Real Estate - The CE Shop || 100% verified answers.
1031 tax-deferred exchange correct answers "Section 1031 of the Internal Revenue Code allows
the owner of real property to sell that property and then reinvest the proceeds in a "like-kind"
property and defer paying any capital gains taxes.
Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital
gains taxes when selling a property provided the money is rolled into another """"like""""
purchase
"
abutting correct answers "Land sharing a common border
Ex. Many neighbors find that fences make abutting properties more tolerable.
"
acceleration clause correct answers "Allows a lender to demand immediate and full payment of
all debt owed if a buyer defaults
Ex. When Wendy stopped making home loan payments, her lender told her she must pay off her
entire balance or risk foreclosure.
"
accession correct answers "The addition of value to property through labor or the addition of new
materials, including an increase in land through natural processes
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of
property to his land through accession.
"
accessory use correct answers "An incidental or subordinate use to the primary use of the
property
Ex. Andy's military bunker in his back yard constituted an accessory use of the property.
,"
accounting correct answers "One of the fiduciary duties, accounting means an agent is
accountable for any funds or properties entrusted to the agent. This is a duty that survives
termination of an agency agreement.
Ex. Cameron accepted an earnest money deposit from his buyer. His duty of accounting means
that he must safeguard the funds and handle them according to the agreement with his client and
the policies of his firm.
"
accretion correct answers "Land build up over water by sand, silt, or gravel
Ex. Jillian's property grew through accretion when a landslide wiped out an adjacent creek.
"
accrued items correct answers "Expenses that are accruing but are not yet payable (e.g., property
taxes)
Ex. At closing, accrued items must be accounted for on the settlement statement. If the seller has
accrued expenses not yet payable, the amount accrued will be a seller debit and buyer credit.
"
acknowledgment correct answers "A requirement for deed transfer; a public official must
acknowledge the grantor's signature
Ex. Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his
signature.
"
acre correct answers "43,560 square feet
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.
"
active fraud correct answers "Intentional misstatement of a material fact
,Ex. ""Sure, the foundation is perfectly safe!"" Lisa said, even though she knew full well that
there was a crack the size if Toledo in it.
"
act of waste correct answers "Abuse of a property by a person who holds possession through a
life estate
Ex. When Minerva inherited the historic mansion and turned it into an illegal video gaming
parlor, this was an act of waste that caused her to lose title to the property.
"
actual notice correct answers "Express notice given directly to a person
Ex. Karen told her neighbors she would be moving; this was actual notice.
"
addendum correct answers "An addition to a real estate contract that's added before contract
acceptance
Ex. Steve decided to ask for the washer and dryer after all, so he asked his broker to write up an
addendum to the sales contract.
"
adjustable rate mortgage (ARM) correct answers "A mortgage with a rate that adjusts based on
changes in a market index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for the first five years, and after 5
years, it could change annually depending changes to the market index.
"
adjusted basis correct answers "The final basis for taxing purposes computed by taking
acquisition costs plus capital improvements and subtracting depreciation taken
Ex. When Mark computed the adjusted basis in his property, he had to subtract $10,000 in
depreciation he had taken over the years.
, "
adjustment correct answers "The dollar value or percentage added to or subtracted from the sales
price of a comparable to arrive at an indicated value for the subject
Ex. Whether the adjustment is made for a "good" or a "bad" feature, it is made to the
comparable, not to the subject.
"
adjustment date correct answers "The date on which the interest rate changes on an adjustable
rate mortgage.
Ex. Karey made sure to refinance before her adjustment rate. Rates had dropped and she could
get a better rate than the one she'd face once her ARM adjusted.
"
adjustment (loan) correct answers "A debit or credit at closing to coincide with appropriate
closing costs
Ex. When the document preparation fees were more than anticipated, both sides received an
adjustment at closing.
"
Administrative Procedure Act correct answers "Helps to ensure that no governmental entity acts
without an opportunity for public input by requiring public disclosure and discourse before
rulemaking
Ex. The Administrative Procedure Act was partially enacted in response to FDR's New Deal, in
an effort to prevent the federal government from having too much power.
"
adverse material fact correct answers "A fact that might cause the buyer to change his mind
about purchasing the property
Ex. When Chet learned that a railway was being built behind the property, he withdrew his offerr.
