a. acre k. informal references
b. adaptation l. nonhomogenity
c. agreement m. personal property
d. appurtenance n. quadrangle
e. base line o. real estate
f. bench marks p. recorded plat
g. datum q. scarcity
h. fixity r. situs
i. government survey s. vertical land descriptions
j. improvements t. water table
1> any form of land development, such as buildings, roads, fences, and pipelines
2> fixed mark of known location and elevation
3> type of measurement necessary when air rights need to be described
4> a subdivision map filed in the county recorder’s office
5> the shortage of land in an area where there is a great demand for land
6> a point, line, or surface from which a vertical height or depth is measured
7> manner in which a specific item is custom made to adapt to a certain piece of real
estate
8> a right or interest in things of a temporary or movable nature
9> a parcel of land containing 43,560 square feet
10> upper limit of percolating water below the earth’s surface
11> the fact that no two parcels of land are exactly alike
12> location preference
13> the fact that land and buildings require long periods of time to pay for themselves
14> land and improvements in a physical sense as well as the rights to own and use
them
15> right or privilege or improvement that belongs to and passes with the land
16> easily understood but not precise method of land description
17> possibly the most significant test of the existence of a fixture
18> latitude line that intercepts a principal meridian
19> also known as rectangular survey or U.S. public land survey
20> 24-by-24 mile area created by the guide meridians and correction lines.
a. allodial system k. fee simple
b. chattel l. feudal system
c. common law m. freehold estate
d. community property n. homestead protection
e. consequential damages o. lessor
f. deed restrictions p. life estate
g. easement q. periodic tenancy
h. eminent domain r. police power
i. encroachment s. property taxes
j. encumbrance t. severance damages
1> the right of government to take privately held land for fair compensation
2> the conveyance of fee title for the duration of someone’s life
3> an award to a property owner whose land is not taken but which suffers because of a
nearby public land use
4> taxes levied against privately held land based on its value
5> the landlord or fee owner
6> an article of personal property
7> the right of government to enact law and enforce them for the order, safety, health,
morals, and general welfare of the public
8> an estate in land that is held in fee or for life
9> compensation for the loss in market value that results from splitting up a property in
condemnation proceeding
10> the largest, most complete bundle of rights one can hold in land, land ownership
11> a tenancy that provides for continuing automatic renewal until canceled
12> law that develops from custom and usage over long periods of time
13> all land ownership rests in the name of the king
14> one in which individuals are given the right to own land
15> provisions placed in deeds to control how future landowners may or may not use
the property
16> state laws that protect against the forced sale of a person’s home
17> the right or privilege one party has to use land belonging to another for a special
purpose
18> any impediment to a clear title such as a lien, lease or easement
19> the unauthorized intrusion of a building or other improvement onto another
person’s land
20> spouses are treated as equal partners with each owning a one-half interest
a. allodial system k. fee simple
b. chattel l. feudal system
c. common law m. freehold estate
d. community property n. homestead protection
e. consequential damages o. lessor
f. deed restrictions p. life estate
g. easement q. periodic tenancy
h. eminent domain r. police power
i. encroachment s. property taxes
j. encumbrance t. severance damages
a. community property k. right of survivorship
b. concurrent ownership l. S corporation
c. estate in severalty m. separate property
d. general partnership n. tenancy by the entirety
e. illiquidity o. tenants in common
f. inter vivos trust p. undivided interest
g. joint tenancy q. unity of interest
h. limited liability company r. unity of possession
i. limited partnership s. unity of time
j. poor man’s will t. unity of title
1> composed of general partners who mainly organize and operate the partnership and
limited partners who provide the capital
2> a form of joint ownership with the right of survivorship which is reserved for
married persons
3> the joint tenants must enjoy the same undivided possession of the whole property
4> provides the liability protection of a corporation with profit-and-loss pass-through of
a partnership
5> husband and wife share equally in any property purchased during marriage
6> takes effect during the life of its creator
7> a label given to joint tenancy because of its right of survivorship feature
8> joint tenants must acquire their interests from the same source i.e., the same deed or
will
9> a method of combining the capital and expertise of two or more persons, each
retaining financial liability
10> organization of members or managers with little formal organization and limited
liability
11> ownership by two or more persons at the same time
12> each joint tenant must acquire his or her ownership interest at the same moment
13> owned by one person; sole ownership
14> surviving joint tenants automatically acquire all the rights of the deceased joint
tenant
15> each joint tenant has exactly the same rights as all other joint tenants
16> property acquired before marriage in a community property state
17> the possibility that it may be difficult to sell one’s partnership interest on short
notice
18> form of property co-ownership that features the right of survivorship
19> shared ownership of a single property with no right of survivorship
20> ownership by two or more persons that gives each the right to use the entire
property
a. accretion k. deed
b. adverse possession l. easement by prescription
c. alienation of title m. grant
d. alluvion n. grantor
e. bargain and sale deed o. holographic will
f. cloud on the title p. intestate
g. color of title q. quitclaim deed
h. consideration r. special warranty deed
i. covenants and warranties s. statute of frauds
j. dedication t. warranty deed
1> a written document that when properly executed and delivered conveys tile to land
2> requires that transfers of real estate be in writing
3> the act of conveying ownership
4> anything of value given to produce a contract
5> promises and guarantees found in a deed
6> any claim, lien, or encumbrance that impairs title to property
7> a deed that contains the covenants of seizen, quiet enjoyment, encumbrances, further
assurance, and warranty forever
8> a deed that contains no covenants; it only implies that the grantor owns the property
described in the deed
9> a deed with no covenants and no implication that the grantor owns the property
10> to die without a will
11> a will written entirely in one’s own handwriting and signed but not witnessed
12> acquisition of real property through prolonged and unauthorized occupation
13> some plausible but not clear-cut indication of ownership
14> acquisition of an easement by prolonged use
15> waterborne soil deposited to produce firm, dry ground
16> person named in a deed who conveys ownership
17> private land voluntarily donated for use by the public
18> the process of land build-up due to the gradual accumulated of rock, sand, and soil
19> a change in ownership of any kind
20> grantor warrants title only against defects occurring during the grantor’s ownership
a. abstract of title k. opinion of title
b. abstracter l. owner’s policy
c. actual notice m. quiet title suit
d. certificates of title n. reissue rates
e. constructive notice o. title cloud
f. inquiry notice p. title plant
g. judgment rolls q. title report
h. lender’s policy r. tract index
i. lis pendens index s. vested
j. notary public t. witness
1> where information on judgments against recent owners may be found
2> reduced rates offered by some title companies if previous owner’s policy is available
3> one who signs a document stating that they have witnessed a parties signature
4> a summary of all recorded documents affecting title to a given parcel of land
