Exam (elaborations)
Texas Principles of Real Estate II: Questions/Answers
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Texas Principles of Real Estate II: Questions/Answers
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Texas Principles of Real Estate II: Questions/AnswersAbstract of title Right Ans - an abbreviated history of a property, including
information on any transfers, grants, wills, conveyances, liens, and
encumbrances
Acceleration clause Right Ans - a clause in a security instrument
(mortgage/deed of trust) that makes the entire loan amount due immediately
upon default
Acquisition Right Ans - the process of gaining ownership or control of real
property or an interest in real property
Acreage Right Ans - a unit of area measurement used to determine the size
of land; 1 acre = 43,560 square feet
Actual eviction Right Ans - the legal process by which someone is expelled
from a property and prevented from re-entry
Adjustable-rate mortgage (ARM) Right Ans - a mortgage with an interest
rate that can be adjusted based on fluctuations in the cost of money
Adverse possession Right Ans - involuntary transfer of title from an owner
who does not use or inspect their land for a number of years to another
person who has some claim to the land and takes possession
Affidavit as to debts and liens Right Ans - a sworn statement in which the
seller assures the title company (and the buyer) that there are no liens, unpaid
bills for repairs or improvements, or undisclosed defects in the title
Alienation Right Ans - the transfer of title to real estate
Amortization Right Ans - the process of paying off a debt/mortgage in
regular installments based on a fixed payment schedule
Amortization Right Ans - the initial payment made when buying something
on credit; a down payment is paid directly by the buyer to the seller
,Appraisal Right Ans - the value of a property, based on factors determined
by the opinion of a certified appraiser L
Appraisal report Right Ans - a report from a licensed appraiser that sums
up a property's market value based on collected data
Appraisal review Right Ans - an evaluation or audit of a property appraisal;
usually initiated by a lending underwriter
Appraised value Right Ans - an estimation of property's value as of a
specific date, performed by a certified appraiser
Appreciation Right Ans - the increase in value of a property
Assessed value Right Ans - the value placed on a property by a
governmental unit for use in calculating property taxes
Balloon payment Right Ans - a payment at the end of a loan period which
includes the total outstanding balance of the loan L
Bargain and sale deed Right Ans - a deed without any warranty against
encumbrances; only implies that the grantor holds title and possession of the
property
blockbusting Right Ans - the illegal act of causing owners to sell their
homes by creating fear that members of a protected class are moving into the
area; aka panic peddling
Bridge loan Right Ans - a short-term loan used to transition from one loan
to another; can connect borrower from construction loan to eventual
mortgage loan (or current home to their new home)
Building codes Right Ans - regulations pertaining to building design,
materials, safety, sanitation, and structure
Capital expenditure Right Ans - funds used by a company to acquire or
upgrade physical assets like property, industrial buildings, or equipment
, cash flow Right Ans - the cash that an investment generates after
accounting for the operating expenses, debt service, and taxes associated with
the enterprise
chain of title Right Ans - the entire chronological record of a property's
ownership
chronological age Right Ans - the literal age of a property
closing Right Ans - the final step of executing a real estate transaction in
which consideration is paid and ownership of the property is transferred
closing agent Right Ans - the representative of the title insurance company;
usually conducts closing
closing costs Right Ans - fees paid at the closing of a real estate transaction
Closing Disclosure Right Ans - a form used to itemize services and fees
charged to the borrower by the lender when applying for a real estate loan;
aka closing statement
collateralized mortgage obligations (CMOs) Right Ans - collateralized debt
obligations (CDOs) that are made up of bundles or pools of mortgageback
securities (MBS) created by government agencies or investment banks and
issued as investment-grade bonds; almost all CMOs are REMICs
commercial banks Right Ans - a type of depository institution designed to
be safe depositories and lenders for a multitude of commercial banking
activities
comparable Right Ans - any property that has sold and is similar enough in
features, location, and proximity in time to inform the value of the subject
property
comparative market analysis (CMA) Right Ans - a report that compares the
prices of recently sold or listed homes ("comparables") in order to estimate
the market value of a similar property (the "subject property") located in the
same area
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