Real Estate and Legal Terms Glossary, Exams of Nursing

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WRA Exam FINAL WITH COMPLETE ANSWERS!! 0-Bedroom Dwelling ANSWER : Any residential dwelling in which the living area is not separated from the sleeping area Abstract of Title ANSWER : A condensed history of a property's title showing, in chronological sequence, matters such as conveyances, liens, and encumbrances that have been recorded against the title in the office of the register of deeds or other public recording place Acceleration Clause ANSWER : A clause within a mortgage permitting a lender to accelerate the amount due upon default and declare the entire balance due Acceptance ANSWER : Acceptance occurs when all buyers and sellers have signed an identical copy or separate but identical copies of the offer Accession ANSWER : The right of a property owner to become entitled to all that a property produces and to all that is added to it, either naturally or artificially Active Property ANSWER : Property currently for sale Actual Notice ANSWER : The actual knowledge a person has about the existence of a particular fact when notice is expressly and actually given Ad Valorem ANSWER : Latin for according to valuation. Refers to a tax based on a property's value, not the income of the property owner Addenda ANSWER : Additional material attached to and made part of a document ANSWER : An estimate or opinion of value based on supportable evidence and approved methods Appraiser ANSWER : An independent person trained to provide an unbiased estimate of value for a fee Approved Form ANSWER : A contractual or conveyance form that is prepared and approved by the Real Estate Examining Board (REEB) Appurtenant Easement ANSWER : Exists between two adjacent property owners where one is the dominant estate and the other is the servient estate. Attaches to the land and transfers to future owners. Arbitration ANSWER : The non-judicial submission of a controversy to third parties for determination in a manner provided by agreement or by law Arsenic ANSWER : An element found in soil and rock that is thought to increase the likelihood of several types of cancers Asbestos ANSWER : A mineral fiber that has been used in a variety of ways within homes, but usually as an insulator around plumbing. Can be friable or non-friable and may be hazardous to health Assessed Value ANSWER : The determination of a property's value for determining property taxes. Usually a percentage of the appraised value Assumable Loan ANSWER : A financing instrument with terms that are transferable to another party Atrazine ANSWER : A popular corn herbicide that has been used in Wisconsin for more than 25 years to control weeds in cornfields Balloon Loan ANSWER : A loan originated with a short repayment term of 3 to 7 years while being fully amortized fr 30 years Balloon Payment ANSWER : A lump-sum payment due at the end of a mortgage contract period Bilateral Contract ANSWER : A contract that binds two parties. Two promises are given, one in exchange for another Bill of Sale ANSWER : A legal document used to transfer ownership of personal property Binding Acceptance ANSWER : Creates an enforceable contract between parties. Only if a copy of an accepted offer is delivered to the party making the offer prior to the date established Blockbusting ANSWER : The practice of exploiting racial prejudices and the fear of a general decline in a neighborhood's real estate values to induce homeowners to sell their properties at a low price Breach ANSWER : A failure to perform as promised in a contract Bridge Loan ANSWER : A residential financing arrangement in which the buyer of a new home borrows money and gives a second mortgage on the buyer's unsold home to fund the acquisition of a new home Broker ANSWER : One who for another person, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase, or rental of or the granting or acceptance of an option to sell, exchange, purchase, or rent and interest or estate in real estate; one who shows real estate or a business or its inventory; or one who promotes the sale, exchange, purchase, option, rental, or leasing of a real estate, a time share, or a business or its goodwill, inventory or fixtures Brokerage ANSWER : The business of bringing buyers and sellers together in the marketplace Building Codes ANSWER : Ordinances specifying minimum standards of construction Building Permits ANSWER : Written government permission for the construction of a new building or improvement to an existing structure. The purpose is to show compliance with the zoning code to local authorities Bundle of Rights ANSWER : Completion of a real estate transaction where mortgage funds are given to a buyer who exchanges them with a seller for legal title to the property Cloud on Title ANSWER : A claim or encumbrance that would affect or burden an owner's title to real estate Coliform Bacteria ANSWER : Microorganisms found in the intestines and feces of humans and other warm-blooded animals as well as in soil, on vegetation, and in surface water runoff Color ANSWER : A protected class under fair housing laws that refers to a person's skin color Commercial Easement in Gross ANSWER : An easement between a landowner and a company that binds subsequent owners Commission ANSWER : The amount owed to a firm as payment for services rendered in connection with a listing contract or buyer agency agreement Common Elements ANSWER : All real property in a condominium development that is not