VERIFIED ANSWERS
Abandonment - CORRECT ANSWER✅✅✅The voluntary and permanent cessation of use
or enjoyment with no intention to resume or reclaim one's possession or interest. May pertain to
an easement or a property.
Abrogation - CORRECT ANSWER✅✅✅Tenants cannot sign away their rights in advance
of signing the lease.
Abstract of Title - CORRECT ANSWER✅✅✅A condensed version of the history of title to
a particular parcel of real estate as recorded in the county clerk's records; consists of a summary
of the original grant and all subsequent conveyances and encumbrances affecting the property.
Abutting - CORRECT ANSWER✅✅✅The joining, reaching, or touching of adjoining land.
Abutting parcels of land have a common boundary.
Accelerated Depreciation - CORRECT ANSWER✅✅✅A method of calculating for tax
purposes the depreciation of income property at a faster rat than would be achieved using the
straight-line method. Note** any depreciation taken in excess of that which would be claimed
using the straight-line rate is subject to recapture as ordinary income to the extent of gain
resulting from the sale.
Acceleration Clause - CORRECT ANSWER✅✅✅A provision in a written mortgage, note,
bond, or conditional sales contract that, in the event of a default, the whole amount of principal
and interest may be declared to be due an payable at once.
Accretion - CORRECT ANSWER✅✅✅An increase or addition to land by the deposit of
sand or soil washed up naturally from a river lake or sea.
Accrued Depreciation - CORRECT ANSWER✅✅✅The actual depreciation that has
occurred to a property at any given date; the difference between the cost of replacement new (as
of the date of appraisal) and the present appraised value.
,Acknowledgment - CORRECT ANSWER✅✅✅A declaration made by a person to a notary
public, or other public official authorized to take acknowledgments that an instrument was
executed by that person as a free and voluntary act.
Actual Eviction - CORRECT ANSWER✅✅✅The result of legal action originated by a
lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a
court order.
Actual Notice - CORRECT ANSWER✅✅✅Express information or fact; that which is know;
actual knowledge.
Adjustable-rate Mortgage - CORRECT ANSWER✅✅✅A mortgage in which the interest
rate changes at predetermined intervals. The mortgage has caps, or a ceiling, that limits the
amount it can change at the predetermined intervals.
Administrator - CORRECT ANSWER✅✅✅The party appointed by the county court to
settle the estate of a deceased person who died without leaving a will.
Ad Valorem Tax - CORRECT ANSWER✅✅✅A tax levied according to value; generally
used to refer to real estate tax. Also called the general tax.
Adverse possession - CORRECT ANSWER✅✅✅The right of an occupant of land to
acquire title against the real owner, where possession has been actual, continuous, hostile,
visible, and distinct for the statutory period.
Affidavit - CORRECT ANSWER✅✅✅A written statement signed and sworn to before a
person authorized to administer an oath.
Agent - CORRECT ANSWER✅✅✅One who represents or has the power to act for another
person (called the principal). The authorization may be express or implied. A fiduciary
relationship is created under the law of agency when a property owner, as the principal, executes
a listing agreement or management contract authorizing a licensed real estate broker to be the
owner's agent.
, Agreement of sale - CORRECT ANSWER✅✅✅A written agreement whereby the purchaser
agrees to buy certain real estate and the seller agrees to sell, upon terms and conditions set forth
in the agreement.
Air Lot - CORRECT ANSWER✅✅✅A designated airspace over a piece of land. Air lots,
like surgace property, may be transferred.
Air Rights - CORRECT ANSWER✅✅✅The right to use the open space above a property,
generally allowing the surface to be used for another purpose.
Alienation - CORRECT ANSWER✅✅✅The act of transferring property to another.
Alienation may be voluntary, such as by gift or sale; or involuntary, such as through eminent
domain or adverse possession.
Alienation Clause - CORRECT ANSWER✅✅✅The clause in a mortgage or deed of trst that
states that the balance of the secured debt becomes immediately due and payable at the
mortgagee's option if the property is sold by the mortgagor. In effect, this clause prevents the
mortgagor from assigning the debt without the mortgagee's approval.
Alluvion - CORRECT ANSWER✅✅✅New deposits of soil as the result of accretion.
Amenitites - CORRECT ANSWER✅✅✅The tangible and intangible features that increase
the value or desirability of real estate.
Americans with Disabilities Act (ADA) - CORRECT ANSWER✅✅✅A federal law that
became effective in 1992. It is designed to eliminate the discrimination against individuals with
disabilities by mandating equal access to jobs, public accommodations, public transportation,
telecommunications and government services.
Amortization - CORRECT ANSWER✅✅✅The liquidation of a financial burden by
installment payments.