Exam Prep Flashcards

Question

Preliminary Title Report

Answer 1

A document provided in escrow which shows all claims affecting title (abstract of title, schedule "A" and "B")

Answer 2

An additional charge for paying off a debt before its time | "or more" clause

Answer 3

Those lenders that originate loans, thereby creating "paper" | paper, secondary market

Answer 4

The party represented in an agency relationship | agency, agent, client, fiduciary

Answer 5

The original loan amount. The current remaining unpaid debt on the loan (interest)

Answer 6

A form of insurance required on conventional loans that exceed a loan value - ration of 80% (MIP, LTV ratio)

Answer 7

A court action to prove the validity of a will, or settle an estate (administrator, executor, intestate, testate, will)

Answer 8

The actions of a broker that bring about the desired result | commission

Answer 9

Lesser value properties will be increased by locating near more expensive properties (regression)

Answer 10

A written promise by a person to pay a debt under terms specified in the note (deed of trust, mortgage, note)

Answer 11

Tax levied by the local governments to meet the needs of the community - Real estate taxes are primary liens and are usually based on Ad Valorem (ad valorem)

Answer 12

To divide or assess proportionality between buyer and seller the obligations that have been paid or due. The close of escrow is the buyer's day (title, escrow)

Answer 13

A report required before a subdivision can be offered for sale or lease - Discloses all facts about the property for the buyer's protection (subdivision)

Answer 14

The value in the object itself | subjective value, value

Answer 15

Over exaggeration of one's opinion | misrepresentation, embellishment

Answer 16

Damages extending far beyond the actual loss | liquidated damages

Answer 17

A mortgage given by a buyer as part of the consideration for the price - one usually carried by the seller in a credit transaction (mortgage, soft money mortgage)

Answer 18

A life estate that is based on a life of an other | life estate (per o -tra vee - French meaning "for another's life")

Answer 19

Per front foot or a specific portion allocated to a property owner - usually used in an assessment calculation (assessment)

Answer 20

Water rights that are based on a government permit system. The rights to use the water in a river or stream adjacent to the land (riparian rights)

Answer 21

Economic rent exceeds the contract rent | contract rent, economic rent, leasehold, negative leasehold

Answer 22

The process of combining two or more parcels of land so that together they have a greater total value (assemblage, contribution, subdivision)

Answer 23

A court case that established the doctrine of "Separate but Equal" (brown vs board of education)

Answer 24

A horizontal piece that supports the trusses or rafters of a roof (construction)

Answer 25

A rental payment which is based on a percentage of the gross sales (gross lease, net lease, commercial)

Answer 26

The instrument used by a Sovereign Power to transfer real property to an individual (cession deed, deed)

Answer 27

The dividing of co-ownership in property so that each holds his or her interest sole and separate. A legal process terminating a co-tenancy (tenancy in common)

Answer 28

A rule stating that oral evidence may not be added to a written agreement (contract requirements, equal dignities rule)

Answer 29

Authority arising when a principal has intentionally caused a third party to rely upon the apparent authority even though it has not been given *An association of two parties that would lead a reasonable person to conclude that one party is acting as an agent for the other party. (agency by ratification, implied agency)

Answer 30

A clause in a note or security device that indicates no pre-payment penalty. The debt can be paid in full at any time by the debtor (prepayment penalty)

Answer 31

An open-ended loan has lien priority as per recondition regardless of future draws (construction loan, draws, open ended loan)

Answer 32

a home loan that meets certain standards set forth by the federal government. The Loan is presumed to have met the "ability to repay" rule per the Dodd-Frank Act (ability to repay rule, Dodd-Frank Act)

Answer 33

An appraisal method which takes into account all the component parts along with the installation costs. (const approach, unit-in-place method)

Answer 34

One fourth of a township that contains 160 acres

Answer 35

A court action to remove a cloud on title and create marketable title (cloud on title)

Answer 36

A deed which releases any or all interest one may have in real property (deed, quiet title suit)

Answer 37

Real Estate Investment Trust - A corporation white a minimum of 100 investors and 95% of the profit passes to the shareholder

Answer 38

Real Estate Settlement Procedures Act. Requires disclosures of closing costs to buyers and sellers. Required within 72 hours of a loan application - Required on residential loans up to a 4-plex (regulation Z)

Answer 39

A colorless, odorless gas from decaying minerals in high concentrations that is knowns to cause lung cancer (construction)

Answer 40

Sloping boards that extend from the top of the exterior wall to the ridge board (construction, ridge board)

Answer 41

Survey lines that are six miles apart and run parallel to the principal meridian (government rectangular survey system, tier line, township)

Answer 42

ROR - The percentage earned on an investment | cash on cash return

Answer 43

A term used to identify members of the national association of realtors

Answer 44

The amount of depreciation taken for tax purposes is now taxable

Answer 45

Entering a document in the Recorder's office at the prescribed county (chain of title, constructive notice)

Answer 46

A state fund that monetarily reimburses the aggrieved public due to dishonest acts of the licensee (aggrieved, subrogation)

Answer 47

The statutory period of time the borrower has to redeem in a mortgage foreclosure, usually six months after the sheriff sale (mortgage, reinstatement period)

Answer 48

An illegal practice that restrict loans by geographic area | blockbusting, federal fair housing, steering

Answer 49

A document issued by lender for buyer's benefit stating the existing loan balance (assumption of mortgage, estoppel certificate)

Answer 50

An appraisal principle which states that the worth of an expensive property is lessened by the presence of less expensive properties (progression)

Answer 51

Truth in lending laws apply to residential financing - full disclosure of all financing charges. Interest rates are expressed in A.P.R. (apr, respa)

Answer 52

The period of time the truster has to make all the delinquent payments prior to the trustee foreclosure sale in a Deed of Trust (trustee's deed, redemption)

Answer 53

A clause in a blanket security instrument that allows for individual release of secured lots for the lien (blanket mortgage)

Answer 54

The gaining of land due to the subsidence of water of a non-navigable stream (accretion, non-navigable stream)

Answer 55

A map indicating by lines, shading, or color, different elevations of land (contour map)

Answer 56

One who is entitled to an estate upon termination of a life estate (contingent remainder, reversionary estate)

Answer 57

A future interest in real estate after a life estate | contingent remainder, vested remainder

Answer 58

Consideration given for the use of property | contract rent, economic rent

Answer 59

The cost of replacing a property using today's materials | cost approach, reproduction cost

Answer 60

The cost of rebuilding an exact replica | cost approach, replacement cost

Answer 61

Rights retained by the grantor when property is conveyed. Frequently called Deed Restrictions (deed restrictions)

Answer 62

The value that remains after a property's economic life | economic life, salvage value

Answer 63

An estate returned to the original grantor. Usually at the end of a life estate or lease (remainder estate)

Answer 64

A large horizontal beam placed at the peak of a roof to which rafters are attached (rafters, construction)

Answer 65

The right one has to cross the land of another | easement, ingress and egress

Answer 66

An incident whereby the surviving joint tenant automatically receives the interest and rights of the deceased joint tenant (joint tenancy, tenancy by entireties)

Answer 67

The property owner's right to enjoy or use the water abutting his land (reliction)

Answer 68

A unit of measurement that consist of 16.5 feet

Answer 69

A right that remains with the land even upon transfer such as an easement appurtenant (appurtenant)

Answer 70

A regular corporation that has the elected to be treated as a partnership for tax purposes - restriction do apply (corporation, partnership)

Answer 71

The selling of property to an investor while at the same time leasing it back for a specified period (net lease)

Answer 72

The estimated economic value of an asset at the end if its economic life (depreciation, appraisal, residual value)

Answer 73

A lease in which a lease rents the property to another party, putting himself in the middle position (assignment, sublease)

Answer 74

A document which, when recorded, releases the judgment lien | judgment lien

Answer 75

A document stating that the mortgage debt has been paid in full (deed of reconveyance, defeasance clause)

Answer 76

Description page of a preliminary title report and the type of insurance being issued (schedule "B")

Answer 77

The portion of a title insurance policy that lists the exceptions to coverage by the policy (schedule "A", title insurance)

Answer 78

The maximum potential income a property can generate before any deductions or expenses (adjusted gross income)

Answer 79

A loan repayment record that is consistent

Answer 80

Agencies which purchase mortgages from primary lenders thereby creating funds for additional mortgages (FHLMC, FNMA, GNMA, primary lenders)

