Real Estate Word Power Flashcards

Question 1

Q

“Or More” Clause

Answer

A

A clause in a note or security device that indicates no
pre-payment penalty. The debt can be paid in full at
any time by the debtor.

 **_See_**
 Pre-payment Penalty

Question 2

Q

1099 S

Answer

A

Reports proceeds from a real estate
transaction to the IRS.

Question 3

Q

Abandonment of Homestead

Answer

A

A document recorded to terminate
a homestead exemption.

 **_See_**
 Homestead

Question 4

Q

Abatement

Answer

A

To reduce in amount, such as the removal or
the encapsulation of asbestos.

 **_See_**
 Asbestos

Question 5

Q

Ability to Repay Rule

Answer

A

A residential lender is to verify that the borrower
has a reasonable ability to repay the loan.

 **_See_**
 Dodd-Frank Act, Qualified Mortgage

Question 6

Q

Abstract of Title

Answer

A

A summary of all documents that appear on
public record affecting a parcel of real property.

 **_See_**
 Certificate of Title, Chain of Title

Question 7

Q

Abutting Land

Answer

A

Parcels of land having common boundaries.

Question 8

Q

Acceleration

Answer

A

The Lender’s right to call the entire loan all due &
payable if certain conditions are violated.

 **_See_**
 Alienation Clause, Due on Sale Clause

Question 9

Q

Acceptance

Answer

A

An agreement binding one of the terms of an offer.

 **_See_**
 Bilateral Contract, Contract, Offer, Unilateral Contract

Question 10

Q

Accretion

Answer

A

The gradual build up of land by wind or water.

 **_See_**
 Alluvium, Reliction

Question 11

Q

Accrued Depreciation

Answer

A

For tax purposes, the cumulative amount of
depreciation up to a certain time.

 **_See_**
 Economic Depreciation, Functional Depreciation,
 Physical Depreciation

Question 12

Q

Acknowledgement

Answer

A

Signing a legal document before a Notary Public
or other authorized person.

 **_See_**
 Notary Public

Question 13

Q

Acre

Answer

A

43,560 square feet. If it were in the shape of a
square, it would measure approximately
208.71 feet on each side.

Question 14

Q

Acre Foot

Answer

A

One acre of land with water one foot deep.
325,850 gallons of water.

 **_See_**
 Acre

Question 15

Q

Active Management Area

Answer

A

Areas in Arizona with heavy reliance on ground water;
Phoenix, Prescott, Pinal, Pima, Santa Cruz

 **_See_**
 Assured Water Supply

Question 16

Q

Actual Age

Answer

A

The chronological age of a structure.

 **_See_**
 Economic Life, Effective Age

Question 17

Q

Actual Delivery

Answer

A

The Grantor physically hands the Deed to the Grantee.

 **_See_**
 Escrow Delivery

Question 18

Q

Actual Eviction

Answer

A

Direct actions of a landlord to remove a tenant
from the premises through the legal process.

 **_See_**
 Constructive Eviction

Question 19

Q

Actual Notice

Answer

A

Facts that are known to be true, actual knowledge.

 **_See_**
 Constructive Notice

Question 20

Q

Ad Valorem

Answer

A

According to the value.

Arizona property taxes are based on ad valorem.

 **_See_**
 Assessed Value, Assessment, Dollar Rate, Mill Rate

Question 21

Q

Adequate Water Supply

Answer

A

Subdivisions in Arizona located outside an
Active Management Area are not required
to have a 100 year water supply.

 **_See_**
 Assured Water Supply

Question 22

Q

Adjusted Basis

Answer

A

Purchase price plus the value of any capital improvements
or the original cost minus deductions such as depreciation.

 **_See_**
 Adjusted Purchase Price, Basis

Question 23

Q

Adjusted Gross Income

Answer

A

The total potential gross income minus vacancy and
credit loss. Also called Effective Gross Income.

 **_See_**
 Capitalization Approach, Gross Schedule Income,
 Net Operating Income

Question 24

Q

Adjusted Purchase Price

Answer

A

Original purchase price plus capital improvements.

 **_See_**
 Adjusted Basis, Basis, Capital Improvements

Question 25

Q

Administrator

Answer

A

An individual appointed by the court to handle
the estate of a party who dies without a will.

 **_See_**
 Executor, Intestate, Testate

Question 26

Q

Adult

Answer

A

A person who is in his/her majority -
usually 18 years old.

 **_See_**
 Infancy, Majority

Question 27

Q

Adverse Possession

Answer

A

Acquiring title to real property due to continuous,
open, and hostile use for a prescribed length of time.

 **_See_**
 Easement by Prescription

Question 28

Q

Affidavit of Value

Answer

A

A sworn document that identifies the Grantor,
Grantee and states the value paid for real property.
Signed by both parties and notarized.

Question 29

Q

Agency

Answer

A

A legal relationship in which the Principal
appoints an agent to act in his behalf.

 **_See_**
 Agency Coupled with an Interest, Agent, Client,
 Customer, Dual Agency, Fiduciary, Principal

Question 30

Q

Agency by Ratification

Answer

A

Unauthorized actions of an agent that
are later approved by the Principal.

 **_See_**
 Ostensible Authority

Question 31

Q

Agency Coupled with an Interest

Answer

A

An agency (listing) in which an agent has an interest
(usually financial) in the subject property.

 **_See_**
 Agency, Estoppel

Question 32

Q

Agent

Answer

A

One who is authorized to act for a Principal.

 **_See_**
 Agency, Fiduciary, General Agent, Limited Agent,
 Subagent, Universal Agent

Question 33

Q

Agent by Necessity

Answer

A

An act of law or circumstance requiring a limited agent
to act beyond his authority.
(Principal’s consent not necessary.)

 **_See_**
 Limited Agent, Principal

Question 34

Q

Aggrieved

Answer

A

To cause grief or to injure one’s legal rights.

 **_See_**
 Civil Law, Recovery Fund

Question 35

Q

Agreement for Sale

Answer

A

A document giving equitable title to a buyer (vendee) of
real property. Also called “Contract for Deed.”

Parties are usually called Vendor and Vendee

 **_See_**
 Equitable Title, Land Contract

Question 36

Q

Agreement to Sell

Answer

A

Another name for a purchase contract.

 **_See_**
 Bilateral Contract, Executed Contract, Executory Contract

Question 37

Q

Air Rights

Answer

A

The right to use the air space above a property.

 **_See_**
 Caissons

Question 38

Q

Alienation Clause

Answer

A

A clause in a loan document calling for the entire
balance due and payable when the property is sold.

 **_See_**
 Acceleration Clause, Due on Sale Clause

Question 39

Q

All-Inclusive Deed of Trust

Answer

A

A wraparound loan arrangement whereby a
Deed of Trust is used in place of a mortgage.

 **_See_**
 Deed of Trust, Wraparound

Question 40

Q

Allodial System

Answer

A

The rights of individuals to private
ownership of real property.

 **_See_**
 Bundle of Rights, Feudal System

Question 41

Q

Alluvium

Answer

A

Sand, clay, etc., deposited by flowing water.

 **_See_**
 Accretion

Question 42

Q

ALTA

Answer

A

American Land Title Association

 A national asssociation of title companies.

** See
**Extended Coverage Policy, Lender’s Policy,
Owner’s Policy, Title Insurance

Question 43

Q

Amendatory Clause

Answer

A

Also known as the F.H.A. Escape Clause.

 **_See_**
 Escape Clause

Question 44

Q

Amenities

Answer

A

Those desirable features (extras) of a
property that may benefit an owner.

 **_See_**
 Objective Value, Subjective Value

Question 45

Q

Americans With Disabilities Act (ADA)

Answer

A

Federal law designed to eliminate discrimination
against individuals with disabilities by
requiring equal access to accommodations.

 **_See_**
 Federal Fair Housing

Question 46

Q

Amortization

Answer

A

A schedule of payments that will eventually
extinguish the entire obligation.

 **_See_**
 Balloon Payment, P,I.T.I.

Question 47

Q

Anchor Tenant

Answer

A

A Triple-A tenant that gives exposure
and stability to a shopping center.

Question 48

Q

Annexation

Answer

A

The method of attaching personal property to
real property so that it becomes a fixture.

 **_See_**
 Fixture

Question 49

Q

Annuity

Answer

A

A series of payments made at specified intervals.

Question 50

Q

Anticipation

Answer

A

The present value of property is determined by the
future benefits to be obtained from that property.

 **_See_**
 Conformity, Contribution, Substitution

Question 51

Q

Appraisal

Answer

A

An opinion of the value of a property
given for a specified date in time.

 **_See_**
 Appraisal Methods

Question 52

Q

Appraisal Methods

Answer

A

Market Data Approach, Cost Approach, Income Approach

 **_See_**
 Cost Approach, Income Approach, Market Data Approach

Question 53

Q

Appreciation

Answer

A

The increase in property value due
to external or internal causes.

 **_See_**
 Unearned Increment

Question 54

Q

Appurtenant

Answer

A

That which belongs to the property rights,
privileges, and improvement.

 **_See_**
 Corporeal, Incorporeal, Tenements

Question 55

Q

APR

Answer

A

Annual Percentage Rate
The calculations of all financing charges pertaining
to a loan, expressed in an annual rate.

 **_See_**
 RESPA, Regulation "Z"

Question 56

Q

Arbitrage

Answer

A

To charge a higher interest rate to the buyer
that is currently being charged on the loan.

 **_See_**
 Wrap Around Mortgage

Question 57

Q

Arbitration

Answer

A

The settling of a dispute between
two parties by a neutral party.

 **_See_**
 Interpleader

Question 58

Q

Arm’s Length Transaction

Answer

A

A business transaction in which all parties
have equal bargaining opportunity.

 **_See_**
 Undue Influence

Question 59

Q

Arrears

Answer

A

(Paid) after its usage, such as Arizona property
taxes and interest on real estate loans.

Question 60

Q

Asbestos

Answer

A

A fire resistant mineral used in building and household
products that has been found to cause lung cancer.

 **_See_**
 Abatement

Question 61

Q

Assemblage

Answer

A

The process of combining two or more smaller
parcels of land into one large tract.

 **_See_**
 Plottage

Question 62

Q

Assessed Value

Answer

A

The value placed on real or personal
property for tax purposes.

 **_See_**
 Ad Valorem

Question 63

Q

Bearing Wall

Answer

A

A wall in a building that supports a ceiling load.

 **_See_**
 Joist, Ridgeboard, Stud

Question 64

Q

Assessment

Answer

A

A tax charged to the owner of real property for benefits
received. Tax is usually based on a pro rata share.

 **_See_**
 Ad Valorem, Pro Rata Share

Answer 65

A

A mark made on a permanent object that
has a known location and elevation.

 **_See_**
 Survey

Answer 66

A

All valuable items held by a person
which may be used to liquidate a debt.

 **_See_**
 Capital, Frozen Asset, Liquid Asset

Answer 67

A

One to who interest in property is transferred.

 **_See_**
 Assignment

Answer 68

A

The transferring of interest from one party
to another in a purchase contract or lease.

 **_See_**
 Assignee, Assignor, Nominee

Answer 69

A

The lender under a Deed of Trust security.

 **_See_**
 Mortgagee, Mortgagor, Trustor, Trustee

Answer 70

A

The transferor of all or part of the
tenant’s rights to another party.

 **_See_**
 Sandwich Lease, Sublease

Answer 71

A

A deed that is used to transfer real property to one’s heirs without going through the probate process.

 **_See_**
 Probate

Answer 72

A

The right of a lender to collect rents from the
borrower’s tenants in case of loan default.

 **_See_**
 Foreclosure

Answer 73

A

Leaving personal property to an heir through a Will.

 **_See_**
 Devise, Legacy

Answer 74

A

A contract binding two or more parties.

 **_See_**
 Contract, Unilateral Contract

Answer 75

A

One who transfers a specified interest in property.

 **_See_**
 Assignee, Assignment

Answer 76

A

A document used to transfer personal property.

 **_See_**
 Deed, Tangible

Answer 77

A

The Grantee taking title to real property and assuming
liability for an existing obligation. The original
mortgagor still remains liable.

 **_See_**
 Novation, Subject to

Answer 78

A

Subdivisions in Arizona located in an Active Management
Area need to provide a 100 year water supply.

