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2022 NY Real Estate > Real Estate Vocabulary 01 > Flashcards

Real Estate Vocabulary 01 Flashcards

1
Q

`What is “appreciation”?

A

Is an increase in the value of property.

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2
Q

When ownership of a mortgage is transferred from one company or individual to another, this is called?

A

An Assignment.

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3
Q

A mortgage loan which requires the remaining balance to be paid at a specific time is called a ?

A

Balloon Mortgage.

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4
Q

The following reason accounts for why bridge loans are not used much anymore.

A

More second mortgage lenders now will lend at a higher loan value and sellers would rather accept offers from Buyers who have already sold their property.

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5
Q

A title which is free of liens or legal questions as to ownership of the property is call a ___________________ title.

A

Clear Title.

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6
Q

What is the collateral in a home loan?

A

The property itself is the collateral, and the borrower risks losing it if he does not repay according to the terms of the mortgage or deed of trust.

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7
Q

The adjustment date on an adjustable–rate mortgage is?

A

Is the date the interest rate changes (adjusts)

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8
Q

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

A

It is called an Earnest Money Deposit.

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9
Q

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

A

Essement.

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10
Q

Which best describes a “subdivision”?

A

A housing development created by dividing a tract of land into individual lots.

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11
Q

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

A

Sweat equity.

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12
Q

A two-step mortgage is defined as

A

It starts out with one rate for the first five or seven years and then changes to a different rate for the remainder of the term of the mortgage amortization.

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13
Q

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

A

Title.

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14
Q

If you were buying a house that included furnishings, you would receive a written document transferring title to the personal property. This document is called a?

A

Bill of Sale.

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15
Q

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

A

Contract.

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16
Q

The part of the purchase price of a property that the buyer pays in cash and does not finance with the mortgage is called the?

A

Down payment.

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17
Q

A female named in a will to administer an estate is called an?

A

Executrix.

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18
Q

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

A

Fee Simple.

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19
Q

Required for properties located in federally designated flood areas, this type of insurance compensates for physical property damage resulting from flooding. What it is called?

A

Flood Insurance.

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20
Q

The following is true of a government loan.

A

They are either insured by FHA, guaranteed by VA or RHS. Mortgages that are not government loans are called conventional loans.

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21
Q

The person conveying an interest in real property is called?

A

The Grantor.

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22
Q

Insurance that covers in the event of physical damage to a property from fire, wind, vandalism, or other hazards is called?

A

Hazard Insurance.

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23
Q

A Liquid Asset is?

A

A cash asset or an asset easily turned into cash.

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24
Q

Another term for the Lender in a mortgage agreement is the?

A

Mortgagee.

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25
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 financing.

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26
Q

A point is?

A

1% of the amount of the mortgage.

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27
Q

What does a power of attorney grant, someone?

A

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

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28
Q

The principal is?

A

The amount borrowed or remaining unpaid, as well as the part of the monthly payment that reduces the remaining balance of the mortgage.

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29
Q

A promissory note is?

A

Is a written promise to repay a specific amount over a specific period of time.

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30
Q

Which of the following best describes a real estate agent?

A

Is a licensed person who negotiates and transacts the sale of real estate.

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31
Q

When does an assumption take place?

A

When the buyer assumes the seller’s mortgage.

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32
Q

A legal document conveying title to a property is called a?

A

Deed.

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33
Q

If you have a loan and transfer the title to another individual without informing the lender, it is likely that the lender will demand payment of the outstanding loan balance. He is able to do this because of a clause in your mortgage called the?

A

Acceleration Clause.

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34
Q

The most common type of bankruptcy is called?

A

The most common type for the individual is a “Chapter 7 No Asset” bankruptcy, which relieves the borrower of most types of debts.

35
Q

Which of the following best describes a “Broker”?

A

A Broker can own a real estate firm, work for another Broker who owns the firm, broker loans in the mortgage industry, but basically is defined as anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee.

36
Q

A normal contingency in a real estate contract would be that the?

A

In a sales contract would be that the purchaser is able to obtain a satisfactory home inspection from a qualified inspector. This condition has to be met before the contract is legally binding.

37
Q

If you go to a bank or mortgage company to apply for a home, what type of mortgage would you be applying for?

A

Home loans which are not VA or FHA are called Conventional Loans (Mortgage).

38
Q

A report of someone’s credit history which is prepared by a credit bureau and used by a lender in the loan qualification process is called a?

A

A Credit Report.

39
Q

If you have not made your mortgage payment within 30 days of the due date, the mortgage is considered to be?

A

In “Default.”

40
Q

A term used by appraisers to estimate the physical condition of a building. It may be different from the building’s actual age.

A

It is called the “effective Age”. Its actual age may be shorter or longer than the effective age.

41
Q

The difference between the fair market value of a property and the amount still owed on the mortgage and other liens is the owner’s financial interest in the property and is called?

A

His “Equity”.

42
Q

You put in a new driveway to your property, but in the process, the paving goes across your property line onto your neighbor’s property a few inches. This is called?

A

An improvement that intrudes illegally on another’s property is called an “Encroachment”. an “Easement” would be a LEGAL intrusion.

43
Q

A government loan that is not a VA loan would be an?

A

An FHA mortgage.

44
Q

If you convey an interest in real propperty to a relative, that person is known as the?

