Texas Principles of Real Estate 2 lastest 2023, Exams of Nursing

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Amortization - - correct answers The liquidation of a financial obligation on an installment basis; also, recovery over a period of cost or value. Area - - correct answers Two dimensional surface of an object Interest and how its calculated - - correct answers Total loan value * interest rate = Total Interest due Profit and Loss - - correct answers Profit - An amount over purchase price an item is sold for. Loss - An amount under purchase price an item is sold for. Percentage - - correct answers Per 100; out of 100. a rate, number, or amount in each hundred. Any proportion or share in relation to a whole. Calendar Year - - correct answers a period of 365 days starting from any date. Statutory Year - - correct answers A statutory year (also known as a banker's years) year is composed of twelve months each with thirty (30) days for a total of 360 days. Volume - - correct answers the amount of space that a substance or object occupies, or that is enclosed within a container, especially when great. Texas Security procedures regarding calculators prior to State Real Estate Exam - - correct answers 1) Examinations are closed book; only 4 function calculator allowed

2. Candidates are not allowed to bring any reference material with them
3. Candidates must bring a non-programmable calculator which is silent, battery-operated, and does not have paper tape printing capabilities and does not have a keyboard containing the alphabet

Texas Security procedures before or during State Examination - - correct answers 1) No conversing or other form(s) of communication among candidates is permitted once you have entered the examination area

2. Children, pagers, and cellphones are NOT allowed in the examination center
3. No personal items are to enter the testing center; personal items should be locked in the trunk of your car. only non-programmable calculator which are silent, battery operated and does not have paper tape printing capabilities and have not have a keyboard containing the alphabet are allowed.
4. No smoking, eating, or drinking at the examination site, you may not exit the building during the exam, copying or communicating examination content is a violation of state law and may result in disqualification. Mixed number - - correct answers a number consisting of an integer and a proper fraction. T-Bar Method for Percentages - - correct answers Three formulas most often used to calculate percentage
5. total * rate = part
6. part/rate = total
7. part/total = rate Used for percentage or interest calculations Balloon payment - - correct answers a repayment of the outstanding principal sum made at the end of a loan period, interest only having been paid hitherto. Mortgage factor Table - - correct answers An easy looking method to see how much an individual would owe on a per $1000 basis. Broken down into one or more terms. Loan Point or Loan Discount Point - - correct answers Used by lenders to increase the lender's yield on the loan without increasing the annual interest rate. Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. This is also called "buying down the rate," which can lower your monthly mortgage payments.

1 point origination fee - - correct answers 1% of the loan amount; same across the industry Prorating - - correct answers allocate, distribute, or assess pro rata. What did an owner originally pay for his home if he sold it for $200,000, which yielded a 10% profit...? - - correct answers Take final sales price/1+rate/100 = what they originally paid for the home Frontage - - correct answers the facade of a building. a strip or extent of land abutting on a street or water. Identify the four classifications of appraisers, and accurately rank the classifications in order of experience. - - correct answers 1) Appraiser Trainee 2) State License Real Estate Appraiser 3) Certified Residential Appraiser 4) Certified General Real Estate Appraiser Explain the five steps in the appraisal process, and accurately list the steps in the correct order. - - correct answers 1) State the problem - value to be estimated; purpose for the appraisal 2) list the data needed and the sources for that data; comparative and specific; universe of data 3) gather, record, and verify data; specific data 4 ) determine highest and best use of the property 5) estimate a value by each of the appraisal methods 6) Reconciliation - single sole value to represent the opinion value for the property usually followed up by a narrative which describes the property and why it is priced at said price. Discuss the differences between insured value, book value, assessed value, and market value, and provide at least one example of each. - - correct answers Insured Value - The cost of replacing a structure completely destroyed by an insured hazard. Book Value - The current value for accounting purposes of an asset expressed as original cost plus capital additions minus accumulated depreciation. Assessed Value - A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

