Real Estate Vocabulary for PSI Exam

Questions and Answers

What does an acceleration clause in a mortgage allow?

Reduction of payment amounts

Immediate payment of the total debt upon default (correct)

Transfer of debt to another party

Extension of payment time

What is accession in real estate?

Title to improvements or additions to real property acquired through accretion or annexation of fixtures.

Define accretion.

Increase or addition to land by the deposit of sand or soil.

What is accrued depreciation?

The actual depreciation that has occurred to a property at any given date. Signup and view all the answers

What is meant by acknowledgement in real estate?

A declaration made by a person before a notary that an instrument was executed voluntarily. Signup and view all the answers

What constitutes actual eviction?

Physical ousting of a tenant from a rented property by legal action. Signup and view all the answers

What is actual notice?

Express information or fact; actual knowledge. Signup and view all the answers

What is an ad valorem tax?

A tax levied according to value, commonly referring to real estate tax. Signup and view all the answers

What is an adjustable-rate mortgage (ARM)?

A mortgage with interest that changes periodically according to an index. Signup and view all the answers

What does the adjustment date refer to in an ARM?

The date the interest rate changes on the adjustable-rate mortgage. Signup and view all the answers

Define administrator in real estate terms.

The party appointed to settle the estate of a deceased person without a will. Signup and view all the answers

What is adverse possession?

The continuous, hostile, exclusive, and notorious possession of another's land under a claim to title. Signup and view all the answers

What is an affidavit?

A written statement signed and sworn before a person authorized to administer an oath. Signup and view all the answers

What is the role of an agent in real estate?

One who represents or acts for another in a fiduciary capacity. Signup and view all the answers

What is an agreement of sale?

A written agreement in which a buyer and seller agree on terms for real estate. Signup and view all the answers

What is an air lot?

A designated airspace over a piece of land. Signup and view all the answers

Define air rights.

The right to use the open space above one's property. Signup and view all the answers

What is alienation in real estate?

The act of transferring property to another. Signup and view all the answers

What does an alienation clause do?

Prevents the borrower from selling property without lender approval. Signup and view all the answers

What is alluvion?

The actual soil increase resulting from accretion. Signup and view all the answers

What are amendments in a real estate context?

Changes to previously approved and adopted written agreements. Signup and view all the answers

What are amenities in real estate?

Neighborhood facilities and services that enhance property value. Signup and view all the answers

What is the Americans with Disabilities Act (ADA)?

A federal law aimed at eliminating discrimination against individuals with disabilities. Signup and view all the answers

What is amortization?

Liquidation of a financial burden by installment payments including principal and interest. Signup and view all the answers

Study Notes

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.

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Description

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.