5> a person authorized to take acknowledgements
6> a report made by a title insurance company showing current title condition
7> expert in the field of title search
8> a system for listing recorded documents affecting a particular tract of land
9> a publicly available index whereby a person can learn of any pending lawsuits that
may affect title
10> possessed by; owned by
11> notice given by public records or by visible possession coupled with the legal
presumption that all persons are thereby notified
12> a title defect
13> an opinion by an attorney as to who owns a parcel of land
14> court-ordered hearings held to determine land ownership
15> a duplicate set of public records maintained by a title company
16> knowledge gained from what one has seen, heard, read, or observed
17> insurance to protect a property owner against monetary loss if his title is found to
be imperfect
18> claims to property rights the law presumes a reasonably diligent person would find
through further investigation
19> a title policy written to protect a real estate lender
20> a statement as to the ownership of a property that is made by an attorney after
reading the abstract
a. assign k. money damages
b. attorney-in-fact l. mutual agreement
c. breach of contract m. novation
d. competent party n. offeror
e. consideration o. rescind
f. counteroffer p. specific performance
g. duress q. statute of frauds
h. forbear r. unilateral contract
i. fraud s. void contract
j. liquidated damages t. voidable contract
1> a contract in which one party makes a promise or begins performance without first
receiving any promise to perform from the other
2> an act intended to deceive for the purpose of inducing another to part with
something of value
3> a person who is considered legally capable of entering into a contract
4> the party who makes an offer
5> a contract that is not legally binding on any of the parties that made it
6> an offer made in response to an offer
7> to cancel a contract and restore the parties involved to their respective positions
before the contract was made
8> use of force to obtain contract agreement
9> not to act
10> to transfer one’s rights in a contract to another person
11> damages that can be measured in and compensated by money
12> failure, without legal excuse, to perform any promise called for in a contract
13> contract performance according to the precise terms agreed upon
14> a sum of money called for in a contract that is to be paid if the contract is breached
15> a contract that is able to be voided by one of its parties
16> the person holding a power of attorney on behalf of another
17> a meeting of the minds
18> an act or promise given in exchange for something
19> requires all contracts for the sale of land to be in writing to be enforceable in a
court of law
20> the substitution of a new contract for an existing one
a. “as is” k. letter of intent
b. bill of sale l. loan commitment
c. binder m. optionee
d. closing date n. option fee
e. delayed exchange o. prorating
f. dry rot p. purchase contract
g. earnest money deposit q. qualified intermediary
h. equitable title r. right of first refusal
i. installment contract s. “time is of the essence”
j. lease-option t. vendee
1> a written and signed agreement specifying the terms at which a buyer will purchase
and an owner will sell
2> a short-form purchase contract to hold a real estate transaction together until a more
formal contract can be prepared an designed
3> money that accompanies an offer to purchase as evidence of good faith
4> property offered for sale in its present condition with no guarantee or warrant of
quality provided by the seller
5> rotted wood; usually the result of alternate soaking and drying over a long period of
time
6> the day on which the buyer pays his money and the seller delivers title
7> written evidence of the sale of personal property
8> a phrase meaning that all parties to a contract are expected to perform on time as a
condition of the contract
9> also known as a conditional sales contract, land contract, contract for deed, or
agreement of sale
10> the buyer under a contract for deed
11> the right to demand that the title be conveyed upon payment of the purchase price
12> allows the tenant to buy the property at a preset price for a given period of time
13> the right to match or better an offer before the property is sold to someone else
14> expresses a mutual intention to buy, sell, lease, develop, or invest without creating
any firm obligation
15> the party receiving an option
16> an agreement by a lender to make a loan
17> money paid for the privilege of having an option
18> a non-simultaneous real estate trade
19> a third-party escrow agent used in tax-deferred exchanges
20> the process of dividing ongoing expenses and income items
a. acceleration clause k. foreclosure
b. alienation clause l. junior mortgage
c. assumption m. mortgage
d. chattel mortgage n. mortgagor
e. deed of trust o. partial release
f. defeasance clause p. power of sale
g. deficiency judgment q. promissory note
h. equitable mortgage r. public auction
i. equity of redemption s. subject to
j. first mortgage t. subordination
1> a document by which property secures the repayment of the debt
2> a clause in a mortgage stating that the mortgage is defeated if the borrower repays
the accompanying note on time
3> a lawsuit filed by a lender that asks a court to set a time limit on how long a
borrower has to redeem her property
4> an agreement that is considered to be a mortgage in its intent even though it may not
follow the usual mortgage wording
5> a document wherein personal property is used as security for a promissory note
6> the evidence of debt; contains amount owed, interest rate, repayment schedule, and a
promise to pay
7> one who gives a mortgage; the borrower
8> a clause in a mortgage that allows a lender to call the loan due if the property
changes ownership; also known as a due-on-sale clause
9> release of a portion of a property from a mortgage
10> the buyer personally obligates himself to repay an existing mortgage loan as a
condition of the sale
11> the buyer of an already mortgaged property makes the payment but does not take
personal responsibility for the loan
12> any mortgage lower than a first mortgage in priority
13> a clause in a mortgage that gives the mortgagee the right to conduct a foreclosure
sale without first going to court
14> a judgment against a borrower if the sale of a mortgaged property at foreclosure
does not bring enough to pay the balance owing
15> the right of a borrower, after a foreclosure sale, to reclaim the property by repaying
the defaulted loan
16> voluntary acceptance of a lower mortgage priority position than one would
otherwise be entitled to
17> a deed given to a trustee as security for a loan
18> the mortgage loan with highest priority for repayment in the event of foreclosure
19> the usual procedure by which foreclosed properties are sold
20> allows the lender to declare the loan due if the borrower defaults
a. accepted form k. no statutory redemption
b. assignment of rents l. power of sale
c. automatic form m. public trustee
d. bare title n. reconveyance deed
e. beneficiary o. release deed
f. deed of trust p. request for reconveyance
g. default q. trust
h. foreclosure r. trustee
i. junior claims s. trustee’s deed
j. naked title t. trustor
1> a document that conveys legal title to a neutral third party as security for a debt
2> one who creates a trust; the borrower under a deed of trust
3> the lender
4> one who holds property in trust for another
5> transfers title from the trustee to the trustor
6> a publicly appointed official who acts as a trustee in some states
7> the trustee is named in the deed of trust but not personally notified of the
appointment
8> title in a legal sense only and without the usual rights of ownership
9> the beneficiary’s request to the trustee to deed the secured property to the trustor
10> a clause in a deed of trust that gives the trustee the right to conduct a foreclosure
sale without first going to court
11> the lender’s right to take possession and collect rents in the event of loan default
12> conveys to the purchaser at foreclosure the right, title, and interest held by the
trustee
13> title that the borrower grants to the trustee; also known as naked title.