Market Value - The highest price in terms of money which a property will bring in competitive and open market and under all conditions required for a fair sale, i.e., the buyer and seller acting prudently, knowledgeably and neither affected by undue pressures. Summarize the three appraisal methods for determining the value of a property, and list one property type per method. - - correct answers 1) Sales Comparison approach - residential 1-4 property 2) Cost approach - specialty properties; schools, places of worship, new properties 3) Income approach - commercial properties; office buildings, multi-family, shopping centers Appraiser - - correct answers One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes. Market Value - - correct answers The highest price in terms of money which a property will bring in competitive and open market and under all conditions required for a fair sale, i.e., the buyer and seller acting prudently, knowledgeably and neither affected by undue pressures. Value - - correct answers Present worth of future benefits arising out of ownership to typical users/investors. DUST - Demand, Utility, Scarcity and Transferability Appraisal - - correct answers The act or developing an opinion of value..Final opinion of value, is the result of a professional evaluation of civil and professional Capitalization Rate - - correct answers The capitalization rate, often referred to as the "cap rate", is a fundamental concept used in the world of commercial real estate. It is the rate of return on a real estate investment property based on the income that the property is expected to generate. This metric is used to estimate the investor's potential return on his or her investment. Sales Comparison Approach (Market Data Approach) - - correct answers One of the three methods in the appraisal process. A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties. Properties must be Close, Comparable, and Current.to property in consideration.

Cost Approach - - correct answers One of the three methods in the appraisal process. An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land. Income Approach - - correct answers One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process

1. Find net annual income
2. Set an appropriate capitalization rate or "present worth" factor
3. Capitalize the income dividing the net income by the capitalization rate Depreciation - - correct answers Loss of value of property brought about by age, physical deterioration or functional or economic obsolescence. Economic Life - - correct answers The period over which a property will yield a return on the investment over and above the economic or ground rent due to land. External Obsolescence - - correct answers A loss in value due to factors away from the subject property but adversely affecting the value of the subject property. Functional Obsolescene - - correct answers A loss of value due to adverse factors from within the structure which affect the utility of the structure, value and marketability. Replacement costs - - correct answers The cost to replace a structure with one having utility equivalent to that being appraised, but constructed with modern materials and according to current standards, design and layout. Reproduction costs - - correct answers The cost of replacing the subject improvement with one that is the exact replica, having the same quality of workmanship, design and layout, or cost to duplicate an asset.

Principles of Substitution - - correct answers Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and value substitute property, assuming no costly delay is encountered in making the substitution. Gross Income Multiplier - - correct answers A gross income multiplier (GIM) is a rough measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. Gross Rent Multiplier - - correct answers A number which, times the gross income of a property, produces an estimate of value of the property. Highest and best use - - correct answers The most probable use to which a property is suited that results in its highest value or highest returns to the land. Physical detriotation - - correct answers Impairment of condition. Loss in value brought about by wear and tear, disintegration, use and actions of the elements; termed curable and incurable. 4 keys in determining value - - correct answers DUST - Effective demand, utility, scarcity, transferability Effective demand - - correct answers The desire for possession or ownership backed by the financial means to satisfy that need. Utility - - correct answers The capacity to satisfy human needs and desires. scaracity - - correct answers The supply of property in relation to effective demand. a finite supply transferability - - correct answers The relative ease with which ownership rights are transferred from one person to another. Supply and demand - - correct answers The principle that states the value of a property will increase if the supply decreases and the demand will either increase or remains constant, and visa versa.

