Question 1

Tenancy in Common

Accepted Answer

A type of concurrent estate in real estate property where each owner owns a portion and can sell it or will it to their heirs.

Question 2

Joint Tenancy

Accepted Answer

A legal term for a type of ownership where two or more people own property together, each with equal rights and obligations.

Question 3

Periodic Tenancy

Accepted Answer

A lease agreement that continues for successive periods until the tenant or landlord ends it.

Question 4

Fee Simple Estate

Accepted Answer

The most complete form of ownership of real estate, which includes unlimited duration, disposition and inheritability.

Question 5

Life Estate

Accepted Answer

An estate in real property for the life of a living person. Upon that person's death, the estate reverts back to the grantor or to a third party.

Question 6

Servient Estate

Accepted Answer

Property that is subject to an easement.

Question 7

Dominant Estate

Accepted Answer

Property that benefits from an easement.

Question 8

Easement Appurtenant

Accepted Answer

An easement that benefits one piece of land (the dominant estate) to the detriment of another (the servient estate).

Question 9

Easement in Gross

Accepted Answer

A personal right to use the land of another for a specific purpose. It does not attach to the land or pass with the land.

Question 10

Adverse Possession

Accepted Answer

A principle of real estate law whereby somebody who possesses the land of another for an extended period of time may be able to claim legal title to that land.

Question 11

Homestead Exemption

Accepted Answer

A legal provision that protects a portion of a homeowner's principal residence from creditors.

Question 12

Redlining

Accepted Answer

A discriminatory practice in real estate, typically involving lenders that refuse to lend money or extend credit to borrowers in certain areas of town.

Question 13

Steering

Accepted Answer

The illegal practice of guiding prospective home buyers towards or away from certain neighborhoods based on their race, religion, or ethnicity.

Question 14

Blockbusting

Accepted Answer

A discriminatory and illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of minority persons into the neighborhood.

Question 15

Restrictive Covenant

Accepted Answer

A clause in a deed or lease to real property that limits what the owner can do with the property.

Question 16

Escrow

Accepted Answer

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Question 17

Title Insurance

Accepted Answer

Insurance that protects the holder from financial loss sustained from defects in a title to a property.

Question 18

Abstract of Title

Accepted Answer

A condensed history of the title to a piece of land that lists any transfers in ownership, as well as any liabilities attached to it such as mortgages.

Question 19

Deed of Trust

Accepted Answer

A document that pledges real property to secure a loan.

Question 20

Balloon Payment

Accepted Answer

A large payment that must be made, usually at the end of a mortgage term or other long-term loan.

Question 21

Equity

Accepted Answer

The difference between the current market value of a property and the amount the owner still owes on the mortgage.

Question 22

Depreciation

Accepted Answer

A decrease in the value of property due to wear and tear or obsolescence.

Question 23

Appraisal

Accepted Answer

An estimate of a property's value by a qualified appraiser.

Question 24

Closing Costs

Accepted Answer

Fees paid at the end of a real estate transaction. This is when the title to the property is conveyed to the buyer.

Question 25

Zoning Ordinance

Accepted Answer

A law passed by a local government regulating the size, type, structure, nature, and use of buildings.

Question 26

Variance

Accepted Answer

A permit that allows a property owner to use his or her property in a manner that deviates from the zoning ordinance.

Question 27

Nonconforming Use

Accepted Answer

A use of property that was allowed under the zoning regulations at the time the use was established but which is no longer fully allowed due to changes in the zoning regulations.

Question 28

Assessed Value

Accepted Answer

The dollar value assigned to a property by a public tax assessor for the purposes of measuring applicable taxes.

Question 29

Mill Levy

Accepted Answer

The tax rate that is applied to the assessed value of a property. One mill is one dollar per $1,000 dollars of assessed value.

Question 30

Tax Lien

Accepted Answer

A lien imposed by law upon a property to secure the payment of taxes.

Question 31

Mechanic's Lien

Accepted Answer

A legal claim against a property for unpaid construction, labor, or material costs.

Question 32

Lis Pendens

Accepted Answer

A written notice that a lawsuit has been filed involving the title to real estate or some interest in that real property.

Question 33

Net Operating Income (NOI)

Accepted Answer

A calculation used to analyze the profitability of income-generating real estate investments.

Question 34

Capitalization Rate

Accepted Answer

A rate of return on a real estate investment property based on the expected income that the property will generate.

Question 35

Amortization

Accepted Answer

The process of gradually paying off a debt, often through a mortgage, over a period of time.

Question 36

Due Diligence

Accepted Answer

An investigation or audit of a potential investment or product to confirm all facts and financial information.

Question 37

Contingency

Accepted Answer

A condition that must be met in order for a real estate contract to become binding.

Question 38

Earnest Money

Accepted Answer

A deposit made to a seller showing the buyer's good faith in a transaction.

Question 39

Brokerage

Accepted Answer

The business or office where a broker works. The broker represents sellers or buyers of real estate/real property.

Question 40

Comparative Market Analysis (CMA)

Accepted Answer

An examination of the prices at which similar properties in the same area recently sold.

Question 41

Encumbrance

Accepted Answer

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

Question 42

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, and in most cases operates, income-producing real estate.

Question 43

Fair Housing Act

Accepted Answer

A law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.

Question 44

1031 Exchange

Accepted Answer

A transaction defined by §1031 of the Internal Revenue Code, allowing investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes.

Question 45

Title Defect

Accepted Answer

An issue with the title which prevents a clear exchange of the ownership of the property.

Question 46

Exclusive Right to Sell

Accepted Answer

A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker, regardless of whether the property is sold through the efforts of the listing broker, the seller, or anyone else.

Advanced Kansas Real Estate Agent Flashcards