Study

Question 1

The CONDENSED HISTORY OF A TITLE TO A PARTICULAR PARCEL OF REAL ESTATE, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

Answer 1

Abstract of Title

Question 2

The clause in a mortgage or deed of trust that can be enforced to make the ENTIRE DEBT DUE IMMEDIATELY if the borrower defaults on an installment payment or other covenant.

Answer 2

Acceleration Clause

Question 3

Acquiring title to additions or improvements to real property as a result of ANNEXATION of fixtures.

Answer 3

Accession

Question 4

The INCREASE or ADDITION of land by the deposit of SAND, OR SOIL washed up naturally from a river, lake, or sea.

Answer 4

Accretion

Question 5

On a CLOSING STATEMENT, items of expense that are incurred but not yet payable, such as INTEREST ON A MORTGAGE LOAN or taxes on real property.

Answer 5

Accrued Item

Question 6

A formal DECLARATION made before a duly authorized officer, usually a notary public, by a person who has signed a document.

Answer 6

Acknowledgment

Question 7

The legal process that results in the tenants being physically removed from the leased premises.

Answer 7

Actual Eviction

Question 8

Express information or fact; that which is KNOWN; direct knowledge

Answer 8

Actual Notice

Question 9

Any provision ADDED to an EXISTING contract without altering the CONTENT of the ORIGINAL; it must be signed by all parties.

Answer 9

Addendum

Question 10

The designated ADDRESS recorded by the Department in the applicant’s application or license file as maintained by the Department.

Answer 10

Address of Record

Question 11

A LOAN characterized by a FLUCTUATING INTEREST RATE,

Answer 11

Adjustable Rate Mortgage (ARM)

Question 12

The actual, open, notorious, hostile, and CONTINUOUS POSSESSION of another’s land under a CLAIM of right. (Possession for a statutory period may be a means of ACQUIRING title. In Illinois it’s 20 years)

Answer 12

Adverse Possession

Question 13

A WRITTEN STATEMENT, made under oath by a SELLER or GRANTOR of real property an acknowledged by a notary public, in which the grantor certifies that since the examination of the title on the date of the contract no defects have occurred in the title.

Answer 13

Affidavit of Title

Question 14

The relationship between a PRINCIPAL and an AGENT wherein the agent is authorized to represent the principal in certain transactions.

Answer 14

Agency

Question 15

An AGENCY RELATIONSHIP in which the agent is given an estate or INTEREST in the subject of the agency (the property).

Answer 15

Agency coupled with an INTEREST

Question 16

One who acts or has the POWER to act for another. (A fiduciary relationship is created.)

Answer 16

Agent

Question 17

The right to use the open space ABOVE a property.

Answer 17

Air Rights

Question 18

LEGISLATION that PROHIBITS DISCRIMINATION against the physically or mentally impaired as it relates to employment opportunities or public ACCOMMODATIONS.

Answer 18

Americans with Disabilities Act (ADA)

Question 19

A LOAN in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.

Answer 19

Amortized Loan

Question 20

Method of converting PERSONAL PROPERTY into REAL PROPERTY.

Answer 20

Annexation

Question 21

The total finance charges associated with a loan that must be disclosed to borrowers by lenders under the TRUTH IN LENDING ACT.

Answer 21

Annual Percentage Rate (APR)

Question 22

LAWS designed to preserve the free enterprise of the open marketplace by making illegal certain private CONSPIRACIES to minimize competition. (price fixing; Group boycotting; Allocating customers or markets; Tie-in Agreements)

Answer 22

Anti-Trust Laws

Question 23

The person who APPLIES to the “Department” (IDFPR) for a valid license as a managing broker, broker, or residential leasing agent.

Answer 23

Applicant

Question 24

An ESTIMATE of the quantity, quality or value of property using cost approach, sales approach, income approach.

Answer 24

Appraisal

Question 25

An independent person trained to provide value of property using cost, sales and income approach.

