Question 1

Appurtenance

Accepted Answer

Anything attached to a property, such as a garage or a shed, that is considered a part of the property.

Question 2

Bundle of Rights

Accepted Answer

The rights of an owner to possess, control, enjoy, sell, lease, or bestow the property.

Question 3

Chattel

Accepted Answer

Personal property that may be movable and is not attached to the land.

Question 4

Deed

Accepted Answer

Legal document that conveys ownership of a property.

Question 5

Easement

Accepted Answer

A legal right to use someone else's land for a specific purpose.

Question 6

Fee Simple

Accepted Answer

The highest form of property ownership, with unlimited duration and inheritability.

Question 7

Grantee

Accepted Answer

The person who receives the deed to a property.

Question 8

Habendum Clause

Accepted Answer

The section of a deed that defines the ownership interest the grantee is receiving.

Question 9

Implied Warranty of Habitability

Accepted Answer

The assumed responsibility of a landlord to provide a habitable living environment for tenants.

Question 10

Joint Tenancy

Accepted Answer

Ownership of property by two or more people with the right of survivorship.

Question 11

Kicker

Accepted Answer

In real estate, a clause or provision that is triggered under certain conditions.

Question 12

Leasehold Estate

Accepted Answer

An estate that gives the holder (tenant) a right to possession, but not ownership, of a property for a determined period.

Question 13

Marketable Title

Accepted Answer

A title that is free and clear of encumbrances, making it readily transferable.

Question 14

Net Lease

Accepted Answer

A lease in which the tenant pays, in addition to rent, certain costs associated with the property.

Question 15

Offer and Acceptance

Accepted Answer

Two essential components of a valid contract; the offer initiates the contract and the acceptance makes the agreement binding.

Question 16

Principal

Accepted Answer

The amount of money originally borrowed in a mortgage.

Question 17

Quitclaim Deed

Accepted Answer

A deed that transfers only the ownership interest the grantor has at the time of the deed's delivery.

Question 18

Realtor®

Accepted Answer

A real estate professional who is a member of the National Association of Realtors.

Question 19

Stigmatized Property

Accepted Answer

A property that buyers or tenants may shun for reasons unrelated to its physical condition or features.

Question 20

Tenancy in Common

Accepted Answer

Shared ownership of a single property among two or more persons; interests need not be equal, and no right of survivorship exists.

Question 21

Unencumbered Property

Accepted Answer

Property free of liens and other encumbrances, clear to be sold or mortgaged by the owner.

Question 22

Variance

Accepted Answer

A granted exception to municipal zoning laws.

Question 23

Warranty Deed

Accepted Answer

A deed in which the grantor guarantees that he or she holds clear title to a piece of real estate and has the right to sell it.

Question 24

X-Efficiency

Accepted Answer

The degree of efficiency maintained by individuals and firms under conditions of imperfect competition.

Question 25

Yield

Accepted Answer

The income return on an investment, such as rental income.

Question 26

Zoning

Accepted Answer

Government regulation of the use of real estate based on the location of the property.

Question 27

Acceleration Clause

Accepted Answer

A contract provision that allows a lender to require a borrower to repay all or part of a loan if certain requirements are not met.

Question 28

Blanket Mortgage

Accepted Answer

A mortgage that covers more than one piece of real property.

Question 29

Constructive Eviction

Accepted Answer

A situation in which a tenant is forced to leave a rental unit because of severe uninhabitable conditions.

Question 30

Depreciation

Accepted Answer

A decrease or loss in property value due to wear, age, or economic factors.

Question 31

Equity

Accepted Answer

The monetary interest or value that an owner has in a property over and above any mortgage indebtedness.

Question 32

Gross Lease

Accepted Answer

A type of lease where the landlord pays for all property charges usually included in ownership.

Question 33

Homestead Exemption

Accepted Answer

A legal provision that protects a certain amount of the value of a home from creditors.

Question 34

Installment Sale

Accepted Answer

A sale of property where the seller finances the buyer's purchase, and the buyer pays the seller the sale price over time.

Question 35

Joint Venture

Accepted Answer

A business arrangement in which two or more parties agree to pool their resources to accomplish a specific task.

Question 36

Lien

Accepted Answer

A claim or charge on property for payment of some debt, obligation or duty.

Question 37

Metes and Bounds

Accepted Answer

A system of land description which involves identifying distances and directions.

Question 38

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 permitted.

Question 39

Option

Accepted Answer

A contract that gives one party the right to purchase or lease a property within a certain time period.

Question 40

Prepayment Penalty

Accepted Answer

A charge imposed by a mortgage lender on a borrower who wants to pay off part or all of a mortgage loan in advance.

Question 41

Quiet Title Action

Accepted Answer

A lawsuit to determine who has title to a piece of property or to remove a cloud from the title.

Question 42

Restrictive Covenant

Accepted Answer

A promise included in a deed that the property will or will not be used in certain ways.

Question 43

Statute of Frauds

Accepted Answer

A law requiring that certain contracts must be in writing to be enforceable.

Question 44

Trust Deed

Accepted Answer

A legal document given by a borrower to a trustee, who holds it as security for a loan between a borrower and lender.

Question 45

Usury

Accepted Answer

Charging an interest rate on a loan that is higher than the maximum rate allowed by law.

Question 46

Vendee

Accepted Answer

The buyer in a land contract.

Question 47

Wraparound Mortgage

Accepted Answer

A new mortgage that includes the remaining balance on an old mortgage plus a new amount.

Question 48

Year-to-Year Tenancy

Accepted Answer

A lease agreement that continues for successive periods until the landlord or tenant gives notice to terminate.

Question 49

Zoning 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 50

Abstract of Title

Accepted Answer

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

Question 51

Bridge Loan

Accepted Answer

A short-term loan used until a person secures permanent financing.

Question 52

Covenant of Quiet Enjoyment

Accepted Answer

The promise made by the landlord to the tenant that the tenant will have the right to peace, quiet, and privacy in the premises.

Question 53

Dual Agency

Accepted Answer

Representation of opposing parties (buyer and seller) in a transaction by a real estate agent.

Question 54

Encroachment

Accepted Answer

An illegal intrusion in a highway or navigable river, with or without intruding on a neighbor's property.

Question 55

Fair Housing Act

Accepted Answer

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

Question 56

General Agent

Accepted Answer

An agent authorized to handle all of the principal's affairs in one area or in specified areas.

Question 57

Hypothecation

Accepted Answer

The act of pledging real property as security for a debt without giving up possession of it.

Question 58

Income Approach

Accepted Answer

A property appraisal method that estimates the value of real estate by looking at the income it generates.

Question 59

Joint and Several Liability

Accepted Answer

A legal concept that makes each partner in a partnership liable for all the debts of the partnership.

California Real Estate Agent Exam: Advanced Terminology Flashcards