vocabulary

Question 1

Mixing escrow funds with personal funds

Answer 1

Commingling

Question 2

Using escrow funds for unauthorized purposes

Answer 2

Conversion

Question 3

established citizenship for African Americans, prohibited discrimination against them, and protected their rights to property and due process

Answer 3

Civil Rights Act of 1866

Question 4

this act added gender to the list of protected classes.

Answer 4

The Housing and Community Development Act

Question 5

the denial of loans or other credit services to people who live in certain neighborhoods because they are “risky”.

Answer 5

Redlining

Question 6

a real estate practice where a buyer intentionally scares homeowners into selling their properties at low prices

Answer 6

Blockbusting

Question 7

a real estate practice that involves influencing a buyer’s choice of neighborhood based on their race, religion, or other protected characteristic.

Answer 7

steering

Question 8

what is the abbreviation for Office of Fair Housing and Equal Opportunity

Answer 8

FHEO

Question 9

a shared database of real estate data and information. Not only can you list properties for sale, you can view property details, historical sales data, tax records, demographic information, maps to property locations, statistical data for property sales over time, and other valuable information.

Answer 9

MLS (multiple listing service)

Question 10

The largest, most popular site for online video viewing and sharing is

Answer 10

YouTube

Question 11

what is puffing

Answer 11

the exaggeration of material facts to increase the perceived value of a property

Question 12

what is Negligent misrepresentation

Answer 12

Making a statement the licensee should have known was false

Question 13

what is omission

Answer 13

when important information is left out or not disclosed

Question 14

what is a ad that is misleading, deceptive, or discriminates against protected groups

Answer 14

unfair ad

Question 15

The Earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

Answer 15

land

Question 16

Land, plus all things permanently attached to it naturally or artificially

Answer 16

real estate

Question 17

Real estate, plus the interests, benefits, and rights automatically included with real estate ownership

Answer 17

real property

Question 18

Permanent, man-made attachments that include things such as fencing, buildings, and walkways

Answer 18

improvements

Question 19

As you know, the definition of real property includes interests, benefits, and rights. Can you identify what the rights are?

Answer 19

Enjoyment
Disposition
Possession
Control
Exclusion

Question 20

Right to occupy the property

Answer 20

possession

Question 21

Right to determine how others may use the property

Answer 21

control

Question 22

Right to (legally) use the property however the owner desires

Answer 22

enjoyment

Question 23

Right to refuse others access to your property

Answer 23

exclusion

Question 24

Right to determine how, when, and whether the property is to be sold, leased, mortgaged, or transferred

Answer 24

Disposition

Question 25

Another word for personal property

Answer 25

chattel

Question 26

Growing crops, such as decorative trees or corn, which are produced annually; usually not considered fixtures, but are the personal property of the person who planted them

Answer 26

emblements

Question 27

what dose M.A.R.I.A stand for

Answer 27

Method of annexation Adaptability Relationship of the parties Intention Agreement of the parties

Question 28

(also known as attachment) refers to whether the item is attached to the property and how permanent the attachment is

Answer 28

annexation

Question 29

nonhomogeneity

Answer 29

Uniqueness, the inability to exactly replicate something.

Question 30

what is a professional on-site measurement of a property's lot lines and dimensions, including the location of any improvements (such as a house) on the lot, any encroachments that may exist, and any easements of public record.

Answer 30

A survey

Question 31

what is it that describes property boundaries using precise locations, distances, and compass directions.

Answer 31

Metes and bounds

Question 32

what is A legal description that refers to a lot and block number within a subdivision as indicated on a recorded subdivision plat Ex. When April looked up her tax record, it included the lot-and-block legal description of her property, which read in part: "Lawndale, Block 4, Lot 6."

Answer 32

Lot and blocks

Question 33

A limitation on a property title, such as a lien or easement

Answer 33

encumbrance

Question 34

The illegal intrusion of some structure or object across a property boundary line

Answer 34

encroachment

Question 35

The authorized use of another's property for a specific purpose;

Answer 35

easement

Question 36

Are CC&Rs put in place by a Homeowner's Association a form of encumbrance.

Answer 36

yes

Question 37

An abstract of title documents the chain of title research and provides an attorney's opinion of the state of the title or summary overview of the property's previous ownership history.

Answer 37

abstract of title

Question 38

What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller?

Answer 38

purchase money morgatge

Question 39

A licensee is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? 10% down payment 30-year fixed rate with no points A monthly payment of $900 Get a low 4.925% APR

Answer 39

D An ad can show the APR without disclosing all the other credit terms. But if certain other “trigger” terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure.

Question 40

The technique of expressing potential income as current value.

Answer 40

Capitalization

Question 41

rate of return for an investment expressed as a ratio of net operating income to property value.

Answer 41

Capitalization rate

Question 42

The income over and above expenses received from an investment.

Answer 42

cash flow

Question 43

Income before expenses are deducted.

Answer 43

gross income

Question 44

Income after expenses have been deducted.

Answer 44

net income

Question 45

The value of an income property at resale or at the end of a lease period.

Answer 45

reversion

Question 46

The amount of money returned from an investment.

Answer 46

yield

Question 47

The amount of rent stipulated in a lease. Synonymous with scheduled rent.

Answer 47

contract rent

Question 48

he amount of rent that is typical in the market for comparable property; synonymous with market rent.

Answer 48

economic rent

Question 49

The amount of income a property is estimated to make after deducting vacancy and collection losses from potential gross income.

Answer 49

effective gross income

Question 50

The long-term trends of rents for comparable types of property.

Answer 50

historical rent

Question 51

The amount of rent that is typical in the market for comparable property; synonymous with economic rent.

Answer 51

market rent

Question 52

Income projected after deducting losses for vacancy, collection loss, and operating expenses.

Answer 52

net operating income

Question 53

The amount of income a property can produce if it is fully occupied and earning market rent.

Answer 53

potentential gross income

Question 54

The amount of rent stipulated in a lease; synonymous with contract rent.

Answer 54

scheduled rent

Question 55

The expected vacancy rate and losses from unpaid and uncollectable rent, usually expressed as a percentage of potential gross income.

Answer 55

Vacancy and collection losses

Question 56

A method of accounting that records income when earned (rather than when received) and records expenses when incurred (

Answer 56

Accrual basis accounting

Question 57

A method of accounting that records income when received (rather than when earned) and records expenses when paid

Answer 57

cash basis accounting

Question 58

An amount of money identified to cover the annual cost of repairing or replacing equipment and systems.

Answer 58

reserves for replacement

Question 59

Expenses that vary depending on another factor such as occupancy level.

Answer 59

variable expenses

Question 60

Divide the sale price of a comparable property by its gross rental income. Use the result on the subject property to determine a value.

Answer 60

GRM

Question 61

Divide the sale price of a comparable property by its total gross income. Use the result on the subject property to determine a value.

Answer 61

GIM

Question 62

Calculate the projected net operating income for a property over the next year, then apply a capitalization rate.

Answer 62

Direct capitalization

Question 63

Apply an expected rate of return to income from the entire holding period to find the current property value.

Answer 63

Yield capitalization

Question 64

GRM and GIM are used primarily for residential properties, while direct capitalization is appropriate for a commercial property that has a stable income. _______ capitalization is more appropriate for very large properties or properties where the leases fluctuate.

Answer 64

Yield