Module 10

Question 1

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

Answer 1

Conditional Commitment

Question 2

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

Answer 2

Quitclaim Deed

Question 3

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

Answer 3

Abstract of Title

Question 4

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

Answer 4

Voidable

Question 5

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

Answer 5

Condominium

Question 6

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

Answer 6

Undivided Interest

Question 7

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

Answer 7

Blockbusting

Question 8

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

Answer 8

Broker

Question 9

A financial encumbrance of the owner’s title

Answer 9

Lien

Question 10

Physical land and everything attached to it

Answer 10

Real Estate

Question 11

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

Answer 11

Time Share

Question 12

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

Answer 12

Reversion

Question 13

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

Answer 13

Steering

Question 14

A charge for use of money

Answer 14

Interest

Question 15

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

Answer 15

Price-Fixing

Question 16

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

Answer 16

Sublease

Question 17

A person to whom an offer is made

Answer 17

Offeree

Question 18

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

Answer 18

Joint Tenancy

Question 19

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

Answer 19

Straight Note

Question 20

When a broker or salesperson represents both parties in a transaction

Answer 20

Dual Agent

Question 21

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

Answer 21

Redlining

Question 22

Naturally occurring plants, generally considered part of real property

Answer 22

Fructus Naturales

Question 23

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

Answer 23

Negative Amortization

Question 24

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

Answer 24

Land Contract

Question 25

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

Answer 25

Fixed Rate Loan

Question 26

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

Answer 26

Checker

Question 27

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

Answer 27

Negative Amortization

Question 28

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

Answer 28

Joint Tenancy

Question 29

Anyone who is authorized to act on behalf of someone else

Answer 29

Agent

Question 30

A right that goes along with ownership of real property

Answer 30

Appurtenance

Question 31

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

Answer 31

Latent defect

Question 32

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

Answer 32

Escrow

Question 33

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

Answer 33

Income approach

Question 34

Someone selling property by means of a land contract

Answer 34

Vendor

Question 35

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

Answer 35

Commingling

Question 36

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

Answer 36

Assumption of Mortgage

Question 37

An intentional misrepresentation or concealment of a material fact

Answer 37

Actual Fraud

Question 38

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

Answer 38

Reversion

Question 39

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

Answer 39

Tenancy in Common

Question 40

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

Answer 40

Marketable Title

Question 41

Knowledge of a fact imputed to a person by law

Answer 41

Constructive Notice

Question 42

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

Answer 42

43,560 square feet

Question 43

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

Answer 43

Customer

Question 44

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

Answer 44

Fixture

Question 45

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

Answer 45

Exclusive Agency

Question 46

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

Answer 46

APR

Question 47

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

Answer 47

ARM

Question 48

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

Answer 48

Bankruptcy

Question 49

A person who leases property to another

Answer 49

Lessor

Question 50

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

Answer 50

Exclusionary Zoning

Question 51

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

Answer 51

Foreclosure

Question 52

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

Answer 52

Tenancy by Entireties

Question 53

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

Answer 53

Encumbrance

Question 54

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

Answer 54

Abstract of Title

Question 55

The act of taking private property for public use

Answer 55

Condemnation

Question 56

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

Answer 56

Executed

Question 57

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).

Answer 57

Equitable Title

Question 58

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

Answer 58

Prepayment Penalties

Question 59

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

Answer 59

Purchase Money Mortgage

Question 60

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

Answer 60

Wraparound mortgage

Question 61

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

Answer 61

Acknowledgement

Question 62

Loans that follow the criteria set by the secondary markets

Answer 62

Conforming Loan

Question 63

Equipment a tenant installs for use in his or her business

Answer 63

Trade Fixture

Question 64

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

Answer 64

Defeasible Fee

Question 65

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

Answer 65

Riparian Rights

Question 66

Substantial additions to real property, such as buildings

Answer 66

Improvements

Question 67

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

Answer 67

Secondary Mortgage Market

Question 68

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

Answer 68

Seizen

Question 69

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

Answer 69

Encroachment

Question 70

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

Answer 70

Variance

Question 71

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

Answer 71

Open

Question 72

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

Answer 72

Leasehold

Question 73

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

Answer 73

Annexation

Question 74

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

Answer 74

Bridge Mortgage