KY Real Estate Exam Flashcards

KY Real Estate Exam Flashcards

SeveranceChanging an item of real estate into personal property ex:

cutting down a tree

Dower and CurtsyDower: Wife acquires property her husband held or

acquired during marriage if he dies.Curtsy: A life estate

given to surviving husband in real estate owned by his deceased wife Gross Rent Multiplier (GRM)Used on single family homes/duplex; expenses not considered Civil Rights Act of 1866An act that prohibits racial discrimination in the sale and rental of housing Metes and BoundsLegal description of land that begins with a well-marked point and follows the boundaries using directions and distances around the tract back to point of beginning DepreciationAppraisal- Loss of value in property due to any causeReal Estate Investment- Expense deduction for tax purposes taken over the period of ownership of income property Sellers DisclosureDocument completed by the seller of a home listing any known issues of the property including home improvements made ClientThe principal RescissionOne party canceling or terminating a contract, which has the effect of returning the parties to their original positions before the contract was made.CustomerThe third party nonrepresented consumer for who some level of service is provided Tenancy at Will...OptionAgreement to keep open for a set period an offer to sell or purchase property Restrictive CovenantClause in a deed that limits the way the real estate ownership may be used Fee Simple Subject to a Condition Subsequent If estate is no longer used for reason conveyed it reverts to original grantor by right of reentry Package MortgageSecures real and personal property Oral Lease...Unilateral ContractOne party is bound to contract or act Joint TenantsOwnership of real estate between two or more parties who have been named in one conveyance as joint tenants.Upon death of a joint tenant the decent's interests passes to the surviving joint tenant or tenants by the right of survivorship

Fully Amortized LoanLoan consisting of equal, regular payments satisfying the total payment of principal and interest by the due date Income ApproachEstimating value of an income producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life HUD-1Form that itemizes fees and services charged to a borrower and seller during a real estate transaction Executed ContractContract in which all parties have fulfilled their promises and thus performed the contract SectionPortion of a township under the rectangle (govt) survey system. Township is divided into 36 sections, numbered 1 through 36. Section is a square with mile long sides and an area of one square mile or 640 acres Deficiency JudgmentAllowed when funds are insufficient at foreclosure Fee Simple AbsoluteMaximum possible estate or right of ownership of real property continuing forever PartitionLegal action to divide interest Cost ApproachCommercial use; Separation of land and building CooperativeResidential multi-unit building whose title is held by a trust or corporation that is owned and operated for the people living within the building who are the beneficial owners of the trust or shareholders of the corporation.Gross LeasePay only rent PuffingExaggerated or superlative comments or opinions Leasing PropertyWritten or oral contract between a landlord and tenant that transfers the right to exclusive possession and use of landlord's property to the lessee for a specific time and rent amount. Leases for longer than a year must be in writing to be enforceable.CapitalizationRate of return on an investment; Comparable to interest rates Net LeaseLease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities and repairs Growing Equity MortgagePayments increase, excess goes to principle, rapid pay off Fannie MaeOriginal purpose to buy FHA mortgages and mortgages at a discount Delivery & AcceptanceTitle is delivered by grantor and accepted by grantee EncroachmentExtension of an improvement; Extends beyond land of owner and onto anothers property Mechanic LienCreated in favor of contractors, laborers and material-men who have performed work or furnished materials in the erection or repair of a building EGIPGI-Vacancies-Credit Loss

PGIMarket rent; Going rate ComminglingIllegal act of placing client or customer funds with personal funds.Supply and DemandAppraisal principle that follows the interrelationship of the supply of and demand for real estate. Principle realizes that real property is subject to the influences of the marketplace as with any other commodity AccretionIncrease of land by deposit of sand or soil washed up naturally from a river, lake or sea Loan to Value (LTV) RatioRelationship between the amount of the mortgage and the value of the real estate being pledged VA MortgageMortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the VA in order to limit the lender's possible loss. 100% financing License ExpiresWhen licensee fails to renew it, does not complete continuing education Unlicensed AssistantLimitations in what information can be said to customer or client. Not allowed to make copies of keys Fee SImple DeterminableQualified by a specific limitation. Language used: so long as, while, or during Blanket MortgageCovers more than one tract of land Estate at SufferanceNo longer have right to be there but used to Exclusive Right to Sell ListingListing contract where 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 terms and agrees to pay broker a commission when the property is sold by the broker, owner, or another broker Redemption StatutoryRight of a defaulted property owner to recover his or her property by curing the default Mortgage Loan Points...SyndicationPulling of Money from investors Deed IN TrustGrants a trustee under a land trust full of power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers.Felony ConvictionBeing convicted of a felony; license is revoked Lead Paint 197875% of houses built before 1978 used lead based paint, can cause damage to body HoldoverTenant remains in possession after expiration of an estate for years (legal or illegal) Trust Deed; Deed OF TrustUsed to create a mortgage lein by which the borrower conveys title to a trustee (third party) who holds it as security for the benefit of the note holder (lender) Do Not Call Registrynational call registry monitored by FTC; list of consumers who do not wish to be called

Bilateral ContractAll parties are legally bound to to act as prescribed Earnest MoneyMoney deposited by a buyer under the terms of a contract to be forfeited if the buyer defaults Freddie MacBuys conventional loans from S & Ls Purchase Money MortgageOne taken back by a seller from a buyer

Graduated LeaseLease amount increases over certain amount of time. EX:

$450 for 5 years; $500 next 5 years etc.Open End MortgageAllows for future advances General LeinRight of a creditor to have all of a debtor's property both real and personal to satisfy a debt Fee Simple DefeasibleHolder has fee simple title that may be divested upon the occurrence of a specified or non specified event.REIT 100Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax Promissory NoteFinancing instrument that states the terms of the underlying obligation, signed by its maker and is negotiable (transferable to a third party) Property ManagerManages real estate for another person for compensation.

Duties: collecting rent, maintaining property, and keeping

up accounting Shared Appreciation MortgageLender gets a "share" of equity in property Loan OriginationFee charged to borrower by lender making a mortgage loan. 1% of loan amount Riparian RightsOwner's rights in land that borers or includes a stream, river or lake. These include access to and use of the water Subject to MortgageSeller has liability, none for buyer Ginnie MaeHigh-risk mortgages Fee SimpleHighest interest in real estate recognized by law. holder is entitled to all rights to the property PMI (Private Mortgage Insurance)Insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and deficiency DeviseGift of property through a will Gross EasementPersonal right; Not attached to property terminates on sale of land or death RedemptionEquitable (before foreclosure)Statutory (after foreclosure) Commission SplitCommission earned from selling a property is split between licensee and principal broker SteeringIllegal practice of channeling home seekers to particular areas either to maintain the homogeneity of an area or to change the character of an area which limits the choices of where they can live