Terms Pt.1

Question 1

100% Commission Plan

Answer 1

(6) A method of compensating salespeople where each salesperson pays the broker a monthly fee for the use of office space, support services, and the broker’s name, and in return, the salesperson keeps 100% of the commissions.

Question 2

4-3-2-1 Rule

Answer 2

(12) A method of estimating the value of lots with more than standard depth, a depth table.

Question 3

Abatement

Answer 3

(10) A decrease or reduction. A tenant might be entitled to an abatement of rent if the rented premises are damaged by a storm.

Question 4

Absolute Delivery

Answer 4

(4) A grantor’s hand delivery of a deed to the grantee.

Question 5

Abstract of Title

Answer 5

(4) A condensed history of all conveyances, liens, encumbrances, judgments, and other court decisions affecting the property.

Question 6

Acceleration Clause

Answer 6

(14) Mortgage loan provision which permits the lender to demand the entire loan balance be immediately paid in full in the event of default.

Question 7

Acceptable Buyer

Answer 7

(6) A buyer whose offer is acceptable to the seller, though different from the terms in the broker’s listing agreements.

Question 8

Accession

Answer 8

(1,4) The acquisition of title by the owner of real property to those things attached to the property by others, such as tenants or trespassers or by nature.

Question 9

Accretion

Answer 9

(4) The gradual addition to land resulting from some natural force, such as the action of water or wind.

Question 10

Accrual for Depreciation

Answer 10

(12) A process for recovery of investment in a building; also called Return of Investment.

Question 11

Accrued Depreciation

Answer 11

(12) Past depreciation; the actual depreciation in a property that has already occurred as of a given date.

Question 12

Acknowledgement

Answer 12

(4) A formal declaration made by the grantor in the presence of an authorized official that the deed was signed voluntarily. Required in most states for recording, but has no effect on validity.

Question 13

Acre

Answer 13

(1) A measure of land area equal to 43,560 square feet.

Question 14

Action to Quit Title

Answer 14

(4) A court action to settle a title dispute or clear a title of defects.

Question 15

Active License

Answer 15

(18) Status of an individual who has met all qualifications to practice real estate as a broker, associate broker, or salesperson; and such license is held by a broker, not the Commission.

Question 16

Actual age

Answer 16

(12) The number of years a building has been in existence.

Question 17

Actual agency

Answer 17

(6) An agency established by agreement, either written or verbal.

Question 18

Actual Communication

Answer 18

(8) Oral or written communication to the offer or that the offeror has accepted the offer.

Question 19

Actual Eviction

Answer 19

(10) A legal process to remove a tenant who holds over after the right of possession has ended, usually resulting from failure to pay rent.

Question 20

Actual Fraud

Answer 20

(8) A deliberate misrepresentation of a material fact, made with the intent of inducing the other party to act upon it to one’s detriment. Can be done by words or silence.

Question 21

Actual Notice

Answer 21

(4) Knowledge that one acquires from what is heard, read or observed.

Question 22

Ad Valorem Tax

Answer 22

(5) A tax assessed against real property based upon its value. Revenue from such taxes is used to pay for the general operational expenses of the taxing authority.

Question 23

Addendum

Answer 23

(8) (aka Exhibit) A page added to a form contract for the purpose of including essential terms or to provide supporting documentation, such as plats or a power of attorney. It must be referenced in the contract by reference then initialed and dated by the parties.

Question 24

Adjustable Rate Mortgage

Answer 24

(14) Mortgage loan which allows the lender to periodically adjust the interest rate, up or down to reflect changes in market rates.

Question 25

Adjusted Sales Price

Answer 25

(12) The price put on a comparable property after adjustments have been made for differences between it and the subject property.