Brainscape's Knowledge GenomeTM

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


See full index

Real Estate Exam Terms > Terms > Flashcards

Terms Flashcards

1
Q

Acceleration clause

A

Any clause in a loan requiring the loan to be paid off upon the occurrence of a certain event. Example: alienation clause

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

Accession

A

The acquisition of property by its being added to another property

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

Accretion

A

Process of gradual or imperceptible additions to land bordering a river or stream

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

Acknowledgment

A

The declaration before a notary by a person who executed a document stating that he did in fact sign the document. A deed must be acknowledged to be recorded. Once acknowledged, it is accepted as prima facie evidence in court.

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

Acre

A

43,560 square feet
4,840 square yards
209 ft by 209 ft (if square)

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

Actual authority

A

The authority that a principal actually confers on the agent

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

Actual gain (profit)

A

For income tax purposes, it’s determined by subtracting the adjusted cost basis from the exchange value of a property

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

Actual notice

A

When a person actually knows something, such as when an agent knows someone has taken possession of a property

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

Abstract of title

A

A written summary of the chain of title

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

Ad valorem (according to value)

A

A property tax is an ad valorem tax

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

Adjusted cost basis

A

For income tax purposes, it’s the cost basis plus capital improvements, plus existing assessment liens assumed by the buyer, minus depreciation, minus gain(s) deferred from prior transactions.

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

Adjusted selling price

A

For income tax purposes, it’s the selling price minus the expenses of the sale.

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

Adverse possession

A

Acquiring title by 5 years of exclusive, notorious, and open possession of a property (contrary to the best interests of the true owner) under a claim of right or color of title. When property is acquired by adverse possession, a quiet title action would be used to perfect title.

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

Agency

A

An agent is a person authorized to represent a principal in business dealings with other parties. Paying consideration is not required to create an agency relationship.

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

Agency disclosure law

A

As of January 1, 1988, the California Agency Disclosure Law requires agents to disclose agency relationships as soon as their relationship with a buyer or seller becomes more than casual. This applies to transactions concerning the sale, or a lease (for more than one year), of four or less residential units. The three steps to agency are disclose, elect, and confirm.

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

Alienate

A

To sell, transfer, or convey. Both real and personal property may be alienated.

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

Alienation (due on sale) clause

A

An alienation clause in a loan requires the borrower to pay off the loan when title is transferred. The opposite of alienation is acquisition.

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

Acquisition

A

Opposite of alienation

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

All inclusive trust deed (AITD, wrap around trust deed, hold harmless trust deed, overriding trust deed)

A

This is a junior lien which is subordinate to, yet includes, the liens to which it is subordinated. AITDs are commonly used with land contracts.

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

Alluvion (alluvium)

A

The soil deposited by accretion

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

Alquist-Priolo Act

A

Requires the disclosure of earthquake fault lines on a map

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

Amenity property

A

A home. Amenity properties are appraised by the Market Data Approach.

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

Americans with Disabilities Act (ADA)

A

Federal law which requires equal access to public buildings for handicapped persons

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

Amortization

A

The liquidation of a financial obligation, such as a loan

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

Amortization tables

A

Used to determine monthly payments

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

Amortized installment note

A

A promissory note which calls for periodic payments of both principal and interest.

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

Angles

A

A change in geographic direction is often referred to by using an angle expressed in degrees, minutes and seconds; it’s often described as “so many degrees from the north or south points of the compass.”

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

Annual net income

A

Used in the Capitalization Approach to appraisal and determined by this formula: Gross Income - Vacancies - Expenses = Annual Net Income

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

Annual percentage rate (APR)

A

Relative cost of credit expressed in percentage terms and disclosed under the Truth-in-Lending Law (also called Reg. Z)

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

Annuity

A

An agreement providing for a sum of money to be received by a series of payments at fixed intervals over a period of time. The monthly payments made to a lender and the rent payments made to a landlord under a lease may be described as annuities.

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

Appraisal

A

An opinion of the value of a specific property on a given date; it is valid for that date only.

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

Appropriation

A

Occurs when the government gives permission to a non-riparian owner to take water from a public waterway

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

Appurtenances

A

Things used with the land for its benefit. Appurtenances are real property

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

Appurtenant easement

A

Benefits the land of a dominant tenement. The buyer of the dominant tenement automatically receives the appurtenant easement.

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

Arbitration clause

A

A clause in a contract in which the parties agree to arbitrate a dispute rather than go to court

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

Assessment lien

A

A lien which is recorded by a local government when a property owner fails to pay for street improvement within 30 days of receipt of the bill

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

Assessment roll

A

Establishes the tax base. Property is assessed every year at 100% of its taxable value (100% of fair market value or 100% of full cash value). If sold, property is reassessed during the year.

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

Assignment

A

A contract is usually assignable. Leases ca be assigned; when a lease holder assigns a lease, the person who acquires the lease (the assignee) becomes the tenant. Listings cannot be assigned because a listing is a personal service contract calling for the personal performance of the broker.

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

Assumed assessment lien

A

A preexisiting assessment lien which is assumed (taken over) by a buyer of real property

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

Assumption

A

When a buyer assumes a loan, he or she becomes primarily liable. The seller is still liable, but is in a secondary position

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

Attachment lien (writ of attachment)

A

Property is held by court order as security for a possible judgment in a pending lawsuit. An attachment lien is valid for 3 years.

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

Attorney-in-fact

A

Acting for another with a duly executed and recorded power of attorney

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

Avulsion

A

Sudden violent tearing away of land by water

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

Backfill

A

Dirt used to fill in excavations or brace a foundation

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

Balloon note

A

Partially amortized

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

Balloon payment

A

Any payment which is significantly larger than the other payments

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

Banker’s year

A

Based on a 30 day month and 360 day year, used for proration and loan calculations

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

Bearing wall

A

A wall supporting any vertical load in addition to its own weight. It is normally left in place during remodeling and can be constructed at any angle to doorways. Bearing walls are real property.

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

Beneficiary

A

The lender in a trust deed. A beneficiary holds the promissory note and trust deed during the life of the loan.

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

Beneficiary statement

A

Statement by a lender disclosing the current loan balance

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

Bilateral contract

A

A contract in which the promise of one party is given in exchange for the promise of the other party (a promise for a promise). Both parties are bound to perform. These promises are often the basis for a contract (for example, exclusive listings, deposit receipts).

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

Blanket encumbrance

A

A real estate loan which covers (blankets or secures) more than one parcel of land; it is commonly used when building new homes

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

Blind advertising

A

Does not disclose that an agent is representing the seller. When advertising, a licensee must disclose that he is an agent. Additionally, the ad must name the broker

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

Board foot

A

A unit of measurement of lumber which is one foot wide, one foot long, and one inch thick (any combination of 144 cubic inches)

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

Bonds

A

Loan instruments

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

Bona fide

A

In good faith, without fraud or deceit, genuine. A bona fide land contract or listing has all the elements required by law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Boot

A

Cash, other “unlike” property, or “mortgage relief” used to balance the equities of the properties in a 1031 tax deferred exchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Borrower’s credit history

A

Provides the lender with information used to determine the risk inherent in the loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Broker

A

A person employed for a fee by another to perform a real estate act requiring a license. A broker is the employer of salespersons.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Brownfield development

A

A real estate development with the presence or potential presence of a hazardous or toxic substance, pollutant or contaminant. It typical results in abandoned structures and vacant lots.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

British thermal unit (BTU)

A

Measurement of heat used in rating the capacity of heating systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Building residual technique

A

An appraiser uses the building residual technique when the value of a building is an unknown factor. The technique determines how the building contributes to the value of the entire property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Bureau of Real Estate (BRE)

