Question 1

Bundle of Rights

Accepted Answer

The rights of an owner of a freehold estate to possession, enjoyment, control, exclusion, and disposition.

Question 2

Ad Valorem Tax

Accepted Answer

A tax based on the assessed value of real estate or personal property.

Question 3

Appurtenance

Accepted Answer

Anything so annexed to land or used with it that it will pass with the conveyance of the land.

Question 4

Chattel

Accepted Answer

Personal property that may be attached to a building but not considered a part of it.

Question 5

Metes and Bounds

Accepted Answer

A method of describing the boundaries of land by directions and distances from a known point.

Question 6

Riparian Rights

Accepted Answer

Rights of landowners whose land abuts a watercourse.

Question 7

Littoral Rights

Accepted Answer

Rights of landowners whose land borders closed bodies of water.

Question 8

Air Rights

Accepted Answer

The rights to use the space above the physical surface of the land.

Question 9

Encumbrance

Accepted Answer

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

Question 10

Easement

Accepted Answer

A nonpossessory right to use another's property in a manner established by either express or implied agreement.

Question 11

Quiet Enjoyment

Accepted Answer

The right of a tenant to enjoy the use of the premises without interference.

Question 12

Fee Simple Estate

Accepted Answer

The maximum possible estate or right of ownership of real property, continuing forever.

Question 13

Life Estate

Accepted Answer

An estate that lasts for the life of some particular person.

Question 14

Joint Tenancy

Accepted Answer

Ownership by two or more persons with the right of survivorship.

Question 15

Tenancy in Common

Accepted Answer

Ownership by two or more persons who hold an undivided interest without right of survivorship.

Question 16

Abstract of Title

Accepted Answer

A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property.

Question 17

Title Insurance

Accepted Answer

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss affecting title or ownership.

Question 18

Redlining

Accepted Answer

The illegal practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants.

Question 19

Blockbusting

Accepted Answer

The illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area.

Question 20

Steering

Accepted Answer

The illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live.

Question 21

Exclusive Agency Listing

Accepted Answer

A written agreement between owner and agent giving the agent the right to collect a commission if the property is sold by anyone during the term of his agreement.

Question 22

Exclusive Right to Sell Listing

Accepted Answer

A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time.

Question 23

Open Listing

Accepted Answer

A property given to a number of brokers to sell or lease.

Question 24

Multiple Listing Service (MLS)

Accepted Answer

A marketing organization composed of member brokers who agree to share their listing agreements with one another.

Question 25

Net Listing

Accepted Answer

A listing based on the net price the seller will receive if the property is sold, with the broker's commission added to that price.

Question 26

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that requires lenders to provide home mortgage borrowers with information about transaction-related costs prior to settlement.

Question 27

Truth in Lending Act (TILA)

Accepted Answer

A federal law that requires disclosure of a truth-in-lending statement for consumer loans.

Question 28

Equitable Title

Accepted Answer

The interest held by one who has agreed to purchase but has not yet closed the transaction.

Question 29

Legal Title

Accepted Answer

The actual ownership of a property; the right of possession; the right of property.

Question 30

General Warranty Deed

Accepted Answer

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

Question 31

Special Warranty Deed

Accepted Answer

A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of their tenure and ownership of the property.

Question 32

Quitclaim Deed

Accepted Answer

A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.

Question 33

Bargain and Sale Deed

Accepted Answer

A deed that carries with it no warranties against liens or other encumbrances.

Question 34

Escheat

Accepted Answer

The reversion of property to the state when heirs capable of inheriting are lacking.

Question 35

Adverse Possession

Accepted Answer

The acquisition of title to real property through open occupation without the consent of the owner.

Question 36

Condemnation

Accepted Answer

A judicial or administrative proceeding to exercise the power of eminent domain.

Question 37

Eminent Domain

Accepted Answer

The right of a government to take private property for public use upon payment of its fair market value.

Question 38

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 39

Nonconforming Use

Accepted Answer

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

Question 40

Planned Unit Development (PUD)

Accepted Answer

A zoning designation for property developed at the same or slightly greater overall density than conventional development.

Question 41

Appraisal

Accepted Answer

An estimate of a property's present value.

Question 42

Sales Comparison Approach

Accepted Answer

A method of estimating the value of real property by comparing recent sales of comparable properties.

Question 43

Cost Approach

Accepted Answer

A method of estimating the value of real property by figuring the cost of building the house or other improvement on the lot, less depreciation.

Question 44

Income Approach

Accepted Answer

A method of valuing a property based on the monetary returns it can be expected to produce.

Question 45

Depreciation

Accepted Answer

Loss in value due to any cause.

Question 46

Amortization

Accepted Answer

The process of gradually paying off a debt over a period of time through regular installments.

Indiana Real Estate Agent Exam Prep Flashcards