17861108
| Question | Answer |
| The act or process of taking private property for public use, through the government's power of eminent domain. | Condemnation 1 |
| Item of personal property that has been attached to or closely associated with real property to become part of the real property. | Fixture 1 |
| The reversion of property to the state after a person dies without leaving a valid will or any heirs. | Escheat 1 |
| A tax levied only against properties that benefit from a public improvement. | Special Assessment 1 |
| The right of government bodies to take private real estate for public use upon payment of just compensation to the owner. | Eminent Domain |
| A concept for property taxes that means "according to value" | Ad Valorem |
| The location of a parcel of real property. | Situs |
| An instrument in writing that transfers ownership of tangible personal property. | Bill of Sale |
| An item of personal property that is annexed to leased property and is necessary to a business; removed at lease termination. | Trade Fixture |
| The right of the government to pass legislation protecting the safety, health, and welfare of the public. | Police Power |
| Attaching personal property to land so that the law views it as part of the real property. | Annexation |
| The physical land itself to the center of the earth and the sky above, anything permanently affixed, and the associated rights. | Real Property |
| A person who dies without making a will, causing his or her estate to pass on by the laws of descent and distribution. | Intestate |
| For property tax purposes, a percentage of the market value. | Assessed Value |
| Farm crops that require annual cultivation. | Emblements |
| A concept of land ownership that allows private individuals to own land. | Allodial System |
| Owing payment on things for which one has the use but has not yet paid for, such as property taxes. | Arrears |
| Court ordered seizure of a defendant's property to satisfy a judgement. | Attachment |
| A tract of land between two differently zones areas. | Buffer Zone |
| Personal Property. | Chattel |
| A special purpose district that has the ability to levy long term bonds to finance public infrastructure. | Community Facilities District |
| A system whereby title to property passes by operation of law to heirs of one who dies in owning property without a will. | Law of Descent |
| The power of government bodies to take real estate property for public use. | Eminent Domain |
| The value of land and improvements as the basis for determining the taxable value of a property tax assessment. | Full Cash Value |
| A legal system under which real property was owned by a King. | Feudal System |
| An old rule continues to apply to some existing situations where a new rule will apply. | Grandfathered |
| The number used to compute property taxes for the maintenance of school districts. | Limited Property Value |
| Each piece of land and each building and each house is on a different piece of real estate. | Non-Homogeneity |
| The distance between a lot's boundary lines and improvements. | Setback |
| A process through which fixtures are detached from the land and revert back to personal property. | Severence |
| A permit that allows the holder to build a structure that legally violates the zoning ordinance. | Variance |
| The legal term for attaching or affixing personal property to real property. | Annexation |
| Used to determine what is or is not a fixture. | MARIA Method of Attachment Agreement Relationship Intent Adaptability |
| Property Rights that go with ownership of real property. | Bundle of Rights |
| Personal Property is conveyed with a ______ | Bill of Sale |
| A document that is used to transfer real property is a ____ | Deed. |
| Personal Property. | Chattel 2 |
| An interest, such as a leasehold, in an item of immoveable property, such as land or a building. | Chattel Real |
| The fractional interest of a husband in the estate of his wife at the time of her death; illegal in Arizona. | Curtesy |
| The transfer of an estate to another for years, for life, at will, or by lease. | Demise |
| Real property transferred in a will. | Devise |
| The fractional interest of a wife in the estate of her husband at the time of his death. Not legal in Arizona. | Dower |
| A person receiving a grant of real property. | Grantee |
| A person transferring title to real property. | Grantor |
| Someone who remains in the property after the lease has expired. | Holdover Tenant |
| Primary residence, the equity in which is usually exempt from attachment by creditors to a statutorily preset amount. | Homestead |
| Incomplete, as an interest in property, such as a lien that has been filed but not enforced. | Inchoate |
| A tenant. | Lessee |
| A landlord. | Lessor |
| A freehold estate that is not inheritable, the duration of which is limited by the life of the measuring life. | Life Estate |
| A life estate that passes to another named person upon the death of the measuring life. | Life Estate in Remainder |
| A life estate that reverts back to the grantor upon the death of the measuring life. | Life Estate in Reversion |
| A life estate "for the life of another" where the measuring life is someone other than the life tenant. | Life Estate in Pur Autre Vie |