Answer 81

In the government rectangular survey system, a parcel of land one mile square containing 640 acres (quarter section, township)

Answer 82

Under the U.C.C., a document used to secure personal property (chattel mortgage, financing statement, uniform Commerical code)

Answer 83

The land against which an easement has been granted for the benefit of the dominant estate (dominant estate, easement appurtenant)

Answer 84

The distance a structure must be from a given point such as a street or an easement (variance, zoning)

Answer 85

A full disclosure of all charges and disbursements in a real estate transaction proration, regulation Z)

Answer 86

The inner covering of boards on the roof or outside walls of a frame house (construction)

Answer 87

Deed given by the Sheriff at the completion of a mortgage foreclosure sale (bargain and sale deed, foreclosure, involuntary alienation)

Answer 88

Prohibits certain business activities that are ani-competitive such as price fixing

Answer 89

The gain on the sale of a capital asset usually held for 12 months or less (Asset, capital gain)

Answer 90

The lowest horizontal board in a window or door frame | mud sill, construction

Answer 91

Interest paid only on the unpaid principal balance | command interest, interest, principal

Answer 92

A fund made up of sums of money set aside to pay a debt or meet depreciation expenses

Answer 93

Land has an economic value due to its location | law of situs

Answer 94

A mortgage given to finance a specified property. Usually a carry back between the seller and buyer that reflects an extension of credit (hard money mortgage, mortgage, purchase money mortgage)

Answer 95

Owned by one person - Severalty | concurrent tenancy

Answer 96

Properties such as churches and theaters having a single purpose and little demand (cost approach)

Answer 97

A conveying deed in which the grantor guarantees the title of real property for only as long as he has owned it (general warranty deed)

Answer 98

A lien which encumbers only a certain parcel of property | lien, general lien

Answer 99

A court action that forces a party to comply with the contract as promised (breach of contract)

Answer 100

Estimating the value of a building using the exterior measurements (cost approach, replacement cost, reproduction cost)

Answer 101

A law that states all real estate contracts must be in writing to be enforceable (except a lease for one year or less) (contract requirements, equal dignities rule, parol evidence rule)

Answer 102

A time limit during which a legal action must take place | laches

Answer 103

Laws passed by a legislative body

Answer 104

A lien placed against property by operation of law | assessment, involuntary lien, judgment lien, property tax

Answer 105

The mortgagor's last chance to redeem the property after the foreclosure sale by paying the entire debt (acceleration, certificate of sale, equitable period of redemption)

Answer 106

An illegal practice that guide home buyers to a particular are of town (blockbusting, federal fair housing, redlining)

Answer 107

The basis of the property acquired from a decedent will equal the value at the time of death (basis)

Answer 108

A method of depreciation in which the asset is written off evenly over its useful life (depreciation, tax)

Answer 109

A note that calls for payments of interest only followed by a balloon payment of the principal (interest only, term only)

Answer 110

One who acts for another for the purpose of concealing the other's identity - or a third party used to create a Joint Tenancy (unities fo joint tenancy)

Answer 111

The vertical supports in a wall of frame house | construction, joists

Answer 112

The right to use the land below ground level to the center of the earth (mineral rights)

Answer 113

A licensee who represents a designated broker but does not have the direct contractual obligation to buyer or seller (agent, cooperating broker)

Answer 114

A large tract that has been divided into smaller parcels for sale. Six or more parcels improved or unimproved any of which are less than 36 acres each (plat map, public report)

Answer 115

A buyer takes over real property but is not liable for the mortgage on the property (assumption of mortgage, novation)

Answer 116

Value that is created in the minds of people | objective value

Answer 117

A re-renting of space held under a lease to a third party | assignment, sandwich lease

Answer 118

A clause in which the lien holder agrees to be secondary to a future encumbrance (junior mortgage)

Answer 119

A written order directing a person to appear in court or produce documents

Answer 120

The substitution of a claim for monies paid

Answer 121

An appraisal concept that states that the value of one property is set by the cost of buying an equally desirable property (conformity, regression)

Answer 122

Also called the cost approach in appraising | cost approach

Answer 123

Known as S.E.R.C.L.A. - Comprehensive Environmental Response Compensation and Liability Act. Purpose is to focus on cleanup of hazardous substances in given areas as so determined by the E.P.A. (E.P.A.)

Answer 124

A private company that promises to perform if the bonded party fails

Answer 125

The classification of water that includes all natural streams, lakes or ponds (ground water, prior appropriation, riparian rights)

Answer 126

Determining the location of land by measuring the determined lines and angles (mets and bounds, plat mat)

Answer 127

An increase in value to real property due to the owner's labor (equity)

Answer 128

A combination of parties joined together to undertake an investment as an entity (general partnership, limited partnership)

Answer 129

Adding successive time periods of continuous usage | adverse possession, easement by prescription

Answer 130

A permanent financing arrangement that pays off a construction loan (open end loan)

Answer 131

Personal property that can be moved | intangible

Answer 132

A real estate investment that postpones the paying of taxes | exchanging, installment sale

Answer 133

The rate applied to the assessed value of property to establish a tax (special assessment, dollar rate, mill rate)

Answer 134

Using investments to postpone the payment of income tax | depreciation tax

Answer 135

A mode of holding tittle to real property | concurrent tenancy, sole and separate

Answer 136

The quality of the tenancy one that has if he remains on the property after the lease has expired. Least possible state in land (actual eviction, holdover tenant)

Answer 137

A lease that can be terminated by either party at their will | tenancy at sufferance, tenancy for years

Answer 138

A method of joint ownership whereby the remaining portion of the property automatically passes to the surviving spouse (going tenancy, rights of survivorship)

Answer 139

A lease that in automatically renewed for the same like time | tenancy

Answer 140

Any lease for a specified period of time | leasehold, tenancy at sufferance, tenancy at will

Answer 141

Co-ownership in property. Interests need not be equal and no right of survivorship exists (concurrent tenancy, partition, undivided interest)

Answer 142

Owned buy one person. Sole and Separate | concurrent tenancy

Answer 143

One who occupies or uses property under a lease | lessee

Answer 144

Real property and those rights that remain, and are attached to the land (appurtenant)

Answer 145

A mortgage which must be paid off in a specified period of time. Interest only (amortization, balloon payment)

Answer 146

Having died with a will | executor, intestate, will

Answer 147

Survey lines that are six miles apart and run parallel to the principal baseline (base line, principal, range lines, township)

Answer 148

All obligations set forth in the contract must be met on or before the date specified (close of escrow)

Answer 149

The legal proof of real property ownership | chain of title, constructive notice

Answer 150

Insurance in a real estate transaction that protects the parties against title defects (lender's policy, owner's policy, schedule "A" and "B")

Answer 151

A lender of cash may hold legal title to property | lien theory state

Answer 152

A registration system that accurately determines ownership and claims to real property (evidence of title)

Answer 153

A wrongful act against a party in which civil action can be brought (lis pendens)

Answer 154

Individual ownership of a specific structure plus interest in the common area - ownership includes air and subsurface rights (condominium)

Answer 155

A parcel of land that is six miles square and contains 36 sections (section)

Answer 156

Items used in business that appear to be real property but remain personal property (fixture)

Answer 157

The deed one receives as a result of tax foreclosure sale | bargain and sale deed, certificate of purchase, involuntary alienation

Answer 158

A broker's bank account used specifically for earnest money or rental deposits (commingling, conversion, earnest money)

Answer 159

One who holds bare-naked title in a deed of trust for the beneficiary until the entire debt is paid (beneficiary, deed of trust, trustor)

Answer 160

A deed given by the trustee to convey property out of trust | bargain and sale deed

Answer 161

The party who signs the trust deed. The borrower in a deed of trust (beneficiary, deed of trust, trustee)

Answer 162

Covered by reg Z - Borrowers are to be given truthful and complete information as it relates to the cost of credit (reg Z)

Answer 163

Co-ownership whereby each party has the right to use the entire property (community property, concurrent tenancy, joint tenancy, tenancy in common)

Answer 164

Taking unfair advantage of one's position in acquiring an agreement (duress, penance, mutual assent)

Answer 165

An increase of property value due to external causes such as inflation (appreciation, sweat equity)

