KENTUCKY REAL ESTATE CORRECT EXAM ANSWERS
AND QUESTIONS SET A+
✔✔Annexation - ✔✔Process of converting personal property into real property.
✔✔Annual Percentage Rate (APR) - ✔✔The relationship of the total finance charges
associated with a loan. This must be disclosed to borrowers by lenders under the Truth
in Lending Act.
✔✔Anticipation - ✔✔The appraisal principle that holds that value can increase or
decrease based on the expectation of some future benefit or detriment produced by the
property.
✔✔Antitrust Laws - ✔✔Laws designed to preserve the free enterprise of the open
marketplace by making illegal certain private conspiracies and combinations formed to
minimize competition. Most violations of antitrust laws in the real estate business
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).
✔✔Appraisal - ✔✔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 that sets forth the process of estimation and conclusion of value.
✔✔Appraiser - ✔✔An independent person trained to provide an unbiased estimate of
value.
✔✔Appreciation - ✔✔An increase in the worth or value of a property due to economic or
related causes, which may prove to be either temporary or permanent; opposite of
depreciation.
✔✔Appurtenance - ✔✔A right, privilege, or improvement belonging to, and passing
with, the land; "runs with the land."
,✔✔Appurtenant Easement - ✔✔An easement that is annexed to the ownership of one
parcel and allows the owner the use of the neighbor's land.
✔✔Area - ✔✔A level surface or piece of ground; the size of a surface; the amount of a
two-dimensional object.
✔✔Area Preference - ✔✔People's desire for one area over another, based on a number
of factors such as history, reputation, convenience, scenic beauty, and location.
✔✔Asbestos - ✔✔A mineral once used in insulation and other materials that can cause
respiratory diseases.
✔✔Assemblage - ✔✔The combining of two or more adjoining lots into one larger tract to
increase their total value.
✔✔Assessed Value - ✔✔The value set on property for taxation purposes.
✔✔Assessment - ✔✔The imposition of a tax, charge, or levy, usually according to
established rates.
✔✔Assignment - ✔✔The transfer in writing of interest in a bond, mortgage, lease, or
other instrument.
✔✔Assume - ✔✔A buyer is personally obligated for the payment of the entire debt of a
seller; that is, the buyer assumes the debt. The original seller is not liable for the debt if
the property is foreclosed on.
✔✔Assumption of Mortgage - ✔✔Acquiring title to property on which there is an existing
mortgage and agreeing to be personally liable for the terms and conditions of the
mortgage, including payments.
✔✔Attachment - ✔✔The act of taking a person's property into legal custody by writ or
other judicial order to hold it available for application to that person's debt to a creditor.
✔✔Attorney's Opinion of Value - ✔✔An abstract of title that an attorney has examined
and has certified to be, in his or her opinion, an accurate statement of the facts
concerning the property's ownership.
✔✔Hypothecation - ✔✔To pledge property as security for an obligation or loan without
giving up possession of it
✔✔Abstract of Title - ✔✔Abstract of Title
, ✔✔Acceleration Clause - ✔✔"The condensed history of a title to a particular parcel of
real estate, consisting of a summary of the original grant and all subsequent
conveyances and encumbrances affecting the property and a certification by the
abstractor that the history is complete and accurate."
✔✔Accession - ✔✔The clause in a mortgage or deed of trust that can enforced to make
the entire debt due immediately if the borrower defaults on an installment payment or
other covenant.
✔✔Accretion - ✔✔Acquiring title to additions or improvements to real property as a
result of the annexation of fixtures or the accretion of alluvial deposits along the banks
of streams.
✔✔Accrued Depreciation - ✔✔"The increase or addition of land by the deposit of sand
or soil washed up naturally from a river, lake, or sea."
✔✔Accrued Items - ✔✔"Loss in value resulting from the property's physical
deterioration, external depreciation, and functional obsolescence."
✔✔Acknowledgment - ✔✔"On a closing statement, items of expense that are incurred
but not yet payable, such as interest on a mortgage loan or taxes on real property."
✔✔Acre - ✔✔"A formal declaration made before a duly authorized officer, usually a
notary public, by a person who has signed a document."
✔✔Actual Eviction - ✔✔"A measure of land equal to 43,560 square feet, 4,840 Square
yards, 4,047 square meters, 160 square rods, or 0.4047 hectares."
✔✔Actual Notice - ✔✔The legal process that results in the tenant's being physically
removed from the leased premises.
✔✔Ad Valorem Tax - ✔✔Express information or fact; that which is known; direct
knowledge.
✔✔Addendum - ✔✔"A tax levied according to value, generally used to refer to real
estate tax. Also called the general tax."
✔✔Adjustable-Rate Mortgage (ARM) - ✔✔Any provision added to an existing contract
without altering the content of the original. Must be signed by all parties.
✔✔Administrator - ✔✔"A loan characterized by a fluctuating interest rate, usually one
tied to a bank or savings and loan association cost-of-funds index."