14> any claim behind a first lien
15> the trustee is notified in advance and either accepts or rejects the appointment
16> what the trustee issues to the borrower; also known as a reconveyance deed
17> violation of any of the terms of the deed of trust
18> the process of selling the mortgaged property allowed under the deed of trust
19> usually not allowed once the foreclosure sale takes place
20> a three party arrangement involving a trustor, trustee, and beneficiary
a. Amortized loan k. Loan origination fee
b. Amortization tables l. Loan-to-value ratio
c. Balloon loan m. Maturity
d. Budget mortgage n. Partially amortized loan
e. Conventional loan o. PITI payment
f. Discount point p. PMI
g. Equity q. Point
h. FHA r. Principal
i. Impound account s. Term loan
j. Loan balance table t. UFMIP
1> balance owing on a loan
2> a loan that requires the borrower to pay interest only until maturity, at which time
the full amount of the loan must be repaid
3> refers to a monthly loan payment that includes principal, interest, property taxes, and
property insurance
4> an escrow or reserve account into which the lender places the borrower’s monthly
tax and insurance payments
5> one hundredth of the total amount; 1% of a loan
6> a loan requiring periodic payments that include both interest and principal
7> a payment that is larger than any of the previous payments
8> the end of the life of a loan
9> a loan with a series of amortized payments followed by a balloon payment at
maturity
10> shows the principal still owing during the life of a loan
11> a table showing the monthly payments required to completely pay off a loan
12> a one-time charge by the FHA for insuring a loan
13> a private mortgage insurance source to insure lenders against foreclosure loss
14> the expenses a lender incurs in processing a mortgage loan
15> a mortgage wherein the borrower pays principal, interest, taxes and insurance in the
same payment
16> the market value of a property less the debt against it
17> Federal Housing Administration
18> a percentage reflecting what a lender will lend divided by the sale price or market
value of the property, whichever is less
19> real estate loans that are not insured by FHA or guaranteed by the VA
20> a charge by a lender that will allow them to sell the loan in the secondary market at
a discount
a. APR k. liquid assets
b. cash value l. loan-to-value ratio
c. credit report m. redlining
d. credit scoring n. Regulation Z
e. equity o. right to rescission
f. exempt transactions p. settlement funds
g. Fair Credit Reporting Act q. subprime loans
h. Federal Consumer Credit Protection Act r. Truth-in-Lending Act
i. finance charge s. TILSRA
j. illiquid assets t. trigger term
1> federal regulations that implement the enforcement of the Truth-in-Lending Act
2> a report reflecting the creditworthiness of a borrower by showing past credit history
3> the market value of a property less the debt against it
4> refusal to make a real estate loan based solely on the location of the property
5> assets that may require months to sell and convert to cash
6> assets that are in cash or are readily convertible to cash in a few days
7> credit information used in advertising that requires additional credit disclosures
8> a federal law that requires certain disclosures when extending or advertising credit
9> the total amount the credit will cost over the life of the loan
10> the annual percentage rate as calculated under the federal Truth-in-Lending Act by
combining the interest rate with other costs of the loan
11> federal law giving an individual the right to inspect his or her file with the credit
bureau and correct any errors
12> Truth-in-Lending Simplification and Reform Act
13> popularly known as the Truth-in-Lending Act
14> transactions that are exempt from the lending disclosure requirement
15> the right that gives borrowers three days to back out after signing loan papers
16> funds that are presently in the borrower’s checking or savings accounts or available
from the sale of the borrower’s present property
17> the amount of money the policyholder would receive if the policy was surrendered
to the insurance company
18> the ratio of the amount of the loan to the appraised value of the property
19> scoring system applied to a list of subjective factors that are relative in evaluating
credit risks
20> loans that have risk-based pricing and are typically categorized from “A” to “F”
a. adjustment period
b. adjustable rate mortgage (ARM)
c. blanket mortgage
d. blended-rate loan
e. buy-down mortgage
f. carryback financing
g. contract for deed
h. equity mortgage
i. equity sharing
j. graduated payment mortgage
t. wraparound mortgage
k. interest rate cap
l. negative amortization
m. option
n. overencumbered property
o. package mortgage
p. payment cap
q. reverse mortgage
r. sale and leaseback
s. subordination
1> the amount of time that elapses between interest rate changes on a loan
2> a mortgage secured by two or more properties
3> a mortgage secured by real and personal property
4> to voluntarily give up a higher mortgage priority for a lower one
5> a situation where the loans against a property exceed the value of the property
6> a financing arrangement whereby an owner-occupant sells the property and then
remains as a tenant
7> results when monthly interest exceeds monthly payment an the difference is added
to the principal
8> a refinanced loan wherein the lender combines the interest rate of the existing loan
with a current rate
9> a mortgage wherein the lender extends a line of credit based on the amount of equity
in a person’s home
10> a payment by the seller to the lender in order to reduce the interest for the buyer
11> a loan wherein the lender makes monthly payments to the property owner who later
repays in a lump sum
12> the ceiling to which the interest rate on a loan can rise
13> a limit on how much a borrower’s payment can increase in any one year
14> a note is accepted by a seller instead of cash
15> an arrangement whereby a party providing financing gets a portion of the
ownership
16> a right, for a given period of time, to buy, sell, or lease property at present price and
terms
17> a method of selling and financing property whereby the buyer obtains possession
but the seller retains the title
18> a mortgage loan on which the rate of interest can rise and fall with changes in
prevailing interest rates
19> a mortgage repayment plan that allows the borrower to make smaller monthly
payments at first and larger ones later
20> a debt instrument that encompasses existing mortgages and in subordinate to them
a. adjusted sales price k. front-foot basis
b. ad valorem tax l. improvement district
c. amount realized m. installment method
d. appropriation process n. long-term capital gain
e. assessed value o. mill rate
