Washington State Real Estate Exam Questions and Answers (Latest Update 2023) 220 Questions, Exams of Nursing

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Answers (Latest Update 2023) 220 Questions

The voluntary and permanent cessation of use or enjoyment with no intention to resume or reclaim one's possession or interest. May pertain to an easement or a property. - Correct Answer ✅Abandonment Tenants cannot sign away their rights in advance of signing the lease. - Correct Answer ✅Abrogation A condensed version of the history of title to a particular parcel of real estate as recorded in the county clerk's records; consists of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property. - Correct Answer ✅Abstract of Title The joining, reaching, or touching of adjoining land. Abutting parcels of land have a common boundary. - Correct Answer ✅Abutting A method of calculating for tax purposes the depreciation of income property at a faster rat than would be achieved using the straight-line method. Note** any depreciation taken in excess of that which would be claimed using the straight-line rate is subject to recapture as ordinary income to the extent of gain resulting from the sale. - Correct Answer ✅Accelerated Depreciation A provision in a written mortgage, note, bond, or conditional sales contract that, in the event of a default, the whole amount of principal and interest may be declared to be due an payable at once. - Correct Answer ✅Acceleration Clause An increase or addition to land by the deposit of sand or soil washed up naturally from a river lake or sea. - Correct Answer ✅Accretion The actual depreciation that has occurred to a property at any given date; the difference between the cost of replacement new (as of the date of appraisal) and the present appraised value. - Correct Answer ✅Accrued Depreciation A declaration made by a person to a notary public, or other public official authorized to take acknowledgments that an instrument was executed by that person as a free and voluntary act. - Correct Answer ✅Acknowledgment

Answers (Latest Update 2023) 220 Questions

The result of legal action originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order. - Correct Answer ✅Actual Eviction Express information or fact; that which is know; actual knowledge. - Correct Answer ✅Actual Notice A mortgage in which the interest rate changes at predetermined intervals. The mortgage has caps, or a ceiling, that limits the amount it can change at the predetermined intervals. - Correct Answer ✅Adjustable-rate Mortgage The party appointed by the county court to settle the estate of a deceased person who died without leaving a will. - Correct Answer ✅Administrator A tax levied according to value; generally used to refer to real estate tax. Also called the general tax. - Correct Answer ✅Ad Valorem Tax The right of an occupant of land to acquire title against the real owner, where possession has been actual, continuous, hostile, visible, and distinct for the statutory period. - Correct Answer ✅Adverse possession A written statement signed and sworn to before a person authorized to administer an oath. - Correct Answer ✅Affidavit One who represents or has the power to act for another person (called the principal). The authorization may be express or implied. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be the owner's agent. - Correct Answer ✅Agent A written agreement whereby the purchaser agrees to buy certain real estate and the seller agrees to sell, upon terms and conditions set forth in the agreement. - Correct Answer ✅Agreement of sale A designated airspace over a piece of land. Air lots, like surgace property, may be transferred. - Correct Answer ✅Air Lot

Answers (Latest Update 2023) 220 Questions

The right to use the open space above a property, generally allowing the surface to be used for another purpose. - Correct Answer ✅Air Rights The act of transferring property to another. Alienation may be voluntary, such as by gift or sale; or involuntary, such as through eminent domain or adverse possession. - Correct Answer ✅Alienation The clause in a mortgage or deed of trst that states that the balance of the secured debt becomes immediately due and payable at the mortgagee's option if the property is sold by the mortgagor. In effect, this clause prevents the mortgagor from assigning the debt without the mortgagee's approval. - Correct Answer ✅Alienation Clause New deposits of soil as the result of accretion. - Correct Answer ✅Alluvion The tangible and intangible features that increase the value or desirability of real estate. - Correct Answer ✅Amenitites A federal law that became effective in 1992. It is designed to eliminate the discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, public transportation, telecommunications and government services. - Correct Answer ✅Americans with Disabilities Act (ADA) The liquidation of a financial burden by installment payments. - Correct Answer ✅Amortization A loan in which the principal, as well as the interest, is payable in monthly or other periodic installments over the term of the loan. - Correct Answer ✅Amortized Loan The laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Violations of antitrust laws in the real estate business generally involve either price fixing (brokers conspiring to set fixed compensation rates) or allocation of customers or markets (brokers agreeing to limit their areas of trade or dealing to certain areas or properties). - Correct Answer ✅Antitrust Laws

