"A" VOCAB

Question 1

Abandonment

Answer 1

The voluntary surrender of a right, claim, or interest in a piece of property without naming a successor as owner or tenant

Question 2

Abstract of Title

Answer 2

a certified summary of the history of a title to a particular parcel of Real Estate (RE) that includes the original grant and all subsequent transfers, encumbrances, and releases

Question 3

Abutting

Answer 3

Sharing a common boundary

Question 4

Acceleration Clause

Answer 4

a clause in a note, morgage, or deed of trust that permits the lender to declare the entire ammount of principal and accrued interest due and payable immediately in the event of default

Question 5

Accretion

Answer 5

the increae or addition of land resulting from the natural deposit of sand or soil by streams, lakes or rivers

Question 6

Accrued depreciation

Answer 6

“1) The ammount of depreciation ( Loss in Value) that has accumulated since initial construction
2) the difference between the current appraised value and the cost to replace the building new”

Question 7

Acknowledgment

Answer 7

a formal declaration before a public official, ussualy a notary, by a person who has signed a deed, contract, or other document that the execution was a voluntary act

Question 8

Acre

Answer 8

a measure of land equal to 43,560 square feet

Question 9

Actual Eviction

Answer 9

the result of legal action brought by a landlord against a defaulted tenant, whereby the tenant is physically removed from rented or leased property by court order

Question 10

Addendum

Answer 10

any provision added to a contract, or an addition to a contract that expands, modifies, or enhances the clarity of the agreement. To be legally enforceable, must be referenced within the contract

Question 11

Adjacent

Answer 11

Lying near to but not necessarily in actual contact with

Question 12

Adjustable Rate Mortgage

Answer 12

“A mortgage in which the interest changest periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Ex: a 7 year ARM is a loan where the rate remains fixed for the first 7 years, then fluctuates according to index.”

Question 13

Adjusted Basis

Answer 13

the original cost of a property, plus acquisition costs, plus the value of added improvements to the porperty, minus accrued depriciation

Question 14

Administrator

Answer 14

a person appointed by a court to settle the estate of a person who has died without leaving a will

Question 15

Ad Volarem

Answer 15

tax in proportion to the value of a property

Question 16

Adverse Possession

Answer 16

a method of acquiring title to another person’s property through court action after taking actual, open, hostile, and continuous possession for a statutory period of time

Question 17

Affadavid

Answer 17

a written statement made under oath and signed before a licensed public official, usually a notary

Question 18

Agency

Answer 18

the legal relationship between principal and agent that arises out of a contract wherein an agent is employed to do certain acts on behalf of the principal who has retained the agent to deal with a third party

Question 19

Agent

Answer 19

one who has been granted the authority to act on behalf of another

Question 20

Agreement of Sale

Answer 20

a written agreement between a seller and a purchaser whereby the purchaser agrees to buy a certain piece of property from the seller for a specified price

Question 21

Alienation

Answer 21

the transfer of ownership of a property to another, either voluntary or involuntary

Question 22

Alienation Clause

Answer 22

Clause in a mortgage or deed of trust that permits the lender to declare all unpaid principal and accrued interest due and payable if the borrower transfers title to the property

Question 23

Ammenties

Answer 23

features or benefits of a particular property that enhance the property’s desirability and value, such as a scenic view or a pool

Question 24

Amortization

Answer 24

the method of repaying a loan or debt by making periodic installment payments composed of both principal and interest. When all principal has been repaid, it is considered fully amortized

Question 25

Amortize

Answer 25

to repay a loan through regular payments that are comprised of principal and interest

Question 26

Annual Percentage Rate

Answer 26

the total or effective ammount of interest charged on a loan, expressed as a percentage, on a yearly basis. Created according to a gov't formula intended to reflect the true annual cost of borrowing

Question 27

Anti Deficiency laws

Answer 27

laws used in some states to limit the claim of a lender on default on payment of a purchase money mortgage on owner–occupied residential property to the value of the collateral

Question 28

Anti Trust Laws

Answer 28

"laws designed to protect free enterprise and the open marketplace by prohibiting certain business practices that restrict competition. These laws would prevent such practices as price–fixing or agreements by brokers to limit thier areas of trade"

Question 29

Apportionments

Answer 29

adjustment of income, expenses, or carrying charges related to RE, usually computed to the date of closing so that the seller pays all expenses to date, then the buyer pays all expenses beginning on the closing date

Question 30

Appraisal

Answer 30

an estimate or opinion of the value of an adequately described property, as of a specific date

Question 31

Appraised Value

Answer 31

an opinion of a propertys fair market value, based on an appraiser's knowledge, experience, and analysis of the property, based on comparable sales.

Question 32

Appraiser

Answer 32

and individual qualifited by education, training, and experience to estimate the value of real property.

Question 33

Appreciation

Answer 33

an increase in the market value of a property

Question 34

Appurtenance

Answer 34

something that transfers with the title to land even if not an actual part of the property, such as an easement

Question 35

Assessed Value

Answer 35

the value of a property used to calculate RE taxes

Question 36

Assessor

Answer 36

a public official who establishes the value of a property for taxation purposes

Question 37

Assessment

Answer 37

The process of assigning value on property for taxation purposes

Question 38

asset

Answer 38

items of value owned by an individual. Assets that can be quickly converted into cash are considered 'liquid assets' such as bank accounts. Other assets include RE, personal property, debts owed.

Question 39

Assignment

Answer 39

the transfer of rights or interest from one person to another

Question 40

Assumption of Mortgage

Answer 40

the act of acquiring the title to a property that has an existing mortgage and greeing to be liable for the payment of any debt still existing. However, the lender must accept the transfer of liability for the original borrower to be relieved of the debt

Question 41

Attachment

Answer 41

the process whereby a court takes custody of a debtor's property until the creditor's debt is satisfied

Question 42

attest

Answer 42

to bear witness by providing a signature

Question 43

Avulsion

Answer 43

the removal of land from one owner to another when a stream or other body of water suddenly changes its channel