f. assessment appeal board p. public improvement
g. assessment roll q. special assessments
h. basis r. tax certificate
i. conveyance tax s. tax deed
j. documentary tax t. tax lien
1> a tax expressed in tenths of a cent per dollar of assessed valuation
2> according to value
3> a document issued at a tax sale that entitles the purchaser to a deed at a later date if
the is not redeemed
4> the enactment of a taxing body’s budget and sources of money into law
5> a book that contains the assessed value of each property in the taxing district
6> a document conveying to property purchased at a tax sale
7> a value placed on a property for the purpose of taxation
8> assessments levied to provide publicly built improvements that will primarily benefit
property owners within a small geographical area
9> a charge or levy based directly on the measured distance that a parcel of land abuts a
street
10> sales price of a property less fix-up costs and sales commissions, closing and other
selling costs
11> a preferential income tax treatment on the sale of an appreciated asset before 1987
12> sale of an appreciated property structured to spread out the payment of income
taxes on the gain
13> hears complaints from property owners regarding their assessments
14> a state or local tax charged on deeds at the time of recording
15> the geographical area which will be assessed for a local improvement
16> an improvement that benefits the public at large and is therefore financed by
general property taxes
17> a charge or hold by a government against property to ensure the payment of taxes
18> the price paid for property; used in calculating income taxes
19> a fee or tax on deeds and other documents payable at the time of recordation
20> selling price of a home less selling expenses
a. 30-day month k. HUD settlement statement (HUD-1)
b. beneficiary statement l. loan escrow
c. CC&Rs m. offset statement
d. closing date n. outside of the closing
e. closing meeting o. prorate
f. deed delivery p. RESPA
g. dry closing q. settlement meeting
h. escrow agent r. settlement statement
i. escrow closing s. title closing
j. good faith estimate t. walk-through
1> when seller and buyer meet in person to close a real estate transaction
2> statement by an owner or lienholder as to the balance due on an existing lien against
the property
3> conditions, covenants, and restrictions of a condominium, cooperative, or a planned
unit development
4> a custom in some states of using a 30-day month to simplify proration calculations
5> an accounting of funds to the buyer and seller at the completion of a real estate
transaction
6> deposit of documents and funds with a neutral third party plus instructions as to how
to conduct the closing
7> the moment at which title passes from the seller to the buyer
8> to divide the ongoing income and expenses of a property between the buyer and the
seller
9> a federal law that deals with procedures to be followed in certain types of real estate
closings
10> the person or firm in charge of an escrow
11> an escrow for the purpose of financing a property not in connection with a sale
12> refers to closing costs paid by the buyer or seller that did not go through the closing
agent
13> a list of anticipated closing costs given to the borrower by the lender as required by
RESPA
14> federally related lenders are required to use this particular closing statement format
15> the day on which the closing is finalized. Also called the settlement date
16> a meeting at which the buyer pays for the property and receives a deed for it; also
called a settlement meeting
17> a final inspection of the property just prior to the settlement date
18> the process of completing a real estate transaction
19> shows the unpaid balance on a loan and is provided by the lender
20> a method to avoid rescheduling a closing meeting when a document, known to be
on its way, has not yet arrived
a. actual eviction k. month-to-month lease
b. assignment l. net lease
c. constructive eviction m. on-site management
d. contract rent n. participation clause
e. CPM, RPA o. percentage lease
f. gross lease p. rent concession
g. holdover tenant q. security deposit
h. landlord-tenant laws r. step-up rent
i. lessee s. sublessee
j. lessor t. sublet
1> the landlord
2> the tenant
3> partial transfer of rights held under a lease
4> complete transfer of rights held under a lease
5> one who holds a tenancy at sufferance
6> example of a periodic estate
7> specified rent increases at various points in time during the life of the lease
8> a lease clause that allows the landlord to add to the tenants rent any increase in
expenses during the life of the lease
9> a lease where the amount of rent paid is related to the income the lessee obtains from
the use of the premises
10> describes leases wherein the tenant pays a fixed rent
11> statutes that set forth the responsibilities and rights of landlords and tenants
12> a lease wherein a tenant pays a base rent plus maintenance, property taxes, and
insurance
13> the party acquiring possession under a sublet agreement
14> nonpayment of rent would be grounds for this
15> the amount of rent the tenant must pay the landlord as stated in the lease agreement
16> an unfit premises would be grounds for this
17> an advance deposit given by a tenant to a landlord against which the landlord can
deduct for unpaid rent or damage
18> a premium, such as a free month’s rent, given to entice a prospective tenant to sign
a lease
19> a resident manager would be in this category
20> professional designations for property managers
a. adjustments k. highest and best use
b. appraisal l. income approach
c. buyer’s market m. incurable depreciation
d. capitalize n. market approach
e. comparables o. net operating income (NOI)
f. cost approach p. operating expenses
g. curable depreciation q. physical deterioration
h. depreciation r. reproduction cost
i. functional obsolescence s. scheduled gross income
j. gross rent multiplier (GRM) t. subject property
1> properties similar to the subject property that have sold recently
2> cost at today’s prices of constructing an exact replica of the subject improvements
using the same or similar methods
3> a method of valuing property based on the prices of recent sales of similar properties
4> land value plus construction costs less depreciation
5> the property that is being appraised
6> corrections made to comparable properties to account for differences between them
and the subject property
7> depreciation resulting from wear and tear of the improvements
8> depreciation resulting from improvements that are inadequate, overly adequate, or
improperly designed for today’s needs
9> the estimated rent a fully occupied property can be expected to produce on an annual
basis
10> to convert future income to current value
