Real Estate Vocabulary Exam I Flashcards
Which of the following describes the term “appreciation”?
Appreciation is the increase in the value of a property due to
changes in market conditions, inflation, or other causes.
When ownership of a mortgage is transferred from one company or individual to another, it is called
When ownership of a mortgage is transferred (assigned) from one
company or individual to another, it is called an assignment.
A mortgage loan which requires the remaining balance be paid at a specific
point in time is called a/an
A mortgage loan that requires the remaining principal balance be
paid at a specific point in time is a balloon mortgage.
The following reason accounts for why bridge loans are not used much any-
more:
More second mortgage lenders now will lend at a high loan to value
Sellers would rather accept offers from Buyers who have already sold their
property
A title which is free of liens or legal questions as to ownership of the property
is called a __________ title.
clear
What is the collateral in a home loan?
The property itself
The adjustment date on an adjustable-rate mortgage is
the date the interest rate changes
What is the deposit made by a potential buyer to show he is serious about
buying a house called?
Earnest money deposit
A right-of-way which gives persons other than the owner access to or over a
property is known as an
easement
Which best describes a “subdivision”?
A housing development created by dividing a tract of land into individual
lots
When someone contributes to the construction or rehabil-
itation of a property with labor or services rather than cash, that
contribution is called
sweat equity
A two-step mortgage is defined as
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 legal document evidencing a person’s right to or owner-
ship of a property is called a
A title is a legal document evidencing a person’s
right to or ownership of a property.
A title is a legal document evidencing a person’s
right to or ownership of a property.
bill of sale
A bill of sale is a written document that transfers
personal property from one owner to another.
An oral or written agreement that is binding in a court of law
is called a
contract
A contract can be oral or written and is binding in a
court of law.
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
down payment
The down payment is the amount paid down in
cash as the initial upfront portion of the total amount due. It is
usually given in cash at the time of finalizing the transaction.
A female named in a will to administer an estate is called an
executrix
The female executor named in a will to administer
an estate is called an executrix.
The greatest possible interest a person can have in real estate is called
fee simple
Required for properties located in federally designated flood
areas, this type of insurance compensates for physical property
damage resulting from flooding. It is called
flood insurance
The following is true of a government loan:
Government loans are either insured by FHA, guar-
anteed by VA or RHS. Mortgages that are not government loans
are called conventional loans.
The person conveying an interest in real property is called
the grantor