described as a unit Common Law ANSWER : A body of law based on usage, general acceptance, and custom as manifested in decrees and judgments of the court's case law Comparable Property ANSWER : A benchmark used in the Market Data Approach to make a property value estimate based on other properties that have recently sold and are similar to the subject property in terms of location, physical features, price, and date of sale Competent Parties ANSWER : A party of legal age and sound mind Condemnation ANSWER : A judicial or administrative proceeding to exercise the power of eminent domain Conditional Use Permit ANSWER : Land uses allowed under certain conditions that a government has decided are not well suited to all locations within the zoning district Condominium Ownership ANSWER : Fee simple unit ownership of real property. Residents own their units plus a share of common elements Condominium Unit ANSWER : The part of the condominium development that is intended for individual use Conformity ANSWER : The maximum value of a property that is realized when the other properties in the neighborhood are similar Consideration ANSWER : A bargained for thing from a promisor to a promisee that is necessary for a valid contract Construction Lien ANSWER : A specific, involuntary lien placed against real property for the purpose of securing a debt. The lien may be placed by those who perform labor, furnish material, or professional services in the improvement of real estate Constructive Notice ANSWER : Knowledge that the law presumes a person has because of documents that have been recorded as a matter of public record Contingency ANSWER : A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding Contract ANSWER : A legally enforceable promise or set of promises that must be performed, and for which, if a breach occurs, the law provides a remedy Contract for Sale ANSWER : An agreement between a buyer and a seller for the sale and purchase of a property Contribution ANSWER : Any component to a property is worth only what it adds to the property's value regardless of the cost of the imrovement Control ANSWER : The right to use a property within the boundaries of the law ANSWER : Clauses in a deed that limit the future use of the property, such as the type of structure that can be erected or the purpose for which a structure may be erected Defeasance Clause ANSWER : A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied Deficiency Judgment ANSWER : A judgement against a person when the sale of a person's property is not sufficient to satisfy the mortgage debt Delivery ANSWER : A component of binding acceptance; can occur by fax, mail, electronically, or personally Depreciation ANSWER : A loss of value in a property Designated Agency ANSWER : A multiple representation relationship in which both the buyer and the seller are clients of the same firm in the same transaction and each client receives negotiation services from an agent to the firm Developer ANSWER : One who transfers undeveloped land into parcels ready for construction Disability ANSWER : A physical or mental impairment that substantially limits one or more major life activities, a record of having such a impairment, or being regarded as having such an impairment Discount Points ANSWER : Prepaid interest that is collecting at closing; This money is used to buy down the interest rate of a mortgage Disposition ANSWER : The right held by a property owner to lease, sell, or will the property away Dominant Estate/ Tenement ANSWER : A party to an easement who received an easement right to use another's property Downzoning ANSWER : A change in zoning from a more active to a less active classification; such a commercial to residential Dwelling ANSWER : Any building or part of a building designed for occupancy as a residence by one or more families Earnest Money ANSWER : Up-front cash or item of value from the potential buyer that indicates an intention to make good on an offer to purchase Easement ANSWER : An incorporeal right held by one party to make sue of the land of another for a limited purpose Easement by Condemnation ANSWER : Easement acquired through operation of law by a government for a public use Easement by Necessity ANSWER : An easement that is acquired through the operation of law allowing a purchaser of land ingress and egress Easement by Prescription ANSWER : An easement created by adverse use of a property over a statutory period of time Personal Easement in Gross ANSWER : an interest to use another's land that usually ends with the death of the grantee or transfer of property Eminent Domain ANSWER : A government's right to take private land for public use Encroachment ANSWER : To advance upon, or trespass upon the property of another as in the extension of some improvement or object across the boundary of a neighboring tract Encumbrance ANSWER : Any claim against a property that may diminish its value Equitable Title Fee Simple Absolute (Fee Simple) ANSWER : The largest estate of ownership that automatically passes upon death to the owner's heirs and devisees, either by will or by descent. The estate includes the complete bundle of legal rights Fee Simple Defeasible Estate ANSWER : An estate of inheritance that may be nullified upon the occurrence or non-occurrence of a particular event Fee Splitting ANSWER : A fee or commission paid to an unlicensed person for performing a brokerage activity Fiduciary ANSWER : One who is placed in a position of trust and confidence, normally