| Someone who owns a life estate; the person entitled to possession of the property during the measuring life. | Life tenant |
| The judicial process of determining who are the rightful heirs. | Probate |
| A third party who has a future interest in property upon the termination of a life estate. | Remainderman |
| A future interest that becomes possessory when a temporary estate terminates, and that is held by the grantor. | Reversion |
| The characteristic of a joint tenancy by which the surviving joint tenant automatically takes title upon a joint tenant's death. | Right of Survivorship |
| Reduction in value caused by destruction, damage of property by someone in possession who holds less than a fee estate. | Waste 2 |
| The gradual addition of land by natural causes, such as shoreline movements. | Accretion 3 |
| A document signer's declaration to an authorized official that he or she is signing voluntarily. | Acknowledgement |
| Title to property obtained through open, notorious, hostile, and uninterrupted possession. | Adverse Possession |
| The transfer of ownership an interest in property from one person to another, by any means. | Alienation |
| To leave or transfer property to someone else via a will. | Bequeath |
| An addition to a will that does not revoke the entire will. | Codicil |
| Notice given by publication in a newspaper, recording, or other method. | Constructive Notice |
| Public records that show the transfer of title of real property from one person to the next. | Chain of Title |
| Valid encumbrance affecting title in land, such as a judgment or lien. | Cloud on the Title |
| A person who has died. | Decedent |
| A written instrument transferring the grantor's ownership of or interest in real property. | Deed |
| Real property transferred in a will. | Devise |
| A gradual loss of soil due to natural causes, such as the movement of wind or water. | Erosion |
| Grantor warrants the title against any and all defects that might have arisen before or during his period of ownership. | General Warranty Deed |
| A person receiving a grant of real property. | Grantee |
| A person who conveys his or her interest in real property. | Grantor |
| A clause in a deed that describes the type of estate granted, known as the "have and to hold" clause. | Habendum Clause |
| The state of dying without making a will. | Intestate |
| Transfer of title to property during the owner's lifetime without the owner's consent. | Involuntary Alienation |
| The disposition of money or property by a will. | Legacy |
| An oral will made on a persons deathbed; can only transfer personal property, not real property. Not legal in Arizona. | Nuncupative Will |
| The legal process of determining the validity of a will, paying the debts of the deceased and distributing the remaining assets. | Probate |
| Grants any interest in property that the grantor may have. | Quitclaim Deed |
| The state of dying and having left a will. | Testate |
| Someone who has made a will or given a legacy. | Testator |
| The right to or ownership of land. (concept) | Title |
| Grantor warrants title only against defects arising during the time he owned the property. | Special Warranty Deed |
| Title to property is transferred through sale, gift, dedication, or grant. | Voluntary Alienation |
| A deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premesis against lawful claims of 3rd parties. | Warranty Deed |
| A person's legally binding instructions regarding how his estate should be disposed of after he dies. | Will 3 |
| A mortgage loan that has an interest rate on the note that periodically adjust based on an index that reflects the cost to the lender. 4 | Adjustable Rate Mortgage (ARM) 4 |
| A loan clause allowing the lender to demand full payment when the borrower defaults on the terms of the loan. | Acceleration Clause |
| A loan clause allowing the lender to demand full payment when the borrower transfers ownership of the property. | Alienation Clause |
| Payment of debt in regular, periodic installments of principal and interest (as opposed to interest only) | Amortization |
| Something that belongs to property and passes with property, but need not be attached to it. | Appurtenance |
| A lump sum payment that is due at the end of a note term, the note used paid only part of the principal and Interest. | Balloon Payment |
| A single loan where two or more different parcels of property are offered as security. | Blanket Mortgage |
| A loan where payments include principal and interest plus 1/2 of the year's property taxes and hazard insurance premiums. | Budget Mortgage |
| A declaration of covenants, conditions, and restrictions. | CC&Rs |
| Property pledged as security for a debt. | Collateral |
| The interest a creditor may acquire in the debtor's property to ensure the debt will be paid. | Collateral Lien Document |
| A three-party security instrument used to finance the purchase of real property. | Deed of Trust |
| Requirement for a lender to give a borrower a release of the lien once the loan is repaid. | Defeasance Clause |
| A person with easement rights on another's property. | Dominant Tenant |
| Property that receives the benefit of an appurtenant. | Dominant Tenement |
| The non-ownership right acquired by a person to use the land of another for a specific purpose. | Easement |