AND QUESTIONS SET A+
✔✔Annexation - ✔✔Process of converting personal property into real property.
✔✔Annual Percentage Rate (APR) - ✔✔The relationship of the total finance charges
associated with a loan. This must be disclosed to borrowers by lenders under the Truth
in Lending Act.
✔✔Anticipation - ✔✔The appraisal principle that holds that value can increase or
decrease based on the expectation of some future benefit or detriment produced by the
property.
✔✔Antitrust Laws - ✔✔Laws designed to preserve the free enterprise of the open
marketplace by making illegal certain private conspiracies and combinations formed to
minimize competition. Most violations of antitrust laws in the real estate business
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).
✔✔Appraisal - ✔✔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 that sets forth the process of estimation and conclusion of value.
✔✔Appraiser - ✔✔An independent person trained to provide an unbiased estimate of
value.
✔✔Appreciation - ✔✔An increase in the worth or value of a property due to economic or
related causes, which may prove to be either temporary or permanent; opposite of
depreciation.
✔✔Appurtenance - ✔✔A right, privilege, or improvement belonging to, and passing
with, the land; "runs with the land."
,✔✔Appurtenant Easement - ✔✔An easement that is annexed to the ownership of one
parcel and allows the owner the use of the neighbor's land.
✔✔Area - ✔✔A level surface or piece of ground; the size of a surface; the amount of a
two-dimensional object.
✔✔Area Preference - ✔✔People's desire for one area over another, based on a number
of factors such as history, reputation, convenience, scenic beauty, and location.
✔✔Asbestos - ✔✔A mineral once used in insulation and other materials that can cause
respiratory diseases.
✔✔Assemblage - ✔✔The combining of two or more adjoining lots into one larger tract to
increase their total value.
✔✔Assessed Value - ✔✔The value set on property for taxation purposes.
✔✔Assessment - ✔✔The imposition of a tax, charge, or levy, usually according to
established rates.
✔✔Assignment - ✔✔The transfer in writing of interest in a bond, mortgage, lease, or
other instrument.
✔✔Assume - ✔✔A buyer is personally obligated for the payment of the entire debt of a
seller; that is, the buyer assumes the debt. The original seller is not liable for the debt if
the property is foreclosed on.
✔✔Assumption of Mortgage - ✔✔Acquiring title to property on which there is an existing
mortgage and agreeing to be personally liable for the terms and conditions of the
mortgage, including payments.
✔✔Attachment - ✔✔The act of taking a person's property into legal custody by writ or
other judicial order to hold it available for application to that person's debt to a creditor.
✔✔Attorney's Opinion of Value - ✔✔An abstract of title that an attorney has examined
and has certified to be, in his or her opinion, an accurate statement of the facts
concerning the property's ownership.
✔✔Hypothecation - ✔✔To pledge property as security for an obligation or loan without
giving up possession of it
✔✔Abstract of Title - ✔✔Abstract of Title
, ✔✔Acceleration Clause - ✔✔"The condensed history of a title to a particular parcel of
real estate, consisting of a summary of the original grant and all subsequent
conveyances and encumbrances affecting the property and a certification by the
abstractor that the history is complete and accurate."
✔✔Accession - ✔✔The clause in a mortgage or deed of trust that can enforced to make
the entire debt due immediately if the borrower defaults on an installment payment or
other covenant.
✔✔Accretion - ✔✔Acquiring title to additions or improvements to real property as a
result of the annexation of fixtures or the accretion of alluvial deposits along the banks
of streams.
✔✔Accrued Depreciation - ✔✔"The increase or addition of land by the deposit of sand
or soil washed up naturally from a river, lake, or sea."
✔✔Accrued Items - ✔✔"Loss in value resulting from the property's physical
deterioration, external depreciation, and functional obsolescence."
✔✔Acknowledgment - ✔✔"On a closing statement, items of expense that are incurred
but not yet payable, such as interest on a mortgage loan or taxes on real property."
✔✔Acre - ✔✔"A formal declaration made before a duly authorized officer, usually a
notary public, by a person who has signed a document."
✔✔Actual Eviction - ✔✔"A measure of land equal to 43,560 square feet, 4,840 Square
yards, 4,047 square meters, 160 square rods, or 0.4047 hectares."
✔✔Actual Notice - ✔✔The legal process that results in the tenant's being physically
removed from the leased premises.
✔✔Ad Valorem Tax - ✔✔Express information or fact; that which is known; direct
knowledge.
✔✔Addendum - ✔✔"A tax levied according to value, generally used to refer to real
estate tax. Also called the general tax."
✔✔Adjustable-Rate Mortgage (ARM) - ✔✔Any provision added to an existing contract
without altering the content of the original. Must be signed by all parties.
✔✔Administrator - ✔✔"A loan characterized by a fluctuating interest rate, usually one
tied to a bank or savings and loan association cost-of-funds index."