 **_See_**
 Adequate Water Supply

Answer 79

A

The taking of property into custody, pending
the outcome of a legal action.

 **_See_**
 Garnishment, Judgement Lien, Lis Pendens, Specific Lien

Answer 80

A

A security that covers more than one parcel of land.

 **_See_**
 Lot Release

Answer 81

A

A real estate ad that does not indicate
that a brokerage firm is involved.

Answer 82

A

An illegal action usually concerning fair housing
that creates panic selling for monetary gain.

 **_See_**
 Federal Fair Housing Act, Redlining, Steering

Answer 83

A

State laws regulating the sale of investment securities.

Answer 84

A

One who has written authorization to act for
another under a power of attorney.

 **_See_**
 Agent, General Agent, Limited Agent, Power of Attorney

Answer 85

A

The standard pre-printed language that exists in a contract.

 **_See_**
 Contract of Adhesion

Answer 86

A

Another term for a listing agreement.

 **_See_**
 Listing Agreement

Answer 87

A

A Buyer who is acting in good faith
for valuable consideration.

 **_See_**
 Actual Notice, Constructive Notice

Answer 88

A

The value of an asset carried on the books of business.

 **_See_**
 Depreciation (tax)

Answer 89

A

Anything of value given to make up the difference
in equities between two properties exchanged.

 **_See_**
 Exchanging, Mortgage Relief

Answer 90

A

Failure to perform a contractual obligation.

 **_See_**
 Default, Specific Performance Suit

Answer 91

A

In bankruptcy an automatic injunction
that halts actions by creditors.

 **_See_**
 Chapter 7, Chapter 11, Chapter 13

Answer 92

A

Updating the title report from the original
report to the recording of the loan documents.

 **_See_**
 Preliminary Title Report

Answer 93

A

A third party who, for a fee, acts as an
intermediary in a business transaction.

 **_See_**
 Agent, Commission

Answer 94

A

Court case that overturned Plessy vs. Ferguson

 **_See_**
 Plessy vs. Ferguson

Answer 95

A

The loss of land due to sudden
and violent acts of nature.

 **_See_**
 Accretion, Erosion, Involuntary Alienation

Answer 96

A

Monthly payment including principal, interest,
taxes and insurance.

 **_See_**
 Amortization, Level Payment Mortgage, P,I.T.I.

Answer 97

A

Theory of land use development along major highways.

 **_See_**
 Concentric Theory, Multiple Nuclei Theory

Answer 98

A

An area of land that separates one
type of zoning from another.

 **_See_**
 Zoning

Answer 99

A

A ratio that indicates what portion of an individual’s
income is used to pay all long term debt.

 **_See_**
 Front End Ratio

Answer 100

A

A lump sum paid to liquidate a debt
or paid anytime during a loan period.

 **_See_**
 Interest Only, Straight Note, Term Loan

Answer 101

A

Special construction standards enforced through a permit.

 **_See_**
 Police Power, Zoning

Answer 102

A

The sale of a business which involves transfer of inventory.

 **_See_**
 Uniform Commercial Code

Answer 103

A

An appraisal method used for income property that establishes
a capitalization rate by using mortgage interest rates available,
rate of return required, & the debt and equity in said property.

     **_See_**
     Capitalization Rate (Overall)

Answer 104

A

Legal rights of real property ownership:
Possession, Usage, Transfer, Encumber, Exclusion

 **_See_**
 Allodial System, Feudal System

Answer 105

A

A financial situation when a person’s
liabilities exceed their ability to pay. (assets)

 **_See_**
 Chapter 7, Chapter 11, Chapter 13

Answer 106

A

A licensee who represents the buyer

only in a fiduciary manner.

 **_See_**
 Agent, Client, Fiduciary

Answer 107

A

Title held by a trustee in a Deed of Trust document.
The trustee does not have any of the bundle of rights
provided in ownership.

 **_See_**
 Deed of Trust

Answer 108

A

A tract of land purhased or leased that serves
as the building foundation for air rights.

 **_See_**
 Air Rights

Answer 109

A

Federal law regulating commercial emails,
providing the recipient an opt-out provision.

 **_See_**
 FTC

Answer 110

A

A conveying Deed that has three covenants but no warranties.
Frequently used in an operation of law transaction.

 **_See_**
 Covenants in a Deed, General Warranty Deed

Answer 111

A

Income or sources of income.

 **_See_**
 Asset

Answer 112

A

In the Government Rectangular Survey System, the reference line that runs east and west
and crosses the principal meridian.

 **_See_**
 Government Rectangular Survey System Meridian (Principal)

Answer 113

A

The taxable gain received from the
sale of a capital asset.

 **_See_**
 Basis, Long-Term Capital Gain, Short-Term Capital Gain

Answer 114

A

The actual price paid for the property.

 **_See_**
 Adjusted Basis

Answer 115

A

Any permanent improvements to real property.

 **_See_**
 Adjusted Basis

Answer 116

A

1/100 of one percent.

Answer 117

A

The loss realized from the sale of a capital asset.

 **_See_**
 Capital Gain

Answer 118

A

A method used to estimate the value of property by
dividing the net annual income by a capitalization rate.

     **_See_**
     Capitalization Rate (Overall), Income Approach

Answer 119

A

Also known as the Income Approach in appraising.

     **_See_**
     Capitalization Rate (Overall), Income Approach

Answer 120

A

An overall rate of return which includes a return on
investment on land, improvements and recapture.

 **_See_**
 Capitalization

Answer 121

A

Laws based on an aggregate of previous court decisions.

 **_See_**
 Civil Law, Common Law

Answer 122

A

Cash flow divided by the amount of capital invested.

 **_See_**
 Internal Rate of Return

Answer 123

A

Covenants, Conditions & Restrictions

 **_See_**
 Deed Restrictions

Answer 124

A

A governmental order directing the parties
violating the law to refrain from further activity.

Answer 125

A

An appraisal concept in which the current listings
in a neighborhood set the highest value.

 **_See_**
 Comparable, Floor Value, Value

Answer 126

A

A certificate from the Veteran’s Administration that
establishes the Veteran’s eligibility for a V.A. guaranteed loan.

 **_See_**
 V.A. Guarantee

Answer 127

A

A document issued by the building inspector
showing that a structure is ready for occupancy.

Answer 128

A

A document given to the winner at a tax lien sale.

 **_See_**
 Treasurer's Deed

Answer 129

A

A V.A. appraisal that states the maximum V.A.
guarantee on a certain property.

 **_See_**
 V.A. Guarantee

Answer 130

A

The lien document given to the high bidder
at a mortgage foreclosure sale.

 **_See_**
 Foreclosure, Sheriff's Deed

Answer 131

A

A document issued by a Title examiner stating the
condition of title to a given parcel of property.

 **_See_**
 Abstract of Title, Torrens System

Answer 132

A

A Deed that conveys private property for public usage.

 **_See_**
 Dedication, Deed, Patent Deed

Answer 133

A

A history of constructive notice as it
pertains to a certain parcel of real estate.

 **_See_**
 Constructive Notice, Title, Wild Deed

Answer 134

A

A reorganization under the bankruptcy code usually
pertaining to corporations - the debtor remains in possession.

 **_See_**
 Bankruptcy

Answer 135

A

A reorganization of a wage earner’s assets - under the bankruptcy code - a trustee is appointed

 **_See_**
 Bankruptcy

Answer 136

A

Complete liquidation of a person’s assets
to pay liabilities. A trustee is appointed.

 **_See_**
 Bankruptcy

Answer 137

A

Personal property - also called personalty.

 **_See_**
 Bill of Sale, Personal Property

Answer 138

A

A security device used for personal property.

 **_See_**
 Chattel, Security Agreement, Uniform Commercial Code

Answer 139

A

Another name for a lease.

 **_See_**
 Leasehold

Answer 140

A

In the Government Rectangular Survey System, a
twenty-four mile square parcel containing 16 townships.

 **_See_**
 Government Rectangular Survey System, Township

Answer 141

A

The body of law that protects a party’s private rights.

 **_See_**
 Case Law, Common Law

Answer 142

A

Prohibits discrimination based on race.

 **_See_**
 Federal Fair Housing

Answer 143

A

The party the Broker represents or the party who hires
the broker and agrees to pay a fee upon performance.

 **_See_**
 Customer, Dual Agency, Fiduciary, Principal

Answer 144

A

The day on which all terms & conditions of the contract &
escrow have been met & the title is transferred. COE
usually occurs when all necessary documents are recorded.

 **_See_**
 Constructive Notice, Escrow

Answer 145

A

A claim on Title that hinders it from being marketable.

 **_See_**
 Quiet Title Suit, Quit Claim Deed

Answer 146

A

A history of insurance claims on a specific property.

Answer 147

A

A person who signs a promissory note with another.

 **_See_**
 Joint & Several Liability, Promissory Note

Answer 148

A

An Amendment to a formal Will.

 **_See_**
 Formal Will

Answer 149

A

Property used as security for a loan.

 **_See_**
 Deed of Trust, Hypothecate, Mortgage

Answer 150

A

A secret agreement between two or more
people for an illegal purpose against another.

 **_See_**
 Mutual Assent

Answer 151

A

Title that appears to be valid but due
to a hidden fact is actually void.

 **_See_**
 Adverse Possession, Quit Claim Deed

Answer 152

A

Institutions primarily involved in short
term loans and demand deposits.

 **_See_**
 F.D.I.C., Federal Reserve System

Answer 153

A

The mixing of trust funds with the Broker’s personal funds.

 **_See_**
 Conversion

Answer 154

A

The fees paid a Broker resulting from a transaction.

 **_See_**
 Broker, Procuring Cause

Answer 155

A

Fees charged to tenants for the upkeep of the
common grounds.

 **_See_**
 Gross Lease, Net Lease

Answer 156

A

A system of law that is based on custom
and usage as opposed to statutes.

 **_See_**
 Statutory Law

Answer 157

A

A method of financing infrastructure and improvements in
a development. Bonds will be sold and repaid through
increased property taxes.

 **_See_**
 Property Taxes

Answer 158

A

Property acquired by the efforts of a husband and wife
during their marriage, belonging to them equally.

 **_See_**
 Concurrent Tenancy, Curtesy, Dower, Legal Life Estate,
 Undivided Interest

Answer 159

A

To compress additional soil to those
uneven areas of a lot.

Answer 160

A

An appraisal method that compares similar properties
to establish market value.

 **_See_**
 Ceiling Value, Market Data Approach

Answer 161

A

Damages recovered in payments for actual losses.

 **_See_**
 Actual Damages

Answer 162

A

An individual who is legally capable of
entering into a binding agreement.

 **_See_**
 Incompentent Party

Answer 163

A

Interest paid on interest.

 **_See_**
 Interest, Simple Interest

Answer 164

A

Theory of land use developing around
a central business district.

 **_See_**
 Axial Theory, Multiple Nuclei, Theory

Answer 165

A

Two or more parties own undivided
interest in the same property.

 **_See_**
 Community Property, Joint Tenancy, Tenancy in Common

Answer 166

A

The legal process of taking private property for public use.

 **_See_**
 Eminent Domain, Involuntary Alienation

Answer 167

A

Individual ownership of realty limited to cubage,
plus an undivided interest in the common ground.

 **_See_**
 Horizontal Property Regime, Town House

Answer 168

A

A principle which states that value in a given area can best
be obtained when all structures are in some way uniform.

 **_See_**
 Contribution, Progression, Regression, Substitution

Answer 169

A

That which is given in exchange for the transfer of property
or service. One of the legal requirements for validity of a
contract, deed, lease, or option. Example: The purchase
price would be the consideration for the property.

 **_See_**
 Contract Requirements, Good Consideration,
 Love and Affection, Valuable Consideration

Answer 170

A

A short term loan based on draws
during the construction process.

 **_See_**
 Draws, Takeout Loan

Answer 171

A

When the inaction of the Lessor makes the use of the
property unsuitable, the Lessee moves out. The tenant
moves out through no fault of his own.

 **_See_**
 Actual Eviction

Answer 172

A

A term used when a document is recorded or
printed in a public document.

 **_See_**
 Recording

Answer 173

A

A regulatory agency charged with overseeing financial
services offered to consumers.