| A legal instrument used by a lender so that so that beyond a certain date the loan balance is correct and no defense to challenge it. | Estoppel Certificate |
| A payment structure that allows the borrower to make smaller payments in the early years with payments increasing on a scheduled basis. | Graduated Payment Mortgage |
| The pledging of the property to be the security for a Ioan without giving up possession of it. | Hypothecation |
| Incomplete, as an interest in property that has been filed but not yet enforced. | Inchoate |
| A nonpossessory, financial interest in property, giving the holder the right to foreclose. | Lien |
| A person who has a lein against his property; a borrower. | Lienee |
| The persion or entity that owns a lein; the lender. | Lienor |
| A recorded document giving constructive notice of a pending legal action against a specific piece of property. | Lis Pendens |
| A specific lien claimed by someone who performed work on the property (ie. construction). | Mechanic's Lien |
| An interest in real property that lacks the usual rights and priviledges enjoyed by an owner. | Naked Title |
| An increase in the balance of a loan when payments are not enough to cover the interest. | Negative Amortization |
| A written, legally binding promise to repay a debt. | Promissory Note |
| Someone who is burdened by easement. | Servient Tenant |
| Property that is burdened by an easement. | Servient Tenement |
| A recorded legal writ giving the court custody of real property until a creditor's suit is settled. | Writ of Attachment |
| A court order directing a sheriff to seize and sell a defendant 's property to satisfy a judgment. | Writ of Execution 4 |
| Allows the lender to call the note all due and payable if the borrower breaches the terms. | Acceleration Clause 5 |
| A carryback document between buyer and seller. The seller does not give the deed to buyer until paid in full. | Agreement for Sale |
| One who receives the benefit; refers to the lender in a trust deed. | Beneficiary |
| An unexcused failure to perform according to the terms of a contract. | Breach |
| Property lien in which a seller assumes the lender's role and carries the unpaid balance of the purchase price as a loan to buyer. | Carryback |
| A document that the highest bidder receives at a mortgage foreclosure sale. | Certificate of Sale |
| Property pledged as security for a debt. | Collateral |
| The interest that a creditor may acquire in the debtor's property to ensure that a debt will be paid. | Collateral Lien Document |
| A deed that a trustee signs and gives the trustor (borrower) to convey title back to the trustor when the load has been paid. | Deed of Reconveyance |
| A three-party security instrument that conveys naked title to a trustee. | Deed of trust |
| A personal judgment against a borrower if a creditor does not receive the amount of the lien plus foreclosure costs. | Deficiency Judgment |
| The right of a debtor to redeem the property from foreclosure proceedings prior to a confirmation of sale. | Equitable Right of Redemption |
| A legally binding promise to refrain from doing a particular act. | Forbearance |
| A procedure through which property is sold to satisfy a debt. | Foreclosure |
| The pledging of the property to be the security for a Ioan without giving up possession of it. | Hypothecation |
| A lawsuit filed by a lender to foreclose on a mortgage or other lien; a court-ordered sale of property to repay the debt. | Judicial Foreclosure |
| Any lien that is in lower priority than another lien. | Junior Lien |
| A concept of financing where loans are regarded as liens; title remains with the borrower as long as no default occurs. | Lien Theory |
| A security instrument that creates a voluntary lien on real property to secure repayment of a debt. | Mortgage |
| The lender. | Mortgagee |
| The borrower. | Mortgagor |
| An interest in real property that lacks the usual rights and priviledges enjoyed by an owner. | Naked Title |
| Foreclosure by a trustee under the power of sale clause without the involvement of a court. | Non-Judicial Foreclosure |
| A clause that allows the trustee to sell trust deed property without court supervision, when terms of the trust deed are not kept. | Power of Sale |
| Lenders who originate loans directly to borrowers. | Primary Market |
| The interest rate determined by individual banks. | Prime Rate |
| A written, legally binding promise to repay a debt. | Promissory Note |
| A document that a creditor gives to a borrower upon the full repayment of a loan, releasing the mortgage lien. | Satisfaction of Mortgage |
| Private investors and government agencies that buy and sell mortgages. | Secondary Market |
| A deed issued by the court to a property purchaser from a foreclosure sale or sale under judgement. | Sheriff's Deed |
| Allows a debtor to redeem property for a set period of time after a foreclosure sale, regardless of the timing of other events. | Statutory Right of Redemption |
| The financing concept under which a mortgagee (or beneficiary) holds naked title to the property until the loan is paid. | Title Theory |
| An independent third party that holds the trust instrument in a deed of trust for the benefit of the lender. | Trustee |
| The borrower under a deed of trust. | Trustor |
