Question 1

Actual Notice

Accepted Answer

Knowledge that is directly and expressly given, making it unequivocally clear.

Question 2

Appurtenance

Accepted Answer

A right or privilege that is a part of the ownership of property, such as a right of way to a highway or a shared driveway.

Question 3

Bundle of Rights

Accepted Answer

The rights of an owner to possess, use, enjoy, encumber, will, sell, or lease property.

Question 4

Chain of Title

Accepted Answer

The recorded history of matters that affect the title to a specific parcel of real property, such as ownership, encumbrances, and liens.

Question 5

Constructive Notice

Accepted Answer

Knowledge of a fact that a person could have obtained by reasonable diligence or by inquiry into public records.

Question 6

Cost Approach

Accepted Answer

A method of estimating the value of real property by figuring the cost of building a similar property at current prices and subtracting depreciation.

Question 7

Deed Restriction

Accepted Answer

A provision in a deed controlling the use of the land.

Question 8

Easement

Accepted Answer

The right to use the land of another for a specific purpose.

Question 9

Encroachment

Accepted Answer

A building or some portion of it, or a wall or fence, that extends beyond the land of the owner and illegally intrudes upon that of an adjoining owner.

Question 10

Fee Simple

Accepted Answer

The highest interest in real estate recognized by law; the holder is entitled to all rights to the property.

Question 11

General Warranty Deed

Accepted Answer

A type of 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 you.

Question 12

Homestead

Accepted Answer

A statutory protection of a residence from the claims of certain creditors and judgments up to a specified amount.

Question 13

Income Approach

Accepted Answer

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

Question 14

Joint Tenancy

Accepted Answer

A form of co-ownership that includes the right of survivorship.

Question 15

Land Contract

Accepted Answer

A contract used in a sale of real property where the seller retains title to the property until all payments have been made.

Question 16

Market Value

Accepted Answer

The most probable price property would bring in an arm's length transaction under normal conditions on the open market.

Question 17

Nonconforming Use

Accepted Answer

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

Question 18

Open Listing

Accepted Answer

A type of real estate listing contract wherein any number of brokers can market the property, but only the selling broker is entitled to a commission.

Question 19

Percentage Lease

Accepted Answer

A lease whose rental is based on a percentage of the monthly or annual gross sales made on the premises.

Question 20

Qualified Fee Estate

Accepted Answer

An estate that is subject to certain restrictions imposed by the owner.

Question 21

Reversionary Right

Accepted Answer

The residual interest that a person has in a property upon the termination of a life estate.

Question 22

Sale and Leaseback

Accepted Answer

A transaction in which, at the time of sale, the seller retains occupancy by concurrently agreeing to lease the property from the buyer.

Question 23

Trust Deed

Accepted Answer

A real property security device (very similar to a mortgage) used in some states that involves the transfer of the title to a trustee by a borrower who is called a trustor.

Question 24

Usury

Accepted Answer

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

Question 25

Variance

Accepted Answer

Permission obtained from governmental zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning laws.

Question 26

Abstract of Title

Accepted Answer

A summary of the public records relating to the title to a particular piece of land.

Question 27

Balloon Payment

Accepted Answer

The final lump sum payment that is due at the termination of a balloon mortgage.

Question 28

Capital Gain

Accepted Answer

Profit earned from the sale of an asset.

Question 29

Depreciation

Accepted Answer

A loss of utility and thus value from physical deterioration, externalities, or functional obsolescence.

Question 30

Equity

Accepted Answer

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

Question 31

Fixture

Accepted Answer

Personal property that becomes real property when attached in a permanent manner to real estate.

Question 32

Gross Rent Multiplier

Accepted Answer

A figure used as a multiplier of the gross monthly rental income of a property to produce an estimate of the property's value.

Question 33

Ingress and Egress

Accepted Answer

The right to enter (ingress) and leave (egress) a parcel of land.

Question 34

Jumbo Loan

Accepted Answer

A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, also called a non-conforming loan.

Question 35

Lis Pendens

Accepted Answer

A recorded notice stating that a lawsuit has been filed concerning the title, or some claimed interest in the parcel of real property.

Question 36

Metes and Bounds

Accepted Answer

A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land.

Question 37

Net Operating Income (NOI)

Accepted Answer

The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses.

Question 38

Option

Accepted Answer

An agreement to keep open for a set period an offer to sell or purchase property.

Question 39

Principal Meridian

Accepted Answer

The main imaginary line running north and south and crossing a base line at a definite point, used by surveyors for reference in locating and describing land under the government (rectangular) survey system.

Question 40

Quiet Title Action

Accepted Answer

A circuit court action intended to establish or settle the title to a particular property, especially where there is a cloud on the title.

Question 41

Riparian Rights

Accepted Answer

The rights of an owner whose land borders on a stream or water body to the use and enjoyment of the water which is adjacent to or flows over the owners' land.

Question 42

Subdivision

Accepted Answer

A tract of land divided by the owner, known as the subdivider, into blocks, building lots, and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.

Question 43

Tenancy In Common

Accepted Answer

A type of joint tenancy of property without right of survivorship; each co-tenant's portion is distributable under a will.

Question 44

Unilateral Contract

Accepted Answer

A contract in which one party makes an obligation to perform without receiving in return any express promise of performance from the other party, such as an open listing contract.

Question 45

Vendor

Accepted Answer

The person selling. Often used in land contract sales. Also known as the seller.

Question 46

Wraparound Mortgage

Accepted Answer

A method of refinancing in which the new mortgage is placed in a secondary or subordinate position. The new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional sums are advanced by the lender.

Question 47

Zoning

Accepted Answer

A regulation of the use of property by local government, restricting a particular property for a specific use.

Utah Real Estate Agent Flashcard Set: Advanced Terms and Concepts