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Real Estate Vocabulary (PSI Real Estate
Exam) Guiding questions And answers.
Qs cooperative (Co-op) - n Ans✔ A type of multiple ownership in which the residents of a multiunit housing complex own shares in the corporation that owns the property, giving each resident the right to occupy a specific apartment or unit. Qs cost approach - n Ans✔ Process of estimating the value of a property by adding the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation, to the estimated land value. Qs credit - n Ans✔ An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date. Qs Credit history - n Ans✔ A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.
Qs Creditor - n Ans✔ A person to whom money is owed. Qs Credit Report - n Ans✔ A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Qs Credit repository - n Ans✔ An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit. Qs counteroffer - n Ans✔ New offer made as a reply to an offer received, having the effect of rejecting the original offer. The original offer cannot be accepted thereafter unless revived by the offeror repeating it. Qs Covenants, Conditions and Restrictions (CC&Rs) - n Ans✔
Qs descent - n Ans✔ Hereditary succession of an heir to the property of a relative who dies intestate. Qs earnest money - n Ans✔ An amount of money deposited by a buyer under the terms of a contract. In the event that the buyer backs out of the transaction, it is sometimes used as liquidated damages. Qs easement - n Ans✔ Right to use land of another for a specific purpose, such as for the right-of-way or utilities. Qs easement appurtenance - n Ans✔ Passes with the land when conveyed. Qs easement by necessity - n Ans✔ Easement allowed by law as necessary for the full enjoyment of a parcel of real estate: right of ingress and egress over a grantor's land.
Qs easement by prescription - n Ans✔ Easement acquired by continuous, open, uninterrupted, exclusive, and adverse use of the property for the period of time prescribed by state law. Qs easement in gross - n Ans✔ Easment not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner: right to an easement granted by A to B to use a portion of A's property for the rest of B's life. Qs economic life - n Ans✔ Period of time over which an improved property will earn an income adequate to justify its continued existence. Qs economic obsolescence - n Ans✔ Impairment of desirability or useful life arising from factors external to the property: economic forces or environmental changes that affect supply-demand in the market. Qs emblements - n Ans✔
Qs abstract of title - n Ans✔ A condensed version of the history of a title to a particular parcel of real estate as recorded in the county clerk's records; consists of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property. Qs abutting - n Ans✔ The joining, reaching, or touching of adjoining land characterized by a common boundary. Qs accelerated depreciation - n Ans✔ A method of calculating for tax purposes the depreciation of income property at a faster rate than would be achieved using the straight-line method. Note that any depreciation taken in excess of what would be claimed using the straight-line rate is subject to recapture as ordinary income to the extent of the gain resulting from the sale. Qs encroachment - n Ans✔ Fixture or structure, such as a wall or fence, that invades a portion of the property belonging to another. Qs encumbrance - n Ans✔
Any lien that may diminish the value of the property, such as a mortgage, tax or judgment lien, easement, restriction on the use of the land. Qs Equal Credit Opportunity Act (ECOA) - n Ans✔ Federal legislation requiring lenders to make credit equally available without discrimination, based on race, sex, color, religion, marital status, age, national origin, or receipt of income from public assistance. Qs equilization - n Ans✔ Raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts. Qs equitable title - n Ans✔ Interest held by a vendee under a contract for deed or an installment contract, the equitable rights to obtain absolute ownership to property when legal title is held in another's name. Qs erosion - n Ans✔ Gradual wearing away of land by water, wind and general weather conditions. Qs
evidence of title - n Ans✔ Proof of ownership of property, commonly a certificate of title. Qs exclusive agency listing - n Ans✔ Listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner's stated terms for a commission. Owner reserves the right to sell without paying anyone a commission by selling to a prospect who has not been introduced or claimed by the broker. Qs exclusive-right-to-sell listing - n Ans✔ Listing contract under which the owner appoints broker as his exclusive agent for a designated period of time to sell the property on the owner's stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, owner or any other broker. Qs executed contract - n Ans✔ Contract in which all parties have fulfilled their promises and thus performed the contract. Qs execution - n Ans✔
Signing and delivery of an instrument. Qs executor - n Ans✔ Person designated in a will to handle the state of the deceased. Probate court approves the sale of property y the executor. Qs executory contract - n Ans✔ Contract under which something remains to be done by one or more of the parties. Qs expressed contract - n Ans✔ Oral or written contract in which the parties state their terms and their intentions in words. Qs Fair Housing Act of 1968 - n Ans✔ Prohibits discrimination based on race, color, sex, religion, national origin, handicaps, and familial status in the sale and rental of residential property. Qs Federal Home Loan Mortgage Corporation (FHLMC) (Freddie Mac) - n Ans✔
FHA loan - n Ans✔ Loan insured by FHA and made by an approved lender in accordance with FHA regulations. Qs fiduciary relationship - n Ans✔ Relationship of trust and confidence as between trustee and beneficiary, principal and agent. Qs fixture - n Ans✔ An article that was once personal property but has been affixed to real estate that it has become real property. Qs freehold estate - n Ans✔ Estate in land in which ownership is for an indeterminate length of time in contrast to a leasehold estate. Qs functional obsolescense - n Ans✔ The impairment of functional capacity or efficiency, such as overcapacity, inadequacy, or changes in the art.
