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Things To Know On The Real Estate Exam > Keyword Outline > Flashcards

Keyword Outline Flashcards

1
Q

Bundle of rights

A

Write an interest of having title, such as possession control, exclusion, sell, and of enjoyment. 

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2
Q

Real property

A

Goes with the property
Generally immovable

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3
Q

Personal property

A

Goes with the person
Movable

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4
Q

Chattel real

A

Personal property

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5
Q

Fixture

A

Was personal, and now real.

MARIA

Method, adaptability, relationship, intentions, agreement.

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6
Q

Trade fixture

A

Personal because it goes with a business.

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7
Q

Riparian rights

A

River – moving body of water.

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8
Q

Littoral rights

A

Lake- body of water standing still

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9
Q

Accretion

A

Addition of land

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10
Q

Avulsion

A

Tearing away land.

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11
Q

Reliction

A

Gradual recession of water leaving land, permanently, uncovered.

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12
Q

Appurtenance

A

Runs with the land

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13
Q

Freehold estate

A

No fixed duration of ownership

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14
Q

Fee simple estate

A

Highest possible ownership
Also known as fee simple absolute.

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15
Q

Fee simple, defeasible

A

Possesses the property as a fee, simple subject to a condition.

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16
Q

Life estate

A

Ownership of land, for the duration of the persons life.

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17
Q

Less than freehold estate

A

Limited period of time

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18
Q

Estate for years

A

Define period of time

For example 6 months or July 3 to September 8.

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19
Q

Periodic tenancy

A

Period to period . Such as month-to-month.

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20
Q

Estate at will

A

End at any time

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21
Q

Estate at sufferance

A

A landlord is suffering as tenant in possession past agreed upon time.

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22
Q

Lease

A

Possessions, but not ownership from lessor to lessee

Considered personal property

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23
Q

Percentage lease

A

Based on a percentage of gross receipts.

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24
Q

Net lease

A

Tenant pay taxes, insurance, and maintenance

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25
Q

Gross lease

A

Tenant pays fixed amount

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26
Q

Sandwich lease

A

primary party is lessee and a lessor

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27
Q

Tenant improvement

A

Allowance to customize, generally, for business purposes

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28
Q

Subleases

A

Grants possessions, but not responsibility

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29
Q

Assignment

A

Grants, possessions and responsibility

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30
Q

Surrender

A

Agreement to return the property to the owner landlord before the leases end.

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31
Q

Constructive eviction

A

Landlord fails to do something that he/she has a legal duty to provide

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32
Q

Deeds

A

Evidence of transfer

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33
Q

A grant deed

A

Transfers of real property from one person or entity to another person or entity. Each party transferring an interest in the property or grantor is required to sign it.

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34
Q

Quit claim deed

A

Deed releasing a persons, interest with Noelle warranties. typically is nonsense situation.

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35
Q

Warranty deed

A

Deed that guarantees a clear title to the buyer of real property.

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36
Q

Special warranty deed

A

Seller only warrants or guarantees the title against defects that may have risen during the period of ownership of the property.

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37
Q

General warranty deed

A

Seller warrants or guarantees the title against defects that may have a risen during the entire life of the property.

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38
Q

Title

A

Ownership

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39
Q

Chain of title

A

History of ownership with shows conveyance and encumbrance

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40
Q

Abstract of title

A

Summary

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41
Q

Cloud on title

A

Defect on title

Example, single woman, married

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42
Q

Quiet, title action

A

Lawsuit in order to establish a parties title

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43
Q

Alienation on title

A

Capacity of property or a property right to be sold or transferred

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44
Q

Title insurance

A

Ensure clear and markable titles

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45
Q

Standard policy of title insurance

A

Standard coverage includes;

Defect phone in public records
Forged documents
Incompetent grantors
Incorrect marital statements
In proper delivery of deeds

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46
Q

ALTA policy of title insurance

A

Protect real property owners, and mortgage lenders against losses from defects in title

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47
Q

Extended policy of title insurance

A

Includes everything in standard policy plus defects found in property inspection, which would include on recorded rights of parties in possessions examination survey on recorded liens , not known by policyholder. 

