Real Estate Exam Vocabulary Flashcards

Real Estate Exam Vocabulary Flashcards Life TenantA person to whom a life estate conveys Holder in Due CourseA person who has obtained a negotiable instrument (promissory note, check) in the ordinary course of business before it is due, in good faith and for value, without knowledge that it has been previously dishonored and without notice of any defect or setoff at the time it is negotiated Holographic WillWritten in the maker's own handwriting, dated, and signed by the maker Closed-End LoanLoan in which the borrower receives all loan proceeds in one lump sum at the time of closing. These loans are secured with collateral, i.e., auto and home loans.NovationThe substitution by agreement of a new obligation for an existing one RevocationThe canceling of an offer to contract by the person making the original offer easement in grossan easement that is not appurtenant (belonging) to any one parcel, for example, public utilities escrowthe deposit of funds or documents with a neutral third party who is instructed to carry out the provisions of an agreement capitalizationThe process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream Grantorthe person conveying or transferring the property Fee Simple DefeasibleAn estate in which the holder has a fee simple title that is subject to return to the grantor if a specified condition occurs; also known as fee simple qualified SupplyThe total amount of an item that is for sale or lease, at various prices, at any given point in time.PatentsDeeds used by the U.S. government when confirming or transferring ownership to private parties patent deedA deed given by the government to a private individual as evidence of transfer of title from government to the public person Witnessed WillOne prepared by an attorney, that is typed and signed by the maker and two witnesses Subordination ClauseA clause in which the holder of a trust deed permits a subsequent loan to take priority margina fixed percentage rate that is added to an index to determine the fully indexed interest rate of an adjustable

rate mortgage (ARM)

Holderthe party to whom a promissory note is made payable; the person holding the note JudgmentThe final legal decision of a judge in a court of law regarding the legal rights of parties to a dispute OfferA presentation or proposal for acceptance to form a contract ValidLegally binding Book ValueThe initial cost of the property plus capital improvements and minus the total accrued depreciation Personal PropertyAnything movable that is not real property closingThe act of finalizing the transaction in which the deed is delivered to the buyer, the title is transferred, and all costs are paid bill of saleA written agreement used to transfer ownership in personal property beneficiarythe lender under a deed of trust manufactured homeHome built in a factory after June 15, 1976 that conforms to the federal Manufactured Home Construction and Safety Standards.loan estimatedisclosure statement created by the Consumer Financial Protection Bureau to provide borrowers with good-path estimates of credit costs and transaction terms.ALTA PolicyAmerican Land Title Association policy of extended title insurance policy; can be purchased by lender or buyer PrincipalSomeone who directs or authorizes another to act in his or her place in regard to relations with third persons; buyer or seller acceleration clauseA clause in the loan document describing certain events that would cause the entire loan to be due baselinea survey line running east to west, and used as a reference when mapping land standard policya policy of title insurance covering only matters of record VestedOwned by duressThe use of force to get agreement in accepting a contract ratificationThe approval of a previously authorized act, performed on behalf of a person, which makes the act valid and legally binding blanket loanA loan that is secured by several properties AssemblagePutting several smaller, less valuable parcels together under one ownership to increase value of total property accessionThe acquisition of title to additional land or to improvements as a result of the annexation of fixtures or as a result of alluvial deposits along the banks of streams by accretion intermediationThe process of transferring capital from those who invest funds to those who wish to borrow

Promissory NoteA written promise or order to pay money; evidence of a debt Capital ImprovementsAny permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property's value Sandwich LeaseA lease agreement created when a tenant sublets the property to another person, thus creating a sublessor-sublessee relationship. The person in the "sandwich" is a lessee to one party and a lessor to another Emancipated MinorSomeone who is legally set free from parental control/supervision ActionA lawsuit brought to court Land GrantA grant of public lands by the government usually for roads, railroads, or agricultural colleges ImprovementsAny buildings or structures on a lot replacement costthe cost of replacing improvement with modern materials and techniques Financing StatementA written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property; establishes the creditor's interest in the personal property, which is security for the debt CounterofferThe rejection of an original offer that becomes a new offer ErosionThe gradual wearing away of land by natural process Foreclosure SaleA sale during which property is sold to satisfy a debt Calendar YearThis starts on January 1 and continues through December 31 of the same year.ConversionThe appropriation of property belonging to another.EthicsA set of principles or values by which an individual guides his or her own behavior and judges that of others RedliningThe use of a property's location to deny financing

"DUST"The 4 elements that create value: Demand, Utility, Scarcity,

Transerabilit SubagentAn agent of a person who is already acting as an agent for a principal ingressa way to enter property; access scarcityLess availability of a commodity in the marketplace resulting in increased value when demand exceeds supply.Surrenderthe voluntary giving up of a lease townshipsa land description used in the U.S. Public Land Surgery System consisting of a six-by-six mile area containing 36 sections, each one mile square.Gross Rest Multiplier (GRM)A figure which, when multiplied by the monthly rental income, equals the property's market value.Accrued DeprecationThe difference between the cost to replace the property and the property's current appraised value