Glossary Reviews Flashcards
All property other than real estate is known as _____
Personal Property
Real Estate consists of three things: land, improvements, and _____
Rights
If a seller is taking a fixture, it must have been ______ from the purchase contract.
excluded
Ownership of rights to a creek is known as _______ rights
riparian
When articles of personal property, including landscaping, are permanently attached to the improvements, the become ________
fixtures
Before a new building can be inhabited, a ________ is required
certificate of occupancy
Permission to vary from strict compliance with zoning requirements may be obtained in the form of a _______
variance
When a previously established use does not comply with the requirements of a new zoning ordinance, it may be allowed to continue as a _________
nonconforming use
Townships, sections, and meridians are used in the _________ form of legal description
rectangular (government) survey
A legal description that uses compass degrees is _______
metes and bounds
The type of legal description used in most urban areas is __________
lot, block, and subdivision
A _________ may be used to separate two incompatible zoning uses
buffer zone
Real estate and fixtures are transferred with a _______
deed
Personal property is transferred with a _________
bill of sale
If the buyer is keeping the seller’s personal property, it must be _______ in the purchase contract.
included
List two ways the government can acquire privately held land:
- Escheat
- Eminent domain
If there is a conflict between a local, state, or federal rule, the _________ will apply
strictest rule
A right of use or enjoyment that one person has in the lands of another for a specific purpose is an _______
easement
A tenant’s right to possess real estate for the term of a lease is a __________
leasehold estate
A tree limb that overhangs into a neighbor’s yard is an example of an _________
encroachment
An easement is not _______, but a license is
revocable
A claim that one person has against the land of another to secure payment of a debt is a _______
lien
A person who has not beed paid for work performed on real property may record a ____________
mechanic’s lien
A party wall or a shared driveway is an example of an easement _______
appurtenant
The right of an owner to occupy a parcel of real estate forever is a ___________
fee simple absolute
The type of lien that takes priority over all others is the ____________ for property taxes (also known as a property tax lien)
government lien
As part of their right to govern land use under police power, local municipalities enact and enforce ___________
zoning ordinances
A freehold estate is an estate of ownership with an
indefinite duration
Leasehold estates are estates of possession with an _______
definite duration
Zoning laws are set at a ___________
local level
Deed restrictions are created as a form of __________ over land use
private control
A written legal document by which ownership of real property is transferred from one party to another is a _______
deed
The two parties to a deed are the owner _______ and the buyer _______
grantor
grantee
In order to convey title, a deed must be signed by the owner _____________
grantor
Title does not pass to the grantee until the deed is __________
delivered and accepted
Assurance to grantees that they will not be disturbed by someone else with a lawful interest in the property is the covenant of ________
quiet enjoyment
The type of deed that is considered the best deed for a grantee is a _________
general warranty deed
A deed that conveys whatever interest in the property that grantor holds at the time of conveyance, has no liability for the grantor, and contains no covenants or warranties is a __________
quitclaim deed
A deed with the warranty of seisin that applies only to the period the grantor owned the property is a ____________
special warranty
Property owned by one person is said to be owned in ______
severalty
A form of concurrent ownership in which all owners have equal shares in the property and the right of survivorship is _______
joint tenancy
An undivided interest in a resort condominium as a tenant in common for a specific period each year is a ________
time-share
A _________ has a will and knows who will inherit her real and personal property
testator
_________ does not require co-owners to go through probate to obtain title
Joint tenancy
A person who holds stock in a building owned by a corporation owns the rights to a __________
cooperative
The priority of a recorded instrument is determined by the date of _______
recording
When an attorney or title insurance company traces the ownership of a parcel of land to the beginning of its recorded history, the process is known as a _________
title search
A recorded notice stating that a pending lawsuit may affect title to a particular property is a ________
lis pendens
A document that summarizes all recorded interests affecting title to a given parcel of land is an _________
abstract or title
All the documents that comprise the history of the title are the _________
chain of title
Protection against incomplete or defective records of the title to land can best be obtained by securing _______
title insurance
In many cases it is better to __________ asbestos than to ______ it
encapsulate
abate
A defect or problem that is not covered by standard or extended title insurance is an __________
exception
When prorating, an item paid in advance will be a _______ to the buyer
debit
Defects in title are covered only if they are found ______ closing
after
An item paid is arrears will be a _____ to the buyer
credit
Most deeds to be recorded must be ______
notarized
A new loan will show on the settlement statement as a buyer ______
credit
Shared items, such as property taxes and water bills, will be ________ between the buyer and the seller
prorated
______ is an odorless, colorless gas that, if found, is often mitigated by adding ventilation
Radon
A contract whose terms have been explicitly declared either verbally or in writing is an ______ contract
express
When only one party to the contract makes a promise, the result is a _______ contract
unilateral
A contract in which one party has the right to void the contract is a ______ contract
voidable
A contract created by the actions of the parties is an _______ contract
implied
A contract with a minor will be ________
voidable
A lease contract in which the tenant pays rent only is a ______
gross lease
The protection for buyers in a contract that allows them to get their earnest money back if they cannot qualify for a loan is known as a _______
contingency
A unilateral contract in which Buyer Allen has the right to purchase a property from Seller Betty if Buyer Allen chooses to do so is an _______
option
A party attempting to enforce an oral executory contract for the purchase of real estate would be stopped by the _______
statute of frauds
___________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given
Mutual agreement
The party who makes an offer to another is known as the _______
offeror
An accepted offer becomes binding on the offeror upon ___________