11> gross income less operating expenses, vacancies, and credit losses
12> expenditures necessary to maintain the production of income
13> to estimate the value of something
14> a method of valuing property based on the monetary return it is expected to
produce
15> a number that is multiplied by a property’s gross rents to produce an estimate of its
worth
16> depreciation that can be remedied at a reasonable cost
17> depreciation that cannot be remedied at a reasonable cost
18> a market where there are few buyers and many sellers
19> that use of a parcel of land that will produce the greatest current value for the
parcel
20> loss in value due to deterioration and obsolescence
a. broker k . real estate commission
b. continuing education l. real estate salesperson
c. employment contract m. REALTOR
d. fictitious business name n. REALTOR-Associate
e. franchisee o. realty board
f. independent contractor p. recovery fund
g. licensee q. revoke
h. nonresident license r. sales associate
i. notice of consent s. securities license
j. principal broker t. suspend
1> one who holds a license
2> a person who is licensed to bring about real estate transaction for a fee, but who do
so only in the employment of a real estate broker
3> a registered trademark owned by the National Association of REALTORS for
exclusive use by its members
4> broker in charge of an office
5> a business operated under any name other than the owner’s name
6> an independent agent who negotiates transactions for a fee
7> to temporarily make ineffective
8> to recall and make void
9> a local trade organization for real estate licensees and other persons allied with the
real estate industry
10> a state-operated fund that can be tapped to pay for uncollectible judgments against
real estate licensees
11> a salesperson or broker employed by a broker
12> a state board that advises and sets policies regarding real estate licensees and real
estate transaction procedures
13> one who uses his own methods and is responsible only as to results
14> a requirement for license renewal in many states, its purpose is to help licensees
keep up to date in real estate
15> required of a real estate broker in order to conduct negotiations within another state
16> permits the secretary of state to receive legal summonses on behalf of a nonresident
broker
17> required when selling an investment contract
18> formalizes the working arrangement between the broker and his salespersons
19> the party holding a franchise such as a franchised brokerage office
20> membership designation for salespersons and broker licensees working for
REALTORS
a. abandonment k. exclusive authority to purchase
b. advance fee listing l. exclusive right to sell
c. advanced cost listing m. flat-fee broker
d. agent n. Multiple listing service (MLS)
e. bargain broker o. net listing
f. broker p. open listing
g. buyer’s broker q. procuring cause
h. discount broker r. ready willing and able buyer
i. employment contract s. real estate listing
j. exclusive agency listing t. REBAC
1> a listing that gives a broker a nonexclusive right to find a purchaser
2> a listing that gives a broker the right to collect a commission no matter who sells the
property during the listing period
3> a listing wherein the owner reserves the right to sell the property himself, but agrees
to list with no other broker during the listing period
4> a person empowered to act by and on behalf of the principal
5> a listing for which the commission is the difference between the sales price and the
minimum price set by the seller
6> an organization of real estate brokers that exists for the purpose of exchanging
listing information
7> the broker who is the primary cause of a transaction
8> a listing where the broker charges for time by the hour and for out-of -pocket
expenses to market a property
9> a broker who charges a preset brokerage fee that is collected whether the property
sells or not
10> a real estate listing between a property owner and a real estate broker
11> a listing that covers only out-of-pocket costs incurred by the broker
12> an acronym that describes a division of the National Association of REALTORS
whose members specialize in buyer agency
13> a broker who represents the buyer in a real estate transaction
14> if a broker acts counter to the principal’s best financial interests, the employment is
terminated and no commission is paid
15> a broker who deviates from the full-service concept of real estate brokerage and
thereby charges lower commissions
16> a full-service broker who charges less than the prevailing commission rates in his
community
17> one who, for a fee, acts as an agent for others in negotiating contracts or sales
18> listing utilized by buyer’s brokers
19> a buyer who is ready to buy at the seller’s price and terms and who has the financial
capability to do so
20> a contract wherein a broker is employed to find a buyer or tenant
a. agent k. price fixing
b. agency by estoppel l. principal
c. boycotting m. property report
d. buyer’s broker n. puffing
e. commingling o. sales associate
f. dual agency p. special agency
g. fiduciary relationship q. subagent
h. implied authority r. third parties
i. middleman s. trust account
j. ostensible authority t. universal agency
1> a person who authorizes another to act
2> persons who are not parties to a contract but may be affected by it
3> an agency created for the performance of specific acts only
4> a person who brings two or more parties together but does not assist in conducting
negotiations
5> one broker representing two or more parties in a transaction
6> mixing of client’s or customer’s funds with an agent’s personal funds
7> two or more listing brokers agreeing to charge a 7% commission
8> a licensed salesperson or broker who works for a broker
9> agency authority arising from custom, common usage, and conduct of the parties
involved
10> a relationship that requires trust, honesty, and exercise of good business judgment
11> a separate account for holding client’s and customer’s money
12> refusing to work with another broker because of an arbitrary set of rules
13> refers to the agency relationship of a broker’s sales associate to the seller
14> a broker employed by and therefore loyal to the buyer
15> government required information that must be given to purchasers in a subdivision
16> the principal gives the agent legal power to transact matters of all types
17> the person empowered to act by and on behalf of the principal
18> an agency relationship created by the conduct of the principal
19> statements a reasonable person would recognize as non-factual or extravagant
20> results when a principal fails to maintain due diligence over her agent and the agent
exercises powers not granted to him
a. Americans with Disabilities Act (ADA) k. Jones v.