A

The state agency which regulates the real estate industry. Also called California Bureau of Real Estate (CalBRE)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Bureau of Real Estate Appraisers (BREA)

A

The state agency which licenses and regulates real estate appraisers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Business and Professions Code

A

A set of California laws regulating business, such as the real estate industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Business opportunities

A

Are personal property. The document used to transfer title to personal property is a bill of sale, not a deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

California Veterans Farm and Home Purchase Plan (Cal-Vet)

A

The state purchases homes and sells them to California veterans using land contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Capable parties

A

Everyone is capable of contracting, except minors and those who are mentally incompetent. It is one of the four essential elements of a contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Capital improvement

A

Investment of money in physical improvements of a property (for example, adding a wall, remodeling, or upgrading a heating system). It is not deductible as an expense, but is added to the cost basis and depreciated over the life of the improvements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

Capitalization (income) approach

A

Establishes the current value of future benefits which may be obtained from an income producing property (apartments, commercial buildings, restaurants, etc). The value of an asset is determined by dividing the annual net income by a desired rate of return called the capitalization rate (V = I/R).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Capitalization rate

A

The rate of interest which is considered a reasonable return on investment. The greater the risk, the higher the cap rate determined by an investor. Cap rates consider the quantity, quality and durability of the rent. 3 methods of calculating cap rate are CBS: Market Comparison, Band of Investment, and Summation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Cash on cash return

A

Defined as the annual net income (cash flow before taxes) divided by the total capital (cash) invested.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

CC&Rs

A

Covenants, conditions and restrictions usually placed in a “declaration of restrictions” which restricts land use in a subdivision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Certificate of clearance

A

Receipt from the State Board of Equalization showing that the seller of a business opportunity has paid all sales taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Certificate of reasonable value (CRV)

A

Government appraisal for a VA loan. The CRV determines the amount for a down payment. Some VA loans do not require a down payment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Chain of title

A

The record of prior transfers and encumbrances affecting the title of a parcel. It is usually searched by a title company employee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Cloud on title

A

Items affecting title which may prevent transfer. For example, if a woman purchased a home prior to marriage, but sold it during the marriage and signed her married name on the grant deed, it would create a cloud on title.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Color of title

A

That which appears to be good title but isn’t

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

Commercial acre (buildable acre)

A

43,560 square feet minus the space taken by streets, alleys and sidewalks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Commercial area

A

A single line of store buildings along a major route, also known as a strip commercial development or a strip center

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Commingling

A

Occurs when an agent mixes a principal’s or client’s money with the agent’s own money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Community apartment project

A

A subdivision in which an owner sells apartment units to the tenants, with the tenants owning the parking area, halls, walks, etc. in common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Community property

A

Each spouse owns 50%. Community property is assumed when title says “husband and wife”. It’s also assumed whenever a husband and wife buy property, unless they specifically take title as joint tenants or tenants in common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Community Property Law

A

Comes from the Treaty of Guadalupe Hidalgo between the U.S. and Mexico

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Community Redevelopment Agency (CRA)

A

Funded through the issuance of tax allocation bonds and secured by anticipated property tax revenues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

Compaction

A

Compressing fill dirt to bear the weight of a building. A report on soil stability should be obtained from a registered civil engineer if a building’s foundation is cracked, and the doors and windows do not close properly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Company dollar

A

Calculated by subtracting commissions paid to sales agents from the gross income of the brokerage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Compensating balance

A

A provision in a loan requiring the borrower to keep a certain amount of money on deposit with the lender in return for the loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Complete escrow

A

Occurs when all properly prepared and signed escrow instructions become an enforceable contract and all the terms of the instructions have been fulfilled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

Concurrent estates

A

Ownership by two or more persons, with title held jointly and severally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Condition precedent

A

Something which must happen or be performed before an estate is vested in the grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Condition subsequent

A

Something which will cause an estate to be lost should a certain event happen.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Conduit

A

A metal pipe in which electrical wiring is installed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

Consideration (documentary transfer tax)

A

Selling price minus any existing loans assumed by the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

Consideration (contract law)

A

May be anything of value; doesn’t have to be money. It is one of the four essential elements of a contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

Contemporary style home

A

Usually one story, with flat or low pitched roof, large amount of glass, and designed with both indoor and outdoor living in mind

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

Constructive eviction

A

Any disturbance of a tenant’s use or possession of a leased premises which is caused by a landlord. The property must be rendered wholly or substantially unsuitable for the use for which it was leased.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

Constructive (legal) notice

A

Events which by law put people on notice. Recording a document gives constructive notice. The act of taking possession of land, while holding an unrecorded deed, gives constructive notice.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

Consumer price index (CPI)

A

Statistical measure of changes in the prices of goods and services over time. Measures the cost of living.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

Contract date

A

The date the contract was formed. A contract is formed when the final acceptance is communicated to the offeror.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

Conventional loan

A

Loans made by lenders without governmental guarantees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

Conversion

A

Stealing clients’ money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

Cooperative apartment (stock cooperative, co-op, stock co-op)

A

An apartment building, owned by a corporation, in which tenancy in an apartment is obtained by purchase of shares of the stock of the corporation. The owner of the shares (a tenant or lessee) is entitled to occupy a specific apartment in the building.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

Corporate seal

A

A corporate seal on a deed implies that the person signing the deed is authorized to sign for the corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

Cost approach

A

Used by an appraiser when other approaches are inappropriate (special purpose buildings, new subdivision homes). The cost approach is the least appropriate for appraising older buildings because as a building gets older, depreciation becomes difficult to calculate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

Cost basis

A

For tax purposes, it is the purchase price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
107
Q

Covenant

A

An agreement or promise to do or not to do a particular thing, such as an agreement to build a house of a particular architectural style or to use (or not use) property in a certain way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
108
Q

Crawl space

A

Distance between the ground and first floor of a building. Most building codes require that crawl spaces must be at least 18 inches high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
109
Q

Credit (in escrow closing statement)

A

Prepaid taxes appear as a credit to the seller in the escrow closing statement. A credit increases the amount balance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
110
Q

Cubic foot method

A

Used to determine the replacement cost of improvements in multistory structures when the height between floors varies (for example, the replacement cost of a warehouse would be calculated by cost per cubic foot).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
111
Q

Curable depreciation

A

Economically and physically possible to correct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
112
Q

Date of the appraisal

A

The date of the final writing or delivery of the appraisal report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
113
Q

Date of value

A

The date a property is inspected is generally used as the date of value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
114
Q

DBA (doing business as)

A

The fictitious business statement filed by a broker. It must be approved by the Real Estate Commissioner. A DBA is good for 5 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
115
Q

Debit

A

The selling price appears as a debit on the buyer’s closing statement. A debit increases the account balance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
116
Q

Debt-income ratio

A

Used by lenders as a loan qualifying tool

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
117
Q

Deciduous

A

Plants that lose their leaves in autumn and winter. It is not a type of soil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
118
Q

Deed

A

The written instrument, which, when properly executed, delivered, and accepted, conveys title to real property from one person (the grantor) to the other (the grantee). Deeds are indexed by the names of the parties (grantor and grantee).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
119
Q

Deed-in-lieu of foreclosure

A

A borrower voluntarily deeds property back to a lender to stop foreclosure. Junior liens against the property remain in place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
120
Q

Default on a mortgage

A

Usually requires court foreclosure. After a court foreclosure sale on a mortgage, the mortgagor (borrower) can redeem the property by paying the loan in full (statutory right of redemption). The mortgagor retains possession of the property until the right of redemption expires.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
121
Q

Deficiency judgment

A

Is possible only when there is a court foreclosure on a non-purchase money loan and the fair market value is less than the loan amount (this rarely occurs).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
122
Q

