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Illinois Real Estate Exam > Module 10 > Flashcards

Module 10 Flashcards

1
Q

An estimate of the value of the property to be purchased for an FHA loan

A

Conditional Commitment

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2
Q

A deed that conveys any interest in a piece of real property the grantor has at the time the deed is executed

A

Quitclaim Deed

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3
Q

A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property

A

Abstract of Title

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4
Q

A contract that one of the parties can disaffirm, without liability, because of a lack of legal capacity

A

Voidable

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5
Q

A property developed for co-ownership, where each co-owner has a separate interest in an individual unit, and an undivided interest in the common areas of the property

A

Condominium

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6
Q

A co-tenants interest, giving him the right to possession of the whole property, rather than a particular section of it

A

Undivided Interest

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7
Q

The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result

A

Blockbusting

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8
Q

One who is licensed to represent another person in a real estate transaction with intent to receive compensation or valuable consideration

A

Broker

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9
Q

A financial encumbrance of the owner’s title

A

Lien

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10
Q

Physical land and everything attached to it

A

Real Estate

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11
Q

An ownership interest giving the owner a right to possession of the property only for a specific, limited periods

A

Time Share

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12
Q

A future interest held by the grantor that becomes possessory when a temporary estate terminates

A

Reversion

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13
Q

Channeling prospective buyers or tenants to a particular neighborhood based on their race

A

Steering

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14
Q

A charge for use of money

A

Interest

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15
Q

An antitrust violation that occurs when two or more competitors agree on what they will charge

A

Price-Fixing

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16
Q

When a tenant transfers only part of his or her right of possession to another person for part of the remaining lease term

A

Sublease

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17
Q

A person to whom an offer is made

A

Offeree

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18
Q

A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship

A

Joint Tenancy

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19
Q

A note that calls for payments of interest only during the note’s term

A

Straight Note

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20
Q

When a broker or salesperson represents both parties in a transaction

A

Dual Agent

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21
Q

When a lender refuses to make mortgage loans in a certain neighborhood because of its ethnic or racial composition

A

Redlining

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22
Q

Naturally occurring plants, generally considered part of real property

A

Fructus Naturales

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23
Q

The effect when a loan balance grows because of deferred interest when payments are not covering the interest portion of the loan

A

Negative Amortization

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24
Q

A real estate installment agreement where the vendee makes payments to the vendor in exchange for the right to occupy, use, and enjoy the land but no deed or title transfers until all or specified portion of payments have been made

A

Land Contract

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25
Q

Loan where the interest rate remains constant for the duration of the loan

A

Fixed Rate Loan

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26
Q

A person working with a fair housing organization who pretends to be interested in buying or renting property from someone suspected of unlawful discrimination

A

Checker

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27
Q

The effect when loan balance grows because of deferred interest when payments are not covering the interest portion of the loan

A

Negative Amortization

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28
Q

A form of co-ownership in which the co-owners have equal undivided interest and the right of survivorship

A

Joint Tenancy

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29
Q

Anyone who is authorized to act on behalf of someone else

A

Agent

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30
Q

A right that goes along with ownership of real property

A

Appurtenance

31
Q

A defect that is not visible or apparent; hidden defect that would not be discovered in a thorough inspection of property

A

Latent defect

32
Q

A system in which things of value are held by a disinterested third party until specified conditions are met

A

Escrow

33
Q

An appraisal method which estimates the value of real estate by analyzing the amount of revenue it does or could generate

A

Income approach

34
Q

Someone selling property by means of a land contract

A

Vendor

35
Q

Illegally mixing monty held in trust on behalf of a client with personal funds

A

Commingling

36
Q

When a new buyer takes over the seller’s existing mortgage loan

A

Assumption of Mortgage

37
Q

An intentional misrepresentation or concealment of a material fact

A

Actual Fraud

38
Q

A future interest held by the grantor that becomes possessory when a temporary estate terminates

