Question 1

Appurtenance

Accepted Answer

An inherent or attached right, privilege, or improvement belonging to, and passing with, the land.

Question 2

Bundle of Rights

Accepted Answer

The right to use, sell, lease, enter, or give away property, or to refuse to exercise any of these rights.

Question 3

Abstract of Title

Accepted Answer

A condensed history of the title to a particular parcel of real estate.

Question 4

Ad Valorem

Accepted Answer

According to valuation. A tax based on the value of the thing being taxed.

Question 5

Community Property

Accepted Answer

Property acquired during marriage and owned equally by both spouses.

Question 6

Encumbrance

Accepted Answer

Any claim, lien, charge or liability attached to and binding upon real property.

Question 7

Eminent Domain

Accepted Answer

The right of a government to take private property for public use.

Question 8

Escrow

Accepted Answer

A process in which a neutral third party holds the documents and money in a real estate transaction.

Question 9

Fee Simple Absolute

Accepted Answer

The maximum possible estate one can possess in real property; also referred to as fee simple or fee.

Question 10

Homestead

Accepted Answer

The house and lot of a homeowner which the head of the household can declare in a legal document to be the principal residence.

Question 11

Joint Tenancy

Accepted Answer

Ownership of real estate between two or more parties named in one conveyance as joint tenants.

Question 12

Leasehold Estate

Accepted Answer

A tenant's right to occupy real estate during the term of the lease.

Question 13

Marketable Title

Accepted Answer

A title that is free from liens or legal questions.

Question 14

Nonconforming Use

Accepted Answer

A use of property that was allowed under the zoning regulations at the time the use was established but is not permitted by the current zoning.

Question 15

Police Power

Accepted Answer

The authority of a state to adopt and enforce laws and regulations to promote and protect the public health, safety, morals, and general welfare.

Question 16

Quitclaim Deed

Accepted Answer

A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

Question 17

Redemption Period

Accepted Answer

The period during which a former owner can reclaim foreclosed property.

Question 18

Severalty

Accepted Answer

Ownership of real property by one person only.

Question 19

Statute of Frauds

Accepted Answer

A state statute requiring certain contracts to be in writing.

Question 20

Tax Lien

Accepted Answer

A claim against property for unpaid taxes.

Question 21

Undivided Interest

Accepted Answer

Ownership by two or more persons that gives each the right to use the entire property.

Question 22

Variance

Accepted Answer

Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws.

Question 23

Warranty Deed

Accepted Answer

A deed in which the grantor fully warrants good clear title to the premises.

Question 24

Zoning

Accepted Answer

A governmental regulation that controls the use of land.

Question 25

Tenancy in Common

Accepted Answer

Ownership of real property by two or more persons, each of whom has an undivided interest.

Question 26

Subordination Agreement

Accepted Answer

A legal agreement which establishes the priority of one creditor over another.

Question 27

Restrictive Covenant

Accepted Answer

A limitation on the use of property, usually found in the deed.

Question 28

Promissory Note

Accepted Answer

A written promise to repay a specified amount of money at a certain time.

Question 29

Property Management

Accepted Answer

The management of property on behalf of the owner.

Question 30

Principal

Accepted Answer

The amount of money originally invested, excluding earnings and interest.

Question 31

Principal, Interest, Taxes, Insurance (PITI)

Accepted Answer

The four components of a mortgage payment.

Question 32

Prepayment Penalty

Accepted Answer

A fee charged by the lender when the borrower pays off the loan early.

Question 33

Pre-Approval

Accepted Answer

A lender's commitment to lend to a homebuyer.

Question 34

Power of Attorney

Accepted Answer

A legal document authorizing one person to act on behalf of another.

Question 35

Open Listing

Accepted Answer

A listing contract in which the seller reserves the right to sell the property himself.

Question 36

Mortgage Insurance Premium (MIP)

Accepted Answer

Insurance issued by the FHA to increase lending to borrowers who might not qualify for a conventional mortgage.

Question 37

Listing Agreement

Accepted Answer

A contract between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer.

Question 38

Land Contract

Accepted Answer

A contract used in a sale of real property where the seller retains title to the property until all payments have been made.

Question 39

Installment Sale

Accepted Answer

A property sale in which the buyer makes payments to the seller over a period of time.

Question 40

Gross Rent Multiplier (GRM)

Accepted Answer

A rough measure of the value of an investment property.

Question 41

General Warranty Deed

Accepted Answer

A deed in which the grantor guarantees that the title is good and free from all encumbrances.

Question 42

Foreclosure

Accepted Answer

The legal process by which a borrower's interest in a mortgaged property is extinguished due to default.

Question 43

Fair Housing Act

Accepted Answer

A federal law that prohibits discrimination in home sales, rentals, and financing.

Question 44

Exclusive Right to Sell

Accepted Answer

A listing agreement giving a broker the right to collect a commission no matter who sells the property during the listing period.

Question 45

Due on Sale Clause

Accepted Answer

A clause in a mortgage contract requiring the borrower to pay the entire outstanding loan sum upon sale or transfer of the property.

Question 46

Deed of Trust

Accepted Answer

A document by which title to real property is transferred to a third party trustee as security for an obligation owed by the borrower to the lender.

Question 47

Cost Approach

Accepted Answer

A method of valuing real property by considering the cost to replace or reproduce the improvement added to the land's market value.

Question 48

Capital Gains Tax

Accepted Answer

A tax on the growth in value of investments incurred when individuals and corporations sell those investments.

Question 49

Buyer Agency Agreement

Accepted Answer

An agreement between a buyer and a real estate broker defining the broker's duties and obligations to the buyer.

Question 50

Balloon Payment

Accepted Answer

A large payment that may be charged at the end of a mortgage loan or lease.

Question 51

Assignment

Accepted Answer

The transfer of a right, interest, or property from one person to another.

Question 52

ARM (Adjustable-Rate Mortgage)

Accepted Answer

A mortgage with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued.

Question 53

Amortization

Accepted Answer

The process of paying off a debt over time through regular payments.

Question 54

Alienation Clause

Accepted Answer

A clause in a loan agreement that allows the lender to demand full repayment of the loan if the property is sold.

Question 55

Adverse Possession

Accepted Answer

A method of acquiring title to real property through possession of the property for a statutory period under certain conditions.

Question 56

Acceleration Clause

Accepted Answer

A clause in a loan agreement that requires the borrower to repay the entire loan immediately under certain conditions.

Question 57

Absorption Rate

Accepted Answer

The rate at which available homes are sold in a specific real estate market during a given time period.

Question 58

Abandonment

Accepted Answer

The voluntary surrender of property, owned or leased, without naming a successor as owner or tenant.

Question 59

Lease Option

Accepted Answer

A lease agreement that gives the tenant the option to purchase the property at a predetermined price.

Question 60

Lis Pendens

Accepted Answer

A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court.

Question 61

Mechanic's Lien

Accepted Answer

A statutory lien on a specific property for labor or materials contributed to a work of improvement.

Question 62

Net Operating Income (NOI)

Accepted Answer

The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses.

Question 63

Quiet Enjoyment

Accepted Answer

The right of a owner or tenant to use the property without interference.

Question 64

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A law protecting consumers from abuses during the residential real estate purchase and loan process.

Advanced Arizona Real Estate Agent Flashcards