Deflation

A

Prices decrease. A decrease in prices causes an increase in the value of money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
123
Q

Demand sources

A

Construction, sales financing, and refinancing are all demand sources of borrowers for mortgage money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
124
Q

Department of Business Oversight

A

Previously called Department of Corporations, regulates incorporated escrows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
125
Q

Department of Housing and Urban Development (HUD)

A

A federal agency overseeing the nation’s housing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
126
Q

Deposit receipt

A

The contract used to write an offer, the contract selling real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
127
Q

Depreciation (appraisal)

A

Any loss in value. Depreciation accrues over time. Accrued depreciation is the most difficult kind to measure accurately. Unlike taxation, for appraisal purposes land can and does depreciate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
128
Q

Depreciation (taxation)

A

Allowed on improved income, trade or business property. Based on cost of improvements. For taxation purposes, land never depreciates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
129
Q

Desk cost

A

Calculated by dividing the operating expenses of the office by the number of agents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
130
Q

Discount points

A

Prepaid interest demanded by lender when a loan is negotiated. Each discount point costs one percent of the face amount of the loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
131
Q

Discount rates

A

Interest rate charged by the Federal Reserve Board when banks borrow money from it. Raising the discount rate tightens the money market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
132
Q

Discounting a note

A

Selling a note for less than the face amount or the current balance. When an investor buys a loan at a discount and later forecloses, the lender forecloses for the current loan balance, not the discounted amount.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
133
Q

Documentary transfer tax

A

Collected when a deed is recorded. The tax is based on consideration (selling price minus any existing loans assumed by the buyer).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
134
Q

Dominant tenement

A

The land that gets the benefit of an easement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
135
Q

Downzoning

A

Changing zoning from high density use to lower density use, such as changing from commercial C-1 zoning to residential R-1, or from R-3 to R-1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
136
Q

Drywall

A

Panels made of gypsum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
137
Q

Dual agency

A

Acting as an agent for more than one party (principal) in a real estate transaction. It’s illegal unless the agent has obtained the knowledge and consent of both parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
138
Q

Due diligence

A

Occurs when an agent promises to search for a buyer in an exclusive listing. It includes an obligation to advertise the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
139
Q

Easement

A

The right to enter or use another person’s land within definable limits; it may be created for any length of time and is irrevocable during the time limit specified. All easements are real property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
140
Q

Easement in gross

A

Benefits a person or corporation (such as a utility easement for power lines).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
141
Q

Easton vs. Strassburger

A

The court case that held that a seller and his or her agent must disclose to a buyer all facts materially affecting the value or desirability of a property. This decision led to the passage of the Seller Transfer Disclosure law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
142
Q

Economic life

A

The period of time in which an income property generates income in excess of its expenses. The economic life of a property is usually shorter than its physical life.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
143
Q

Effective age

A

The apparent age of an improvement as opposed to its actual age (for example, a property which is 20 years old, but has been superbly maintained, may have an effective age of 9 years).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
144
Q

Effective gross income (adjusted gross income)

A

Used to appraise income property, it’s the income left over after vacancies are subtracted from gross income, but before expenses are subtracted (used in the Capitalization approach).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
145
Q

Effective rate

A

The interest rate that is actually paid by the borrower for the use of the money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
146
Q

Elevation sheet

A

Shows the front and side views of homes in a subdivision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
147
Q

Emancipated

A

Married minors and veterans who are minors are considered emancipated and can enter into contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
148
Q

Eminent domain

A

Occurs when the government takes property, also called condemnation. It’s the power of government to take private property for public use; fair market value is paid for property taken under eminent domain. It’s not part of police power or zoning.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
149
Q

Encroachment

A

Wrongful placement of an improvement on another’s property, a type of trespass. An owner is allowed 3 years to sue a neighbor to have the encroachment removed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
150
Q

Encumbrances

A

Burdens on property, including money burdens (liens, such as trust deeds, mortgages, taxes, judgments, etc) and non-money burdens (zoning, easements, deed restrictions, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
151
Q

Money burdens

A

Type of encumbrance. Includes liens, such as trust deeds, mortgages, taxes, judgments, etc).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
152
Q

Non-money burdens

A

Type of encumbrance, including zoning, easements, deed restrictions, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
153
Q

Energy efficient ratio (EER)

A

Measures the efficiency of appliances, such as air conditioners. The higher the ratio, the more efficient the unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
154
Q

Equal dignities rule

A

When a contract is required to be in writing, the authority of an agent to enter into a contract for his principal must be in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
155
Q

Equity

A

The difference between the value and the loan on a property, the owner’s share of the total value of the property, or the initial down payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
156
Q

Erosion

A

The gradual wearing away of land by natural forces. It results in the loss of title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
157
Q

Escheat

A

Occurs when a person dies, leaving no heirs and no will, and the state gets his or her property. Land may never be acquired by escheat.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
158
Q

Escrow

A

The deposit of instruments and/or funds with a neutral third party who has been instructed to carry out the provisions of an agreement or contract. Purpose is to make sure that the conditions of transfer are met prior to closing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
159
Q

Escrow closing statement

A

Detailed accounting of all money received and distributed at close of escrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
160
Q

Escrow instructions

A

Are not usually notarized or recorded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
161
Q

Estate at sufferance

A

Created when a lessee stays in possession of the premises after the proper time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
162
Q

Estate at will

A

A lessee can stay as long as both the lessor and lessee mutually agree

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
163
Q

Estate for years (lease)

A

Any lease creates an estate for years. It must have a termination date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
164
Q

Estate in reversion

A

Held by the original grantor if the property is to revert back to him

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
165
Q

Estate of periodic tenancy (month to month)

A

Rental agreement that continues from period to period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
166
Q

Estates (what is owned)

A

Ownership rights and interests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
167
Q

Estoppel

A

A legal and equitable doctrine under which a person is barred from asserting or denying a fact because of the person’s previous acts or words

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
168
Q

Et Al

A

And others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
169
Q

Et ux

A

And wife

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
170
Q

Exclusive agency listing

A

A contract in which a seller agree to pay a commission to a listing agent of a property is sold by any agent; the seller also retains the right to sell directly to a buyer and pay no commission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
171
Q

Exclusive authorization and right to sell listing

A

A contract in which an owner agrees to sell through the listing broker only. If property is sold by anyone during the term of the listing, the listing broker is entitled to a commission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
172
Q

Exclusive loan listing

A

A contract employing a broker to find a loan for a borrower. It may not exceed a term of more than 45 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
173
Q

Executed

A

When escrow instructions are executed by both buyer and seller, they are signed. When escrow instructions are executed by an escrow agent, they have been fulfilled. When an escrow officer records a deed, he or she is executing escrow instructions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
174
Q

Executed contract

A

A contract in which both parties have completely performed their duties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
175
Q

Execution sale

A

Occurs when property is sold under a “writ of execution” to satisfy a judgment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
176
Q

Executive sale

A

There is no such thing. This is used in a trick question.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
177
Q

Executory contract

A

A contract in which something remains to be done by one or both parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
178
Q

Exposure

A

Merchants prefer properties on the south and west sides of the street, and the southwest corner of intersections. The north and east sides are less desirable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
179
Q

Express contract

A

A contract expressed in words, either oral or written

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
180
Q

Extended coverage policy

A

A title insurance policy that includes a survey and protects against unrecorded events

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
181
Q

External (economic or social) obsolescence

A

Caused by external events occurring outside property lines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
182
Q

Fair Employment and Housing Act (Rumford Act)

A

Prohibits discrimination in supplying housing accommodations based on race, color, religion, sex, marital status, national origin, ancestry, age, familial status or disability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
183
Q

