KENTUCKY REAL ESTATE ACTUAL FINALS ANSWERS
AND QUESTIONS SET A+
✔✔Alienation - ✔✔"The right to use the open space above a property, usually allowing
the surface to be used for another purpose."
✔✔Alienation Clause - ✔✔"The act of transferring property to another. Alienation may
be voluntary, such as by gift or sale, or involuntary, as through eminent domain or
adverse possession."
✔✔Allodial System - ✔✔"The clause in a mortgage or deed of trust that states that the
balance of the secured debt becomes immediately due and payable at the lender's
option if the property is sold by the borrower. In effect, this clause prevents the borrower
from assigning the debt without the lender's approval."
✔✔Amendment - ✔✔A system of land ownership in which land is held free and clear of
any rent or service due to the government; commonly contrasted to the feudal system.
Land is held under the allodial system in the United States.
✔✔American Land Title Association (Alta) Policy - ✔✔A change to the existing content
of a contract. Must be initialed by all parties.
✔✔Americans with Disabilities Act (ADA) - ✔✔A title insurance policy that protects the
interest in a collateral property of a mortgage lender who originates a new real estate
loan.
✔✔Amortized Loan - ✔✔Act addresses rights of individuals with disabilities in
employment and public accommodations.
✔✔Annexation - ✔✔A loan in which the principal as well as the interest is payable in
monthly or other periodic installments over the term of the loan.
✔✔Annual Percentage Rate (APR) - ✔✔Process of converting personal property into
real property.
,✔✔Anticipation - ✔✔The relationship of the total finance charges associated with a
loan. This must be disclosed to borrowers by lenders under the Truth in Lending Act.
✔✔Antitrust Laws - ✔✔The appraisal principle that holds that value can increase or
decrease based on the expectation of some future benefit or detriment produced by the
property.
✔✔Appraisal - ✔✔Laws designed to preserve the free enterprise of the open
marketplace by making illegal certain private conspiracies and combinations formed to
minimize competition. Most violations of antitrust laws in the real estate business
involve either price-fixing (brokers conspiring to set fixed compensation rates) or
allocation of customers or markets (Brokers agreeing to limit their areas of trade or
dealing to certain areas or properties).
✔✔Appraiser - ✔✔"An estimate of the quantity, quality, or value of something. The
process through which conclusions of property value are obtained; also refers to the
report that sets forth the process of estimation and conclusion of value."
✔✔Appreciation - ✔✔An independent person trained to provide an unbiased estimate of
value.
✔✔Appurtenance - ✔✔"An increase in the worth or value of a property due to economic
or related causes, which may prove to be either temporary or permanent; opposite of
depreciation."
✔✔Appurtenant Easement - ✔✔"A right, privilege, or improvement belonging to, and
passing with, the land; ""runs with the land."""
✔✔Area - ✔✔An easement that is annexed to the ownership of one parcel and allows
the owner the use of the neighbor's land.
✔✔Area Preference - ✔✔A level surface or piece of ground; the size of a surface; the
amount of a two-dimensional object.
✔✔Asbestos - ✔✔"People's desire for one area over another, based on a number of
factors such as history, reputation, convenience, scenic beauty, and location."
✔✔Assemblage - ✔✔A mineral once used in insulation and other materials that can
cause respiratory diseases.
✔✔Assessed Value - ✔✔The combining of two or more adjoining lots into one larger
tract to increase their total value.
, ✔✔Assessment - ✔✔The value set on property for taxation purposes.
✔✔Assignment - ✔✔"The imposition of a tax, charge, or levy, usually according to
established rates."
✔✔Assume - ✔✔"The transfer in writing of interest in a bond, mortgage, lease, or other
instrument."
✔✔Assumption of Mortgage - ✔✔"A buyer is personally obligated for the payment of the
entire debt of a seller; that is, the buyer assumes the debt. The original seller is not
liable for the debt if the property is foreclosed on."
✔✔Attachment - ✔✔"Acquiring title to property on which there is an existing mortgage
and agreeing to be personally liable for the terms and conditions of the mortgage,
including payments."
✔✔Attorney's Opinion of Value - ✔✔The act of taking a person's property into legal
custody by writ or other judicial order to hold it available for application to that person's
debt to a creditor.
✔✔Automated Underwriting - ✔✔"An abstract of title that an attorney has examined and
has certified to be, in his or her opinion, an accurate statement of the facts concerning
the property's ownership."
✔✔Automatic Extension - ✔✔Computer systems that permit lenders to expedite the
loan approval process and reduce lending costs.
✔✔Avulsion - ✔✔"A listing agreement clause stating that the agreement will continue
automatically for a certain period of time after its expiration date. In many states, use of
this clause is discouraged or prohibited"
✔✔Balance - ✔✔"The sudden tearing away of land, as by earthquake, flood, volcanic
action, or the sudden change in the course of a stream."
✔✔Balloon Payment - ✔✔The appraisal principle that states that the greatest value in a
property will occur when the type and size of the improvements are proportional to each
other as well as the land.
✔✔Bargain and Sale Deed - ✔✔A final payment of a mortgage loan that is considerably
larger than the required periodic payments because the loan amount was not fully
amortized.