| The buyer in an agreement for sale or land contract. | Vendee |
| The seller in an agreement for sale or land contract. | Vendor |
| A property acquired by a lending institution through foreclosure. | REO |
| Title limited to carrying out the power of sale (naked title). | Bare Legal Title |
| The purchase price of a property (basis) minus accumulative depreciation, plus acquisition costs, plus capital improvements. | Adjusted Basis 6 |
| Sales price minus costs of sale (commission and closing costs). | Adjusted Sales Price |
| An increase in the value of property due to a positive improvement in the area or the elimination of negative factors. | Appreciation |
| A buyer's initial cost for a real estate purchase for determining gain, loss, or depreciation on the sale of the asset. | Basis |
| Taxable, not like-kind property used in an exchange, such as cash or other personal property. | Boot |
| A legal entity owned by its shareholders that has limited liability. The Corp is taxed as an entity as well as dividends received by shareholders. | C Corporation |
| The gain from the sale of a capital asset, i.e., one held for investment purposes. | Capital Gains |
| The net spendable income from an investment after operating and fixed expenses including debt service. | Cash Flow |
| Cash flow divided by the down payment and settlement costs, expressed as a percentage. | Cash on Cash Return |
| A loss in value as an accounting procedure for use as a tax deduction for income tax purposes. | Depreciation |
| A risk management technique that mixes a wide variety of investments within a portfolio. | Diversification |
| The amount of an owner's interest in a parcel of real estate which is the fair market value in excess of the mortgaged indebtedness. | Equity |
| The corresponding reduction of principal and growth of equity on a mortgage through amortized payments. | Equity Build Up |
| Because real estate may not be easily converted into cash, real estate is more non liquid. | Frozen Asset |
| A saleable, intangible asset arising from a good business reputation; a capital asset but not a depreciable asset for tax purposes. | Goodwill |
| An investment, usually long term, that keeps pace with inflation. | Inflation Hedge |
| Two or more individuals or companies joining together for one project, but not as an ongoing business. | Joint venture |
| The use of borrowed money to finance an investment. | Leverage |
| The ability to convert an asset into cash quickly without the loss of principal. | Liquidity |
| The investor's percentage yield based on a property's income production. | Rate of Return |
| Joint venture with at least 100 investors through which real estate is purchased. | Real Estate Investment Trust (REIT) |
| The possibility that an investment will decrease in value or not generate enough income to show a profit. | Risk |
| An association of people or entities formed to operate an investment business; not a recognized legal entity. | Syndicate |
| Allows a taxpayer to sell an investment property and purchase another investment property to defer taxes on capital gains. | Tax Deferred Exchange |
| A phrase commonly used to describe an investment sheltered by deductions for cost recovery, taxes, and interest. | Tax Shelter |
| A legal form that a creditor files with the state that it has an interest in the personal property of a debtor. | UCC-1 Financing Statement |
| A standard set of business laws that regulate financial contracts. | Uniform Commercial Code (UCC) |
| The relationship between the cost of borrowing and the total amount financed, represented as a percentage. | Annual percentage rate 7 |
| A loan made by a lender with real estate as security for the loan that the government neither guarantees nor insures. | Conventional Loan |
| The relationship of a borrower's total monthly debt obligations to income, expressed as a percentage. | Debt Ratio |
| Failure to fulfill an obligation, duty, or promise. | Default |
| A fee charged by a lender to increase the yield on a lower-than-market interest rate loan. | Discount Point |
| A mortgage loan insured by the Federal Housing Administration that protects the lender against losses from default. | FHA Insured Loan |
| A credit scoring system where a number from 300-850 is assigned to a consumer's credit history. | FICO Score |
| The relationship of a borrower's total monthly housing expense to gross monthly income, expressed as a percentage. | Income Ratio |
| A right or share in something; A charge that a borrower pays to a lender for the use of the lender's money. | Interest |
| A required disclosure including an estimate of closing costs, loan terms, and the costs associated with the loan, including APR. | Loan Estimate |
| The amount of money borrowed, compared to the value (or price, whichever is less) of the property, expressed as a percentage. | Loan to Value (LTV) |
| The fee charged for FHA mortgage insurance coverage, due at loan consummation and monthly thereafter. | Mortgage Insurance Premium |
| The person who gives authority to an agent, thus creating a fiduciary relationship. | Principal |
| Coverage offered by private companies to protect a lender in the event of borrower default on a loan. | Private Mortgage Insurance (PMI) 7 |
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