Tennessee Real Estate Exam
Prep
Question Answer
The Consumption of available vacant property in a building or
Absorption
market.
A written, chronological record of the title records affecting rights
abstract of title
and interests in a parcel of real property.
A right granted through a loan clause enabling the lender to call
all sums immediately due and payable on a loan should the acceleration
borrower violate certain provisions of the loan agreement.
An increase in land caused by natural phenomena, for example a
accretion
deposit of sand on a beachfront property due to a tropical storm.
Knowledge given or received directly through demonstrable
actual notice (see also
evidence. Actual notice of ownership: reading a bill of sale,
constructive notice)
inspecting a deed, searching title records.
A mortgage loan having an interest rate that can be periodically
raised or lowered in accordance with the movement of a financial adjustable rate mortgage
index.
The beginning basis, or cost, of a property plus the costs of
adjusted basis
capital improvements, minus all depreciation expense.
A real property's annual tax levied by taxing entities according to
ad valorem tax
the property's assessed value.
The entry, occupation, and use of another's property without the
consent of the owner or where the owner took no action to evict
adverse possession
the adverse possessor. May lead to loss of legal title if the
adverse possessor fulfills certain requirement.
A fiduciary relationship between an agent and a principal where
respective rights and duties are prescribed by laws of agency agency
and by the agency agreement executed by two parties.
The party in an agency relationship who is hired by the principal
to perform certain duties. In so doing, the agent must also uphold agent
fiduciary duties owed to the principal.
Rights in real property as they apply to the property's airspace, or
air rights
all space above the surface within the parcel's legal boundaries.
"A transfer of title to real property by voluntary or involuntary
means. Voluntary- public grant, deed, will;Involuntary - descent,
alienation
escheat, foreclosure, eminent domain, adverse possession,
estoppel"
An act of collusion where two or more competitors agree to limit
competitive activity in portions of the market in exchange for allocation of markets
reciprocal restrictions from the others.
A partial or complete reduction of a loan's principal balance over amortization
the loan term, achieved by periodic payment s which include
,principal as well as interest.
The total cost of credit to a borrower inclusive of finance charges
annual percentage rate
and the state interest rate, expressed as an annual rate of
(APR)
interest.
Legislation aimed at preventing unfair trade practices and
monopoly, including collusion, price fixing, and allocation of antitrust laws
markets.
An opinion of value of a property developed by a professional
and disinterested third party and supported by data and appraisal
evidence.
a duly trained and licensed professional authorized to perform
appraiser
appraisals for other parties.
An increase in the value of a property generally owing to the
appreciation
economic forces beyond the control of the owner.
A right, interest, or improvement that attaches to and transfers
with a parcel of real property, such as an easement or a riparian appurtenance
right.
Payment that occurs at the end of a payment term rather than at
the beginning. Examples of items paid in arrears include taxes arrears
and interest.
A combining of contiguous parcels of real estate into a single
tract, performed with the expectation that increase value will assemblage
result.
The value of a property as established by assessors for the
assessed value
purpose of ad valorem taxation.
A periodic charge payable by condominium owners for the
assessment
maintenance of the property's common elements.
A tangible or intangible item of value. asset
A sale of a business involving the transfer of assets as opposed
asset sale
to the liabilities or stock.
A transfer of one's entire interest in an item of real or personal
assignment
property. The assignor transfers the interest to the assignee.
In a sale of real property, the transfer of the seller's mortgage
loan obligations to the buyer. Requires, in most cases, approval assumption
of the leader.
A lump sum payment on any loan which retires the remaining
balloon payment
loan balance in full.
An imaginary latitude line within the rectangular survey system
that is designated in relation to a principal meridian for purposes base line
of identifying townships.
The original cost or market value of an acquired asset beginning basis
A registered marker denoting an official elevation above sea
benchmark
level; used by surveyors to identify other elevations in the area.
A party named to benefit from the yield or disposition of an asset
beneficiary
identified in a trust, insurance policy, or will.
A contract where both parties promise to perform in exchange for
bilateral contract
performance by the other party.
A temporary agreement to buy a property evidenced by a binder
valuable deposit. Receipt of the deposit binds a seller to a good-
, faith agreement to sell a property, provided a complete sale
contract is executed within a certain period.
An advertisement that does not contain the identity of the
blind ad
advertiser.
Inducing property owners to sell or rent their holdings due to an
impending downturn in their property values, often owing to a blockbusting
change in the area's ethnic or social composition.
A direct agent of the principal who is hired for compensation to
broker
perform a stated service such as procuring a customer.
An estimate of a property's value rendered by a party who is not
necessarily licensed, objective, or qualified. The estimate may broker's opinion of value
not be a complete appraisal.
The business of procuring customers on behalf of clients for the
brokerage
purpose of completing a real estate transaction.
The brokerage of a business enterprise in addition to any real
business brokerage
property it may own or lease.
A specific standard of construction or maintenance of any aspect
of an improved property established by local government building code
officials.
A set of rights associated with ownership of property, including
bundle of rights
the rights to possess, use, transfer, encumber and exclude.
A loan arrangement where the borrower pays extra interesting
advance for the future benefit of a lower interest rate over the buydown
loan term.
A broker's listing with a buyer to locate a suitable property for buyer representation
purchase of lease. agreement
A market characterized by an excess of sellers over buyers. buyer's market
The difference between the net sales proceeds of an asset and
capital gain (or loss)
its adjusted basis.
An upgrading of improved property having sufficient magnitude to
constitute an addition to the property's basis. Contrasts with capital improvement
repair and maintenance.
The rate of return on capital an investor will demand from the
investment property, or the rate of return that the property will capitalization rate
actually produce.
The remaining positive or negative amount of income an
investment produces after subtracting all operating expenses and cash flow
debt service from gross income.
A document confirming that a newly constructed or renovated
property has fully complied with all building codes and is ready certificate of occupancy
for occupancy and use.
A document expressing the opinion of a title officer or attorney
that a property seller is in fact the owner of a good title based on certificate of title
a review of title records.
Successive property owners of record dating back to the original
chain of title
grant of title from the state to a private party.
An item of personal property. chattel
A meeting of principal parties where a seller transfers title and a
closing
buyer pays monies owed the seller and lender.
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