Principle of Conformity - - correct answers Holds that the maximum value is realized when a reasonable degree of homogeneity of improvements is present. Principle of Externalities - - correct answers The influences outside of a property can have a positive or negative affect on its value. Principle of Anticipation - - correct answers Affirms that value is created by anticipated benefits to be derived in the future. Increasing and diminishing returns - - correct answers Improvements to land and structures reach a point of its most potential which no longer have a positive effect on its value. Increasing returns are postivie until it reaches a point where additional improvements dont increase the value of a property. Once improvements reach a certain point or peak then we have the law of diminishing returns. Plot-age value - - correct answers the increased utility of value resulting from combining or consolidating two or more adjacent lots into one larger lot Principle of Contribution - - correct answers A component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment. Principle of Competition - - correct answers Holds that profits tend to breed competition and excess profits tend to breed ruinous completion. Principle of Change - - correct answers Holds that it is the future, not the past, which is of prime importance in estimating value. Change is largely the result of cause and effect. Reconciliation - - correct answers taking values indicated by the various approaches used and reconciliating into one single value

Comparative Market Analysis(CMA) - - correct answers An analysis of the competition in the marketplace that a property will face upon sale attempts. Sellers net return - - correct answers seller profit once closing costs, commissions, and other fees have been subtracted. The amount the seller walks away with after a sale. Appraisal Process - - correct answers 1) State the problem - What is the appraised being done for; new home purchase, refinance, home equity loan or other purpose

2. List the data needed and the sources of the data
3. Gather, record, and verify all the necessary data in step 2 - very time consuming
4. determining the highest and best use of the property
5. value estimated from each of three appraisal methods
6. Reconciliation - takes all three approaches and values and reconciles it into one single value. After all steps are completed, appraiser takes what he has learn and conveys that to the client. Where he gives his opinion and how he came to the appraisal value. Appraisal reporting - information actually sent to client - - correct answers 1) Opinion of value and date it was recorded
7. The purpose on which the appraisal was done
8. Description of the neighborhood and surrounding areas of the subject property - demographics
9. Factual data with respect to each of the three appraisal methods; sales of recently sold similar properties
10. Analysis and interpret the data collected
11. Presentation with enough detail to state and prove his final number, with supporting documents and data points. Insured Value - - correct answers The cost of replacing a structure completely destroyed by an insured hazard.

Book Value - - correct answers The current value for accounting purposes of an asset expressed as original cost plus capital additions minus accumulated depreciation. Assessed Value - - correct answers A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property. Market Price - - correct answers The price paid regardless of pressures, motives or intelligence. IRV - - correct answers Income * Rate = Value List at least three examples of lenders who offer financing to residential buyers. - - correct answers Convential, FHA, VA Explain the difference between a balloon mortgage and term mortgage. - - correct answers Balloon is interest only to defer the principal until final payment is to be made. Term is fixed for length and generally has an amortization set over the life of the loan. Explain the concept of negative amortization and why it is risky for borrowers. - - correct answers Occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due. Identify at least three participants in the secondary mortgage market. - - correct answers Fannie Mae, Freddie Mac, Ginnie Mae Mortgage Banker - - correct answers A person whose principal business in the originating, financing, closing, selling and servicing of loans secured by the real property for institutional lenders on a contractual basis. Mortgage Broker - - correct answers A broker who arranges a mortgage loan between a lender and a borrower for a fee.

Balloon Payment - - correct answers A mortgage in which the scheduled payment will not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment called a balloon payment, larger than the uniform payments, is required. Term mortgage - - correct answers A mortgage that requires the mortgagor to pay interest only during the mortgage term, with the principal due at the end of the term. Negative Amortization - - correct answers Occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due. Convential Loan - - correct answers A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. The type customarily made by a bank or savings and loan association. PITI - - correct answers An acronym denoting that a mortgage payment includes principal, interest, taxes, and insurance. Loan to Value Ratio - - correct answers The relationship between the amount of a mortgage loan and the lender's opinion of the value of property pledged to secure payment of the loan. Private Mortgage Insurance - - correct answers Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan (PMI). Yield - - correct answers The interest earned by a bank on the money it has loaned. Discount Points - - correct answers The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. The amount is equal to the difference between the principal balance on the note and the lesser amount which a purchaser of the note would pay the original lender for it under market conditions. A point equals one percent of the loan. Loan Origination Fee - - correct answers The financing charge that a lender requires.

