Real Estate Principles Quiz

A summary of a property's ownership history, including all transfers and claims.

A clause in a mortgage that allows the lender to demand the entire loan balance immediately if the borrower defaults.

The offeree's agreement to the offeror's terms.

Increase in land from natural deposits (e.g., soil, sand).

The loss in value of a property due to wear and tear, and other factors.

Taking ownership of another's land through continuous use.

A relationship where one person acts for another.

Estimating the value of a property.

A right or item belonging to a piece of property.

A loan where the principal and interest are paid off gradually.

A change to a contract, requiring all parties' initials.

Federal law ensuring equal access for people with disabilities to employment and goods/services.

Appraisal principle: future benefits/detriments impact property value.

Combining multiple lots into a larger tract for increased value.

Transfer of rights or interest in a bond, mortgage, or lease.

Licensed broker working under another broker's supervision.

People's preference for an area based on various factors.

Legal rights to possess, control, and enjoy land.

A business name must match the broker's license record.

Funds that lower a loan's interest rate, reducing payments.

Agreement where a broker acts on behalf of a buyer, defining their role and responsibilities.

Ownership of real property (not leasehold) giving use rights for specific purposes.

Permission to occupy a finished building after meeting building codes.

Document confirming property ownership status, based on public records.

Personal property.

Estimate of a property's likely sale price based on similar sales.

Federal law prohibiting racial discrimination in housing.

The illegal act of inducing homeowners to sell their property by misleading them about the potential entry of people from protected groups into the neighborhood, for profit.

Failing to fulfill the terms of a contract without a valid legal reason, like missing a payment.

Someone who buys and sells on behalf of others for a fee.

An agreement where a broker acts as the buyer's agent, representing their interests.

The complete set of rights associated with owning land, encompassing possession, use, and control within the law.

A financing strategy used to lower early loan payments by temporarily reducing the interest rate.

An estimate of property value commissioned by a bank or attorney, not an appraisal.

Contaminated properties previously used industrially that are now idle due to pollution issues.

A report comparing actual results to the planned budget, showing differences in income and expenses.

Profit made from the sale of an asset, whether a house or stock.

A legal document where a borrower voluntarily gives ownership of their property to the lender to avoid foreclosure. This is often done when the borrower is unable to make mortgage payments and wants to avoid the negative impact of a foreclosure.

A legal document used to secure a loan, where the borrower (trustor) conveys title to a third party (trustee) who holds it for the lender (beneficiary). It allows the lender to foreclose if the borrower defaults on the loan.

Specific limitations or rules written into a property's deed that impact how the property can be used or developed. These restrictions often control things like building height, types of structures, and even landscaping.

A clause in a mortgage agreement that states that upon full payment of the loan, the borrower's ownership rights are restored. It's essentially a promise to release the mortgage lien once the debt is paid off.

A legal judgment that forces a borrower to pay the remaining debt after a foreclosure sale hasn't fully covered the loan amount. It can be a serious consequence for borrowers who can't afford to cover the shortfall.

A government's legal process to take private property for public use, compensating the owner for its value.

A special permit that allows a land use that typically conflicts with zoning, but benefits the public, like an emergency clinic in a residential area.

The principle stating that similar properties in an area generally maintain higher value.

Something of value exchanged in a contract, like money or a promise, that makes it binding.

A condition that must be met before a contract becomes legally binding, often used for inspections or financing.

A legally enforceable agreement, often written, with promises made by both parties.

The value of a property part is based on what it adds to the whole, like a new kitchen, or how its absence would hurt value.

A mortgage not backed by the government, unlike FHA or VA loans.

Short-term financing used to cover costs during the process of building a property.

A landlord's actions that make a property unlivable, forcing a tenant to move out, ending the lease without further rent due.

A relationship where one person acts on behalf of another, created by actions or circumstances, not explicitly stated.

An agreement that isn't written down but is understood through actions or conduct, like renting a room.

A contract where the buyer makes regular payments to the seller until they own the property outright.

A separate account held by a third party to hold funds for taxes and insurance on a property.

Charges developers pay for improvements needed due to their project's impact on the area.

A loan secured against property, giving the lender rights to the property if the borrower defaults.

Agreement where a person leases land and can build on it, but doesn't own the land itself.

Documents that prove who legitimately owns a property and their rights to it.

A listing agreement where the owner appoints a broker as their exclusive agent, but can sell the property themselves without paying a commission if they find a buyer independently.

A listing agreement where the owner agrees to pay the broker a commission regardless of who sells the property during the listing period. The broker has the exclusive right to sell.

A contract where all parties have fulfilled their obligations and promises.

A contract where the terms and intentions are stated in words, either written or oral.

A contract where something remains to be done by one or more parties.

The maximum possible ownership interest in real property, meaning full ownership and control.

A fee simple estate with a special limitation, often with wording such as 'so long as' or 'while'. If the condition isn't met, ownership can revert to the grantor.

A fee simple estate with a condition that, if violated, gives the grantor the right to take back the property.

A decrease in the property's value caused by outside factors, like environmental issues or changes in the neighborhood.

A mortgage loan insured by the Federal Housing Administration (FHA). This means the FHA guarantees the loan to the lender, making it easier for borrowers with lower credit scores or down payments to qualify.

Responsibilities owed by an agent to their principal. They include acting with care, obedience, loyalty, and transparency in all matters related to their principal's affairs.

A relationship where one party (the fiduciary) acts in the best interests of another (the beneficiary). Examples include attorney-client, trustee-beneficiary, and principal-agent.

Personal property that has become permanently attached to real estate, transforming it into part of the property. This is important because it affects ownership and transfer of the property.

A separate insurance policy covering damage from flooding, not included in typical homeowner's insurance. It's managed by FEMA.

A legal process where a lender takes ownership of a property because the borrower has failed to make payments. This ends the borrower's rights to the property and transfers ownership to the lender.

An agent authorized to represent a principal in a wide range of matters, often with broad authority.

A creditor's right to claim and sell any of a debtor's property (real estate or personal belongings) to recover a debt.

Representing both the buyer and seller in a real estate transaction. This is generally unethical and often illegal.

A deposit made by a buyer to show seriousness about purchasing a property. It's returned if the deal falls through, but forfeited if the buyer backs out.

A legal right to use another person's land for a specific purpose, like accessing a property.

An easement granted by law when a property owner needs access to their land, like a driveway through a neighbor's property.

Gaining the right to use someone's land by openly and continuously using it for a certain period (varies by state).

The period a building or property adds value to the land. After this, it's depreciating.

The government's right to take private property for public use, even if the owner doesn't want to sell.

Something built on someone else's property, like a fence that crosses the boundary line.

Anything that burdens a property, like a mortgage, lien, or easement, affecting its value.

A report detailing the environmental effects of a government-funded project.

Federal law preventing discrimination in lending based on factors like race, sex, or religion.

The right to own property even if someone else holds the legal deed. Common in contracts.

The difference between your property's value and what you owe on it. Your ownership stake.

Gradual loss of land due to natural forces like wind and water.