Answer 166

A contact that appears to be valid but neither party can be legally forced to perform (parol evidence rule, valid, void, voidable)

Answer 167

A code of law that regulates the security used in personal property transactions (bulk transfer, financing statements, security agreement)

Answer 168

A contract that is binding only to one party | bilateral contract, first right of refusal, option

Answer 169

An estimate of value that computes each unit times the number of units in a given building (cost approach)

Answer 170

Time, Title, Interest, Possession

Answer 171

One authorized to act for another in every and all actions, such as a guardian (general agent, limited agent)

Answer 172

The period of time a property will be useful for its intended purpose (economic life)

Answer 173

Charging a higher rate of interest that the law allows | interest

Answer 174

V.A. will guarantee to the lender of funds a specific amount in the case of default (certificate of eligibility, VA guarantee)

Answer 175

A contract that contains all essential legal requirements and is enforceable though a court of law (contract requirements, void, voidable)

Answer 176

Something of monetary value given in exchange of rate conveyance of real property (consideration)

Answer 177

The amount of consideration an item can command: also the present worth of future benefits (worth)

Answer 178

Demand, utility, scarcity, transferability | objective value, subjective value

Answer 179

Demand, utility, scarcity, transferability Lender may adjust the interest on a loan based upon an index (flexible payments, index lease, margin)

Answer 180

Permission obtained to act in a way that is contrary to current zoning ordinances (non-conforming use)

Answer 181

The buyer of real estate property under an agreement for sale (agreement for sale, equitable title, vendor)

Answer 182

The seller of real property under an agreement for sale | agreement for sale, equitable title, forfeiture

Answer 183

A contract that never was legal and has no binding effect | valid, voidable, unenforceable

Answer 184

A contract that appears to be valid on its face until action is taken to void it (void, valid, unenforceable contract)

Answer 185

The grantor guarantees forever the title conveyed. The warranty is found in a general warranty deed (general warranty deed, warranty of further assurance)

Answer 186

The grantor promises to deliver all necessary documents in order to convey clear title. This warranty is found in a general warranty deed (genreal warranty deed, warranty forever)

Answer 187

An unrecorded document that creates a gap in the chain of title (chain of title, constructive notice, recording)

Answer 188

A legal testament by which a person disposes of his or her property at the time of death (formal will, holographic will, nuncupative will, testate)

Answer 189

The seller of a negotiable instrument may be held responsible for its future payments (without recourse)

Answer 190

The seller of a negotiable instrument may not be held responsible for its future payments (with recourse)

Answer 191

The amount something should sell for in an open and free market (market value)

Answer 192

Creating a new obligation which consists of all underlying debts plus the sellers equity (all-inclusive deed of trust)

Answer 193

A decree of the court instructing an officer of the court to carry out the judgement (judgement lien)

Answer 194

The financial benefits received from an investment | A.P.R., rate of return

Answer 195

Local laws that regulate the specific use and character of land (master plan, police power)

Answer 196

A formal description that defines the boundaries of real property. This description is sufficient to locate the property and may be enforced through a court of law (government rectangular survey system, legal description, metes and bounds, plat map)

Answer 197

Identifying a parcel of land by a street address or local terminology (legal description, metes and bounds, monument)

Answer 198

A non-inheritable right provided by law | community property, curtesy, dower, homestead

Answer 199

A person created by law such as a corporation | corporation, natural person

Answer 200

The interest rate the court assigns to those documents that have no specified interest rate (contract rate)

Answer 201

The lawful claim to ownership

Answer 202

One who receives money or personal property through a will | bequest, devise, legacy

Answer 203

An extended coverage Title Insurance policy purchased for the lender (extended coverage policy, owner's policy)

Answer 204

An estate of possession but not ownership - a lease | freehold, leasehold

Answer 205

The tenant in a lease

Answer 206

A landlord in a lease

Answer 207

A repayment plan that includes principal and interest. The total of which is the same amount each payment (amortization)

Answer 208

Using borrowed funds to finance investments with little or no personal cash invested (loan to value ratio)

Answer 209

A personal privilege one has to use the land of another. (Privilege revocable) (easement)

Answer 210

A money claim against property | encumbrance, general lien, specific lien

Answer 211

States in which the Lender of cash does not hold legal title, but only a lien as security against title (title theory state)

Answer 212

An interest in property that is limited to the life of the grantee - or the life of some specified person (contingent remainder, legal life estate, remainder estate, reversionary estate)

Answer 213

One who possesses a life estate | conventional life estate, remainder (vested)

Answer 214

Property held for an investment when qualifying for a real estate tax deferred exchange (exchanging)

Answer 215

An agent having the power to perform only in those areas expressed in a legal document (agent of necessity, general agent)

Answer 216

Parties who contribute capital to an investment and are responsible for the amount invested (general partnership, partnership)

Answer 217

An assed that can easily be converted into cash | asset, frozen asset, leverage

Answer 218

The dollar amount stated in the contract paid to the injured party if a breach occurs. The dollar amount is usually pre-agreed (aggrieved, breach of contract, forfeiture)

Answer 219

Lawsuit pending | attachment, judgment lien

Answer 220

A written agreement between a principal and broker to sell or lease property for compensation (agency, agent, exclusive agency listing, exclusive right to sell, law of agency)

Answer 221

The agent who acts for the owner of property in either leasing or selling (agent, fiduciary, principal)

Answer 222

A property owners right to use the land abutting a lake or ocean (riparian rights)

Answer 223

The amount of loan in relationship to property value | leverage

Answer 224

The taxable gain on the sale of a capital asset held for more than the statutory period of time (asset, capital, capital gain)

Answer 225

Clause in a blanket mortgage to release individual lots | blanket mortgage

Answer 226

A method of identifying land in a subdivision by referring to a certain lot, block and a recorded plat of that subdivision (legal description, plat map)

Answer 227

Consideration that is given to support a gift deed | consideration, valuable consideration

Answer 228

Mortgage Insurance Premium - Insurance pertaining to an F.H.A. insured loan (federal housing administration, private mortgage insurance)

Answer 229

A person who is legally competent according to the minimum age law of that state (competent party, contract requirements, incompetent party)

Answer 230

In an adjustable rate loan, the amount added to the index to determine the rate (variable rate mortgage)

Answer 231

An appraisal process that uses comparable to estimate the value of a specified property (appraisal, comparable, correlation)

Answer 232

The price a property actually sells for | floor value, market value

Answer 233

The price a property should sell for if enough time is allowed and neither seller nor buyer is under pressure to act (market price)

Answer 234

A mortgage that is given for direct cash | soft money mortgage

Answer 235

The right to will to another personal and real property | incorporeal

Answer 236

Highest place on shoreline reached by rising water | non-navigable stream

Answer 237

Land usage at the time of an appraisal which would create the highest net return (appraisal)

Answer 238

A contract clause stating one party agrees to protect another form losses (exculpatory clause, indemnify)

Answer 239

The party who is holding an one for value and has the protection of law for its enforcement (negotiable instrument, promissory note)

Answer 240

A long-range guide for the orderly growth of a given area | zoning

Answer 241

The legal right to a contractor to place a lien on real property for work or materials rendered (inchoate lien, notice of completion, satisfaction of mortgage)

Answer 242

A continuous series of ongoing cities all heavily populated

Answer 243

A law requiring sex offender registration and notification

Answer 244

The threat of force in acquiring an agreement | duress, mutual agreement, undue influence, voidable

Answer 245

In the government rectangular survey system, a reference line that runs North and South and crosses the principal baseline (base line, government rectangular survey system)

Answer 246

A legal description of land that uses an identifiable starting point to define the boundaries of real property (monument, point of beginning)

Answer 247

A property tax rate that is equivalent to one tent of one unit. Expressed as .001 or 1/1000 of a dollar (dollar rate)

Answer 248

Sub-surface rights to all underground assets | air rights, sub-surface rights

Answer 249

To represent falsely or to give untrue statements | fraud, puffing the goods

Answer 250

A foundation formed by a single pouring of concrete | foundation, construction

Answer 251

A natural object that is given as part of a survey | bench mark, legal description, metes and bounds

Answer 252

An act of conduct that is base, vile, or depraved

Answer 253

A temporary halting of payments due on a debt

Answer 254

A security document given to insure the payments of a note | mortgagee, mortgagor, satisfaction of mortgage