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48
Q

Severalty

A

Soul ownership

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49
Q

Concurrent estate

A

Ownership with others

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50
Q

Joint tenancy

A

TTIP right of survivorship

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51
Q

Tenancy in common

A

Unity of possession

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52
Q

Encumbrance

A

Limitation

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53
Q

Easement

A

Right to cross

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54
Q

Dominant tenement

A

Gaining the benefit of the easement

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55
Q

Servient tenement

A

Suffers the burden of the easement

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56
Q

Easement by prescription

A

Granted, after use the property in a hostile continuous and open manner for a prescribed number of years.

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57
Q

Appurtenance easement

A

Right to use adjoining property that transfers with the land

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58
Q

Easement in gross

A

No dominant tenement

Example, ugly powerlines

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59
Q

Government powers

A

PETE

Police police
Escheat
Taxation
Eminent domain

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60
Q

Police powers

A

States ability to regulate the for the betterment of the health, safety, morals, and general welfare of the community

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61
Q

Zoning

A

Police powers that divide and into areas for designated use

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62
Q

Variance

A

Exceptions to the role

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63
Q

Down zoning

A

Commercial to residential

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64
Q

Grandfather clause

A

Exempt from new rule

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65
Q

Non-conforming use

A

The type of zoning variance, where a parcel land may be given an exemption form. Current zero zoning ordinance due to improvements made by a prior owner, or before the current zoning audience made the desire use. Non-conform use under local law.

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66
Q

Building codes

A

Protect public health, safety, and general welfare

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67
Q

Escheat

A

Revisional property to the state when the owner dies without heirs

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68
Q

Interstate

A

No will

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69
Q

Testate

A

Has a will

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70
Q

Probate

A

Executor for estate of a decease person sells property in order to divide the property among the beneficiary

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71
Q

Holographic will

A

Written by hand

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72
Q

Taxation

A

Financial charge by a state to fund various public expenditures

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73
Q

Marginal tax rate

A

Percentage taken from your next dollar of taxable income

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74
Q

1031 tax deferred exchange

A

Deferred taxes
Identify 45 days acquire within 180 days of closing previous property

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75
Q

Boot

A

Fair market value of other property received in the exchange

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76
Q

Ad valorem

A

Latin, for according to value

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77
Q

Eminent domain

A

Government ability to take private property for public use

78
Q

Condemnation

A

Process of compensating, a person which properties taken from by eminent domain

79
Q

Inverse condemnation

A

Suing the government for just compensation when properties taken

80
Q

Liens

A

Money owned

81
Q

General liens

A

Liens against all personal property

82
Q

Specific liens

A

Lean that is on a single property

83
Q

Voluntary lien

A

Lean that exists because of action taken by a debtor

84
Q

involuntarily lien

A

Lean that was in poles on the individual example, taxes, and judgment liens

85
Q

Mechanic lien

A

Lean on behalf of those who have supplied labor on materials that improve the property

86
Q

Judgment lien

A

Lien placed by court

87
Q

Lis pendis

A

Lawsuit Penny involving either the title to the property or claim ownership interest in it

88
Q

Injunctions

A

Court orders that compels a party to do or refrain for public acts 

89
Q

Constructive notice

A

Signify that a person should have known as a reasonable person would have

90
Q

Actual notice

A

Personally, given to somebody

91
Q

Escrow

A

Neutral third-party

92
Q

Debit

A

Money owned

93
Q

Credit

A

Money received

94
Q

Short rate

A

 a higher periodic rate for a shorter term that was originally contracted

95
Q

Impound

A

Money, set aside by a lender to pay for occurring cost that take property over the loan, such as taxes and insurance

96
Q

RESPA

A

Eliminating kickbacks and referral fees, which add unnecessary cost to settlement services

97
Q

TILA

A

Inform us of consumer credit

Requires disclosures about its terms, and cost to standardize the manner in which cost associated with borrowing or calculated and disclose

98
Q

Fair housing act

A

1968 act banning refusal to sell or rent a dwelling to any person because of race color, religion sex or national origin

