WRA GLOSSARY UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE RESOURCE
●● 203(b)
Answer: FHA financing program for anyone purchasing a primary 1-4
family, owner-occupied residence
●● 1031 Exchange
Answer: Way to defer capital gains tax; property owner must re-invest
profits from the sale of an investment property into another investment
property within 6 months
●● 1099
Answer: Independent contractor status according to the IRS tax
classifications
●● ABAs
Answer: Affiliated Business Arrangements; service providers, such as
mortgage brokers and real estate attorneys, package their services
together as an offering to their clients
●● Abandonment
,Answer: When the tenant leaves the property before the lease expires,
without consent
●● Abatement
Answer: A reduction of municipal property taxes; must file taxes before
requesting
●● Abstract of title
Answer: A history of property ownership (title), summarizing all
instruments in chain of ownership; provided by lender's attorney and
paid by borrower
●● Abutting
Answer: Neighboring land with a common boundary
●● Acceleration Clause
Answer: A clause in the note protecting the lender by permitting them to
demand the loan balance be paid immediately in the event of a default
●● Acceptance
Answer: Indication by the offeree (most often by signature) that they are
willing to be bound by terms of offer from offeror
●● Accretion
,Answer: Increase of property by gradual natural additions (usually wind
or water)
●● Accretion line
Answer: The water's edge; often the mean high tide line
●● Accrued depreciation
Answer: Difference between cost of replacing property new as of date of
appraisal and present value; already occurs when property is purchased
●● Acknowledgement
Answer: An act of executing a legal instrument such as a deed, mortgage
or discharge before a lawyer or other officer of state such as a notary
public; this act declares signing to be free and voluntary; this is
necessary before recording at registry
●● Acre
Answer: 43,560 square feet
●● Act of Waste
Answer: Unreasonable or improper use of land by an individual in
rightful possession of the land
●● Action of law
, Answer: A way in which a lease can be terminated; includes eminent
domain taking, tax sale, etc.
●● Active income
Answer: Income generated from active activities, such as a salary;
cannot deduct depreciation from this income unless you are a real estate
professional
●● Actual Eviction
Answer: Legal action originated by lessor whereby lessee in default is
physically ousted pursuant to a court order (unlawful detainer).
●● Actual Notice
Answer: Specific notice of something (e.g. being served a lawsuit)
●● Adjacent
Answer: Nearby or abutting
●● Adjoining
Answer: Touching and contiguous
●● Adjustments
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE RESOURCE
●● 203(b)
Answer: FHA financing program for anyone purchasing a primary 1-4
family, owner-occupied residence
●● 1031 Exchange
Answer: Way to defer capital gains tax; property owner must re-invest
profits from the sale of an investment property into another investment
property within 6 months
●● 1099
Answer: Independent contractor status according to the IRS tax
classifications
●● ABAs
Answer: Affiliated Business Arrangements; service providers, such as
mortgage brokers and real estate attorneys, package their services
together as an offering to their clients
●● Abandonment
,Answer: When the tenant leaves the property before the lease expires,
without consent
●● Abatement
Answer: A reduction of municipal property taxes; must file taxes before
requesting
●● Abstract of title
Answer: A history of property ownership (title), summarizing all
instruments in chain of ownership; provided by lender's attorney and
paid by borrower
●● Abutting
Answer: Neighboring land with a common boundary
●● Acceleration Clause
Answer: A clause in the note protecting the lender by permitting them to
demand the loan balance be paid immediately in the event of a default
●● Acceptance
Answer: Indication by the offeree (most often by signature) that they are
willing to be bound by terms of offer from offeror
●● Accretion
,Answer: Increase of property by gradual natural additions (usually wind
or water)
●● Accretion line
Answer: The water's edge; often the mean high tide line
●● Accrued depreciation
Answer: Difference between cost of replacing property new as of date of
appraisal and present value; already occurs when property is purchased
●● Acknowledgement
Answer: An act of executing a legal instrument such as a deed, mortgage
or discharge before a lawyer or other officer of state such as a notary
public; this act declares signing to be free and voluntary; this is
necessary before recording at registry
●● Acre
Answer: 43,560 square feet
●● Act of Waste
Answer: Unreasonable or improper use of land by an individual in
rightful possession of the land
●● Action of law
, Answer: A way in which a lease can be terminated; includes eminent
domain taking, tax sale, etc.
●● Active income
Answer: Income generated from active activities, such as a salary;
cannot deduct depreciation from this income unless you are a real estate
professional
●● Actual Eviction
Answer: Legal action originated by lessor whereby lessee in default is
physically ousted pursuant to a court order (unlawful detainer).
●● Actual Notice
Answer: Specific notice of something (e.g. being served a lawsuit)
●● Adjacent
Answer: Nearby or abutting
●● Adjoining
Answer: Touching and contiguous
●● Adjustments
