Key Terms

Question 1

Abstract of title

Answer 1

An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances

Question 2

Acceleration clause

Answer 2

A clause within a security instrument, such as a mortgage or a deed of trust, that makes the entire loan amount due immediately upon default of the loan

Question 3

Accession

Answer 3

The right to everything that one’s property produces, including what’s added onto it, whether that’s natural or through human action

Question 4

Accretion

Answer 4

The process in which land area increases due to soil being added onto it by natural forces

Question 5

Acre

Answer 5

Measurement of land equal to 43,560 square feet

Question 6

Actual eviction

Answer 6

Legal process where someone is removed from the property and forbidden to re-enter

Question 7

Actual notice

Answer 7

a party is directly given, or notified of, information that pertains to them

Question 8

Ad valorem taxes

Answer 8

A tax calculated according to the assessed value of a piece of real estate

Question 9

Adjustable rate mortgage (ARM)

Answer 9

A mortgage with an interest rate that gets adjusted based off of fluctuations in the cost of money

Question 10

adverse possession

Answer 10

involuntary transfer of title from an owner who does not use or inspect their land for a number of years to another person who has some claim to the land and takes possession

Question 11

agency agreement

Answer 11

mutual understanding between two parties that authorizes another party to act on their behalf

Question 12

agent

Answer 12

individual with authority to act on behalf of another, must have state license

Question 13

air rights

Answer 13

the rights to use the airspace above the surface of the land

Question 14

air space

Answer 14

the area above ground that is owned along with a property. could include space above land or space in a apartment unit

Question 15

alienation

Answer 15

the transfer of ownership (title) to real property. May be voluntary or involuntary

Question 16

Americans with Disabilities Act

Answer 16

a federal civil rights law passed in 1990, which prohibits discrimination against, and creates standards for , people with disabilities

Question 17

amortization

Answer 17

the process of paying off a debt/mortgage in regular installments based on a fixed payment schedule

Question 18

Annual percentage rate (APR)

Answer 18

how much the borrower will pay in interest over the course of a year

Question 19

antitrust laws

Answer 19

laws designed at preventing unfair or anti-competitive practices such as price fixing, collusion, monopolies, etc

Question 20

appraised value

Answer 20

an estimation of a property’s value as of a specific date, performed by a certified appraiser

Question 21

appreciation

Answer 21

the increase in value of a property

Question 22

appurtenances

Answer 22

rights that run with real property ownership ; most often transferred with the property, but possible to sell separately

Question 23

arrears

Answer 23

a payment that occurs at the end of a period to compensate for charges accrued during that time

Question 24

asbestos

Answer 24

a mineral fiber that is commonly used in insulation but if airborne or inhaled, can cause severe respiratory health issues

Question 25

assemblage

Answer 25

the combining of multiple contiguous (touching) pieces of real property into a single tract of land, often resulting in an increase in value

Question 26

assessed value

Answer 26

the value placed on a property by a government unit for use in calculating taxes

Question 27

assessment

Answer 27

the determination of the value of a property for tex purposes

Question 28

asset

Answer 28

item of value

Question 29

assignment

Answer 29

the transfer of rights and obligations in a contract from one party to another