VA Loan - - correct answers A loan made to qualified veterans for the purchase of real property wherein the Department of Veteran's Affairs guarantees the lender payment of the mortgage. Guarenteed Loan. FHA Loans - - correct answers Insured. 203b, 203h, Rehab loan - 203k Texas Loan Program - - correct answers TDHCA; two programs; Texas First-time Homebuyers program and Texas bootstrap program - http://tdhca.texas.gov/overview. Texas Veterans loans Federal Reserve System - - correct answers The federal banking system of the United States under the control of central board of governors (Federal Reserve System) involving a central bank in each of twelve geographical districts with broad powers in controlling credit and the amount of money in circulation. Discount Rate - - correct answers The minimum interest rate set by the Federal Reserve for lending to other banks. Bond - - correct answers Written notice of an obligation given by a corporation or government entity. A surety instrument. Primary Mortgage Market - - correct answers The activity of lenders' making mortgage loans to individual borrowers. Secondary Mortgage Market - - correct answers The buying and selling of existing deeds of trust and promissory notes. Fannie Mae - - correct answers The shortened name for the Federal National Mortgage Association (FNMA), a privately owned corporation that purchases FHA, VA, and conventional mortgages. Freddie Mac - - correct answers A nickname for the Federal Home Loan Mortgage Corporation (FHLMC), a corporation wholly owned by the Federal Home Loan Bank System that purchases FHA, VA, and Conventional mortgages.

Ginnie Mae - - correct answers A nickname for the Government National Mortgage Association (GNMA), a U.S. government agency that purchases FHA and VA mortgages. Truth in lending - - correct answers The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction. Real Estate Settlement Procedures Act (RESPA) - - correct answers A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development. Creditor - - correct answers A person to whom a debt is owed. Annual Percentage Rate - - correct answers The relative cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act. Adjustable Rate Mortgage (ARM) - - correct answers A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise. Subsidy Buydown - - correct answers Funds provided usually by the builder or seller to temporarily reduce the borrower's monthly principal and interest payment. Home Equity Loan - - correct answers A loan against the equity in a home. Wrap around mortgage - - correct answers A financing device whereby a lender assumes payments on existing trust deeds of a borrower and takes from the borrower a junior trust deed with a face value in an amount equal to the amount outstanding on the old trust deed and the additional amount of money borrowed.

Construction Loan - - correct answers A loan made to finance the actual construction or improvement on land. Funds are usually dispersed in increments as the construction progresses. Sale and leaseback - - correct answers A financial arrangement where at the time of sale the seller retains occupancy by concurrently agreeing to lease the property from the purchaser. The seller receives cash while the buyer is assured a tenant and a fixed return on buyer's investment. Explain the concept of a deed restriction, and provide at least three examples of a deed restriction. - - correct answers Restriction which are put on a property to abide by certain rules or restrictions to live in a certain community or neighborhood. 1) No fencing 2) Red brick front 3) No burning firewood List at least four environmental hazards that may plague a building. - - correct answers Asbestos, lead, UFFI, and radon Discuss the Interstate Land Sales Full Disclosure Act. - - correct answers The Interstate Land Sales Full Disclosure Act of 1968 (ILSFDA or ILSA or "Act") was an act of Congress passed in 1968 to facilitate regulation of interstate land sales, to protect consumers from fraud and abuse in the sale or lease of land. http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/ils/ilsstat Police Power - - correct answers The right of the State to enact laws and enforce them for the order, safety, health, morals and general welfare of the public. Zoning - - correct answers Act of city or county authorities specifying type of use to which property may be put in specific areas. Planned Urban Development (PUD) - - correct answers A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning. Spot Zoning - - correct answers The illegal rezoning of a certain property in a zoned area to permit a different type of use than that authorized for the rest of the area.