responsible for the money or property of another Firm ANSWER : A licensed individual broker acting as a sole proprietorship or a licensed broker business entity Finance Charge ANSWER : A charge incurred by a consumer for the service of borrowing money Fixed Rate Loan ANSWER : A loan with a rate that does not change over the life of the loan Fixture ANSWER : An article that was once personal property but has been so affixed to real estate that it has become real property Floodplain ANSWER : The flat portions of land located along watercourses and streams that are subject to overflow and flooding Foreclosure ANSWER : A legal process used when a borrower defaults on a debt. A court orders the sale of a property to satisfy a debt Fraud ANSWER : An intentional distortion of the truth, a false representation, or non-disclosure where disclosure should have been made Freehold Estate ANSWER : An estate in land characterized by an interest in something immobile and of an indefinite duration Gap Endorsement ANSWER : When a title company will provide coverage for liens that occur between the title commitment and the recording of the deed Gap in Title ANSWER : A break in the chain of title Gap Period ANSWER : The time between the effective date of a title commitment and the recording of the owner's interest General Agency ANSWER : An agency relationship where an agent is authorized to conduct all of a principal's affairs within the context of an agency contract General Lien ANSWER : A claim on both real and personal property owned by an individual Government Financing ANSWER : Loan programs that are insured or guaranteed by the federal government Government Powers ANSWER : The rights of a government to limit private ownership of property for the general welfare of the community Grant ANSWER : the transfer of real estate by means of a deed Grantee ANSWER : A party who is receiving an interest in real property Grantor ANSWER : A party who is conveying an interest in real property Group Boycott Land Contract ANSWER : A type of seller financing in which title does not transfer from seller to buyer until the contract has been paid in full. A buyer gains equitable title and seller maintains legal title Latent Defect ANSWER : A property defect that is known by a seller and is not discoverable by an ordinary inspection of the property by an agent or buyer Lawful Source of Income ANSWER : A legal source of a person's income Laws of Agency ANSWER : The body of law that determines the rights and duties owed by an agent to a principal Lead-Based Paint Hazard ANSWER : Any condition that causes exposure to lead from contaminated dust, soil, or paint that is deteriorated or present on accessible, friction, or impact surfaces that would result in adverse human health effects Lead Poisoning ANSWER : An illness caused by lead that may be found in a home's paint or water pipes Leasehold ANSWER : A personal property interest in land acquired under a lease Lessee ANSWER : Tenant Lessor ANSWER : Property owner who leased property to a tenant; landlord Licensee ANSWER : Any person licensee under Chapter 452 of the Wisconsin Statutes; licensee salesperson, broker, or business entity Lien ANSWER : A legal right to place a claim or encumbrance on property or have it sold for payment of a debt Lien Theory ANSWER : States that use lien theory view the buyer as the owner of the property even though the lender has not received payment in full. The mortgage creates a lien on the real estate, which is used as collateral for a loan Life Estate ANSWER : An estate with a duration limited to the life of the party holding it or of some other person Life Tenant ANSWER : One who holds an estate in land for the period of the tenant's own life or the life of another person Limited Common Element ANSWER : Common elements of the condominium that are identified in the declaration or plat as reserved for the exclusive use of one or more unit owner Liquidated Damages ANSWER : A remedy for breach of contract available to a seller where the seller retains the buyer's earnest money. If a seller chooses this remedy, the seller forfeits all other remedies Lis Pendens ANSWER : Litigation pending; a notice filed on public record to give constructive notice that a property is in litigation and there may be a forthcoming lien Listing Firm ANSWER : the firm that the seller has employed under a listing contract listing licensee ANSWER : licensee associated with the listing firm who acquired the listing Listing Contract ANSWER : A written employment agreement that creates an agency relationship between a firm and a seller Loan-to-Value Ratio ANSWER : The relationship between the loan amount and the selling price Management and Control ANSWER : The ability that a married person has under Wisconsin's marital property laws to control marital property Marital Property ANSWER : A variety of fungous growths that can cause disintegration of organic matter Mortgage ANSWER : A financing instrument used to purchase property comprised of the mortgage document and mortgage note Mortgagee ANSWER : lender Mortgage Document ANSWER : The document pledging real estate as security for the repayment of a debt Mortgage Lien ANSWER : Lien rights given to a lender by a borrower in exchange for the loan Mortgage Note ANSWER : A document signed by a borrower that states the loan amount, the interest rate, the time and method of repayment, and the obligation to repay Mortgagor ANSWER : borrower Multiple Counter-Proposal ANSWER : A way