Federal and State Exam Terms for Idaho Real Estate Questions With Verified Answers

Abstract of Title - Answer The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property - certification by the abstractor that the history is complete and accurate. 213 Acceleration Clause - Answer Clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on payment or covenant. Accession - Answer Acquiring title to additions or improvements to real property as a result of annexation of fixtures or the accretion of alluvial deposits along the banks and streams. Accretion - Answer The increase or addition of land by deposit of sand/soil washed up naturally from a body of water. Accrued Items - Answer On closing statement, items of expense that are incurred but not yet payable such as interest or taxes on real property. Acre - Answer 43,560 sq feet. Actual Eviction - Answer The legal process that results in the tenants' being physically removed from the lease premises. Actual Notice (eviction) - Answer Express information or fact, that which is known, direct notice. Ad valorem tax - Answer Tax levied according to value, generally used to refer to real estate tax. Also called General Tax. Addendum - Answer Adds to an existing contract without altering the content of the original. Muse be agreed and signed off by all parties. Adjustable-Rate Mortgage (ARM) - Answer A loan characterized by fluctuating interest rates, usually one tied to a bank or savings loan association cost-of-funds index. Administrator/Administratix - Answer A court selected person who assists with the settlement of an estate of a person who died without leaving a will (intestate). Adverse Possesion - Answer The actual, open, notorious, hostile, and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title. Agency - Answer Relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions. Agency by ratification - Answer An agency relationship created after the fact. Air Lots - Answer Designated airspace over a piece of land. An air lot, like surface property, may be transferable. Air Rights - Answer The right to use the open space above a property, usually allowing for the surface to be used for another purpose. Alienation - Answer The act of transferring property to another. May be voluntary, such as by gift or sale, or involuntary as through eminent domain or adverse possession. Alienation Clause - Answer 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, the clause prevents the borrower from assigning the debt without the lender's approval. Allodial System - Answer System of land ownership in which the land is held free and clear of any rent or services due to the government; commonly contrasted to the feudal system. Landis held under the allodial system in the United States. Ammendment - Answer A change to an existing content of a contract. Must be signed and agreed on by all involved parties. American Land Title Association (ALTA) Policy - Answer A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan. Americans with Disabilities Act (ADA) - Answer Act addresses rights of individuals with disabilities in employment and public accommodations. Amortized Loan - Answer 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. Annexation - Answer Process of converting personal property into real property. Annual Percentage Rate (APR) - Answer 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 - Answer 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 in real estate business involve either price fixing, or allocation of customer markets. Appraisal - Answer An estimate of quantity, quality, or value of something. 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 - Answer An increase in worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent. Opposite of depreciation. Appurtenance - Answer A right, privilege, or improvement belonging to, and passing with, the land. "Runs with the land." Appurtenant Easement - Answer Easement that is annexed to the ownership of the one parcel and allows the owner the use of the neighbor's land. Asbestos - Answer A mineral once used in insulation and other materials that can cause respiratory disease. Assemblage - Answer The combining of tho or more adjoining lots into one larger tract to increase the value (also called plottage). Assessed Value - Answer The value set on property for taxation purposes. Assumption of Mortgate - Answer Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms/conditions of the mortgage, including payments. Attachment - Answer The act of taking a person's property into legal custody by writ or other juditial order to hold it available for application to that person's debt to a creditor. Automated Underwritting - Answer Computer systems that permit lenders to expedite the loan approval process and reduce lending costs. Avulsion - Answer The sudden tearing away of land as by earthquake, flood, volcanic action, lor the sudden change in the course of a stream. Balloon Payment - Answer A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized. 243 Beneficiary - Answer The person for whom a trust operates or in whose behalf the income from the trust estate is drawn. A lender in a deed of trust loan transaction. Receives the benefit. Binder - Answer An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser's good faith and intent to complete the transaction. Blanket Loan - Answer A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt. Blockbusting - Answer The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry of prospective entry of persons of a particular race or national origin into the neighborhood. Broker's Price Opinion (BPO) - Answer An opinion of real estate value commissioned by a bank or attorney and provided by a broker. Bundle of Legal Rights - Answer The concept of land ownership that includes ownership of all legal rights to the land possession, controlled within the law, enjoyment, exclusion and disposition. Buydown - Answer Using discount points to reduce the monetary amount of monthly payments. Capital Gain - Answer Profit earned from the sale of an asset. Capitalization - Answer A mathematical process for estimating the value of property using a proper rate of return on the investment and the annual net operating income expected to be produced by the property. The formula is expressed as follows: Income / Rate = Value.