REAL ESTATE FINAL EXAMS(VOCABULARY)
QUESTIONS AND VERIFIED DETAILED ANSWERS
GRADED A+ 2024-2025
General Agent
An agent with full authority over one property of the principal, such as a property manager.
General Lien
A lien on all the property of a debtor
Government National Mortgage Association (GNMA) (Ginnie Mae)
A government-owned corporation within the U.S. Department of Housing and Urban Development
(HUD) that guarantees securities backed by mortgages that are insured or guaranteed by other
government agencies. Popularly known as .
Government Survey
A method of specifying the location of parcel of land using prime meridians, base lines, standard
parallels, guide meridians, townships and sections.
Graduated Lease
A lease which provides for a varying rental rate, often based upon a future determination; sometimes
rent is based upon the result of periodic appraisals; used largely in long-term leases.
Grant
,A technical legal term in a deed of conveyance bestowing an interest in real property to another. The
words "convey" and "transfer" have the same effect.
Grant Deed
A limited warranty deed using the word "grant" or like words that assures a grantee that the grantor has
not already conveyed the land to another and that the estate is free from encumbrances placed by the
grantor.
Grantee
A person to whom a grant is made.
Grantor
A person who transfers his or her interest in property to another by grant.
Gross Lease
A lease in which the lessor pays all costs of operating and maintaining the property and real estate
taxes.
Ground Lease
An agreement for the use of land only, sometimes secured by improvements placed on the land by the
user.
Group Boycott
An agreement between members of a trade to exclude other members from fair participation in the
trade.
,Habendum Clause
The "to have and to hold" clause which may be found in a deed.
Highest and Best Use
An appraisal phrase meaning that use which at the time of an appraisal is most likely to produce the
greatest net return to the land and/or buildings over a given period of time; that use which will produce
the greatest amount of profit. This is the starting point for an appraisal.
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it.
Implied Agency
Agency that exists as a result of actions of the parties.
Implied Contract
An agreement that has not been put into words, but is implied by the actions of the parties.
Income (Capitalization) Approach
An appraisal method applied to income producing properties, which involves a three-step process. First,
the appraiser must find the net annual income. Second, an appropriate capitalization rate or "present
worth" factor must be set. Finally, the appraiser must capitalize the income by dividing the net income
by the capitalization rate
, Independent Contractor
- A person that provides services to another under terms specified in a contract or within a verbal
agreement.
Insured Value
The value of an asset or asset group that is covered by an insurance policy; can be estimated by
deducting cost of non-insurable items (e.g. land value) from market value.
Interest
- The charge in dollars for the use of money for a period of time. In a sense, the "rent" paid for the use of
money.
Interest Only Loan
A straight, non-amortizing loan in which the lender receives only interest during the term of the loan
and principal is repaid in a lump sum at maturity.
Intestate
A person who dies having made no will, or one which is defective in form, is said to have died intestate,
in which case the estate descends to the heirs at law or next of kin.
Investment Value
- The specific value of an investment to a particular investor or class of investors based on individual
investment requirements; distinguished from market value, which is impersonal and detached.
QUESTIONS AND VERIFIED DETAILED ANSWERS
GRADED A+ 2024-2025
General Agent
An agent with full authority over one property of the principal, such as a property manager.
General Lien
A lien on all the property of a debtor
Government National Mortgage Association (GNMA) (Ginnie Mae)
A government-owned corporation within the U.S. Department of Housing and Urban Development
(HUD) that guarantees securities backed by mortgages that are insured or guaranteed by other
government agencies. Popularly known as .
Government Survey
A method of specifying the location of parcel of land using prime meridians, base lines, standard
parallels, guide meridians, townships and sections.
Graduated Lease
A lease which provides for a varying rental rate, often based upon a future determination; sometimes
rent is based upon the result of periodic appraisals; used largely in long-term leases.
Grant
,A technical legal term in a deed of conveyance bestowing an interest in real property to another. The
words "convey" and "transfer" have the same effect.
Grant Deed
A limited warranty deed using the word "grant" or like words that assures a grantee that the grantor has
not already conveyed the land to another and that the estate is free from encumbrances placed by the
grantor.
Grantee
A person to whom a grant is made.
Grantor
A person who transfers his or her interest in property to another by grant.
Gross Lease
A lease in which the lessor pays all costs of operating and maintaining the property and real estate
taxes.
Ground Lease
An agreement for the use of land only, sometimes secured by improvements placed on the land by the
user.
Group Boycott
An agreement between members of a trade to exclude other members from fair participation in the
trade.
,Habendum Clause
The "to have and to hold" clause which may be found in a deed.
Highest and Best Use
An appraisal phrase meaning that use which at the time of an appraisal is most likely to produce the
greatest net return to the land and/or buildings over a given period of time; that use which will produce
the greatest amount of profit. This is the starting point for an appraisal.
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it.
Implied Agency
Agency that exists as a result of actions of the parties.
Implied Contract
An agreement that has not been put into words, but is implied by the actions of the parties.
Income (Capitalization) Approach
An appraisal method applied to income producing properties, which involves a three-step process. First,
the appraiser must find the net annual income. Second, an appropriate capitalization rate or "present
worth" factor must be set. Finally, the appraiser must capitalize the income by dividing the net income
by the capitalization rate
, Independent Contractor
- A person that provides services to another under terms specified in a contract or within a verbal
agreement.
Insured Value
The value of an asset or asset group that is covered by an insurance policy; can be estimated by
deducting cost of non-insurable items (e.g. land value) from market value.
Interest
- The charge in dollars for the use of money for a period of time. In a sense, the "rent" paid for the use of
money.
Interest Only Loan
A straight, non-amortizing loan in which the lender receives only interest during the term of the loan
and principal is repaid in a lump sum at maturity.
Intestate
A person who dies having made no will, or one which is defective in form, is said to have died intestate,
in which case the estate descends to the heirs at law or next of kin.
Investment Value
- The specific value of an investment to a particular investor or class of investors based on individual
investment requirements; distinguished from market value, which is impersonal and detached.
