Priciples Of Real Estate

Question 1

Abstract of Judgment

Answer 1

Document that summarizes the results of a legal action, which can be filed in any county where the judgement debtor owns a property.

Question 2

Abstract of Title

Answer 2

Summation of all recorded transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title to show ownership continuity and signify any possible loss to title.

Question 3

Acceleration Clause

Answer 3

Provision in a real estate financing instrument allowing the lender to declare the full debt due immediately if the borrower breaches any of the provisions of the loan agreement. Also referred to as a call provision.

Question 4

Acceptance

Answer 4

(A)Agree to the terms of an offer to enter into a binding contract.
(B)Receive delivery of a deed from the grantor.

Question 5

Accession

Answer 5

The process of manufactured or natural improvement or addition to property.

Question 6

Accretion

Answer 6

A steady addition to dry land through the forces of nature as when waterborne sediments get deposited on waterfront property

Question 7

Acknowledgement

Answer 7

Formal declaration made before an authorized person ( generally a notary public) by an individual who has executed a written instrument that it has been done voluntarily

Question 8

Acquisition Cost

Answer 8

Amount of money required to acquire title to a property; it includes the purchase price as well as the closing costs, legal fees, escrow, service charges, title insurance, recording fees, and other such expenses.

Question 9

Acre

Answer 9

Area of land measuring 160 square rods,
4,840 square yards, or
43,560 square feet; a track of about
208.71 feet square.

Question 10

Actual Age

Answer 10

number of years since a building was completed; also called historical or chronological age

Question 11

Actual Authority

Answer 11

Authority actually given to an agent by the principal. ( expressly or implication) .

Question 12

Actual Eviction

Answer 12

Forcing someone physically off real property or preventing someone from re-entering property or using legal action to make someone leave the premises.

Question 13

ADA

Answer 13

American with Disabilities Act

Question 14

Addendum

Answer 14

A page containing additional provisions attached to a purchase agreement or any other contract.

Question 15

Adjacent

Answer 15

Next to, nearby, bordering, or neighboring( not necessarily in a real contract)

Question 16

Adjustable-rate mortgage (ARM):

Answer 16

Loan in which the interest rate increases or decreases to reflect changes in cost of money.

Question 17

Adjusted basis

Answer 17

Purchase price of property plus cost of specified improvements, minus any depreciation deductions taken.

Question 18

Adjustment Period

Answer 18

Time period between when the interest rate or monthly payment for an adjustable-rate mortgage is changed.

Question 19

Administrative Agency

Answer 19

Government body administering a complicated area of law and policy, implementing and enforcing detailed regulations. Example , the Department of Real Estate is one.

Question 20

Administrator

Answer 20

Individual appointed by the probate court to manage and distribute the estate of a deceased person if no executor is named in the will or there is no will.

Question 21

Ad Valorem

Answer 21

Latin phrase meaning “according to value”
Referring to taxes assessed on the value of property.

Question 22

Adverse possession

Answer 22

A way of acquiring title to real property belonging to someone else by occupying it without permission, and fulfilling other statutory requirements.

Question 23

Affidavit

Answer 23

Acknowledged sworn statement in writing made before a notary public ( or any other official authorized to administer an oath)

Question 24

Affiliated licensee

Answer 24

A real estate salesperson or associate broker employed by a broker

Question 25

Affirm

Answer 25

(A)To confirm or approve (B) To make a sincere declaration that is not under oath

Question 26

After-acquired title

Answer 26

If a title is acquired by a grantor, only after a conveyance to a grantee, the deed to the grantee becomes effective at the time the grantor actually receives title.

Question 27

Age of Mojority

Answer 27

Age of a person when he or she becomes legally competent ( usually 18 years old)

Question 28

Agency Apparent

Answer 28

When the impression given to a third party is that someone who hasn’t been approved to represent another is that person’s agent, or the impression that an agent has been approved to perform acts which are actually beyond the capacity of his authority; also called ostensible.

Question 29

Agency, Dual

Answer 29

An agency relationship where the agent represents two principals in their dealings with each other.

Question 30

Agency, exclusive

Answer 30

Listing agreement that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale negotiated by the owner without the services of an agent.

Question 31

Agency, Exclusive

Answer 31

Listing agreement that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale is negotiated by the owner without the services of an agent.

Question 32

Agency, Ostensible

Answer 32

Also known as agency apparent

Question 33

Agency confirmation statement

Answer 33

Written statement indicating the representation of a real estate agent of a party. It should be signed by both the buyer and the seller before they enter into a residential purchase agreement.

Question 34

Agency disclosure form

Answer 34

Form explaining the duties of a seller’s agent, a buyers agent, and a dual agent -required to be signed by both the buyer and the seller before they enter into a residential purchase agreement

Question 35

Agency law

Answer 35

Body of legal rules governing the relationship between agent and principal by imposing fiduciary duties on the agent as well as liability for the actions of the agent on the principal

Question 36

Agent

Answer 36

Individual authorized to represent another ( known as the principal) in dealing with third party

Question 37

Agents in production

Answer 37

Elements necessary to generate income and establish a value in real estate: labor, coordination, capital, and land

Question 38

Air rights

Answer 38

The rights to unobstructed use and possession of the airspace over a parcel of land. This right may be transferred separately from the land

Question 39

Alienation

Answer 39

The transfer of ownership or an interest in property from one person to another, in any way.

Question 40

Alienation, Involuntary

Answer 40

Transfer of an interest in property against the will of the owner, or without any action by the owner( ensuing through operation of law, natural processes, or adverse possession).

Question 41

Alienation, Voluntary

Answer 41

When an interest in property is voluntarily transferred by the owner to someone else( generally by deed or will)

Question 42

Alienation Clause

Answer 42

A security instrument provision giving the lender the right to declare the full loan balance due immediately if the borrower sells or transfers the security property; also termed as due-on-sale clause.