False promise

A

A false statement about what a promisor is going to do. Not the same thing as a misrepresentation, which is a false statement of fact.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
184
Q

Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)

A

A major participant in the secondary mortgage market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
185
Q

Federal Housing Administration (FHA)

A

Created by the National Housing Act to encourage home ownership. FHA loans enable buyers to purchase homes with a small down payment, while insuring lenders against loss.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
186
Q

Federal Land Bank System

A

The best source for farm loans and loans on large tracts of land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
187
Q

Federal National Mortgage Association (FNMA, Title 3, Fannie Mae)

A

A major participant in the secondary mortgage market. Formerly a government agency, it’s now a corporation with stock traded on the NYSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
188
Q

Federal Reserve Board

A

Regulates banks and influences the money supply of the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
189
Q

Fee simple absolute

A

The greatest estate one can have in real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
190
Q

Fee simple defeasible

A

Conditions or limits on the use of the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
191
Q

Fee simple estate (of inheritance, perpetual estate, estate in fee)

A

An estate which is indefinite in duration and can be sold or inherited

192
Q

Fictitious trust deed or mortgage

A

A recorded trust deed or mortgage containing details which apply to later loan documents

193
Q

Fiduciary relationship

A

A relationship of trust and good faith. Similar to a trustee and a beneficiary; however a trustor doesn’t necessarily have a fiduciary relationship with a beneficiary

194
Q

Final public report

A

Issued by the Commissioner when all his requirements for a subdivision have been met. Valid for 5 years unless there is a material change.

195
Q

Fixed expenses

A

Property taxes and insurance

196
Q

Fixtures

A

Objects attached to the land. May become real property

197
Q

Flashing

A

Sheet metal used to protect a building from seepage of water, such as in the valley of a roof

198
Q

Footing

A

The concrete base or bottom of a foundation wall

199
Q

Forecasting

A

Occurs when an appraiser projects or estimates the annual expenses for an income producing property in a reconstructed operating statement

200
Q

Foreign Investment in Real Property Tax Act (FIRPTA)

A

Requires that a buyer of real property must withhold and send to the IRS 10% of the gross sales price if the seller of the real property is a foreign person

201
Q

Foundation plan

A

Shows the location of the footings and piers under a house

202
Q

Fraud

A

A misrepresentation which usually makes a contract voidable. The buyer or seller must have relied upon the misrepresentation to claim fraud

203
Q

Freehold estate

A

An estate of indeterminable duration

204
Q

Frivolous offer

A

An offer which no rational person would accept

205
Q

Front foot value

A

The deeper the lot, the greater the front foot value

206
Q

Front footage

A

The measurement of property on its street line, used for sale and valuation purposes

207
Q

Frontage

A

The distance a property adjoins a street or thoroughfare

208
Q

Fructus industriales

A

Crops which must be planted annually

209
Q

Funding of the buyer’s loan

A

Occurs when escrow notifies lender to release funds for the loan

210
Q

Gable roof

A

A pitched roof, sloping on 2 sides

211
Q

Government bonds

A

Government loan instruments. When the Federal Reserve Board sells existing government bonds through the Federal Open Market Committee, it tightens the money supply

212
Q

Government National Mortgage Association (GNMA, Ginnie Mae)

A

Major participant in the secondary mortgage market. It’s a federal agency within the Department of Housing and Urban Development (HUD).

213
Q

Grandfather clause

A

Allows an owner to continue to use structures which do not conform with new zoning laws

214
Q

Grant deed

A

The most commonly used deed, containing 2 implied warranties: 1) the grantor has not conveyed title to any other person, and 2) the estate is free from undisclosed encumbrances. These facts are warranted by the grant deed and not covered under title insurance.

215
Q

Gross lease

A

The lessor pays expenses (a fixed amount)

216
Q

Gross multiplier (rent multiplier, gross rent multiplier)

A

Found by dividing the sale price of comparable properties by their gross monthly or gross annual incomes

217
Q

Gross National Product (now called the Gross Domestic Product)

A

The measure of goods and services produced by the nation during any one calendar year

218
Q

Guaranteed note

A

A seller or agent guarantees the yield or return; it is classified as a real property security

219
Q

Hard money loan

A

A cash loan in which the borrower receives cash using a new note secured by a trust deed (for example, a home equity loan). The commissions, costs and expenses to negotiate hard money first trust deeds of less than $30k, and hard money junior loans of less than $20k, are limited by law.

220
Q

Hip roof

A

A roof sloping on all 4 sides

221
Q

Holder in due course

A

An innocent party who purchases a negotiable instrument without knowledge of any defects

222
Q

Homestead exemption

A

A method of protecting a limited amount of equity in a personal residence from subsequent unsecured creditors. A homestead must be recorded, and may be recorded by either spouse without the knowledge or consent of the other. A homestead is not an encumbrance.

223
Q

Housing accommodations

A

Improved or unimproved real property used or intended to be used as a residence by the owner; it consists of no more than 4 dwelling units

224
Q

Housing Financial Discrimination Act (Holden Act)

A

CA state law making discrimination in lending practices illegal

225
Q

HVAC

A

Heating, ventilation, air conditioning system in a commercial lease

226
Q

Hypothecate

A

The borrower retains possession of the item securing the debt (for example, a trust deed, mortgage, or pink slip for a car loan)

227
Q

Impound account

A

A trust account established to hold funds for future needs relating to a parcel of real estate. Impound means to hold, reserve, or impress.

228
Q

Income, trade, or business property

A

Property which produces income for the owner

229
Q

Incurable depreciation

A

Either too expensive or physically impossible to correct

230
Q

Inflation

A

Caused when there is more money available than there are goods for sale

231
Q

In-house sale

A

Transaction in which both the buyer and seller are represented by agents working for the same broker. When a brokerage has a property listed for sale, no agent in the brokerage may be the agent for the buyer only, because the brokerage has an agency relationship with the seller

232
Q

Injunction

A

Court order restricting a party from doing an act (such as violating private restrictions). A court order saying “stop that!”

233
Q

Institutional lenders (insurance companies, savings and loans, and commercial banks)

A

Receive most of their deposits from household savings of individual depositors

234
Q

Insulation

A

The R value measures the insulation’s resistance to heat. Wall insulation is considered adequate if the inside of an exterior wall is about the same temperature as interior walls

235
Q

Interim loan (short term)

A

Finances construction. The terms “interim loan” and “construction loan” are synonymous (they mean the same thing)

236
Q

Interim use

A

The current use, when the highest and best use is expected to change

237
Q

Internal (functional) obsolescence

A

Caused by events occurring within the property lines and observable during an inspection by an appraiser

238
Q

Interpleader action

A

Escrow would file an interpleader action in court to settle a dispute between the buyer and seller over the deposit

239
Q

Intestate succession

A

Occurs when a person dies without a will, but with heirs

240
Q

Inverse condemnation

A

When a private party forces government to purchase (for example, as a result of freeway or airport noise). Opposite of eminent domain

241
Q

Investment property

A

Vacant land held for an investment. When it is sold, losses can be deducted. Investment property cannot be depreciated.

242
Q

Joint and several liability

A

When there is more than one obligator (borrower) on a promissory note, the lender will include the terms “jointly and severally”

243
Q

Joint tenancy

A

Created when 2 or more persons take title as joint tenants. Four unities are required for joint tenancy (T-TIP): time, title, interest, possession

244
Q

Joist

A

One of a series of parallel beams used to support the ceiling and floors. It is a parallel

245
Q

Jones vs. Mayer

A

The U.S. Supreme Court case (decided in 1968) which upheld anti-discrimination laws on the basis of the 13th amendment to the U.S. Constitution

246
Q

Judgment lien

A

When an abstract of judgment is recorded, it creates a court ordered general, involuntary lien upon all real property of the debtor located in the county of recordation. A judgment lien is valid for 10 years and enforced by way of an execution sale. The court orders the sale of property to satisfy a judgment with a writ of execution.

