Real Estate Vocabulary for PSI Exam

Real Estate Vocabulary

• Acceleration Clause: Provision in a mortgage allowing the lender to demand immediate full repayment upon borrower default.

• Accession: Title acquired through the addition of improvements or natural deposits to real property.

• Accretion: Land increase due to natural deposition of sand or soil from bodies of water.

• Accrued Depreciation: Difference between the cost of replacing a property new and its current appraised value, reflecting physical wear and economic obsolescence.

• Acknowledgement: Formal declaration by a signer, verified by a notary, that an action was performed voluntarily.

• Actual Eviction: Legal process leading to the physical removal of a tenant from property due to default, enforced by court order.

• Actual Notice: Direct knowledge of certain information, contrasting with constructive notice.

• Ad Valorem Tax: Property tax assessed based on the value of real estate.

• Adjustable-Rate Mortgage (ARM): Mortgage with an interest rate that fluctuates based on market index changes.

• Adjustment Date: Specific date when an ARM's interest rate is recalibrated.

• Administrator: Court-appointed individual managing the estate of a deceased person without a will.

• Adverse Possession: Legal doctrine allowing a person to claim ownership of land under certain conditions, including continuous, hostile, and notorious use.

• Affidavit: Written sworn statement made before an authorized official.

• Agent: Individual authorized to act on behalf of another, establishing a fiduciary relationship in real estate transactions.

• Agreement of Sale: Document detailing the buyer’s commitment to purchase and the seller’s agreement to sell real estate.

• Air Lot: Designated space above a parcel of land, which can be independently sold.

• Air Rights: Ownership of the vertical space above one’s property, which can be utilized or sold.

• Alienation: Transfer of property ownership, either voluntarily or involuntarily.

• Alienation Clause: Mortgage provision restricting a borrower from selling the property without lender approval.

• Alluvion: Increase in land mass resulting from natural deposits, specifically soil.

• Amendments: Modifications made to previously established legal agreements.

• Amenities: Enhancements and facilities within a neighborhood that improve property value, like parks or recreational features.

• Americans with Disabilities Act (ADA): 1992 federal legislation aimed at prohibiting discrimination against individuals with disabilities.

• Amortization: Process of gradually paying off a loan through regular installments, covering both interest and principal.

• Amortized Loan: Type of loan structured for regular payments of both principal and interest throughout the loan term.

Test your knowledge of essential real estate vocabulary that is crucial for passing the PSI Real Estate Exam. This quiz includes terms like 'acceleration clause' and 'accession', helping you familiarize yourself with key concepts and definitions important for real estate professionals.