Vocabulary

Question 1

ALTA Owner’s Policy

ALTA-R policy

Answer 1

Residential owner’s extended coverage policy that provides buyers with same protection as the lenders.

Question 2

ALTA Title Policy

American Land Title Association-approved title policy

Answer 2

A title insurance that expands the risks normally insured against under the standard type of policy to include unrecorded: mechanics’ liens, physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.

Question 3

Absolute Fee-Simple Title

Best title one can have

Answer 3

Title that is absolute and unqualified.

Question 4

Abstract of Judgement

Answer 4

Condensation of the essential provisions of a court judgement

Question 5

Abstract of Title

Answer 5

Summary of digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record that may impair the title.

Question 6

Abstraction

Method of valuing land.

Answer 6

Indicated value of the improvement is deducted from the sales price.

Question 7

Acceleration Clause

Answer 7

A clause in a trust deed or mortgage giving the lender the right to call all sums owed to the lender to be immediately due and payable upon the happening of a certain event.

Question 8

Acceptance

Answer 8

When the seller or agent’s principal agrees to the terms of the agreement of sale and approves the negotiation on the part of the agent and acknowledges receipt of the deposit in subscribing to the agreement of sale.

Question 9

Access Right

right of way

Answer 9

The right of an owner to have ingress and egress to and from his or her property.

Question 10

Accretion

adding of land

Answer 10

Addition to land from natural causes. (example: sand collecting on land from rivers or oceans.)

Question 11

Accrued Depreciation

Answer 11

Difference between the cost of replacement new as of the date of the appraisal and the present appraised value.

Question 12

Accrued Items of Expense

Answer 12

Incurred expenses that are not yet payable. The seller’s accrued expenses are credited to the purchaser in a closing statement.

Question 13

Acknowledgment

Answer 13

Formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is his or her act and deed.

Question 14

Acquisition

Answer 14

The act or process by which a person procures property.

Question 15

Acre

Answer 15

Measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a trace about 208.71 feet square.

Question 16

Ad Valorem

Latin

Answer 16

According to value. Usually used in connection with real estate taxation.

Question 17

Administrator/Administratrix

Answer 17

Person appointed by the probate court to administer the estate of a person deceased.

Question 18

Adjustable Rate Loan

Answer 18

A mortgage where the interest rate may go up or down, there by the monthly payment may decrease or increase over the life of the loan.

Question 19

Advance Commitment

Answer 19

The institutional investor’s prior agreement to provide long-term financing upon completion of construction.

Question 20

Advance Fee

Answer 20

Fee paid in advance of any services rendered.

Question 21

Adverse Possession

Answer 21

The open and notorious possession and occupancy under an evident claim or right, in denial or opposition to the title of another claimant.

Question 22

Affiant

Answer 22

A person who makes an affidavit.

Question 23

Affidavit

Answer 23

A statement or declaration reduced to writing, sworn to or affirms before some officer who has authority to administer an oath or affirmation.

Question 24

Agency

Answer 24

The relationship between principal and agent that arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.