A

Reversion

39
Q

A form of co-ownership in which two or more persons each have an undivided interest by the entire property (unity of possession), but no right of survivorship

A

Tenancy in Common

40
Q

A title that is free and clear from undisclosed encumbrances or other defects that would expose a purchaser to litigation or impede a purchaser’s ability to enjoy the property or to later sell the property

A

Marketable Title

41
Q

Knowledge of a fact imputed to a person by law

A

Constructive Notice

42
Q

An acre is a measure of land area that is equal to

A

43,560 square feet

43
Q

A party in a transaction to whom an agent does not have a fiduciary relationship with

A

Customer

44
Q

An item of personal property that has been attached to or closely associated with real property in such a way that it has legally become part of the real peroperty

A

Fixture

45
Q

A listing agreement that entitles the broker to a commission if anyone other that the seller finds a buyer

A

Exclusive Agency

46
Q

The relationship between the cost of borrowing money and the total amount financed

A

APR

47
Q

A mortgage that permits the lender to periodically change the interest rate to reflect fluctuations in the cost of money

A

ARM

48
Q

A legal proceeding relieving the debtor of the responsibility of paying for his or her debts

A

Bankruptcy

49
Q

A person who leases property to another

A

Lessor

50
Q

A zoning law that effectively prevents certain groups from living in a community

A

Exclusionary Zoning

51
Q

When a lienholder causes property to be sold, so that the unpaid debt secured by the lien can be satisfied from the sale proceeds

A

Foreclosure

52
Q

A form of property co-ownership by husband and wife, in which each spouse has an undivided one-half interest without the other’s consent

A

Tenancy by Entireties

53
Q

A non-possessory interest in property burdening the property owner’s title

A

Encumbrance

54
Q

A brief chronological summary of the recorded documents affecting title to a particular parcel of real property

A

Abstract of Title

55
Q

The act of taking private property for public use

A

Condemnation

56
Q

A contract in which both parties have fully performed their contractual obligations

A

Executed

57
Q

An interest created in property upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing).

A

Equitable Title

58
Q

Fees assessed by a lender to compensate for interest income lost if the buyer pays off a long-term loan early

A

Prepayment Penalties

59
Q

A note and mortgage given by a buyer to a seller when the seller finances all or part of the sales price for the buyer

A

Purchase Money Mortgage

60
Q

When a seller keeps the existing loan and continues to pay on it while giving the buyer another mortgage loan

A

Wraparound mortgage

61
Q

A person signing a document and formally declaring to an authorized official (usually a notary public) that she signed voluntarily

A

Acknowledgement

62
Q

Loans that follow the criteria set by the secondary markets

A

Conforming Loan

63
Q

Equipment a tenant installs for use in his or her business

A

Trade Fixture

64
Q

A type of estate conveying ownership interest that comes with a condition

A

Defeasible Fee

65
Q

Water rights of landowners whose land touches a natural body of water such as a stream, a river, or inland lake

A

Riparian Rights

66
Q

Substantial additions to real property, such as buildings

A

Improvements

67
Q

When lenders sell mortgages to investors in order to receive funds to make additional mortgage loans

A

Secondary Mortgage Market

68
Q

A guarantee included in a deed that the grantor really owns the property

A

Seizen

69
Q

A physical object intruding onto neighboring property, often due to a mistake regarding the boundary

A

Encroachment

70
Q

Permission granted to a property owner by the zoning authority, allowing some deviation from strict compliance with the zoning law

A

Variance

71
Q

A non-exclusive listing given by a seller to as many brokers as he or she chooses

A

Open

72
Q

An interest that gives the holder, the tenant, a temporary right to exclusive possession of the estate, without title

A

Leasehold

73
Q

Personal property associated with real property in such a way that the law treats it as a fixture

A

Annexation

74
Q

A mortgage that occurs between one mortgage and the beginning of the next

A

Bridge Mortgage

Illinois Real Estate Exam (3 decks)

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