KENTUCKY REAL ESTATE EVALUATION TEST
ANSWERS AND QUESTIONS SET A+
✔✔Contribution - ✔✔"A legally enforceable promise or set of promises that must be
performed and for which, if a breach of the promise occurs, the law provides a remedy.
A contract may be either unilateral, by which only one party is bound to act, or bilateral,
by which all parties to the instrument are legally bound to act as prescribed."
✔✔Controlled Business Arrangement (CBA) - ✔✔The appraisal principle that states that
the value of any component of a property is what it gives to the value of the whole or
what its absence detracts from that value.
✔✔Conventional Loan - ✔✔"An arrangement where a package of services (a real
estate firm, title insurance company, mortgage broker, and home inspection company)
is offered to consumers."
✔✔Conveyance - ✔✔A loan that requires no insurance or guarantee.
✔✔Cooperative - ✔✔A term used to refer to any document that transfers title to real
property. The term is also used in describing the act of transferring.
✔✔Co-Ownership - ✔✔"A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
building who are the beneficial owners of the trust or shareholders of the corporation,
each possessing a proprietary lease."
✔✔Corporation - ✔✔Title ownership held by two or more persons.
✔✔Corrective Maintenance - ✔✔"An entity 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 it is dissolved according to legal procedures."
✔✔Cost - ✔✔Corrects problems after they have occurred.
,✔✔Cost Approach - ✔✔The total amount of money incurred for products or services.
✔✔Cost Recovery - ✔✔"The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation."
✔✔Counteroffer - ✔✔An Internal Revenue Service term for depreciation.
✔✔ - ✔✔"A new offer made in response to an offer received. It has the effect of
rejecting the original offer, which cannot be accepted thereafter unless revived by the
offeror."
✔✔"A written agreement between two or more parties in which a party or parties pledge
to perform or not perform specified acts with regard to property; usually found in such
real estate documents as deeds - ✔✔mortgages, leases, and contracts for
deed.",Covenant
✔✔Private agreements that affect the land use. They may be enforced by an owner of
real estate and included in the seller's deed to the buyer. - ✔✔"Covenants, Conditions,
and Restrictions (CC&Rs)"
✔✔The covenant implied by law by which a landlord guarantees that a tenant may take
possession of leased premises and that the landlord will not interfere in the tenant's
possession or use of the property. - ✔✔Covenant of Quiet Enjoyment
✔✔"On a closing statement - ✔✔an amount entered in a persons favor - either an
amount the party has paid or an amount for which the party must be reimbursed.",Credit
✔✔"A life estate - ✔✔usually a fractional interest, given by some states to the surviving
husband in real estate owned by his deceased wife. Most states have abolished
curtesy.",Curtesy
✔✔The third party or nonrepresented consumer for whom some level of service is
provided. - ✔✔Customer
✔✔A horizontal plane from which heights and depths are measured. - ✔✔Datum
✔✔"On a closing statement - ✔✔an amount charged; that is, an amount that the debited
party must pay.",Debit
✔✔A person who has died. - ✔✔Decedent
, ✔✔"The voluntary transfer of private property by its owner to the public for some public
use - ✔✔such as for streets or schools.",Dedication
✔✔"A written instrument that - ✔✔when executed and delivered, conveys title to or an
interest in real estate.",Deed
✔✔A deed given by the mortgagor to the mortgagee when the mortgagor is in default
under the terms of the mortgage. This is a way for the mortgagor to avoid - ✔✔Deed in
Lieu of Foreclosure
✔✔"An instrument that grants a trustee under a land trust 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.",Deed in
Trust
✔✔A document that transfers the title back to the borrower when the note is repaid. -
✔✔Deed of Reconveyance
✔✔"Clauses in a deed limiting the future uses of the property. Deed restrictions may
impose a vast variety of limitations and conditions - for example - ✔✔they may limit the
density of buildings, dictate the types of structures that can be erected, or prevent
buildings from being use for specific purposes or even from being used at all.",Deed
Restrictions
✔✔"The nonperformance of a duty - ✔✔whether arising under a contract or otherwise;
failure to meet an obligation when due.",Default
✔✔"A clause used in leases and mortgages that cancels a specified right upon the
occurrence of a certain condition - ✔✔such as cancellation of a mortgage upon
repayment of a mortgage loan.",Defeasance Clause
✔✔An estate in which the holder has a fee simple title that may be divested upon the
occurrence or nonoccurrence of a specified event. There are two categories of
defeasible fee estates: fee simple on condition precedent and fee simple on condition
subsequent. - ✔✔Defeasible Fee Estate
✔✔A personal judgement levied against the borrower when a foreclosure sale does not
produce sufficient funds to pay the mortgage debt in full. - ✔✔Deficiency Judgement
✔✔Taxes that are unpaid and past due. - ✔✔Delinquent Taxes
✔✔When the title is delivered by the grantor and accepted by the grantee. - ✔✔Delivery
and Acceptance
ANSWERS AND QUESTIONS SET A+
✔✔Contribution - ✔✔"A legally enforceable promise or set of promises that must be
performed and for which, if a breach of the promise occurs, the law provides a remedy.