Answer 255

The buyer assumes the seller's mortgage and agrees to pay the debt. Original maker is not necessarily free from liability (novation, subject to)

Answer 256

One who is paid a fee to arrange loans between a lender and a borrower (primary lenders)

Answer 257

In a tax deferred exchange - the assumption of a mortgage of lesser value than an existing mortgage (boot, debt relief, exchanging, tax deferment)

Answer 258

The lender under a mortgage-type transaction. The receiver of the security instrument (mortgage, mortgagor)

Answer 259

The party who gives and is the maker of the security | hypothecate, mortgagee, trustor

Answer 260

The lowest horizontal member of a frame house that rests on the foundation (sill)

Answer 261

A general pooling of listing information available to those members of the local board of realtors (cooperating broker, exclusive right to sell, realtor)

Answer 262

Theory of land use development around several central business areas (axial theory, concentric theory)

Answer 263

A meeting of the minds between the two parties in a contract | contract, contract requirements

Answer 264

A written appraisal showing in detail the reasoning behind the assigned estimate of value (appraisal)

Answer 265

A person by birth, not by operation of law | legal person

Answer 266

A designated public highway of water. The stream bed is owned by the government (non-navigable stream)

Answer 267

Contract rent exceeds the economic rent | contract rent, leasehold, positive leasehold

Answer 268

A written document that, when endorsed, can be assigned to another (assignment, holder in due cause)

Answer 269

Adjoining areas of land that have common characteristics and similar usage (buffer zone)

Answer 270

Tenant pays rent and other costs pertaining to the property | gross lease

Answer 271

An agreement in which a minimum sales price is set by the seller. The broker receives his commission from that amount over and above the minimum sales price (exclusive agency listing, exclusive right to sell)

Answer 272

The income obtained from property after operating expenses | adjusted gross income, gross schedule income, income approach

Answer 273

A person who is acting for a party to be named later | assignee, assignment

Answer 274

A mortgage clause which states that the lender will not disturb the present tenant's rights even in the event of foreclosure (foreclosure)

Answer 275

The continuance of a certain use even though the area has been zoned for a different purpose; a property use that is not consistent with current zoning (conformity, grandfather clause, variance, zoning)

Answer 276

No two parcels of real estate are alike or occupy the same geographic location (situs)

Answer 277

An estate which cannot be passed to one's heirs | conventional life estate, legal life estate, less than freehold

Answer 278

A stream not designated as a public highway; the stream bed is owned privately (navigable stream, reliction)

Answer 279

A public officer who is able to attest and certify legal documents by a signature and seal (acknowledgment)

Answer 280

A document that is evidence of debt - an obligation | deed of trust, mortgages

Answer 281

A legal notice that indicates a completed project where a mechanics pre-lien was filed. (mechanics lean)

Answer 282

An oral will that is witnessed | formal will, holographic will

Answer 283

The original obligor is believed of any further loan obligation due to the substitution of a new party (assumption of mortgage, subject to)

Answer 284

A legal relationship in which the principal appoints an agent to act in his behalf (agency coupled with an interest, agent, client, customer, dual agency, fiduciary, principal)

Answer 285

Unauthorized actions of an agent that are later approved by the principal (ostensible authority)

Answer 286

An agency (listing) in which an agent has an interest (usually financial) in the subject property (agency, estoppel)

Answer 287

One who is authorized to act for a principal | agency, fiduciary, general agent, limited agent, subagent, universal agent

Answer 288

An act of law or circumstances requiring a limited agent to act beyond his authority. Principal's consent not necessary) (limited agent, principal)

Answer 289

To cause grief or to injure one's legal rights | civil law, recovery fund

Answer 290

A Document giving equitable title to a buyer (vendee) of real property. Also called "Contract for Deed." Parties are usually called Vendor and Vendee (equitable title, land contract)

Answer 291

Another name for a purchase contract | bilateral contract, executed contract, executory contract

Answer 292

The right to use the air space above the property | caissons

Answer 293

A clause in a loan document calling for the entire balance due and payable when the property is sold (acceleration clause, due on sale clause)

Answer 294

A wraparound loan arrangement whereby a Deed of Trust is used in place of a mortgage (deed of trust, wraparound)

Answer 295

The rights of individuals to private ownership of real property (bundle of rights, feudal system)

Answer 296

Sand, clay, eat., deposited by flowing water | accretion

Answer 297

Also known as the F.H.A. Escape Clause | escape clause

Answer 298

Those desirable features (extras) of a property that may benefit an owner (objective value, subjective value)

Answer 299

Federal law designed to eliminate discrimination against individuals with disabilities by requiring equal access to accommodations (federal fair housing)

Answer 300

A schedule of payments that will eventually extinguish the entire obligation (balloon payment, P.I.T.I)

Answer 301

A Triple-A tenant that gives exposure and stability to a shopping center (Commerical)

Answer 302

The method of attaching personal property to real property so that it becomes a fixture (fixture)

Answer 303

A series of payments made at specified intervals

Answer 304

The present value of property is determined by the future benefits to be obtained from that property (conformity, contribution, substitution)

Answer 305

An opinion of the value of a property given for a specified date in time (appraisal methods)

Answer 306

Market Data Approach, Income Approach | cost approach, income approach, market data approach

Answer 307

The increase in property value due to external or internal causes (unearned increment)

Answer 308

That which belongs to the property rights, privileges, and improvement (corporeal, incorporeal, tenements)

Answer 309

To charge a higher interest rate to the buyer that is currently being charged on the loan (wrap around mortgage)

Answer 310

The settling of a dispute between two parties by a neutral party (interpleader)

Answer 311

A business transaction in which all parties have equal bargaining opportunity (undue influence)

Answer 312

(Paid) after its usage, such as Arizona property taxes and interest on real estate loans

Answer 313

A fire resistant mineral used in building and household product that has been found to cause lung cancer (abatement)

Answer 314

The process of combining two or more smaller parcels of land into one large tract (plottage)

Answer 315

The value placed on real or personal property for tax purposes (ad valorem)

Answer 316

A tax charged to the owner of real property for benefits received. Tax is usually based on a pro rattan share (ad valorem, pro rata share)

Answer 317

All valuable items held by a person which may be used to liquidate a debt (capital, frozen asset, liquid asset)

Answer 318

One to who interest in a property is transferred | assignment

Answer 319

The transferring of interest from one party to another in a purchase contract or lease (assignee, assignor, nominee)

Answer 320

The transferor of all or parts of the tenant's rights to another party (sandwich lease, sublease)

Answer 321

The right of a lender to collect rents from the borrower's tenants in case of loan default (foreclosure)

Answer 322

One who transfers a specified interest in property | assignee, assignment

Answer 323

The Grantee taking title to real property and assuming liability for an existing obligation. The original mortgagor still remains liable (novation, subject to)

Answer 324

Subdivisions in Arizona located in an Active Management Area need to provide a 100 year water supply (adequate water supply)

Answer 325

The taking of property into custody, pending the outcome of a legal action (garnishment, judgement lien, lis pendens, specific client)

Answer 326

One who has written authorization to act for another under a power of attorney (agent, general agent, limited agent, power of attorney)

Answer 327

Another term for a listing agreement | listing agreement

Answer 328

In bankruptcy an automatic injunction that halts actions by creditors (chapter 7, chapter 11, chapter 13)

Answer 329

The loss of land due to sudden and violent acts of nature | accretion, erosion, involuntary alienation

Answer 330

Theory of land use Develpoment along major highways | concentric theory, multiple nuclei theory

Answer 331

A ratio that indicates what portion of an individuals income is used to pay all long term debt (front end ratio)

Answer 332

A lump sum paid to liquidate a debt or paid anytime during a loan period (interest only, straight note, term loan)

Answer 333

An appraisal method used for income property that establishes a capitalization rate by using mortgage interest rates available, rate of return required, and the debt and equity in said property (capitalization rate (overall)

Answer 334

A financial situation when a person's liabilities exeed his ability to pay (assets) (chapter 7, chapter 11, chapter 13)

Answer 335

Title held by a trustee in a Deed of Trust document. The trustee does not have any of the bundle of rights provided in ownership (deed of trust)

Answer 336

A conveying deed that has three covenants but no warranties. Frequently used in an operation of law transaction (covenants in a deed, general warranty deed)