A

The Grantee

45
Q

You decide you want to buy a boat and you want to borrow against the equity in your home. You would get a mortgage loan up to a specific amount which is in second position to your first mortgage. This arrangement is called?

A

A home equity line of credit.

46
Q

You and your sister are joint tenants in a home your mother left you. Your sister has three children in her will and you have one. If she dies first, who does the property go to?

A

It goes entirely to you.

47
Q

What is the best description of a lien?

A

A legal claim against property that must be paid off when it’s sold.

48
Q

What is a Lock-in?

A

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

49
Q

The right of a government to take private property for public use upon payment of its fair market value. It is the basis for condemnation proceedings.

A

It is called Eminent Domain.

50
Q

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

A

A Second Mortgage.

51
Q

An adjustable-rate mortgage, also known as an ARM is?

A

Is one in which the interest rate adjusts periodically, according to corresponding fluctuations in an index.

52
Q

A schedule that shows how much of each payment will be applied to principle and how much toward interest over the life of the loan is called what?

A

An Amortization schedule is a table showing how much of each payment is applied to interest and how much to principal. It also shows the gradual decrease of the loan balance until it reaches zero.

53
Q

The term applied to a mortgage in which you make the payments every two weeks, thereby making thirteen payments a year rather than twelve. This mortgage is paid off faster than a normal mortgage.

A

It is called a Twice-monthly mortgage.

54
Q

The limitation of how much an adjustable-rate mortgage may adjust over a six-month period, an annual period, and over the life of the loan is called?

A

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

55
Q

When is the real estate transaction considered to be “closed”?

A

in some states “closed” means when the documents are recorded at the courthouse, and in others it is a meeting where the documents are signed and money changes hands.

56
Q

A record of an individual’s repayment of the debt, reviewed by mortgage lenders in determining credit risk is called?

A

It is called a “Credit History”.

57
Q

If you sell your property to a neighbor and the lender demands repayment in full, this means you have a ________________ in your mortgage.

A

A due-on-sale provision.

58
Q

The sum total of all the real and personal property owned by an individual at the time of death is called their?

A

An Estate.

59
Q

If you list your property with a real estate agent and sign a written agreement that they are the only ones entitled to a listing for a special time you have given them an?

A

An Exclusive Listing.

60
Q

Fair Market Value could be defined as?

A

Is 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.

61
Q

If a lender agrees to make a loan to a specific borrower on a specific property, he has made a?

A

A Firm Commitment.

62
Q

If you buy a house and build cabinets into the wall, then sell that house, the cabinets stay because they have become a?

A

A Fixture.

63
Q

A home inspection is?

A

A thorough inspection by a professional that evaluates the structural and mechanical condition of the property. A satisfactory home inspection is often a “Contingency”.

64
Q

An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents is called?

A

Homeowner’s insurance.

65
Q

Which of the following is true of a lease option?

A

A lease-option is an alternative financing option that allows home buyers to lease a home with an option to buy. Each month’s rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specific price.

66
Q

In simple terms, a sum of borrowed money (principal) usually repaid with interest is called?

A

A Loan.

67
Q

A property description that is recognized by law and is sufficient to locate and identify the property without oral testimony is known as the property’s.

A

A Legal Description.

68
Q

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

A

Maturity.

69
Q

The person borrowing money in a mortgage agreement is called?

A

The Mortgagor.

70
Q

Which of the following is true about an origination fee?

A

They apply to government and conventional loans. A government loan origination fee is one percent of the loan amount, but additional points may be charged which are called “discount points”. In a conventional loan, the origination fee refers to the total number of points a borrower has to pay.

71
Q

Which of the following falls under the term “personal property”?

A

Personal property is any property that is not part of the real property (such as a sofa, dinning table etc.) Real property would be (A garage attached to a house, The front porch of a house, the windows in a house)

72
Q

In some cases, if a borrower pays off a loan before it is due may encounter a penalty called?

A

A Prepayment Penalty.

73
Q

Which of the following statements is true regarding the term “pre-approved”.?

A

Pre-approved is a loosely used term generally taken to mean a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved.

74
Q

PITI reserves applies to?

A

Must equal the cash amount that the borrower would have to pay for principal, interest, taxes, and insurance for a predefined number of months.

75
Q

Why would a public auction take place?

A

It is a meeting in an announced public location to sell property to repay a mortgage that is in default.

76
Q

The term “realtor” applies to?

A

Is an agent, broker, or associate who holds active membership in a local real estate board which is affiliated with the National Association of Realtors.

77
Q

“Remaining term” refers to?

A

Applies to the original amortization term minus the number of payments that have been applied.

78
Q

Which of the following is not true of a “revolving debt??

A

It 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, the borrower is billed for the amount that is actually borrowed plus any interest due.

79
Q

Which of the following does a survey not show?

A

A survey is a drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

80
Q

What is meant by “seller carry-back”?

A

Is an agreement in which the owner of the property provides financing, often in combination with an assumable mortgage.

81
Q

A title company is one which?

A

Specializes in examing and insuring titles to real estate.

82
Q

A state of local tax which is payable when title passes from one owner to another is called?

A

Transfer tax.

83
Q

What is Truth-in-Lending?

A

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.

2022 NY Real Estate (1 decks)

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