Alfred H Mayer Company
b. block busting l. marital status
c. commercial facility m. minority
d. Community Reinvestment Act (CRA) n. protected
class
e. CRA statement o. public
accommodations
f. Equal Credit Opportunity Act p. Shelley v.
Kraemer
g. Fair Housing Law q. steering
h. familial status r. tester
i. Fourteenth Amendment s. Thirteenth
Amendment
j. handicapped t. Title VIII
1> applies to federal prohibitions under the Bill of Rights to the state
2> federal fair housing law under the Civil Rights Act of 1968
3> one or more individuals being domiciled with a parent or another person having
legal custody of such individual
4> any group or member of a group that can be identified by race, color, religion, sex,
or national origin
5> the illegal practice of inducing panic selling in a neighborhood for financial gain
6> the act of directing any group away from or to an integrated or minority
neighborhood
7> having a physical or mental impairment that substantially limits one or more major
life activities
8> law applying to single-family housing utilizing the services of a real estate broker
9> the “badge of slavery” violates the constitutional amendment
10> federal statute requiring accessibility for commercial premises
11> federal statute prohibiting discrimination in lending practices
12> federal statute prohibiting discrimination in credit transactions
13> an individual posing as a potential purchaser to determine whether discrimination
exists in a real estate transaction
14> a class of people that by law are protected from discrimination
15> the landmark case that established that any form of discrimination creates a “badge
of slavery” and violates the Thirteenth Amendment
16> the significant case in interpreting the Fourteenth Amendment as it applies to the
states
17> encompasses 12 categories of retail and service business, including places of
lodging, food and drink establishments, places of public gathering, etc
18> a facility whose operations affect commerce, that are intended for nonresidential
use, and is not a facility expressly exempt from coverage under the Fair Housing Act of
1968
19> using the categories of married, unmarried,or separated
20> calls for mandatory information and some optional information that lending
institutions should make available to their customers
a. annual meeting k. house
rules
b. board of directors l.
maintenance fees
c. bylaws m.
management company
d. covenants, conditions, and restrictions (CC&Rs) n. owner’s
association
e. common elements o.
proprietary lease
f. condominium p. planned
unit development (PUD)
g. condominium act q. reserves
h. condominium subdivision r. resort
timeshare
i. cooperative s.
right-to-use
j. cooperator t. separate
property
1> individual ownership of a space of air plus undivided ownership of the common
elements
2> ownership by a corporation that in turn leases spaces to its shareholders
3> roofs, stairs, elevator, lobby, and so on, in a condominium
4> an organization composed of unit owners in which membership is automatic upon
purchase of a unit
5> type of lease issued by a cooperative corporation to its shareholders
6> a document that coverts a parcel of land into a stratified subdivision; also called a
master deed
7> rules that govern how the owner’s association will be run
8> a shareholder in a cooperative apartment
9> charges levied against unit owners to cover the cost of maintaining the common
areas; also called association dues
10> form of community ownership where the houses and lots are privately owned but
title to common areas is held by an owner’s association
11> state legislation that creates the legal framework for condominium subdivisions
12> that portion of a condominium that is the exclusive property of an individual owner
13> regulations by which a condominium owner must abide
14> rules for the use of the swimming pool and recreation facilities would be found
here
15> a governing body elected by association members
16> a once-a-year business meeting of the entire association membership
17> advises the board of directors; takes care of day-to-day tasks
18> the exclusive use of a property for a specified numbers of days each year
19> a contractual right to occupy a unit at a timeshare resort
20> money set aside from the budget for expenses that do not occur every month
a. all-risks policy k. insurable interest
b. actual cash value l. insurance premium
c. broad form (HO-2) m. insured
d. endorsement n. medical payments
e. flood insurance o. new for old
f. form HO-4 p. old for old
g. form HO-6 q. peril
h. homeowner policy r. public liability
i. homeowner’s warranty s. tenant’s policy
j. inflation guard t. worker’s compensation policy
1> also called hazards or risks
2> an endorsement that periodically increases insurance coverage
3> describes combined property and liability policies designed for residential
owner-occupants
4> pays current cost of replacement less depreciation
5> pays cost of replacing damaged property at current prices
6> tenant’s policy form
7> condominium owner’s policy form
8> the financial responsibility one has toward others
9> the amount of money paid for insurance coverage
10> describes a policy that covers all perils, except those excluded in writing
11> insurance phrase for policies that cover a large number of named perils
12> an agreement by the insurance company to extend coverage to perils not covered in
the basic policy
13> this would pay for damage from the outflow of inland or title waters
14> a financial interest that can be insured
15> insurance coverage for injuries incurred by an employee on the job
16> one who is covered by insurance
17> pays for the treatment of injuries without the need to determine fault
18> provides broad form coverage for personal property and reimbursement of any loss
of use of rental property
19> warrants against defects caused by faulty workmanship or materials and against
major structural defects
20> the new price minus accumulated depreciation and is, in effect, “old for old”
a. amendment k. master plan
b. buffer zone l. nonconforming use
c. building codes m. Phase I
d. CERCLA n. Restrictive covenants
e. certificate of occupancy o. Spot zoning
f. conditional use permit p. taking
g. downzoning q. TDRs
h. EIS or EIR r. variance
i. land-use-control s. windfall gains
j. mapping requirement t. zoning laws
1> a broad term used to describe any legal restriction (such as zoning) that controls how
a parcel of land may be used
2> public regulations that control the specific use of land
3> an improvement that is inconsistent with current zoning regulations
4> a comprehensive guide for a community’s physical growth
5> clauses placed in deeds and leases to control how future owners and lessees may or
may not use the property
6> a government-issued document stating that a structure meets zoning and building
code requirements and is ready for use
7> a report that contains information regarding the effects of a proposed project on the
