Question 1

Abstract of Title

Accepted Answer

A summary report of what the title search found in the land records.

Question 2

Acceleration Clause

Accepted Answer

A clause in a loan contract that allows the lender to demand repayment of the entire loan balance.

Question 3

Adverse Possession

Accepted Answer

The process by which someone may acquire title to another's land through possession and use.

Question 4

Affidavit of Title

Accepted Answer

A written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public.

Question 5

Amortization

Accepted Answer

The process of gradually paying off a loan over an established period of time through regular payments.

Question 6

Appurtenance

Accepted Answer

A right, privilege or improvement that belongs to and passes with the land.

Question 7

Bundle of Rights

Accepted Answer

Legal rights of the real estate title holder, including possession, control, exclusion, enjoyment, and disposition.

Question 8

Capital Gain

Accepted Answer

Profit earned from the sale of a capital asset, such as real estate.

Question 9

Chain of Title

Accepted Answer

The historical sequence of transfers of title to a property.

Question 10

Closing Statement

Accepted Answer

A document which provides an itemized listing of the funds that are payable at closing.

Question 11

Cloud on Title

Accepted Answer

Any claim or potential claim that affects the title to real property.

Question 12

Comparative Market Analysis

Accepted Answer

An estimate of a home's value based on the recent sales of similar real estate in the area.

Question 13

Constructive Notice

Accepted Answer

A legal fiction that assumes a person got notice even if they actually didn't because it was publicly available.

Question 14

Contingency

Accepted Answer

A condition that must be met before a contract is legally binding.

Question 15

Deed in Lieu of Foreclosure

Accepted Answer

A deed instrument in which a borrower conveys all interest in a real property to the lender to satisfy a loan.

Question 16

Dual Agency

Accepted Answer

When a real estate agent represents both the buyer and the seller in a transaction.

Question 17

Easement by Prescription

Accepted Answer

A right to use another's land, established by long usage.

Question 18

Encroachment

Accepted Answer

A building, part of a building, or obstruction that physically intrudes upon, overlaps, or trespasses upon the property of another.

Question 19

Equity

Accepted Answer

The difference between the market value of property and the homeowner's debt on the property.

Question 20

Fixture

Accepted Answer

Personal property that becomes real property when attached in a permanent manner to real estate.

Question 21

Gross Rent Multiplier

Accepted Answer

A ratio that is used in the commercial real estate market to calculate the value of income producing properties.

Question 22

Habendum Clause

Accepted Answer

A clause in a deed that defines the type of interest and rights to be given to the new property owner.

Question 23

Implied Warranty of Habitability

Accepted Answer

A legal doctrine that requires landlords to maintain their properties in a condition fit for human habitation.

Question 24

Joint Tenancy

Accepted Answer

A form of co-ownership that includes the right of survivorship.

Question 25

Land Contract

Accepted Answer

A contract between a buyer and a seller of real estate, where the seller provides the financing.

Question 26

Marketable Title

Accepted Answer

A title that is free from encumbrances or legal questions as to ownership of the property.

Question 27

Net Operating Income

Accepted Answer

The income that is left over after all operating expenses have been deducted from the gross income.

Question 28

Open Listing

Accepted Answer

A property listing that uses multiple real estate agents in a nonexclusive arrangement.

Question 29

Physical Deterioration

Accepted Answer

The loss of value due to the physical wear and tear on a property.

Question 30

Quiet Enjoyment

Accepted Answer

The right of a property owner or tenant to enjoy his or her property without interference.

Question 31

Rate of Return

Accepted Answer

The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.

Question 32

Severalty Ownership

Accepted Answer

Ownership by one individual or a single legal entity.

Question 33

Subordination Clause

Accepted Answer

A clause in a contract that allows a mortgage to be ranked below a subsequent mortgage in priority.

Question 34

Tenancy in Common

Accepted Answer

A type of joint tenancy of property without right of survivorship; each co-tenant's portion is distributable under a will.

Question 35

Time is of the Essence

Accepted Answer

A phrase in a contract that means performance by one party at or within the period specified in the contract is necessary to enable that party to require performance by the other.

Question 36

Usury

Accepted Answer

The act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law.

Question 37

Variance

Accepted Answer

A request to deviate from current zoning requirements.

Question 38

Writ of Attachment

Accepted Answer

A court order to "attach" or seize an asset. It is issued by a court to a law enforcement officer or sheriff.

Question 39

Yield

Accepted Answer

The annual net income that an investor receives from an investment expressed as a percentage of the investment's cost or current market value.

Question 40

Zoning Ordinance

Accepted Answer

A law that specifies the areas in which residential, industrial, recreational, or commercial activities may take place.

Question 41

Allodial System

Accepted Answer

A real property ownership system where real property is owned free and clear of any superior landlord. In the United States, all property ownership, is a modification of the allodial system.

Question 42

Boot

Accepted Answer

The money or fair market value of any property received by the investor through a 1031 exchange that is not like-kind property.

Question 43

Hypothecation

Accepted Answer

The act of pledging something (such as a house) as security for a debt without giving up possession of it.

Advanced Concepts for Iowa Real Estate Agents