Ct Real Estate Terms Midterm Exam
Questions 100% Well Answered 2025.
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 and a certification by the abstractor that the history is
complete and accurate.
Accelerated Cost Recovery System (ACRS) - Answer Method for claiming tax deductions for
certain property purchased before 1987 in which it was possible to claim greater deductions in
the early years of ownership, gradually reducing the amount deducted in each year of useful
life.
Acceleration Clause - Answer The clause in a mortgage or deed of trust that can be enforced
to make the entire debt due immediately if the borrower defaults on an installment payment or
other obligation.
accession - Answer Acquiring title to additions or improvements to real property as a result of
the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
accretion - Answer The increase or addition of land by the deposit of sand or soil washed up
naturally from a river, lake, or sea.
Accrued Depreciation - Answer Loss in a property's value resulting from physical deterioration,
external depreciation, and functional obsolescence.
accrued items - Answer On a closing statement, items of expense that are incurred but not yet
payable, such as interests in a mortgage loan or taxes on real property.
acknowledgement - Answer A formal declaration made before a duly authorized officer,
usually a notary public, by a person who has signed a document.
acre - Answer A measure of land equal to 43,560 square feet.
Action to Quiet Title - Answer A court action that establishes ownership when ownership
,Actual Notice - Answer Express information or fact; that which is known; direct knowledge.
ad valorem tax - Answer A tax levied according to value, generally used to refer to real estate
tax. Also called the general tax.
addendum - Answer Any provision added to an existing contract without altering the content
of the original. Must be signed by all parties.
Adjustable rate mortgage (ARM) - Answer A loan characterized by a fluctuating interest rate,
usually one tied to a bank or savings and loan association cost-of-funds index.
Administrative Law judge - Answer The official who presides over a hearing involving a
government agency and someone affected by a decision of that agency. The ALJ hears evidence,
including the testimony of witnesses, and renders a decision.
administrator - Answer A court-selected person who assists with the settlement of an estate of
a person who died without leaving a will.
Adverse Possession - 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.
Affidavit of Title - Answer A written statement, made under oath by a seller or grantor of real
property and acknowledged by a notary public, in which the grantor (1) identifies himself or
herself and indicates marital status, (2) certifies that since the examination of the title, on the
date of the contract no defects have occurred in the title, and (3) certifies that he or she is in
possession of the property (if applicable). 401
affiliated business arrangement (ABA) - Answer Practice of one company offering a package of
services to consumers.
agency - Answer The 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.
, agent. A prospective property buyer may authorize a real estate broker to act as the buyers
agent to find a suitable property.
Air lots - Answer A designated airspace over a piece of land. An air lot, like surface property,
may be transferred.
Air Rights - Answer The right to use the open space above a property, usually allowing the
surface to be used for another purpose.
Alienation - Answer 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.
Alienation Clause - Answer A provision in a mortgage requiring full payment of the debt upon
the transfer of title to the property, due on sale. Prevents loan assumptions.
Allodial System - Answer 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.
Amendment - Answer A change to the existing content of a contract. Must be initialed by all
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
Questions 100% Well Answered 2025.
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 and a certification by the abstractor that the history is
complete and accurate.
Accelerated Cost Recovery System (ACRS) - Answer Method for claiming tax deductions for
certain property purchased before 1987 in which it was possible to claim greater deductions in
the early years of ownership, gradually reducing the amount deducted in each year of useful
life.
Acceleration Clause - Answer The clause in a mortgage or deed of trust that can be enforced
to make the entire debt due immediately if the borrower defaults on an installment payment or
other obligation.
accession - Answer Acquiring title to additions or improvements to real property as a result of
the annexation of fixtures or the accretion of alluvial deposits along the banks of streams.
accretion - Answer The increase or addition of land by the deposit of sand or soil washed up
naturally from a river, lake, or sea.
Accrued Depreciation - Answer Loss in a property's value resulting from physical deterioration,
external depreciation, and functional obsolescence.
accrued items - Answer On a closing statement, items of expense that are incurred but not yet
payable, such as interests in a mortgage loan or taxes on real property.
acknowledgement - Answer A formal declaration made before a duly authorized officer,
usually a notary public, by a person who has signed a document.
acre - Answer A measure of land equal to 43,560 square feet.
Action to Quiet Title - Answer A court action that establishes ownership when ownership
,Actual Notice - Answer Express information or fact; that which is known; direct knowledge.
ad valorem tax - Answer A tax levied according to value, generally used to refer to real estate
tax. Also called the general tax.
addendum - Answer Any provision added to an existing contract without altering the content
of the original. Must be signed by all parties.
Adjustable rate mortgage (ARM) - Answer A loan characterized by a fluctuating interest rate,
usually one tied to a bank or savings and loan association cost-of-funds index.
Administrative Law judge - Answer The official who presides over a hearing involving a
government agency and someone affected by a decision of that agency. The ALJ hears evidence,
including the testimony of witnesses, and renders a decision.
administrator - Answer A court-selected person who assists with the settlement of an estate of
a person who died without leaving a will.
Adverse Possession - 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.
Affidavit of Title - Answer A written statement, made under oath by a seller or grantor of real
property and acknowledged by a notary public, in which the grantor (1) identifies himself or
herself and indicates marital status, (2) certifies that since the examination of the title, on the
date of the contract no defects have occurred in the title, and (3) certifies that he or she is in
possession of the property (if applicable). 401
affiliated business arrangement (ABA) - Answer Practice of one company offering a package of
services to consumers.
agency - Answer The 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.
, agent. A prospective property buyer may authorize a real estate broker to act as the buyers
agent to find a suitable property.
Air lots - Answer A designated airspace over a piece of land. An air lot, like surface property,
may be transferred.
Air Rights - Answer The right to use the open space above a property, usually allowing the
surface to be used for another purpose.
Alienation - Answer 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.
Alienation Clause - Answer A provision in a mortgage requiring full payment of the debt upon
the transfer of title to the property, due on sale. Prevents loan assumptions.
Allodial System - Answer 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.
Amendment - Answer A change to the existing content of a contract. Must be initialed by all
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
