Question 1

Joint Tenancy

Accepted Answer

A form of co-ownership where the surviving owner automatically receives any shares of a deceased owner.

Question 2

Tenancy in Common

Accepted Answer

A form of concurrent estate with no right of survivorship; each co-tenant's share is distributable under a will.

Question 3

Fee Simple Absolute

Accepted Answer

The highest possible ownership interest that can be held in real property, with unrestricted powers to transfer it at will.

Question 4

Leasehold Estate

Accepted Answer

An estate that gives the holder (Tenant) a right to possession, but not ownership, of a property for a predetermined amount of time.

Question 5

Easement

Accepted Answer

The right to use another person's land for a specific purpose.

Question 6

Encroachment

Accepted Answer

A situation in real estate where a property owner violates the property rights of his neighbor by building on or extending a structure to the neighbor's land or property.

Question 7

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 8

Title

Accepted Answer

Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.

Question 9

Deed

Accepted Answer

A legal document that transfers some property right in real estate.

Question 10

Quitclaim Deed

Accepted Answer

A deed that conveys only that interest in the property in which the grantor has title.

Question 11

Warranty Deed

Accepted Answer

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

Question 12

Chain of Title

Accepted Answer

The history of all of the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Question 13

Title Insurance

Accepted Answer

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

Question 14

Listing Agreement

Accepted Answer

A contract in which a property owner provides an agent the rights to sell the property.

Question 15

Exclusive Right to Sell Listing

Accepted Answer

A contract that gives an agent the exclusive right to market a property for a specific period of time.

Question 16

Open Listing

Accepted Answer

A property listing that uses multiple real estate agents in a nonexclusive arrangement to find potential buyers.

Question 17

Net Listing

Accepted Answer

A real estate agreement in which the agent's commission is the difference between the sales proceeds and an amount desired by the owner of the property.

Question 18

Comparative Market Analysis (CMA)

Accepted Answer

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

Question 19

Appraisal

Accepted Answer

A professional and unbiased estimate of the value of a home or other piece of real estate.

Question 20

Capitalization Rate

Accepted Answer

The ratio of Net Operating Income (NOI) to property asset value.

Question 21

Fair Market Value

Accepted Answer

The price that a given property or asset would fetch in the marketplace, subject to the following conditions: presence of a willing buyer and seller, an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion.

Question 22

Lien

Accepted Answer

A legal right or claim upon a specific property which attaches to the property until a specific debt is satisfied.

Question 23

Mortgage

Accepted Answer

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Question 24

Foreclosure

Accepted Answer

The legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.

Question 25

Short Sale

Accepted Answer

A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.

Question 26

Redlining

Accepted Answer

A discriminatory practice by which banks, insurance companies etc. refuse or limit loans, mortgages, insurance, etc. within specific geographic areas, especially inner-city neighborhoods.

Question 27

Steering

Accepted Answer

The illegal practice of directing prospective home buyers towards or away from certain neighborhoods based on their race.

Question 28

Blockbusting

Accepted Answer

The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of minority groups in order to cause a turnover of properties in the neighborhood.

Question 29

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 30

Truth in Lending Act (TILA)

Accepted Answer

A U.S. law designed to help consumers understand the terms and costs of loans, including those in mortgage agreements.

Question 31

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A law requiring lenders to provide home buyers with information about known or estimated settlement costs.

Question 32

Conventional Loan

Accepted Answer

A type of mortgage loan that is not guaranteed by the government.

Question 33

Federal Housing Administration (FHA) Loan

Accepted Answer

A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration.

Question 34

Adjustable-Rate Mortgage (ARM)

Accepted Answer

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

Question 35

Fixed-Rate Mortgage

Accepted Answer

A type of mortgage that has a fixed interest rate for the entire term of the loan.

Question 36

Balloon Mortgage

Accepted Answer

A type of mortgage that requires a borrower to make a large final payment, known as a balloon payment, to pay off the remaining balance on the loan.

Question 37

Amortization

Accepted Answer

The paying off of debt with a fixed repayment schedule in regular installments over a period of time.

Question 38

Equity

Accepted Answer

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

Question 39

Home Inspection

Accepted Answer

An examination of a real estate property's condition, usually performed in connection with the property's sale.

Question 40

Homeowners Association (HOA)

Accepted Answer

An organization in a subdivision, planned community or condominium that makes and enforces rules for the properties within its jurisdiction.

Question 41

Escrow

Accepted Answer

A contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.

Question 42

Closing

Accepted Answer

The final step in executing a real estate transaction where the title is transferred from the seller to the buyer.

Question 43

Closing Costs

Accepted Answer

Fees paid at the closing of a real estate transaction, often including an attorney's fee, title insurance, recording fees, appraisal fee, loan fees, and amounts placed in escrow for taxes and insurance.

Question 44

Earnest Money

Accepted Answer

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

Question 45

Due Diligence

Accepted Answer

The process of gathering information about the condition and legal status of assets to be sold.

Question 46

Zoning

Accepted Answer

The process of dividing land in a municipality into zones in which certain land uses are permitted or prohibited.

Question 47

Variance

Accepted Answer

Permission that allows a property owner to depart from the literal requirements of a zoning ordinance that, because of special circumstances, cause a unique hardship.

Question 48

Contingency

Accepted Answer

A condition or action that must be met for a real estate contract to become binding.

Question 49

Exclusive Agency Listing

Accepted Answer

A contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission.

Question 50

Dual Agency

Accepted Answer

A situation in which a real estate agent represents both the buyer and the seller.

US Hawaii Real Estate Agent Flashcards