 **_See_**
 Ability to Repay, Dodd-Frank Act, Qualified Mortgage

Answer 174

A

Future conditions that must be met for a
contract to be binding.

 **_See_**
 Counteroffer, Executory Contract

Answer 175

A

A life estate that passes to the life tenants’ heirs,
pending the death of the person on whom the
estate is based.

 **_See_**
 Life Estate, Pur Autre Vie, Remainder Estate

Answer 176

A

A map showing the physical features of
land using lines to indicate elevations.

 **_See_**
 Relief Map

Answer 177

A

An agreement based on a promise “consideration”
to do or refrain from doing something.

 **_See_**
 Bilateral Contract, Covenant, Unilateral Contract

Answer 178

A

A real estate transaction where the seller retains legal
title to the property until final payment is made.

 **_See_**
 Agreement for Sale, Equitable Title, Vendee, Vendor

Answer 179

A

Terms of a contract are set by one party. The
other party is instructed to “take it or leave it.”

 **_See_**
 Boiler Plate

Answer 180

A

The rate of interest stated in the contract.

 **_See_**
 Legal Rate, Usury

Answer 181

A

Rental amount due as specified in the lease.

 **_See_**
 Economic Rent, Negative Leasehold, Positive Leasehold

Answer 182

A

Every valid & enforceable real estate contract must have
the following requirements. Competent parties, in writing,
legal description, mutual assent, legal consideration, legal
purpose, signatures, and communication.

 **_See_**
 Statute of Fraud

Answer 183

A

Any improvement to property is only worth its
market value, not the cost of the improvement.

 **_See_**
 Anticipation, Conformity, Substitution

Answer 184

A

A life estate created for the life of
some stated natural person.

 **_See_**
 Natural Person

Answer 185

A

Real estate loans that are not insured
by any governmental agency.

 **_See_**
 Federal Housing Administration (F.H.A.), V.A. Guarantee

Answer 186

A

In real estate law, the unlawful use and
misappropriation of another’s personal property.

 **_See_**
 Commingling

Answer 187

A

Transfer of title to real property.
Such transfer is usually evidenced by a deed.

 **_See_**
 Deed

Answer 188

A

A broker who works with and
through the listing Broker.

 **_See_**
 Buyer Broker, Multiple Listing Service, Subagent

Answer 189

A

Ownership of stock in a corporation which gives the holder
the right to occupy a certain unit -
a long term proprietary lease.

 **_See_**
 Condominium, Town House

Answer 190

A

The written authorization of the Board of Directors for
the corporation to act in a certain manner.

 **_See_**
 Corporation, Legal Person

Answer 191

A

A legal person created by law which is owned
by stockholders who act as one.

 **_See_**
 Corporate Resolution, Legal Person

Answer 192

A

Real property such as land and fixtures.

 **_See_**
 Incorporeal

Answer 193

A

A Deed that corrects an error on
a previously recorded Deed.

Answer 194

A

In the Government Rectangular Survey System, the
lines that compensate for the curvature of the earth.

 **_See_**
 Check Lines, Government Rectangular Survey System

Answer 195

A

The final step in an appraisal that weighs (usually by
percentage) the comparables used to arrive at a final
estimate of value. Also called Reconciliation.

Answer 196

A

An appraisal process that estimates the value of
property by using replacement or reproduction costs
minus depreciation plus the value of the land.

 **_See_**
 Depreciation (Appraisal), Income Approach, Market Data
 Approach, Replacement Cost, Reproduction Cost

Answer 197

A

A new offer made in response to an original offer.

 **_See_**
 Contingency

Answer 198

A

A promise made between two or more parties,
usually pertaining to contracts and deeds.

 **_See_**
 Bargain and Sale Deed, Bilateral Contract, Unilateral
 Contract

Answer 199

A

The Grantor promises that he has revealed
all items that burden the property.

 **_See_**
 Covenants in a Deed

Answer 200

A

The seller of a business agrees not to open a like
business for a specific period of time.

Answer 201

A

A promise that the Grantee has the
highest claim to ownership.

 **_See_**
 Covenants in a Deed

Answer 202

A

The Grantor promises that he has possession of the
property and has the right to convey it.

 **_See_**
 Covenants in a Deed

Answer 203

A

Promises in a deed made by the Grantor for the
protection of the Grantee, usually found in Bargain & Sale
and Warranty Deeds.

 **_See_**
 Covenant Against Encumbrances, Covenant of Quiet
 Enjoyment, Covenant of Seizin

Answer 204

A

A husband’s right or interest in his wife’s
property upon her death.
*Not legal in AZ

 **_See_**
 Dower, Legal Life Estate

Answer 205

A

Usually referred to as the Buyer or Prospect.

 **_See_**
 Client

Answer 206

A

Forgiveness of an obligation, usually
results in a taxable event.

Answer 207

A

The payments made to satisfy a mortgage loan,
including principal and interest.

 **_See_**
 Amortization

Answer 208

A

Party who died.

 **_See_**
 Intestate, Testate

Answer 209

A

The voluntary transferring of private property
for public usage.

 **_See_**
 Cession Deed

Answer 210

A

The legal written document used to transfer
ownership of real property.

 **_See_**
 General Warranty Deed, Quit Claim Deed,
 Special Warranty Deed

Answer 211

A

An out of court settlement whereby a Lender accepts
the Deed from the Borrower - friendly foreclosure.

 **_See_**
 Foreclosure

Answer 212

A

An instrument issued by the trustee when the debt
secured by a Deed of Trust is paid in full.

 **_See_**
 Defeasance Clause, Satisfaction of Mortgage

Answer 213

A

Security for a debt using a neutral third party
(Trustee) who holds legal title.

 **_See_**
 Beneficiary, Deed of Reconveyance, Trustee, Trustor

Answer 214

A

Limits placed on public record by the Grantor that
affect property usage by future owners.

 **_See_**
 CC&R's, Reservations

Answer 215

A

Failure to comply with a contractual agreement.

 **_See_**
 Breach of Contract, Foreclosure, Forfeiture,
 Specific Performance Suit

Answer 216

A

Clause stating that when a condition is met, the Lender’s
claim has been nullified and requiring the lender to issue
a satisfaction piece.

 **_See_**
 Deed of Reconveyance, Satisfaction of Mortgage

Answer 217

A

A fee simple estate subject to certain limitations
imposed by the Grantor.

 **_See_**
 Fee Simple Conditional, Fee Simple Determinable

Answer 218

A

Loss of value due to lack of maintenance.

 **_See_**
 Depreciation (Curable), Depreciation (Incurable),
 Physical Depreciation

Answer 219

A

The legal right of Lender through court action to collect
from a borrower the remaining debt still owed after a
foreclosure.

 **_See_**
 Foreclosure

Answer 220

A

The final transferring of a Deed from Grantor to Grantee.
A prerequisite for valid conveyance.

 **_See_**
 Actual Delivery, Escrow Delivery

Answer 221

A

The conveying of an interest in property by means of
a lease. A giving up of some interest but not all rights
in ownership.

 **_See_**
 Lease

Answer 222

A

The loss of value due to any and all causes. Functional,
economic, physical social obsolescence.

 **_See_**
 Economic Depreciation, Functional Depreciation,
 Physical Depreciation

Answer 223

A

A defect in real property that is economically
feasible to correct.

 **_See_**
 Economic Depreciation, Functional Depreciation,
 Physical Depreciation

Answer 224

A

A defect in real property that would not be economically
feasible to correct.

 **_See_**
 Economic Depreciation, Functional Depreciation,
 Physical Depreciation

Answer 225

A

For income tax purpose, a deduction taken for
an investment.

 **_See_**
 Economic Life, Straight Line Depreciation

Answer 226

A

Distribution of property to heirs when one
dies intestate.

 **_See_**
 Escheat, Intestate, Probate

Answer 227

A

The Broker who is responsible for day to day
operation of the business.

 **_See_**
 Broker, Cooperating Broker

Answer 228

A

The conveyance of real property through a Will.

 **_See_**
 Bequest, Devisor, Legacy

Answer 229

A

The one who receives real property
through a Will.

 **_See_**
 Devise

Answer 230

A

The person who transfers real property
through a Will.

 **_See_**
 Bequest, Legacy

Answer 231

A

HUD approved lenders that approve FHA
loans by themselves.

 **_See_**
 HUD

Answer 232

A

The direction in which a residential community
appears to be developing.

 **_See_**
 Axial Theory, Concentric Theory, Multiple Nuclei Theory

Answer 233

A

A document signed by a party to disavow any
interest in a particular property.

 **_See_**
 Quit Claim Deed

Answer 234

A

A loan charge in addition to interest that increases
the Lender’s yield.

 **_See_**
 APR, Regulation Z, Yield

Answer 235

A

Failure to give equal treatment - this concept
is usually referring to a protected class of people.

Answer 236

A

Landlord’s right to seize a Lessee’s personal property
for past due rent. (Commercial property only.)
Unlawful in residential rental properties.

 **_See_**
 Actual Eviction

Answer 237

A

A recorded judgment.

 **_See_**
 Constructive Notice

Answer 238

A

Document stating that the death of the Grantor
does not terminate a valid escrow.

 **_See_**
 Escrow Delivery

Answer 239

A

A federal law that places regulations on
financial institutions.

 **_See_**
 Ability to Repay, Dodd-Frank Act, Qualified Mortgage

Answer 240

A

Tax rate charged per $100 of assessed value.

 **_See_**
 Mill Rate, Tax Rate

Answer 241

A

The parcel of land that benefits from the easement
against the servient estate.

 **_See_**
 Easement Appurtenant, Servient Estate

Answer 242

A

A wife’s right in her husband’s property
upon his death.
Not legal in Arizona.

 **_See_**
 Curtesy, Legal Life Estate

Answer 243

A

A change from a higher to a lower zoning
classification, such as commercial to residential.

 **_See_**
 Zoning

Answer 244

A

Monies released under the terms of an
open-ended loan.

 **_See_**
 Construction Loan, Obligatory Advances

Answer 245

A

A transaction that involves two principals.
When a broker represents both buyer and seller.

 **_See_**
 Agency, Client, Principal

Answer 246

A

The use of good faith and a degree of care required
to perform one’s obligations.

Answer 247

A

The Lender’s right to call the entire loan balance
due upon resale of property.

 **_See_**
 Acceleration Clause, Alienation Clause

Answer 248

A

The use of force in obtaining an agreement.

 **_See_**
 Menace, Undue Influence, Voidable

Answer 249

A

Advance money given by a Buyer to show
good faith in a purchase agreement.

 **_See_**
 Equitable Interest

Answer 250

A

The right one has to use the land of another
for a specific purpose.

 **_See_**
 Easement Appurtenant, Easement by Prescription
 Easement in Gross, Encumbrance

Answer 251

A

An easement that is attached to and transfers
with title to real property.

 **_See_**
 Easement, Dominant Estate, Servient Estate

Answer 252

A

An easement created by law, usually to have ingress
and egress to land-locked property.

 **_See_**
 Easement, Ingress and Egress

Answer 253

A

The legal process of acquiring an easement due
to adverse use that is open, constant and notorious
for a period of time.

 **_See_**
 Adverse Possession, Easement

Answer 254

A

A personal right given to an individual or business to use
the land of another. This privilege is irrevocable.

 **_See_**
 Easement Appurtenant

Answer 255

A

The edge of a roof that projects beyond a building.

 **_See_**
 Rafters

Answer 256

A

Loss of value due to exterior forces beyond the
property owner’s control, which is always incurable.

 **_See_**
 Functional Depreciation, Physical Depreciation

Answer 257

A

In appraisal, the number of years a property
will contribute value to the land.

 **_See_**
 Salvage Value

Answer 258

A

The amount of rent a property could or would bring
in an open market at a given time.

 **_See_**
 Contract Rent, Excess Rent

Answer 259

A

The age of a property based on its appearance.

 **_See_**
 Actual Age, Deferred Maintenance

Answer 260

A

The view of the property as seen from the street.

 **_See_**
 Setback

Answer 261

A

To improve the item described by adding fictitious
details. Overstating one’s opinion.

 **_See_**
 Misrepresentation, Puffing the Goods

Answer 262

A

The pre agreed right that the Seller or Lessee has
to return to the land to harvest crops.

