Terms Pt.8

Question 1

Discount Points

Answer 1

(14) The percentage of a loan which determines the amount paid to the lender to increase the yield. one discount point is equal to one percent of the loan amount.

Question 2

Discount Rate

Answer 2

(14) The rate of interest the Federal Reserve System charges member banks to borrow money. By controlling the discount rate, the Federal Reserve controls the money available for credit.

Question 3

Disintermediation

Answer 3

(14) Occurs when withdrawals exceed deposits from savings and loan associations or other similar institutions because alternative investments offer a more attractive return.

Question 4

Dominant Estate

Answer 4

(2) The land parcel which benefits from an easement appurtenant. When title to the land is conveyed, the easement is automatically transferred to the new owner.

Question 5

Dower

Answer 5

(2) A wife’s life estate in the real property owned by her husband and conveyed to her by law upon his death.

Question 6

Dual Agency

Answer 6

(6/18) Representing both the buyer and the seller in the same transaction. This practice constitutes a violation of the License Law, unless both parties give their written consent.

Question 7

Dual Agent

Answer 7

(6) A broker who has entered into a brokerage engagement with both seller and buyer or landlord and tenant in the same transaction.

Question 8

Due Diligence

Answer 8

(6) A proper and fair degree of care a buyer might use in inspecting a proposed purchase, or the time period within which the buyer should have to make that inspection.

Question 9

Duress

Answer 9

(8) The use of force to compel a person to enter into a contract.

Question 10

Earnest Money

Answer 10

(8/18) The purchaser’s initial commitment of something of value to indicate that he wants to buy the property according to the terms of the offer being submitted. Earnest money deposits received by the broker must be placed in his designated trust account, until the transaction is either closed or otherwise terminated.

Question 11

Easement Appurtenant

Answer 11

(2) An easement which grants a right of use to one parcel of land in and on another parcel. The land over which the easement runs is the servient estate. The land benefiting from the easement is the dominant estate.

Question 12

Easement in Gross

Answer 12

(2) A legal right to use the land of another. It involves only one parcel of land and does not benefit any particular property. There are two types: commercial and personal.

Question 13

Easement

Answer 13

(2) A legl right to use the land of another for a specific purpose and in a specific manner. The right only constitutes an interest in the land. It does not give the easement owner an estate.

Question 14

Economic Obsolescence

Answer 14

(12) Loss in value due to adverse conditions external to the property and therefore, beyond the owner’s control; also called social, locational, or Environmental Obsolescence.

Question 15

Economic Rent

Answer 15

(10/12) The amount of rent a property could command in the open market; also called Market Rent.

Question 16

Effective Age

Answer 16

(12) A property’s age based upon its condition and appearance, may be more, the same, or less than its actual age.

Question 17

Effective Gross Income

Answer 17

(12) The actual gross income a property is expected to produce; determined by projecting a property’s potential gross income and then making allowances for vacancies and collecting losses.

Question 18

Egress

Answer 18

(2) An exit leading from the parcel of land.

Question 19

Ejectment

Answer 19

(10) The legal process to have a trespasser or tenant at sufferance removed from property.

Question 20

Emblements

Answer 20

(1) Crops that require annual cultivation. They are considered personal property even though attached to the land. Also called Fructus Industriales.

Question 21

Eminent Domain

Answer 21

(2) The gov’t right to take private property for public use with or without the consenting of the owner upon payment of a just compensation to the owner. The right may be with or delegated to quasi-public corporations, such as utility companies. The court suit for taking the property is called Condemnation.

Question 22

Enabling Legislation

Answer 22

(5) A law or statute enacted by any gov’t body which enables (makes legal) some practice not previously authorized. A condominium law enacted by a state legislature is an example of enabling legislation.

Question 23

Encroachment

Answer 23

(2) The illegal intrusion of an improvement, building or other attachment onto a neighboring land or into its airspace.

Question 24

Encumbrance

Answer 24

(2) Anything which affects the fee simple title or the use of land such as liens, easements, restrictions and encroachments.

Question 25

Entitlement

Answer 25

(14) The amount of loan guarantee that a veteran is eligible to receive for a VA loan.