Answer 25

Appraiser

Question 26

An INCREASE in the worth or value of property

Answer 26

Appreciation

Question 27

The way a taxing body actually AUTHORIZES the expenditure of funds and provides for the sources of the funding.

Answer 27

Appropriation

Question 28

A RIGHT, PRIVILEGE OR IMPROVEMENT belonging to, and PASSING WITH THE LAND.

Answer 28

Appurtenance

Question 29

An EASEMENT that is ANNEXED to the OWNERSHIP of one parcel of land and ALLOWS another owner the use of the NEIGHBOR'S land.

Answer 29

Appurtenant Easement

Question 30

The combining of two or more adjoining lots into one larger tract to increase their total value.

Answer 30

Assemblage

Question 31

When a tax or a charge or a levy is imposed (usually according to established rates).

Answer 31

Assessment

Question 32

The transfer IN WRITING of interest and rights in a mortgage or lease, etc.

Answer 32

Assignment

Question 33

Acquiring TITLE TO PROPERTY on which there is an EXISTING MORTGAGE and agreeing to be PERSONALLY LIABLE for the terms and conditions of the mortgage, INCLUDING THE PAYMENTS.

Answer 33

Assumption of Mortgage

Question 34

An ABSTRACT OF TITLE that an ATTORNEY has EXAMINED and has certified to be, in his OPINION, an accurate statement of the facts concerning the property ownership.

Answer 34

Attorney's Opinion of Title

Question 35

The sudden TEARING AWAY of LAND, as by earthquake, flood, etc.

Answer 35

Avulsion

Question 36

A final payment of a mortgage loan that is considerably larger than the required payments at the end of the loan.

Answer 36

Balloon payment

Question 37

A DEED that carries with it no warranties against liens or other encumbrances but DOES imply that the GRANTOR has the right to convey title.

Answer 37

Bargain and Sale Deed

Question 38

The main IMAGINARY line running east and west.

Answer 38

Base Line

Question 39

A contract where all parties are legally bound to act as prescribed.

Answer 39

Bi-Lateral Contract

Question 40

A LEGAL document that TRANSFERS PERSONAL PROPERTY.

Answer 40

Bill of Sale

Question 41

A mortgage covering more than ONE parcel of real estate, providing for EACH parcel's partial RELEASE from the mortgage lien on repayment of a definite portion of the debt.

Answer 41

Blanket Loan

Question 42

An advertisement whereby the sponsoring broker's name is NOT identified in the advertisement.

Answer 42

Blind Ad

Question 43

The ILLEGAL practice of inducing homeowners to sell their properties by making representations regarding the entry of persons of a particular race or origin into the neighborhood.

Answer 43

Blockbusting (Panic Selling)

Question 44

Violation of ANY terms or conditions in a contract without legal excuse.

Answer 44

Breach

Question 45

One who acts as an intermediary on behalf of others for a FEE or COMMISSION.

Answer 45

Broker

Question 46

A WRITTEN AGREEMENT between a SPONSORING BROKER and a consumer for license activities to be provided to a consumer in return for compensation.

Answer 46

Brokerage Agreement (It's the SPONSORING BROKER'S company)

Question 47

The concept of land ownership that includes ownership of all legal rights to the land.

Answer 47

Bundle of Rights

Question 48

A financing technique used to reduce the monthly payments for the first few years of the loan by using discount points.

Answer 48

Buydown

Question 49

A PRINCIPAL-AGENT relationship in which the SPONSORING BROKER is the agent for the BUYER which means he has a fiduciary responsibilities to the BUYER.

Answer 49

Buyer Agency Agreement

Question 50

Establishes requirements for commercial EMAIL, spells out penalties for email senders, and gives consumers the right to have emailers stop sending emails to them.

Answer 50

CAN-SPAM ACT OF 2003

Question 51

Profits earned from the SALE of an asset.

Answer 51

Capital Gain

Question 52

A mathematical process for ESTIMATING the value of PROPERTY using a proper RATE OF RETURN on the investment and the annual NET OPERATING INCOME expected to be produced by the property. (Net income / rate = value)

Answer 52

Capitalization

Question 53

The RATE OF RETURN a property WILL produce on the owner's investment.

