real estate exam vocabulary pdf

This is a fairly straightforward real estate definition: A grantor is the home seller who transfers their deed to a grantee, the home buyers. Government power is the constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals, and general welfare. Vocabulary words. A novation occurs when changes are made to an existing contract. Bridge loans are short-term loans used for home buyers looking to purchase a new home before theyve sold their current one. It refers to certain restrictions or limitations regarding the use of a piece of land. This commonly happens when a property owner passes away without a will and no heirs. Usually taxes and insurance costs are added to the monthly lease payment. Questions And Answers To Help You Pass The Real Estate Appraisal Exam written by Jeffrey D. Fisher and has been published by Dearborn Real Estate this book supported file pdf, txt, epub, kindle and other format this book has been release on 2000 with Business & Economics categories. FHA Loans are a mortgage issued by an FHA-approved lender and insured by the FHA which is the Federal Housing Administration. This often happens for land that is required for infrastructure like highways, major pipelines, railroads, etc. The key concepts and words you have to study are essential for obtaining your real estate license, so its crucial you learn and become familiarized with them. According to The Balance, there are different types of deeds a grantor can convey to a grantee this will vary from state to state. It applies to cases such as leases, mortgages, and insurance policies. A form that states the buyer consents to purchase a property and the seller agrees to sell that propery with the terms and conditions illustrated in from both parties. This section of the code relates to the exchange of one investment property for another, which allows capital gains taxes on the property to be deferred. It occurs when a group of real estate investors forms a partnership to purchase and manage a property that they wouldnt be able to afford if they were on their own. The tests include questions on general real estate topics. The ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. This is to ensure the house is worth somewhat close to the price of the accepted offer. Another word for properties sold in the same area seen on a property report. Comps is one of the real estate terms youll encounter when preparing your listing presentations. Entitlements can also appear when redeveloping a property or confirming the allowable use of the existing developments on the property. A type of ownership of real or Personal Property by two or more persons in which each owns an undivided interest in the whole. The Latin phrase ad valorem means according to value.. This is a metric that determines a propertys estimated fair market value. Homeowners insurance is property insurance that covers losses and damages. Rate Gap The difference between the current rate and the rate to which it could adjust on an ARM. It is the legal and regulatory term for a second residential building that occupies the same lot as the primary home. Cap rate is usedto indicate the rate of return that is expected to be generated on a property. Procuring cause is one of the real estate terms you should know in case youre ever involved in a transaction with more than one buyers agent. It is an outstanding supplement. 184 Lessons. During this process, a title report will be done which may reveal a conflicting ownership status, in which the buyer then can opt out of the sale. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Some but not all states require this form of insurance. Some common loans are student loans, mortgages, and car loans. At that point, the earnest money is applied to the down payment and closing costs. Escheat ensures that property always has ownership. In other words, a universal agent can legally act in replacement of their principal. Be warned. The collateral helps to ensure that the loan is a secured loan. Scribd is the world's largest social reading and publishing site. Escheat refers to the governments right to take ownership of unclaimed property and estate assets. Capital gain is the profit from the sale or auction of property or investment. A latent defect is not discoverable by normal inspection but maybe not to the regular eye. The real estate license exam is broken up into two parts: the national portion and your specific state portion. Earnest money is a small fee paid by the buyer to the seller right after the seller accepts the offer on the home. After all, house prices are falling. An agreement between two or more parties by law. CLOSING STATEMENT - A detailed cash accounting of a real estate transaction prepared by an escrow officer or other person designated to process the mechanics of the sale, showing all cash that was received, all charges and credits which were made, and all cash that was paid out in the transaction; also called a settlement statement. Encroachment is intrusion on a persons territory or property. More specifically, its a measure of the value of an investment property that is obtained by dividing the propertys sale price by its gross annual rental income. The agent will also refrain from showing their client homes that are outside of these areas. The ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. This is a clear antitrust violation. A home inspection is an examination of the condition of a real estate property. Water rights are the rights to use rivers, lakes, or oceans that fall adjacent to land. While a binder isnt legally binding, it acts as an informal agreement between the buyer and seller to indicate strong interest in the property transaction. Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). A bargain and sale deed demonstrates that only the seller of the property holds title of ownership and legally has the right to transfer the property. A warranty deed is a document between a buyer and seller that provides a home buyer the greatest amount of protection in a real estate property transaction. Abutting means an area of land or a building has a common boundary with another. A Latin phrase meaning other things equal or in plain terms all things remaining constant. The right of first refusal is a provision written into a lease or home agreement that says an interested party has the right to buy the home first before the seller considers any other potential buyers. The actual selling price of the property. FAR determines the maximum floor space that can be safely constructed on a piece of land. The point of a buffer zone is to ease the transition from zone to zone. When a property is pending, it is in the period after the contingencies are resolved. An Acre has 43,560 square feet 2. The key difference between a leasehold estate and a freehold estate is the limitation of time. This designated person is called a life tenant. This contingency allows the buyer to cancel the contract if they are unable to sell their current home in a specified amount of time. This course will also examine unfair and improper contracts that could be challenged; focus on contract termination, covering breach, voiding and rescission claims; and provide details on special contract situations, including real estate, financing and social contracts This free, practice exam will help prepare you for general questions you will face on your Real Estate License Exam Bms Celgene Takeover. The system is based on sets of two intersecting lines: principal meridians and base lines. Bundle of Rights Real PrepAgent-Vocabulary-Worksheet.pdf - Vocabulary Worksheet. A legal document that authorizes someone