Question 1

Title Theory State

Accepted Answer

A concept in property law where the mortgage lender is considered the owner of the property until the mortgage is fully paid.

Question 2

Market Value

Accepted Answer

The most probable price a property would bring in a competitive and open market under fair sale conditions.

Question 3

Homestead

Accepted Answer

A legal life estate created for a family residence. In Wisconsin, it protects a portion of home equity from creditors.

Question 4

Lis Pendens

Accepted Answer

A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court.

Question 5

Exclusive Right to Sell Listing

Accepted Answer

A listing agreement 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, and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner or another broker.

Question 6

Ad Valorem

Accepted Answer

A term used to refer to taxes that are based on the assessed value of property.

Question 7

Tenancy in Common

Accepted Answer

A type of joint tenancy of an estate in land where each co-tenant owns a separate fractional part of undivided property rights.

Question 8

Eminent Domain

Accepted Answer

The power of the government to take private property for public use, with just compensation.

Question 9

Abstract of Title

Accepted Answer

A condensed history of the title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and certification by the abstractor that the history is complete and accurate.

Question 10

Fixture

Accepted Answer

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

Question 11

Joint Tenancy

Accepted Answer

A form of co-ownership where property transfers to the other tenants upon death of one.

Question 12

Special Assessment

Accepted Answer

A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement.

Question 13

Boot

Accepted Answer

Money or other property that is not like-kind, which is given to make up any difference in value or equity between exchanged properties.

Question 14

Escrow

Accepted Answer

The depositing of money, documents, and instruments by a buyer and seller with a neutral third party (escrow agent), to be delivered upon the closing of a transaction.

Question 15

Depreciation

Accepted Answer

A loss in property value due to any cause, including physical deterioration, functional or economic obsolescence.

Question 16

Encumbrance

Accepted Answer

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

Question 17

Metes and Bounds

Accepted Answer

A method of land description that identifies a property by specifying the shape and boundary dimensions of the parcel.

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 and ending with the most recent.

Question 19

Appurtenance

Accepted Answer

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

Question 20

Amortization

Accepted Answer

The gradual repayment of a mortgage loan, both principle and interest, by installments.

Question 21

Net Listing

Accepted Answer

A real estate commission pricing strategy in which the seller sets a net price he or she will accept; anything above that is kept by the broker as commission.

Question 22

Covenants, Conditions, and Restrictions (CC&Rs)

Accepted Answer

The rules of general application governing the rights and responsibilities of the individual owners in a condominium, cooperative, or planned unit development (PUD).

Question 23

Fee Simple

Accepted Answer

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

Question 24

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 25

Time is of the Essence

Accepted Answer

A contractual clause that emphasizes the importance of meeting deadlines and performing obligations promptly.

Question 26

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of the prices of similar properties in the same area to determine a property's market value.

Question 27

Conveyance

Accepted Answer

The transfer of title to real property from one person to another.

Question 28

Fiduciary Duty

Accepted Answer

The legal obligation of a real estate agent to act in the best interests of their client, putting the client's needs above their own.

Question 29

Dual Agency

Accepted Answer

A situation where a real estate agent represents both the buyer and the seller in the same transaction.

Question 30

Material Fact

Accepted Answer

Any information about a property that could affect a buyer's decision-making process.

Question 31

Radon

Accepted Answer

A naturally occurring radioactive gas that can seep into buildings, potentially causing health hazards.

Question 32

Right of Way

Accepted Answer

A privilege or easement granted to a person or entity to pass over another's property, typically for access or utility purposes.

Question 33

Counteroffer

Accepted Answer

A response made by one party to an offer, which modifies the original terms and may initiate a new round of negotiations.

Question 34

Title Insurance

Accepted Answer

Insurance that protects a property owner against losses due to defects in the title, such as undiscovered liens or conflicting ownership claims.

Question 35

Earnest Money

Accepted Answer

A deposit made by a buyer to demonstrate their intention to proceed with the purchase of a property, typically held in escrow until closing.

Question 36

Zoning

Accepted Answer

The division of land into different designated areas or zones for specific uses, such as residential, commercial, or industrial.

Question 37

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that protects consumers by requiring lenders to provide certain disclosures and safeguards during the real estate settlement process.

Question 38

Seller's Disclosure

Accepted Answer

A document completed by the seller that discloses known defects and material facts about a property, providing transparency to potential buyers.

Question 39

Tax Lien

Accepted Answer

A claim by the government against a property for unpaid taxes, which may result in a forced sale of the property to satisfy the debt.

Question 40

Floodplain

Accepted Answer

An area susceptible to flooding, as determined by government regulations and maps.

Question 41

Contingency

Accepted Answer

A condition or requirement that must be met for a real estate contract to be binding, such as a satisfactory home inspection or obtaining financing.

Question 42

Real Estate Owned (REO)

Accepted Answer

Properties that have been acquired by a lender through foreclosure and are now owned by the lender.

Question 43

Leasehold

Accepted Answer

The interest or estate in real property that a tenant holds under a lease agreement.

Question 44

Certificate of Occupancy

Accepted Answer

A document issued by a local government agency that confirms a building or unit's compliance with building codes and regulations, allowing it to be occupied.

Question 45

Easement

Accepted Answer

The right to use or access someone else's property for a specific purpose, such as a shared driveway or utility lines.

Question 46

Quitclaim Deed

Accepted Answer

A legal document that transfers whatever interest the grantor has in a property without making any warranties or guarantees about the title.

Question 47

Open Listing

Accepted Answer

A non-exclusive listing agreement where the owner can work with multiple real estate agents and only pays a commission to the agent who brings the buyer.

Question 48

Probate

Accepted Answer

The legal process of administering the estate of a deceased person, including the transfer of their property to heirs or beneficiaries.

Question 49

Fixture vs. Personal Property

Accepted Answer

The distinction between items that are permanently attached to the property (fixtures) and items that are not (personal property).

Question 50

Condominium

Accepted Answer

A form of property ownership where individuals own units in a multi-unit building or complex and share common areas and facilities.

Question 51

Capitalization Rate

Accepted Answer

The rate of return used to estimate the value of an income-producing property by dividing the net operating income by the property's purchase price or current market value.

Question 52

Radon Mitigation

Accepted Answer

The process of reducing radon levels in a property through the installation of ventilation systems or sealing techniques.

Question 53

Lead-Based Paint Disclosure

Accepted Answer

A requirement for sellers and landlords to disclose known information about the presence of lead-based paint in properties built before 1978.

Question 54

Conforming Loan

Accepted Answer

A mortgage loan that meets the guidelines and criteria set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.

Question 55

Asbestos

Accepted Answer

A mineral fiber commonly used in building materials in the past, which can be hazardous to health if disturbed and the fibers are released into the air.

Question 56

1031 Exchange

Accepted Answer

A tax-deferred exchange of like-kind properties that allows real estate investors to defer capital gains taxes when reinvesting the proceeds from a sale into a new property.

Question 57

Real Estate Professional

Accepted Answer

An individual who is actively involved in the real estate trade or business, meeting specific criteria set by the IRS to qualify for tax benefits related to real estate investments.

Question 58

Environmental Impact Statement (EIS)

Accepted Answer

A detailed report prepared to assess the potential environmental effects of a proposed development or project.

Question 59

Rent Control

Accepted Answer

A set of laws or regulations that limit the amount or frequency of rent increases on residential properties, aiming to provide affordable housing options and protect tenants from excessive rent hikes.

Wisconsin Real Estate Agent Flashcards