 **_See_**
 Industrial Fruit

Answer 263

A

The right of the government to permanently take
private property for public use with just compensation.

 **_See_**
 Condemnation Suit

Answer 264

A

Legislative authority extended to municipal
government to enact zoning laws.

 **_See_**
 Police Power

Answer 265

A

Illegal intrusion upon another’s real property -
usually physical in nature.

 **_See_**
 Encumbrance

Answer 266

A

Any lien, liability, or restriction upon ownership
of real estate that will lessen its value.

 **_See_**
 Deed Restrictions, Easement, Encroachment, Lien

Answer 267

A

Environmental Protection Agency - A federal agency
that sets standards on environmental issues.

Answer 268

A

A law that states if a contract must be in writing, then
the agent’s authority to act for a principal must also be
in writing. If a Purchase Contract needs to be in writing
to be enforceable, then any changes or alterations must
also be in writing.

 **_See_**
 Parol Evidence Rule

Answer 269

A

The Buyer’s interest in property at the signing of a
purchase contract. Vendee’s interest in an agreement
for sale.

 **_See_**
 Earnest Money, Forfeiture

Answer 270

A

The Mortgagor’s chance to redeem the property prior
to sheriff’s sale by paying th entire debt.

 **_See_**
 Acceleration, Statutory Period of Redemption

Answer 271

A

The Vendee’s right to ownership of real property.
(Vendor still retains legal title.)

 **_See_**
 Agreement for Sale, Vendee, Vendor

Answer 272

A

“Dollar value” interest remaining after liens are deducted
from current property value.

 **_See_**
 Equity Build-up, Lien

Answer 273

A

The increase of equity due to the reduction of
the loan amount.

 **_See_**
 Principal

Answer 274

A

The gradual wearing away of land by acts of wind or water.

 **_See_**
 Accretion, Avulsion

Answer 275

A

A contract clause that allows the interest to
increase upon loan assumption.

 **_See_**
 Assumption of Mortgage

Answer 276

A

The Buyer is not obligated to buy if the FHA appraisal
is less than the contract price.

 **_See_**
 Amendatory Clause

Answer 277

A

The right of the state to take property of the deceased who
dies without a Will and has no heirs after a statutory
period of time.

 **_See_**
 Government Rights, Intestate

Answer 278

A

Depositing documents with a neutral third party until
the terms of an agreement are met.

 **_See_**
 Close of Escrow, Doctrine of Relation Back, Escrow Agent

Answer 279

A

A third party that acts on instructions of the Buyer & Seller.
When all terms and conditions are met, the agent will
close the transaction.

 **_See_**
 Close of Escrow, Doctrine of Relation Back, Dual Agency,
 Escrow Delivery, Interpleader

Answer 280

A

The act of delivering the Deed to a 3rd party w/instructions
to deliver said Deed to the Grantee after all conditions
are met.

 **_See_**
 Actual Delivery

Answer 281

A

A right or interest one has in all property real & personal.

 **_See_**
 Freehold, Less than Freehold

Answer 282

A

A right or interest one has in real property.

 **_See_**
 Fee Simple, Freehold, Legal Life Estate,
 Less than Freehold

Answer 283

A

A legal doctrine which prohibits a person from going
back on previous facts or acts of conduct.

 **_See_**
 Estoppel Certificate

Answer 284

A

A document used to verify the terms and
balances of existing leases or loans.

Answer 285

A

The method used to show one’s proof of ownership.

 **_See_**
 Certificate of Title, Title Insurance, Torrens System

Answer 286

A

Contract rent that exceeds the economic rent.

 **_See_**
 Contract Rent, Economic Rent

Answer 287

A

A transaction where like properties are traded,
usually for tax benefits.

 **_See_**
 Boot, Mortage Relief, Tax Deferment

Answer 288

A

Appointing one Broker in a listing agreement w/the owner
reserving the right to sell the property without
paying a commission

 **_See_**
 Exclusive Right to Sell

Answer 289

A

Appointing one Broker in a listing agreement, who will be
paid regardless of who sells the property, including
the owner.

 **_See_**
 Bilateral Contract, Exclusive Agency Listing
 Listing Agreement

Answer 290

A

A clause in a document that relieves the Landlord of any
blame or guilt as relating to the actions of the Tenants.
An Escape Clause.

 **_See_**
 Hold Harmless Clause, Indemnify

Answer 291

A

A contract in which all terms & conditions have been met.

 **_See_**
 Executory Contract

Answer 292

A

A person appointed in a Will to carry out its provisions.

 **_See_**
 Administrator, Testate

Answer 293

A

A contract in which all terms & conditions have
not yet been met.

 **_See_**
 Contingency, Executed Contract

Answer 294

A

A contract in which the terms are specifically
stated either orally or in writing.

 **_See_**
 Statute of Frauds

Answer 295

A

A title insurance policy that normally covers items in the
public record plus questions of survey and
unrecorded mechanics liens.

 **_See_**
 A.L.T.A.

Answer 296

A

The front of a building; the part seen from the street.

 **_See_**
 Elevation

Answer 297

A

Federal Deposit Insurance Corporation
Insures deposits for the depositor up to a
certain dollar amount.

 **_See_**
 Federal Reserve System

Answer 298

A

A protected class under the Fair Housing Law -
A family is one or more persons 18 years or
older living with a parent or guardian.

 **_See_**
 Federal Fair Housing Act 1988

Answer 299

A

Law enacted by Congress that prohibits discrimination
by race, color, religion, national origin, sex, familial status,
& handicap. The law relates primarily to the sale or lease
of residential real estate.

Answer 300

A

Prohibits discrimination based on race, religion, color,
creed, national origin and sex.

Answer 301

A

Prohibits discrimination based on handicap and familial
status - these items were added to the 1968 act.

Answer 302

A

FHA - insures lenders against loss by requiring the
borrower to pay a mortgage insurance premium.

 **_See_**
 MIP

Answer 303

A

Regulatory agency for Federally chartered commercial
banks.

 **_See_**
 Commercial Banks, FDIC

Answer 304

A

The highest form of ownership under the
allodial system.

 **_See_**
 Allodial System, Freehold

Answer 305

A

If previously agreed conditions are violated, the Grantor
must take action to terminate the Grantee’s interest in
property (Not automatic termination).

 **_See_**
 Defeasible Fee, Fee Simple Determinable

Answer 306

A

A fee interest in real estate that may be automatically
terminated if certain circumstances are violated.

 **_See_**
 Defeasible Fee, Fee Simple, Fee Simple Conditional

Answer 307

A

A freehold estate that may terminate when and if the
Grantor’s specified heirs die.
“Unlawful in most states.”

 **_See_**
 Feudal System

Answer 308

A

A federal agency that coordinates disaster relief, also
designates flood areas and creates flood maps.

Answer 309

A

An FHA appraisal based on a future loan commitment.
The property has qualified but a buyer has not yet qualified.

 **_See_**
 FHA - Firm Commitment

Answer 310

A

All rights of land ownership remain with the king.

 **_See_**
 Allodial System

Answer 311

A

A final statement that FHA will insure a specified loan.

 **_See_**
 FHA - Conditional Commitment

Answer 312

A

FHA insures home improvement loans.

 **_See_**
 Federal Housing Administration, MIP

Answer 313

A

FHA insures home”203B” loans.

 **_See_**
 Federal Housing Administration, MIP

Answer 314

A

Originally established FNMA

 **_See_**
 FNMA, Secondary Market

Answer 315

A

Federal Home Loan Mortgage Corporation
(Freddie Mac), active in the secondary
mortgage market.

 **_See_**
 FNMA, GNMA, Secondary Market

Answer 316

A

Fair Isaac Company - calculates credit scores

Answer 317

A

The trust and confidence an agent owes a principal
in an agency relationship.

 **_See_**
 Agency, Principal

Answer 318

A

A document recorded to protect a creditor’s interest
in personal property.

 **_See_**
 Bulk Transfer, Security Agreement,
 Uniform Commercial Code

Answer 319

A

Foreign Investment Real Property Tax Act

Answer 320

A

A party who has the first opportunity to meet an offer
to either buy or lease a property.

 **_See_**
 Executory Contract, Option, Unilateral Contract

Answer 321

A

A long narrow crack in the earth’s surface.

Answer 322

A

Personal property that is now affixed and is
considered real property.

 **_See_**
 Annexation, Personal Property, Trade Fixture

Answer 323

A

A loan payment plan in which the payments increase
over a set number of years.

 **_See_**
 Variable Rate Mortgage

Answer 324

A

An area of low-lying ground adjacent to a stream
that is subject to flooding.

 **_See_**
 Flood Way

Answer 325

A

A channel for diverting flood water.

 **_See_**
 Flood Plain

Answer 326

A

An appraisal concept which states that the sales price of
comparable properties set the lowest market price.

 **_See_**
 Ceiling Value, Comparable

Answer 327

A

Federal National Mortgage Association
(Fannie Mae), purchases paper from primary lenders.

 **_See_**
 FHLMC, GNMA, Primary Lenders, Secondary Market

Answer 328

A

A legal action that a landlord can take if the existing
occupant refuses to leave.

 **_See_**
 Holdover Tenant

Answer 329

A

An action by which property used as security is
sold to pay debt.

 **_See_**
 Deed in Lieu of Foreclosure, Deficiency Judgment,
 Equitable Period of Redemption, Reinstatement Period,
 Statutory Period of Redemption

Answer 330

A

The losing of equity one has in a property due to
nonperformance of an obligation - such as in an Agreement
for Sale. The process by which a Vendor retakes the property
from the Vendee due to default by the Vendee.

 **_See_**
 Agreement for Sale, Equitable Interest

Answer 331

A

The supporting portion of a structure on which
all else rests.

 **_See_**
 Monolithic Slab

Answer 332

A

Irregular sctions due to the curvature of the Earth.
There are 11 fractional and 25 full sections in a township.

 **_See_**
 Section, Township

Answer 333

A

Intentional deception that, when relied upon, causes
financial loss or personal injury.

 **_See_**
 Collusion, Misrepresentation, Puffing the Goods

Answer 334

A

An estate held in fee simple or for life -
no pre-determined time for termination.

 **_See_**
 Conventional Life Estate, Fee Simple

Answer 335

A

When asbestos particles become air-born.

 **_See_**
 Asbestos

Answer 336

A

A ratio that indicates what portion of an individuals
income is used to make mortgage payments.

 **_See_**
 Back End Ratio

Answer 337

A

An asset that cannot be easily converted into cash
without taking a loss.

 **_See_**
 Liquid Asset

Answer 338

A

Federal Trade Commission
regulates the “CAN-SPAM ACT”

 **_See_**
 CAN-SPAM ACT

Answer 339

A

Physical features within the property lines that are
obsolete and no longer desirable. May be curable
or incurable.

 **_See_**
 Depreciation (Appraisal), Economic Depreciation,
 Physical Depreciation

Answer 340

A

A fee paid to the VA to guarantee a VA loan.

 **_See_**
 VA Guarantee

Answer 341

A

A pitched roof with two sloping sides.

Answer 342

A

A court directive to the party who is holding the
assets of another to freeze said assets.

 **_See_**
 Attachment, Specific Lien

Answer 343

A

An agent having the power to perform any and all acts
on behalf of a Principal as expressed in a legal document.

 **_See_**
 Agency, Limited Agent, Universal Agent

Answer 344

A

A lien that encumbers both real and personal property.

 **_See_**
 Lien, Specific Lien

Answer 345

A

Each partner is responsible and liable for the total
profit or loss of the operation regardless of
the initial investment.

 **_See_**
 Limited Partnership, Partnership

Answer 346

A

A conveying deed in which the grantor states that he
or she will forever guarantee the title of real property.

 **_See_**
 Special Warranty Deed, Warranty Forever, Warranty of
 Further Assurance

Answer 347

A

A deed conveyed with love and affection
as the consideration.

 **_See_**
 Consideration, Good Consideration, Quit Claim Deed

Answer 348

A

Government National Mortgage Association
(Ginnie Mae) active in secondary mortgage market.

 **_See_**
 FHLMC, FNMA, Secondary Market

Answer 349

A

Love and affection given in exchange for real property.