to act on behalf of another person, typically in business or for some sort of business transaction. A master plan is a comprehensive plan to guide the long-term physical development of a particular area. They then present those properties to interested real estate investors in exchange for a fee or percentage of the net profit from the deal. A material defect is a problem with property or any portion of it that would have a significant impact on the value of the property or that involves a large risk to the people on land. Automated refers to the fact that this estimate is produced by a machine learning model, based on sales prices and property data that are inputted into its system. Click Download or Read Online button to get Real Estate Appraiser Exam Vocabulary Workbook book now. DOM begins from the point the property is entered in the MLS and ends once it goes under contract, and reflects only current listing information. The structure of LLCs vary from state to state, but an (LLC) is a hybrid legal entity that has certain characteristics of both a corporation and a partnership or sole proprietorship. Fixing is the practice of setting the price of a good or service to make a particular price a standard. This is a discriminatory practice that then results in the new home buyer buying the home for an inflated price. This free practice exam is here to help you master the state-specific portion of the Texas Real Estate Practice Exam real estate exam. A real estate binder refers to the earnest money deposit in escrow or mortgage binder in a property transaction. Zoning usually refers to local government laws that dictate how real property can and cannot be used in certain areas. Im in the process of making 255 flash cards! Manage Settings The asset can include a vehicle, house, or commercial property. The term of this estate is indefinite. Accretion is the slow process of growth or acquisition of land, typically when soil is deposited by the natural action of water. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. The MLS, or Multiple Listing Service, is a collection of 580 regional databases that display all the property listings in that area. Dual agency occurs when a real estate agent represents both the buyer and seller in a single transaction. Tenants by the entirety Is a special form of co-ownership used in some states that allow a husband or wife to inherit the other spouse's ownership interest upon death. Superfund Amendments and Reauthorization Act of 1986 (SARA). If you ever end up needing to pursue legal action over a property, youll need to have a written contract signed by the other party to prove anything. AVM stands for automated valuation model. Homeowners insurance is property insurance that covers losses and damages. PSI test questions Questions and Answers 1. An appriasal method particularly for areas densely populated like metropolitan areas and suburbs. Realtors have a specific association, code of ethics, and rules. Established in 1974 Allowed greater control by EPA to control contaminant levels, and take legal action against public water auth. If granted, it permits the owner to use his land in a way that is ordinarily not permitted by the zoning ordinance. Usually, that obligation is the repayment of a loan. Use the tool to track which cards you got right and wrong, and then we'll . Negative fraud is the act of purposely leaving out information you legally must disclose; or in plain terms lying through omission. The acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if payments are not being made or there is a breach of contract. Blockbusting is an illegal practice that occurs when a real estate agent convinces a homeowner to sell a property for a lower price based on the incorrect assumption that the neighborhoods socioeconomic status is changing and that property values are decreasing. The practice is most common in urban areas when firms buy up many small, individually owned parcels of land and then combine them together. . Commingling in real estate terms has to do with the way one party in a property transaction deposits the money they received from the other party. This site is like a library, Use search box in the widget to get ebook that you want. A variance in real estate refers to a property that does not meet the zoning law requirements in the area. When the sale of a home is listed as contingent, it means that the seller has accepted an offer on the property, but there are still other steps, or contingencies, that must be met before the deal can go through. The definition of square feet is a unit of area equal to the area of a square, where each side is one foot long. The legal concept of saying you own a right to some form of asset or interest. In the home buying process, prepaids are fees related to the home itself, not the real estate transaction. Homebuyers look at comps when deciding what offer to make on a home, and sellers look at comps to figure out what price to list their home. A counteroffer is similar to a purchase agreement. Any contract agreement created between two parties for illegal actions is considered a unenforceable contract. Also available: California Real Estate Practice Exam and the Florida Real Estate Practice Exam. Ad Valorem: "According to value." A method of taxation using the value of the thing taxed to determine the amount of tax. Also, feel free to download my Real Estate Vocabulary PDF to save to your device for quick access and offline use. Property syndication is one of the real estate terms associated with investing. Examples of CAM fees include pest control services, security services, and insurance. It may be limited by the life of the person holding it or by the life of another person. This number is used by the local government to keep track of who owns the land for tax purposes. The Superfund is a United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants. Redlining is an illegal discriminatory practice that categorizes certain neighborhoods as not worth investing in, usually based on the race or ethnicity of the groups of people living in that neighborhood. Building codes are the rules and standards of properties for the protection of public safety and welfare. Long term accretion can actually increase the size of a property. Can include the right to enter and leave over the land of another. Remember to bring two forms of ID to the exam site. A lease is a contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for a periodic payment. It prevents someone from asserting something that contradicts what they previously said or agreed to by law. This is just one of the solutions for you to be successful. The statute of frauds in real estate means that everything related to the purchase and sale of a property must be in writing in order for it to be enforceable. A single-family rental is a great investment for anyone looking to begin investing in real estate because they are affordable, profitable, easier to manage, in high demand, and in plentiful supply across the country. A trust is a three-party relationship in which the first party, the trustor or settlor, transfers a property upon the second party for the benefit of the third party, the beneficiary. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. The Real Estate License Examinations The law requires that the Department of Real Estate (DRE) ascertain, by written examination, the competency of . It is sometimes referred to as the rectangular survey system. Pass your real estate exam with PrepAgent's online practice tests, animated videos, live online webinars, audio lessons, online flashcards, and more. 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