247
Q

Junior loan

A

Any loan which is not first (for example, a second trust deed, or third trust deed, etc$

248
Q

Kickbacks

A

Any type of compensation from escrow companies, termite companies and title companies given to a licensee for referring business. Kickbacks are illegal

249
Q

Kiosk

A

A freestanding info booth in a mall

250
Q

Laches

A

An unfair delay in asserting legal rights which will not be excused by the court

251
Q

Land contract (real property sales contract, installment sales contract, agreement to convey, agreement for purchase and sale, or land contract of sale)

A

Written contract where the seller (vendor) agrees to transfer title to real property (give a grant deed) to the buyer (vendee) after the buyer has met the contract conditions

252
Q

Land residual method

A

An appraiser uses the land residual method when the unknown factor is the value of the land

253
Q

Lawful object

A

A contract must be legal in formation and operation. Both its consideration and object must be lawful

254
Q

Lender’s (ALTA) policy

A

Includes a survey and provides the lender with extended coverage protection

255
Q

Less-than-freehold estate (leasehold estate or chattel real)

A

Personal property, not real property. It’s the legal interest in real property held by a tenant who is leasing or renting.

256
Q

Lessee

A

Tenant

257
Q

Lessor

A

Landlord

258
Q

Leverage

A

Using borrowed money (financing) to the maximum extent possible

259
Q

License

A

The personal and non assignable right to do a particular act (or acts) on the land of another

260
Q

Liens

A

Money encumbrances placed against a property either voluntarily (with the owner’s consent) or involuntarily (without the owner’s consent). A lien is a charge against real property

261
Q

Life estate

A

A freehold estate, limited to the duration of someone’s life

262
Q

Life tenant

A

Holder of the life estate

263
Q

Like for like properties

A

In a 1031 tax deferred exchange it is “income, trade, business or investment properties”.

264
Q

Liquidated damages clause

A

A clause in a contract fixing the amount of damages in case one of the parties defaults

265
Q

Liquidity

A

Describes how quickly an investment can be turned into cash

266
Q

Liquidity of a business

A

Measured by subtracting current liabilities from current assets

267
Q

Lis pendens

A

Notice of pending litigation concerning title or possession of real property

268
Q

Listing

A

An employment contract between a principal (usually the seller) and an agent (broker) employing the agent to do certain things for the principal

269
Q

Listing with option to buy

A

An agent who has an option to buy a property which he has also listed for sale has a conflict of interest. To exercise his option to buy, the agent must reveal to the seller (in writing) any offers on the property and the amount of his profit. Additionally, to exercise his option, the agent must obtain the written consent of the seller.

270
Q

Littoral rights

A

Refer to non-moving water (pond, ocean, lake)

271
Q

Loan to value ratio (LTV)

A

The percentage of the appraised value which a lender will lend on a property. If a lender requires an 80/20 LTV, the lender will lend 80% of the lender’s appraised value and require a 20% cash down payment

272
Q

Lock-in clause

A

A borrower is prohibited from paying off a loan in advance

273
Q

Marginal tax rate

A

The tax rate on the next dollar earned

274
Q

Marketability

A

The most important test of functional utility

275
Q

Market rent (economic rent, scheduled gross income)

A

The rent a property would bring in the open market on the date of appraisal. It represents the potential gross income the property can produce.

276
Q

Market data approach (comparison, comparative, or substitute method)

A

Sales of similar properties in the area are studied to form an opinion of value. The market data approach is the oldest, quickest, and easiest to learn approach. It’s very adaptable and commonly used to appraise residences and land. The market data approach is also used to appraise amenity properties.

277
Q

Market value (objective value)

A

Based on a “willing buyer” and “willing seller” concept. It’s the most likely price the property should bring on the open market within a reasonable length of time.

278
Q

Material facts

A

Facts which are likely to influence or persuade a party to enter into a contract

279
Q

Mechanic’s liens

A

Liens recorded by persons who have performed work or furnished materials for the improvement of real property, for which they were not paid. They must be verified and recorded.

280
Q

Metes and bounds

A

A legal description of land created by a survey. Metes and bounds describes boundaries but does not measure land or buildings.

281
Q

Minimum cash reserve

A

The Federal Reserve Board requires banks to keep a small percentage of money deposited in their vaults as a reserve to meet cash requirements of depositors. Raising the minimum cash reserve tightens the money market.

282
Q

Misrepresentation

A

Failure to disclose material facts, lying

283
Q

Mistake

A

Contract is void or voidable

284
Q

Mortgage

A

A document used to secure payment of a promissory note; it’s seldom used in California. Mortgages are not negotiable instruments.

285
Q

Mortgage loan

A

A loan secured (collateralized) by real estate

286
Q

Mortgage loan disclosure statement (loan broker statement)

A

Provides a borrower with detailed information about a loan, including all costs and expenses that will be charged to the borrower. This statement must be given to the borrower when signed, for every loan negotiated by a broker.

287
Q

Mortgage yield

A

The interest (not the principal) which a lender receives from a mortgage

288
Q

Mortgagee

A

The lender in a mortgage

289
Q

Mortgagor

A

The borrower in a mortgage

290
Q

Mutual consent

A

For a contract to be valid, there must be mutual consent or assent to the terms. In real estate contracts, mutual consent is created by three steps: offer, acceptance, & communication of acceptance back to offeror

291
Q

Mutual mortgage insurance

A

Required for FHA loans. It protects the lender in case of foreclosure and is paid by the borrower, either as a lump sum or amortized

292
Q

Negative amortization

A

Occurs when monthly loan payments are insufficient to pay the interest and/or principal payments necessary to pay off the loan. As a result, the loan balance increases

293
Q

Negative declaration

A

Under the Environmental Quality Act, a negative declaration indicates that a subdivision does not harm the environment

294
Q

Negotiable instrument

A

A written document which is freely transferable, like money (such as personal checks, bank drafts, and promissory notes). Mortgages, trust deeds, and land contracts are NOT negotiable instruments.

295
Q

Net lease

A

A lessee pays expenses such as taxes, insurance, and maintenance

296
Q

Net listing

A

Any listing where an agent receives all money over a set selling price as his commission, rather than a percentage of the selling price

297
Q

Nominal rate

A

The interest amount named in the loan document

298
Q

Nonconforming use

A

A preexisiting, ongoing use of a property in a manner which is now prohibited by a change in zoning laws

299
Q

Notice of nonresponsibility

A

Recorded by the owner if someone else (such as a tenant or vendee in a land contract) has work done on the owner’s property. The notice must be recorded within 10 days of obtaining knowledge of the improvement

300
Q

Novation

A

The agreement of parties to substitute a new contract for an existing one with the intent to replace the original contract. A broker might be replaced in a listing by way of Novation.

301
Q

Observed condition method

A

For appraisal purposes, it involves considering functional obsolescence, economic obsolescence, and physical deterioration

302
Q

Obsolescence

A

The major cause of depreciation for appraisal purposes. Obsolescence is a cause of depreciation, not a method of calculating depreciation

303
Q

Open end loan (revolving line of credit)

A

Allows borrower to re-borrow principal previously paid back

304
Q

Open listing (nonexclusive listing)

A

A contract given by an owner authorizing a broker to act as his agent. The broker must be the procuring cause (responsible for the consummation of the transaction) to be entitled a commission.

305
Q

Option

A

A contract to keep an offer to lease or sell real property open for a set period. The optionor agrees not to revoke his offer to sell during that time.

