Utah Stringham Real Estate Exam
ADJUSTABLE RATE MORTGAGE (ARM) - A loan where the interest rate is periodically adjusted
based on a specific economic indicator (or financial index).
ACCELERATION CLAUSE - Allows a loan to become due and payable immediately if certain
requirements are not met, such as making payments, maintaining the physical condition of the property
or paying property taxes and hazard insurance.
ABROGATION - To nullify or replace. Signing of the closing documents nullifies the Real Estate
Purchase Contract except for warranties which extend beyond the closing date.
ACTUAL DELIVERY - Transferring a deed from the grantor to the grantee by handing the deed to
the grantee or sending it by certified mail.
3/1 ARM - A loan with three years of the same rate then rate adjustments every year thereafter.
12 HOUR NEW AGENT COURSE - The continuing education course required by the Utah Division of
Real Estate for a new licensee's initial renewal period.
72-HOUR RIGHT OF RESCESSION - All borrowers must receive this notice if the loan is a refinance
loan.
ABANDONMENT - When a tenant leaves a property before the expiration of the lease agreement.
ABOVE PAR - An interest rate quoted that would give a credit to the borrower.
ACCESSION - The process of adding to real property.
,ACKNOWLEDGE - The legal process of having the signature on a contract or other legal document
verified by a notary public.
ACRE - 43,560 square feet.
ACRE FEET - Consists of 43,560 cubic feet of water, or an acre of land covered by 12 inches of
water.
ACTUAL EVICTION - The legal process by which a lessor evicts the lessee and regains possession of
the property.
ACTUAL MORTGAGE AMOUNT - The loan amount including upfront funding fee.
AD VALOREM TAX - A tax levied according to the value of the property.
ADDENDUM - Additions or changes incorporated into the REPC by reference.
ADDENDUM TO LEASE AGREEMENT WITH OPTION FOR PURCHASE - This form is used for any
additional terms the buyer or seller wish to include in the agreement.
ADJUSTED COST BASIS - Cost basis plus improvements, minus depreciation claimed during the
years the property was owned.
ADJUSTMENT PERIOD - Lengthen of time between interest rate adjustments on an adjustable rate
loan.
ADMINISTRATOR - A person appointed by the court to carry out the terms of a will.
,ADVERSE POSSESSION - The process whereby a non-owner can gain ownership of property by
occupying it in hostile, continuous, open, and notorious possession, and in Utah, paying the property
taxes for the statutory period of time (7 years in Utah).
AGENCY - A relationship between two parties wherein the principal hires another person to
represent him or her.
AGENCY BY ESTOPPEL - The principal seeks to deny an agency relationship, but the court stops
him from denying the agency, and thereby confirms it.
AGENCY BY RATIFICATION - The agency is created by implication, or actions, and the principal
approves it by agreeing after the agency service has been performed to compensate the agent.
AGENCY BY STATUTE - The law has given rise to the agency, such as a Sheriff appointed by the
court to be the agent of the owner in a foreclosure sale.
AGENT - The person hired by a principal to act for and in behalf of, or to represent the principal,
always acting in the principal's best interest.
AGGREGATE ESCROW ANALYSIS - A formula for determining that no more than the RESPA allowed
amount is being held in the borrower's reserve account.
AIR SPACE - In condominium ownership, what is actually owned by the unit owner (in addition to
tenancy in common for common areas).
ALIENATION OF TITLE - A change of ownership. May be voluntary (sold the property) or
involuntary (foreclosure sale).
AFFILIATED BUSINESS ARRANGEMENT (AfBA) - A financial interest in a business that could provide
services to a borrower in a loan transaction. The lender is required to disclose such affiliations to the
borrower and may not require that the borrower use the affiliate. Disclosure is also required when it is
the policy of the lender to share private information of borrowers with its affiliates. The borrower may
, refuse permission to share information by returning the notice indicating that they Opt Out of the
companies sharing policy.
ALL-INCLUSIVE TRUST DEED (AITD) - A State-approved document used for security, usually in seller
financing, where the financing is structured as a wraparound.
ALLODIAL - A socio-economic system that allows for private ownership of real property.
ALTA POLICY - The lender's title insurance policy which offers coverage in the amount of the loan
which includes a site visit to discover unrecorded encumbrances.
AMENITY - A "nice, but not necessary" feature which provides personal pleasure to the owner of
real property. It can be tangible or intangible
AMERICANS WITH DISABILITIES ACT (ADA) - An act designed to eliminate discrimination against
handicapped persons in employment, government services, and all facilities and services offered to the
public.
AMORTIZED LOAN - A loan which has regular monthly payments of principal and interest that if
paid would reduce the balance of the loan with each payment until the balance is zero at the end of the
amortization period.
AMORTIZATION SCHEDULE - A schedule of payments toward principal and interest and loan
balance after each payment through the life of a loan.
ANNUAL PERCENTAGE RATE (APR) - The interest rate plus any other charges for the loan, including
such things as discount points and origination fees; computed as a yearly percentage rate. It is used for
comparing loans.
ANNUAL PERCENTAGE YIELD (APY) - The effective interest rate based on the frequency of interest
payments paid on deposits.