99
Q

Jones vs Meyer

A

1968 court case that barred all racial discrimination, private, as well as public in the cell or rental or property based on the 13th amendment

100
Q

Sherman antitrust act

A

Band anti-competitive behavior such as price fixing

101
Q

Americans with disability act

A

1990 act prohibiting discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities

102
Q

Material fact

A

The fact that if known might have caused it by our seller, a real estate to make a different decision

103
Q

Steering

A

Buyers – you should live by those people

104
Q

Blockbusting

A

Sellers – you better sell because you do not want to buy those people

105
Q

Panic selling

A

Sellers – you better sell because you do not wanna live by those people

106
Q

Red lining

A

Denying services, such as loan, either directly or through selective rising prices to residential of certain areas, based on race or ethnicity

107
Q

Misrepresentation

A

The actions, or offense of giving a false, or misleading account of the nature of something

108
Q

Actual fraud

A

Fraud committed with the actual intent of deceived and thereby injured another

109
Q

Constructive fraud

A

Person gained an unfair advantage over another by unfair methods

Intent does not need to be shown

110
Q

Commingling

A

Mixed of funds

111
Q

Puffing

A

Gross exaggeration facts

112
Q

Caveat emptor

A

Latin for buyer beware

113
Q

Essential of a valid contract

A

Mutual consent, lawful object, consideration capable parties

114
Q

Void contract

A

Lacks one of the four essential elements

115
Q

Avoidable contract

A

Options to rescind

116
Q

Bilateral contract

A

Promise for a promise, example would be an exclusive listing

117
Q

Unilateral contract

A

Promise for an act example would be an open listing or an option contract

118
Q

Executed contract

A

A contract that has been fully performed

119
Q

Executory contract

A

A contract that has not been fully performed

120
Q

The statues of fraud

A

States what contracts must be in writing

121
Q

Statue of the limitation

A

States time frames for certain contracts

122
Q

Novation

A

Latin for new as it relates to contract

123
Q

Codicil

A

Amendment

124
Q

Agency

A

ACOLD

Accountability
Care
Obedience
Loyalty
Disclosure

125
Q

Fiduciary

A

A position of trust, good faith, and honesty

126
Q

Actual authority

A

Expressly conferred by a principal to an agent to an act on principal behalf

127
Q

Ostensible authority

A

Authority, granted by acceptance of actions on the principles behalf

128
Q

Dual agent

A

Buyer and seller have the same broker

129
Q

General agent

A

Authorize a perform any, and all acts associated with a job

A real real estate licensee acting in the capacity of a property manager

130
Q

Special agent

A

Limited authority, granted to him for her through a principal

Relationship with the principal is not expected to be continuous

Listing contract, create a special agency

131
Q

Estoppel

A

Prevents asserting something contrary to what is implied by a previous action or statement

132
Q

Listing

A

Biletrtal employment contract

133
Q

Exclusive, listing

A

One broker can be paid

No need to show procuring cause in order to to be compensated

134
Q

Exclusive, agency listing

A

Owner sells agent gets nothing

You need to show you are in the procuring cards in order to be compensated

135
Q

Exclusive authorization and right to sell listing

A

Broker gets paid, if properly, so regardless of occurring causes

136
Q

Open listing

A

Seller can hire multiple brokers

Brokers that proves occurring cause may be compensated

137
Q

Net listing

A

Money receive above, and beyond a designated amount

138
Q

Protected period clause

A

Compensated after listening expires if you can prove you that you are the procuring cause

139
Q

Contingency clause

A

Defined the condition or action that may be met in order to for a real estate contract to become binding.

140
Q

Hold, harmless clause

A

Also known as a liability, waiver

Agreement whereby parties agree not to hold up other part, responsible for any loss damage or legal liability that may arise under the agreement.

141
Q

Interim occupancy agreement

A

Staying after sale

142
Q

Deposit

A

Placing something of value to show that you are serious about your offer offer

143
Q

Value

A

What a willing buyer will pay on the open market

144
Q

Essential element of value

A

STUD

Scarcity
Transferability
Utility
Demand

145
Q

Principle of substitution

A

No prudent person would pay very a property when another one readily available that has the same use design and income for less.

