Key Concepts

Question 1

Encroachment

Answer 1

Physical Intrusion of structure or improvement in the land of others,

Question 2

Cost Approach

Answer 2

Best way to determine value if there’s no prior history ( New buildings only)

Question 3

The Assessed Value

Answer 3

Assess value is for tax purposes

Question 4

FHA Insurance

Answer 4

Only applies to residential properties

Question 5

Inverse Condemnation

Answer 5

Taking action against the goverment for taking private property but failing to pay compensation.

Question 6

Goverment Power

Answer 6

PETE; Police power, Eminent domain, Taxation, Escheat

Question 7

The Bundle of Rights

Answer 7

The total collection of rights which may be claimed by private ownership;

Question 8

nonconforming use.

Answer 8

Basically it means that businesses and buildings that were in compliance before the new code was established may continue to operate or exist under their present owners. However, if the Stone’s want to sell their business, it must be to an enterprise that meets the new requirement.

Question 9

Warehousing

Answer 9

the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market.

Question 10

Economic Obsolescence.

Answer 10

when factors unrelated to the property itself, and outside of the owner’s control, diminish its value.

Question 11

Truth in Lending (Regulation Z)

Answer 11

is intended to do away with deceptive financing tactics, especially those involving hidden costs-

Question 12

Freehold estates

Answer 12

The distinctive characteristic of freehold estates is that they endure for an interminable duration.

Question 13

Acre

Answer 13

There are 43,560 square feet in an acre.

Question 14

Restrictive covenants

Answer 14

are created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards.

Question 15

Open Listing

Answer 15

a property whose owner is using multiple real estate agents in a nonexclusive arrangement. In another meaning, open listing refers to a property being sold directly by the owner, with no agent involved at all.

Question 16

Reconveyance deed

Answer 16

removes a lien and is evidence a trust deed has been paid in full when it is signed by the trustee

Question 17

Trustee

Answer 17

an individual person or member of a board given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.

Question 18

Reverse mortgage

Answer 18

option for individuals 62 or older who want to transform equity in their property into cash through a mortgage.

Question 19

Appurtenances

Answer 19

All rights and privileges belonging to the land (air, soil, water, etc.) are appurtenances.

Question 20

Fixture

Answer 20

are articles of personal property that are attached (screwed in, etc.) and become real property.

Question 21

Note

Answer 21

is a promise of real property, kept by the lender to secure the loan.

Question 22

Severance

Answer 22

converting real property to personal property.

Question 23

Which lien is required by law to be paid first?

Answer 23

Government entities make sure they are the first ones to get a crack at the money when repayment becomes possible.

Question 24

Contingencies

Answer 24

are a part of the contract of sale that allows a buyer or seller to get out of the contract without penalty in the case of certain specified events.

Question 25

Testimonium

Answer 25

part of a deed contains warranties, if applicable.

Question 26

Habendum

Answer 26

Sometimes called the “to have and to hold clause,” the habendum describes the limits of the estate being granted.

Question 27

Quitclaim deed

Answer 27

the grantor gives up his property rights without implying he has or ever had any rights.

Question 28

Title

Answer 28

title indicates ownership, it is not a physical thing. The deed is the physical proof of a title.

Question 29

Real Property

Answer 29

Things attached to the property and the property itself

Question 30

Personal Property

Answer 30

Things that aren't attached to the property and are movable. Example: Sofa, Dining table

Question 31

Trade Fixture

Answer 31

Fixture attached to the buisnees. For example Hair Stylist Chair

Question 32

Riparian Rights

Answer 32

rights an owner has when living bsiede a river or lake

Question 33

Accretion

Answer 33

Increase of land naturally

Question 34

Avulsion

Answer 34

The sudden lost of property do to water damage

Question 35

Reliction

Answer 35

Gradually recession of water leaving land permanently uncovered

Question 36

Severalty

Answer 36

one person owns the property

Question 37

Fee Simple Defeasible

Answer 37

the ownership is dependent on specific conditions. If the conditions of ownership are violated, the property may be returned to the grantor or to a specified third party.

Question 38

Marketable Title

Answer 38

free and clear of any defects or clouds that a reasonable buyer would find objectionable

Question 39

Fee Simple Absolute

Answer 39

The greatest possible estate in land, wherein the owner has the right to use it, exclusively possess it, commit waste upon it, dispose of it by deed or will, and take its fruits.

Question 40

Allodial System

Answer 40

Land is held under the allodial system in the United States.

Question 41

Proration

Answer 41

describes the division of real estate expenses according to the proportion of ownership or rental.

Question 42

Foreclosure

Answer 42

is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Question 43

Acceleration Clause

Answer 43

the part of your mortgage agreement that defines the conditions under which the lender can demand repayment of the loan in full

Question 44

Deed in lieu of foreclosure

Answer 44

is a document that transfers the title of a property from the property owner to their lender in exchange for being relieved of the mortgage debt.

Question 45

Deficiency Judgment

Answer 45

is a money judgment for the difference between the foreclosure sale price and the total mortgage debt.

Question 46

Prepayment Penalty Clause

Answer 46

fee that some lenders charge when you pay all or part of your mortgage loan term off early.

Question 47

Mill Rate

Answer 47

is the amount of tax payable per dollar of the assessed value of a property.

Question 48

Caca

Answer 48

PIpi con miados

Question 49

Abutting

Answer 49

Abutting means an area of land or a building has a common boundary with another.

Question 50

Acceleration clause

Answer 50

allows a lender to require a borrower to repay all of an outstanding loan if payments are not being made

Question 51

Ad valorem

Answer 51

“according to value.”

Question 52

Alienation

Answer 52

Alienation is the act of transferring title, ownership, an estate, or an interest in real estate from one party to another.

Question 53

Alienation clause

Answer 53

states that the borrower must pay the mortgage in full before the borrower can transfer the property.

Question 54

Amortization

Answer 54

Amortization is when payments divide into equal amounts for the duration of the loan.

Question 55

Balloon loan

Answer 55

A balloon loan is a mortgage which does not fully amortize over the term.

Question 56

Building code

Answer 56

Building codes are the rules and standards of properties for the protection of public safety and welfare.

Question 57

Buyer’s home sale contingency

Answer 57

This contingency allows the buyer to cancel the contract if they are unable to sell their current home in a specified amount of time.

Question 58

Caveat emptor

Answer 58

“Let the buyer or buyers beware”

Question 59

Cloud on tittle

Answer 59

something is bad with the title

Question 60

Abstract tittle

Answer 60

summary of tittle

Question 61

Chain of tittle

Answer 61

History of ownership