ADJUSTABLE RATE MORTGAGE (ARM) - A loan where the interest rate is periodically adjusted
based on a specific economic indicator (or financial index).
ACCELERATION CLAUSE - Allows a loan to become due and payable immediately if certain
requirements are not met, such as making payments, maintaining the physical condition of the property
or paying property taxes and hazard insurance.
ABROGATION - To nullify or replace. Signing of the closing documents nullifies the Real Estate
Purchase Contract except for warranties which extend beyond the closing date.
ACTUAL DELIVERY - Transferring a deed from the grantor to the grantee by handing the deed to
the grantee or sending it by certified mail.
3/1 ARM - A loan with three years of the same rate then rate adjustments every year thereafter.
12 HOUR NEW AGENT COURSE - The continuing education course required by the Utah Division of
Real Estate for a new licensee's initial renewal period.
72-HOUR RIGHT OF RESCESSION - All borrowers must receive this notice if the loan is a refinance
loan.
ABANDONMENT - When a tenant leaves a property before the expiration of the lease agreement.
ABOVE PAR - An interest rate quoted that would give a credit to the borrower.
ACCESSION - The process of adding to real property.
,ACKNOWLEDGE - The legal process of having the signature on a contract or other legal document
verified by a notary public.
ACRE - 43,560 square feet.
ACRE FEET - Consists of 43,560 cubic feet of water, or an acre of land covered by 12 inches of
water.
ACTUAL EVICTION - The legal process by which a lessor evicts the lessee and regains possession of
the property.
ACTUAL MORTGAGE AMOUNT - The loan amount including upfront funding fee.
AD VALOREM TAX - A tax levied according to the value of the property.
ADDENDUM - Additions or changes incorporated into the REPC by reference.
ADDENDUM TO LEASE AGREEMENT WITH OPTION FOR PURCHASE - This form is used for any
additional terms the buyer or seller wish to include in the agreement.
ADJUSTED COST BASIS - Cost basis plus improvements, minus depreciation claimed during the
years the property was owned.
ADJUSTMENT PERIOD - Lengthen of time between interest rate adjustments on an adjustable rate
loan.
ADMINISTRATOR - A person appointed by the court to carry out the terms of a will.
,ADVERSE POSSESSION - The process whereby a non-owner can gain ownership of property by
occupying it in hostile, continuous, open, and notorious possession, and in Utah, paying the property
taxes for the statutory period of time (7 years in Utah).
AGENCY - A relationship between two parties wherein the principal hires another person to
represent him or her.
AGENCY BY ESTOPPEL - The principal seeks to deny an agency relationship, but the court stops
him from denying the agency, and thereby confirms it.
AGENCY BY RATIFICATION - The agency is created by implication, or actions, and the principal
approves it by agreeing after the agency service has been performed to compensate the agent.
AGENCY BY STATUTE - The law has given rise to the agency, such as a Sheriff appointed by the
court to be the agent of the owner in a foreclosure sale.
AGENT - The person hired by a principal to act for and in behalf of, or to represent the principal,
always acting in the principal's best interest.
AGGREGATE ESCROW ANALYSIS - A formula for determining that no more than the RESPA allowed
amount is being held in the borrower's reserve account.
AIR SPACE - In condominium ownership, what is actually owned by the unit owner (in addition to
tenancy in common for common areas).
ALIENATION OF TITLE - A change of ownership. May be voluntary (sold the property) or
involuntary (foreclosure sale).
AFFILIATED BUSINESS ARRANGEMENT (AfBA) - A financial interest in a business that could provide
services to a borrower in a loan transaction. The lender is required to disclose such affiliations to the
borrower and may not require that the borrower use the affiliate. Disclosure is also required when it is
the policy of the lender to share private information of borrowers with its affiliates. The borrower may
, refuse permission to share information by returning the notice indicating that they Opt Out of the
companies sharing policy.
ALL-INCLUSIVE TRUST DEED (AITD) - A State-approved document used for security, usually in seller
financing, where the financing is structured as a wraparound.
ALLODIAL - A socio-economic system that allows for private ownership of real property.
ALTA POLICY - The lender's title insurance policy which offers coverage in the amount of the loan
which includes a site visit to discover unrecorded encumbrances.
AMENITY - A "nice, but not necessary" feature which provides personal pleasure to the owner of
real property. It can be tangible or intangible
AMERICANS WITH DISABILITIES ACT (ADA) - An act designed to eliminate discrimination against
handicapped persons in employment, government services, and all facilities and services offered to the
public.
AMORTIZED LOAN - A loan which has regular monthly payments of principal and interest that if
paid would reduce the balance of the loan with each payment until the balance is zero at the end of the
amortization period.
AMORTIZATION SCHEDULE - A schedule of payments toward principal and interest and loan
balance after each payment through the life of a loan.
ANNUAL PERCENTAGE RATE (APR) - The interest rate plus any other charges for the loan, including
such things as discount points and origination fees; computed as a yearly percentage rate. It is used for
comparing loans.
ANNUAL PERCENTAGE YIELD (APY) - The effective interest rate based on the frequency of interest
payments paid on deposits.