for a seller to negotiate with multiple buyers. The seller is not bound to a particular buyer unless the seller accepts the buyer's approval Multiple Listing Service (MLS) ANSWER : A service permitting firms to pool their listings and offer to cooperate and compensate other firms. Voluntary organization where members agree to market their properties and offer subagency to other agents Multiple Representation Relationship ANSWER : A relationship between a firm and two or more of the firm's clients where the clients are parties in the same transaction National Origin ANSWER : The country from which a person or the person's ancestors originated Navigable Waterway ANSWER : A waterway with a bed and banks where it is possible to float a small water craft at some point during the year Net Listing ANSWER : An employment contract in which the firm receives, as commission, all excess monies over and above the minimum sales price agreed on by firm and seller Nitrates ANSWER : A natural component of plants that is found at varying levels depending on the amount of fertilizer applied and on other growing conditions Non-conforming Loans ANSWER : Loans that do not conform to the guidelines of conventional loans Non-conforming Use ANSWER : When a property's use does not conform to current zoning because of a change in the zoning ordinance. The use of the property is permitted to continue until the property is destroyed or the use is discontinued Notice Relating to the Offer to Purchase ANSWER : A form used by a party to a purchase contract to unilaterally give notice to another party Offer to Purchase ANSWER : A promise made to purchase a seller's property under certain terms Open House ANSWER : A showing of real estate open to the public for viewing without an individual appointment One-party Listing ANSWER : A listing that specifies a particular buyer. The listing firm will earn a commission if the named buyer purchases the property Open Listing ANSWER : A listing that gives more than one firm the right to sell a property. The firm that procures a buyer earns the commission Operation of Law ANSWER : A term that describes the way a right is created for a party by the application of established rules of law Opinion of Title ANSWER : An opinion by a person competent in examining title, usually an attorney, as to the status of the recorded title of a property Plat ANSWER : A map showing the specific location and boundaries of land that has been subdivided into lots Plot Plan ANSWER : A plan showing the layout of improvements on a property site. It usually includes location, dimensions, parking areas, and landscaping Points ANSWER : Prepaid interest that is collected at closing. This money is used to buy down the interest rate of a mortgage Police Power ANSWER : The power of a government to preserve order and protect the public health and general welfare Possession ANSWER : The act of occupying a property Power of Attorney ANSWER : A written instrument giving a person the authority to act on behalf of another Predetermination Date Property ANSWER : A classification of property under Wisconsin's marital property law describing property of married people acquired prior to their determination date Prepayment Penalty ANSWER : A charge imposed against a borrower for paying a loan off early Price-fixing ANSWER : Competitors conspiring together to eliminate competition by agreeing on the prices they will charge consumers Primary Market ANSWER : The market where loans are originated and sold Principal ANSWER : 1. One who has permitted or directed another to act for his/her benefit and subject to his/her direction and control. 2. The amount of money that is borrowed, not including the payment of interest. 3. A firm that has engaged a subagent firm to provide brokerage services Priority of Liens ANSWER : The order in which liens are paid in a foreclosure sale Private Mortgage Insurance (PMI) ANSWER : An insurance policy written to insure a portion of a mortgage amount for a borrower Probate ANSWER : Formal judicial proceedings to prove or confirm the validity of a will, to collect the assets of a decedent's estate, to pay debts and taxes, and to determine the persons to whom the remainder of the estate is to pass Procurement ANSWER : The uninterrupted chain of events that lead to a sale Promissory Note ANSWER : An unconditional promise of one person to pay a certain sum of money to another at a future specified time Property Taxes ANSWER : Taxes levied by the government against real estate Puffing ANSWER : The common practice expressing an exaggerated opinion of a property's benefits Purchase Money Mortgage ANSWER : A form of seller financing where the seller acts as a lender in granting a loan to the buyer for a portion of the purchase price Quiet Enjoyment ANSWER : The right of a property owner to the uninterrupted use of the property without disturbance from superior titles Quitclaim Deed ANSWER : A deed that conveys title to real property without making warranties or representations regarding the quality of the deed Race Riparian Rights ANSWER : The rights that govern lakes and running waters, such as rivers and streams. Property owners with riparian rights own the land to the center of the navigable water or the ordinary high water mark Rural Housing Loan ANSWER : A loan program under the Department of Agriculture designed to meet the needs of low- income and moderate-income rural residents to purchase, construct, repair, or Srelocate a dwelling and related