AND QUESTIONS SET A+
✔✔Alienation - ✔✔"The right to use the open space above a property, usually allowing
the surface to be used for another purpose."
✔✔Alienation Clause - ✔✔"The act of transferring property to another. Alienation may
be voluntary, such as by gift or sale, or involuntary, as through eminent domain or
adverse possession."
✔✔Allodial System - ✔✔"The clause in a mortgage or deed of trust that states that the
balance of the secured debt becomes immediately due and payable at the lender's
option if the property is sold by the borrower. In effect, this clause prevents the borrower
from assigning the debt without the lender's approval."
✔✔Amendment - ✔✔A system of land ownership in which land is held free and clear of
any rent or service due to the government; commonly contrasted to the feudal system.
Land is held under the allodial system in the United States.
✔✔American Land Title Association (Alta) Policy - ✔✔A change to the existing content
of a contract. Must be initialed by all parties.
✔✔Americans with Disabilities Act (ADA) - ✔✔A title insurance policy that protects the
interest in a collateral property of a mortgage lender who originates a new real estate
loan.
✔✔Amortized Loan - ✔✔Act addresses rights of individuals with disabilities in
employment and public accommodations.
✔✔Annexation - ✔✔A loan in which the principal as well as the interest is payable in
monthly or other periodic installments over the term of the loan.
✔✔Annual Percentage Rate (APR) - ✔✔Process of converting personal property into
real property.
,✔✔Anticipation - ✔✔The relationship of the total finance charges associated with a
loan. This must be disclosed to borrowers by lenders under the Truth in Lending Act.
✔✔Antitrust Laws - ✔✔The appraisal principle that holds that value can increase or
decrease based on the expectation of some future benefit or detriment produced by the
property.
✔✔Appraisal - ✔✔Laws designed to preserve the free enterprise of the open
marketplace by making illegal certain private conspiracies and combinations formed to
minimize competition. Most violations of antitrust laws in the real estate business
involve either price-fixing (brokers conspiring to set fixed compensation rates) or
allocation of customers or markets (Brokers agreeing to limit their areas of trade or
dealing to certain areas or properties).
✔✔Appraiser - ✔✔"An estimate of the quantity, quality, or value of something. The
process through which conclusions of property value are obtained; also refers to the
report that sets forth the process of estimation and conclusion of value."
✔✔Appreciation - ✔✔An independent person trained to provide an unbiased estimate of
value.
✔✔Appurtenance - ✔✔"An increase in the worth or value of a property due to economic
or related causes, which may prove to be either temporary or permanent; opposite of
depreciation."
✔✔Appurtenant Easement - ✔✔"A right, privilege, or improvement belonging to, and
passing with, the land; ""runs with the land."""
✔✔Area - ✔✔An easement that is annexed to the ownership of one parcel and allows
the owner the use of the neighbor's land.
✔✔Area Preference - ✔✔A level surface or piece of ground; the size of a surface; the
amount of a two-dimensional object.
✔✔Asbestos - ✔✔"People's desire for one area over another, based on a number of
factors such as history, reputation, convenience, scenic beauty, and location."
✔✔Assemblage - ✔✔A mineral once used in insulation and other materials that can
cause respiratory diseases.
✔✔Assessed Value - ✔✔The combining of two or more adjoining lots into one larger
tract to increase their total value.
, ✔✔Assessment - ✔✔The value set on property for taxation purposes.
✔✔Assignment - ✔✔"The imposition of a tax, charge, or levy, usually according to
established rates."
✔✔Assume - ✔✔"The transfer in writing of interest in a bond, mortgage, lease, or other
instrument."
✔✔Assumption of Mortgage - ✔✔"A buyer is personally obligated for the payment of the
entire debt of a seller; that is, the buyer assumes the debt. The original seller is not
liable for the debt if the property is foreclosed on."
✔✔Attachment - ✔✔"Acquiring title to property on which there is an existing mortgage
and agreeing to be personally liable for the terms and conditions of the mortgage,
including payments."
✔✔Attorney's Opinion of Value - ✔✔The act of taking a person's property into legal
custody by writ or other judicial order to hold it available for application to that person's
debt to a creditor.
✔✔Automated Underwriting - ✔✔"An abstract of title that an attorney has examined and
has certified to be, in his or her opinion, an accurate statement of the facts concerning
the property's ownership."
✔✔Automatic Extension - ✔✔Computer systems that permit lenders to expedite the
loan approval process and reduce lending costs.
✔✔Avulsion - ✔✔"A listing agreement clause stating that the agreement will continue
automatically for a certain period of time after its expiration date. In many states, use of
this clause is discouraged or prohibited"
✔✔Balance - ✔✔"The sudden tearing away of land, as by earthquake, flood, volcanic
action, or the sudden change in the course of a stream."
✔✔Balloon Payment - ✔✔The appraisal principle that states that the greatest value in a
property will occur when the type and size of the improvements are proportional to each
other as well as the land.
✔✔Bargain and Sale Deed - ✔✔A final payment of a mortgage loan that is considerably
larger than the required periodic payments because the loan amount was not fully
amortized.
