Answer 17

A written promise to pay a debt as set forth in the writing

Question 18

FIRPTA (Foreign Investment in Real Property Tax)

Answer 18

Requires that when a seller or entity who is foreign, the buyer must withhold a specific percentage on the amount of the sale price to cover any seller federal tax liability until the buyer comes through with a certificate of exemption or waiver from this law within 14 days of acceptance date. If the buyer doesn’t come through with any of this paper work, escrow is then authorized to withhold and send to IRS

Question 19

HARPTA (Hawaii Real Property Tax Act)

Answer 19

The law requires that every buyer of Real Hawaii Property to withhold a certain percentage of the sale price from any non-resident seller’s proceeds. This represents the capital gains tax due on the sale of the property. This needs to be sent to the Hawaii Department of Taxation within 20 days.

Question 20

Usury

Answer 20

Charging more than the maximum rate allowed by law which is 12%

Question 21

Purchase Money Mortgage

Answer 21

The mortgage given by the buyer to the seller or third party, to secure a portion of the purchase price.

Question 22

Tenement

Answer 22

All rights that ass with a land after the land is conveyed

Question 23

Life tenant

Answer 23

The person receiving a life estate

Question 24

Affidavit

Answer 24

A written statement confirmed by an oath, and could be used as evidence in court