Answer 337

In the government rectangular survey system, the reference line that runs east and west and crosses the principal meridian (government rectangular survey system, meridian (principal))

Answer 338

The actual price paid for the property | adjusted basis

Answer 339

1/100 of one percent

Answer 340

A wall in a building that supports a ceiling load | joist, ridgeboard, stud

Answer 341

A mark made on a permanent object that has a known location and elevation (survey)

Answer 342

The lender under a deed of trust security | mortgagee, mortgagor, truster, trustee

Answer 343

A deed that is used to transfer real property to one's heirs without going through the probate process (probate)

Answer 344

Leaving personal property to an heir though a will | devise, legacy

Answer 345

A contact binding two or more parties | contract, unilateral contract

Answer 346

A document used to transfer personal property | deed, tangible

Answer 347

A security that covers more than one parcel of land | lot release

Answer 348

A real estate ad that does not indicate that a brokerage firm is involved

Answer 349

An illegal action usually concerning fair housing that creates panic selling for monetary gain (federal fair housing act, redlining, steering)

Answer 350

State laws regulating the sale of investment securities

Answer 351

The standard pre-printed language that exists in a contract | contract of adhesion

Answer 352

A buyer who is acting in good faith for valuable consideration (actual notice, constructive notice)

Answer 353

The value of an asset carried on the books of business | depreciation, tax

Answer 354

Anything of value given to make up the difference in equities between to properties exchanged (exchanging, mortgage relief)

Answer 355

Failure to perform a contractural obligation | default, specific performance suit

Answer 356

Updating the title report from the original report to the recording of the loan documents (preliminary title report)

Answer 357

A third party who, for a fee, acts as an intermediary in a business transaction (agent, commission)

Answer 358

Court case that over turned Pessy V Ferguson | Plessy V Ferguson

Answer 359

Monthly payment including principal, interest, taxes and insurance (amortization, level payment mortgage, P.I.T.I.)

Answer 360

An area of land that separates one type of zoning from another (zoning)

Answer 361

Special construction standards enforced though a permit | police power, zoning

Answer 362

The sale of a business which involves transfer of inventory | uniform Commerical code

Answer 363

Legal rights of real property ownership: possession, usage, transfer, encumber, exclusion (allodial sytem, feudal sytem)

Answer 364

A licensee who represents the buyer only in a fiduciary manner (agent, client, fiduciary)

Answer 365

A tract of land purchased or leased that serves as the building foundation for air rights (air rights)

Answer 366

Federal law regulating Commerical emails, providing the recipient an opt-out provision (FTC)

Answer 367

Income or sources of income | asset

Answer 368

the taxable gain received from the sale of a capital asset | basis, long term capital gain, short term capital gain

Answer 369

Any permanent improvements to real property | adjusted basis

Answer 370

The loss realized from the sale of a capital asset | capital gain

Answer 371

A method used to estimate the value of property by divining the net annual income by a capitalization rate (capitalization rate, income approach)

Answer 372

Also known as the income approach in appraising | capitalization rate, income approach

Answer 373

An overall rate of return which includes a return of investment on land, improvements and recapture (capitalization)

Answer 374

Laws based on an aggregate of previous court decisions | civil law, common law

Answer 375

Cash flow divided by the amount of capital invested | internal rate of return

Answer 376

Covenants, Conditions and Restrictions | deed restrictions

Answer 377

A governmental order directing the parties violating the law to refrain from further activity

Answer 378

An appraisal concept in which the current listing in a neighborhood set the the highest value (comparable, floor value, value)

Answer 379

A certificate from the Veteran's Administration that establishes the Veteran's eligibility for a V.A. guaranteed loan (V.A. Guarantee)

Answer 380

A document issued by the building inspector showing that a structure is ready for occupancy

Answer 381

A document given to the winner at a tax lien sale | Treasurer's Deed

Answer 382

A V.A. appraisal that states the maximum V.A. guarantee on a certain property (V.A. Guarantee)

Answer 383

The lien document given to the high bidder at a mortgage foreclosure sale (foreclosure, Sheriff's Deed)

Answer 384

A document issued by a title examiner stating the condition of title to a given parcel of property (abstraction of title, Torrens system)

Answer 385

A deed that conveys private property for public usage | dedication, deed, patent deed

Answer 386

A history of constructive notice as it pertains to a certain parcel of real estate (constructive notice, title, wild deed)

Answer 387

A reorganization under the bankruptcy code usually pertaining to corporations - the debtor remains in possession (bankruptcy)

Answer 388

A reorganization of a wager earner's assets - under the bankruptcy code - a trustee is appointed (bankruptcy)

Answer 389

Complete liquidation of a person's assets to pay liabilities. A trustee is appointed (bankruptcy)

Answer 390

Personal property - also called personality | bill of sale, personal property

Answer 391

A security device used for personal property | chattel, security agreement, uniform commercial code

Answer 392

Another name for a lease | leasehold

Answer 393

In the government rectangular survey system, a twenty-four mile square parcel contains 16 townships (government rectangular survey system, township)

Answer 394

The body of law that protects a party's private rights | case law, common law

Answer 395

Prohibits discrimination based on race | federal fair housing

Answer 396

The party the broker represents or the party who hires the broker and agrees to pay a fee upon performance (customer, dual agency, fiduciary, principal)

Answer 397

The day on which all terms and conditions of the contract and escrow have been met and the title is transferred. Close of escrow usually occurs when all necessary documents are recorded (constructive notice, escrow)

Answer 398

A claim on title that hinders it from being marketable | quiet title suit, quit claim deed

Answer 399

A history of insurance claims on a specific property | insurance

Answer 400

A person who signs a promissory note with another | joint & several liability, promissory note

Answer 401

An amendment to a formal will | formal will

Answer 402

Property used as security for a loan | deed of trust, hypothecate, mortgage

Answer 403

A secret agreement between two or more people for an illegal purpose against another (mutual assent)

Answer 404

Title that appears to be valid but due to a hidden fact is actually void (adverse possession, quit claim deed)

Answer 405

Institutions primarily involved in short term loans and demand deposits (F.D.I.C. Federal Reserve System)

Answer 406

The mixing of trust funds with the broker's personal funds | Conversion

Answer 407

The fees paid a broker resulting from a transaction | broker, procuring cause

Answer 408

Fees charged to tenants for the upkeep of the common grounds | gross leases net lease

Answer 409

A system of law that is based on custom and usage as opposed to statutes (statutory law)

Answer 410

A method of financing infrastructure and improvements in a development. Bonds will be sold and repaid through increased property taxes (property taxes)

Answer 411

Property acquired by the efforts of a husband and wife during their marriage, belonging to them equally (concurrent tenancy, curtesy, dower, legal life estate, undivided interest)

Answer 412

To compress additional soil to those uneven areas of a lot | construction

Answer 413

An appraisal method that compares similar properties to establish market value (ceiling value, market data approach)

Answer 414

Damages recovered in payments for actual losses | actual damages

Answer 415

An individual who is legally capable of entering into a binding agreement (incompetent party)

Answer 416

Interest paid on interest | interest, simple interest

Answer 417

Theory of land use developing around a central business district (axial theory, multiple nuclei, theory)

Answer 418

Two or more parties won undivided interest in the same property (community property, joint property, joint tenancy, tenancy in common)

Answer 419

The legal process of taking private property for public use | eminent domain, involuntary alienation

Answer 420

Individual ownership of real property limited to cubage, plus and undivided interest in the common ground (horizontal property regime, town house)

Answer 421

A principle which states that value in a given area can be obtained when all structures are in some way uniform (contribution, progression, regression, substitution)

Answer 422

That which is given in exchange for the transfer of property or service. One of the legal requirements for validity of a contract, deed, lease, or option. Example: the purchase price would be the consideration for the property (contract requirements, good consideration, love and affection, valuable consideration)

Answer 423

A short term loan based on draws during the construction process (draws, takeout loan)

Answer 424

When the inaction of the Lessor makes the use of the property unsuitable, the Lessee moves out. The tenant moves out through no fault of his own (actual eviction)

Answer 425

A term used when a document is recorded or printed in a public document (recording)

Answer 426

A regulatory agency charged with overseeing financial services offered to consumers (ability to repay, Dodd-Frank Act, qualified mortgage)

Answer 427

Future condition that must be met for a contract to be binding (counteroffer, executory contract)