306
Q

Or more clause

A

Permits borrower to pre-pay without penalty

307
Q

Orientation

A

Placement of a building on a lot in relation to exposure to sun, prevailing wind, traffic, and privacy from the street

308
Q

Ostensible authority

A

Apparent authority

309
Q

OWC (owner will carry)

A

When a seller carries back a trust deed from a buyer, the seller is the beneficiary and the buyer is the trustor. It creates a specific voluntary lien against the property.

310
Q

Panic selling (blockbusting)

A

When agents attempt to persuade homeowners to sell by telling them that members of another ethnic group are moving into the neighborhood. It violates both state and federal law.

311
Q

Paramount title

A

Title which is superior or foremost to all others

312
Q

Party wall

A

A wall built on the line between two adjoining properties, which are under different ownership, for the use of both properties. A wall separating two units in a condo complex may be described as a party wall

313
Q

Pass-through securities

A

The Governmental National Mortgage Association (Ginnie Mae) guarantees the principal and interest on mortgages in pass-through securities. A mortgage company would buy pass-through securities in times of changing financial conditions.

314
Q

Percentage lease

A

A lease in which the lessee pays rent based on a percentage of the gross receipts of the lessee’s business

315
Q

Percolating water

A

Underground water which does not flow in a defined channel

316
Q

Percolation test

A

A soil analysis that determines how quickly water will seep through soil (such as for sewage purposes). A percolation test would be conducted before a septic tank is installed.

317
Q

Perfect escrow

A

Describes when all the money, documents and signed escrow instructions required to close escrow have been delivered to the escrow agent

318
Q

Perpetuity

A

An interest in real estate which may last for an unlimited period of time, such as an estate in perpetuity or easement in perpetuity

319
Q

Personal residence

A

The primary residence of a taxpayer

320
Q

Physical deterioration

A

Caused by events occurring within property lines. It is a cause of depreciation for appraisal purposes.

321
Q

Pledge

A

An existing loan, given as security for a new loan

322
Q

Plot plan (plot map)

A

Shows the location of improvements on a lot

323
Q

Plottage

A

Joining two or more lots together for an increase in value; the increased value is above and beyond the value of the individual lots together

324
Q

Pocket listing

A

A listing which is hidden from other agents

325
Q

Police power (government regulation of property)

A

The right of government to pass and enforce laws for the order, safety, health, morals, and general welfare of the public (such as rent control, planning and zoning laws, building and subdivision laws). It’s not part of eminent domain law.

326
Q

Potable

A

Water that is suitable for drinking

327
Q

Preliminary title report

A

Prepared before title insurance policy is issued and shows most recorded documents that have an effect on title

328
Q

Prepayment penalty clause

A

Allows borrowers to prepay a loan only if extra money is paid to the lender. A prepayment penalty is not allowed on a loan against the borrower’s residence after the loan is 5 years
old

329
Q

Prescription

A

An easement may be acquired by five years of open, notorious, continuous, hostile use, under a claim of right or color of title. Confrontation with the owner is not required, and the property taxes need not be paid. An easement by prescription terminates after five years of non-use

330
Q

Price (market price)

A

What the buyer pays for a property. Conditions of the sale may affect price (for example, good financing, a forced sale, or high-pressure salesmanship).

331
Q

Price indexes

A

Determine the purchasing power of the U.S. Dollar

332
Q

Primary mortgage market

A

Where institutional and non-institutional lenders originate loans

333
Q

Principal

A

Either the owner or buyer of a property. If a principal employs an agent, the principal is responsible for the agent’s actions

334
Q

Principle of change

A

Property values change constantly. A typical neighborhood goes through 3 phases of change: integration, equilibrium, and disintegration

335
Q

Principle of contribution

A

When appraising a component or portion of income property, the appraiser considers its contribution to the net return

336
Q

Principle of highest and best use

A

The best use of a parcel of land, the use which will most likely produce the greatest net rate of return over a given period of time

337
Q

Principle of regression

A

The value of expensive homes is lowered when homes of lesser quality (sub-standard) are built nearby

338
Q

Principle of substitution (used in all appraisal techniques)

A

The maximum value of a property is determined by the cost of acquiring an equally desirable substitute property. It is the basis of the market data approach and is also known as the comparison or substitution approach

339
Q

Priority

A

Refers to who gets paid first when a property is foreclosed. Assessment liens have priority over all private liens, such as trust deeds or mechanic’s liens. Mechanic’s liens have priority as of the day work began or materials were furnished. They do not have priority over government liens.

340
Q

Private mortgage insurance (PMI)

A

A private program similar to FHA Mutual Mortgage Insurance

341
Q

Private restrictions

A

Created by the grantor or developer either in a deed or by written agreement (CC&Rs). They do not include zoning laws or liens.

342
Q

Progressive tax

A

The federal income tax is a progressive tax. The higher your income, the higher percentage of tax you must pay

343
Q

Promissory note

A

A negotiable instrument which serves as evidence of debt. It’s also called a debt repayment contract

344
Q

Promotional note

A

One of a series of notes that is less than 3 years old and is secured by liens on parcels in a subdivision. After 3 years, the note ceases to be a promotional note and is no longer regulated as a real property security

345
Q

Promulgate

A

To publish or make laws known. The Real Estate Commissioner has the right to promulgate regulations which control the actions of real estate licensees and have the force and effect of law

346
Q

Property residual technique (The simplest method)

A

Land and improvements are valued as a single unit. The property’s total net income is divided by one “overall” cap rate

347
Q

Proration

A

The division of expenses such as taxes, insurance, interest on an assumed loan, and rent at the close of escrow. Most proration problems can be answered in 2 steps: 1) establish who is going to pay, and 2) calculate the amount using a 30-day month and 360-day year (banker’s year)

348
Q

Public restrictions

A

Laws passed by government to regulate the use of property, most commonly zoning laws

349
Q

Puffing

A

Occurs when, in an ad, a broker exaggerates features of the property or location by giving his or her opinion as part of the sales process. Examples include, “this is a great house,” “this property is a wonderful buy”. Puffing is considered to be misrepresentation only if a reasonable person would rely upon the statement as a fact, rather than as an opinion.

350
Q

Purchase-money loan

A

Any seller financing or loan created to purchase one-to-four owner-occupied residential units

351
Q

Quantity survey method

A

A detailed estimate of all labor and materials is compiled for each component of the building. It’s accurate, but time consuming, and is seldom used (except by builders)

352
Q

Quiet title action

A

A court suit to perfect title, usually by removing a cloud on title. A quiet title action would be used to clear title under a forfeited recorded contract (land contract)

353
Q

Quitclaim deed

A

Usually used to quiet title or to clear a cloud on title. It contains no warranties and merely conveys the rights of the grantor (if any)

354
Q

Ratification

A

Approval by principal of an agent’s actions after the fact

355
Q

Real Estate Commissioner

A

The head of the BRE. He or she issues regulations which have the effect of law and appear in the California Code of Regulations

356
Q

Real Estate Settlement Procedures Act (RESPA)

A

Provides purchasers with fast and reliable information on the costs of completing a real estate transactions for buyers of one-to-four residential units with a federally regulated loan

357
Q

Real property securities

A

Historically, these transactions are likely to involve fraud. In order to prevent fraud, special rules apply when selling real property securities

358
Q

Realtist

A

A member of the National Association of Real Estate Brokers, historically composed primarily of African-American Real Estate Brokers

359
Q

Realtor

A

A member of the National Association of Realtors

360
Q

Reconstructed operating statement

A

An estimate of income and expenses (including management costs). It is used in the capitalization approach to appraisal. Management is the most overlooked expense, but there is always a management expense

361
Q

Recorded tract map or lot and block system

A

When land is subdivided, a tract map showing the location of parcels is recorded. A legal description of a piece of property can be created by reference to this map.

