Florida Real-Estate Exam 2024 Flashcards

Florida Real-Estate Exam 2024 Flashcards Ajustable-Rate Mortgage (ARM)A financing technique in which the lender can raise or lower the interest rate according to a set index.Alluvion (Alluvium)The increase of land by the gradual and imperceptible action of natural forces (e.g., deposits of sand and mud on a riverbank).Easement AppurtenantAn easement created to benefit adjacent land.EncroachmentUnauthorized use of another person's property.Building PermitWritten governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances.Buyer's MarketThe supply of available properties exceeds the demand.Federal Housing Administration (FHA)Insured bank loans used for building and repairing homes Group LicenseA right granted a sales associate or broker associate to work various properties owned by affiliated entities under one owner developer.KickbackPayment of money from someone other than the buyer or seller associated with real estate business.Florida Administrative Code Chapter 61J2 Florida Real Estate Commission rules.EasementA right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.Culpable NegligenceInadequate attention to duties and obligations by those who know, or should know, what is required of them.Cloud on TitleAny defect, valid claim, or encumbrance that serves to impair the title or curtail an owner's rights.Acceleration ClauseStates that upon default, all of the principal installments must be paid immediately if expressed conditions should occur.Annual Percentage Rate (APR)Total yearly cost of credit.Joint TenancyAn estate or interest owned by more than one person, each having equal rights to possession and enjoyment; the interest a deceased tenant conveys to surviving tenants by specific wording in the deed establishing the joint tenancy.Life EstateTenancies whose durations are limited to the life of some person; freehold.Bilateral ContractAn agreement wherein both parties are legally obligated to each other to perform.Federal Reserve SystemA central banking authority that influences the cost, availability, and supply of money.Estate in ReversionAn estate that comes back to the original grantor.

Air RightsThe right to use the air above a property.AppraisalAn estimate of the current value of the property.Community Association Manager (CAM)A person who holds a CAM license to manage community associations of more than 10 units and associations with annual budgets in excess of $100,000.Buffer ZoneA strip of land, separating land dedicated to one use from land dedicated to another use.AppreciationAn increase in value.Highest and Best UseA principle of value that focuses on the most profitable legal use to which a property can be put.Conventional LoanA real-estate loan that is neither FHA-insured nor VA-guaranteed.F.S. 475 Part 1Covers regulation and licensing of real estate practitioners.LiquidityThe ease with which an asset can be converted into cash Time-Share Ownership OR Interval Ownership Ownership that involves the acquisition of a specific period of time, or that percentage of interest, usually in a vacation home or resort.Fee Simple EstateThe complete ownership of a property; may be either absolute or conditional.Anti-Trust LawsState and federal laws designed to maintain and preserve business competition.Balloon MortgageA mortgage in which the entire remaining balance of the loan is due in one single payment.Guardian's DeedA deed executed by a court-appointed guardian to convey title to property owned by a minor, insane person, or the aged.Capitalization RateThe relationship between the net income from a real estate investment and the present value.Earnest MoneyA type of money that a broker may handle for others in the ordinary course of business; also called a good-faith deposit or binder deposit.Vendor's LienA real-estate seller's right to repossess the property if the buyer fails to repay the seller's loan for part or all of the property's purchase price.Discount PointsA fee charged by the lender at settlement that results in increasing the lender's effective yield on the money borrowed. One discount point equals one percent of the loan amount.ConcealmentThe act of keeping from sight or keeping secret.Closing DisclosureA form that must be provided to the borrower at least three business days before closing; replaced the Settlement Statement (HUD-1).Estate in SeveraltyOwned by one person; sole ownership Building InspectionA procedure conducted during construction to check that workmanship conforms to building code.

Acre43,560 square feet.IntestateWithout a will.EntitlementThat portion of a VA-guaranteed loan that protects the lender if the borrower defaults.F.S. Chapter 120Procedural process for all governmental entities authorized under the Florida Constitution.AppurtenanceA right or privilege associated with the property; such as a parking space in a multi-unit building.AsbestosA mineral once used in insulation and other materials that can cause respiratory diseases.LeverageThe use of another's money to make more money.Comparable PropertyA recently sold property similar to one being evaluated.Also called a comparable or comp.ArbitrationThe act of having a third party render a binding decision in a dispute between two parties.DeedA type of conveyance; a written instrument to transfer title to real property from one party to another.Freddie MacA secondary mortgage market institution that buys and sells conventional, FHA, and VA loans.AcknowledgementRecognition for a notable deed.F.S. Chapter 20Establishes the structure of the executive branch of Florida's government.Ad ValoremAccording to the value; in proportion to worth.EscheatReversion of property to the state when the owner dies without leaving a will or any known heirs.LienA claim on property for payment of some obligation or debt.DepreciationA decrease or loss in value; a deduction for tax purposes.FixtureAn object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property.BPO (Broker's Price Opinion)A written opinion of the value of real property.MortgageeA lender in a mortgage loan transaction.AffidavitA sworn written statement made before an authorized official.Chain of TitleA successive listing of all previous holders of title (owners) back to an acceptable starting point.Broker AssociateAn individual who is qualified to be issued a broker's license but who operates as a sales associate in the employ of another.Eminent DomainThe right of a government to take private property for public use, with compensation.MortgagerA borrower in a mortgage loan transaction.Amortized MortgageA loan characterized by payment of a debt by regular installment payments.

Encumbrance ClauseA provision in a deed to real property that warrants that no liens, claims, or liabilities exist on the property being conveyed, except as specified.EncumbranceAny lien, claim, or liability affecting the title or attaching to real property.Title Theory StateA state where the mortgage lender has title to the property until the debt is repaid.HOA must provideA disclosure summary regard the association, the existence of restrictive covenants, and any assessments that the association imposes.Lien Theory StateA state were the borrower holds legal title of a property that is financed.Civil Rights Act of 1866A federal act that prohibits any type of discrimination based on race in any real estate transaction (sale or rental) without exception.Bona FideIn good faith.DedicationAn offer of land for some public use, by an owner, together with acceptance by or on behalf of the public.F.S. Chapter 720Homeowner's Association.Estate by EntiretiesA tenancy created by husband and wife jointly owning real property with instant and complete right of survivorship.Fair Housing Act of 1968A federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability.ConveyenceWritten instrument that serves to transfer an interest in real property from one party to another.Comparative Market Analysis (CMA)An informal estimate of market value performed by a real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering price.Easement in GrossA type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.Fannie MaeAn institution in the secondary mortgage market that buys and sells mortgages.AccretionGradual addition of land.BylawsRules that govern the administration of the condominium.AppraiserOne who is registered, licensed, or certified by the DBPR and provides an estimate of value.Leasehold EstateA tenancy in real property held under a lease arrangement for a definite number of years; nonfreehold.Estate of RemainderAn estate that can become effective only after another estate has terminated.