Non-Conforming Use - - correct answers A property use that doesn't conform to current zoning requirements, but is allowed because the property was being used in that way before present zoning ordinance was enacted. Variance - - correct answers A permitted deviation from specific requirements of a zoning ordinance because of the special hardship to a property owner. Building Code - - correct answers A systematic regulation of construction of buildings within a municipality established by ordinance or law. Certificate of Occupancy - - correct answers A document issued by a local government agency after satisfactory inspection of a structure authorizing that the structure can be occupied. Deed restriction - - correct answers Limitations in the deed to a property that dictate certain uses that may or may not be made of the property. A covenant in a deed which has restrictions. Laches - - correct answers Delay or negligence is asserting one's legal rights. Asbestos - - correct answers A fibrous mineral found in many building materials that when improperly disturbed, can cause serious lung diseases. Friable - - correct answers A quality of some asbestos that causes it to crumble, allowing toxic particles to escape into the air and lodge in people's lungs. Radon - - correct answers A colorless, odorless, radioactive gas present in the soil that enters a home through small spaces and openings. Urea-Formaldehyde Foam Insulation (UFFI) - - correct answers A type of foam containing formaldehyde, a gaseous compound used for home insulating until the early 1980's.

Property Management - - correct answers A branch of real estate business involving the marketing, operation, maintenance and day-to-day financing of rental properties. Property Manager - - correct answers A person who manages properties for an owner as the owner's agent. Real Estate Owned (REO) - - correct answers A class of property owned by a lender, typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction. Short Sale - - correct answers A transaction in which the sale proceeds fall short of the balance owed on the property. Foreclosure - - correct answers A procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms. List at least three tax benefits of real estate investing. - - correct answers Cash flow, appreciation over time, capital gains Appreciation - - correct answers An increase in value. Cash flow - - correct answers The total amount of money remaining after all expenditures have been paid, including the taxes, operating costs, and mortgage payments. Leverage - - correct answers The use of debt financing of an investment to maximize the return per dollar of equity invested. Equity - - correct answers The property's market value minus any debts. Capital Gains - - correct answers The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.

Section 1031 Exchange - - correct answers A section of the internal U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes. Boot - - correct answers Cash received in a tax-deferred exchange. Depreciation - - correct answers The amount of decrease in value of an asset that is allowed in computing the value of the property for tax purposes. Straight line depreciation - - correct answers A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement. Real Estate Syndicate - - correct answers An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisition of real property interests Real Estate Investment Trust (REIT) - - correct answers A business trust which deals principally with interest in land, generally organized to conform to the Internal Revenue Code. State the four types of leasehold estates, and provide an example of each. - - correct answers Estate for years, periodic tenancy, tenancy at will, tenancy at sufferance List at least three components of a valid lease. - - correct answers 1) Security Deposit

2. Term - start date and end date
3. Rent Payment 4) Signatures State at least three different types of leases, and provide at least one example of when each lease applies. - - correct answers Gross Lease - fix rental lease and landlord pays taxes and insurance, Net Lease - tenant pays all of the costs; taxes, insurance, and maintenace, Percentage Lease - pays base rental amount plus percentage of their gross sales; could even pay taxes and maintenance; depends on the lease.

List two benefits of renting over owning a house. - - correct answers 1) Flexibility to move

2. Known costs Lessor - - correct answers An owner who enters into a lease agreement with a tenant; a landlord. Lessee - - correct answers One who contracts to rent, occupy, and use property under a lease agreement; a tenant. Lease - - correct answers A contract between owner and tenant, setting forth conditions upon which tenant may occupy and use the property and the term of the occupancy. Sometimes used as an alternative to purchasing property outright, as a method of financing right to occupy and use real property. Leasehold estate - - correct answers A tenant's right to occupy real estate during the term of the lease. This is a personal property interest. Estate for years - - correct answers An interest in land by virtue of a contract for the possession of them for a definite and limited period of time. May be for a year or less. A lease may be said to be an estate for years. Periodic tenancy - - correct answers A lease that automatically renews for successive periods unless terminated by either party; also called estate from year to year. Tenancy at will - - correct answers A property tenure that can be terminated at any time by either the tenant or the owner (landlord). It exists without a contract or lease, and is unspecific in duration or the exchange of payment. Tenancy at Sufferance - - correct answers A tenant at sufferance is the situation when a tenant of real estate continues to occupy the premises without the landlord's consent after the original lease or rental agreement between the landlord and the tenant has expired. A tenant in this situation is also referred to a a holdover tenant.

Gross Lease - - correct answers A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance. Net Lease aka Triple Net Lease - - correct answers A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments. Percentage Lease - - correct answers Lease on the property, the rental for which is determined by amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rental. In retail space Graduated Lease - - correct answers Lease which provides for a varying rental rate, often based upon future determination; sometimes rent is based upon result of periodical appraisals; used largely in long- term leases. Ground - - correct answers An agreement for the use of land only, sometimes secured by improvements placed on the land by the user. Property Managment - - correct answers A branch of real estate business involving the marketing, operation, maintenance and day-to-day financing of rental properties. Property Manager - - correct answers A person who manages properties for an owner as the owner's agent. Operating Budget - - correct answers An annual budget that includes only the items of income and expense expected for week-to-week operation. Preventative Maintenance - - correct answers Requires a periodic check of mechanical equipment on the premises to minimize wear and tear; for example, changing air filters on air conditioners and furnaces.

Corrective Maintenance - - correct answers A maintenance task performed to identify, isolate, and rectify a fault so that the failed equipment, machine, or system can be restored to an operational condition within the tolerances or limits established for in-service operations. ACTR - - correct answers acronym used to describe alternative risk management techniques; Avoid Control Transfer Retain Identify at least three components of a deed. - - correct answers grantor, grantee, and conveyance List at least three types of deeds and provide an example of when each type of deed is used. - - correct answers General Warranty Deed, Special Warranty, and Quit Claim Deed Deed - - correct answers A written document by which ownership of land is transferred from one party to another. Grantee - - correct answers A person who acquires an interest in land by deed, grant, or other written instrument. Grantor - - correct answers A person, who by a written instrument, transfers to another the interest in land. Majority - - correct answers A age at which a person is entitled to handle his/her own affairs. Consideration - - correct answers Anything given or promised by a party to include another to enter into a contract, e.g., personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other. Habendum Clause - - correct answers The "to have and to hold" clause which may be found in a deed. Power of Attorney - - correct answers An instrument authorizing an another to act on one's behalf as his/her agent or attorney.

General Warranty Deed - - correct answers A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons. Special Warranty Deed - - correct answers A deed in which the seller warrants or guarantees the title only against defects arising during the period of his or her tenure or ownership of the property. Quitclaim Deed - - correct answers A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest. Warranty - - correct answers A promise by the grantor of real property that they are the owner and will be responsible to the buyer if title is other than what they represent. Delivery - - correct answers The final and absolute transfer of a deed from a seller to a buyer in such a manner that it cannot be recalled by the seller. Bargain and sale deed - - correct answers Any deed that recites a consideration and purports to convey the real estate; a bargain and sale deed with a covenant against the grantor's act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title. Title - - correct answers The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights. Title Search - - correct answers An examination of public records, laws, and court decisions to disclose the current facts regarding the ownership of real estate. Marketable Title - - correct answers Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept. Chain of title - - correct answers A term applied to the past series of transactions and documents affecting the title to a given parcel of land.

Clouded title - - correct answers Title that is encumbered or burdened with defects. Clear title - - correct answers Title which is not encumbered or burdened with defects. Conditions in Title - - correct answers A provision in a deed that upon happening, or failure to happen, of a certain event, limits, enlarges, changes, or terminates the title of the purchaser. Title defect - - correct answers Any legal right held by others to claim property or to make demands upon the owner. Forfeiture of Title - - correct answers A provision in a deed creating a condition which will cause the title to be passed to another should certain circumstances occur. Acknowledgement - - correct answers The act by which a party executing a legal document goes before an authorized officer (a notary public), and declares the same to be his/her voluntary act and deed. JORT Recording - - correct answers The process of placing a document on file with a designated public official for public notice. Constructive Notice - - correct answers A fact, imputed to a person by law, which should have been discovered because of the person's actual notice of circumstances and the inquiry that a prudent person would have been expected to make. Actual Notice - - correct answers Express or implied knowledge of a fact. Inquiry Notice - - correct answers Notice the law presumes a reasonable person would obtain by inquiring into a property.