environment
8> method used to change a zoning ordinance
9> allows an individual landowner to vary from a zoning ordinance without changing
the ordinance
10> the rezoning of a small area of land in an existing neighborhood
11> local and state laws that set minimum construction standards
12> a strip of land that separates one land use from another
13> rezoning of land from a higher-density use to lower-density use
14> state and local regulations pertaining to subdivisions that a subdivider must meet
before selling lots
15> allows a land use that does not conform with existing zoning, provided the use is
within the limitations imposed by the permit
16> a concept wherein the municipality regulates the property to where it has no value
or, in some cases, has no remaining economic value
17> name commonly applied to the Comprehensive Environmental Response,
Compensation, and Liability Act
18> minimal site assessment required to qualify for the innocent landowner defense
19> a new planning idea intended to eliminate windfalls and wipe-outs
20> inure to owners of land that has been authorized for development as a result of
planning and zoning
a. age distribution k. monetary inflation
b. base industry l. monetize the debt
c. buying pattern m. primary industry
d. cost-push inflation n. real
e. demand o. real-cost inflation
f. demand-pull inflation p. secondary industry
g. economic base q. service industry
h. employment multiplier r. short-run demand
i. Federal Reserve Board s. supply
j. long-run demand t. vulnerability
1> an industry that produces goods or services for export from the region; also called
primary or export industries
2> an industry that produces goods or services to sell to local residents
3> the ability of a region to export goods and services to other regions
4> higher prices due to buyers bidding against each other
5> higher prices due to greater effort needed to produce the same product today
6> higher prices due to increased costs of labor and supplies
7> results from increasing the money supply faster than increases in goods and services
to buy
8> governing board of the nation’s central bank
9> inflation-adjusted
10> the creation of money by the Federal Reserve to purchase Treasury securities
11> population distribution based on year of birth
12> industries that produce goods and services for export; also called base or export
industries.
13> producers of goods and services that are not exported; also called service or filler
industries
14> dependency on the number of base industries present and the ability of those
industries to continue to consistently export their products
15> describes the number of people employed in local service industries as a function
of the number of people employed in a base industry
16> price changes for developed real property can be rapid and dramatic over short
periods of time
17> availability of housing in a community
18> the requirement for housing in a community
19> future demand for housing as seen by looking at the population and the ability of
people to obtain income at various age levels
20> requirement for housing based on age and income patterns
a. accelerated depreciation k. investment strategy
b. active investor l. leverage
c. appreciation m. master limited partnership
d. at-risk rules n. negative cash flow
e. blind pool o. negative leverage
f. cash flow p. non-recourse financing
g. cash-on-cash q. passive investor
h. downside risk r. prospectus
i. equity build-up s. straight-line depreciation
j. GLITAMAD t. tax shelter
1> number of dollars remaining each year after collecting rents and paying operating
expenses and mortgage payments
2> requires the investor to dip into her own pocket
3> income tax savings that an investor can produce for its owner
4> results from mortgage reduction and price appreciation
5> an acronym that refers to the various phases of the life cycle of improved property
6> a method of calculating depreciation that takes equal amounts of depreciation each
year
7> any method of depreciation that achieves a faster rate of depreciation than the
straight-line method
8> a limited partnership wherein properties are purchased after the limited partners
have invested their money
9> the possibility that an investor will lose his money in an investment
10> a disclosure statement that describes an investment opportunity
11> the cash flow of a property divided by the amount of cash needed to purchase it
12> as defined by tax law, the amount an investor risks in an investment
13> the impact that borrowed funds have on investment return
14> an investor who takes an active role in property management, as defined by income
tax law
15> limited partnership that can be traded on a stock exchange nearly as easily as
corporate stock
16> financing where the borrower is not personally liable
17> a limited partner who does not materially participate on a “regular, substantial, and
continuous basis”
18> if the borrowed funds cost more than the benefits they are producing
19> increase in property value that the owner hopes will occur while owning it
20> a plan to balance the returns available with the risks that must be taken to achieve
those returns
The right of individuals to inspect their file at a credit bureau is found in the
a. Truth-in-Lending Act.
b. Fair Credit Reporting Act.
c. Regulation Z.
d. Federal Consumer Credit Protection Act.
Which of the following do lenders of home loans consider the most important in their
analysis of a loan application?
a. Age, sex, race, and marital status of the borrower
b. Location and age of the collateral
c. Job stability, income adequacy and credit rating of the borrower
d. Ethnic and business balance of collateral’s neighborhood
A typical homeowner insurance policy does not cover
a. the dwelling.
b. living expenses while damage to the residence is being repaired.
c. personal property within the dwelling.
d. automobiles in the garage on the property.
The purchaser of a condominium unit is obligated to abide by the development’s
a. covenants, conditions, and restrictions.
b. house rules.
c. both a and b.
d. neither a nor b.
Which of the following claims against a real property interest would be the first to be
satisfied?
a. First trust deed
b. Second trust deed
c. Property taxes
d. Newly filed IRS tax lien
A company wishing to raise capital by selling its real estate but still remaining as the
occupant of the property would enter into
a. a sale and lease-back.
b. an option agreement.
c. an equity mortgage.
d. a contract for deed.
Which of the following is NOT a real estate license category?
a. Salesperson
b. Broker
c. Attorney-in-fact
d. Both a and c
The agency relationship of a real estate broker with his client is most often established
by
a. an implied contract.
b. express contract.
c. an endorsement.
d. a ratification.
The covenant of seizen warrants that one is
a. the lawful owner.
b. a lessee.
c. a trespasser.
d. acquiring ownership by adverse possession.