Answer 428

A life estate that passes to the life tenants' heirs, pending the death of the person on whom the estate is based (life estate, Our Auto Vie, remainder estate)

Answer 429

A map showing the physical features of land using lines to indicate elevations (relief map)

Answer 430

An agreement based on a promise "consideration" to do or refrain from doing something (bilateral contract, covenant, unilateral contract)

Answer 431

A real estate transaction where the seller retains legal title to the property until final payment is made (agreement for sale, equitable title, vendee, vendor)

Answer 432

Terms of a contract are set by one party. The other party is instructed to "take it or leave it" (boiler plate)

Answer 433

The rate of interest stated in the contract | legal rate, usury

Answer 434

Rental amount due as specified in the lease | economic rent, negative leasehold, positive leasehold

Answer 435

Every valid end enforceable real estate contract must have the following requirements. Competent parties, in writing, legal description, mutual assent, legal consideration, legal purpose, signatures, and communication (statue of fraud)

Answer 436

Any improvement to property is only worth its market value, not the cost of the improvements (anticipation, conformity, substitution)

Answer 437

A life estate created for the life of some stated natural person (natural person)

Answer 438

Real estate loans that are not insured by any governmental agency (federal housing administration (F.H.A.) V.A. guarantee)

Answer 439

In real estate law, the unlawful use and misappropriation fo another's personal property (commingling)

Answer 440

Transfer of title to real property. Such transfer is usually evidence by a deed (deed)

Answer 441

A broker who works with and through the listing broker | buyer broker, multiple listing service, subagent

Answer 442

Ownership of stock in a corporation which gives the holder the right to occupy a certain unit - a long term proprietary lease (condominium, town house)

Answer 443

The written authorization of the board of directors of the corporation to act in a certain manner (corporation, legal person)

Answer 444

A legal person crated by law which is owned by stockholders who act as one (corporate resolution, legal person)

Answer 445

Real property such as land and fixtures | incorporeal

Answer 446

A deed that corrects an error on a previously recorded deed

Answer 447

In the government rectangular survey system, the lines that compensate for the curvature of the earth (check lines, governmental rectangular survey system)

Answer 448

The final step in an appraisal that weights (usually by percentage) the comparable used to arrive at a final estimate of value. Also called reconciliation

Answer 449

An appraisal process that estimates the value of property by using replacement or reproduction costs minus depreciation plus the value of the land (depreciation, income approach, market data approach, replacement cost, reproduction cost, appraisal)

Answer 450

A new offer made in response to an original offer | contingency

Answer 451

A promise made between toor more parties, usually pertaining to contract and deeds (bargain and sale deed, bilateral contract, unilateral contract)

Answer 452

The Grantor promises that he has revealed all items that burden the property (covenants in a deed)

Answer 453

The seller of a business agrees not to open a like business for a specific period of time

Answer 454

A promise that the Grantee has the highest claim to ownership (covenants in a deed)

Answer 455

The Grantor promises that he has possession of the property and has the right to convey it (covenants in a deed)

Answer 456

Promises in a deed made by the grantor for the protection of the grantee, usually found in bargain and sale and warranty deeds (covenant agains encumbrances, covenant of quiet enjoyment, covenant of seizin)

Answer 457

A husband's right or interest in his wife's property upon her death (dower, legal life estate)

Answer 458

Usually referred to as the Buyer or Prospect | client

Answer 459

Forgiveness of an obligation, usually results in a taxable event

Answer 460

The payment made to satisfy a mortgage loan, including principal and interest (amortization)

Answer 461

Party who died | intestate, testate

Answer 462

The voluntary transferring of private property for public usage (cession deed)

Answer 463

The legal written document used to transfer ownership of real property (general warranty deed, quit claim deed, special warranty deed)

Answer 464

An out of court settlement whereby a lender accepts the deed from the borrower - friendly foreclosure (foreclosure)

Answer 465

An instrument issued by the trustee when the debt secured by a deed of trust its paid in full (defeasance clause, satisfaction of mortgage)

Answer 466

Security for a debt using a neutral third party (Trustee) who holds legal title (beneficiary, deed of reconveyance, trustee, trustor)

Answer 467

Limits placed on public record by the Grantor that affects property usage by future owners (CCR's, reservations)

Answer 468

Failure to copy with a contractual agreement | breech of contract, foreclosure, forfeiture, specific performance suite

Answer 469

Clause stating that when a condition is met, the Lender's claim has been nullified and requiring the lender to issue a satisfaction piece (deed of reconveyance, satisfaction of mortgage)

Answer 470

A fee simple estate subject to certain limitations imposed by the grantor (fee simple conditional, fee simple determinable)

Answer 471

Loss of value due to lack of maintenance | depreciation, curable, incurable, physical depreciation

Answer 472

The legal right of lenders though court action to collect from a borrower the remaining debt still owed after a foreclosure (foreclosure)

Answer 473

The final transferring of a deed from Grantor to Grantee. A prerequisite for valid conveyance (actual deliver, escrow delivery)

Answer 474

The convening of an interest in property by means of a lease. A giving up of some interest but not all rights in ownership (lease)

Answer 475

The loss of value due to any and all causes. Functional, economic, physical, social obsolescence (economic depreciation, functional depreciation, physical depreciation)

Answer 476

A effect in real property that is economically feasible to correct (economic depreciation, functional depreciation, physical depreciation)

Answer 477

A defect in real property that would not be economically feasible to correct (economic depreciation, functional depreciation, physical depreciation)

Answer 478

For income tax purpose, a deduction taken for an investment | economic life, straight line depreciation

Answer 479

Distribution of property to heirs when one dies intestate | escheat, intestate, probate

Answer 480

The broker who is responsible for day to day operation of the business (broker, cooperating broker)

Answer 481

The conveyance of real property through a will | bequest, devisor, legacy

Answer 482

The one who receives real property through a will | devise

Answer 483

The person who transfers real property through a will | bequest, legacy

Answer 484

HUD approved lenders that approve FHA loans by themselves | HUD

Answer 485

The direction in which a residential community appears tp be developing (axial theory, concentric theory, multiple nuclei theory_

Answer 486

A document signed by a park to disavow any interest in a particular property (quit claim deed)

Answer 487

A loan charge in addition to interest that increases the lender's yield (A.P.R., Regulation Z, Yield)

Answer 488

Failure to give equal treatment - this concept is usually referring to a protected class of people

Answer 489

Landlord's right to seize a Lessee's personal property for past due rent. (commercial property only.) Unlawful in residential rental properties (actual eviction)

Answer 490

A recorded judgment | constructive notice

Answer 491

Document stating that the death of the Grantor does not terminate a valid escrow (escrow delivery)

Answer 492

A federal law that places regulations on financial institutions (ability to repay, Dodd-Frank Act, qualified mortgage)

Answer 493

Tax rate per $100 assessed value | mill rate, tax rate

Answer 494

The parcel of land that benefits from the easement against the servant estate (easement appurtenant, serpent state)

Answer 495

A wife's right in her husband's property upon his death | curtesy, lega life estate

Answer 496

A change from a higher to a Lowe rosining classification, such as a Commerical to residential (zoning)

Answer 497

Monies released under the terms of an open-ended loan | construction loan, obligatory advances

Answer 498

A transaction that involves to principals. When a broker represents both buyer and seller (agency, client, principal)

Answer 499

The use of good faith and a degree of care required to perform one's obligations

Answer 500

The Lender's right to call the entire loan balance due upon resale of the property (acceleration clause, alienation clause)

Answer 501

The use of force in obtaining an agreement | menace, undue influence, voidable

Answer 502

Advance money given by a buyer to show good faith in a purchase agreement (equitable interest)

Answer 503

The right one has to use the land of another for a specified purpose (easement appurtenant, easement by prescription, easement in gross, encumbrance)

Answer 504

An easement that is attached to and transfers with title to real property (easement, dominate estate, serpent estate)

Answer 505

An easement created by law, usually to have ingress and egress to land-locked property (easement, ingress and egress)

Answer 506

The legal process of acquiring an easement due to adverse use that is open, constant and notorious for a period of time (adverse possession, easement)

Answer 507

A personal right given to an individual or business to sue the land of another. This privilege is irrevocable (easement appurtenant)

Answer 508

The edge of a roof the projects beyond a building | rafters

Answer 509

Loss of value due to exterior forces beyond the property owner's control, which is always incurable (functional depreciation, physical depreciation)

