Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate License Prep > Ohio Prep Book (Kindle) > Flashcards

Ohio Prep Book (Kindle) Flashcards

1
Q

___ is the increase in the value of a property due to changes in market conditions, inflation, or other causes.

A

Appreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When ownership of a mortgage is transferred from one company or individual to another, it is called an ___.

A

Assignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A mortgage loan that requires the remaining principal balance be paid at a specific point in time is a ___.

A

Balloon mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why are bridge loans not used much anymore?

A
  1. More second mortgage lenders now will lend at a high loan to value.
  2. Sellers would rather accept offers from Buyers who have already sold their property.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A title free of liens or legal questions as to ownership of the property is called a ___ title.

A

Clear (no challenges can be made to its legality)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the collateral in a home loan?

A

The property itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the adjustment date on an adjustable-rate mortgage?

A

The date the interest rate changes (adjusts)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the deposit made by a potential buyer to show he is serious about buying a house called?

A

Earnest money deposit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A right-of-way which gives persons other than the owner access to or over a property is known as ___.

A

An easement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a housing development created by dividing a tract of land into individual lots?

A

Subdivision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When someone contributes to the construction or rehabilitation of a property with labor or services rather than cash, that contribution is called ___.

A

Sweat equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

___ is an adjustable rate mortgage with one interest rate for the first five or seven years and a different rate for the remainder of the term.

A

Two-step mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a legal document evidencing a person’s right to or ownership of a property?

A

Title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a written document that transfer personal property from one owner to another?

A

Bill of sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

An oral or written agreement that is binding in a court of law is called ___.

A

A contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The ___ is the amount paid down in cash as the initial upfront portion of the total amount due.

A

Down payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The female executor named in a will to administer an estate is called ___.

A

An executrix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The greatest possible interest a person can have in real estate is called ___.

A

Fee simple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

___ is required in federally designated flood areas and does compensate for physical property damage resulting from flooding.

A

Flood insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Government loans are either insured by ___, or guaranteed by ___ or ___.

A

Federal Housing Administration (FHA); Veterans Affairs (VA); Rural Housing Service (RHS)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Mortgages are not government loans are called ___ loans.

A

Conventional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The ___ is the person conveying an interest in real property to another party.

A

Grantor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Insurance covering physical damage to a property from fire, wind, vandalism, or other hazards is called ___.

A

Hazard insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A ___ asset is either cash or something easily turned into cash.

A

Liquid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Another term for the lender in a mortgage agreement is the ___.

A

Mortgagee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

If you are buying a house and asking the seller to provide all or part of the financing, you are asking for ___ financing.

A

Owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is a point?

A

1% of the amount of the mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

A ___ derives power from a legal document and grants someone complete or limited authority on behalf of someone else.

A

Power of attorney

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Principal has two definitions - what are they?

A
  1. The amount borrowed or remaining unpaid

2. The part of the monthly payment that reduces the remaining balance of a mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A ___ is a written promise to repay a specific amount over a specified period of time.

A

Promissory note

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is a real estate agent?

A

A licensed person who negotiates and transacts the sale of real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

When does an assumption take place?

A

When the buyer assumes the seller’s mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A legal document conveying title to a property is a ___.

A

Deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

A ___ clause allows the lender to demand payment, most commonly if the borrower defaults on the loan or transfers title to someone without informing the lender.

A

Acceleration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the most common type of bankruptcy?

A

Chapter 7 No Asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A ___ is someone who acts as an agent and brings two parties together for a transaction and earns a fee for this.

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

An appraiser’s estimate of the physical condition of a building is called ___.

A

Effective age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is the difference between the fair market value of a property and the amount still owed on the mortgage (and other liens)?

A

Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

The person to whom an interest in real property is conveyed is the ___.

A

Grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

A mortgage loan, usually in second position, which allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount, is known as ___.

A

A home equity line of credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

In the event of death in joint tenancy, who gets the property?

A

The survivor - they own the property in its entirety

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

A ___ is a rate guaranteed by the lender for a certain period of time at a certain cost to the buyer.

A

Lock-in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

A mortgage with a lien position subordinate to the first mortgage on a piece of property is called a ___.

A

Second mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

In this type of mortgage, the interest rate adjusts periodically according to corresponding fluctuations in an index

A

Adjustable-rate mortgage (ARM)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

___ is a table showing how much of each payment is applied to interest and how much to principal.

A

Amortization schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Mortgage in which you make the payments every 2 weeks

A

Bi-weekly mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

The limitation on how much the loan may adjust over a period of time and for the life of the loan

A

Cap

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What is fair market value?

A

The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

A lender’s agreement to make a loan to a specific borrower on a specific property is called a ___.

A

Firm commitment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

A ___ is an alternative financing option that allows home buyers to lease a home with an option to buy.