362
Q

Recovery account

A

A portion of real estate license fees is put into an account to protect the general public when a judgment or arbitration award against a licensee is un-collectible. Recovery is limited to $50k per transaction, $250k maximum per licensee.

363
Q

Recurring costs

A

When mentioned in a closing statement, they include impounds

364
Q

Redemption

A

A right to buy back your property after a court-ordered sale

365
Q

Reconveyance deed

A

Signed and recorded by a trustee to remove a trust deed when a loan is paid in full

366
Q

Redlining

A

Charging higher interest rates or not lending in certain neighborhoods based upon “suspect characteristics” like race, color, creed, age, national origin, etc.

367
Q

Rehabilitation

A

Restoration of property to a former or improved condition without changing the basic plan or design

368
Q

Release clause

A

Allows a portion of land to be release upon partial payment of a debt. When part of the debt is paid, the beneficiary of a Blanket Trust signs a Request for Partial Reconveyance. The trustee then signs and records a Partial Reconveyance Deed

369
Q

Reliction

A

An increase in land by the permanent withdrawal of a sea or river

370
Q

Renegotiable rate mortgage

A

Can adjust by no more than 5% over the life of a loan

371
Q

REO (Real Estate Owned)

A

Foreclosed property which is now owned by the lender

372
Q

Replacement cost (of an improvement)

A

The cost to build a comparable structure

373
Q

Request for full Reconveyance

A

Signed by a beneficiary and sent to a trustee when a loan is paid in full. The trustee then signs and records a Reconveyance Deed to clear the lien from public records

374
Q

Request for notice of default

A

Recorded by the beneficiary of a junior loan to ensure that the beneficiary will be notified if the borrower defaults on a prior loan

375
Q

Rescission of the contract

A

When a party to a contract backs out and returns anything received under the contract

376
Q

Reserves for replacement

A

Typically a monthly allocation to provide money for replacement of carpets, appliances, etc. for income property

377
Q

Resident property manager

A

May only manage the property where he or she resides without having a real estate license. The owner of a residential property with 16 or more units must live in the property or have a resident property manager

378
Q

Restrictions

A

Restrict the free use of the land by an owner

379
Q

Return of the investment

A

Depreciation of improvements

380
Q

Return on the investment

A

Interest or profit

381
Q

Ridgeboard

A

The highest structural point in a frame house

382
Q

Right of redemption

A

After a judicial foreclosure, the borrower has the right to buy the property back from whoever purchased it. There is no right of redemption after a trustee sale.

383
Q

Right of survivorship

A

The most important characteristic of joint tenancy. If one joint tenant dies, the surviving joint tenant(s) receive the decedent’s interest automatically and avoids probate. A joint tenant may do anything except will their tenancy.

384
Q

Riparian rights

A

Refer to moving water (stream, river, watercourse)

385
Q

Rumford Act (Fair Employment and Housing Act)

A

California state law which forbids discrimination in housing transactions. Complaints are submitted to the California Department of Fair Employment and Housing which also enforces fair housing laws on the state level. Victims have one year to file a complaint.

386
Q

Sale-Leaseback

A

occurs when a seller (holder of a freehold estate) becomes a tenant (holder of a less-than-freehold estate). It allows a seller to deduct future rent payments as a business expense.

387
Q

Salesperson

A

an employee or independent contractor of a broker. A salesperson may receive compensation for real estate acts only from an employing broker. It’s illegal for a salesperson working as a broker to receive a referral fee or commission from a lender, loan broker, developer, or seller.

388
Q

Schematics

A

preliminary architectural drawings, such as site plans and elevations.

389
Q

Seasoned Loan

A

an existing loan with a good history of on time payments. Investors buying existing loans prefer buying seasoned loans because they have less risk.

390
Q

Secondary Mortgage Market

A

a resale marketplace for loans; it is where existing loans are bought and sold.

391
Q

Secret Profit

A

an agent may not make an undisclosed profit in a real estate transaction.

392
Q

Section

A

the legal description of a square parcel of land measuring 1 mile by 1 mile (5,280 feet by 5,280 feet). It contains 640 acres.

393
Q

Section 8

A

The purpose of HUD’s Section 8 program is to make affordable housing available to very low income individuals/families, senior citizens, and persons with disabilities by providing rent subsidies to private landlords.

394
Q

Secured Trust Deeds

A

an agent may advertise “secured trust deeds” as long as she or he discloses the extent to which the trust deeds are secured.

395
Q

Seller Transfer Disclosure Statement (TDS)

A

a seller (transferor) must provide a buyer of one-to-four residential units with a standard form which discloses the condition of the property. The form includes both the condition of the improvements and the condition of the land. This statement is not required for husband-wife transfers, probate sales, foreclosure sales, bankruptcies, and REOs.

396
Q

Seller’s Market

A

exists when prices rise and there are more buyers than sellers

397
Q

Servient tenement

A

the land that is crossed by an easement and is encumbered (burdened) by the easement

398
Q

Setback

A

the distance a building must be set back from the street, the side, and the back boundary lines. It effects the property’s dimensions for building purposes only.

399
Q

Severalty

A

separate ownership, ownership by one person or corporation, sole ownership

400
Q

Severance

A

describes the act of removing something attached to the land, and by doing so, changing its status from real property to personal property

401
Q

Servitude

A

is a burden on land which transfers automatically when the land is sold

402
Q

Sheathing

A

plywood panels placed beneath roof tiles to prevent water seepage

403
Q

Short Rate

A

a refund received by a seller when a home is sold and the homeowner’s insurance is canceled. The short rate refund is less than the credit the seller would receive if the buyer were to take over the existing homeowner’s insurance policy.

404
Q

Side Yard Setback

A

the distance a building must be set back from the side line of the lot

405
Q

Sill (mudsill)

A

the lowest part of a frame house. It rests on the foundation.

406
Q

Simple Interest

A

charged on an unpaid principal amount and used on most home loans. Interest is calculated by the formula: Interest = Principal X Rate X Time (I = PRT).

407
Q

Smart Growth

A

an urban planning and transportation theory that concentrates growth in compact urban walkable centers to avoid sprawl. It also advocates compact, transit-oriented, walkable, bike-friendly land use, including neighborhood schools, complete streets, and mixed-use development with a range of housing choices.

408
Q

Soldiers and Sailors Civil Relief Act

A

limits foreclosure

409
Q

Soleplate

A

a board on which walls and partition studs rest

410
Q

Specific Performance

A

a lawsuit for force a party to a contract to perform the act they promised to perform. It is used only when dollar damages do not provide an adequate remedy. When a seller wrongfully backs out of a contract to sell real property, it’s the opinion of the law that “all real property is unique” and therefore dollar damages will not make the buyer “whole”. When suing for specific performance, the court will order the seller to sign the deed, if the buyer can prove the monetary compensation was sufficient relative to the value of the property.

411
Q

Square Foot Method

A

appraisers use exterior dimensions and compare the cost to build an improvement of similar quality. It costs less per square foot to build a two story structure than a one story structure with the same square footage.

412
Q

Standard Coverage (CLTA) Policy

A

the most commonly purchased title policy. It covers matters of record, lack of capacity, forgery, and defective delivery of a deed. It does not include a site inspection or survey.

413
Q

Standby Commitment

A

anytime a lender agrees to provide a loan at a set interest rate and at some future time

414
Q

State Responsibility Area

A

in a state responsibility area, the state (as opposed to a local or federal agency) has the primary financial responsibility for the prevention and extinguishing of brush and forest fires.