 **_See_**
 Consideration, Gift Deed, Valuable Consideration

Answer 350

A

An estimate of all anticipated closing costs regarding a
residential transaction. This estimate is required to be
given to all buyers by the lender under RESPA guidelines.

 **_See_**
 Regulation Z

Answer 351

A

The intangible value of a business due to the habit of
patronage. Good will may be depreciated for accounting
purposes.

 **_See_**
 Covenant Not to Compete

Answer 352

A

In a Government Rectangular Survey System, those
irregular sections due to curvature of the Earth or acts
of nature.

 **_See_**
 Check Lines, Correctional Lines, Fractional Sections,
 Government Rectangular Survey System

Answer 353

A

A governmental method of surveying land located by
using a principal base line and principal meridian.

 **_See_**
 Base Line (Principal), Meridian (Principal), Section,
 Township

Answer 354

A

Taxation, Escheat, Eminent Domain, Police Power

 **_See_**
 Enabling Legislation

Answer 355

A

A lease that will go up in rent at specified intervals.

 **_See_**
 Index Lease, Percentage Lease

Answer 356

A

A clause that indicates something was once allowed
and may still continue despite changes in the law.

 **_See_**
 Non-conforming Use, Variance

Answer 357

A

The transferring of real property by a deed.

 **_See_**
 Deed, Grantee, Grantor

Answer 358

A

The person who receives an interest in real property
via a deed.

 **_See_**
 Deed, Grantor

Answer 359

A

The words in a deed that state, “I hereby grant
and convey…”

 **_See_**
 Hebendum Clause

Answer 360

A

The person who conveys an interest in real property
via a deed.

 **_See_**
 Deed, Grantee

Answer 361

A

A lease where the lessor is responsible for all expenses.

 **_See_**
 Net Lease

Answer 362

A

A figure used that, when multiplied by the annual
gross rent, will estimate the property value.

 **_See_**
 Capitalization Rate

Answer 363

A

The total potential of all income that can be derived
from an investment property.

 **_See_**
 Adjusted Gross Income, Net Operating Income

Answer 364

A

A lease for land only.

 **_See_**
 Subordination Clause

Answer 365

A

The classification of all underground water
except for underground streams.

 **_See_**
 Surface Water

Answer 366

A

One appointed by the court to handle the
affairs of an incompetent party.

 **_See_**
 Incompetent Party, Personal Representative

Answer 367

A

The degree, quantity or quality of the estate conveyed.

 **_See_**
 Deed, Life Estate

Answer 368

A

A protected class under the Fair Housing Law;
a handicap is considered an impairment that
substantially limits life’s activities.

 **_See_**
 Federal Fair Housing Act 1988

Answer 369

A

A mortgage that is given for direct cash.

 **_See_**
 Soft Money Mortgage

Answer 370

A

The right to will another personal and real property.

 **_See_**
 Incorporeal

Answer 371

A

Highest place on shoreline reached by rising water.

 **_See_**
 Non-navigable Stream

Answer 372

A

Land usage at the time of an appraisal which
would create the highest net return.

 **_See_**
 Appraisal

Answer 373

A

A contract clause stating one party agrees to protect
another from losses.

 **_See_**
 Exculpatory Clause, Indemnify

Answer 374

A

The party who is holding a note for value and has
the protection of law for its enforcement.

 **_See_**
 Negotiable Instrument, Promissory Note

Answer 375

A

A tenant who remains in possession of the
property after lease expiration.

 **_See_**
 Actual Eviction, Tenancy at Sufferance

Answer 376

A

Hand-written Will that is signed by the maker
but does not require witnessing.

 **_See_**
 Formal Will, Nuncupative Will, Will

Answer 377

A

A legal right of a homeowner to protect a portion
of his equity against a forced sale.

 **_See_**
 Abandonment of Homestead, Legal Life Estate

Answer 378

A

A word used in appraising that describes
similar or like properties.

 **_See_**
 Conformity

Answer 379

A

Condominium - the owner of the unit only has cubage rights;
air rights and sub-surface rights are not included.

 **_See_**
 Town House

Answer 380

A

Department of
Housing and Urban Development

 **_See_**
 Federal Housing Administration (FHA), GNMA

Answer 381

A

To pledge property as collateral and still retain
possession of the pledged property.

 **_See_**
 Deed of Trust, Mortgage

Answer 382

A

An expression of intent to do something,
not a binding agreement.

 **_See_**
 Unenforceable

Answer 383

A

An agency created by the actions or words
of the parties involved.

 **_See_**
 Agency, Ostensible Authority

Answer 384

A

An amount held by the lender to pay the
taxes and insurance.

 **_See_**
 PITI

Answer 385

A

Irrigation Non Expansive Area

 **_See_**
 Assured Water Supply

Answer 386

A

Incomplete (not perfected) - additional steps must
be taken to strengthen the claim.

 **_See_**
 Community Property, Mechanic's Lien

Answer 387

A

An appraisal process that estimates the value of income
property by converting annual net income into value.

 **_See_**
 Adjusted Gross Income, Capitalization, Capitalization
 Rate (Overall), Net Operating Income

Answer 388

A

One who is not legally qualified to manage his or her own
affairs due to age, mental capabilities, or legal action.

 **_See_**
 Competent Pary, Guardian, Infancy

Answer 389

A

The rights accompanying ownership of property.

 **_See_**
 Easement, Hereditament

Answer 390

A

An agreement to hold harmless another from damages.

 **_See_**
 Exculpatory Clause, Hold Harmless Clause

Answer 391

A

A lease that is based on a certain price index such as
the Consumer Price Index found in commercial leases.

 **_See_**
 Graduated Lease

Answer 392

A

A rate in a variable rate loan that is tied to a T-Bill,
11th District or U.S. Cost of Funds.

 **_See_**
 Variable Rate Mortgage

Answer 393

A

Fruits or crops that are produced on a property for
income - personal property.

 **_See_**
 Emblements

Answer 394

A

A person who is under the legal age
(usually under 18 years).

 **_See_**
 Incompetent Party, Majority

Answer 395

A

The right to enter and exit a parcel of land.

 **_See_**
 Easement, Landlocked, Right of Way

Answer 396

A

A tax method of reporting only the amount of income
actually received as it is received.

 **_See_**
 Tax Deferment

Answer 397

A

The rights that accompany personal property.

 **_See_**
 Goodwill, Tangible

Answer 398

A

A federal registration system when 25 or more lots are
offered for sale or lease inter-state.

Answer 399

A

Rent paid for the use of money.

 **_See_**
 Compound Interest, Simple Interest, Usury

Answer 400

A

Payment consists of interest only and no
repayment of principal.

 **_See_**
 Amortization, Straight Note, Term Loan

Answer 401

A

A short term loan sometimes called a gap or bridge loan.

 **_See_**
 Construction Loan, Take Out Loan

Answer 402

A

A rate of discount that is calculated on the basis of
projected cash flows from the initial investment.

Answer 403

A

A third party (court) who is called upon to settle a
dispute, usually in an escrow situation.

 **_See_**
 Escrow, Escrow Agent

Answer 404

A

A person who dies without a Will.

 **_See_**
 Descent, Testate

Answer 405

A

The transferring of ownership against one’s will.

 **_See_**
 Avulsion, Condemnation Suit, Foreclosure

Answer 406

A

A lien placed on property without the owner’s
permission or by act of law.

 **_See_**
 Mechanic's Lien, Property Tax, Statutory Lien

Answer 407

A

One party only or all parties together can be
held liable for the debt.

Answer 408

A

Co-ownership that features the right of survivorship
and requires the four unities:
Possession, Interest, Time, Title.

 **_See_**
 Concurrent Tenancy, Unities of Joint Tenancy

Answer 409

A

The horizontal supports that hold up a floor or ceiling.

 **_See_**
 Stud

Answer 410

A

A court case that prohibits discrimination by race both
in private and governmental properties.

 **_See_**
 Civil Rights Act of 1866

Answer 411

A

An involuntary lien on both real and personal property
- a general lien.

 **_See_**
 General Lien, Specific Lien

Answer 412

A

Any security agreement having a priority after
the first mortgage.

 **_See_**
 Subordination Clause

Answer 413

A

A form to report income or loss in a business,
partnership, or trust.

Answer 414

A

The legal time has expired to file a valid claim.

 **_See_**
 Statute of Limitations

Answer 415

A

Contract where the Seller finances the Buyer’s
purchases of realty and retains legal title.

 **_See_**
 Equitable Title, Forfeiture, Vendee, Vendor

Answer 416

A

A parcel of land having no ingress or egress without
crossing over another’s property.

 **_See_**
 Easement by Necessity, Ingress and Egress

Answer 417

A

One who owns real property but transfers a leasehold
interest to another with the reversion right.

 **_See_**
 Lease, Leasehold, Lessee, Lessor

Answer 418

A

Real Estate is subject to the laws of the state
in which it is located.

Answer 419

A

A legal relationship in which one is hired to represent
another with trust and confidence. The party hired
is referred to as the Agent.

 **_See_**
 Agency, Buyer Broker, Fiduciary, Listing Agreement

Answer 420

A

A contract requirement stating that a valid contract must be
for an item or purpose that is legal in the eyes of the law.

 **_See_**
 Contract Requirements

Answer 421

A

An agreement giving possession and use of property in
return for a specified consideration.

 **_See_**
 Leasehold, Tenancy at Will, Tenancy for Years,
 Tenancy from Period to Period

Answer 422

A

The Lessee’s right to use property for a
specified period of time.

 **_See_**
 Lease, Less than Freehold

Answer 423

A

Money or personal property left to another through a Will.

 **_See_**
 Bequest, Devise, Will

Answer 424

A

A formal description that defines the boundaries of real
property. This description is sufficient to locate the property
and may be enforced through a court of law.

 **_See_**
 Government Rectangular Survey System, Legal
 Description (Informal), Metes & Bounds, Plat Map

Answer 425

A

Identifying a parcel of land by a street address
or local terminology.

     **_See_**
     Legal Description (Formal), Metes & Bounds, Monument

Answer 426

A

A non-inheritable right provided by law.

 **_See_**
 Community Property, Curtesy, Dower, Homestead

Answer 427

A

A person created by law such as a corporation.

 **_See_**
 Corporation, Natural Person

Answer 428

A

The interest rate the court assigns to those documents
that have no specified interest rate.

 **_See_**
 Contract Rate

Answer 429

A

The lawful claim to ownership.

 **_See_**
 Chain of Title, Title

Answer 430

A

One who receives money or personal property
through a Will.

 **_See_**
 Bequest, Devise, Legacy

Answer 431

A

An extended coverage Title Insurance policy
purchased for the Lender.

 **_See_**
 Extended Coverage Policy, Owner's Policy

Answer 432

A

An estate of possession but not ownership - a lease.

 **_See_**
 Freehold, Leasehold

Answer 433

A

The tenant in a lease.

 **_See_**
 Lease, Lessor

Answer 434

A

A Landlord in a lease.

 **_See_**
 Landlord

Answer 435

A

A repayment plan that includes principal & interest.
The total of which is the same amount each payment.

 **_See_**
 Amortization

Answer 436

A

Using borrowed funds to finance investments with
little or no personal cash invested.

 **_See_**
 Loan to Value Ratio

Answer 437

A

A personal privilege one has to use the land of another.
(Privilege revocable)

 **_See_**
 Easement

Answer 438

A

A money claim against property.

 **_See_**
 Encumbrance, General Lien, Specific Lien

Answer 439

A

States in which the Lender of cash does not hold legal
title, but only a lien as security against title.

 **_See_**
 Title Theory State

Answer 440

A

An interest in property that is limited to the life grantee -
or the life of some specified person.

 **_See_**
 Contingent Remainder, Legal Life Estate, Remainder
 Estate, Reversionary Estate

Answer 441

A

One who possesses a life estate.

 **_See_**
 Conventional Life Estate, Remainder (Vested)

Answer 442

A

Property held for an investment when qualifying for a
real estate tax deferred exchange.

 **_See_**
 Exchanging

Answer 443

A

An agent having the power to perform only in those areas
expressed in a legal document.

 **_See_**
 Agent, Agent of Necessity, General Agent

Answer 444

A

Parties who contribute capital to an investment
and are responsible for the amount invested.

 **_See_**
 General Partnership, Partnership

Answer 445

A

An asset that can easily be converted into cash.