Answers (Latest Update 2023) 220 Questions

An estimate of the quantity, quality, or value of something. The process through which conclusions of property value are obtained; also refers to the report setting forth the process of estimation and conclusion of value. - Correct Answer ✅Appraisal An estimate of a property's present worth. - Correct Answer ✅Appraised Value An increase in the worth or value of a property due to economic or related causes that may prove to be either temporary or permanent; opposite of depreciation. - Correct Answer ✅Appreciation Belonging to; incident to. Ex: a garage is appurtenant to a house. The common interest in the common elements of a condominium is appurtenant to each apartment. - Correct Answer ✅Appurenant A means of settling a controversy between two parties through the medium of an impartial third party whose decision on the controversy (it is agreed) will be final and binding. - Correct Answer ✅Arbitration The process of merging two or more parcels of real estate to create one parcel. - Correct Answer ✅Assemblage The imposition of a tax, charge, or levy, usually according to established rates. - Correct Answer ✅Assessment The transfer in writing of rights or interest in a bond, mortgage, lease, or other instrument. - Correct Answer ✅Assignment The transfer of title to property to a grantee wherein he assumes liability for payment of an existing note secured by a mortgage agaisnt the property. Should the mortgage b foreclosed and the property sold for a lesser amount than that due, the grantee-purchaser who has assumed and agreed to pay the debt secured by the mortgage is personally liable for the deficiency. Before a seller may be relieved of liability under the existing mortgage, the lender must accept the transfer of liability for payment of the note. - Correct Answer ✅Assumption of Mortgage The method by which a debtor's property is placed in the custody of the law and held as security pending outcome of a creditor's suit. - Correct Answer ✅Attachment

Answers (Latest Update 2023) 220 Questions

The holder of a power of attorney. - Correct Answer ✅Attorney-in-fact An instrument written and signed by the attorney who examines the title, stating the attorney's opinion as to whether a seller may convey good title. - Correct Answer ✅Attorney's Opinion of Title A clause in a listing agreement that states that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited. - Correct Answer ✅Automatic Extension The sudden removal of land by natural forces, such as an earthquake. - Correct Answer ✅Avulsion the final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized. - Correct Answer ✅Balloon payment A deed that carries with it no warranties against liens or other encumbrances, but that does imply that the grantor has the right to convey title. Note that the grantor may add warranties to the deed at his or her discretion. - Correct Answer ✅Bargain and Sale Deed One of a set of imaginary lines running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land under the rectangular survey system (or government survey method) of property description. - Correct Answer ✅Base Line A permanent reference mark or point established for use by surveyors in measuring differences in elevation. - Correct Answer ✅Bench Mark The person for who a trust operates, or in whose behalf the income from a trust estate is drawn. Also refers to a lender who lends money on real estate and takes back a note and deed of trust from the borrower. - Correct Answer ✅Benficiary A provision in a will providing for the distribution of personal property. - Correct Answer ✅Bequest

Answers (Latest Update 2023) 220 Questions

A contract in which each party promises to perform an act in exchange for the other party's promises to perform. - Correct Answer ✅Bilateral Contract A written insturment given to pass title to personal property. - Correct Answer ✅Bill of Sale An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction. - Correct Answer ✅Binder A mortgage covering more than one parcel of real estate, providing fo reach parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt. - Correct Answer ✅Blanket Mortgage The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry, of minority persons into the neighborhood. - Correct Answer ✅Blockbusting The common name for those state laws that regulate the registration and sale of investment securities. - Correct Answer ✅Blue-Sky Laws A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office generally must be run by a licensed real estate broker working on behalf of the broker operating the principal office. - Correct Answer ✅Branch Office The failure, without legal excuse, of one of the parties to a contract to perform according to the contract.

