Question 1

Ad valorem tax

Accepted Answer

A tax based on the assessed value of an item, such as real estate or personal property.

Question 2

Allodial system

Accepted Answer

A system of land ownership where the real estate is owned free and clear of any superior landlord or sovereign.

Question 3

Balloon mortgage

Accepted Answer

A type of mortgage that has low initial payments but requires one large payment at the end of the mortgage term.

Question 4

Bundle of rights

Accepted Answer

A set of legal rights that the owner of a real property has to possess, use, manage, enjoy, and dispose of the property.

Question 5

Capital gains

Accepted Answer

The profits an investor realizes when he or she sells the investment for a price that's higher than the purchase price.

Question 6

Common law dedication

Accepted Answer

The process where a land owner gives land to a government entity for public use.

Question 7

Deed restrictions

Accepted Answer

Limitations in the deed to a property that dictate certain uses that may or may not be made of the property.

Question 8

Encumbrance

Accepted Answer

Any claim, lien, charge, or liability attached to and binding upon real property which may lessen its value.

Question 9

Fee simple

Accepted Answer

The greatest possible estate in land, where the owner has the right to dispose of the property as they see fit.

Question 10

General warranty deed

Accepted Answer

A type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it.

Question 11

Homestead laws

Accepted Answer

Laws designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse.

Question 12

Implied warranty of habitability

Accepted Answer

The legal doctrine that requires landlords to offer and maintain livable premises for their tenants.

Question 13

Joint tenancy

Accepted Answer

A form of ownership by two or more individuals together that provides each tenant equal rights in the property, including the right of survivorship.

Question 14

Lis pendens

Accepted Answer

A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.

Question 15

Market value

Accepted Answer

The highest price a property would bring if it were available for sale in a competitive market.

Question 16

Nonconforming use

Accepted Answer

A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established.

Question 17

Open listing

Accepted Answer

A type of real estate listing contract whereby any number of brokers can sell the property and earn a commission.

Question 18

Plottage value

Accepted Answer

The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.

Question 19

Quitclaim deed

Accepted Answer

A deed that transfers a grantor's present interest, if any, in a given piece of real estate.

Question 20

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that gives consumers the right to review information about loan settlement costs.

Question 21

Sublease

Accepted Answer

An agreement giving tenancy to a lessee for a certain period of time within the lease term, but not for the entire term.

Question 22

Tax lien

Accepted Answer

A charge against property, created by operation of law, that secures the payment of taxes.

Question 23

Unilateral contract

Accepted Answer

A contract in which only one party is legally obligated to perform.

Question 24

Variance

Accepted Answer

A deviation from the set of rules a municipality applies to land use and land development, typically a zoning ordinance, building code or municipal code.

Question 25

Warranty of habitability

Accepted Answer

A legal doctrine that requires landlords to offer and maintain livable premises for their tenants.

Question 26

X-efficiency

Accepted Answer

A measure of management effectiveness in the use of economic resources, such as physical and human capital.

Question 27

Yield

Accepted Answer

The annual return on an investment, expressed as a percentage of the investment.

Question 28

Zoning

Accepted Answer

The legislative process used by local governments to regulate and control the use of land and property within their jurisdictions for compatibility and highest and best use.

Question 29

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 the property may have, such as mortgages.

Question 30

Bilateral contract

Accepted Answer

A contract where both parties promise to perform certain things.

Question 31

Chain of title

Accepted Answer

The sequence of historical transfers of title to a property, including conveyances, encumbrances, liens and wills.

Question 32

Deficiency judgment

Accepted Answer

A court order to pay the balance of a debt when the proceeds from the sale of the security are insufficient to pay off the debt.

Question 33

Eminent domain

Accepted Answer

The power of the government to take private property and convert it into public use.

Question 34

Fixture

Accepted Answer

Personal property that has been affixed to the land or a building that, by law, becomes part of the real property.

Question 35

Gross rent multiplier

Accepted Answer

A ratio used in real estate market analysis that is calculated by dividing the property's sale price by its gross annual rental income.

Question 36

Involuntary lien

Accepted Answer

A lien imposed against property without consent of an owner.

Question 37

Joint venture

Accepted Answer

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

Question 38

Kickback

Accepted Answer

A return of part or all of a sum received often because of a confidential agreement or coercion.

Question 39

Leasehold estate

Accepted Answer

An estate that gives the holder (Tenant) a temporary right to possession, without title.

Question 40

Mortgage

Accepted Answer

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property.

Question 41

Net operating income (NOI)

Accepted Answer

A calculation used to analyze real estate investments that generate income.

Question 42

Option

Accepted Answer

A contract giving the holder the right to buy or sell a property at a certain price for a certain period of time.

Question 43

Purchase money mortgage

Accepted Answer

A note secured by a mortgage or deed of trust given by a buyer, as borrower, to a seller, as lender, as part of the purchase price of the real estate.

Question 44

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 45

Radon

Accepted Answer

A colorless, chemically unreactive, radioactive gas that is present in some soils and rocks.

Question 46

Survey

Accepted Answer

The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of buildings on a lot, including the determination of any existing encroachments or easements.

Florida Real Estate Agent Advanced Concepts Flashcards