communication of acceptance
Actual knowledge to enter into a contract by intentionally deceiving a party is ______
fraud
Something of value given in exchange for something else of value is __________
consideration
__________ is not consideration but may be required as part of liquidated damages in a purchase contract
Earnest money
Additional material attached to and made part of an offer is an _________
addendum
To modify a written contract, but parties must sign an ________
amendment
The buyer has equitable title in an _________ contract
executory
The right of parties to a contract to sue each other to perform that contract terms is _________
specific performance
When the seller keeps only the earnest money or other things of value of a buyer who is in default, the contract remedy is ____________
liquidated damages
The process of converting a future income stream into an expression of present value is _______
capitalization
The cost of replacing an improvement with another of similar quality but not an exact replica is _________
replacement cost
Loss in value due to causes external to the property is _________
economic obsolescence
A method of valuing a property by comparing the subject property to similar properties that have recently sold is the _______ approach
market data
Demand, utility, scarcity, and transferability are essential elements of _______
value
An appraisal is an ______ of value
estimate
To obtain the value using the capitalization approach, an appraiser would divide the _________ by the capitalization rate
net operating income
All the approaches to value use the principle of ______
substitution
An appraiser calculates accrued depreciation in the ________
cost approach
When an appraiser determines the accrued depreciation, outdated electrical fixtures are considered __________
functional obsolescence
An appraiser estimating operating expenses is using the ___________
income approach
The market data approach is also known as ________
sales comparison
The step in which the appraiser determining the value of a shopping center would use the ___________
income approach
The best approach to determine that value of a library would be the __________
cost approach
The borrower’s right to cure the default and stop the foreclosure sale is __________
equitable redemption
An __________ would not be recommended for a retiree on a fixed income
ARM loan
The clause that appears in both the note and the mortgage that allows the lender to demand immediate payment of the entire debt if the borrower defaults is an ______________
acceleration clause
A loan that is repaid in one single lump sum at the end of its life is called a straight loan or ________
term loan
A loan in which payments are scheduled so the entire principal balance is repaid by the maturity date is _____________
fully amortized loan
A disadvantage of a term or partially amortized loan is the final _________ payment
balloon
A ___________ is used when more than one property is pledged as security for a single loan
blanket mortgage
A mortgage given by the purchaser to the seller in partial payment for the property is a __________
purchase money mortgage
The difference between a property’s market value and the debts against it is _______
equity
A loan that allows a borrower to make smaller payments of interest and principal but has a balloon payment at the end is a _____________
partially amortized loan
If a borrower sells the property and loan without permission of the lender, the clause that allows the lender to call the loan due and payable is the ________
alienation clause
Points charged by lenders are computed as a percentage of the ________
mortgage amount
The higher the loan-to-value ration, the higher the _______
leverage
A contract that gives a buyer the right to occupy the property now and receive a deed after payment in full of the purchase price is a _________
contract for deed
The mortgage makes payments to the mortgagor in a _______
reverse mortgage
A uniform measure of the cost of credit that includes interest and finance charges is known as the _________
annual percentage rate
Lenders who define an area in which they will not lend as means of discrimination are _________
redlining
Loans that require the owner to occupy and have no prepayment penalty are _______ and ______
FHA
VA
Channeling buyers away from particular neighborhoods based on their ethnic background is illegal and is called ______
steering
The market where loans are originated for consumers is known as the ___________
primary market
An agency of the federal government that guarantees loans made to veterans is the ______
VA
A government agency that insures (but does not make) mortgage loans in the ______
FHA
Refusing to make a mortgage loan to an 80-year-old person is a violation of _________
ECOA
Loans are bought and sold to support consumer loans in the ____________
secondary market
ECOA adds protection from discrimination based on _______, which is not protected under fair housing law.
age
When HUD receives a complaint, the first step HUD takes is to _______ it
investigate
Senior housing communities are allowed to discriminate based on __________
familial status
The _____________ prohibits discrimination based on race
Civil Rights Act of 1866
A real estate salesperson or broker advertising that the “neighborhood is changing” might be guilty of ________
blockbusting
Insurance used in high LTV conventional loans that gives lenders additional protection in case of default is _____
PMI
One who employs an agent to act on her behalf is a _______
principal
The person employed by a principal to act on his behalf is an _______
agent
Commissions charged by brokerage firms for their services are set by ________
negotiation
A listing contract in which the owner agrees to pay the agent a commission regardless of who sells the property during the listing period is an _____________ listing
exclusive right-to-sell
A buyer representation contract that appoints a broker as the sole agent to find a property for a buyer, but allows the buyer to find her own property without paying a commission, is an ___________
exclusive agency
A listing that allows an owner to list concurrently with more than one broker is an ______ listing
open
The relationship of a broker to his principal is a ________ relationship
fiduciary
When a broker serves as the agent for both the buyer and the seller, it is a _______ agency
dual
Earnest money must be deposited in the broker’s ________
trust account
Depositing a client’s money in the same account with the broker’s money (which is illegal) is __________
commingling
Using trust funds for personal reasons is ___________
conversion
The responsibilities of a property manager are to ________ and ____________
maintain value
seek well-qualified tenants
A special agent can become a general or universal agent through a ____________
written agreement
The buyer’s broker should deliver the earnest money to the listing broker __________ after acceptance of the offer
acceptance
Real estate commissions charged by a firm are determined by the ___________
brokerage firm
