Vocabulary

Question 1

A minus loan

Answer 1

A type of loan for borrows who may have credit card blemishes

Question 2

Abstract

Answer 2

The chain of title to a piece of land

Question 3

Abstract of title

Answer 3

A brief chronological summary of the recorded documents affecting title to a particular parcel of real property

Question 4

Abutting property

Answer 4

Parcels of land directly contiguous sharing at least one common boundary

Question 5

Accession

Answer 5

The acquisition of title to land buys addition to real estate already owned, through human actions or natural processes

Question 6

Accord and Satisfaction

Answer 6

Legal doctrine that allows a court to enforce an oral agreement that should have been in writing when the promisee has taken irrevocable steps to perform his or her side of the bargain, and failure to enforce the contract would result in an unjust benefit to one party. Also called partial performance

Question 7

Accountability

Answer 7

Duty recognizing that money, or anything of value, received in an agency relationship belongs to the principal, not the agent. Agent has a duty to account strictly to the principal for any amount received

Question 8

Accretion

Answer 8

A gradual addition to dryland by the forces of nature, as when the tide deposits waterborne Sediment on Shoreline property

Question 9

Accrued items

Answer 9

Expensive items on a settlement statement for which the cost has been incurred, but the expense has not yet been paid

Question 10

Acre

Answer 10

A measure of land area that is equal to 43,560 ft.². One square mile contains 640 acres

Question 11

Actual cash value

Answer 11

The cost to replace a property item at the time of loss, less an allowance for depreciations often used to determine the amount of reimbursement for a loss (replacement cost minus depreciation.

Question 12

Actual notice

Answer 12

Actual knowledge of a fact, rather than knowledge imputed or inferred by law

Question 13

Ad valorem

Answer 13

A Latin phrase meaning “according to value “used to refer to taxes assessed on the value of property

Question 14

Adequate consideration

Answer 14

Consideration that is comparable in value to the consideration the other party to the contract is giving

Question 15

Adjustable rate mortgage

Answer 15

A mortgage that promotes the lender to periodically adjust the interest rate reflects fluctuations in the cost of money

Question 16

Adjusted sales price

Answer 16

The amount of money received from the sale from property minus the selling expenses such as broker fees, attorney fees, etc.

Question 17

Administrator

Answer 17

A person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will.

Question 18

Adverse possession

Answer 18

Acquiring title to someone else’s real property by possession of it. The possession must be open and notorious, hostile an adverse, exclusive, and continuous, for statutory period of time

Question 19

Affidavit of title

Answer 19

A statement, sworn in front of a notary public or other authorized official, by the seller or grantor of property that identifies the grantor, identifies the grantors marital status, and certifies that the grantor has no new judgments, liens, divorces, and recorded deeds, or other potential title defects since the title examination was completed. It also certifies that the grantor is indeed in possession of the property, also called a vendors affidavit

Question 20

Against encumbrances

Answer 20

A guarantee in a deed that the property will not have any encumbrances except for those listed on the deed

Question 21

Alienation Clause

Answer 21

A clause in a contract that gives the lender certain stated rights when there is a transfer of ownership in the property. Also called Due on Sale Clause

Question 22

All risk policy

Answer 22

An insurance policy that covers all direct risk f physical loss unless a peril is specifically excluded. Also called an Open Peril Policy

Question 23

Allocation

Answer 23

Two or more competing brokerages that inspire to divide their customers or markets in any way are guilty of violating antitrust laws against allocation

Question 24

Allodial System

Answer 24

The system on lad ownership where anyone can own land

Question 25

Alluvion

Answer 25

The solid material deposited along a shore by accretion. Also called alluvium

Question 26

Alt-A loan

Answer 26

A loan that holds the borrower with good credit to different documentation standards in the traditional loan. also called alternative documentation loan

Question 27

American land title Association

Answer 27

A national Association of title companies, abstractors, and attorneys. Members agree to promote uniformity, quality, and professional standards in title insurance policies. Policies issued by ALTA members follow specific guidelines

Question 28

Amortization

Answer 28

The reduction of the balance of the loan by paying back some of the principal owed on a regular basis

Question 29

Anticipation

Answer 29

An economic theory that says value is created by expectation of future benefits

Question 30

Appropriation

Answer 30

Taking private property for public use through the government’s power of eminent domain. Also called condemnation

A sum of money that has been allocated for a particular purpose. A formal request for tax funds

Question 31

Appropriative rights

Answer 31

Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an appropriation permit

Question 32

Appurtenance

Answer 32

They write that goes along with ownership of real property usually transferred with the property but may be sold separately. This is a legal term referring to both physical and nonphysical appurtenances