 **_See_**
 Asset, Frozen Asset, Leverage

Answer 446

A

The dollar amount stated in the contract paid to the injured
party if a breach occurs. The dollar amount is usually
pre-agreed.

 **_See_**
 Aggrieved, Breach of Contract, Forfeiture

Answer 447

A

Lawsuit pending.

 **_See_**
 Attachment, Judgment Lien

Answer 448

A

A written agreement between a principal and Broker
to sell or lease property for compensation.

 **_See_**
 Agency, Agent, Exclusive Agency Listing,
 Exclusive Right to Sell, Law of Agency

Answer 449

A

The agent who acts for the owner of
property in either leasing or selling.

 **_See_**
 Agent, Fiduciary, Principal

Answer 450

A

A property owners right to use the land
abutting a lake or ocean.

 **_See_**
 Riparian Rights

Answer 451

A

The amount of loan in relationship to property value.

 **_See_**
 Leverage

Answer 452

A

The taxable gain on the sale of a capital asset
held for more than the statutory period of time.

 **_See_**
 Asset, Capital, Capital Gain

Answer 453

A

Clause in a Blanket Mortgage to release individual lots.

 **_See_**
 Blanket Mortgage

Answer 454

A

A method of identifying land in a subdivision by referring
to a certain lot, block, and a recoded plat of that subdivision.

     **_See_**
     Legal Description (Formal), Plat Map

Answer 455

A

Consideration that is given to support a gift deed.

 **_See_**
 Consideration, Good Consideration,
 Valuable Consideration

Answer 456

A

A person who is legally competent according
to the minimum age law of that state.

 **_See_**
 Competent Party, Contract Requirements,
 Incompetent Party

Answer 457

A

In an adjustable rate loan, the amount added
to the index to determine the rate.

 **_See_**
 Variable Rate Mortgage

Answer 458

A

An appraisal process that uses comparables
to estimate the value of a specified property.

 **_See_**
 Appraisal, Comparable, Correlation

Answer 459

A

The price a property actually sells for.

 **_See_**
 Floor Value, Market Value

Answer 460

A

The price a property should sell for if enough time is
allowed & neither Seller nor Buyer is under pressure to act.

 **_See_**
 Market Price

Answer 461

A

A long-range guide for the orderly growth of a given area.

 **_See_**
 Zoning

Answer 462

A

The legal right of a contractor to place a lien on real
property for work or materials rendered.

 **_See_**
 Inchoate, Lien, Notice of Completion,
 Satisfaction of Mortgage

Answer 463

A

A continuous series of ongoing cities
all heavily populated.

Answer 464

A

A law requiring sex offender registration and notification.

Answer 465

A

The threat of force in acquiring an agreement.

 **_See_**
 Duress, Mutual Agreement, Undue Influence, Voidable

Answer 466

A

In the Government Rectangular Survey System, a reference
line that runs North & South & crosses the principal baseline.

 **_See_**
 Baseline (Principal),
 Government Rectangular Survey System

Answer 467

A

A legal description of land that uses an identifiable
starting point to define the boundaries of real property.

 **_See_**
 Monument, Point of Beginning

Answer 468

A

A property tax that is equivalent to one tenth of one unit.
Expressed as .001 or 1/1000 of a dollar.

 **_See_**
 Dollar Rate

Answer 469

A

Sub-surface rights to all underground assets.

 **_See_**
 Air Rights, Sub-surface Rights

Answer 470

A

Mortgage Insurance Premium
Insurance pertaining to an FHA Insured loan.

 **_See_**
 Federal Housing Administration,
 Private Mortgage Insurance

Answer 471

A

To represent falsely or to give untrue statements.

 **_See_**
 Fraud, Puffing the Goods

Answer 472

A

A foundation formed by a single pouring of concrete.

 **_See_**
 Foundation

Answer 473

A

A natural object that is given as part of a survey.

 **_See_**
 Bench Mark, Legal Description (Informal), 
 Metes & Bounds

Answer 474

A

An act of conduct that is base, vile, or depraved.

Answer 475

A

A temporary halting of payments due on a debt.

Answer 476

A

A security document given to insure the payment of a Note.

 **_See_**
 Mortgage, Mortgagor, Satisfaction of Mortgage

Answer 477

A

The Buyer assumes the Seller’s mortgage and agree to pay
the debt. Original maker is not necessarily free from liability.

 **_See_**
 Novation, Subject to

Answer 478

A

One who is paid a fee to arrange loans
between a Lender and a Borrower.

 **_See_**
 Primary Lenders

Answer 479

A

In a tax deferred exchange - the assumption of a mortgage
of lesser value than an existing mortgage.

 **_See_**
 Boot, Debt Relief, Exchanging, Tax Deferment

Answer 480

A

The Lender under a mortgage-type transaction. The
receiver of the security instrument.

 **_See_**
 Mortgage, Mortgagor

Answer 481

A

The party who gives and is the maker of the security.

 **_See_**
 Hypothecate, Mortgagee, Trustor

Answer 482

A

The lowest horizontal member of a frame house
that rests on the foundation.

 **_See_**
 Sill

Answer 483

A

A general pooling of listing information available to those
members of the local Board of Realtors.

 **_See_**
 Cooperating Broker, Exclusive Right to Sell,
 Realtor

Answer 484

A

Theory of land use development around
several central business areas.

 **_See_**
 Axial Theory, Concentric Theory

Answer 485

A

A meeting of the minds between two parties in a contract.

 **_See_**
 Contract, Contract Requirements

Answer 486

A

A written appraisal showing in detail the reasoning
behind the assigned estimate of value.

 **_See_**
 Appraisal

Answer 487

A

A person by birth, not by operation of law.

 **_See_**
 Legal Person

Answer 488

A

A designated public highway of water. The stream
bed is owned by the government.

 **_See_**
 Non-navigable Stream

Answer 489

A

Contract rent exceeds the economic rent.

 **_See_**
 Contract Rent, Leasehold, Positive Leasehold

Answer 490

A

A written document that, when endorsed,
can be assigned to another.

 **_See_**
 Assignment, Holder in Due Course

Answer 491

A

Adjoining areas of land that have common
characteristics and similar usage.

 **_See_**
 Buffer Zone

Answer 492

A

Tenant pays rent and other costs
pertaining to the property.

 **_See_**
 Gross Lease

Answer 493

A

An agreement in which a minimum sales price is set by
the Seller. The Broker receives his commission from that
amount over and above the minimum sales price.

 **_See_**
 Exclusive Agency Listing, Exclusive Right to Sell, 
 Listing Agreement

Answer 494

A

The income obtained from property
after operating expenses.

 **_See_**
 Adjusted Gross Income, Gross Schedule Income,
 Income Approach

Answer 495

A

A person who is acting for a party to be named later.

 **_See_**
 Assignee, Assignment

Answer 496

A

The continuance of a certain use even though the area has
been zoned for a different purpose; a property use that is
not consistent with current zoning.

 **_See_**
 Conformity, Grandfather Clause, Variance, Zoning

Answer 497

A

A mortgage clause which states that the Lender will not
disturb the present tenant’s rights even in the event
of foreclosure.

 **_See_**
 Foreclosure

Answer 498

A

No two parcels of real estate are alike
or occupy the same geographic location.

 **_See_**
 Situs

Answer 499

A

An estate which cannot be
passed to one’s heirs.

 **_See_**
 Conventional Life Estate, Legal Life Estate,
 Less than Freehold

Answer 500

A

A stream not designated as a public highway;
the stream bed is owned privately.

 **_See_**
 Navigable Stream, Reliction

Answer 501

A

A public officer who is able to attest and certify
legal documents by a signature and seal.

 **_See_**
 Acknowledgement

Answer 502

A

A document that is evidence of debt - an obligation.

 **_See_**
 Deed of Trust, Mortgage

Answer 503

A

A legal notice that indicates a completed and a
mechanic’s lien must be filled within a certain time period.

 **_See_**
 Mechanic's Lien

Answer 504

A

The original obligor is relieved of any further loan obligation
due to the substitution of a new party.

 **_See_**
 Assumption of Mortgage, Subject to

Answer 505

A

An oral Will that is witnessed.

 **_See_**
 Formal Will, Holographic Will, Will

Answer 506

A

The value in the object itself.

 **_See_**
 Subjective Value, Value

Answer 507

A

An open-ended loan has lien priority as per
recondition regardless of future draws.

 **_See_**
 Construction Loan, Draws, Open End Loan

Answer 508

A

A loss in property value due to outmoded
functional or economic changes.

 **_See_**
 Depreciation (Appraisal), Depreciation (Curable),
 Depreciation (Incurable)

Answer 509

A

A proposal freely made by one party to another.

 **_See_**
 Contract Requirements, Mutual Assent

Answer 510

A

A loan in which draws are available up to a set limit.

 **_See_**
 Draws, Obligatory Advances

Answer 511

A

A listing between the principal and
numerous agents simultaneously.

 **_See_**
 Listing Agreement, Procuring Cause, Unilateral Contract

Answer 512

A

A future right of a party to buy or lease
property at a specified price.

 **_See_**
 Bilateral Contract, First Right of Refusal, Unilateral Contract

Answer 513

A

The party who receives an option.

 **_See_**
 Option

Answer 514

A

The party who gives an option.

 **_See_**
 Option

Answer 515

A

Placing a house on property so that it brings
the best advantages to the occupant.

 **_See_**
 Setback

Answer 516

A

A fee charged by the Lender for processing a new loan.

Answer 517

A

Authority arising when a principal has intentionally
caused a third party to rely upon the apparent authority
even though it has not been given.

 **_See_**
 Agency by Ratification, Implied Agency

Answer 518

A

A Title Insurance purchased for the benefit of
the Buyer in a real estate transaction.

 **_See_**
 Title Insurance

Answer 519

A

A lending term referring to a note
and a security instrument.

 **_See_**
 Primary Lenders, Secondary Market

Answer 520

A

A rule stating that oral evidence may not
be added to a written agreement.

 **_See_**
 Contract Requirements, Equal Dignities Rule

Answer 521

A

The dividing of co-ownership in property so that each
holds his or her interest sole and separate. A legal
process terminating a co-tenancy.

 **_See_**
 Tenancy in Common

Answer 522

A

A written Will that is written, signed & witnessed.

 **_See_**
 Codicil, Holographic Will, Nuncupative Will, Testate

Answer 523

A

Consists of two or more people conducting
business as co-owners.

 **_See_**
 General Partnership, Limited Partnership, Syndication

Answer 524

A

The instrument used by a Sovereign Power
to transfer real property to an individual.

 **_See_**
 Cession Deed, Deed

Answer 525

A

A rental payment which is based on a
percentage of the gross sales.

 **_See_**
 Gross Lease, Net Lease

Answer 526

A

A soil test which determines drainage and absorption.

Answer 527

A

With no end - to go on forever.

 **_See_**
 Corporation, Legal Person

Answer 528

A

Items that are tangible and movable, not real property.

 **_See_**
 Fixture, Tangible, Trade Fixture

Answer 529

A

An appointed individual authorized to settle an estate.

 **_See_**
 Administrator, Executor, Intestate

Answer 530

A

An evaluation of a site to determine environmental
problems. Phase I inspects public records and
adjacent properties.

Answer 531

A

An environmental survey that requires soil sampling to
determine the level of hazardous substances.

Answer 532

A

A loss of value due to the physical
deterioration of the property.

 **_See_**
 Depreciation (Appraisal), Depreciation (Curable),
 Depreciation (Incurable)

Answer 533

A

Principal, Interest, Taxes, Insurance

 **_See_**
 Budget Payment

Answer 534

A

A recorded map that shows the smaller parcels
in a subdivision by book and page number.

 **_See_**
 Legal Description (Formal), Lot Block Subdivision,
 Subdivision

Answer 535

A

A horizontal piece that supports
the trusses or rafters of a roof.

Answer 536

A

A court case that established the doctrine of
“Separate but Equal”.

 **_See_**
 Brown v Board of Education

Answer 537

A

The process of combining two or more parcels of land
so that together they have a greater total value.

 **_See_**
 Assemblage, Contribution, Subdivision

Answer 538

A

The starting point at one corner of the surveyed
land in a Metes & Bounds description.

