Question 1

Ad Valorem

Accepted Answer

A type of tax whose amount is based on the value of a transaction or a property.

Question 2

Amortization

Accepted Answer

The process of gradually paying off a debt over a fixed period of time.

Question 3

Appurtenance

Accepted Answer

A right, privilege, or improvement belonging to, and passing with, the land.

Question 4

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 5

Comparative Market Analysis (CMA)

Accepted Answer

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

Question 6

Condominium

Accepted Answer

A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title.

Question 7

Contract for Deed

Accepted Answer

A contract between a seller and buyer of real estate in which the buyer pays the purchase price over a period of time and the seller retains the title until the purchase price is paid in full.

Question 8

Deed

Accepted Answer

A legal document that conveys title to a property.

Question 9

Easement

Accepted Answer

A right to cross or otherwise use someone else's land for a specified purpose.

Question 10

Encumbrance

Accepted Answer

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

Question 11

Equity

Accepted Answer

The interest or value that an owner has in real estate over and above the liens against it.

Question 12

Escrow

Accepted Answer

The deposit of funds or documents with a neutral third party to be delivered upon the fulfillment of certain conditions.

Question 13

Fee Simple Absolute

Accepted Answer

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

Question 14

Fixtures

Accepted Answer

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

Question 15

General Warranty Deed

Accepted Answer

A type of deed where the grantor fully warrants good clear title to the premises.

Question 16

Gross Rent Multiplier

Accepted Answer

A rough measure of the value of an investment property, obtained by dividing the property's price by its gross annual rental income.

Question 17

Homestead

Accepted Answer

A legal life estate in land, a portion of which is protected or exempt from the claims of creditors.

Question 18

Joint Tenancy

Accepted Answer

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants.

Question 19

Land Contract

Accepted Answer

A contract used in a sale of real property where the seller retains title to the property until all or a specified part of the purchase price has been paid.

Question 20

Leasehold Estate

Accepted Answer

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

Question 21

Legal Description

Accepted Answer

A detailed way of describing a parcel of land for documents such as deeds and mortgages that will be accepted in a court of law.

Question 22

Market Value

Accepted Answer

The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time.

Question 23

Metes and Bounds

Accepted Answer

A method of describing real estate, using boundary lines with terminal points and angles, usually done by a surveyor.

Question 24

Mortgage

Accepted Answer

A legal agreement in which a person borrows money to buy property (such as a house) and pays back the money over a period of years.

Question 25

Net Operating Income (NOI)

Accepted Answer

The income produced by a piece of property, after operating expenses, but before debt service and taxes.

Question 26

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 27

Offer and Acceptance

Accepted Answer

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

Question 28

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 29

Prepayment Penalty

Accepted Answer

A charge imposed by a mortgage lender on a borrower who wants to pay off part or all of a mortgage loan in advance of schedule.

Question 30

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 31

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal statute that requires lenders to provide home mortgage borrowers with information about transaction-related costs prior to settlement, and again at settlement.

Question 32

Realtor®

Accepted Answer

A real estate professional who is a member of the National Association of Realtors®.

Question 33

Redemption Period

Accepted Answer

The time during which a property owner, after a foreclosure sale, can reclaim the property.

Question 34

Restrictive Covenant

Accepted Answer

A limitation on the use of real property generally written into the deed.

Question 35

Sale-Leaseback

Accepted Answer

A technique in which a seller deeds property to a buyer and the buyer simultaneously leases the property back to the seller.

Question 36

Section 8

Accepted Answer

A federal housing assistance program sponsored by the Department of Housing and Urban Development (HUD).

Question 37

Tenancy in Common

Accepted Answer

A form of concurrent property ownership in which each owner holds an undivided interest in the property.

Question 38

Title Insurance

Accepted Answer

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

Question 39

Usury

Accepted Answer

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

Question 40

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 41

Zoning

Accepted Answer

Government (usually municipal) regulation of the uses of property within specific areas.

Question 42

Acceleration Clause

Accepted Answer

A contract provision that allows a lender to require a borrower to repay all or part of an outstanding loan upon failure to comply with some agreed upon conditions.

Question 43

Bundle of Rights

Accepted Answer

A set of legal rights that are associated with the ownership of property, including the right to sell, lease, encumber, use, enjoy, exclude, and dispose.

Question 44

Capitalization Rate

Accepted Answer

A rate of return used to derive the capital value of an income stream, divide annual income by net operating income.

Question 45

Depreciation

Accepted Answer

A loss in value due to any cause, including physical deterioration, functional obsolescence, and external obsolescence.

Question 46

Eminent Domain

Accepted Answer

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

Question 47

Fair Housing Act

Accepted Answer

Federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.

Question 48

Lease Option

Accepted Answer

A lease which gives the tenant the option to purchase the property. The price and terms of the purchase must be set forth for the option to be valid.

Question 49

Non-Disturbance Agreement

Accepted Answer

A mortgage clause which protects a tenant's rights to the leased premises in case the property is foreclosed upon.

Question 50

Right of First Refusal

Accepted Answer

A provision in an agreement that gives a party the first opportunity to purchase or lease any property that the owner decides to sell or lease.

Question 51

Subordination Clause

Accepted Answer

A clause in an agreement which states that the current claim on any debts will take priority over any other claims formed in other agreements made in the future.

Virginia Real Estate Agent Advanced Terminology Flashcards