A

Lease-option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is a sum of borrowed money generally repaid with interest?

A

Loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable

A

Maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

The borrower in a mortgage agreement is called the ___.

A

Mortgagor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

True or false - origination fees apply to government and conventional loans.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

A government loan is usually ___%.

A

1%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

The ___ applies to the original amortization term minus the number of payments that have been applied.

A

Remaining term

57
Q

___ is a credit arrangement, such as a credit card, which allows a customer to borrow against a pre-approved line of credit when purchasing goods and services.

A

Revolving debt

58
Q

A ___ is an agreement in which the owner of a property provides financing, often in combination with an assumable mortgage

A

Sell carry-back

59
Q

State or local tax payable when title passes from one owner to another is called ___.

A

Transfer tax

60
Q

___ is a federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage, including the annual percentage rate and other charges.

A

Truth-in-Lending

61
Q

Over time, what happens to the interest portion and principal as the loan balance decreases during amortization?

A

Interest portion DECREASES

Principal INCREASES

62
Q

The valuation placed on property by a public tax assessor for purposes of taxation is called ___.

A

Assessed value

63
Q

A certificate of ___ is a document issued by the VA that certifies a veteran’s eligibility for a VA loan.

A

Eligibility

64
Q

An unwritten body of law based on general custom in England and used to an extent in some states

A

Common law

65
Q

Recent sales of similar properties in nearby areas and used to help determine the market value of a property are called ___

A

Comparable sales (comps)

66
Q

A person to whom money is owed

A

Creditor

67
Q

An ___ gives a licensed real estate agent the exclusive right to sell a property for a specified period of time.

A

Exclusive listing

68
Q

The mortgage that is in first place among any loans recorded against a property and usually refers to the date in which loans are recorded

A

First mortgage

69
Q

The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property is called a ___.

A

Foreclosure

70
Q

True or false - 401(k)/403B plans are an acceptable source of down payment for most types of loans

A

True

71
Q

A ___ usually kicks in after fifteen days on a first mortgage and is a penalty a borrower must pay.

A

Late charge

72
Q

A person’s financial obligations are called ___.

A

Liabilities

73
Q

___ is a value created according to a government formula intended to reflect the true annual cost of borrowing expressed as a percentage.

A

Annual percentage rate (APR)

74
Q

True or false - APR is the note rate on your loan.

A

False - APR is NOT the note rate on your loan. It is always higher than the actual note rate on your loan.

75
Q

When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a ___.

A

Cash-out refinance

76
Q

A time deposit held in a bank which pays a certain amount of interest to the depositor

A

Certifiate of deposit

77
Q

___ are also sometimes called Homeowners Association Fees and are paid by the individual owners of condos or planned unit developments and are used to maintain the property and common areas.

A

Common area assessments

78
Q

In simple terms, what is debt?

A

An amount owed to another

79
Q

The lawful expulsion of an occupant from real property

A

Eviction

80
Q

Which of the following would not be paid by escrow disbursements?

A. Real estate taxes
B. Hazard insurance
C. Mortgage insurance
D. Personal property taxes

A

D. Personal property taxes - not a typical escrow disbursement

The other three are typically paid by escrow

81
Q

Written agreement between property owner and tenant laying out the terms of the agreement including payment and period of the agreement including payment and period of time

A

Lease

82
Q

Another name for Home Equity Conversion Mortgage

A

Reverse annuity mortgage

83
Q

A ___ is the firm making the loan or an individual representing the firm making the loan.

A

Lender

84
Q

The difference between the interest rate and the index on an adjustable rate mortgage

A

Margin

85
Q

A mortgage company which originates loans, then places with a variety of other lending institutions

A

Mortgage broker

86
Q

The interest rate stated on a mortgage note

A

Note rate

87
Q

A payment insufficient to cover the scheduled monthly payment on a mortgage loan

A

Partial payment

88
Q

A ___ reduces the principal on a loan before the due date and can result from a sale, the owner’s decision to pay off the lean early, or foreclosure.

A

Prepayment

89
Q

A written contract signed by buyer and seller stating the terms and conditions under which a property will be sold

A

Purchase agreement

90
Q

Public official who keeps records of real property transactions in their area

A

Recorder; also known as county clerk; registrar of deeds

91
Q

Outstanding balance of principal only on a mortgage that does not include interest or any other charges

A

Principal balance

92
Q

Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits and inherent rights thereof

A

Real property

93
Q

In joint tenancy, if one person dies and the other inherits the property, this is called ___.

A

Right of survivorship

94
Q

A mortgage or other type of lien that has a priority lower than that of the first mortgage is called ___.

A

Subordinate financing

95
Q

Insurance that protects the lender or the buyer against loss arising from disputes over ownership of a property is ___.