A contract may be either unilateral, by which only one party is bound to act, or bilateral,
by which all parties to the instrument are legally bound to act as prescribed."
✔✔Controlled Business Arrangement (CBA) - ✔✔The appraisal principle that states that
the value of any component of a property is what it gives to the value of the whole or
what its absence detracts from that value.
✔✔Conventional Loan - ✔✔"An arrangement where a package of services (a real
estate firm, title insurance company, mortgage broker, and home inspection company)
is offered to consumers."
✔✔Conveyance - ✔✔A loan that requires no insurance or guarantee.
✔✔Cooperative - ✔✔A term used to refer to any document that transfers title to real
property. The term is also used in describing the act of transferring.
✔✔Co-Ownership - ✔✔"A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
building who are the beneficial owners of the trust or shareholders of the corporation,
each possessing a proprietary lease."
✔✔Corporation - ✔✔Title ownership held by two or more persons.
✔✔Corrective Maintenance - ✔✔"An entity 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 it is dissolved according to legal procedures."
✔✔Cost - ✔✔Corrects problems after they have occurred.
,✔✔Cost Approach - ✔✔The total amount of money incurred for products or services.
✔✔Cost Recovery - ✔✔"The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation."
✔✔Counteroffer - ✔✔An Internal Revenue Service term for depreciation.
✔✔ - ✔✔"A new offer made in response to an offer received. It has the effect of
rejecting the original offer, which cannot be accepted thereafter unless revived by the
offeror."
✔✔"A written agreement between two or more parties in which a party or parties pledge
to perform or not perform specified acts with regard to property; usually found in such
real estate documents as deeds - ✔✔mortgages, leases, and contracts for
deed.",Covenant
✔✔Private agreements that affect the land use. They may be enforced by an owner of
real estate and included in the seller's deed to the buyer. - ✔✔"Covenants, Conditions,
and Restrictions (CC&Rs)"
✔✔The covenant implied by law by which a landlord guarantees that a tenant may take
possession of leased premises and that the landlord will not interfere in the tenant's
possession or use of the property. - ✔✔Covenant of Quiet Enjoyment
✔✔"On a closing statement - ✔✔an amount entered in a persons favor - either an
amount the party has paid or an amount for which the party must be reimbursed.",Credit
✔✔"A life estate - ✔✔usually a fractional interest, given by some states to the surviving
husband in real estate owned by his deceased wife. Most states have abolished
curtesy.",Curtesy
✔✔The third party or nonrepresented consumer for whom some level of service is
provided. - ✔✔Customer
✔✔A horizontal plane from which heights and depths are measured. - ✔✔Datum
✔✔"On a closing statement - ✔✔an amount charged; that is, an amount that the debited
party must pay.",Debit
✔✔A person who has died. - ✔✔Decedent
, ✔✔"The voluntary transfer of private property by its owner to the public for some public
use - ✔✔such as for streets or schools.",Dedication
✔✔"A written instrument that - ✔✔when executed and delivered, conveys title to or an
interest in real estate.",Deed
✔✔A deed given by the mortgagor to the mortgagee when the mortgagor is in default
under the terms of the mortgage. This is a way for the mortgagor to avoid - ✔✔Deed in
Lieu of Foreclosure
✔✔"An instrument that grants a trustee under a land trust 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.",Deed in
Trust
✔✔A document that transfers the title back to the borrower when the note is repaid. -
✔✔Deed of Reconveyance
✔✔"Clauses in a deed limiting the future uses of the property. Deed restrictions may
impose a vast variety of limitations and conditions - for example - ✔✔they may limit the
density of buildings, dictate the types of structures that can be erected, or prevent
buildings from being use for specific purposes or even from being used at all.",Deed
Restrictions
✔✔"The nonperformance of a duty - ✔✔whether arising under a contract or otherwise;
failure to meet an obligation when due.",Default
✔✔"A clause used in leases and mortgages that cancels a specified right upon the
occurrence of a certain condition - ✔✔such as cancellation of a mortgage upon
repayment of a mortgage loan.",Defeasance Clause
✔✔An estate in which the holder has a fee simple title that may be divested upon the
occurrence or nonoccurrence of a specified event. There are two categories of
defeasible fee estates: fee simple on condition precedent and fee simple on condition
subsequent. - ✔✔Defeasible Fee Estate
✔✔A personal judgement levied against the borrower when a foreclosure sale does not
produce sufficient funds to pay the mortgage debt in full. - ✔✔Deficiency Judgement
✔✔Taxes that are unpaid and past due. - ✔✔Delinquent Taxes
✔✔When the title is delivered by the grantor and accepted by the grantee. - ✔✔Delivery
and Acceptance