• Correct Answer ✅Breach of Contract One who buys and sells for another for a commission. - Correct Answer ✅Broker A loan in which the monthly payments made by the borrower cover not only interest and a payment on the principal , but also one-twelfth of such expenses as taxes, insurance, assessments, and similar charges. The monthly payment is called a PITI payment. - Correct Answer ✅Budget Loan or Budget Mortgage

Answers (Latest Update 2023) 220 Questions

A zone or space between two different use districts. An example of a buffer zone would be a park between a residential district and a commercial district. - Correct Answer ✅Buffer Zone An ordinance specifying the minimum standards of construction of buildings for the protection of public safety and health. - Correct Answer ✅Building Code A line fixed at a certain distance from the front and/or sides of a lot beyond which no structure can project; a setback line used to ensure a degree of uniformity in the appearance of buildings and unobstructed light, air, and view. - Correct Answer ✅Building Line The limitations on the size or type of property improvements established by zoning acts or by deed or lease restrictions. - Correct Answer ✅Building Restrictions Bulk zoning controls the density of the development on land to avoid overcrowding. - Correct Answer ✅Bulk Zoning The theory that land ownership involves ownership of all legal rights to the land such as: Possession, control within the law, and enjoyment, rather than ownership of the land itself. - Correct Answer ✅Bundle of Legal Rights A mortgage in which the interest rate is reduced by paying interest in advance. A temporary buydown is for the initial years of the loan. A permanent buydown is for the life of the loan. - Correct Answer ✅Buydown Mortgage The legal ability of ability of persons to enter into a valid contract. Most persons have full capacity to contract, and are said to be competent parties. - Correct Answer ✅Capacity of Parties A tax on the profits realized from the sale of a capital asset. - Correct Answer ✅Capital Gains Any improvement that is made to extend the useful life of a property or add to its value. - Correct Answer ✅Capital Improvement

Answers (Latest Update 2023) 220 Questions

The initial capital and the long-term expenditures made to establish and maintain a business or investment property. - Correct Answer ✅Capital Investment The process of converting into present value (or obtaining the present worth of) a series of anticipated future periodic installments of net income. In real estate appraising, it usually takes the form of discounting. The formula is expressed as follows: Income / Rate = Value - Correct Answer ✅Capitalization The rate of return a property will produce on the owner's investment. - Correct Answer ✅Capitalization Rate The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. If expenses exceed income, a negative cash flow is the result. - Correct Answer ✅Cash Flow A type of insurance policy that protects a property owner or other person from loss or injury sustained as a result of theft, vadalism, or similar occurrences. - Correct Answer ✅Casualty Insurance A Latin phrase meaning "let the buyer beware" - Correct Answer ✅Caveat emptor A Latin phrase meaning "Let the seller beware" - Correct Answer ✅Caveat Venditor A certificate given by the federal government to qualified veterans to show their remaining eligibility for a VA guaranteed loan. - Correct Answer ✅Certificate of Eligibility A certificate of occupancy is issued after the building is inspected to make sure it complies with building codes. - Correct Answer ✅Certificate of Occupancy A certificate issued by the Veterans Ad ministration certifying the value, as determined by an approved VA appraiser, of property secured by a VA mortgage. - Correct Answer ✅Certificate of Reasonable Value A document issued by the lender to verify the loan balance. - Correct Answer ✅Certificate of Reduction

Answers (Latest Update 2023) 220 Questions

The document generally given to a purchaser at a tax foreclosure sale. A certificate of sale does not convey title; generally, it is an instrument certifying that the holder received title to the property after the redemption period had passed and that the holder paid the property taxes for that interim period. - Correct Answer ✅Certificate of Sale A statement of opinion on the status of the title ot a parcel of real property based on an examination of specified public records. - Correct Answer ✅Certificate of Title The type of deed used when land is donated to the government. - Correct Answer ✅Cession Deed The succession of conveyances from some accepted starting point whereby the present holder of real property derives a title. - Correct Answer ✅Chain of TItle An addition to a will that alters, explains, adds to, or confirms the will, but does not revoke it. - Correct Answer ✅Codicil A clause in insurance policies covering real property that requires the policy holder to maintain fire insurance; coverage is generally equal to at least 80 percent of the property's actual replacement cost. - Correct Answer ✅Coinsurance Clause Something of value given or pledged to a lender as security for a debt or obligation. - Correct Answer ✅Collateral A classification of real estate that includes income-producing properties. - Correct Answer ✅Commercial Property That property of married couple that is so mixed or commingled that it is difficult to determine whether it is separate or community property. Commingled property becomes community property. - Correct Answer ✅Commingled Property The illegal act of a real estate broker who mixes the money of other people with that of his or her own; by law brokers are required to maintain a separate trust account for the funds of other parties held temporarily by the broker. - Correct Answer ✅Commingling

Answers (Latest Update 2023) 220 Questions

Those parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium, or are normally used in common by all of the condo residents. All condo owners have an undivided ownership interest in the common elements. - Correct Answer ✅Common Elements The body of law based on custom, usage, and court decisions. - Correct Answer ✅Common Law A system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage. - Correct Answer ✅Community Property A part of the Housing and Community Development passed in 1977. The purpose of the act is to prevent the practice of redlining and disinvestment by lenders in certain areas of a city. - Correct Answer ✅Community Reinvestment Act The properties listed in an appraisal report that are substantially equivalent to the subject property. - Correct Answer ✅Comparables Those persons who are recognized by law as being able to contract with others; usually those of legal age and sound mind. - Correct Answer ✅Competent Parties A judicial or administrative proceeding to exercise the power of eminent domain, by which a government agency takes private property for public use and compensates the owner. - Correct Answer ✅Condemnation A permit granted that allows the holder to build a special-purpose property that is inconsistent with zoning in the area. A conditional permit is generally issued to allow buildings for the good of the public, such as hospitals and houses of worship in a residential area. - Correct Answer ✅Conditional-Use Permit The absolute ownership of an apartment or a unit, generally in a multi-unit building, based on a legal description of the airspace that the unit actually occupies, plus an undivided interest in the ownership of the common elements that are owned jointly with the other condo unit owners. The entire tract of real estate included in a condo development is called a parcel, or development parcel. One apartment or space in a condo building, or a part of the property intended for independent use and having lawful

Answers (Latest Update 2023) 220 Questions

access to a public way is called a unit. Ownership of one unit also includes a definite undivided interest in the common elements. - Correct Answer ✅Condominium The maximum value is achieved when the property is in harmony with its surroundings. - Correct Answer ✅Conformity Something of value that induces one to enter into a contract. Consideration may be valuable (money or commodity) or good (love and affection). - Correct Answer ✅Consideration Acts done by the landlord that so materially disturb or impair the tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. Also refers to a purchaser's inability to obtain clear title. - Correct Answer ✅Constructive Eviction Notice given to the world by recorded documents. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property. - Correct Answer ✅Constructive Notice A provision in a contract that requires completion or that a certain event must occur before the contract becomes binding. - Correct Answer ✅Contingency An agreement entered into by two or more legally competent parties by the terms of which one or more of the parties, for a consideration, undertakes to do or to refrain from doing some legal act or acts. A contract may be either unilateral, where only one party is bound to act, or bilateral, where all parties to the instrument are legally bound to act as prescribed. - Correct Answer ✅Contract A contract for the sale of real estate wherein the sales price is paid in periodic installments by the purchaser, who is in possession, although title is retained by the seller until final payment. Also called an installment contract or land contract. - Correct Answer ✅Contract for Deed A contract of sale of real estate in which the consdieration is paid wholly or partly in property. - Correct Answer ✅Contract for exchange of real estate

Answers (Latest Update 2023) 220 Questions

Rental income received under the current lease agreement. - Correct Answer ✅Contract Rent The value of any part of the property is measured by its effect on the value of the whole - Correct Answer ✅Contribution A mortgage (loan) wherein the borrower has less than a 20 percent down payment. The lender may require that the borrower purchase private mortgage insurance to reduce the lender's risk. - Correct Answer ✅Conventional Insured Mortgage A life estate created by the grantor rather than by law. - Correct Answer ✅Conventional Life Estate A mortgage (loan) where real property is used as security for the payment of the debt and the loan is not insured through FHA or guaranteed by VA. - Correct Answer ✅Conventional Mortgage A mortgage (loan) wherein the borrower has a 20 percent or greater down payment, and the lender accepts the creditworthiness of the borrower and the property as security for the loan. - Correct Answer ✅Conventional Uninsured Mortgage The process of changing from one form of ownership to another, such as apartment use to condo use. - Correct Answer ✅Conversion A written instrument that evidences transfer of some interest in real property from one person to another. - Correct Answer ✅Conveyance A residential multiunit building whose title is held by a trust or corporation, which is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholers of the corporation, each having a proprietary lease. - Correct Answer ✅Cooperative An enity or organization created by operation of law whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until dissolved according to legal procedures.. - Correct Answer ✅Corporation

Answers (Latest Update 2023) 220 Questions

Used in the government survey to compensate for the curvature of the earth. - Correct Answer ✅Correction Lines The process of estimating the value of a special purchase property. The formula is as follows: Reproduction or replacement cost - Depreciation + Land = Value - Correct Answer ✅Cost Approach The business of providing people with expert advice on a subject, based on the counselor's extensive, expert knowledge of the subject. - Correct Answer ✅Counseling A new offer made as a reply to an offer received, having the effect of voiding the original offer, which cannot be accepted thereafter unless revived by the offeror's repeating it. - Correct Answer ✅Counteroffer A promise to do or to refrain from doing an act. The covenants found in a general warranty deed are seisin, encumbrances, further assurance, quite enjoyment, and warranty forever. - Correct Answer ✅Covenant In a deed, this covenant ensures that the grantee and the grantee's heirs have the right to the property free from interference from the acts or claims of third parties. IN a lease, this covenant ensures the tenants' right of possession without interference from the landlord or third parties. - Correct Answer ✅Covenant of Quiet Enjoyment When the cost of fixing the property does not exceed the value of the property - Correct Answer ✅Curable Depreciation A life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife. Many states have abolished curtesy. - Correct Answer ✅Curtesy The cycle of real estate is growth, stability, decline, and restoration - Correct Answer ✅Cycle A horizontal plane from which heights and depths are measured. - Correct Answer ✅Datum

Answers (Latest Update 2023) 220 Questions

Doing Business As - Correct Answer ✅Dba A note or bond given as evidence of debt and issued without security. - Correct Answer ✅Debenture Something owed to another; an obligation to pay or to return something. - Correct Answer ✅Debit A borrower's periodic payment, comprising principal and interst, on the unpaid balance of a mortgage. - Correct Answer ✅Debit Service When adding improvements to the land does not produce a proportional increase in the property value.

• Correct Answer ✅Decreasing returns A written instrument that, when executed and delivered, conveys title to, or an interest in, real estate. - Correct Answer ✅Deed A three-party instrument in which the trustor conveys legal title to the trustee for the benefit of the beneficiary. The trustee has full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement. - Correct Answer ✅Deed in Trust The clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions, such as limiting the density of the buildings, dictating the types of structures that can be erected, and preventing buildings from being used for specific purposes or from being used at all. - Correct Answer ✅Deed Restrictions The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due. - Correct Answer ✅Default A provision or condition in a deed or in a separate instrument that, when being performed, renders the instrument void. - Correct Answer ✅Defeasance

Answers (Latest Update 2023) 220 Questions

An estate in land in which the holder has fee simple title subject to being divested on the happening of a specified condition. Two categories: (1) fee simple determinable or special limitation, and (2) fee simple subject to a conditions subsequent. - Correct Answer ✅Defeasible Fee Estate A personal judgment levied against the mortgagor when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full. - Correct Answer ✅Deficiency Judgment Those unpaid taxes that are past due - Correct Answer ✅Delinquent taxes The legal act of transferring ownership. Documents, such as deeds and mortgages, must be delivered and accepted to be valid. - Correct Answer ✅Delivery Delivery of a deed to a third person until the performance of some act or condition by one of the parties.

• Correct Answer ✅Delivery in Escrow The willingness of a number of people to accept available goods at a given price; often coupled with supply - Correct Answer ✅Demand The zoning ordinances that restrict the average maximum number of houses per acre that may be built within a particular area, generally a subdivision. - Correct Answer ✅Density zoning In appraisal, a loss of value in property due to all causes, including physical deterioration, functional depreciation, and economic obsolescence. In real estate investment, an expense deduction for tax purposes as taken over the period of ownership of income property. - Correct Answer ✅Depreciation The hereditary succession of an heir to the property of a relative who dies intestate. - Correct Answer ✅Descent An agent who has been appointed by a broker to act for a specific principal or client. - Correct Answer ✅Designated Agent

Answers (Latest Update 2023) 220 Questions

A defeasible fee estate in which the property automatically reverts to the grantor upon the occurrence of a specified event or condition. Also known as special limitation. - Correct Answer ✅Determinable Fee Estate A transfer of real estate by will or last testament. The donor is the devisor and the recipient is the devisee. - Correct Answer ✅Devise The principle of diminishing returns applies when a given parcel of land reaches its maximum percentage return on investment, and further expenditures for improving the property yield a decreasing return. - Correct Answer ✅Diminishing Returns An added loan fee charged by a lender to make the yield on a lower-than-market-value FHA or VA loan competitive with higher-interest conventional loans. - Correct Answer ✅Discount Points The rate of interest a commercial bank must pay when it borrows from its Federal Reserve Bank. Consequently, the discount rate is the rate of interest the banking system carries within its own framework. Member banks may take certain promissory notes that they have received from customers and sell them to their district Federal Reserve bank for less than face value. With the funds received, the banks can make further loans. Changes in the discount rate may cause banks and other lenders to reexamine credit policies and condition's. - Correct Answer ✅Discount Rate To oust from land by legal process. - Correct Answer ✅Dispossess A property that includes in its ownership the appurtenant right to use an easement over another's property for a specific purpose. - Correct Answer ✅Dominant Tenement The legal right or interest recognized in some states that a wife acquires in the property her husband held or acquired during their marriage. During the lifetime of the husband, the right is only a possibility of an interest; on his death, it can become an interest in land. Many states have abolished dower. - Correct Answer ✅Dower This occurs when an agent represents both parties in the same transaction. Both parties are clients. - Correct Answer ✅Dual Agency

Answers (Latest Update 2023) 220 Questions

Reasonable care and protection agents owe any party that is their client; the obligation of a person to use good-faith efforts to perform the terms of a contract, such as the buyer's responsibility to make efforts to obtain financing if that was a term of the sales contract. - Correct Answer ✅Due Diligence A clause in a mortgage allowing th elender the right to implement the acceleration clause in the mortgage if the borrower transfers title to the property. - Correct Answer ✅Due-on-sale Clause The use of unlawful constraint that forces action or inaction against a person's will. - Correct Answer ✅Duress An amount of money deposited by a buyer under the terms of a contract. - Correct Answer ✅Earnest Money Deposit A right to use the land of another for a specific purpose, such as for a right-of-way or for utilities; an incorporeal interest in land. An easement appurtenant passes with the land when conveyed. - Correct Answer ✅Easement An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example. a right of ingress and egress over a grantor's land. - Correct Answer ✅Easement by Necessity An easement acquired by continuous, open, uninterrupted, exclusive, and adverse use of the property for the period of time prescribed by state law. - Correct Answer ✅Easement by Prescription An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner. For example: a right to an easement granted by Eleanor Franks to Joe Fish to use a portion of her property for the rest of his life would be an easement in gross. - Correct Answer ✅Easement in Gross The period of time over which an improved property will earn an income adequate to justify its continued existence. - Correct Answer ✅Economic Life The impairment of desirability or useful life arising from factors external to the property, such as economic forces or environmental changes that affect supply and demand relationships in the market.

Answers (Latest Update 2023) 220 Questions

Loss in the use and value of a property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent in the property. - Correct Answer ✅Economic Obsolescence Those growing crops produced annually through the tenant's own care and labor, and that can be taken away after the tenancy is ended. Personal property. IF the tenant terminates the tenancy voluntarily, the tenant is not generally entitled to the emblements. - Correct Answer ✅Emblements The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court determines that the use is a public use and determines the price or compensation to be paid to the owner. - Correct Answer ✅Eminent Domain A fixture, or structure, such as a wall or fence that invades a portion of a property belonging to another. - Correct Answer ✅Encroachment Any lien, such as a mortgage, tax, or judgment lien, an easement, a restriction on the use of the land, or an outstanding dower right that may diminish the value of the property. - Correct Answer ✅Encumbrance A federal act that prohibits discrimination by lenders on the basis of race, color, religion, sex, national origin, age, or marital status in any aspect of a credit transaction. - Correct Answer ✅Equal Credit Opportunity Act (ECOA) The raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts. - Correct Answer ✅Equalization A lien that arises out of common law, wherein the parties have agreed in writing that a certain property will be held as security for a debt. - Correct Answer ✅Equitable Lien The right of a defaulted borrower to redeem property before foreclosure upon full payment of the outstanding debt, as well as accrued interest and related costs prior to the foreclosure. - Correct Answer ✅Equitable Right of Redemption

Answers (Latest Update 2023) 220 Questions

The interest held by a vendee under a contract for deed or a sales contract; the equitable right to obtain absolute ownership to property when legal title is held in another's name' an insurable interest. - Correct Answer ✅Equitable Title The interest or value that an owner has in a property over and above any mortgage indebtedness - Correct Answer ✅Equity The gradual wearing away of land by water, wind, and general weather conditions; the diminishing of property caused by the elements. - Correct Answer ✅Erosion An insurance that protects brokers from loss due to errors, mistakes, and negligence. - Correct Answer ✅Errors and Omissions Insurance A clause found in a mortgage or lease that allows the payment to adjust over the life of the mortgage or lease. - Correct Answer ✅Escalation Clause The reversion of property to the state in the event the owner thereof dies without leaving a will and has no heirs to whom the property may pass by lawful descent. - Correct Answer ✅Escheat The closing of a transaction through a third party, called an escrow agent or escrowee, who receives certain funds and documents to be delivered on the performance of certain conditions in the escrow agreement. - Correct Answer ✅Escrow An interest for a certain, exact period of time in property leased for a specified consideration. - Correct Answer ✅Estate for Years An estate owned by one person. - Correct Answer ✅Estate in severalty A legal instrument executed by a mortgagor showing the amount of the unpaid balance due on a mortgage and stating that the mortgagor has no defenses or offsets against the mortgagee at the time of execution of the certificate. AKA certificate of no defense - Correct Answer ✅Estoppel Certificate

Answers (Latest Update 2023) 220 Questions

A proof of ownership of property, which is commonly a certificate of title, a title insurance policy, an abstract of title with lawyer's opinion, or a Torrens registration certificate. - Correct Answer ✅Evidence of Title A transaction in which all or part of the consideration for the purchase of real property is the transfer of like-kind property (that is, real estate for real estate). - Correct Answer ✅Exchange A buyer brokerage agreement wherein the broker is entitled to a payment only if the broker locates the property the buyer purchases. The buyer can find property without the services of the agent. - Correct Answer ✅Exclusive-Agency Buyer Agency Agreement A listing contract under which the owner appoints a real estate broker as an exclusive agent for a designated period of time to sell the property on the owner's stated terms for a commission. However, the owner reserves the right to sell without paying anyone a commission by selling to a prospect who has not been introduced or claimed by the broker. - Correct Answer ✅Exclusive-Agency Listing An exclusive-agency agreement wherein the buyer is legally bound to compensate the agent whenever the buyer purchases a property of the type described in the contract. This is true even if the buyer finds the property. - Correct Answer ✅Exclusive Buyer Agency Agreement A listing contract under which the owner appoints a real estate broker as the owner's exclusive agent for a designated period of time to sell the property on the owner's stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker. - Correct Answer ✅Exclusive-Right-to-Sell Listing A hold harmless clause that may be found in contracts excusing a party for injuries to another. - Correct Answer ✅Exculpatory Clause A contract in which all parties have fulfilled their promises and thus performed the contract. - Correct Answer ✅Executed Contract The singing and delivery of an instrument. Also, a legal order directing an official to enforce a judgment against the property of a debtor. - Correct Answer ✅Execution

Answers (Latest Update 2023) 220 Questions

The male designated in a will to handle the estate of the deceased. - Correct Answer ✅Executor A contract under which something remains to be done by one or more of the parties. - Correct Answer ✅Executory Contract The female designated in a will to handle the estate of the deceased. The probate court must approve any sale of property by the executrix. - Correct Answer ✅Executrix The short-term costs that are deducted from an investment property's income, such as minor repairs, regular maintenance, and renting costs. - Correct Answer ✅Expenses An oral or written contract in which the parties state their terms and express their intentions in words. - Correct Answer ✅Expressed contract A protected class under federal fair housing law. A landlord cannot refuse to rent to a head of the household with minor children or to a pregnant woman. - Correct Answer ✅Familial Status The term for the Title VIII of the Civil Rights Act enacted in 1968 that prohibits discrimination based on race, color, sex, religion, or national origin in the sale and rental or residential property. - Correct Answer ✅Federal Fair Housing Act A system created by the Federal Home Loan Bank Act of 1932 to provide for a central reserve credit system for savings institutions engaged in home mortgage finance (predominantly savings and loans). The system is divided into 12 federal home loan bank districts with an FHLB in each district. - Correct Answer ✅Federal Home Loan Bank System A member of the secondary mortgage market that primarily buys conventional loans. - Correct Answer ✅Federal Home Loan Mortgage Corporation A federal administrative body created by the National Housing Act in 1934 to encourage improvement in housing standards and conditions to provide an adequate home financing system through the insurance of housing mortgages and credit, and to exert a stabilizing influence on the mortgage market. - Correct Answer ✅Federal Housing Administration (FHA)

Answers (Latest Update 2023) 220 Questions

An annual tax based on the income, including monies derived from the lease, use, or operation of real estate. - Correct Answer ✅Federal Income Tax Fannie Mae is the popular name for this federal agency that creates a secondary market for existing mortgages. FNMA does not loan money directly, but rather buys VA, FHA, and conventional loans. - Correct Answer ✅Federal National Mortgage Association (FNMA) The government controls banks located in each of the 12 Federal Reserve districts, established by the Federal Reserve Act of 1913. - Correct Answer ✅Federal Reserve Banks The highest form of ownership recognized by law. AKA: Fee Simple or Ownership in Fee. - Correct Answer ✅Fee Simple Absolute A defeasible fee estate in which the grantor reserves right of reentry to the property when the condition of ownership is violated. - Correct Answer ✅Fee Simple Subject to a Condition Subsequent A Federal Housing Administration (FHA) evaluation of a property as security for a loan. Includes study of the physical characteristics of the property and surroundings; the location of the property; the prospective borrower's ability and willingness to repay a loan; and the mortgage amount and monthly payments. - Correct Answer ✅FHA Appraisal A loan insured by the FHA and made by an approved lender in accordance with the FHA's regulations - Correct Answer ✅FHA Loan A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, and principal and agent. - Correct Answer ✅Fiduciary Relationship A mortgage that creates a superior voluntary lien on the property mortgaged relative to other charges or encumbrances against same. - Correct Answer ✅First Mortgage

Answers (Latest Update 2023) 220 Questions

An article that was once personal property, but has been so affixed to real estate that is has become real property. - Correct Answer ✅Fixture The FAR indicates the relationship between a building area and land, or the relationship between the square footage of the building and the square footage of the land. - Correct Answer ✅Floor Area Ratio (FAR) A summary proceeding for restoring to possession of land one who is wrongfully kept out or has been wrongfully deprived of the possession. - Correct Answer ✅Forcible Entry and Detainer A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property to either the hold of the mortgage or a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage. - Correct Answer ✅Foreclosure A will written by an attorney, with two subscribing witnesses and with necessary language. Such a will may appoint the executor of the estate as independent agent and avoid the necessity of a bond. - Correct Answer ✅Formal Will An oversized or undersized section that is not exactly one mile by one mile is a fractional section; used only in the government or rectangular survey. - Correct Answer ✅Fractional Sections A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth that actually does deceive. - Correct Answer ✅Fraud An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate. - Correct Answer ✅Freehold Estate