 **_See_**
 Bench Mark, Metes & Bounds, Monument

Answer 539

A

The right of government to enact laws for the protection,
health, and welfare of the general public.

 **_See_**
 Enabling Legislation, Zoning

Answer 540

A

Economic rent exceeds the contract rent.

 **_See_**
 Contract Rent, Economic Rent, Leasehold,
 Negative Leasehold

Answer 541

A

A written document that authorizes one party
to act for another.

 **_See_**
 Agent, Attorney-in-Fact, General Agent, Limited Agent

Answer 542

A

A document provided in escrow which shows
all claims affecting title.

 **_See_**
 Abstract of Title, Schedule "A", Schedule "B"

Answer 543

A

An additional charge for paying off
a debt before its time.

 **_See_**
 "Or More" Clause

Answer 544

A

Those Lenders that originate loans,
thereby creating “paper”.

 **_See_**
 Paper, Secondary Market

Answer 545

A

The party represented in an agency relationship.

 **_See_**
 Agency, Agent, Client, Fiduciary

Answer 546

A

The original loan amount. The current remaining
unpaid debt on the loan.

 **_See_**
 Interest

Answer 547

A

Water rights that are based on a government permit
system. The rights to use the water in a river
or stream adjacent to the land.

 **_See_**
 Riparian Rights

Answer 548

A

A form of insurance required on conventional loans
that exceed a loan value - ratio of 80%.

 **_See_**
 Loan to Value Ratio, MIP

Answer 549

A

Per front foot or a specific portion allocated to a property
owner - usually used in an assessment calculation.

 **_See_**
 Assessment

Answer 550

A

A court action to prove the validity of a will,
or settle an estate.

 **_See_**
 Administrator, Executor, Intestate, Testate, Will

Answer 551

A

The actions of a Broker that bring about the
desired results.

 **_See_**
 Commission

Answer 552

A

Lesser value properties will be increased by
locating near more expensive properties.

 **_See_**
 Regression

Answer 553

A

A written promise by a person to pay a debt
under terms specified in the note.

 **_See_**
 Deed of Trust, Mortgage, Note

Answer 554

A

Tax levied by the local governments to meet the needs
of the community - Real estate taxes are primary liens
and are usually based on Ad Valorem.

 **_See_**
 Ad Valorem

Answer 555

A

To divide or assess proportionately between Buyer
and Seller the obligations that have been paid or
due. The close of escrow is the buyer’s day.

Answer 556

A

A report required before a subdivision can be offered
for sale or lease - Discloses all facts about the property
for the buyer’s protection.

 **_See_**
 Subdivision

Answer 557

A

Over exaggeration of one’s opinion.

 **_See_**
 Misrepresentation, Embellishment

Answer 558

A

Damages extending far beyond the actual loss.

 **_See_**
 Liquidated Damages

Answer 559

A

A life estate that is based on a life of another.

 **_See_**
 Life Estate

Answer 560

A

A mortgage given by a buyer as part of the consideration
for the price - one usually carried by the seller in
a credit transaction.

 **_See_**
 Mortgage, Soft Money Mortgage

Answer 561

A

A home loan that meets certain standards set forth by
the federal government. The loan is presumed to have
met the “ability to repay rule” per the Dodd-Frank Act.

 **_See_**
 Ability to Repay Rule, Dodd-Frank Act

Answer 562

A

An appraisal method which takes into account all the
component parts along with the installation costs.

 **_See_**
 Cost Approach, Unit-in-Place Method

Answer 563

A

One fourth of a township that contains 160 acres.

 **_See_**
 Section

Answer 564

A

A court action to remove a cloud on title
and create marketable title.

 **_See_**
 Cloud on Title

Answer 565

A

A Deed which releases any or all interest
one may have in real property.

 **_See_**
 Deed, Quiet Title Suit

Answer 566

A

A colorless, odorless gas from decaying minerals in
high concentrations that is known to cause lung cancer.

Answer 567

A

Sloping boards that extend from the top
of the exterior wall to the ridge board.

 **_See_**
 Ridge board

Answer 568

A

Survey lines that are six miles apart and
run parallel to the principal meridian.

 **_See_**
 Government Rectangular Survey System, Tier Line,
 Township

Answer 569

A

The percentage earned on an investment.

 **_See_**
 Cash on Cash Return

Answer 570

A

A term used to identify members
of the National Association of Realtors.

Answer 571

A

The amount of depreciation taken
for tax purposes is now taxable.

Answer 572

A

Entering a document in the Recorder’s
office at the prescribed county.

 **_See_**
 Chain of Title, Constructive Notice

Answer 573

A

A state fund that monitarily reimburses the aggrieved
public due to dishonest acts of the licensee.

 **_See_**
 Aggrieved, Subrogation

Answer 574

A

The statutory period of time the borrower has to redeem
in a mortgage foreclosure, usually six months after the
sheriff sale.

 **_See_**
 Mortgage, Reinstatement Period

Answer 575

A

An illegal practice that restricts loans
by geographical area.

 **_See_**
 Blockbusting, Federal Fair Housing, Steering

Answer 576

A

A document issued by lender for buyer’s
benefit stating the existing loan balance.

 **_See_**
 Assumption of Mortgage, Estoppel Certificate

Answer 577

A

An appraisal principle which states that the worth of
an expensive property is lessened by the presence
of less expensive properties.

 **_See_**
 Progression

Answer 578

A

Truth in Lending Laws apply to residential financing -
full disclosure of all financing charges. Interest rates
are expressed in APR.

 **_See_**
 APR, RESPA

Answer 579

A

The period of time the trustor has to make all
delinquent payments prior to the trustee foreclosure
sale in a Deed of Trust.

 **_See_**
 Trustee's Deed, Redemption

Answer 580

A

Real Estate Investment Trust
A corporation with a minimum of 100 investors and 95%
of the profit passes to the shareholders.

Answer 581

A

A clause in a blanket security instrument that allows
for individual release of secured lots from the lien.

 **_See_**
 Blanket Mortgage

Answer 582

A

The gaining of land due to the subsidence of
water of a non-navigable stream.

 **_See_**
 Accretion, Non-navigable Stream

Answer 583

A

A map indicating by lines, shading, or color,
different elevations of land.

 **_See_**
 Contour Map

Answer 584

A

One who is entitled to an estate upon
termination of a life estate.

 **_See_**
 Contingent Remainder, Reversionary Estate

Answer 585

A

A future interest in real estate after a life estate.

 **_See_**
 Contingent Remainder, Remainder (Vested)

Answer 586

A

Consideration given for the use of property.

 **_See_**
 Contract Rent, Economic Rent

Answer 587

A

The cost of replacing a property
using today’s materials.

 **_See_**
 Cost Approach, Reproduction Cost

Answer 588

A

The cost of rebuilding an exact replica.

 **_See_**
 Cost Approach, Replacement Cost

Answer 589

A

Rights retained by the grantor when property is
conveyed. Frequently called Deed Restrictions.

 **_See_**
 Deed Restrictions

Answer 590

A

The value that remains after a
property’s economic life.

 **_See_**
 Economic Life, Salvage Value

Answer 591

A

Real Estate Settlement Procedures Act
Requires disclosures of closing costs to buyers & sellers.
Required within 72 hours of a loan application - Required
on residential loans, one, three or four-plex.

 **_See_**
 Regulation Z

Answer 592

A

An estate returned to the original grantor.
Usually at the end of a life estate or lease.

 **_See_**
 Remainder Estate

Answer 593

A

A large horizontal beam placed at the peak
of a roof to which rafters are attached.

 **_See_**
 Rafters

Answer 594

A

The right one has to cross the land of another.

 **_See_**
 Easement, Ingress and Egress

Answer 595

A

An incident whereby the surviving joint tenant
automatically receives the interest and rights
of the deceased joint tenant.

 **_See_**
 Joint Tenancy, Tenancy by Entireties

Answer 596

A

The property owner’s right to enjoy or use
the water abutting his land.

 **_See_**
 Reliction

Answer 597

A

A unit of measurement that consists of 16.5 feet.

Answer 598

A

A right that remains with the land even upon
transfer such as an easement appurtenant.

 **_See_**
 Appurtenant

Answer 599

A

A regular corporation that has elected to be treated
as a partnership for tax purposes - restictions do apply.

 **_See_**
 Corporation, Partnership

Answer 600

A

The selling of property to an investor while at the same
time leasing it back for a specified period.

 **_See_**
 Net Lease

Answer 601

A

The estimated economic value of an asset
at the end of its economic life.

 **_See_**
 Depreciation (Appraisal), Residual Value

Answer 602

A

A lease in which a lessee rents the property to another
party, putting himself in the middle position.

 **_See_**
 Assignment, Sublease

Answer 603

A

A document which, when recorded,
releases the judgment lien.

 **_See_**
 Judgement Lien

Answer 604

A

A document stating that the mortgage
debt has been paid in full.

 **_See_**
 Deed of Reconveyance, Defeasance Clause

Answer 605

A

Description page of a preliminary title report
and the type of insurance being issued.

 **_See_**
 Schedule "B"

Answer 606

A

The portion of a title insurance policy that
lists the exceptions to coverage by the policy.

 **_See_**
 Schedule "A", Title Insurance

Answer 607

A

The maximum potential income a property can
generate before any deductions or expenses.

 **_See_**
 Adjusted Gross Income

Answer 608

A

A loan repayment record that is consistent.

Answer 609

A

Agencies which purchase mortgages from primary
lenders thereby creating funds for additional mortgages.

 **_See_**
 FHLMC, FNMA, GNMA, Primary Lenders

Answer 610

A

In the Government Rectangular Survey System,
a parcel of land one mile square containing 640 acres.

 **_See_**
 Quarter Section, Township

Answer 611

A

Under the UCC, a document used
to secure personal property.

 **_See_**
 Chattel Mortgage, Financing Statement,
 Uniform Commercial Code

Answer 612

A

The land against which an easement has been granted
for the benefit of the dominant estate.

 **_See_**
 Dominant Estate, Easement Appurtenant

Answer 613

A

The distance a structure must be from a
given point such as a street or an easement.

 **_See_**
 Variance, Zoning

Answer 614

A

A full disclosure of all charges and
disbursements in a real estate transaction.

 **_See_**
 Proration, Regulation Z

Answer 615

A

The inner covering of boards on the
roof or outside walls of a frame house.

Answer 616

A

Deed given by the Sheriff at the completion
of a mortgage foreclosure sale.

 **_See_**
 Bargain and Sale Deed, Foreclosure,
 Involuntary Alienation

Answer 617

A

Prohibits certain business activities that
are anti-competitive such as price fixing.

Answer 618

A

The gain on the sale of a capital asset
usually held for 12 months or less.

 **_See_**
 Asset, Capital Gain

Answer 619

A

The lowest horizontal board in
a window or door frame.

 **_See_**
 Mud Sill

Answer 620

A

Interest paid only on the unpaid principal balance.

 **_See_**
 Compound Interest, Interest, Principal

Answer 621

A

A fund made up of sums of money set aside
to pay a debt or meet depreciation expenses.

Answer 622

A

Land has an economic value due to its location.

 **_See_**
 Law of Situs

Answer 623

A

A mortgage given to finance a specified property. Usually
a carryback between the seller and buyer that reflects an
extension of credit.

 **_See_**
 Hard Money Mortgage, Mortgage,
 Purchase Money Mortgage

Answer 624

A

Owned by one person - Severalty

 **_See_**
 Concurrent Tenancy

Answer 625

A

Properties such as churches and theaters
having a single purpose and little demand.

 **_See_**
 Cost Approach

Answer 626

A

A conveying deed in which the grantor guarantees
the title property for only as long as he has owned it.

 **_See_**
 General Warranty Deed

Answer 627

A

A lien which encumbers only a
certain parcel of property.

 **_See_**
 Lien, General Lien

Answer 628

A

A court action that forces a party to
comply with the contract as promised.

 **_See_**
 Breach of Contract

Answer 629

A

Estimating the value of a building using
the exterior measurements.

 **_See_**
 Cost Approach, Replacement Cost,
 Reproduction Cost

Answer 630

A

A law that states all real estate contracts must
be in writing to be enforceable (except a lease
for one year or less).