facilities. Sales Contract ANSWER : Contract for Sale Salesperson ANSWER : Any individual who is associated with a firm, other than a broker or a person who is not required to have a license Satisfaction of Mortgage ANSWER : A certificate issued by the mortgagee when a mortgage is paid in full. The certificate serves to remove the mortgagee's lien on the property from public records Secondary Market ANSWER : A market for the purchase and sale of existing mortgages. Selling Firm/Licensee ANSWER : The selling firm is the firm that found the buyer for a seller. The selling licensee is the person, within the selling firm, who found the buyer. Servient Estate/Licensee ANSWER : The landowner who grants or serves the right to use property to another in an appurtenant easement. Setback ANSWER : The amount of space required by zoning restrictions between the lot line and any improvements on the lot. Severalty ANSWER : Sole ownership of real property. Sex ANSWER : A class protected under fair housing laws referring to gender. Sexual Orientation ANSWER : Having a preference for heterosexuality, homosexuality, bisexuality, having a history of such a preference, or being identified with such a preference. Single Agency ANSWER : The practice of representing either the buyer or the seller but not both in the same transaction. Special Agency ANSWER : An agency relationship where an agent is authorized by a principal to perform one particular act or transaction. Special Assessment ANSWER : A tax on property owners in the area of an improvement such as new curbs and gutters. Specific Lien ANSWER : A claim against a piece of property. Specific Performance ANSWER : An action brought by a court to force a party to carry out the terms of a contract. Spot Zoning ANSWER : Occurs when a single parcel is granted special privileges that are not extended to other land that is similarly situated. Permissible when in the public interest. Statute of Frauds ANSWER : The statute requiring that all contracts that transfer an interest in real estate are in writing, state the date, describe the property, state the terms of payment, and be signed by the party incurring the debt. Statute of Limitations ANSWER : The law pertaining to the period of time during which certain actions must be brought to court or the right to sue is lost. Statutory ANSWER : Authorized by statute or state law. Statutory Lien ANSWER : A lien created by the enactment of a law established by legislation. Steering Time is of the Essence ANSWER : The specified date in the contract by which agreed-upon acts must be completely performed or the non-performing party will be in breach of the contract. Title ANSWER : The legal right to the possession of property. It implies that the title owner has acquired the property and the bundle of legal rights that accompany ownership. Title Insurance Policy ANSWER : An insurance policy that protects the insured against loss or defects that may occur in the title. Trade Fixtures (Chattel Fixtures) ANSWER : Items of personal property that have become permanently attached to leasehold property and are used for the purpose of operating a trade or business Trade Name ANSWER : A name filed with the department under which a firm provides services. Transfer Fee ANSWER : A state-imposed fee on the sale of property. The fee is 30 cents for each $100 of value that a party transfers Triggering Terms ANSWER : Advertising phrases that may not be used unless all of the terms of the loan are disclosed in the advertisement Truth in Lending Act ANSWER : A law enforced by the Federal Trade Commission requiring lenders to disclose to borrowers the true cost of obtaining credit Underground Storage Tank (UST) ANSWER : Tanks used in the storage of fuel or heating oil for non-commercial purposes or consumptive use Unenforceable Contract ANSWER : A contract whereby neither party can sue the other for performance. However, an unenforceable contract may be valid between the parties by their mutual agreement Unilateral Contract ANSWER : A one-sided agreement where one party makes a promise to another and is bound by the promise. The second party is not bound Unlicensed Personal Assistant ANSWER : Person not licensed under Chapter 452 or licensed but not employed for the purpose of providing services for which a license is required Use-value Assessment ANSWER : A method of assessing Wisconsin agricultural land for property tax purposes. The land is assessed based upon its agricultural productivity rather than its potential for Vdevelopment or fair market value Valid Contract ANSWER : A contract that contains all of the necessary elements and is enforceable in a court of law Variance ANSWER : Grants permission to deviate from a zoning restriction. Vendee ANSWER : The purchaser of realty under a land contract Vendor ANSWER : The seller of realty under a land contract Veteran's Administration Loans (VA) ANSWER : A government-sponsored mortgage assistance program, where eligible veterans or unmarried widows of veterans who died in service may obtain partially guaranteed loans for the purchase or construction of a home Volatile Organic Compound (VOC) ANSWER : Widely used as cleaning and liquefying agents in fuels, paints, degreasers, solvents, polishes, cosmetics, and dry cleaning solutions Void Contract ANSWER : An unenforceable contract that lacks legal purpose or essential requirements. Voidable Contract ANSWER : A contract that can be voided by an injured party. Voluntary Lien ANSWER : Voluntary Lien