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KY Real Estate Exam Questions With
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Accretion
Increase of land by deposit of sand or soil washed up naturally from a river, lake or sea
ADA Tenant
Tenant with disability. Must accommodate for tenants/residents with disabilities. Priority is to get party to the door. Can make changes, must be giving parking if available, do not have to ask to make changes
Broker's License
License to act as intermediary on behalf of others for a commission. Bringing together of parties interested in making a real estate transaction.
Bilateral Contract
All parties are legally bound to to act as prescribed
Unilateral Contract
One party is bound to contract or act
Brownfields
Defunct, derelict, or abandoned commercial or industrial sites, many have toxic wastes
Condemnation
Proceeding to exercise the power of eminent domain
Commingling
Illegal act of placing client or customer funds with personal funds.
Commission Earned
payment to a broker service for sale or purchase of a property; usually a percentage
Cooperative
Residential multi-unit building whose title is held by a trust or corporation that is owned and operated for the people living within the building who are the beneficial owners of the trust or shareholders of the corporation.
Commission Split
Commission earned from selling a property is split between licensee and principal broker
Civil Rights Act of 1866
Trust Deed; Deed OF Trust
Used to create a mortgage lein by which the borrower conveys title to a trustee (third party) who holds it as security for the benefit of the note holder (lender)
Delivery & Acceptance
Title is delivered by grantor and accepted by grantee
Devise
Gift of property through a will
Depreciation
Appraisal- Loss of value in property due to any cause
Real Estate Investment- Expense deduction for tax purposes taken over the period of ownership of income property
Do Not Call Registry
national call registry monitored by FTC; list of consumers who do not wish to be called
Executed Contract
Contract in which all parties have fulfilled their promises and thus performed the contract
Exclusive Right to Sell Listing
Listing contract where owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner's terms and agrees to pay broker a commission when the property is sold by the broker, owner, or another broker
Earnest Money
Money deposited by a buyer under the terms of a contract to be forfeited if the buyer defaults
Fee Simple
Highest interest in real estate recognized by law. holder is entitled to all rights to the property
Fee Simple Absolute
Maximum possible estate or right of ownership of real property continuing forever
Fee Simple Defeasible
Holder has fee simple title that may be divested upon the occurrence of a specified or non specified event.
Fee SImple Determinable
Qualified by a specific limitation. Language used: so long as, while, or during
Home Inspection
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HUD- 1
Form that itemizes fees and services charged to a borrower and seller during a real estate transaction
Income Approach
Estimating value of an income producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life
Joint Tenants
Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon death of a joint tenant the decent's interests passes to the surviving joint tenant or tenants by the right of survivorship
License Expires
When licensee fails to renew it, does not complete continuing education
Lead Paint 1978
75% of houses built before 1978 used lead based paint, can cause damage to body
Leasing Property
Written or oral contract between a landlord and tenant that transfers the right to exclusive possession and use of landlord's property to the lessee for a specific time and rent amount. Leases for longer than a year must be in writing to be enforceable.
Loan Origination
Fee charged to borrower by lender making a mortgage loan. 1% of loan amount
Loan to Value (LTV) Ratio
Relationship between the amount of the mortgage and the value of the real estate being pledged
Lis Piendens
Recorded legal document giving constructive notice that an action affecting a particular property has been filed with state or federal court (pending)
Listing COntinue
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Manufactured Housing
Dwellings that are built off site and trucked to a building lot where they are installed or assembled
Oral Lease
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Puffing
Exaggerated or superlative comments or opinions
Property Manager
Manages real estate for another person for compensation. Duties: collecting rent, maintaining property, and keeping up accounting
PMI (Private Mortgage Insurance)
Insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and deficiency
Promissory Note
Financing instrument that states the terms of the underlying obligation, signed by its maker and is negotiable (transferable to a third party)
Principal Broker
Broker whose name is associated with the firm. All ads must have his or company name. Licensees commission is shared with this broker
Rescission
One party canceling or terminating a contract, which has the effect of returning the parties to their original positions before the contract was made.
REIT 100
Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax
Redemption Statutory
Right of a defaulted property owner to recover his or her property by curing the default
Riparian Rights
Owner's rights in land that borers or includes a stream, river or lake. These include access to and use of the water
Restrictive Covenant
Clause in a deed that limits the way the real estate ownership may be used
Steering
Tax Assessment
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Tenancy at Will
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Unlicensed Assistant
Limitations in what information can be said to customer or client. Not allowed to make copies of keys
VA Mortgage
Mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the VA in order to limit the lender's possible loss. 100% financing
Gross Lease
Pay only rent
Estate at Sufferance
No longer have right to be there but used to
Holdover
Tenant remains in possession after expiration of an estate for years (legal or illegal)
Syndication
Pulling of Money from investors
Partition
Legal action to divide interest
Gross Easement
Personal right; Not attached to property terminates on sale of land or death
Encroachment
Extension of an improvement; Extends beyond land of owner and onto anothers property
Gross Rent Multiplier (GRM)
Used on single family homes/duplex; expenses not considered
Capitalization
Open End Mortgage
Allows for future advances
Wraparound Mortgage
Junior loan wraps around a senior loan
Blanket Mortgage
Covers more than one tract of land
Package Mortgage
Secures real and personal property
Purchase Money Mortgage
One taken back by a seller from a buyer
Shared Appreciation Mortgage
Lender gets a "share" of equity in property
Growing Equity Mortgage
Payments increase, excess goes to principle, rapid pay off
Term Mortgage
Interest payments + one principle payment, construction loans
Deficiency Judgment
Allowed when funds are insufficient at foreclosure
Redemption
Equitable (before foreclosure)
Statutory (after foreclosure)
Subject to Mortgage
Seller has liability, nLoan Assumption
Buyer assumes loan and is liable, then the seller is liable
Estoppel
Given by mortgagor in assignment; Method of creating an agency relationship in which someone states they are a persons agent and a third party relies on that representation
Offers Contain
- price, deposit, who holds deposit
- date and time of signing and expiration
- property description
- names of offeror s
- who prepared offer
- closing and possession date
Listing Contract Contains
- List price, date
- expiration
- signatures
- commission
- address
- showing directions and subagency restrictions
Injunctive Relief
KREC can go to court to stop an unlicensed agentone for buyer