Answer 510

In appraisal, the number of years a property will contribute value to the land (salvage value)

Answer 511

The amount of rent a property could or would bring in an open market at a given time (contact rent, excess rent)

Answer 512

The age of a property based on its appearance | actual age, deferred maintenance

Answer 513

The view of the property as seen from the street | setback

Answer 514

To improve the item described by adding factious details, Overstating one's opinion (Misrepresentation, puffing the goods)

Answer 515

The pre agreed right that the seller or lessee has tu return to the land to harvest crops (industrial fruit)

Answer 516

The right fo the government to permanently take private property for public use with just compensation (condemnation suite)

Answer 517

Legislative authority extended to municipal governments to enact zoning laws (police power)

Answer 518

Illegal intrusion upon another's real property - usually physical in nature

Answer 519

Any lien, liability, or restriction upon ownership of real estate that will lessen its value (deed restriction, easement, encroachment, lien)

Answer 520

Environmental Protection Agency - A federal agency that sets standards on environmental issues

Answer 521

A law that states if a contract must be in writing, Then the agent's authority to act for a principal must also be in writing be enforceable, then any changes or alterations must also be in writing

Answer 522

The buyer's interest in property at the signing of a purchase contract. Vendee's interest in an agreement for sale (earnest money, forfeiture)

Answer 523

The mortgagor's chance to redeem the property prior to sheriff's sale by paying the entire debt (acceleration, statutory period of redemption)

Answer 524

The Vendee's right to ownership of real property. (Vendor sill retains legal title) (agreement for sale, vendee, vendor)

Answer 525

"Dollar Value" interest remains after loans re deducted from current property value (equity build-up, lien)

Answer 526

The increase of equity due to the reduction of the loan amount (principal)

Answer 527

The gradual wearing away of lan doh acts of wind or water | accretion, avulsion

Answer 528

A contrat clause that allows the interest to increase upon loan assumption (assumption of mortgage)

Answer 529

The buyer is not obligated to buy if the FHA appraisal is less than the contract price (amendatory clause)

Answer 530

The right of the state to take property of the deceased who dies without a will and has no heirs after a statutory period of time (government rights, intestate)

Answer 531

Depositing documents with a neutral third party until the terms of an agreement are met (close of escrow, doctrines of relation back, escrow agent)

Answer 532

A third party that acts on instructions of the buyer and seller, when all terms and conditions aren't, the agent will close the transaction' (close of escrow, doctrine of relation back, dual agency, escrow delivery, interpleader)

Answer 533

The act of delivering the deed to a third party with instructions to deliver said deed to the grantee after all conditions are met (actual delivery)

Answer 534

A right or interest one has in all property real and personal (freehold, less than freehold)

Answer 535

A right in interest one has in real property | fee simple, freehold, legal life estate, less than freehold

Answer 536

A legal doctrine which prohibits a person from going back on previous facts or acts of conduct (estoppel certificate)

Answer 537

A document used to verity the terms and balances of existing leases or loans

Answer 538

The method used to show one's proof of ownership | certificate of title, title insurance, Torrens system

Answer 539

Contact rent that exceeds the economic rent | contract rent, economic rent

Answer 540

A transaction where like properties are traded, usually for tax benefits (boot, mortgage relief, tax deferment)

Answer 541

Appointing one broker in a listing agreement with the owner reserving the right to sell the property without paying a commission (exclusive right to sell)

Answer 542

Appointing one broker in a listening agreement, who will be paid regardless of who sells the property, including the owner (bilateral contract, exclusive agency listing, listing agreement)

Answer 543

A clause in a document that relives the Landlord of any blame or guilt as relating to the actions of the Tenants. An Escape Clause (hold harmless clause, indemnify)

Answer 544

A contract in which all terms and conditions have been met | executory contract

Answer 545

A person appointed in a Will to carry out its provisions | administrator, testate

Answer 546

A contract in which all terms and conditions have not yet been met (contingency, executed contract)

Answer 547

A contract in which the terms are specifically stated either orally or in writing (statue of frauds)

Answer 548

A title insurance policy that normally covers items in the public record plus questions of survey and unrecorded mechanics liens (A.L.T.A.)

Answer 549

Federal Deposit Insurance Corporation. Insures deposits for the depositor up to a certain dollar amount (federal reserve system)

Answer 550

An F.H.A. appraisal based on a future loan commitment. The property has qualified but a buyer has not yet qualified (F.H.A. -firm commitment)

Answer 551

A final statement that F.H.A. will insure a specified loan | F.H.A. - conditional commitment

Answer 552

F.H.A. insures home improvement loans | federal housing administration, M.I.P.

Answer 553

F.H.A. insures home 203B loans | federal housing administration, M.I.P.

Answer 554

Originally established F.N.M.A. | F.N.M.A., secondary market

Answer 555

Federal Home Loan Mortgage Corporation (Freddie Mac) active in the secondary mortgage market (F.N.M.A., G.N.M.A., secondary market)

Answer 556

Federal National mortgage Association (FannieMae) purchases paper from primary lenders (F.H.L.M.C., G.N.M.A., primary lenders, secondary market)

Answer 557

the front of a building; the part seen from the street | elevation

Answer 558

A protected class under the Federal Fair Housing Law - A family is one or more persons under the age of 18 years, living with a parent or guardian (federal fair housing act 1988)

Answer 559

Law enacted by Congress that prohibits discrimination by race, color, religion, national origin, sex, familial status, and handicap. The las relates primarily to the sale or lease of residential rental property

Answer 560

Prohibits discrimination based on race, religion, color, creed, national origin and sex

Answer 561

Prohibits discrimination based on handicap and familial status - these times were added to the 1968 act

Answer 562

F.H.A. - insures lenders against loss by requiring the borrower to pay a mortgage insurance premium (M.I.P.)

Answer 563

Regulatory agency for Federally charted Commerical banks | commercial banks, F.D.I.C.

Answer 564

The highest from of ownership under the alluvial system | allodial system, freehold

Answer 565

If previously agreed conditions are violated, the Grantor must take action to terminate the Grantee's interest in property (not automatic termination) (defeasible fee, fee simple determinable)

Answer 566

A fee interest in real estate that may be automatically terminated if certain circumstances are violated (Defeasible fee, fee simple, fee simple conditional)

Answer 567

A freehold estate that may terminate when and if the Grantor's specified heirs die. "Unlawful in most states" (feud system)

Answer 568

A federal agency that coordinates disaster relief, also designates flood areas and creates flood maps

Answer 569

A right of land ownership remain white the king | allodial sytem

Answer 570

Fair Isaac Company - calculates credit scores

Answer 571

The trust and confidence an agent owes a principal in an agency relationship (agency, principal)

Answer 572

A document recorded to protect a creditor's interest in personal property (bulk transfer, security agreement, uniform commercial code)

Answer 573

Foreign Investment Real Property Tax Act

Answer 574

A party who has the first opportunity to meet an offer to either by or lease a property (executory contract, option, unilateral contract)

Answer 575

A long narrow crack in the earths surface

Answer 576

Personal property that is now affixed and is considered real property (annexation, personal property, trade fixture)

Answer 577

A loan payment plan in which the payments increase over a set number of years (variable rate mortgage)

Answer 578

An area of low-lying ground adjacent to a stream that is subject to flooding (flood way)

Answer 579

A channel for diverting flood water | flood plain

Answer 580

An appraisal concept which states that the sales price of comparable properties set the lowest market price (ceiling value, comparable)

Answer 581

A legal action that a landlord can take if the existing occupant refuses to leave (holdover Tennant)

Answer 582

An action by which property used as security is sold to pay the debt (deed in lieu of foreclosure, deficiency judgement, equitable period of redemption, reinstatement period, statutory period of redemption)

Answer 583

The losing of equity one has in a property due to nonperformance of an obligation - such as in an agreement for sale. The process by which a Vendor retakes the property from the Vendee due to default by the Vendee (agreement for sale, equitable interest)

Answer 584

A written will that is written, signed and witnessed | codicil, holographic will, nuncupative will, testate

Answer 585

The supporting portion of a structure on which all else rests (monolithic slab)

Answer 586

Irregular sections due to the curvature of the earth. There are 11 fractional and 25 full sections in a township (section, township)