 **_See_**
 Contract Requirements, Equal Dignities Rule,
 Parol Evidence Rule

Answer 631

A

A time limit during which a legal action must take place.

 **_See_**
 Laches

Answer 632

A

Laws passed by a legislative body.

Answer 633

A

A lien place against property by operation of law.

 **_See_**
 Assessment, Involuntary Lien, Judgment Lien,
 Property Tax

Answer 634

A

The mortgagor’s last chance to redeem the property
after the foreclosure sale by paying the entire debt.

 **_See_**
 Acceleration, Certificate of Sale, Equitable Period
 of Redemption

Answer 635

A

An illegal practice that guides home buyers
to a particular area of town.

 **_See_**
 Blockbusting, Federal Fair Housing, Redlining

Answer 636

A

The basis of the property acquired from a decedent
will equal the value at the time of the death.

 **_See_**
 Basis

Answer 637

A

A method of depreciation in which the asset is
written off evenly over its useful life.

 **_See_**
 Depreciation (Tax)

Answer 638

A

A note that calls for payments of interest only
followed by a balloon payment of the principal.

 **_See_**
 Interest Only, Term Only

Answer 639

A

One who acts for another for the purpose of concealing
the other’s identity - or a third party used to create a
joint tenancy.

 **_See_**
 Unities of Joint Tenancy

Answer 640

A

The vertical supports in a wall of a frame house.

 **_See_**
 Joists

Answer 641

A

The right to use the land below ground
level to the center of the earth.

 **_See_**
 Mineral Rights

Answer 642

A

A licensee who represents a designated Broker but
does not have the direct contractual obligation to
Buyer or Seller.

 **_See_**
 Agent, Cooperating Broker

Answer 643

A

A large tract that has been divided into smaller parcels
for sale. Six or more parcels improved or unimproved
any of which are less than thirty-six acres each.

 **_See_**
 Plat Map, Public Report

Answer 644

A

A buyer takes over real property but is not
liable for the mortgage on the property.

 **_See_**
 Assumption of Mortgage, Novation

Answer 645

A

Value that is created in the minds of people.

 **_See_**
 Objective Value

Answer 646

A

A re-renting of space held under a lease to a third party.

 **_See_**
 Assignment, Sandwich Lease

Answer 647

A

A clause in which the lien holder agrees to be
secondary to a future encumbrance.

 **_See_**
 Junior Mortgage

Answer 648

A

A written order directing a person to appear
in court or produce documents.

Answer 649

A

The substitution of a claim for monies paid.

 **_See_**
 Recovery Fund

Answer 650

A

An appraisal concept that states that the value of one
property is set by the cost of buying an equally
desirable property.

 **_See_**
 Conformity, Regression

Answer 651

A

Also called the cost approach in appraising.

 **_See_**
 Cost Approach

Answer 652

A

Known as CERCLA - Comprehensive Environmental
Response Compensation and Liability Act. Purpose is to
focus on cleanup of hazardous substances in given
areas as so determined by the EPA.

 **_See_**
 EPA

Answer 653

A

A private company that promises to perform
if the bonded party fails.

Answer 654

A

The classification of water that includes
all natural streams, lakes or ponds.

 **_See_**
 Ground Water, Prior Appropriation, Riparian Rights

Answer 655

A

Determining the location of land by measuring
the determined lines and angles.

 **_See_**
 Metes & Bounds, Plat Map

Answer 656

A

An increase in value to real property
due to the owner’s labor.

 **_See_**
 Equity

Answer 657

A

A combination of parties joined together to
undertake an investment as an entity.

 **_See_**
 General Partnership, Limited Partnership,
 Partnership

Answer 658

A

Adding successive time periods to continuous usage.

 **_See_**
 Adverse Possession, Easement by Prescription

Answer 659

A

A permanent financing arrangement that pays
off a construction loan.

 **_See_**
 Open End Loan

Answer 660

A

Personal property that can be moved.

 **_See_**
 Intangible

Answer 661

A

A real estate investment that postpones
the paying of taxes.

 **_See_**
 Exchanging, Installment Sale

Answer 662

A

The rate applied to the assessed value
of property to establish a tax.

 **_See_**
 Assessment (Special), Dollar Rate, Mill Rate

Answer 663

A

Using investments to postpone the
payment of income tax.

 **_See_**
 Depreciation (tax)

Answer 664

A

A mode of holding title to real property.

 **_See_**
 Concurrent Tenancy, Sole & Separate

Answer 665

A

The quality of the tenancy one has if he remains on the
property after the lease has expired. Least possible
estate in land.

 **_See_**
 Actual Eviction, Holdover Tenant

Answer 666

A

A lease that can be terminated by
either party at their will.

 **_See_**
 Tenancy at Sufferance, Tenancy for Years

Answer 667

A

A method of joint ownership whereby the remaining
portion of the property automatically passes to the
surviving spouse.

 **_See_**
 Joint Tenancy, Rights of Survivorship

Answer 668

A

A lease that is automatically renewed
for the same like time.

 **_See_**
 Tenancy

Answer 669

A

Any lease for a specified period of time.

 **_See_**
 Leasehold, Tenancy at Sufferance, Tenancy at Will

Answer 670

A

Co-ownership in property. Interests need not be equal
and no right of survivorship exists.

 **_See_**
 Concurrent Tenancy, Partition, Undivided Interest

Answer 671

A

One who occupies or uses property under a lease.

 **_See_**
 Lessee

Answer 672

A

Real property and those rights that remain,
and are attached to the land.

 **_See_**
 Appurtenant

Answer 673

A

A mortgage which must be paid off in a
specified period of time. Interest only.

 **_See_**
 Amortization, Balloon Payment

Answer 674

A

Having died with a Will.

 **_See_**
 Executor, Intestate, Will

Answer 675

A

Survey line that are six miles apart and
run parallel to the principal baseline.

     **_See_**
     Base Line (Principal), Range Lines, Township

Answer 676

A

All obligations set forth in the contract must
be met on or before the date specified.

 **_See_**
 Close of Escrow

Answer 677

A

The legal proof of real property ownership.

 **_See_**
 Chain of Title, Constructive Notice

Answer 678

A

Insurance in a real estate transaction that
protects the parties against Title defects.

 **_See_**
 Lender's Policy, Owner's Policy, Schedule "A",
 Schedule "B"

Answer 679

A

A Lender of cash may hold legal Title to property.

 **_See_**
 Lien Theory State

Answer 680

A

A registration system that accurately determines
ownership and claims to real property.

 **_See_**
 Evidence of Title

Answer 681

A

A wrongful act against a party in which
civil action can be brought.

 **_See_**
 Lis Pendens

Answer 682

A

Individual ownership of a specified structure plus interest
in the common area - ownership includes air and
subsurface rights.

 **_See_**
 Condominium

Answer 683

A

A parcel of land that is six miles
square and contains 36 sections.

 **_See_**
 Section

Answer 684

A

Items used in business that appear to be real
property but remain personal property.

 **_See_**
 Fixture

Answer 685

A

The Deed one receives as a result of
a tax foreclosure sale.

 **_See_**
 Bargain & Sale Deed, Certificate of Purchase,
 Involuntary Alienation

Answer 686

A

A Broker’s bank account used specifically
for earnest money or rental deposits.

 **_See_**
 Commingling, Conversion, Earnest Money

Answer 687

A

One who holds bare-naked title in a Deed of Trust
for the beneficiary until the entire debt is paid.

 **_See_**
 Beneficiary, Deed of Trust, Trustor

Answer 688

A

A Deed given by the Trustee to convey
property out of Trust.

 **_See_**
 Bargain and Sale Deed

Answer 689

A

The party who signs the Trust Deed. The borrower
in a Deed of Trust.

 **_See_**
 Beneficiary, Deed of Trust, Trustee

Answer 690

A

Covered by Reg Z - Borrowers are to be given truthful and
complete information as it relates to the cost of credit.

 **_See_**
 Regulation Z

Answer 691

A

Co-ownership whereby each party
has the right to use the entire property.

 **_See_**
 Community Property, Concurrent Tenancy, Joint Tenancy,
 Tenancy in Common

Answer 692

A

Taking unfair advantage of one’s position
in acquiring an agreement.

 **_See_**
 Duress, Menace, Mutual Assent

Answer 693

A

An increase of property value due to external
causes such as inflation.

 **_See_**
 Appreciation, Sweat Equity

Answer 694

A

A contract that appears to be valid but neither
party can be legally forced to perform.

 **_See_**
 Parol Evidence Rule, Valid, Void, Voidable

Answer 695

A

A code of law that regulates the security
used in personal property transactions.

 **_See_**
 Bulk Transfer, Financing Statement, 
 Security Agreement

Answer 696

A

A contract that is binding only on one party.

 **_See_**
 Bilateral Contract, First Right of Refusal, Option

Answer 697

A

Owned by one person. Sole and Separate.

 **_See_**
 Concurrent Tenancy

Answer 698

A

An estimate of value that computes each unit times
the number of units in a given building.

 **_See_**
 Cost Approach

Answer 699

A

Time, Title, Interest, Possession

Answer 700

A

One authorized to act for another in every and
all actions, such as a Guardian.

 **_See_**
 General Agent, Limited Agent

Answer 701

A

The period of time a property will be useful
for its intended purpose.

 **_See_**
 Economic Life

Answer 702

A

Charging a higher rate of interest than the law allows.

 **_See_**
 Interest

Answer 703

A

VA will guarantee to the lender of funds a
specific amount in case of default.

 **_See_**
 Certificate of Eligibility

Answer 704

A

A contract that contains all essential legal requirements
and is enforceable through a court of law.

 **_See_**
 Contract Requirements, Void, Voidable

Answer 705

A

Something of monetary value given in exchange
for the conveyance of real property.

 **_See_**
 Consideration, Good Consideration

Answer 706

A

The amount of consideration an item can command;
also the present worth of future benefits.

 **_See_**
 Worth

Answer 707

A

Demand, Utility, Scarcity, Transferability

 **_See_**
 Objective Value, Subjective Value

Answer 708

A

Lender may adjust the interest on
a loan based upon an index.

 **_See_**
 Flexible Payments, Index Lease, Margin

Answer 709

A

Permission obtained to act in a way that is
contrary to current zoning ordinances.

 **_See_**
 Non-conforming Use

Answer 710

A

The buyer of real property under an agreement for sale.

 **_See_**
 Agreement for Sale, Equitable Title, Vendor

Answer 711

A

The seller of real property under an agreement for sale.

 **_See_**
 Agreement for Sale, Equitable Title, Forfeiture

Answer 712

A

A contract that never was legal and has no binding effect.

 **_See_**
 Valid, Voidable, Unenforceable Contract

Answer 713

A

A contract that appears to be valid on its face
until action is taken to void it.

 **_See_**
 Void, Valid, Unenforceable Contract

Answer 714

A

The grantor guarantees forever the title conveyed.
The warranty is found in a General Warranty Deed.

 **_See_**
 General Warranty Deed, Warranty of Further Assurance

Answer 715

A

The grantor promises to deliver all necessary documents
in order to convey clear title. This warranty is found in a
General Warranty Deed.

 **_See_**
 General Warranty Deed, Warranty Forever

Answer 716

A

An unrecorded document that creates a
gap in the chain of title.

 **_See_**
 Chain of Title, Constructive Notice, Recording

Answer 717

A

A legal testament by which a person disposes of
his or her property at the time of death.

 **_See_**
 Formal Will, Holographic Will, Nuncupative Will, Testate

Answer 718

A

The seller of a negotiable instrument may be
held responsible for its future payments.

 **_See_**
 Without Recourse

Answer 719

A

The seller of a negotiable instrument may not
be held responsible for its future payments.

 **_See_**
 With Recourse

Answer 720

A

The amount something should sell for
in an open and free market.

 **_See_**
 Market Value, Value

Answer 721

A

Creating a new obligation which consists of all
underlying debts plus the seller’s equity.

 **_See_**
 All-Inclusive Deed of Trust

Answer 722

A

A decree of the court instructing an officer
of the court to carry out the judgment.

 **_See_**
 Judgment Lien

Answer 723

A

The financial benefits received from an investment.

 **_See_**
 APR, Rate of Return

Answer 724

A

Local laws that regulate the specific
use and character of land.

 **_See_**
 Master Plan, Police Power

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