That was an adverse material fact he couldn't live with.
1031 tax-deferred exchange correct answers "Section 1031 of the Internal Revenue Code allows
the owner of real property to sell that property and then reinvest the proceeds in a "like-kind"
property and defer paying any capital gains taxes.
Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital
gains taxes when selling a property provided the money is rolled into another """"like""""
purchase
"
abutting correct answers "Land sharing a common border
Ex. Many neighbors find that fences make abutting properties more tolerable.
"
acceleration clause correct answers "Allows a lender to demand immediate and full payment of
all debt owed if a buyer defaults
Ex. When Wendy stopped making home loan payments, her lender told her she must pay off her
entire balance or risk foreclosure.
"
accession correct answers "The addition of value to property through labor or the addition of new
materials, including an increase in land through natural processes
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of
property to his land through accession.
"
accessory use correct answers "An incidental or subordinate use to the primary use of the
property
Ex. Andy's military bunker in his back yard constituted an accessory use of the property.
,"
accounting correct answers "One of the fiduciary duties, accounting means an agent is
accountable for any funds or properties entrusted to the agent. This is a duty that survives
termination of an agency agreement.
Ex. Cameron accepted an earnest money deposit from his buyer. His duty of accounting means
that he must safeguard the funds and handle them according to the agreement with his client and
the policies of his firm.
"
accretion correct answers "Land build up over water by sand, silt, or gravel
Ex. Jillian's property grew through accretion when a landslide wiped out an adjacent creek.
"
accrued items correct answers "Expenses that are accruing but are not yet payable (e.g., property
taxes)
Ex. At closing, accrued items must be accounted for on the settlement statement. If the seller has
accrued expenses not yet payable, the amount accrued will be a seller debit and buyer credit.
"
acknowledgment correct answers "A requirement for deed transfer; a public official must
acknowledge the grantor's signature
Ex. Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his
signature.
"
acre correct answers "43,560 square feet
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.
"
active fraud correct answers "Intentional misstatement of a material fact
,Ex. ""Sure, the foundation is perfectly safe!"" Lisa said, even though she knew full well that
there was a crack the size if Toledo in it.
"
act of waste correct answers "Abuse of a property by a person who holds possession through a
life estate
Ex. When Minerva inherited the historic mansion and turned it into an illegal video gaming
parlor, this was an act of waste that caused her to lose title to the property.
"
actual notice correct answers "Express notice given directly to a person
Ex. Karen told her neighbors she would be moving; this was actual notice.
"
addendum correct answers "An addition to a real estate contract that's added before contract
acceptance
Ex. Steve decided to ask for the washer and dryer after all, so he asked his broker to write up an
addendum to the sales contract.
"
adjustable rate mortgage (ARM) correct answers "A mortgage with a rate that adjusts based on
changes in a market index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for the first five years, and after 5
years, it could change annually depending changes to the market index.
"
adjusted basis correct answers "The final basis for taxing purposes computed by taking
acquisition costs plus capital improvements and subtracting depreciation taken
Ex. When Mark computed the adjusted basis in his property, he had to subtract $10,000 in
depreciation he had taken over the years.
, "
adjustment correct answers "The dollar value or percentage added to or subtracted from the sales
price of a comparable to arrive at an indicated value for the subject
Ex. Whether the adjustment is made for a "good" or a "bad" feature, it is made to the
comparable, not to the subject.
"
adjustment date correct answers "The date on which the interest rate changes on an adjustable
rate mortgage.
Ex. Karey made sure to refinance before her adjustment rate. Rates had dropped and she could
get a better rate than the one she'd face once her ARM adjusted.
"
adjustment (loan) correct answers "A debit or credit at closing to coincide with appropriate
closing costs
Ex. When the document preparation fees were more than anticipated, both sides received an
adjustment at closing.
"
Administrative Procedure Act correct answers "Helps to ensure that no governmental entity acts
without an opportunity for public input by requiring public disclosure and discourse before
rulemaking
Ex. The Administrative Procedure Act was partially enacted in response to FDR's New Deal, in
an effort to prevent the federal government from having too much power.
"
adverse material fact correct answers "A fact that might cause the buyer to change his mind
about purchasing the property
Ex. When Chet learned that a railway was being built behind the property, he withdrew his offerr.
That was an adverse material fact he couldn't live with.