415
Q

Statute of frauds

A

determines which contracts must be in writing to be enforceable

416
Q

Statute of limitations

A

determines how long an individual can wait to sue

417
Q

Steering

A

showing homes only in segregated areas to minority buyers violates fair housing laws (for example, an agent avoids showing homes to Hispanic buyers in an area where no Hispanics live)

418
Q

Stock in a mutual water company

A

appurtenant to the land. It’s considered real property. This stock provides access to water at reasonable rates to the land owner.

419
Q

Straight line depreciation

A

under current tax law, annual depreciation is calculated by dividing the value of improvements by the depreciable life (27.5 or 39 years)

420
Q

Straight Note (term note)

A

all of the principal is paid at maturity. The interest may be paid during the term of the note or at maturity. Straight notes generally carry higher interest rates rather than amortized installment notes.

421
Q

Subagent

A

an agent appointed by the seller’s agent to perform some or all of the seller’s agent’s duties. If the principal has authorized the agent to appoint a subagent, the principal is responsible for the acts of the subagent.

422
Q

Subchapter-S Corporation (S-Corporation)

A

gains and losses pass directly to the shareholders

423
Q

Subdivided lands law

A

Designed to prevent fraud. It is regulated by the Commissioner.

424
Q

Subdivision Map Act

A

grants cities and counties control over the design (physical improvements) of a subdivision (such as streets and sewers)

425
Q

Subject to

A

when a buyer takes a property subject to an existing loan, the lender will keep the seller on the loan as the borrower. The seller is liable for any deficiency, and the buyer’s loss is limited to his equity if there is a foreclosure (the benefit is to the buyer)

426
Q

Sublease

A

an original lessee gives up a portion of his overall interest in the leasehold. A sublease transfers possession of real property, but not ownership. The original lessee is liable for rent.

427
Q

Subordination clause

A

a clause in which a lender agrees to give up priority to later loans. A subordination clause benefits the trustor (borrower).

428
Q

Substandard loan

A

a loan likely to go into default

429
Q

Substitution of Liability

A

when a lender agrees to a substitution of liability, the seller is relieved from any liability on the loan

430
Q

Sufficient consideration

A

anything of value; it doesn’t have to be money; it can be a benefit conferred or a promise. In a bilateral contract, the promises are often the consideration. Every executory contract requires consideration.

431
Q

Surrender

A

lessor and lessee mutually agree to terminate the lease

432
Q

Syndications

A

invest in real estate and sometimes make real estate loans. They are sometimes formed as corporations which have limited liability and may hold title to both real and personal property.

433
Q

Take-out loan (long-term)

A

received by a buyer to pay for new construction. The proceeds are used by a builder to pay off an interim (construction) loan

434
Q

Tax deferred exchange (1031 exchange)

A

when property is exchanged, taxes may be deferred. The properties exchanged must be “like for like” properties. They must be any combination of income, trade or business, or investment properties.

435
Q

Tax shelter

A

an investment, such as real estate, which allows an investor to defer payment of taxes on current income to a later year

436
Q

Taxable (recognized) gain

A

the smaller of the actual gain or the boot. Taxable gain is taxed on the year of the exchange.

437
Q

Tenancy

A

a mode or method of holding title to property

438
Q

Tenancy in common

A

may be the title vesting when 2 or more persons own an undivided interest in a property. It only requires one unity (unity of possession).

439
Q

Tender

A

an unconditional offer of money or performance according to the terms of a contract

440
Q

Termite inspection

A

should be made before the property is listed for sale

441
Q

Termite report

A

filed with the Structural Pest Control Board. Copies are retained for 2 years and can be obtained by anyone. A copy must be given to the owner.

442
Q

Tight money market

A

will cause a decrease in real estate taxes and will increase the use of second trust deeds

443
Q

Time-share

A

a subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on a weekly or some other periodic basis, for a specifed period of time.

444
Q

Title plant

A

the records maintained by a title insurance company of recorded documents affecting real estate

445
Q

Title policy

A

an insurance policy insuring a title holder (grantee) and any heirs that a marketable title was received (reasonably free from doubt in law)

446
Q

Title vestings

A

how property is owned, also called tenancy

447
Q

Title VIII of the Civil Rights Act of 1968 (aka Federal Fair Housing Act or Federal Open Housing Law)

A

prohibits discrimination in housing transactions

448
Q

Topography

A

limited irregularity in contour is best for residential property

449
Q

Tort

A

a negligible or intentional wrongful act arising from breach of duty

450
Q

Toxic waste report

A

recommended if a property is next to an abandoned gas station

451
Q

Trade fixture

A

a fixture attached to real property as part of the tenant’s trade or business. A trade fixture is the personal property of a business tenant.

452
Q

Trust deed

A

the instrument used in California to secure payment of a promissory note. Trust deeds are not negotiable instruments.

453
Q

Trust fund account

A

a separate checking account used to hold clients’ money

454
Q

Trustee (agent for the beneficiary)

A

an agent chosen by the beneficiary. A trust deed conveys the power to sell a property by way of a trustee’s sale (nonjudicial foreclosure) from the trustor to the trustee. This right to sell the property by a nonjudicial foreclosure is called “bare title”. The trustee reconveys the bare title when the debt is paid in full.

455
Q

Trustor

A

the borrower in a trust deed. A trustor signs the promissory note and trust deed, which gives trustee the right to foreclose by way of a trustee sale. The trustor retains legal title.

456
Q

Truth-in-lending law (Regulation Z)

A

part of the Federal Consumer Credit Protection Act to protect borrowers and assure a meaningful disclosure of credit terms

457
Q

Turnkey project

A

one that is ready for occupancy; a tenant can move in immediately

458
Q

U.S. Government Rectangular Survey System

A

describes very large pieces of land (desert land, ranches and farms. Land is referred to in terms of Townships and Sections.

459
Q

Unearned increment

A

occurs when property gains value due to either inflation or an increase in population

460
Q

Unit-in-place cost method

A

adds together the cost of individual structural components of a building. It is time consuming and seldom used.

461
Q

Unlawful detainer action

A

a lawsuit to evict a lessee. It is brought by an offended lessor.

462
Q

Unruh Civil Rights Act

A

prohibits discrimination by businesses

463
Q

Usury

A

the conscious charging by a private lender of more than the maximum amount of interest allowed by law. The interest on a loan negotiated by a real estate broker is exempt from the usury law limits.

464
Q

Utility value (subjective value)

A

the value of the property based on its use by the owner

465
Q

Valid contract

A

a contract that is binding and enforceable. It has the 4 essential elements required by law: mutual consent, capable parties, lawful object, and consideration.

466
Q

Value (worth)

A

the relationship between the thing desired and the purchaser, the power of one commodity to attract other commodities in exchange. It is also defined as the present worth of future benefits arising from ownership of property.

467
Q

Vendee

A

the buyer in a land contract becomes an equitable owner holding equitable title (the right to use and possess)

468
Q

Vendor

A

the seller in a land contract, the vendor holds legal title

469
Q

Veterans’ Administration (VA, GI)

A

government financing to provide real estate loans for veterans

470
Q

Void contract

A

not a contract, it lacks legal effect

471
Q

Voidable contract

A

a contract which is valid and enforceable on its face, but because of some deficiency, one or more of the parties may reject (void) it. A voidable contract is valid until it is voided (rescinded).

472
Q

Waiver

A

a unilateral act and its legal consequences

473
Q

Warehousing

A

collecting loans prior to sale. It involves putting together mortgage portfolios.

474
Q

Warranty deed

A

No longer in use. In California it has been replaced by title insurance.

475
Q

Water table

A

the depth at which water is found

476
Q

Zoning

A

the government division of land into districts according to use

Real Estate Exam Terms (7 decks)

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