Qs general lien - n Ans✔ A lien on all real and personal property owned by a debtor. Qs general warranty deed - n Ans✔ Deed that states that the title conveyed therei is ood from the sovereignty of te soil to the grantee therein and no one else can successfully clai the prooperty. Qs Government National Mortgage Association (GNMA) (Ginnie Mae) - n Ans✔ Federal agency and division of HUD that operates special assistance aspects of federally aided housing programs and participates in the secondary market through its mortgage- backed securities pools. Qs graduated lease - n Ans✔ Provides for rent increases at set future dates. Qs graduated payment mortgage - n Ans✔ Initial payments are low but increase over the life of the loan.
Qs gross national product (GNP) - n Ans✔ Total value of goods and services produced in the US. Qs gross rent multiplier (GRM) - n Ans✔ Ratio of the price of a real estate investment to its monthly rental income before expenses such as property taxes, insurance. GRM = price divided by gross income. Qs habendum clause - n Ans✔ "To have and to hold," defining or limiting the extent of ownership in the estate granted by the deed. Qs highest and best use - n Ans✔ Possible use of land that will produce greatest net income thus highest land value Qs holdover tenancy - n Ans✔
Lessee retains possession of leased property after lease expires and landlord accepts rent and agrees to tenant's continued occupancy. Qs holographic will - n Ans✔ Written, dated and signed in handwriting of maker. Qs homeowner's warranty program - n Ans✔ Offered to buyers by some brokerages, warranting the property against certain defects for a specified period of time. Qs homestead protection - n Ans✔ Land and its improvements thereon designated by owner as his homestead, protected by state law in whole or part from forced sale by certain creditors of owner. Qs HUD - n Ans✔ REGULATES FHA and GNMA! Qs hypothecation - n Ans✔
Incomplete right: wife's dower interest in her husband's property during his life. acceleration clause - n Ans✔ A provision in a written mortgage, note, bond, or conditional sales contract that in the even of default, the whole amount of the principal and the interest may be declared due and payable at once. Qs accession - n Ans✔ Title to improvements or additions to real property is acquired as a result of the accretion of alluvial deposits along the banks of streams or as a result of the annexation of fixtures. Qs accretion - n Ans✔ Increase or addition to land by the deposit of sand or soil washed up naturally from a river, lake, or sea. Qs accrued depreciation - n Ans✔ The actual depreciation that has occurred to a property at any given date, the difference between the cost of replacement new (as of the date of the appraisal) and the present appraised value. Qs acknowledgement - n Ans✔
A declaration made by a person to a notary public or other pubic official authorized to take acknowledgments that an instrument was executed by his or her as a free and voluntary act. Qs actual eviction - n Ans✔ The result of legal action originated by a lessor, by which a defaulted tenant is physically ousted from the rented property pursuant to a court order. Qs actual notice - n Ans✔ Express information or fact; that which is known; actual knowledge. Qs ad valorem tax - n Ans✔ A tax levied according to value; generally used to refer to real estate tax. Qs adjustable-rate mortgage (ARM) - n Ans✔ A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All are tied to indexes. Qs adjustment date - n
