Question 1

Homestead Declaration

Accepted Answer

A document filed by homeowners to protect a portion of their home's value from creditors.

Question 2

Encumbrance

Accepted Answer

A claim against a property by a party that is not the owner.

Question 3

Contingency Clause

Accepted Answer

A contract condition that suspends the sale until certain events happen, such as a home inspection.

Question 4

Easement

Accepted Answer

The right of one party to use the property of another for a specific purpose.

Question 5

Abstract of Title

Accepted Answer

A summary of the public records relating to the ownership of a particular piece of property.

Question 6

Conveyance

Accepted Answer

The transfer of property from one person to another.

Question 7

Metes and Bounds

Accepted Answer

A method of describing the boundaries of land using physical features and directions.

Question 8

Fee Simple

Accepted Answer

The greatest possible interest a person can have in real estate.

Question 9

Quitclaim Deed

Accepted Answer

A deed that transfers only that title or right to a property that the holder has at the time of the transfer.

Question 10

Adjustable-Rate Mortgage (ARM)

Accepted Answer

A mortgage with an interest rate that may increase or decrease at specified intervals.

Question 11

Equity

Accepted Answer

The value of a homeowner's unencumbered interest in their real estate.

Question 12

Joint Tenancy

Accepted Answer

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

Question 13

Zoning

Accepted Answer

Municipal or local government laws that dictate how real property can and cannot be used in certain areas.

Question 14

Certificate of Occupancy

Accepted Answer

A document issued by a local government agency certifying that a building complies with building codes and is safe for occupancy.

Question 15

Leasehold Estate

Accepted Answer

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

Question 16

Ad Valorem Tax

Accepted Answer

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

Question 17

Subordination Agreement

Accepted Answer

An agreement which makes the current claim in subordinate to a future claim.

Question 18

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.

Question 19

Appurtenance

Accepted Answer

A right, privilege, or improvement belonging to and passing with a principal property.

Question 20

Balloon Payment

Accepted Answer

A large payment that typically makes up for lower payments made earlier in a loan term.

Question 21

Capital Gain

Accepted Answer

The profit from the sale of a capital asset like real estate.

Question 22

Depreciation

Accepted Answer

A decrease in the value of property due to wear and tear or obsolescence.

Question 23

Eminent Domain

Accepted Answer

The right of a government to take private property for public use.

Question 24

Fixture

Accepted Answer

An item of personal property that becomes real property when attached in a permanent manner to real estate.

Question 25

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 26

Hazard Insurance

Accepted Answer

Insurance coverage that compensates for physical damage by a named peril.

Question 27

Implied Warranty of Habitability

Accepted Answer

A legal doctrine that requires landlords to maintain their rental properties in a condition fit for human habitation.

Question 28

Joint Venture

Accepted Answer

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Question 29

Land Contract

Accepted Answer

A contract between a buyer and seller of real property in which the seller provides the buyer financing.

Question 30

Marketable Title

Accepted Answer

A title that is free and clear of encumbrances, which an informed and prudent buyer would accept.

Question 31

Nonconforming Use

Accepted Answer

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

Question 32

Offer and Acceptance

Accepted Answer

Two essential components of a valid contract; the "meeting of the minds."

Question 33

Principal

Accepted Answer

The amount of money originally invested or loaned, on which basis interest and returns are calculated.

Question 34

Quiet Enjoyment

Accepted Answer

The right of a land or lease holder to use and enjoy the property without disturbance by the landlord or seller.

Question 35

Rescission

Accepted Answer

The cancellation of a contract and the return of the parties to the positions they would have had if the contract had not been made.

Question 36

Severalty Ownership

Accepted Answer

Ownership by one person only. Sole ownership.

Question 37

Tax Lien

Accepted Answer

A claim by the government that attaches to real estate due to unpaid taxes.

Question 38

Undivided Interest

Accepted Answer

Ownership by two or more persons that gives each the right to use the entire property.

Question 39

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 40

Warranty of Fitness

Accepted Answer

In a sales contract, the implied condition that the item sold is fit for its purpose.

Question 41

X-Efficiency

Accepted Answer

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

Question 42

Yield

Accepted Answer

The income return on an investment, such as the interest or dividends received.

Question 43

Zero Lot Line

Accepted Answer

A type of construction in which a building is placed close to the property line.

Question 44

Assemblage

Accepted Answer

The process of consolidating adjacent lots into one larger lot.

Question 45

Benchmark

Accepted Answer

A permanent reference mark or point established for use by surveyors in measuring differences in elevation.

Question 46

Common Area Assessments

Accepted Answer

Levies against individual unit owners in a condominium or planned unit development (PUD) for additional capital to defray homeowners' association costs and expenses.

Question 47

Due Diligence

Accepted Answer

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

Question 48

Estoppel Certificate

Accepted Answer

A document used in due diligence in real estate and mortgage activities. It is a document often completed, but at least signed, by a tenant used in his or her landlord's proposed transaction with a third party.

Question 49

Foreclosure

Accepted Answer

The legal process by which a borrower's interest in mortgaged property is extinguished due to failure to keep up mortgage payments.

Vermont Real Estate Agent Advanced Flashcard Set