What should a salesperson do if he receives a second bona fide offer after one offer has
already been submitted to the seller but not yet accepted or rejected?
a. Allow the first purchaser to meet the second offer before submitting it
b. Hold the second offer until a decision is made on the first offer
c. Submit the second offer immediately
d. Submit the second offer only if it is better than the first
The Fair Credit Reporting Act gives individuals several rights EXCEPT
a. correct any errors on their report.
b. inspect their file at a credit bureau.
c. delete any reference to bankruptcy.
d. make explanatory statements to supplement the file.
If Mr. Howard paid $2,500 per acre for the W 1/2 of the SE 1/4 of the NW 1/4 of
section 10, how much did he pay?
a. $50,000
b. $100,000
c. $200,000
d. $680,000
Details that must be handled between the time a purchase contract is signed and the
closing typically include
a. title search.
b. deed preparation.
c. loan arrangements.
d. all of the above.
The lender on a condominium unit will require proof that the
a. unit owner carries liability insurance.
b. unit owner carries contents insurance.
c. condominium association carries insurance on the common elements.
d. condominium association carries insurance on the individual owner’s contents.
The right, which allows the mortgagor to regain his property following a mortgage
foreclosure, is known as
a. right of redemption.
b. due on sale.
c. satisfaction of mortgage.
d. defeasance.
Six hundred and forty acres is usually the size of a
a. township.
b. check.
c. range.
d. section.
A written agreement giving the listing broker the right to collect a commission, no
matter who sells the property, within the term of the agreement, is
a. usury.
b. a net listing.
c. an open listing.
d. an exclusive right to sell listing.
The seller has just informed the listing agent that he does not want the property shown
to any Orientals or other minority buyers. The agent
a. must obey the request under his fiduciary responsibilities.
b. may take the listing and show the property to anyone who desires to see it, including
any minorities.
c. must explain that he cannot take the listing under these circumstances.
d. may take the listing and hope that no one undesirable turns up.
The Truth in Lending Act covers credit extended for a
a. business or commercial transaction.
b. large apartment building.
c. mobile home which is used as a residence.
d. loan secured by a car valued at $30,000.
Which of the following is personal property?
a. Utility easement
b. Fixture
c. Ceiling fan
d. Electric fan plugged in
A condominium rules declaration may be changed by
a. whatever is stated in the rules declaration.
b. at least 50% of the owner-occupied units.
c. the condominium owner’s association.
d. approval of the majority of the condominium unit owners.
If a property is rented, the landlord should make certain that he has
a. adequate liability coverage.
b. adequate property damage coverage.
c. adequate property damage and liability coverage.
d. the renter purchases all insurance.
A couple purchased a condominium taking title as joint tenants. Regarding the other
owners, interest in the common areas would be held
a. as joint tenants.
b. community property.
c. as tenants in common.
d. in severalty.
A property owner wishing to be contacted by persons who want to buy and not by
agents who want a listing, would advertise for
a. “principals only”.
b. “customers”.
c. “clients”.
d. “third parties”.
When a broker takes a listing, he is acting under what kind of agency?
a. General
b. Special
c. Ostensible
d. Implied
If a shopping center building collapsed and several of the tenants’ stores could not be
reopened, the effect on the tenants’ leases would be
a. actual eviction.
b. an act of God eviction.
c. a sandwich lease.
d. constructive eviction.
In the United States, the instrument most commonly used to evidence a debt on real
property is
a. apromissory note.
b. amortgagee’s title policy.
c. abill of sale.
d. anearnest money agreements.
An easement
a. is always appurtenant.
b. is an estate at sufferance.
c. runs with the land.
d. is an estate at will.
When a property owner obtains permission to open a small business in a residential
neighborhood, it is an example of
a. nonconforming use.
b. grandfathering.
c. down zoning.
d. spot zoning.
Real estate values are affected by the federal government’s
a. tax rules.
b. laws.
c. deficits.
d. all of the above.
A blended-rate loan arrangement is designed to
a. raise the rate of interest to the buyer.
b. lower the sales price of the property.
c. attract buyers who are discouraged by high interest rates.
d. pay off a loan sooner.
Inflation brought on by increased effort necessary to produce the same quantity of a
good or service is knownas
a. demand-pull inflation.
b. real-cost inflation.
c. cost-push inflation.
d. monetary inflation.
An improvement that is inconsistent with current zoning regulations is considered a
_________________________ use.
In a promissory note the entity to which the debt is owed is known as the
____________________ or ____________________.
In a condominium, the authority to raise homeowner fees (association dues) rests with
the management company.
Investors in real estate investment trusts are called ____________________.
A private road on Don’s property has often been used by fishermen as a walkway to the
lake. If Don wishes to break the fishermen’s claim to an easement by prescription, while
still allowing the use, he mustgive notice of his consent to their use of the property.
A man bought a home two years ago and sold it a year later. You would expect to find
his name and a reference to the home in the mortgagee index.
In a limited partnership, the partners provide the bulk of the invested capital, have little
to say in the day-to-day management of the partnership, share in the profit and losses,
and contract with the general partners to limit their financial liability.
If the borrower defaults, the trustee has the right to sell the property and convey
ownership to the purchaser with a ______________________________.
In a general partnership, each partner can loose no more than what he has invested in
the partnership.
If a contract is considered voidable, it is valid until voided.
The property tax rate expressed in tenths of a cent per hundred dollars of assessed
valuation is called the mill rate.
Fire insurance is the foundation of property damage policies.
Prorations of items in a real estate closing are made usually as of the date of the signing
of the contract.
A loan that requires only interest payments until the last day of its life, at which time
the full amount borrowed is due, is called a(n) ____________________ loan.
Publicly available books that show assessed valuations are called assessment valuation
books.
A fee simple estate in real property may not be transferred with a bill of sale.
The concept of the market approach to valuation rests on the principle of highest and
best use.
The Community Reinvestment Act provides for equal credit to borrowers.