Answer 587

Intentional deception that, when relied upon, causes financial loss or personal injury (collusion, misrepresentation, puffing the goods)

Answer 588

An estate held in fee simple or for life - no predetermined time for termination (conventional life estate, fee simple)

Answer 589

When asbestos particles become air-borne | asbestos

Answer 590

A ratio that indicates what petition of an individual's income is used to make mortgage payments (back end ratio)

Answer 591

An asset that cannot be easily converted into cash without taking a loss (liquid asset)

Answer 592

Federal Trade Commission - regulates the CAN SPAM ACT | can spam act

Answer 593

Physical features within the property lines that are obsolete and no longer desirable. May be curable or incurable (depreciation, appraisal, economic or physical depreciation)

Answer 594

A fee paid to the V.A. to guarantee a V.A. loan | V.A. guarantee

Answer 595

Government National Mortgage Association (Ginnie Mae) active in the secondary mortgage market (F.H.L.M.C., F.N.M.A., secondary market)

Answer 596

A pitched roof with two sloping sides

Answer 597

A court directive to the party who is holding the assets of another to freeze said assets (attachment, specific lien)

Answer 598

An agent having the power to perform any and all acts on behalf of a principal as expressed in a legal document (agency, limited agent, universal agent)

Answer 599

A lien that encumbers both real and personal property | lien, specific lien

Answer 600

Each partner is responsible and liable for the total profit or loss of the operation regardless of the initial investment (limited partnership)

Answer 601

A conveying deed in whit the grantor states that he or she will forever guarantee the title of the real property (special warranty deed, warranty forever, warranty of further assurances)

Answer 602

A deed conveyed with love and affection as the consideration | consideration, good consideration, out claim deed

Answer 603

Love and affection given in exchange for real property | consideration, gift deed, valuable consideration

Answer 604

An estimate of all anticipated closing costs regarding a residential transaction. This estimate is required to be given to all buyers by the lender under R.E.S.P.A. guidelines (regulation Z)

Answer 605

The intangible value of a business due to the habit of patronage. Goodwill may be depreciated for accounting purposes (covenant not bo compete)

Answer 606

In a government rectangular survey system, those irregular sections due to curvature of the earth or acts of nature (check lines, correctional lines, fractional sections, government rectangular survey system)

Answer 607

Taxation, Escheat, Eminent Domain, Police Power | enabling legislation

Answer 608

A government method of surveying land located by using a principal baseline and principal meridian (base line, meridian, section, township)

Answer 609

A else that will go up in rent at specified intervals | index lease, percentage lease

Answer 610

A clause that indicates something was once allowed and may still continue despite charges in the law (non-confirming use, variance)

Answer 611

The transferring of real property by deed | deed, grantee, grantor

Answer 612

The person who receives an interest in real property via a deed (deed, grantor)

Answer 613

The words in a deed that state, "I hereby grant and convey..." (habendum clause)

Answer 614

The person who conveys an interest in real property via a deed (deed, grantee)

Answer 615

A lease where the lessor is responsible for all expenses | net lease

Answer 616

A figure used that, when multiplied by the annual gross rent, will estimate the property value (capitalization rate)

Answer 617

The total potential of all income that can be derived from an investment property (adjusted gross income, net operating income)

Answer 618

A lease for land only | subordination clause

Answer 619

The classification of all underground water except for underground streams (surface water)

Answer 620

One appointed by the courts to handle the affairs on an incompetent party (incompetent party, personal representative)

Answer 621

Development of Housing and Urban Development | federal housing administration, FHA, GNMA

Answer 622

The degree, quantity of quality of the estate conveyed | deed, life estate

Answer 623

A protected class under the Fair Housing Law; a handicap is considered an impairment that substantially limits life's activities (federal fair housing act 1988)

Answer 624

A tenant who remains in possession of the property after lease expiration (actual eviction, tenancy at sufferance)

Answer 625

A legal right of a homeowner to protect a portion of his equity against a forced sale (abandonment of homestead, legal life estate)

Answer 626

Hand-written will that is signed bu the maker but does not require witnessing (formal will, nuncupative will, will)

Answer 627

A word used in appraising that describes similar or like properties (conformity)

Answer 628

Condominium - the owner of the unit only has cubage rights; air rights and sub-surface right are not included (town house)

Answer 629

To pledge property as collateral and still retain possession of the pledge property (deed of trust, mortgage)

Answer 630

An expression of intent to do something, not a binding agreement (unenforceable)

Answer 631

An agency create by the actions or words of the parties involved (agency, ostensible authority)

Answer 632

An amount held by the lender to pay the taxes and insurance | P.I.T.I.

Answer 633

Irrigation Non Expansive Area | assured water supply

Answer 634

Incomplete (non perfected) - additional steps must be taken to strengthen the claim (community property, mechanic's lien)

Answer 635

An appraisal process that estimates the value of income property by converting annual net income into value (adjusted gross income. capitalization, net operating income)

Answer 636

One who is not legally qualified to manage his or her won affairs due to age, mental capabilities or legal action) (competent party, guardian, infancy)

Answer 637

The rights accompanying ownership of property | easement, hereditament

Answer 638

An agreement to hold harness another for damages | exculpatory clause, hold harmless clause

Answer 639

A lease that is based on a certain price index such a the consumer price index food in commercial leases (graduated lease)

Answer 640

A rate in a variable rate loan that is tied to a T-Bill, 11th District ur U.S. Cost of Funds (variable rate mortgage)

Answer 641

Fruits or crops that are produced on a property for income - personal property (emblements)

Answer 642

A person who is under the legal age (usually under 18 years) | incompetent party, majority

Answer 643

The right to enter and exit a parcel of land | easement, landlocked, right of way

Answer 644

A tax method of reporting only the amount of income actually received as it is received (tax deferment)

Answer 645

The rights that accompany personal property | goodwill, tangible

Answer 646

A federal registration system when 25 or more lots are offered for sale or leased inter-state

Answer 647

Rent paid for the use of money | compound interest, simple interest, usury

Answer 648

Payment consists of interest only and no repayment of principal (amortization, straight note, term loan)

Answer 649

A short term loan sometimes called a gap or bridge loan | construction loan, take out loan

Answer 650

A rate of discount that is calculated on the basis of projected cash flows from the initial investment

Answer 651

A third party (court) who is called upon to settle a dispute, usually in a escrow situation (escrow, escrow agent)

Answer 652

A person who dies without a will | descent, testate

Answer 653

The transferring of ownership agains one's will | avulsion, condemnation sute, foreclosure

Answer 654

A lien placed on property whiteout the owner's permission or by act of law (mechanic's lien, property tax, statutory lien)

Answer 655

One party or all parties together can be held liable for the debt

Answer 656

Co-ownership that features the right of survivorship and requires the for unities: Possession, Interest, Tile, Title (concurrent tenancy, unites of joint tenancy)

Answer 657

The horizontal supports that hold up a floor or ceiling | stud

Answer 658

A court case that prohibits discrimination by race both in private and governmental properties (civil rights act of 1866)

Answer 659

An involuntary lien on both real and personal property - a general lien (general lien, specific lien)

Answer 660

Any security agreement having a prior after the first mortgage (subordination clause)

Answer 661

A form to report income or loss in a business, partnership, or trust

Answer 662

The legal time has expired to file a valid claim | statue of limitations

Answer 663

Contact where the seller finances the buyer's purchases of realty and retains legal title. Vendee has Equitable title (equitable title, forfeiture, vendee, vendor)

Answer 664

A parcel of land having no ingress or egress without crossing over another's property (easement by necessity, ingress and egress)

Answer 665

One who owns real property but transfers a leasehold interest to another with the reversion right (lease, leasehold. lessee, lessor)

Answer 666

A legal relationship in which one is hired to represent another with trust and confidence. The party hired is reffed to as the agent (agency, buyer broker, fiduciary, listing agreement)

Answer 667

Real Estate is subject to the laws of the state in which it is located

Answer 668

A contract requirement stating that a valid contact must be for an item of purpose that is legal in the eyes of the law (contact requirements)

Answer 669

An agreement giving possession and use of property in return for a specified consideration (leasehold, tenancy at will, tenancy for years, tenancy from period to period)

Answer 670

The Lessee's right to use property for a specified period of time (lease, less than freehold)

Answer 671

Money or personal property left to another through a will | bequest, devise, will

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