Answer 53

Capitalization Rate

Question 54

The process of laying 2 to 4 feet of soil over the TOP of a LANDFILL and then planting grass on it to enhance the landfill's aesthetic value and prevent erosion.

Answer 54

Capping

Question 55

The net spendable income from an investment after you deduct all operating and fixed expenses from the gross income.

Answer 55

Cash Flow

Question 56

A permit issued by the appropriate local governing body to establish that the property is suitable for habitation.

Answer 56

Certificate of Occupancy

Question 57

A form indicating the APPRAISED VALUE of property being financed with a VA Loan.

Answer 57

Certificate of Reasonable Value

Question 58

The document generally given to the purchaser of DELINQUENT PROPERTY TAXES at a tax foreclosure sale.

Answer 58

Certificate of Sale

Question 59

A STATEMENT OF OPINION on the status of the title based on an examination of specified PUBLIC RECORDS.

Answer 59

Certificate of Title

Question 60

The SUCCESSION of conveyances, whereby the present holder of real property derives title.

Answer 60

Chain of title

Question 61

Items of PERSONAL PROPERTY (chairs, tables, Trade Fixtures, etc.)

Answer 61

Chattles

Question 62

A person who is being REPRESENTED by a licensee. (AKA the principal.)

Answer 62

Client

Question 63

The point at which ownership of a property is transferred in exchange for the selling price.

Answer 63

Closing

Question 64

A DETAILED CASH ACCOUNTING of a real estate transaction showing all cash received, all charges and credits and all cash paid out in the transaction.

Answer 64

Closing Statement

Question 65

Any document, claim, UNRELEASED LIEN, or ENCUMBRANCE that may IMPAIR THE TITLE to real property.

Answer 65

Cloud on Title

Question 66

A CLAUSE in INSURANCE POLICIES covering real property requiring the policyholder maintain fire insurance coverage generally equal to or at 80% of the property's actual replacement cost.

Answer 66

Co-Insurance Clause

Question 67

Something having VALUE that is given to secure repayment of a debt.

Answer 67

Collateral

Question 68

The ILLEGAL act by a real estate licensee of MINGLING client funds with their own personal funds.

Answer 68

Co-Mingling

Question 69

Payment to a licensee for services rendered such as in the sale of real property.

Answer 69

Commission

Question 70

The traditional LAW governing the principal-agent relationship, superseded by the statute in Illinois.

Answer 70

Common Law of Agency

Question 71

A system of property ownership based on the THEORY ACT that EACH spouse has an EQUAL interest in the property acquired by the efforts of EITHER SPOUSE DURING THE MARRIAGE.

Answer 71

Community Property

Question 72

A property used in an appraisal report that is substantially equivalent to the subject property.

Answer 72

Comparable

Question 73

A comparison of the prices of recently sold homes that are similar to a subject property.

Answer 73

Comparative Market Analysis (CMA)

Question 74

A detailed PLAN to guide the LONG-TERM PHYSICAL DEVELOPMENT of a particular area.

Answer 74

Comprehensive Plan

Question 75

A JUDICIAL proceeding to exercise the power or eminent domain.

Answer 75

Condemnation (that's what the process is called)

Question 76

The ABSOLUTE OWNERSHIP of a unit in a multi-unit building.

Answer 76

Condominium

Question 77

The appraisal principle holding that the great the SIMILARITY among properties in an area, the better they will hold their value.

Answer 77

Conformity

Question 78

Something received by the GRANTOR in exchange for his deed. Something of value that induces a person to enter in to a contract.

Answer 78

Consideration

Question 79

A SHORT-TERM LOAN usually made during the CONSTRUCTION phase of a building project.

Answer 79

Construction Loan.

Question 80

Actions of a landlord that so materially DISTURB a tenant's enjoyment of the leased premises that the tenant is forced to move out and terminate the lease WITHOUT liability for any further rent. (broken stove; broken faucets)

Answer 80

Constructive Eviction