146
Q

Principle of contribution

A

How much does an item contribute to the net income of the property?

147
Q

Principle of regression

A

The value of a more expensive home placed in the neighborhood of less expensive home will drop in value

148
Q

Principle of progression

A

Progression states that the value of less expensive properties will increase when placing the area of more expensive properties

149
Q

Principle of highest and best use

A

How much of a net return can you get by building on a property?

If they uses temporary, it could then be considered as interm use

150
Q

Plottage

A

1+1 = 3

151
Q

Appraisal

A

Estimate of value

152
Q

Narrative appraisal

A

A comprehensive appraisal report is a complete appraisal

153
Q

Market data (comprehensive)approach

A

Examination and comparison of an actual sales of comparable properties

Best used to find value of houses and vacate lots

154
Q

Cost replacement approach

A

Find out how much it would cost to replace the building brand

Better for new buildings not old

155
Q

Capitalization income approach

A

Convert income to value

A property that can prove to bring more in income when increased the value

 most appropriate for a shopping center

156
Q

Gross multiplier

A

Price divided by rent

157
Q

Cap rate

A

Higher cap rate represents higher risk

158
Q

Acre

A

43, 560

Four little ladies going 35 in a 60

159
Q

Depreciation

A

Lost value to any clause

160
Q

Physical deterioration

A

Wear and tear

161
Q

Functional obsolescence

A

Poor planning

162
Q

Economic obsolescence

A

Outside causes

163
Q

Mortage

A

A voluntary specific lien

164
Q

Mortgage brokers

A

Intermediary between consumers and lenders

Mortgage brokers originally loan, while the mortgage lender funds loan

165
Q

Mortgage banker

A

A direct mortgage lender

166
Q

Interest

A

Rents on money

167
Q

Leverage

A

Borrowed to increase the potential return of an investment

168
Q

Amotorization

A

The paying off of debt

169
Q

Negative amortization

A

Interest paid, but that increases

170
Q

Balloon loan

A

Loan that does not fully amortize over its item

171
Q

Appreciation

A

Increase in value overtime

172
Q

Construction loan

A

Short term loan used to finance the building over property

173
Q

Obligatory advances

A

Money, giving during a construction loan at agreed-upon stages

174
Q

Participation loan

A

A loan that requires interest plus a portion of the property as proper payment

175
Q

Interim loan

A

Short term financing

176
Q

Take out loan

A

Long-term loans replacing interim financing, such as short-term construction loan

Usually mortgages through fix payments that are amortizing

177
Q

Subject to

A

Seller liable buyer not liable

178
Q

Assume

A

Relieve seller buyer is liable

179
Q

Hypothecate

A

Pledging an asset as collateral for loan while retaining ownership

180
Q

Subordinate clause

A

Current depths will take priority, over depth made in the future

181
Q

Prepayment clause

A

Provisions that permit is borrowed to satisfy that before it is due

182
Q

Prepayment penalty

A

Regulates what the borrow is allowed to pay off and when

183
Q

Due on sale clause

A

Balance on the loan may be called to repay in full upon sale

184
Q

Primary mortgage market

A

Where lenders make mortgage loans directly to borrowers

185
Q

Secondary mortgage market

A

Resale marketplace

186
Q

Insurance companies – as a lender

A

Prefers income producing properties and long-term large industrial projects

Frequency demand to be able to do a participation loan

187
Q

Savings and loan association

A

If state or federally, chartered financial inter dairy that accepts Deposits from the public and investor fund primarily in residential mortgage loans

188
Q

FHA

A

Small down payment required

Insure lenders does not make loans

Unconventional loan, because they are backed by the government

No prepayment penalty

Single-family homes, 1-4 units owner occupied

189
Q

VA loan

A

Does not require a down payment however, the lender can require one

Owner occupied, house, condominium, or townhouse

190
Q

GNMA

A

A governmental part of the secondary market that deals primarily and recycling, VA and FHA mortgages

191
Q

FNMA

A

Deadly sponsored, private, corporation, which provides a secondary market for housing mortgage

Things To Know On The Real Estate Exam (1 decks)

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