Real Estate Virginia definitions made
by Katy Exam Questions & Answers
100% Correct
Attachment - ANSWER-Where a creditor's lawyer asks the court for permission to
put a lien or attach to your land or home. Constitutes a lien against real and personal
property (that are attached to the land)
Gross Rent Multiplier (GRM) - ANSWER-A factor dividing sales price by monthly
rental income
Buffer zone - ANSWER-A park located next to an apartment complex zoned for
single fam homes
Income (Cap) Approach formula - ANSWER-dividing the net income by the cap rate
Personal property examples - ANSWER-Privacy fence, patio furniture, and portable
dishwasher. Something that can be removed
Condo ownership - ANSWER-has fee simple ownership of one unit in a multi-story
building and pays property taxes on their unit
Fee Simple Ownership - ANSWER-Allows for the transfer of title of real property by a
will
FHA loans - ANSWER-may be made only to a borrower whose intent is to live in the
property
Neighborhood Analysis Approach for Appraisal - ANSWER-Shows that property has
experienced growth, stability and decline
Promissory note - ANSWER-Evidence of debt
Obligation of the borrower
contains amount of principal interest rate and payment terms
Dedication - ANSWER-Donation of RE for public uses
Quiet enjoyment example - ANSWER-A farmer leased a property from a company
he found out someone else was working with the land and was the true owner. that
farmer wouldn't have to pay rent to the conpany bc of quiet enjoyment
Specific performance - ANSWER-Buyer or seller defaulting on a contract before
closing
, Supervising Broker - ANSWER-An individual associate broker who has been
assigned to supervise the activities of a branch office
Ready, willing, and able buyer - ANSWER-A full price offer from a financially
qualified buyer
Commingling - ANSWER-A broker borrows money from an owners escrow account
of another property
Plottage - ANSWER-Merging separate properties under one owner and it increases
the sale
Associate broker - ANSWER-A licensee who has a brokers license but continues to
work under the principal broker
Designated Agents - ANSWER-When a principal broker assigns two licensees to
work with two separate clients in the same transaction
Escrow - ANSWER-A written instrument or something of value given to a 3rd party
Easement in Gross - ANSWER-a right of way to someone else's property like a
driveway, for their whole lifetime
FHA's role in the lending mortgage market - ANSWER-Insures loans made by
approved lenders
What law would allow a tenant to rent while excluding families w children? -
ANSWER-Fair Housing Laws and is allowed if its a single family house and the
owner only owns one other rental home in addition to his own residence
Who holds security in a trust deed? and is acknowledged by: - ANSWER-Trustee
Grantor (seller or owner)
Conventional loans are insured by: - ANSWER-Private Mortgage Insurance
Adverse Possession - ANSWER-Person having possession over land owned by
someone else may take title to it
Blanket mortgage - ANSWER-If a mortgage is covering more than one parcel of land
RESPA - ANSWER-covers owner occupied homes w their 1st mortgage loans or
anyone using federal insurance, discloses settlement costs
Assemble , -age - ANSWER-Merging lots under one owner, prohibited w RESPA
CRESPA - ANSWER-Attorneys, Title Insurance Co's, Real Estate Brokers,
Consumer Real Estate Settlement Protection Act, Would be required for a 4 unit
condo
by Katy Exam Questions & Answers
100% Correct
Attachment - ANSWER-Where a creditor's lawyer asks the court for permission to
put a lien or attach to your land or home. Constitutes a lien against real and personal
property (that are attached to the land)
Gross Rent Multiplier (GRM) - ANSWER-A factor dividing sales price by monthly
rental income
Buffer zone - ANSWER-A park located next to an apartment complex zoned for
single fam homes
Income (Cap) Approach formula - ANSWER-dividing the net income by the cap rate
Personal property examples - ANSWER-Privacy fence, patio furniture, and portable
dishwasher. Something that can be removed
Condo ownership - ANSWER-has fee simple ownership of one unit in a multi-story
building and pays property taxes on their unit
Fee Simple Ownership - ANSWER-Allows for the transfer of title of real property by a
will
FHA loans - ANSWER-may be made only to a borrower whose intent is to live in the
property
Neighborhood Analysis Approach for Appraisal - ANSWER-Shows that property has
experienced growth, stability and decline
Promissory note - ANSWER-Evidence of debt
Obligation of the borrower
contains amount of principal interest rate and payment terms
Dedication - ANSWER-Donation of RE for public uses
Quiet enjoyment example - ANSWER-A farmer leased a property from a company
he found out someone else was working with the land and was the true owner. that
farmer wouldn't have to pay rent to the conpany bc of quiet enjoyment
Specific performance - ANSWER-Buyer or seller defaulting on a contract before
closing
, Supervising Broker - ANSWER-An individual associate broker who has been
assigned to supervise the activities of a branch office
Ready, willing, and able buyer - ANSWER-A full price offer from a financially
qualified buyer
Commingling - ANSWER-A broker borrows money from an owners escrow account
of another property
Plottage - ANSWER-Merging separate properties under one owner and it increases
the sale
Associate broker - ANSWER-A licensee who has a brokers license but continues to
work under the principal broker
Designated Agents - ANSWER-When a principal broker assigns two licensees to
work with two separate clients in the same transaction
Escrow - ANSWER-A written instrument or something of value given to a 3rd party
Easement in Gross - ANSWER-a right of way to someone else's property like a
driveway, for their whole lifetime
FHA's role in the lending mortgage market - ANSWER-Insures loans made by
approved lenders
What law would allow a tenant to rent while excluding families w children? -
ANSWER-Fair Housing Laws and is allowed if its a single family house and the
owner only owns one other rental home in addition to his own residence
Who holds security in a trust deed? and is acknowledged by: - ANSWER-Trustee
Grantor (seller or owner)
Conventional loans are insured by: - ANSWER-Private Mortgage Insurance
Adverse Possession - ANSWER-Person having possession over land owned by
someone else may take title to it
Blanket mortgage - ANSWER-If a mortgage is covering more than one parcel of land
RESPA - ANSWER-covers owner occupied homes w their 1st mortgage loans or
anyone using federal insurance, discloses settlement costs
Assemble , -age - ANSWER-Merging lots under one owner, prohibited w RESPA
CRESPA - ANSWER-Attorneys, Title Insurance Co's, Real Estate Brokers,
Consumer Real Estate Settlement Protection Act, Would be required for a 4 unit
condo