A

Title insurance

96
Q

___ places a value on property for the purpose of taxation

A

Assessment

97
Q

Certificate of Reasonable Value (CRV) applies to a ___ loan.

A

VA

98
Q

An additional individual who is both obligated on the loan and is on the title to the property

A

Co-borrower

99
Q

When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan then goes to ___ and the lender must mail and record certain documents in case they have to foreclose on the property.

A

Collection

100
Q

A ____ is real property where all the owners own the property, common areas, and building together with the exception of the interior of the unit to which they have title. It is a type of ownership.

A

Condominium

101
Q

An organization which gathers, records, updates, and stores financial and public records information about the payment records of individuals being considered for credit

A

Credit repository

102
Q

In some states, a recorded mortgage is replaced by a ___.

A

Deed of trust

103
Q

Failure to make mortgage payments when they are due

A

Delinquency

104
Q

___ is a congressionally chartered, shareholder-owned company that is the nation’s largest supplier of home mortgage funds.

A

Federal National Mortgage Association (Fannie Mae)

105
Q

___ is government owned organization that provides funds to lenders for making government loans (FHA and VA)

A

Ginnie Mae

106
Q

A jumbo loan is anything over ___.

A

$417,000

107
Q

___ insurance protects against claims against a property owner for negligence or bodily injury or property damage to another party.

A

Liability

108
Q

A lender refers to the process of betting new loans as ___.

A

Loan origination

109
Q

The percentage relationship between the amount of the loan and the appraised value or sales price is called ___.

A

Loan to value

110
Q

Type of credit report that reports the raw data pulled from 2+ major credit repositories

A

Merged credit report

111
Q

Legal document pledging a property to the lender as security for payment of a debt

A

Mortgage

112
Q

The interest rate on a “no points” loan is ___ (higher or lower) than on a loan where you pay one point.

A

Higher

113
Q

Total amount of principal owed on a mortgage before any payments are made

A

Original principal balance

114
Q

How does a planned unit development differ from a condominium?

A

Planned unit development - individuals actually own the building or unit they live in, but common areas are owned jointly with other members

Condo - individuals owns the airspace of his unit, but common areas and the buildings are owned jointly

115
Q

Type of cap that limits the amount the interest rate can increase or decrease over the life of the mortgage

A

Life cap

116
Q

The change in your mortgage without having to refinance

A

Modification

117
Q

Often referred to as a “rate and term refinance,” this type of re-finance cis calculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage.

A

No cash-out refinance

118
Q

Legal document requiring a borrower to repay a mortgage loan at a stated interest rate during a specified period of time

A

Note

119
Q

The date when a new monthly payment amount takes effect on an ARM or graduated-payment mortgage

A

Payment change date

120
Q

A ___ deed transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

A

Quitclaim

121
Q

A ___ is the process of paying off one loan with the proceeds from a new loan using the same property as security.

A

Refinance transaction

122
Q

The amount of principal that has not yet been repaid is called the ___.

A

Remaining balance

123
Q

A ___ is an arrangement made to repay delinquent installments or advances.

A

Repayment plan

124
Q

What is a provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he offers it for sale or lease to others?

A

Right of first refusal

125
Q

A technique in which a seller deeds property to a buyer for a consideration and the buyer simultaneously leases the property back to the seller

A

Sale-leaseback

126
Q

In a tenancy in common, what happens to ownership in the event of death?

A

Ownership does NOT pass to the survivors - it goes through the estate of the deceased.

127
Q

A ___ is an organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts.

A

Servicer

128
Q

What happens in third party origination?

A

A lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

129
Q

A ___ would show that the seller is the legal owner and there are no outstanding liens or other claims against the property.

A

Title search

130
Q

A ___ is a fiduciary who holds or controls property for the benefit of another.

A

Trustee

131
Q

A person who is ___ can use a portion of a fund such as a n individual retirement fund but must pay taxes on funds that are withdrawn.

A

Vested

132
Q

A mortgage that can be assumed by the buyer when a home is sold

A

Assumable mortgage

133
Q

A call option is most similar to an ___ clause.

A

Acceleration

134
Q

A ___ is an analysis of the transfers of title to a piece of property over the years.

A

Chain of title

135
Q

A ___ title is any condition revealed by a title search that adversely affects the title to real estate.

A

Cloud on

136
Q

What are the two types of closing costs?

A

Non-recurring closing costs

Pre-paid items (occur over time, like property taxes and homeowners insurance)

137
Q

___ determines that property acquired by a married couple during their marriage is considered to be jointly owned.

A

Community property

138
Q

Changing the ownership of an existing building to the condominium form of ownership is called a ___.

A

Condominium conversion

139
Q

A ___ ARM is an adjustable rate mortgage that allows the borrower to change the ARM to a fixed rate mortgage within a specific time.

A

Convertible

Real Estate License Prep (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions