Real Estate Dictionary Flashcards

Question

Who is an Administrator?

Answer 1

When no one is named an executor of a will, the probate court will appoint an administrator to handle the estate.

Answer 2

The open, notorious, hostile, adverse, exclusive, and continuous possession of another person's property for a statutory number of years, after which time the adverse possessor may seek to obtain title to the property.

Answer 3

A type of loan structure that permits the lender to periodically change or vary the interest rate charged, based on a standard index.

Answer 4

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.

Answer 5

The open, notorious, hostile, adverse, exclusive, and continuous possession of another person's property for a statutory number of years, after which time the adverse possessor may seek to obtain title to the property.

Answer 6

-An announcement in type of media -For sale or rent or broker services -Follow guidelines for federal, state, and local fair housing laws

Answer 7

A sworn statement in front of a notary from the seller (or grantor) with their name and marital status, which shows they own the property, and there are no new divorces, liens, judgments, unrecorded deeds, or title defects, since the title examination.

Answer 8

Party A refers settlement services to Party B in which they have an ownership interest after disclosing the ABA. Examples: -A real estate brokerage owns a portion of a title company and refers clients to that title company after providing a required ABA disclosure. -A mortgage lender and a title insurance company create an affiliated title agency that pays dividends to both companies in proportion to their ownership stake (70-30), not the amount of business referred (1,000 clients). Disclosure: The referring party must provide a written disclosure to the consumer at or before the time of referral, informing them of the ABA and their right to shop for services elsewhere. Non-Mandatory Use: Consumers cannot be required to use the affiliated business; they are free to choose other providers. Legality: ABAs are legal under RESPA if they meet specific requirements and are considered a "safe harbor" exception to the anti-kickback provisions.

Answer 9

A relationship of trust created when one person (the principal) gives another person (the agent) the right to represent the principal in dealings with third parties.

Answer 10

This type of agency is designed to protect the agent's interest, ensuring the agent's investment is not jeopardized by the principal's actions. This interest is typically a right to benefit from the agency's actions. 1) The principal of the firm has to do what's in the best interest of the agents 2) The principal of the firm cannot revoke the agent's interest 3) The agent retains an interest even if the principal dies In a typical agency relationship, the principal can revoke the agent's authority at any time and the agency terminates upon the principal's death. However, an "agency coupled with an interest" is an exception. Since the agent has an interest, the principal cannot unilaterally revoke the agency and it survives the principal's death. Commission-Based Agent: A real estate agent who is entitled to a commission on the sale of a property has an agency coupled with an interest. Security Interest: An agent who is granted the power to sell property as security for a loan has an agency coupled with an interest.

Answer 11

A licensed broker who represents another (the principal) in a real estate transaction; a person authorized to represent the principal in dealings with third parties (clients or customers).

Answer 12

The total rent for the full term of the lease.

Answer 13

The right to undisturbed use and control of the airspace over a parcel of land (within reasonable limits for air travel); may be transferred separately from the land.

Answer 14

The transfer of ownership or an interest in property from one person to another, by any means.

Answer 15

Due on Sale Clause: A clause allowing the lender to demand the full and immediate payment of the mortgage when the owner pledges to transfer ownership of the property.

Answer 16

Anyone: The system of land ownership that allows anyone to own land.

Answer 17

Solid material deposited along a shore by accretion. ## Footnote Also called Alluvium.

Answer 18

A tangible or intangible feature that enhances or adds value to real estate.

Answer 19

A person who values a property based on its ability to fulfill their specific business needs or use, unlike investors who value a property based primarily on its investment return.

Answer 20

A national association of title companies, abstractors, and attorneys. Members agree to promote uniformity, quality, and professional standards in title insurance policies.

Answer 21

A wide-ranging federal civil rights law, signed in 1990, that prohibits, under certain circumstances, discrimination based on disability.

Answer 22

Occurs when a loan balance decreases because of periodic installments paid on the principal and interest.

Answer 23

A financial debt that is paid off over a period of time by a series of periodic payments. ## Footnote A loan can be fully amortized or partially amortized requiring a balloon payment to satisfy the debt at the end of the term.

Answer 24

Amount of electricity going through electric wires, measured in amperes (amps).

Answer 25

Major department or chain store strategically located at shopping centers to give maximum exposure to smaller satellite stores. A center may have several anchor tenants. ## Footnote Also called Magnet Store.

Answer 26

Attaching personal property to land so that it becomes a fixture and the law views it as part of the real property.

Answer 27

The process of physically attaching personal property to land, causing it to be a fixture.

Answer 28

Ex: House Keys Conceptually or effectively "attached" to the house/land, but not physically attached. Personal property which is closely associated with real property, so the law treats it as a fixture, even though it's not physically attached.

Answer 29

A person who owns an item as personal property and brings it onto real property, making it a part of the real property. Ex: You buy wood from Home Depot & build a fence Ex: You buy treet & plant them Ex: A mobile home park

Answer 30

Loan amount + interest rate = true cost. Relationship between the amount financed and the total cost of borrowing, represented as a percentage. ## Footnote Also called Effective Rate of Interest.

Answer 31

-Economic principle -Value is created by the expectation of future benefits -Ex: Appreciation, Equity, profit on resale; pleasure; tax shelter; production; income, etc. -Anticipation is the foundation of the income approach.

Answer 32

When one party to a contract informs the other before the set time of performance that he or she doesn’t intend to perform as agreed. The other party may immediately file a lawsuit for breach of contract without making a tender offer. ## Footnote Also called Anticipatory Breach.

Answer 33

An area of federal law concerned with maintaining competition in private markets by prohibiting unlawful restraint on trade.

Answer 34

A professional estimate or opinion of the value of a piece of property (parcel of land), as of a certain date, that's supported by objective data.

Answer 35

A nonprofit organization recognized as the authority for professional appraisal standards.

Answer 36

An entity that, for compensation, acts as a third party intermediary by contracting with independent real estate appraisers to perform appraisals for lenders.

Answer 37

A person who estimates the value of property, especially an expert qualified to do so by education and experience.

Answer 38

The increase in value of an asset over time.

Answer 39

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.

Answer 40

-Usually transferred with the property but may be sold separately. -A right that typically goes along with ownership of real property -Ex: Air Rights, Water Rights, Mineral Rights, Oil & Gas Rights

Answer 41

An alternative to a court proceeding where the parties agree to submit facts and evidence to an impartial third party for a decision.

Answer 42

Entitles landowners to use land in a way that is typically not allowed by the dimensional or physical requirements of the zoning law.

Answer 43

A transaction that occurred under typical conditions in the marketplace, with each party acting in their own best interest. 1) No previous relationship 2) Fair market rate

Answer 44

-After the fact, not on time, late in making payments or completing work. -Using it but paying for it later -Ex: property taxes, mortgage interest

Answer 45

Ex: I have the right to build an ADU on my property, if zoning codes allow. A property owner’s right to use or develop the property, if the proposed use accords with the zoning by-laws.

Answer 46

-Toxic -Fibrous material, once common in buildings, for fire-proofing

Answer 47

An auction method where the bidding starts low and the auctioneer asks for more, allowing buyers to bid more until the item is sold to the highest bidder.

Answer 48

A statement in a contract that indicates the property is being sold without warranty in its present condition at the time of the contract.

Answer 49

The act of combining two or more parcels of land into one larger parcel.

Answer 50

-Assessed Value for property taxes -The value placed on a property by a taxing authority for the purpose of taxation.

Answer 51

An item of economic value owned by an individual, especially those that can be converted to cash.

Answer 52

A grouping of investments that have similar characteristics and are subject to the same laws and regulations.

Answer 53

Transfer of rights or interests in a contract to another party

Answer 54

A lender/mortgagee (bank) transfers its rights in the contract to an assignee (like a debt collector) who receives the right to enforce the terms against the borrower/mortgagor.

Answer 55

An animal that provides emotional or physical support to an individual with a disability, lessening the effects of the disability. Also called Emotional Support Animal.

Answer 56

-Homeowner Association Fees, Condo Fees -Monthly dues from property owners to pay for common expenses -Ex: utilities, amenities, management, maintenance, insurance, reserves, repairs.

Answer 57

Borrower transfers outstanding loan & its terms to a subsequent buyer; requires the approval of the lender.

Answer 58

One party takes over the payments (primary liability) for the loan of another; usually requires lender approval. A release is needed; without one, the original party remains secondarily liable for the loan. Ex: A parent co-signed the loan initially and then took over the payments for their adult child, who was laid off.

Answer 59

A lien acquired on property by a creditor in order to prevent property transfer pending the outcome of litigation.

Answer 60

The act of witnessing a person’s signing of an instrument by a notary public.

Answer 61

A person specifically designated in an instrument (e.g., power of attorney) to act on behalf of another, but not necessarily authorized to practice law.

Answer 62

After analyzing an abstract, an attorney provides their opion about the quality of the title.

Answer 63

An act in which tenants acknowledge their obligations to a new landlord.

Answer 64

A person licensed or authorized to conduct a public auction of item(s) belonging to someone else. In some states, auctioneers selling real property must be licensed as real estate brokers, whereas in others they must be licensed auctioneers.

Answer 65

-A national network for financial institutions and government agencies to exchange paperless payments -A settlement system used for financial transactions

Answer 66

A computerized evaluation of a borrower’s creditworthiness, based on statistical models.

Answer 67

A natural process in which land is removed from one person’s property and deposited onto another’s. Avulsion happens very suddenly, as in a flash flood.

Answer 68

An offer made and accepted, after another offer has been accepted, that is contingent on the failure of the first contract.

Answer 69

Title with defects making it unmarketable.

Answer 70

A deceptive sales technique that involves advertising to a consumer a particular product, service, or rate, then persuading the consumer to accept something else. ## Footnote Most states have consumer protection laws that make this tactic illegal.

Answer 71

CELL: Capital, Entrepreneurship, Labor, and Land, which results in the best ROI from land.

Answer 72

A financial statement (such as a property management report) that lists assets, liabilities, and ownership equity at a specific moment in time.

Answer 73

In construction: studs (long vertical pieces of wood) from the foundation to the roofline. (The string in a baloon is straight up)

Answer 74

A lump-sum payment made at the end of a loan term to pay off the remaining balance of principal and interest that was not covered by payments during the loan term.

Answer 75

A court process that cancels some debt and provides some relief for creditors. ## Footnote Chapter 7, straight bankruptcy, is a liquidation proceeding Chapter 13, reorganization proceeding, is filed by individuals who want to pay off their debts over a period of three to five years.

Answer 76

A deed with no warranties: A type of deed which implies the grantor owns the property and has the right to convey it, but there are no warranties.

Answer 77

The minimum amount of rent indicated in a lease.

Answer 78

The operating expenses for the first year of a lease, used for comparison in subsequent years, and passed on to the tenant.

Answer 79

The principle east-west line (i.e., a parallel) upon which all rectangular surveys in a defined area are based.

Answer 80

The segment of a local economy that is made up of businesses and industries that bring income into the local economy by selling goods or services to consumers outside the community.

Answer 81

0.0001 One hundredth of one percent. Used to express differences in interest rates.

Answer 82

A long piece of timber or metal that spans an opening or part of a building and provides support to a roof or floor above it. Beams are installed horizontally.

Answer 83

A bronze disk permanently placed and precisely identified by government survey teams.

Answer 84

One who receives a benefit; in real estate, the lender in a trust deed.

Answer 85

A contract in which both parties make a binding promise to the other.

Answer 86

A document used to transfer ownership of personal property from one person to another.

Answer 87

A non-binding document used to communicate the terms of a buyer’s offer to purchase property; serves as a blueprint for creating a purchase agreement.

Answer 88

A fixed-rate mortgage set up like a standard 30-year conventional loan, but payments are made every two weeks instead of every month.

Answer 89

A mortgage loan that covers more than one parcel of real estate, usually used to finance entire subdivision developments rather than an individual unit or lot.

Answer 90

A real estate advertisement used by a licensee regarding the sale or lease of real estate or of licensed activities that does not include the broker's name or business name. ## Footnote Prohibited in most states.

Answer 91

The illegal practice of inducing owners to sell their homes (at a deflated price) by suggesting the racial composition of the neighborhood is changing. Also called: Panic Selling or Panic Peddling.

Answer 92

The illegal practice of inducing owners to sell their homes (at a deflated price) by suggesting the racial composition of the neighborhood is changing. Also called: Blockbusting or Panic Peddling.

Answer 93

The illegal practice of inducing owners to sell their homes (at a deflated price) by suggesting the racial composition of the neighborhood is changing. Also called: Blockbusting or Panic Selling.

Answer 94

State laws regulating the sale of securities; intended to protect consumers from fraud.

Answer 95

A detailed diagram, created by an architect, for design, feasibility, and construction.

Answer 96

Standardized language in contracts for efficiency and completeness.

Answer 97

The value of assets, such as real estate or equipment, as indicated in the company’s financial records (which may differ from market value).

Answer 98

Extra, non-like-kind property that can be a part of a like-kind exchange to make up for pricing disparity between like-kind properties.

Answer 99

Refers to boundaries; "metes and bounds" method of land description.

Answer 100

A concerted refusal by two or more people to deal with a particular person or company.

Answer 101

Violation of an obligation, duty, or law.

Answer 102

Negligence or malice: Someone trusted to care for another's property failed to do their duties

Answer 103

Estimating physical depreciation of each item and then adding the estimates together and deducting the sum from the projected cost of reproduction or replacement.

Answer 104

A mortgage loan between the end of one mortgage and the start of another. The bridge is repaid when the next mortgage is taken out.

Answer 105

-To measure the capacity of furnaces and AC units. -The amount of heat needed to raise the temperature of 1 pound of water by 1 degree Fahrenheit

Answer 106

A real estate licensee with several years of experience who has received advanced training and passed a broker exam.

Answer 107

Estimated value of a property, determined by a real estate licensee, or other qualified individual, done at the request of a lender, for non-federal related property transactions.

Answer 108

Extender Clause, Carryover Provision. An agency agreement provision that entitles the broker to a commission if the property is sold during a certain time period after the agency agreement expires.

Answer 109

Extender Clause or Broker Protection Clause. An agency agreement provision that entitles the broker to a commission if the property is sold during a certain time period after the agency agreement expires.

Answer 110

A provision, in an agency agreement, that entitles the broker to a commission if the property is sold during a certain time period after the agency agreement expires. Also called Broker Protection Clause or Carryover Protection.

Answer 111

A firm with real estate licensees who may be retained by consumers to negotiate the purchase, sale, and lease of real property

Answer 112

A person or organization that trades securities (stocks and bonds) for themselves or customers.

Answer 113

Former industrial or commercial site where future use is affected by real or perceived environmental damage.

Answer 114

A mortgage agreement where payments include principal and interest on the loan, plus 1/12 of the year's ad valorem property taxes and hazard insurance premiums.

Answer 115

Planners separate two districts with incompatible uses. A buffer zone has uses that are compatible with each district. For example: A buffer zone for a residential zone and commercial zone has residential & commercial uses.

Answer 116

-Regulations -Written by city or county officials -With the help of construction professionals -Design and construction standards -Certain methods and materials

Answer 117

Agency responsible for issuing building permits, enforcing building codes, and making sure construction and renovation are performed by licensed professionals

Answer 118

The ratio of usable square footage to rentable square footage.

Answer 119

Usable square footage (unit square footage) is the space in the tenant's apartment. Rentable square footage includes usable space footage plus a pro rata share of common areas (including amenities, lobbies, hallways, elevators, stairways, restrooms)

Answer 120

Local government officials inspect properties for compliance with state and local building codes.

Answer 121

A document from a local government that allows construction or remodeling.

Answer 122

A clause in a purchase agreement that allows the seller to keep the property on the market while the buyer's purchase is contingent on the sale of the buyer’s property.

Answer 123

Ann wants to buy Bill’s house but needs to sell her house before she can buy his, so he adds a Bump Clause that allows him to keep his house on the market and sell it to Claire if Ann never sells her house.

Answer 124

All real property rights conferred with ownership: right of possession, right of quiet enjoyment, right of disposition, right of exclusion, right of control.

Answer 125

Bundle of Sticks.

Answer 126

An employment contract between a buyer and a broker, granting the broker the right to represent the buyer in the purchase of property.

Answer 127

An employment contract between a buyer and a broker, which grants the broker the right to represent the buyer in the purchase of property.

Answer 128

Represents the buyer.

Answer 129

A method of selling similar properties where a successful high bidder wins the right to choose one or more at that price. For example, a winning bidder with buyer's choice of 10 parcels of farm land may choose one or more at that bid price. ($450,000 each)

Answer 130

There are lots of homes for sale but only few buyers, giving buyers the advantage.

Answer 131

The percentage of the bid that the winning buyer at an auction pays to the auctioneer in addition to the bid amount.

Answer 132

Homeowners association rules and regulations that govern activities, rules for elections and voting, and frequency of meetings.

Answer 133

Ends the contract without undoing past actions under it; don’t need to go to court.

Answer 134

Federal law that limits unsolicited commercial email and text messages, requiring senders to provide an opt-out option.

Answer 135

Maximum interest rate, or maximum increase in the interest rate, a lender can charge.

Answer 136

Improves property with anticipation of long-term benefits. AKA Reserves for Replacement.

Answer 137

Improves property with anticipation of long-term benefits. AKA Capital Expense.

Answer 138

Profit made from an investment.

Answer 139

Convert future income to present value.

Answer 140

Rate of return/reasonable ROI given the risk.

Answer 141

Colorless, odorless gas, natural byproduct of fuel combustion, dangerous when inhaled.

Answer 142

Money transferred in & out of an investment, calculated as net operating income minus debt service.

Answer 143

Money a buyer must bring to settlement, after all credits and debits.

Answer 144

ROI expressed as a % by dividing an investment property's cash flow by the amount spent to buy it.

Answer 145

Latin, 'Buyer beware,' purchaser is expected to examine property carefully instead of relying on seller disclosures.

Answer 146

Covenants, conditions, and restrictions; a developer’s private restrictions for a subdivision or condo.

Answer 147

An order to stop an offending activity.

Answer 148

Range allowable in an ARM, allowable increases or decreases. AKA Lifetime Cap.

Answer 149

Range allowable in an ARM, allowable increases or decreases. AKA Ceiling.

Answer 150

Height from the steel girders to the floor, in feet. AKA Feet Under Steel.

Answer 151

Height from the steel girders to the floor, in feet. AKA Ceiling Height.

Answer 152

The Department of Veterans Affairs sends a document to establish that a veteran is eligible for a VA Loan and the maximum amount of the loan.

Answer 153

Builders get a Certificate of Occupancy certifying the livability, including safety and health standards, after all inspections

Answer 154

The county says a manufactured home was permanently affixed to real property, so the title includes the land and home.

Answer 155

The winning bidder of a foreclosure sale gets a deed called a Certificate of Purchase after the sale.

Answer 156

After a title search, a title company, abstractor, or attorney provides a document about the status of the title.

Answer 157

Certificate of Title A document that provides a written opinion on the status of the title to a piece of property after a title search.

Answer 158

The chronological succession of changes in ownership of a piece of property from one owner to the next, as disclosed in the public record.

Answer 159

PEGS: Physical, Economic, Governmental, and Social factors are always changing in real estate so property value is subject to constant change, too.

Answer 160

The way in which an auctioneer verbally communicates to engage and inform prospective bidders, indicating the current bid and the desired bid.

Answer 161

Design professionals work with community stakeholders on a focused project in a short timeframe.

Answer 162

A piece of personal property.

Answer 163

A loan that uses only personal property as security. Ex: If you own a lamborghini, it could secure a $500,000 mortgage.

Answer 164

-Deplete the ozone -Used to be common in refrigeration -Buildings with CFC equipment need to be retrofitted or replaced to comply with regulations, adding costs to property owners and potentially affecting property values.

Answer 165

The effort on the part of the city to coordinate, direct, and control the type of development taking place to ensure maximum benefits to the populace.

Answer 166

Fundamental rights guaranteed to all persons by the law, primarily in reference to constitutional and statutory protections against discrimination based on protected class status.

Answer 167

A federal law prohibiting discrimination based on race and color against all native-born Americans in all property transactions (personal, commercial, residential) without exception.

Answer 168

Clear-span structures include: -Warehouses and factories -Sports arenas and stadiums -Event spaces and exhibition halls -Barns and livestock shelters Clear-span structures include: -Wide open interior spaces -No columns or load-bearing walls

Answer 169

A person being represented by a licensee, also called Principal.

Answer 170

The transfer of real property ownership from seller to buyer according to terms and conditions in a purchase agreement or escrow instructions; the final stage in a real estate transaction. ## Footnote Also referred to as Settlement.

Answer 171

The cost to close the deal. Paying for all the services you used. Paying the real estate agents, escrow company, title insurance company, loan origination, transfer taxes.

Answer 172

Settlement Statement: A standardized final document with each party’s debits and credits; required by RESPA.

Answer 173

A claim, encumbrance, or defect, which reduces its marketability. You can **file** a Quiet Title Action or **record** a Quitclaim Deed.

Answer 174

A method that allows developers to provide a varied selection of lot sizes and housing choices within a single area.

Answer 175

A set of principles and standards based on core values by which a group of professionals are expected to conduct themselves.

Answer 176

A clause where the insured agrees to maintain insurance equal to at least 80% of the replacement cost. ## Footnote If the property is underinsured, the insurance company will share the loss on a pro-rata basis.

Answer 177

The practice of making unsolicited phone calls to potential customers without prior relationship or inquiry.

Answer 178

Property pledged as security for a debt.

Answer 179

Secret agreement or cooperation among people for deceitful or fraudulent purposes.

Answer 180

The relationship between the unpaid principal balances of all mortgage loans and the lower of the appraised value or sales price of the property.

Answer 181

They are the largest financial intermediaries involved in financing real estate, primarily through short-term loans.

Answer 182

Property zoned and used for business purposes, such as warehouses, restaurants, and office buildings.

Answer 183

Illegally mixing personal or business funds with money held in trust for a third party.

Answer 184

Compensation paid to a broker, usually a percentage of the sales price, and is negotiable.

Answer 185

CAMs work for HOAs and Condo Associations They manage the communal property and services, such as pools and recreational facilities. They are hired by a board of directors. CAMs may: -Collect monthly fees from homeowners. -Prepare financial statements and budgets. -Negotiate with contractors for repairs and maintenance. -Resolve complaints and disputes between residents. -Enforce the association's rules and regulations. -Ensure the common areas are well-maintained and safe. -Manage landscaping and groundskeeping.

Answer 186

-Ex: Repairs, landscaping, snow removal -Typically prorated among all tenants.

Answer 187

Land and improvements in a condominium or cooperative that all residents use and own as tenants in common.

Answer 188

Individuals have exclusive rights to their units but share ownership of common areas, in HOAs, Condos, and Coops.

Answer 189

Law developed over many years through court decisions and precedents.

Answer 190

Property acquired during marriage that is jointly owned by the married couple in some states.

Answer 191

Recently sold properties with similar characteristics to the property being valued, also known as Comps.

Answer 192

To estimate the cost of replacing a building, you can use the cost of recently built comparables.

Answer 193

Valuable consideration given in exchange for the performance of an activity or service.

Answer 194

An award of damages intended to compensate a plaintiff for harm caused by the defendant’s act or failure to act, including personal injuries, property damage, and financial loss. ## Footnote Compensatory damages aim to restore the injured party to their original position prior to the harm.

Answer 195

The ability to take action successfully or efficiently. Competency is essential in many professional contexts, including legal and medical fields.

Answer 196

Those who are legally capable of entering into contracts. Competent parties typically must be of legal age and sound mind.

Answer 197

The act or process of trying to obtain or win something that others are also trying to obtain or win. ## Footnote Competition can occur in various fields, including business, sports, and academics.

Answer 198

A method of determining the probable selling price of a property by comparing it to similar properties that have sold, are presently for sale, or did not sell in a given area. Also called Comparative Market Analysis. ## Footnote CMA is commonly used in real estate to help set listing prices.

Answer 199

A formal allegation, generally in writing, accusing someone of misdeeds, usually to formally begin a legal or administrative action. ## Footnote A complaint initiates the legal process and outlines the plaintiff's claims.

Answer 200

A federal law enacted by Congress in 1980 to provide broad authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment. Also called Superfund. ## Footnote CERCLA establishes a framework for the cleanup of hazardous waste sites.

Answer 201

A report available from Lexis/Nexis® that tracks insurance claim history on real property and automobiles. This report helps insurers assess risk and make underwriting decisions.

Answer 202

A long-term plan (e.g., 20 or 30 years) prepared by a local planning board that identifies the goals, objectives, principles, guidelines, policies, standards, and strategies for the growth and development of a community, including its housing needs. Also called Master Plan. ## Footnote Comprehensive Plans guide urban development and land use.

Answer 203

Failing to disclose or intentionally hiding information that is material to a decision by a party. ## Footnote Concealment can lead to legal disputes and may affect contract validity.

Answer 204

A mediation between two parties to settle a dispute and/or seek voluntary compliance in an attempt to avoid a legal court case. ## Footnote Conciliation is often a preferred method for resolving disputes amicably.

Answer 205

The legal proceeding of taking private property for public use, through the government’s power of eminent domain. Condemnation is the action; eminent domain is the right. Also called Appropriation. ## Footnote Property owners may receive compensation for their property during condemnation.

Answer 206

Provision in a deed or other document that makes the parties’ rights and obligations dependent on the occurrence or non-occurrence of some event. ## Footnote Conditions can affect the enforceability of contracts.

Answer 207

A lender's agreement to fund a loan, provided certain contingencies are met. ## Footnote Conditional approval often requires additional documentation or conditions to be fulfilled.

Answer 208

Special Use or Special Exception A use that does not comply with zoning but is permitted because it benefits the public

Answer 209

A property developed for co-ownership, with each co-owner having a separate interest in an individual unit and an undivided interest in the common areas of the property.

Answer 210

The document that developers must file in the public record when developing or converting property to a condominium; specifies common and private spaces, lists easements, and describes bylaws and house rules.

Answer 211

A duty that requires an agent to protect the client’s confidential information, lasting even after the agency relationship has terminated.

Answer 212

A loan that meets the qualifying standards of Fannie Mae or Freddie Mac, allowing it to be sold on the secondary market.

Answer 213

The principle that a property achieves its maximum value when surrounded by similar properties in style, function, and utility. Also called Homogeneity.

Answer 214

A binding agreement reached before judgment in a court case where the accused party consents to change behavior without admitting wrongdoing.

Answer 215

Anything of value given to induce another person to enter into a contract. Also called Valuable Consideration.

Answer 216

A temporary loan used to finance the construction of improvements and buildings on land.

Answer 217

Occurs when a landlord takes actions that interfere with a tenant's use and enjoyment of the premises, providing legal cause for tenant's release from the lease.

Answer 218

Concealment of a material fact; when a person carelessly fails to disclose material information or makes false or misleading statements.

Answer 219

Knowledge of a fact imputed to a person by law because they could have or should have known it, including notice given by recording a document.

Answer 220

A person or entity seeking or receiving licensed activities.

Answer 221

An independent government agency within the Federal Reserve System, established under Title X of the Dodd-Frank Act, with rulemaking and enforcement authority regarding consumer financial laws.

Answer 222

An index published monthly by the United States Bureau of Labor Standards considered a basic indicator of inflation in the U.S.

Answer 223

Competing offers submitted by the same buyer agent on behalf of competing buyers for the same property; requires disclosure to the buyer clients.

Answer 224

A provision that makes the parties’ rights and obligations depend on the occurrence (or nonoccurrence) of a specified event. Also called Condition or Escape Clause.

Answer 225

A title search performed just prior to settlement to update a preliminary title report and ensure no intervening rights to the property have arisen.

Answer 226

An agreement between two or more parties to do, or not do, something; a legally enforceable promise.

Answer 227

An installment contract where the seller passes possession but retains title to the property until the purchase price is paid. Also called Land Contract.

Answer 228

What tenants are actually paying in rent, as stated in the terms of the lease.

Answer 229

The legal ability to enter into a contract.

Answer 230

The economic principle that a specific item is worth only as much as it increases the value of the property.

Answer 231

A loan made by an institutional lender with real estate as security that the government neither guarantees nor insures.

Answer 232

The illegal use of another’s funds or property for personal or business purposes.

Answer 233

The act of transferring an interest in property from one person to another.

Answer 234

An agent who works with a listing agent to sell property, usually through a multiple listing service; generally represents the buyer.

Answer 235

A type of property ownership where residents occupy a unit by purchasing stock shares in a corporation that owns the property.

Answer 236

Any form of ownership in which two or more people share title to a piece of property, holding undivided interests. Also called Co-Tenancy.

Answer 237

A legal entity organized under strict regulations, regarded as an artificial person separate from individual shareholders.

Answer 238

A deed used to correct minor mistakes in an earlier deed, such as misspelled names.

Answer 239

Lines established at intervals in the government survey system to account for the curvature of the earth.

Answer 240

Repairing or restoring broken or failed equipment to a specified condition.

Answer 241

Maintenance that increases a property's aesthetic appeal.

Answer 242

The dollars needed to develop, produce, or build something.

Answer 243

An appraisal method estimating property value by calculating construction costs, deducting depreciation, and adding land value.

Answer 244

Books or electronic media that give estimated construction costs for various types of buildings in different areas.

Answer 245

The interest rate that individuals or businesses must pay to use another’s money.

Answer 246

A response to an offer that changes some terms of the original offer; it is a rejection of the original offer.

Answer 247

A person who receives a counteroffer.

Answer 248

A person who makes a counteroffer.

Answer 249

A contract, promise, or guarantee in a document such as a deed or lease.

Answer 250

The assurance that no encumbrances other than those specified in the deed exist.

Answer 251

A promise that the grantor will perform further acts necessary to correct any defects in the title.

Answer 252

The right to exclusive, undisturbed possession of an estate, without disturbance from previous owners.

Answer 253

An assurance that the grantor has the exact estate being conveyed and has the right to sell it.

Answer 254

An unfinished space below the first floor of a house, usually containing plumbing and other functional elements.

Answer 255

A sum of money that is to be received.

Answer 256

A record detailing how a borrower has paid debts and obligations in the past.

Answer 257

A listing of a borrower's credit history, including debt amount and repayment record.

Answer 258

Agencies that gather debt service information to calculate an individual’s credit score; major bureaus include Experian™, Equifax®, and TransUnion®.

Answer 259

A three-digit number used by lenders to estimate a borrower’s creditworthiness, ranging from 300 to 850.

Answer 260

A method in which numerical values are assigned to different aspects of a borrower's loan application and used by lenders to gauge creditworthiness and assess credit risk.

Answer 261

Length × Width × Depth

Answer 262

Occurs if a licensee operates in a reckless, careless, and excessively negligent manner.

Answer 263

Depreciation is considered curable if the cost of the repair is less than what the repair adds to the value of property.

Answer 264

The interest held by a married person in the real property owned by a spouse; refers to a husband’s interest in their wife’s property (not recognized in all states).

Answer 265

A party to a transaction with whom a real estate licensee does not have a fiduciary duty or relationship, but with whom a licensee must be honest and fair.

Answer 266

Compensation that licensees may accept from a broker with whom they are no longer associated, provided it is specified in the licensee’s agreement.

Answer 267

Contact information for prospects, collected and maintained in an organized manner.

Answer 268

The time period between listing a property and either selling or removing it from the market.

Answer 269

A Certificate of Release or Discharge from Active Duty issued by the Department of Defense.

Answer 270

A sum of money that is owed.

Answer 271

The amount of money owed on a note or other promise to pay.

Answer 272

The amount of money paid at regular intervals toward reducing the principal and interest owed on a debt.

Answer 273

The relationship of a borrower's total monthly debt to gross monthly income, expressed as a percentage.

Answer 274

A court order.

Answer 275

The donation of real property by a private owner to the public.

Answer 276

A written instrument transferring the grantor's ownership of, or interest in, real property.

Answer 277

A document that transfers the title of a property from the property owner to the lender, in exchange for relief from the mortgage debt.

Answer 278

A deed given by lien holders, remaindermen, or mortgagees to relinquish their claims on the property.

Answer 279

A security instrument in financed real estate transactions that transfers the legal title of a property to a third party.

Answer 280

Limitations placed in a deed by a grantor that restrict the way in which the land may be used, improved, or maintained.

Answer 281

Failure to fulfill an obligation, duty, or promise.

Answer 282

A clause used to defeat or cancel a certain right upon the occurrence of a specific event.

Answer 283

A type of freehold estate conveying ownership interest that comes with a condition.

Answer 284

Any lien, claim or encumbrance on a particular piece of real estate that has been properly recorded in the public records.

Answer 285

A personal judgment against a borrower if the lender does not receive the amount of the lien plus costs associated with foreclosure.

Answer 286

A statement in a home inspection report that describes a deficiency and advises the client.

Answer 287

A requirement for the legal transfer of property through a deed.

Answer 288

The need or desire for a specific good or service.

Answer 289

Socioeconomic data regarding employment, education, marriage rates, birth and death rates, and family dynamics.

Answer 290

Many federal housing programs.

Answer 291

A sum of money placed or kept in a bank account.

Answer 292

A loss in property value for any reason.

Answer 293

A process whereby restrictions imposed by a ruling authority are gradually relaxed.

Answer 294

Credit history showing previous problems in meeting financial obligations.

Answer 295

An auction method where the auctioneer lowers the asking price until the first person speaks.

Answer 296

An operation of law in which real property is transferred to an heir after the death of the owner who leaves no will.

Answer 297

A contractual relationship between a broker and a client where one or more licensees represent the client.

Answer 298

A licensee appointed by a broker as the legal agent of a client.

Answer 299

A payment agreement through which a real estate licensee pays their employing broker.

Answer 300

To transfer real property by will.

Answer 301

A rate of return used to derive a value opinion from the anticipated net operating income a property could generate.

Answer 302

A physical or mental impairment that substantially limits one or more major life activities.

Answer 303

The lender’s release of all further obligations on the part of a borrower.

Answer 304

Revelation of material facts or defects.

Answer 305

A form of pre-paid interest that is charged by a lender to increase the yield on a lower-than-market interest rate loan.

Answer 306

The interest rate charged by Federal Reserve Banks on loans to member commercial banks.

Answer 307

Treating people differently because of their race, religion, sex, or other characteristics in violation of civil rights laws.

Answer 308

When depositors bypass traditional depository institutions and invest directly.

Answer 309

When a law has a disproportionate effect on one or more protected classes.

Answer 310

An intentional decision to treat some people differently from others in a similar situation.

Answer 311

A provision requiring businesses to take reasonable measures to dispose of sensitive consumer information.

Answer 312

A pre-defined signal used by someone in a vulnerable situation to communicate danger.

Answer 313

A rule allowing a tenant farmer to harvest crops even after the land has been sold.

Answer 314

A legal doctrine that allows a court to enforce an oral agreement when one party has taken irrevocable steps.

Answer 315

Days on Market.

Answer 316

A person with easement rights on another's property.

Answer 317

Property that receives the benefit of an appurtenant easement.

Answer 318

A lease in which the tenant pays two of the expenses associated with property ownership.

Answer 319

The interest held by a married person in the real property owned by a spouse.

Answer 320

The amount of money a buyer pays to obtain a property, in addition to the money that the buyer borrows.

Answer 321

An agency relationship in which a licensee represents both buyer and seller (or both landlord and tenant) in the same transaction.

Answer 322

A licensee who represents both the buyer and the seller (or both landlord and tenant) in a single real estate transaction.

Answer 323

Investigation to discover facts or liabilities about a property prior to its purchase.

Answer 324

A clause permitting the lender to require the borrower to repay the outstanding balance when the property is sold.

Answer 325

The use of force or improper actions to induce a party to enter into a contract.

Answer 326

A clause that allows a party to avoid having to perform the contract.

Answer 327

An increase in value of real property due to some effort of the owner such as remodeling or other property improvements.

Answer 328

Money offered as an indication of good faith regarding the future performance of a purchase agreement.

Answer 329

A nonpossessory interest and an encumbrance on property that grants the right to use another person’s real property for a particular purpose.

Answer 330

The right acquired by the owner of one parcel of land to use another's adjacent land for a specific purpose.

Answer 331

An easement created through the government’s power of eminent domain when necessary to benefit the public.

Answer 332

An easement that occurs because of necessity, such as the conveyance of a land-locked property.

Answer 333

An easement created by open, notorious, hostile, and uninterrupted use of another person’s land for a specific period of time determined by state law.

Answer 334

A negative easement that prohibits the servient tenant from obstructing the view or preventing light or air from reaching the dominant tenement.

Answer 335

An easement that benefits a person or company, rather than benefiting another parcel of land.

Answer 336

The main business or industry in an area that supports and sustains the community.

Answer 337

A study of an area’s current business and employment situation to determine the likelihood of continued stability, growth, or decline.

Answer 338

The time during which a building can be used for its intended purpose and generate more income than is paid out for operating expenses.

Answer 339

A loss in value due to factors outside the subject property, such as changes in competition or surrounding land use.

Answer 340

The amount of rental which a building would receive if set by the market.

Answer 341

The age of a structure based on the actual wear and tear that the building shows.

Answer 342

The date for which value was established when doing an appraisal.

Answer 343

When prospective buyers have enough disposable income to satisfy their purchase needs or desires.

Answer 344

An investment property’s potential gross rental income plus other income, less vacancy and collection losses.

Answer 345

A white powdery deposit on the surface of foundation walls or floor slabs created when water penetrates the wall or floor.

Answer 346

Exterior Installation and Finish Systems.

Answer 347

Vertical measurement above or below a fixed reference point.

Answer 348

An annual crop that is planted and cultivated by a tenant farmer and is always the personal property of the tenant farmer.

Answer 349

The government’s constitutional power to take private property for public use, with just compensation.

Answer 350

Someone who works under the control of, and at the direction of, a business or manager.

Answer 351

A broker under whom affiliated licensees are contracted to work.

Answer 352

A written contract between a self-employed real estate licensee and a broker under whose license the licensee will work.

Answer 353

Legislation granting authority or power to take certain actions.

Answer 354

The process of applying a sealant to asbestos-containing material to prevent the release of dangerous fibers.

Answer 355

A physical object intruding onto neighboring property, often due to a mistake regarding the boundary.

Answer 356

Any claim, lien, charge, or liability that attaches to, or burdens, real property.

Answer 357

A program that sets standards for energy-efficient consumer products and homes.

Answer 358

A contract that would be upheld by the courts based on certain requirements.

Answer 359

The maximum dollar amount of guaranty that applies to an eligible veteran on a VA-guaranteed loan.

Answer 360

A study detailing a development project's impact on various environmental and social elements.

Answer 361

Creates and enforces environmental protection standards and provides research on environmental issues.

Answer 362

A report identifying potential or existing environmental contamination liabilities.

Answer 363

A federal law requiring lenders to make credit available without discrimination.

Answer 364

A lien created when justice and fairness require a court to declare such a lien exists.

Answer 365

The right of a debtor to redeem the property from foreclosure before the sale confirmation.

Answer 366

Any present right to acquire legal title to property.

Answer 367

An owner’s unencumbered interest in property; the difference between the value of the property and the liens against it.

Answer 368

A gradual loss of soil due to the action of wind, water, or other forces.

Answer 369

A type of liability insurance covering expenses of a lawsuit if a client claims a real estate licensee was at fault.

Answer 370

A lease clause that provides for an increase in rent to reflect increases in expenses.

Answer 371

A clause that allows a party to avoid having to perform the contract.

Answer 372

The reversion of property to the state after a person dies without a valid will or heirs.

Answer 373

A neutral third party that holds things of value on behalf of the parties to a transaction.

Answer 374

A separate account maintained by a broker for the deposit of clients’ money.

Answer 375

A settlement procedure conducted by a disinterested third party.

Answer 376

A neutral third party who safeguards funds on behalf of a buyer or seller.

Answer 377

An account maintained by a lender for the deposit of borrowers’ extra monthly deposits.

Answer 378

A relationship that allows a telemarketer to call a consumer for up to 18 months after a business transaction.

Answer 379

A possessory interest in real property; may be either a freehold estate or a leasehold estate.

Answer 380

Possession of property by a tenant who stays on after the lease expires without permission.

Answer 381

Possession of property by a tenant with the owner’s permission, but with no definite lease term.

Answer 382

A leasehold estate set to last for a definite period, after which it automatically terminates.

Answer 383

A leasehold that is automatically renewed for the same term as in the original lease.

Answer 384

The maximum possible estate one can possess in real property.

Answer 385

A legal doctrine that prevents a person from asserting rights inconsistent with their earlier actions or statements.

Answer 386

A document that establishes certain facts that may not be contradicted or disputed later.

Answer 387

The fundamental principles of honesty and integrity that guide a person’s behavior.

Answer 388

The process of forcing someone off property or preventing someone from re-entering property.

Answer 389

Provided through a title report or issuance of title insurance.

Answer 390

Land not needed to support the highest and best use of a property.

Answer 391

An employment contract where the broker earns a commission unless the property was specifically exempted.

Answer 392

An employment contract that entitles the broker to a commission if anyone other than the seller finds a buyer.

Answer 393

An employment contract granting only one broker the right to represent the buyer in property purchase.

Answer 394

An employment contract giving the brokerage exclusive rights to locate a tenant for a specified period.

Answer 395

An employment contract entitling the broker to a commission if anyone finds a buyer during the agency relationship.

Answer 396

A contract in which both parties have fully performed their contractual obligations.

Answer 397

A person appointed in a will to carry out the provisions of the will.

Answer 398

A contract in which one or both parties have not yet completed performance of their contractual obligations.

Answer 399

A listing that did not sell during its listing period.

Answer 400

An agency relationship where the principal clearly communicates authority to the agent.

Answer 401

Actual consent to represent intentionally given by agreement by a principal to an agent.

Answer 402

An agreement expressed in words, either spoken or written.

Answer 403

A policy that includes standard coverage and additional protections.

Answer 404

When something outside of a property makes it less desirable.

Answer 405

A licensee who assists in the successful completion of a transaction without agency relationship.

Answer 406

A federal law promoting the accuracy, fairness, and privacy of consumer information.

Answer 407

Prohibits discrimination in the sale or lease of residential real property.

Answer 408

The price negotiated in a competitive market where both buyer and seller are free to act.

Answer 409

A protected group under the Fair Housing Act, prohibiting discrimination against parents or guardians of children under 18.

Answer 410

A focused area that a real estate licensee continues to prospect.

Answer 411

A federal agency that insures deposits in member commercial banks.

Answer 412

An act prohibiting discrimination in housing based on various factors.

Answer 413

A government-sponsored enterprise that supports mortgage lending and community investment.

Answer 414

To insure deposits in member commercial banks and determine the maximum insurance amount per account.

Answer 415

Discrimination in the sale or rental of housing based on race, color, religion, national origin, sex, handicap, and familial status.

Answer 416

A government-sponsored enterprise that supports mortgage lending and community investment for its member banks and financial institutions.

Answer 417

Freddie Mac.

Answer 418

To increase home ownership by providing an insurance program for lenders against non-payment risk.

Answer 419

Fannie Mae.

Answer 420

Monetary policy, affecting interest rates and credit availability.

Answer 421

An independent valuation professional hired to value a property for a fee.

Answer 422

A type of defeasible fee that terminates automatically if certain conditions occur.

Answer 423

The greatest estate one can have in real property, freely transferable and inheritable, of indefinite duration.

Answer 424

The grantor retains title until a specific condition occurs.

Answer 425

A defeasible fee that may be terminated by the grantor through legal action if conditions stated in the deed are not met.

Answer 426

A home financing option insured by the FHA for qualified borrowers against loss from borrower default.

Answer 427

Fair Isaac Corporation.

Answer 428

A three-digit number summarizing a credit report used by lenders to assess risk.

Answer 429

A business name different from its owner's legal name, also called Trade Name or DBA Name.

Answer 430

A person in a position of trust, held by law to high standards of good faith and loyalty.

Answer 431

A deed used to transfer property when the grantor is a fiduciary, usually only warranties their official capacity and authority.

Answer 432

The cost of consumer credit as a dollar amount, including any charge imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit.

Answer 433

A clause in a purchase agreement that states the contract is contingent on the buyer obtaining approval for a loan on specified terms.

Answer 434

Claim with highest priority against property; also known as a superior to the rights of subsequent lenders.

Answer 435

A mortgage on real estate in which the lender's rights are superior to the rights of subsequent lenders.

Answer 436

An event triggering agency disclosure, for example, prior to entering into a listing agreement, or when showing a property.

Answer 437

Ongoing operating expenses that do not vary based on occupancy levels of the property.

Answer 438

Commission agreement by which a fixed dollar amount is paid for the performance of specific real estate services.

Answer 439

A loan for which the interest rate remains constant for the duration of the loan.

Answer 440

An item of personal property that has been attached to or closely associated with real property.

Answer 441

A specific fee paid out once or in specific increments.

Answer 442

Purchasing a property and quickly reselling it for a profit.

Answer 443

Land areas adjacent to rivers and streams that are subject to recurring flooding.

Answer 444

The maximum size of a building permitted on a development site according to zoning requirements.

Answer 445

An assignment to take calls from consumers who call the brokerage for assistance.

Answer 446

The weight (pounds per square foot) or load that the floor of a structure can handle.

Answer 447

The support for the foundation of a building.

Answer 448

A property offered for sale directly by the seller, who is not represented by a listing agent.

Answer 449

When the lender agrees to temporarily reduce, postpone, or suspend a borrower’s mortgage payment.

Answer 450

A type of heating system consisting of furnaces, blowers, ducts, and registers.

Answer 451

A summary legal action to regain possession of real property.

Answer 452

The process used by a lienholder to force a property to be sold to apply the proceeds toward debt satisfaction.

Answer 453

A federal law that imposes income tax on foreign persons selling or disposing of their interest in real property.

Answer 454

The basic structure on which the rest of the building will sit.

Answer 455

The basic load-bearing skeleton of the house.

Answer 456

An intentional or negligent misrepresentation or concealment of a material fact.

Answer 457

A possessory interest in real property of uncertain duration; an ownership estate in real property.

Answer 458

A characteristic of asbestos in which it can crumble easily or become powdery.

Answer 459

The dimension across the access side of a parcel of land.

Answer 460

Plants planted and cultivated by people; generally considered personal property.

Answer 461

Naturally occurring plants generally considered part of real property.

Answer 462

A loan in which regular payments of principal and interest are applied until the loan is paid off.

Answer 463

Something inherent in the design of a structure that makes it less desirable.

Answer 464

Actual or perceived appearance, expression, identity, or behavior of a person as being male or female.

Answer 465

A person authorized to handle a variety of activities for the principal in one area.

Answer 466

Insurance that protects against bodily injury and property damage claims.

Answer 467

A lien against all property of a debtor, instead of a particular piece of property.

Answer 468

An association organized by two or more persons engaged in a business for the purpose of joint profit.

Answer 469

A deed in which the grantor warrants the title against any and all defects.

Answer 470

Consent given freely to create a binding contract.

Answer 471

A computer-based system for gathering, analyzing, and displaying geographic data.

Answer 472

Love and affection, as opposed to monetary consideration.

Answer 473

The general presumption that the parties in a contract will deal with each other honestly and fairly.

Answer 474

Title that is free from encumbrances such as liens.

Answer 475

An agency of the Department of Housing and Urban Development that operates in the secondary mortgage market.

Answer 476

Legal description for land referencing principal meridians and baselines designated throughout the country.

Answer 477

A quasi-governmental, privately held agency established by Congress to improve credit flow.

Answer 478

A lease under which rental increases are made at scheduled intervals.

Answer 479

A temporary buydown plan where payment subsidies keep payments low, but payments increase each year.

Answer 480

A financing technique for residential real estate where monthly payments start low and increase periodically.

Answer 481

An exemption from the application of a new law due to previously existing circumstances.

Answer 482

Transferring real estate by means of a deed.

Answer 483

Person receiving a grant of real property.

Answer 484

A deed clause stating a grantor's intent to transfer an interest in real property.

Answer 485

A person who conveys their interest in real property.

Answer 486

An agency relationship where a real estate licensee is not compensated for their services.

Answer 487

The actual income received from property before the deduction for any expenses.

Answer 488

A conversion factor used to estimate the value of a property based on its gross income.

Answer 489

A lease for which the tenant pays a fixed amount and the property owner is responsible for all expenses.

Answer 490

Residential space that is finished, heated, and above grade.

Answer 491

The amount a property owner receives from a tenant for leasing a property before deductions.

Answer 492

A conversion factor used to estimate the value of a property based on its gross rent.

Answer 493

A lease under which the tenant leases only the land from the owner.

Answer 494

A residential property where a small number of unrelated people in need of care can live together.

Answer 495

A fixed-rate mortgage with payments that increase by a predetermined amount.

Answer 496

A deed authorized by a guardian assigned by the court.

Answer 497

A clause in a deed that describes the type of estate granted.

Answer 498

A construction method with external walls having exposed wood framing.

Answer 499

The part of the auctioneer’s chant that indicates the current bid.

Answer 500

A combination heating and cooling system.

Answer 501

A characteristic that each piece of land, building, and house is unique.

Answer 502

The most profitable, legally permitted, feasible, and physically possible use of a piece of property.

Answer 503

One who acquires a negotiable instrument in good faith and for consideration.

Answer 504

A lessee who remains in possession of property after the lease has expired.

Answer 505

A loan that a taxpayer takes out to buy, build, or substantially improve a qualified home.

Answer 506

A measurement of a home’s energy efficiency used primarily in the United States.

Answer 507

A loan that is secured by a qualified home but does not qualify as home acquisition debt.

Answer 508

Available money that a homeowner can borrow, secured by a second mortgage.

Answer 509

A loan taken by a homeowner that is secured by a mortgage on their principal residence.

Answer 510

An unbiased, systematic, noninvasive, visual inspection of the physical structure and systems of a home.

Answer 511

A written report that a home inspector issues after a home inspection detailing issues found.

Answer 512

A contract providing coverage for repair or replacement of named components of a home.

Answer 513

A nonprofit association composed of homeowners in a subdivision.

Answer 514

A statutory or legal life estate that protects the interests in real estate belonging to a deceased person.

Answer 515

State laws that create the legal framework that allows a condominium form of ownership.

Answer 516

A type of heating system consisting of boilers, pipes, and radiators.

Answer 517

The relationship of a borrower's total monthly housing expense to gross monthly income.

Answer 518

Heating, ventilation, and air conditioning.

Answer 519

The act of pledging property to be the security for a loan without giving up possession.

Answer 520

A scheme in which property is purchased at a low price and resold at an inflated value.

Answer 521

Something deemed unlawful on the face of the evidence.

Answer 522

The difficulty of converting an asset to cash.

Answer 523

A physical characteristic of real estate referring to the fact that it cannot be moved.

Answer 524

The attitudes or stereotypes that affect our understanding and decisions in an unconscious way.

Answer 525

An agency relationship created through the behavior of one or both parties.

Answer 526

An agreement that hasn’t been put into words but is implied by actions.

Answer 527

The lessor’s implicit promise that the premises comply with building codes.

Answer 528

A substantial, manufactured addition to real property.

Answer 529

The legal concept that information communicated to the agent has been communicated to the principal.

Answer 530

A system by which developers receive zoning incentives on the condition that they provide specific benefits to the community.

Answer 531

The authority to do everything reasonably necessary to carry out the principal’s express orders.

Answer 532

An appraisal method that estimates the value of real estate by analyzing the amount of revenue the property generates.

Answer 533

A report that details the income received from property management.

Answer 534

The authority to do everything reasonably necessary to carry out the principal’s express orders. ## Footnote This concept is essential in understanding the scope of authority given to agents in real estate transactions.

Answer 535

An appraisal method in which an opinion of the value of real property is derived by analyzing the amount of revenue the property generates or could generate. ## Footnote Also called Capitalization Approach.

Answer 536

A report that details the income and expenses associated with an investment over a specific period of time. ## Footnote Also called Profit and Loss Statement.

Answer 537

Economic principle stating the addition of more factors of production will add higher amounts to new income up to a certain point, after which further addition will not increase value.

Answer 538

Elements of a structure which are neither physically possible nor economically feasible to correct.

Answer 539

A term often erroneously applied to real estate licensees who are actually self-employed individuals under the supervision of their brokers.

Answer 540

A characteristic of real estate; land can’t be destroyed.

Answer 541

A statistical report that is generally a reliable indicator of the approximate change in the cost of money.

Answer 542

A lease in which the amount of the rent is tied to some common index indicator, such as the Consumer Price Index.

Answer 543

A method for determining the cost of a building by taking its original cost and multiplying by an index factor based on the time since construction.

Answer 544

An increase in the cost of goods or services.

Answer 545

An interest in land that can be passed to a relative upon the death of the owner.

Answer 546

A situation in which a single brokerage represents both the buyer and seller in the same real estate transaction.

Answer 547

A court-ordered prohibition against a particular act.

Answer 548

When circumstances should have alerted someone to a possible problem prompting further investigation.

Answer 549

A purchase contract clause giving a buyer the right to have the home inspected during a specified period.

Answer 550

The period specified in the purchase agreement during which the buyer can conduct an inspection.

Answer 551

A material used to slow the flow of heat, moisture, shock, or sound.

Answer 552

Title to property that a title insurance company has agreed to insure against defects.

Answer 553

1. A right or share in something, such as a parcel of real estate. 2. A charge a borrower pays to a lender for the use of the lender’s money.

Answer 554

The cost of using money expressed as a percent per period.

Answer 555

The flow of deposits into lending institutions that creates a mortgage money supply.

Answer 556

A federal law that protects consumers from fraud and abusive marketing practices in the sale and lease of land.

Answer 557

The state of dying without making a will.

Answer 558

Without legal force.

Answer 559

The number of available homes on the market listed as active or pending.

Answer 560

The value of a property to a particular investor based on that investor's specific investment expectation and criteria.

Answer 561

When title to property is transferred during the owner's lifetime without the owner’s consent.

Answer 562

A lien that arises by operation of law, without the consent of the property owner.

Answer 563

Not capable of being changed or terminated.

Answer 564

A report indicating the seller’s proceeds from the sale or transfer of real estate submitted to the IRS.

Answer 565

A calculation for finding the net operating income (I), capitalization rate (R), or value (V) of an investment property.

Answer 566

A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship.

Answer 567

Two or more individuals or companies joining together for one project or a series of related projects.

Answer 568

Long beams of wood or steel that span the perimeter of a foundation or the load-bearing walls of a roof.

Answer 569

A recorded claim against another for a wrongful act, as ordered by a court.

Answer 570

A lawsuit filed by a lender to foreclose on a mortgage or other lien.

Answer 571

A loan that exceeds the maximum loan amount that Fannie Mae and Freddie Mac will buy.

Answer 572

An encumbrance that is second in priority to a previously recorded lien.

Answer 573

Charges assessed to a borrower that serve little if any function and are often hidden in mortgage documents.

Answer 574

The fair market value for property when the government exercises its constitutional power of eminent domain.

Answer 575

Fee or other compensation given as undisclosed commission for business referrals.

Answer 576

The loss of a right through undue delay or a failure to assert.

Answer 577

The surface of the earth, everything under the ground, and everything over the earth into the air.

Answer 578

A real estate installment agreement under which the buyer makes payment to the seller in exchange for the right to occupy and use the property.

Answer 579

A lease under which the tenant leases the land from the owner, but the tenant owns the building.

Answer 580

A trust in which real estate is the only asset, managed by a trustee as directed by the beneficiary.

Answer 581

A parcel that is completely shut in by adjoining parcels of land with no access to public roads.

Answer 582

A flaw that is not visible or apparent; a hidden defect not discovered in a thorough inspection.

Answer 583

The requirement that a contract’s terms not be illegal or impossible.

Answer 584

A bluish-white metal that can cause health issues, especially for children.

Answer 585

A contract in which one party pays rent in exchange for possession of real estate.

Answer 586

A bilateral contract in which a tenant pays rent but is obligated to complete the purchase in the future.

Answer 587

A unilateral contract allowing a tenant to pay rent and receive the option to purchase the property later.

Answer 588

The owner’s interest in a leased estate, which is reversionary.

Answer 589

The temporary interest given to a tenant that includes the right of possession and quiet enjoyment.

Answer 590

A fixture attached to real property by a landlord for the use of a tenant.

Answer 591

A precise description of a specific piece of property.

Answer 592

The interest in property held by the rightful owner.

Answer 593

A person who leases property; a tenant.

Answer 594

A person who leases property to another.

Answer 595

Using borrowed money to increase a return on investment.

Answer 596

Revocable, non-assignable permission to enter another person's land for a stated purpose.

Answer 597

Someone who is licensed and chooses to be a personal assistant on a real estate team.

Answer 598

An appraiser who may accept assignments to appraise one to four-unit residential properties.

Answer 599

A person licensed under state law to practice real estate.

Answer 600

A non-possessory interest in property, giving a lienholder the right to foreclose.

Answer 601

A state in which real estate loans are regarded as liens and title remains with the lender.

Answer 602

An interest in real property, limited by the life of its owner or another designated person.

Answer 603

A life estate where the measuring life is someone other than the life tenant.

Answer 604

Someone who owns a life estate; entitled to possession of the property during the measuring life.

Answer 605

Areas in a condominium or cooperative owned by all, but used by only one owner.

Answer 606

A legal entity that blends the characteristics of a corporation and limited partnership, offering reduced personal liability.

Answer 607

A partnership composed of one or more general partners and one or more limited partners.

Answer 608

A deed in which the grantor warrants title only against defects arising during their ownership.

Answer 609

The total length in feet around a perimeter.

Answer 610

A sum of money agreed upon in advance that serves as compensation in the event of breach.

Answer 611

The value of a property if sold under duress or in a must-sell situation.

Answer 612

The ability to convert an asset into cash quickly without loss of principal.

Answer 613

A recorded notice stating that there is a lawsuit pending that may affect title to the defendant’s property.

Answer 614

A written agency contract between a seller and a broker stating the broker earns a commission for finding a buyer.

Answer 615

The amount of money at which a seller offers their property for sale.

Answer 616

The process of taking legal action, such as filing a civil lawsuit.

Answer 617

Water rights of landowners whose land touches a non-flowing body of water.

Answer 618

The ratio of rentable square footage to usable square footage.

Answer 619

The disclosure of loan terms and estimated settlement costs that lenders must present to borrowers.

Answer 620

The amount a lender is willing to lend someone to finance a property.

Answer 621

The amount borrowed compared to the value of the property.

Answer 622

A secured container for a key, accessible only by authorized individuals.

Answer 623

An agreement obligating the lender to make a mortgage loan at a specified rate for a specific period.

Answer 624

A parcel of land; a parcel in a subdivision.

Answer 625

A type of legal description used for platted property stating the property’s lot and block number.

Answer 626

A fiduciary duty that requires a licensee to put the principal’s interests above all others’ interests.

Answer 627

A written agreement that governs the relationship between the property owner and the property manager.

Answer 628

A plan created by the property manager for overseeing the principal’s property, including market analysis and developing a variety of financial reports, including the operating budget.

Answer 629

A type of prefabricated residence built with standardized parts constructed and assembled in a factory and transported to a home site to be installed on either a permanent or temporary foundation.

Answer 630

The difference between the index value and the interest rate charged to the borrower; the lender’s profit.

Answer 631

Property acquired by either a spouse or a legal partner during the course of a marriage or civil union.

Answer 632

A place where buyers and sellers come together to buy and sell services or products.

Answer 633

An evaluation of how many similar homes are for sale and historically how long it will take to sell that amount given current economic conditions.

Answer 634

An antitrust violation where competitors agree to not compete with each other in specific markets by dividing up geographic areas, types of products, or types of customers.

Answer 635

Economic factors, population, zoning regulations, transportation, and other factors pertinent to the property’s location.

Answer 636

Value by comparing similar properties.

Answer 637

A depreciation method based on sales of comparable properties with similar traits.

Answer 638

The position an agent’s listing is in compared to similar homes in the same neighborhood at a similar price.

Answer 639

The lease revenue a property should bring if available for lease.

Answer 640

The percentage of total sales made by a real estate brokerage in a specific service area.

Answer 641

The most probable price a property should bring on an open and competitive market under all conditions essential to a fair sale.

Answer 642

A title that is free and clear from undisclosed encumbrances or other defects that would expose a purchaser to litigation.

Answer 643

A document that converts a parcel of land into a condominium, identifying all individual dwelling units and common elements.

Answer 644

A written document prepared by a local planning board that identifies the goals, objectives, principles, guidelines, policies, standards, and strategies for community growth.

Answer 645

A process of determining the value of specific property characteristics or features by comparing pairs of similar properties.

Answer 646

An unexcused failure to perform according to the terms of a contract that are important enough to excuse the non-breaching party from performing their contractual obligations.

Answer 647

A fact that would change the individual’s actions if it were known, usually referring to things wrong with the property.

Answer 648

A person who supplies materials, equipment, or fuel for a construction project.

Answer 649

Dialogue involving asking a new contact if they have an agent they would refer for buying or selling a home.

Answer 650

A person whose life determines the length of a life estate.

Answer 651

A specific lien claimed by someone who performed work on the property to secure the amount of the charges for services.

Answer 652

Ventilation systems that use exhaust fans, typically located in the kitchen and bathrooms.

Answer 653

When all parties involved agree to the terms of a contract, achieved through offer and acceptance.

Answer 654

A legal description that starts at an easily identifiable point of beginning and describes the property’s boundaries.

Answer 655

A measurement equal to one-tenth of one cent (.001) used to state the property tax rate.

Answer 656

A rate of taxation for real property calculated as $1 per $1,000 of assessed value.

Answer 657

Rights to the minerals located beneath the surface of the land.

Answer 658

Tasks that a licensee may perform for a customer that are informative or clerical in nature.

Answer 659

One who has not attained the age of majority in a state and does not have legal capacity to be bound by most contracts.

Answer 660

A false or misleading statement.

Answer 661

Action taken by the non-breaching party to minimize the losses resulting from a breach of contract.

Answer 662

A development that combines residential, retail, and/or office space.

Answer 663

A manufactured home built prior to 1976.

Answer 664

A fungus that can release toxins into the environment causing allergic reactions in some people.

Answer 665

Actions taken by the Federal Reserve to influence the availability and cost of money and credit.

Answer 666

A situation where only one or very few companies dominate the market share of a particular product or service.

Answer 667

The amount of time predicted to take to deplete inventory given the number of homes on the market and the rate of recent closings.

Answer 668

A lease that has a term of one month but is renewable for successive months at the option of both parties.

Answer 669

Any natural or man-made marker used to establish lines and boundaries in a metes and bounds survey.

Answer 670

The use of persuasive influences rather than coercion or regulation to encourage changes in the public and financial markets.

Answer 671

A security instrument that creates a voluntary lien on real property to secure repayment of a debt.

Answer 672

A financial institution that usually originates and funds its own loans.

Answer 673

A person who, for compensation, makes, negotiates, acquires, sells, or arranges for a mortgage loan.

Answer 674

A clause in a contract that states the agreement is contingent on the buyer obtaining approval for a mortgage loan.

Answer 675

Any scheme involving misrepresentation, concealment, or omission used in an attempt to obtain financing.

Answer 676

The mandatory fee charged for FHA mortgage insurance coverage.

Answer 677

A person who solicits, negotiates, explains, or finalizes the terms of a mortgage loan.

Answer 678

A company that collects monthly mortgage payments, pays taxes, insurance, and notifies the borrower of late payments.

Answer 679

A bundle of mortgage loans that lenders sell to investors who receive a share of the principal and interest collected.

Answer 680

A lender who accepts a mortgage as security for the repayment of a loan.

Answer 681

A type of title insurance that the lender may have drawn in its own name to protect its interests in the property.

Answer 682

A person who borrows money and gives a mortgage to the lender as security for repayment.

Answer 683

A limited exemption from the federal Fair Housing Act for rental of a unit in an owner-occupied dwelling with four or fewer units.

Answer 684

A cooperative service and database of available listed properties in an area conducted by a group of brokers.

Answer 685

An offer and acceptance which together form the terms of a contract.

Answer 686

America's largest trade association representing members involved in all aspects of the real estate industries.

Answer 687

A database listing the telephone numbers of consumers who do not want to be contacted by commercial telemarketers.

Answer 688

Air circulation achieved through airflow and vents.

Answer 689

The effect when a loan balance grows because of deferred interest when payments are not covering the interest portion.

Answer 690

Conduct that falls below the standard of care that a reasonable person would exercise under the same circumstances.

Answer 691

A promissory note or other finance instrument that is freely transferable.

Answer 692

A contiguous area labeled by similar traits or physical boundaries.

Answer 693

A lease agreement that requires the lessee to pay some of the operating expenses in addition to paying rent.

Answer 694

A compensation strategy where the seller sets a net amount for the property; the broker keeps any excess as commission.

Answer 695

Income remaining after deducting all vacancy losses and operating expenses from gross income.

Answer 696

The money a seller should receive from a real estate transaction after all costs have been paid.

Answer 697

A home that produces as much energy as it consumes.

Answer 698

The interest rate for a loan as indicated in lender advertising.

Answer 699

The sector of a local economy made up of businesses that sell goods or services to consumers within the community.

Answer 700

A loan that does not meet Fannie Mae/Freddie Mac standards and cannot be sold on the secondary market.

Answer 701

A land use that is prohibited by current zoning laws but allowed because it existed before the law was passed.

Answer 702

An agreement between a buyer and any number of brokers where a broker earns a commission only if they introduce the buyer to the property.

Answer 703

A characteristic of real property where each piece is unique.

Answer 704

Foreclosure by a trustee under the power of sale clause in a deed of trust without court involvement.

Answer 705

Any property owned prior to marriage or given only to one spouse during the marriage.

Answer 706

A consumer’s personal financial information that is not easily obtainable by the general public.

Answer 707

A loan where the lender cannot collect personal assets of the borrower if the collateral is sold for less than the amount owed.

Answer 708

A person with the authority to take oaths and acknowledgments.

Answer 709

A signed instrument acknowledging the existence of a debt and the promise to pay.

Answer 710

The notification given by a lender to a borrower who has failed to repay a debt, requiring repayment of the entire outstanding balance.

Answer 711

A certificate establishing the current market value of a property based on an approved VA appraisal.

Answer 712

A landlord’s notice to a tenant, demanding that they vacate the leased property.

Answer 713

The release of liability of the original tenant on a lease, and the substitution of a subsequent tenant with the lessor’s approval.

Answer 714

Invalid and unenforceable.

Answer 715

The requirement for a licensee to follow the lawful instructions of the principal.

Answer 716

A loss in value due to reduced desirability and usefulness of a structure.

Answer 717

The maximum number of inhabitants allowable in a given rental dwelling.

Answer 718

The first step in forming a contract, requiring intent to contract and definite terms.

Answer 719

The necessary elements of mutual assent in a contract.

Answer 720

A published offer in a multiple listing service including the amount offered as compensation to another brokerage.

Answer 721

A person who receives an offer.

Answer 722

A person who makes an offer.

Answer 723

Failure to mention or disclose information.

Answer 724

A non-exclusive listing given by a seller to multiple brokers; a broker earns commission only if they are the procuring cause of the sale.

Answer 725

When the Federal Reserve Board sells or buys government securities to control supply and demand.

Answer 726

A loan containing a clause that allows the mortgagor to borrow additional money without rewriting the mortgage.

Answer 727

A budget created to project the income and expenses for a property over a one-year period.

Answer 728

The right to terminate future electronic communication from businesses.

Answer 729

A unilateral contract giving a potential buyer an exclusive right to buy property at an agreed price.

Answer 730

A person to whom an option is given.

Answer 731

A person who gives an option.

Answer 732

A budget created to project the income and expenses for a property over a one-year period.

Answer 733

A consumer’s right to terminate future electronic communication from business and commercial entities.

Answer 734

A unilateral contract in which a seller gives a potential buyer an exclusive right to buy property at an agreed price during a specified period.

Answer 735

A court-ordered directive to a public officer to seize the property to regain possession for the owner.

Answer 736

A statute enacted by the legislative branch of a local government.

Answer 737

A conventional life estate in which the measuring life and the life tenant are the same person.

Answer 738

The process of making or initiating a new loan.

Answer 739

A fee charged by a lender to cover the administrative costs of making a loan, usually based on a percentage of the loan amount.

Answer 740

A person who has been given the appearance of being an employee or acting for another, leading others to believe they are an agent.

Answer 741

An accessory structure other than the main structure on land.

Answer 742

The amount above the base rent that a tenant owes according to the terms of a percentage lease.

Answer 743

A type of title insurance issued in the name of the property owner.

Answer 744

Ownership by a single individual person or legal entity, also called Sole Ownership or Separate Property.

Answer 745

Paid Outside of Closing.

Answer 746

A mortgage where personal property is included in a real estate sale and financed with one contract.

Answer 747

A specific lot or piece of real estate, particularly a specified part of a larger tract.

Answer 748

Evidence concerning negotiations or oral agreements not included in a written contract.

Answer 749

A potential remedy for breach of contract where the injured party agrees to accept less than the full terms.

Answer 750

A method of loan repayment in which the balance of the outstanding loan is not zero at maturity.

Answer 751

A court action to divide real property among its co-owners.

Answer 752

When co-owners agree to terminate their co-ownership, dividing the property.

Answer 753

A working arrangement in which two or more people combine their money and skills to operate a business.

Answer 754

An additional operating cost passed from a property owner to a tenant.

Answer 755

A visible, apparent defect that can be seen in a reasonably thorough inspection of property.

Answer 756

A limit on the amount of mortgage payment increases with an adjustable-rate mortgage.

Answer 757

Monetary loss.

Answer 758

A fee based on a property’s gross collectible income.

Answer 759

A lease under which a tenant pays a percentage of the tenant's sales in addition to rent.

Answer 760

A leasehold estate that continues for successive periods of equal length until terminated.

Answer 761

Official government documents that acknowledge work a person wants to do on a property.

Answer 762

Tangible items not permanently attached to real estate; movable property not affixed to land.

Answer 763

The loss in value due to wear and tear of the structure.

Answer 764

Principal, Interest, Taxes, and Insurance.

Answer 765

A housing development not subject to standard zoning requirements.

Answer 766

A local entity responsible for approving development projects in the community.

Answer 767

A detailed survey map of a subdivision, recorded in the county where the land is located.

Answer 768

A technique of framing where a platform is built over the basement or crawl space.

Answer 769

Land that has been subdivided into blocks and lots.

Answer 770

An increase in value due to successful assemblage of separate parcels.

Answer 771

A property for which a broker holds a signed listing agreement not entered into the MLS.

Answer 772

One percent of the loan amount charged as a fee.

Answer 773

The authority of state and local governments to enact and enforce laws for public welfare.

Answer 774

Human-made chemicals associated with electrical equipment, banned by the EPA in 1979.

Answer 775

A formula that ties rent escalation to the wages of building maintenance personnel.

Answer 776

Financial institutions that make real estate loans and keep them in-house.

Answer 777

The physical control of real property.

Answer 778

An interest in property that entitles the holder to possess and occupy it.

Answer 779

An instrument authorizing one person to act as another’s agent.

Answer 780

A clause that allows a trustee to sell property without court supervision.

Answer 781

The preliminary process by which a lender determines if potential borrowers can be financed.

Answer 782

Loan tactics that take advantage of ill-informed consumers through high fees or misrepresented terms.

Answer 783

A search of liens and encroachments to issue title insurance.

Answer 784

A home inspection conducted before the owner puts the home on the market.

Answer 785

Expense items already paid by the seller in advance.

Answer 786

A contract clause giving a lender the right to charge a penalty for early loan payoff.

Answer 787

Additional money charged by a lender for paying off a loan early.

Answer 788

The informal process of determining how much a potential homebuyer might be eligible to borrow.

Answer 789

An easement obtained by continuous use of property belonging to someone else for a statutory period.

Answer 790

Routine maintenance to keep equipment and property in good working order.

Answer 791

The amount asked, offered, or paid for a property.

Answer 792

An antitrust violation where competitors agree to fix prices.

Answer 793

The market where lenders make mortgage loans directly to borrowers.

Answer 794

The short-term interest rate a bank charges its most creditworthy customers.

Answer 795

The person who gives authority to an agent.

Answer 796

North-south lines designated for use with the government survey system.

Answer 797

The theory that added value of a feature is less than the actual cost beyond a certain point.

Answer 798

The theory that added value of an additional feature is more than the actual cost.

Answer 799

An insurance policy protecting a lender if the borrower defaults, usually required with high loan-to-value ratios.

Answer 800

A restriction imposed on property by a previous owner or subdivision developer.

Answer 801

A judicial proceeding to establish the validity of a will and distribute estate property.

Answer 802

Compensation paid to a licensee by a tenant representative for finding space for the tenant.

Answer 803

An uninterrupted series of events leading to the creation of a contract.

Answer 804

A corporation made up entirely of licensed persons delivering services in a specific area.

Answer 805

A schedule of projected income and expenses for a real estate investment.

Answer 806

The principle that the value of an inferior property is positively affected when surrounded by superior properties.

Answer 807

A written, legally binding promise to repay a debt.

Answer 808

A form identifying defects and issues related to the condition of the property for sale.

Answer 809

An evaluation of the conditions of a property by a trained professional.

Answer 810

Managing the leasing or renting of real property for a fee.

Answer 811

A written agreement creating an agency relationship between the property owner and manager.

Answer 812

A person hired by a property owner to administer and maintain property.

Answer 813

An exclusive lease given to a person who lives in and owns stock in a cooperative.

Answer 814

The equitable distribution of expenses among tenants based on the percentage of property occupied.

Answer 815

The allocation of expenses between a buyer and seller in proportion to their actual usage.

Answer 816

A form used to document identifying data about a prospective real estate client.

Answer 817

Attempting to find business through various methods.

Answer 818

A group of people legally protected against discrimination based on a common trait.

Answer 819

An establishment intended to be available to everyone for business or government purposes.

Answer 820

Superlative statements about the quality of a property not considered assertions of fact.

Answer 821

Damages awarded to punish a defendant for malicious conduct.

Answer 822

A contract in which a seller promises to convey title to real property in exchange for the purchase price.

Answer 823

A mortgage by which the seller finances all or part of the sales price for the buyer.

Answer 824

The amount paid for a property.

Answer 825

A method to determine the cost of a building by specifying the number of materials used.

Answer 826

Use and possession of real property without interference.

Answer 827

A court action to remove a cloud on the title.

Answer 828

A deed that grants any interest in property that the grantor may have without making any promises; often used to clear clouds on title.

Answer 829

A heating device consisting of a series of connected pipes, typically inside an upright metal structure, through which steam or hot water is circulated.

Answer 830

A naturally occurring radioactive gas that emanates from the earth; odorless, colorless, and tasteless and the second leading cause of lung cancer in the U.S.

Answer 831

The six-mile distance between range lines.

Answer 832

A line that runs parallel to a principal meridian, marking the land into six-mile strips known as ranges and numbered east or west of a principal meridian.

Answer 833

composite returns.

Answer 834

The actual physical land and everything, both natural and man-made, that is attached (or appurtenant) to it.

Answer 835

General swings in real estate activity, resulting in increasing or decreasing activity and property values; may be caused by economic or annual trends.

Answer 836

A company that owns and often operates income producing real estate; it is organized as a trust with the investors as the beneficiaries.

Answer 837

The mechanism by which rights and interests in real estate are sold, prices set, supply adjusted to demand, space allocated among competing alternate uses, and land use patterns set.

Answer 838

Property acquired by a lending institution through foreclosure and held in inventory.

Answer 839

Federal law, implemented by Regulation X, regarding real estate closings; provides specific procedures and guidelines for the disclosure of settlement costs.

Answer 840

The physical land and everything attached to it, and the rights of ownership (bundle of rights) in the real estate.

Answer 841

Any real estate licensee who is a member of the National Association of REALTORS® (NAR) and affiliated state/local boards.

Answer 842

Any change in practices (e.g., rules, services, policies) that enables a qualified individual with a disability to enjoy equal opportunities.

Answer 843

A structural change that is made to allow persons with disabilities the full enjoyment of the housing and related facilities.

Answer 844

A fiduciary duty that requires agents to protect clients from foreseeable harm, act in accordance with the high standards set by their profession, and perform their duties as promised.

Answer 845

A court-appointed person who is charged with preserving a property, collecting rents, and doing anything necessary to maintain the property's condition.

Answer 846

A period of temporary economic decline, generally identified by two successive quarters of a reduction in gross domestic product.

Answer 847

The recognition that states give whereby a licensee of one state can be involved in real estate transactions in other states.

Answer 848

An element in a deed that identifies how and when the grantor took title to the property.

Answer 849

The analysis and weighting of the values arrived at from the different appraisal approaches to arrive at a final opinion of value.

Answer 850

Fees charged for filing documents at the county recorder’s office so that they become part of the public record.

Answer 851

A loan in which, in the event of default, the lender can take action against the borrower personally in addition to foreclosing on the property.

Answer 852

Method of land description used in about 30 states based on imaginary lines of longitude (meridians) and latitude (baselines).

Answer 853

The right of a mortgagor (borrower) to remedy a loan default within a specified time and receive the property back.

Answer 854

A lender’s illegal decision to deny mortgage loans in certain neighborhoods, based on the neighborhood’s racial or ethnic composition.

Answer 855

A deed issued by the court to a property buyer from a bankruptcy sale.

Answer 856

Any oral or written action directed to a person that has the effect of affirmatively influencing the selection of a provider of a settlement service or business.

Answer 857

A fee paid from one employing broker to another employing broker for directing a buyer or seller to a real estate agent in that brokerage.

Answer 858

An extension of the existing financing either through the same lender or through a new financial arrangement.

Answer 859

Changes or modifications to a contract by a court to reflect the true intention of the parties.

Answer 860

A principle that says the value of a superior property is negatively affected when it is surrounded by inferior properties.

Answer 861

The rules implementing the Truth in Lending Act that require borrowers to be shown how much they will pay for credit in dollars and percentages.

Answer 862

When a body of water gradually recedes, exposing land that was previously underwater.

Answer 863

A future interest in real property that becomes possessory when a life estate terminates.

Answer 864

A person, other than the grantor, who has a future interest in the fee estate when a life estate ends.

Answer 865

The period of usefulness that a building has remaining as of the effective date of the appraisal.

Answer 866

The act of stopping or reversing something specific, often environmental damage.

Answer 867

Consideration paid by a tenant to a landlord in exchange for possession and property use.

Answer 868

A report or spreadsheet listing key information about a property.

Answer 869

A compilation of the rents being generated in a particular market for a particular property type.

Answer 870

corridors, lobbies, and restrooms.

Answer 871

When someone who has been granted something or has accepted something later gives it up or rejects it.

Answer 872

Building the functional equivalent of the original building, using modern materials.

Answer 873

The cost of constructing a building that is the functional equivalent of the original building, using modern techniques and materials.

Answer 874

Building an exact duplicate of the original building, giving the new structure the exact same look and feel as the original.

Answer 875

The cost of constructing a building that is an exact replica of the original building.

Answer 876

A written list of items that the buyer asks the seller to repair prior to closing.

Answer 877

When a contract is terminated, and each party gives anything acquired under the contract back to the other party.

Answer 878

The percentage of customers' deposits that commercial banks are required to keep on deposit.

Answer 879

Cash on deposit or other highly liquid assets a borrower must have to cover two months of PITI mortgage payments.

Answer 880

An amount of money, considered as an operating expense, set aside for future replacement of major items.

Answer 881

Represents a property management firm and may live on the premises of the building being managed.

Answer 882

Requires sellers and landlords to disclose known lead paint hazards for homes built before 1978.

Answer 883

The amount of a borrower’s income remaining after subtracting taxes, housing expenses, and all recurring debts and obligations.

Answer 884

The return of consideration by both parties when a contract is rescinded.

Answer 885

A restriction on real property use imposed by a former owner; usually an owner’s promise to not use property in a particular way.

Answer 886

When a lessor attempts to remove a tenant in retaliation for complaining about code violations; generally illegal.

Answer 887

The protection of an investor’s equity in an investment.

Answer 888

The gain/profit an investor experiences from an investment relative to its cost to acquire.

Answer 889

A type of mortgage in which qualified homeowners aged 62 or older can convert equity in the home into cash.

Answer 890

A future interest that becomes possessory when a temporary estate terminates.

Answer 891

The person who has a future estate interest in reversion.

Answer 892

The termination of an offer by the offeror by withdrawing the offer before it is accepted.

Answer 893

An addition, amendment, or addendum to a document or contract.

Answer 894

A right to have the first chance to buy or lease property if the owner decides to sell or lease it.

Answer 895

An agreement to be given the first chance to buy or lease property after receiving a bona fide offer from a third party.

Answer 896

The legal ability to buy back one's property within the time specified after a judicial sale.

Answer 897

The right of a consumer to rescind any credit transaction involving their principal residence as collateral.

Answer 898

A characteristic of statutory survivorship tenancy; surviving co-tenants automatically acquire a deceased co-tenant’s interest in the property.

Answer 899

An easement giving the holder the right to cross another person’s land.

Answer 900

An individual positioned among auction attendees to spot bidders for the auctioneer.

Answer 901

Water rights of landowners whose land touches a natural body of flowing water.

Answer 902

The probability that events will not occur as expected.

Answer 903

The process of identifying potential hazards and threats and then implementing procedures to minimize their impacts.

Answer 904

Prerecorded marketing telephone calls delivered to a broad audience via an automated dialing system.

Answer 905

The deed or other document of transfer that was the first recorded.

Answer 906

Any type of interior work to a house or building that is not part of the finish work.

Answer 907

A settlement procedure conducted with all parties present.

Answer 908

A legal principle that grants a landowner the right to all oil and gas produced by wells on their land.

Answer 909

Rights, conditions, or restrictions associated with the property will pass from owner to owner when the land is conveyed.

Answer 910

A business entity that operates like a corporation but is treated like a partnership for tax purposes.

Answer 911

A provision of the federal Gramm-Leach-Bliley Act that requires financial institutions to protect personal customer information.

Answer 912

Mobile phone software that can be used for personal security.

Answer 913

A method for financing commercial properties in which a company sells the building to an investor and then leases it back.

Answer 914

An appraisal method that estimates the value of real property by performing a market analysis of comparable properties.

Answer 915

An agreement in which the buyer and seller agree to the terms and conditions of the sale of property.

Answer 916

A real estate licensee who works under the supervision of a broker.

Answer 917

The document a mortgagee gives the mortgagor acknowledging the debt has been paid in full.

Answer 918

An institution whose primary function is to promote thrift and homeownership.

Answer 919

A physical characteristic that indicates a limited supply of real estate.

Answer 920

A method of selling in which prospective buyers submit bids that are opened at a designated time.

Answer 921

A mortgage subordinate to a first mortgage.

Answer 922

A loan obtained in addition to a first mortgage.

Answer 923

Private investors and government enterprises and agencies that buy and sell mortgages.

Answer 924

A financial benefit that an agent takes from a transaction without authorization from the principal.

Answer 925

Part of a township, one-mile by one-mile square; one section equals 640 acres.

Answer 926

The basic FHA-insured fixed-rate, long-term financing program for the purchase of a one- to four-unit owner-occupied home.

Answer 927

A home financing program through the U.S. Department of Agriculture that guarantees loans made by approved private lenders.

Answer 928

A federal program that authorizes the payment of rental housing assistance to private landlords.

Answer 929

One section equals 640 acres and 36 sections equal one township.

Answer 930

The basic FHA-insured fixed-rate, long-term financing program for the purchase of a one- to four-unit owner-occupied home.

Answer 931

A home financing program through the U.S. Department of Agriculture that guarantees loans made by approved private lenders or makes direct loans if no local lender is available.

Answer 932

A federal program that authorizes the payment of rental housing assistance to private landlords on behalf of low-income households.

Answer 933

The act of pooling mortgages and then selling them as mortgage-backed securities.

Answer 934

An investment that creates a financial interest in a business with no management authority.

Answer 935

Money a tenant gives a landlord at the beginning of the tenancy to ensure compliance with lease terms.

Answer 936

The possession of a freehold estate; ownership.

Answer 937

When a fiduciary takes advantage of their position in a transaction and acts in their own interests.

Answer 938

Medicare tax and Social Security tax not paid by an employer.

Answer 939

When a lessor uses physical force, a lockout, or a utility shutoff to remove a tenant, generally illegal.

Answer 940

A licensee representing the interests of the seller of a property.

Answer 941

A situation where a large number of buyers are looking for housing in an area of limited availability.

Answer 942

The licensee who secures a buyer for a property.

Answer 943

A dog or miniature horse individually trained to perform tasks for an individual with a disability.

Answer 944

The process of collecting loan payments, keeping records, and handling defaults.

Answer 945

The owner of a property burdened by an easement.

Answer 946

Property burdened by an easement.

Answer 947

The minimum distance that a building must be from a designated position, such as a property line.

Answer 948

The person charged with coordinating the activities and documentation necessary for completing a real estate transaction.

Answer 949

Any service provided in connection with a prospective or actual settlement of a real estate transaction.

Answer 950

A detailed accounting of a real estate transaction showing cash received and disbursed.

Answer 951

One part of a contract can be held unenforceable without making the entire contract unenforceable.

Answer 952

Ownership by one person.

Answer 953

The process through which fixtures are detached from the land and revert back to personal property.

Answer 954

A co-op loan signifying a buyer is purchasing shares in a corporation.

Answer 955

A layer of boards applied to the outer studs to strengthen the structure.

Answer 956

A deed issued by the court to a property buyer from a foreclosure sale.

Answer 957

A foreclosure sale held after a judicial foreclosure.

Answer 958

A lender-approved sale from which the proceeds are not sufficient to cover the mortgage amount.

Answer 959

Touring properties with a buyer.

Answer 960

A tract of land prepared for construction.

Answer 961

The value of land with necessary enhancements for building.

Answer 962

A place where something exists; an area with preferred features.

Answer 963

A concrete foundation built directly on the ground.

Answer 964

Defamation of another’s character through spoken words.

Answer 965

A roof construction with joists angled up to allow for vaulted ceilings.

Answer 966

Online tools that allow users to create communities and share ideas.

Answer 967

A business owned and managed by one person who is personally liable for all debts.

Answer 968

The use of electronic messaging to send unsolicited bulk messages.

Answer 969

An agent authorized to perform a specific activity or transaction.

Answer 970

A tax levied against properties that benefit from a public improvement.

Answer 971

A deed where the grantor warrants against defects occurring after acquiring title.

Answer 972

A lien that attaches only to a particular parcel of property.

Answer 973

A legal remedy where a court orders a party to fulfill contract obligations.

Answer 974

Written documents detailing requirements for construction scope.

Answer 975

A group of people known to a salesperson likely to do business with them.

Answer 976

An illegal rezone that favors a particular property owner without justification.

Answer 977

A cost approach appraisal method for determining building cost.

Answer 978

A person who unlawfully occupies an uninhabited building or unused land.

Answer 979

Income that can reasonably be expected to continue in the future.

Answer 980

Someone with a vested interest in a project.

Answer 981

A policy that protects against clouds or problems with the title.

Answer 982

A law passed by a state legislature.

Answer 983

A law requiring certain contracts to be in writing and signed to be enforced.

Answer 984

A law requiring parties to file a lawsuit within a specified time after an event.

Answer 985

Workers that are subject to their broker’s supervision but not independent contractors for tax purposes.

Answer 986

Allows a borrower to redeem property after a foreclosure sale for a set period.

Answer 987

A way for borrowers to cure default by bringing the mortgage current before foreclosure action is filed.

Answer 988

A year treated as having 30 days per month, totaling 360 days.

Answer 989

Channeling buyers or tenants to or away from neighborhoods based on protected class.

Answer 990

A property undesirable due to a past event, such as a crime or death.

Answer 991

A non-amortized loan covering only interest over the term.

Answer 992

A method taking the total cost of a building and dividing it by its useful life.

Answer 993

A person used to apply for a loan under false pretenses as part of a fraud scheme.

Answer 994

A foreclosure action where the court sets a deadline for full payment or the lender receives title.

Answer 995

A vertical beam that serves to frame a structure.

Answer 996

An agent of an agent authorized to assist in carrying out the principal's orders.

Answer 997

Land divided into two or more parcels for development.

Answer 998

Property for which a value estimate is sought.

Answer 999

An agreement where a tenant transfers less than their entire leasehold estate to another person.

Answer 1000

A written agreement that changes the priority of mortgages and other liens.

Answer 1001

A clause giving a later recorded mortgage priority over an earlier recorded mortgage.

Answer 1002

Loans with more risks than allowed in the conforming market.

Answer 1003

When a promisor does enough of their obligations to require the promisee to fulfill their part.

Answer 1004

An informed buyer will not pay more for a property than a comparable alternative.

Answer 1005

Rights a landowner has to the land below the surface.

Answer 1006

A court action to enforce a legal claim or right.

Answer 1007

A lawsuit to determine who has title to a piece of property.

Answer 1008

An act that amended CERCLA, designated more money to the Superfund trust, and established new environmental laws.

Answer 1009

An economic principle stating that prices will fall when supply exceeds demand and rise when demand exceeds supply.

Answer 1010

The portion over what is necessary for the highest and best use of the subject property.

Answer 1011

The formal process of locating and measuring the boundaries of a property.

Answer 1012

A business planning technique that identifies strengths, weaknesses, opportunities, and threats.

Answer 1013

An association formed to operate an investment business.

Answer 1014

Successive periods of use or possession added together to meet state law requirements.

Answer 1015

A loan that provides permanent financing after construction is complete.

Answer 1016

The government’s unconstitutional condemnation of private property without just compensation.

Answer 1017

A temporary workgroup formed to accomplish a specific objective.

Answer 1018

The total tax-assessed value of all real property in a jurisdiction.

Answer 1019

The expensing of the cost of business property over a set number of years.

Answer 1020

The rate multiplied by the assessed value of property to determine property tax due.

Answer 1021

A percentage applied to a property’s market value to determine assessed value.

Answer 1022

Property or investments that provide certain income tax advantages.

Answer 1023

The right of government to require contributions from citizens for services.

Answer 1024

An inspection involving extensive measurements and testing beyond a normal home inspection.

Answer 1025

Possession by a tenant who stays on after the lease expires without permission.

Answer 1026

Possession with the owner’s permission but with no definite lease term.

Answer 1027

A form of property co-ownership by a married couple where each has an equal share.

Answer 1028

A leasehold that is automatically renewed for the same term as the original lease.

Answer 1029

A form of co-ownership where two or more persons have an undivided interest in the entire property.

Answer 1030

Ownership by a single person or legal entity.

Answer 1031

Someone in lawful possession of real property, especially someone who has leased property from the owner.

Answer 1032

A lessee who remains in possession of property after the lease has expired without permission.

Answer 1033

An unconditional offer by one party to perform that party’s part of a contract.

Answer 1034

A method of financing in which only interest is paid during the term of the loan, with the entire principal due at maturity.

Answer 1035

Refers to someone who has died and left a will.

Answer 1036

A person working with a fair housing organization who pretends to be interested in buying or renting property.

Answer 1037

An antitrust violation in which one transaction or agreement is contingent on a second transaction or agreement.

Answer 1038

A clause that makes failure to meet a stated deadline a material breach of the contract.

Answer 1039

A form of property ownership in which several buyers purchase an interest in the same estate.

Answer 1040

The actual, lawful ownership interest in a property; title is not a document but a concept.

Answer 1041

An entity that examines and insures title claims for real estate purposes.

Answer 1042

An insurance policy that protects against loss or damages due to defects in the title.

Answer 1043

A report issued by a title company disclosing the condition of the title to a specific piece of property.

Answer 1044

A thorough inspection of the public record to determine all rights and encumbrances affecting title.

Answer 1045

A property loan financing arrangement where the borrower does not keep the title during the loan term.

Answer 1046

An interest in property created upon the execution of a valid sales contract.

Answer 1047

The interest in property held by the rightful owner.

Answer 1048

A description of surface features of land.

Answer 1049

The causing of harm by disrupting something that belongs to someone else.

Answer 1050

The relationship of a borrower's total monthly debt to gross monthly income, expressed as a percentage.

Answer 1051

Property developed for co-ownership where each co-owner has a separate fee simple interest.

Answer 1052

A square division of land, six miles by six miles, in the rectangular survey system.

Answer 1053

East-west lines that run parallel to baselines in the rectangular survey system.

Answer 1054

An item of personal property that is annexed to leased property and may be removed by the tenant.

Answer 1055

An agency relationship where the seller is the only client.

Answer 1056

A brokerage relationship where a licensee provides only administrative services to buyers and sellers.

Answer 1057

A tax levied when real property changes ownership from one person to another.

Answer 1058

The ability to freely buy, sell, encumber, or dispose of property.

Answer 1059

The TILA-RESPA Integrated Disclosure rule for standardized consumer-friendly disclosure documents.

Answer 1060

A word or phrase that describes a loan, requiring disclosures if used in advertising.

Answer 1061

A lease in which the tenant pays all expenses associated with owning the property.

Answer 1062

The amount of property tax assessed against a specific property before exemptions.

Answer 1063

A framework of rafters, posts, and beams that forms the support for a roof.

Answer 1064

A legal arrangement where title to property is managed by trustees for the beneficiaries.

Answer 1065

A separate account maintained by a broker for the deposit of a client’s money.

Answer 1066

Funds held on behalf of another, such as an earnest money check.

Answer 1067

A person appointed to manage a trust on behalf of the beneficiaries.

Answer 1068

A deed executed by a trustee transferring title from the trust to a successful bidder.

Answer 1069

A nonjudicial foreclosure sale under a deed of trust.

Answer 1070

The property owner who grants a trust to a third party for the benefit of someone else.

Answer 1071

A federal act designed to promote informed use of consumer credit through proper disclosure.

Answer 1072

A person not licensed as an attorney performing acts that may only be performed by an attorney.

Answer 1073

A receptacle used to store substances that is at least 10% underground.

Answer 1074

A home purchase loan that has a higher balance than the market value of the property.

Answer 1075

An individual who evaluates a loan application to determine its risk level.

Answer 1076

A lender’s process of evaluating and deciding whether to make a new loan.

Answer 1077

A situation where one licensee represents both buyer and seller without informed consent.

Answer 1078

A co-tenant’s interest giving the right to possession of the whole property.

Answer 1079

When a person in a fiduciary capacity misuses trust to unfairly induce a party into a contract.

Answer 1080

An increase in property value through no efforts of the property owner.

Answer 1081

Property that is free and clear of any liens.

Answer 1082

A contract that a court would refuse to enforce.

Answer 1083

An activity that causes substantial consumer injury that a consumer could not reasonably avoid.

Answer 1084

A general set of laws providing uniformity and fairness in commercial transactions.

Answer 1085

The valuation reporting document most commonly used by lenders and appraisers.

Answer 1086

A standardized form required by lenders to gather pertinent information from borrowers.

Answer 1087

Professional appraisal standards recognized throughout the United States.

Answer 1088

A contract in which only one party makes a binding promise to another party.

Answer 1089

A cost approach appraisal method estimating the cost of reproducing a building.

Answer 1090

A unity of ownership where each co-owner has an equal share of ownership in a property.

Answer 1091

A unity of ownership where co-owners are considered a single legal entity.

Answer 1092

A unity of ownership where each co-owner is entitled to possession of the entire property.

Answer 1093

A unity of ownership where each co-owner acquires title simultaneously.

Answer 1094

A unity of ownership where each co-owner acquires ownership interest through the same instrument.

Answer 1095

An agent authorized to do everything that can be lawfully delegated to a representative.

Answer 1096

A benefit without valid basis or justification at the expense of another.

Answer 1097

A legal action to regain possession of real property.

Answer 1098

A member of a real estate team that can help with administrative tasks but not licensed activities.

Answer 1099

Business practices that mutually restrict access or limit competition.

Answer 1100

A loan made on the signature and credit of the borrower, not secured by collateral.

Answer 1101

Design addressing both the appearance and function of various urban features.

Answer 1102

The process of creating a blueprint to guide the future development of a community.

Answer 1103

The acquisition of certain areas by government action for redevelopment.

Answer 1104

A potentially toxic chemical used in manufacturing building materials.

Answer 1105

A type of insulation that can be blown in or injected in hard-to-access areas.

Answer 1106

The space actually available and usable for a tenant’s personnel and equipment.

Answer 1107

A program that guarantees loans for various housing-related expenses.

Answer 1108

Allows landowners to use their land in a way not permitted under current zoning laws.

Answer 1109

Charging a higher interest rate than the law allows.

Answer 1110

The ability of a good or service to satisfy human wants, needs, or desires.

Answer 1111

A home financing option available to eligible veterans through the Department of Veterans Affairs.

Answer 1112

A contract that meets all legal requirements for contract formation.

Answer 1113

Consideration that has monetary value.

Answer 1114

The present worth of future benefits of property ownership.

Answer 1115

The value of a property as it is presently being used.

Answer 1116

A material used to reduce the flow of water vapor.

Answer 1117

Operating expenses necessary to the property, dependent on occupancy level.

Answer 1118

A type of loan where the interest rate varies according to an external index.

Answer 1119

A permit allowing the holder to use property in a way that deviates from zoning ordinances.

Answer 1120

The buyer in a land contract.

Answer 1121

A lien held by the purchaser for the purchase price paid if the seller defaults.

Answer 1122

The seller in a land contract.

Answer 1123

A system that draws fresh air into a structure and removes stale air.

Answer 1124

A form sent by a bank to a lender verifying the borrower's accounts.

Answer 1125

The legal concept that a principal can be held responsible for wrongful acts of their agent.

Answer 1126

A negative easement preventing a tenant from adding anything that affects another's view.

Answer 1127

A formula used to derive the appropriate multiplier from transaction data.

Answer 1128

A survey where respondents evaluate various design options depicted visually.

Answer 1129

A contract that isn’t enforceable due to lack of requirements for contract formation.

Answer 1130

A contract that one party can end without liability due to factors like fraud.

Answer 1131

Electric potential.

Answer 1132

M = V (Sales Price) / I (Gross Income) ## Footnote This formula is used in real estate to analyze the relationship between sales price and gross income.

Answer 1133

A type of survey in which respondents evaluate various design options as depicted in drawings, photographs, or other visual representations. ## Footnote Useful in design and planning to gauge public opinion.

Answer 1134

A contract that isn’t enforceable because it lacks one or more of the requirements for contract formation or is otherwise defective. ## Footnote Examples include contracts for illegal activities.

Answer 1135

A contract that one of the parties can end without liability because of a lack of legal capacity or other factors such as fraud or duress. ## Footnote Often involves minors or mentally incapacitated individuals.

Answer 1136

A measure of electric potential; the energy that could be released if the electric current is allowed to flow. ## Footnote Measured in volts (V).

Answer 1137

When title to property is transferred voluntarily through a sale, gift, dedication, or grant. ## Footnote Opposite of involuntary alienation.

Answer 1138

A lien placed against property with the consent of the owner, e.g., a mortgage or deed of trust. ## Footnote Commonly used to secure loans.

Answer 1139

The part of the auctioneer’s chant that asks for an amount of the next bid. ## Footnote Essential for the auction process.

Answer 1140

The process of gathering loans together for sale to investors in the secondary market. ## Footnote Important for liquidity in the mortgage market.

Answer 1141

A deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premises against the lawful claims of third parties. ## Footnote Provides the highest level of protection to the grantee.

Answer 1142

A guarantee in a deed that the grantor promises to compensate the buyer if title is not good. ## Footnote Ensures buyer protection against title issues.

Answer 1143

The actions of a life tenant who uses the property in a way that damages it or reduces its market value. ## Footnote Can lead to legal action from remaindermen.

Answer 1144

The rights of a landowner to water adjoining or passing through property. ## Footnote Essential for agricultural and residential use.

Answer 1145

The distance from ground level to natural groundwater. ## Footnote Affects construction and agricultural practices.

Answer 1146

The lessening in value of an asset due to ordinary and normal use. ## Footnote Considered in property valuations.

Answer 1147

An ecosystem where the land is permeated with water, which either lies on or near the surface of the land; an environment where specialized plants, aquatic species, and wildlife live. ## Footnote Critical for biodiversity and ecological balance.

Answer 1148

A legal declaration in which a person disposes of property to take effect upon their death. ## Footnote Must be executed according to state laws to be valid.

Answer 1149

A financing arrangement in which an existing loan on a property is retained while the lender gives the borrower another, larger loan. ## Footnote Useful for buyers who cannot qualify for a new loan.

Answer 1150

A court order to an officer to carry out judicial decree. ## Footnote Often used to enforce judgments.

Answer 1151

The interest earned by an investor on the investment. ## Footnote Typically expressed as a percentage.

Answer 1152

A tool that mortgage brokers can use to lower the upfront closing costs for a borrower. ## Footnote Can affect the overall cost of a mortgage.

Answer 1153

Government regulation of the uses of property within specified areas. ## Footnote Ensures orderly development and land use.

Answer 1154

Local laws that divide a city or county into different areas or zones and determine how land can be used and the specific requirements for compliance. ## Footnote Key for urban planning and development.

Real Estate Dictionary Flashcards

(1180 cards)