Examination of Title - - correct answers The investigation and interpretation of the record title to real property based on the title search or abstract. Notary - - correct answers One who is authorized to take acknowledgements. Abstract of Title - - correct answers A condensed history, or summary of all transactions affecting a particular tract of land. Title insurance - - correct answers Insurance against loss or damage resulting from defects or failure of title to a given parcel of real estate. Affadavit - - correct answers A sworn statement in writing. Estate - - correct answers A person's possessions; the extent of a person's interest in real property. Life Estate - - correct answers A grant, or reservation of the right of use, occupancy and ownership for the life of an individual. Tenancy by Entirety - - correct answers Ownership by married persons where each owns the entire estate with the survivor taking the whole estate upon the death of the other. Tenancy in Common - - correct answers An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners. Types of co-ownerships - - correct answers joint tenancy, tenancy in common, community property 4 unities of ownership - - correct answers time, title, interest, possession Unity of time - - correct answers Co-owners receive title

at the same time in the same conveyance Unity of Title - - correct answers Co-owners have the same type of ownership Unity of Interest - - correct answers Co-owners have an equal percentage of ownership Unity of possession - - correct answers Co-owners must have an Undivided Interest: All co-owners must have the right to possess or access all portions of the property Testament - - correct answers Another term for a will; commonly referred to as a last will and testament. Testate - - correct answers The state or condition of leaving a will at death. Testator - - correct answers One who makes a will. Devise - - correct answers The disposition of real property by a will. Intestate - - correct answers Designates the estate or condition of failing to leave a will at death.

Will - - correct answers A written document outlining the distribution of property previously owned by a person who dies. Administrator - - correct answers A person appointed by the court to settle affairs of an individual dying without a will. Executor - - correct answers A person named in a will to carry out the terms of a will. Attorney In-fact - - correct answers One who holds a power of attorney for another, allowing him to execute legal documents such as deeds, mortgages, etc, on behalf of person granting the power. Voluntary Alienation - - correct answers Transfer of title freely by the owner. Involuntary Alienation - - correct answers Transfer of title to real property as a result of a lien foreclosure sale, adverse possession, the filing of a petition in bankruptcy, or condemnation under power of eminent domain or upon the death of the titleholder, to the State when there are no heirs. Adverse Possession - - correct answers A claim made against the lands of another by virtue of open and notorious possession of the lands by the claimant. Condemnation - - correct answers Taking private property for public use through court proceedings. Escheat - - correct answers A reversion of property to the State when heirs capable of inheriting are lacking. Closing - - correct answers The process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes the signing and transfer of documents and distribution of funds. Closing Costs - - correct answers The miscellaneous expenses buyers and sellers normally incur in the transfer of ownership of real property over and above the cost of the property.

List at least five costs associated with a closing - - correct answers Attorney fees, title insurance, government fees, property taxes, commission Discuss three duties of a closing agent in the closing process - - correct answers Accurately describe the responsibilities of the buyer and seller, ensure the correct amounts are applied for each charge or fee, ensure there are no errors or inaccuracies Identify at least five items that are included on a settlement statement - - correct answers Property address, commissions collected, amount due by buyer, pay off information for seller, taxes & insurance Proration - - correct answers The division of certain settlement costs between a buyer and seller. Debit - - correct answers In a closing statement, an expense or money received against a credit. Credit - - correct answers In a closing statement, money to be received or credit given for money or an obligation given. HUD Form No. 1 - - correct answers A standard settlement form required by RESPA.