©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
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Hondros Real Estate National Crammer
Exam Study Guide
Abate - Answer✔️✔️-Reduce, decrease. Usually refers to decrease in
assessed value of ad valorem tax.
Abstract of title - Answer✔️✔️-Summary in chronological order of the
essential provision of every recorded document pertaining to a particular
parcel of land, eg., liens ,encumbrances, chain of title, transfers. An abstract
of title does not disclose encroachments, forgeries, and the like and does
not, therefore, guarantee clear title.
Accelerated Depreciation - Answer✔️✔️-A general term including any
method of depreciation that is greater than straight-line depreciation.
Acceleration Clause - Answer✔️✔️-A provision of a promissory note or
mortgage where, upon the happening of a certain event, e.g., default in
payment, the entire amount of the unpaid loan balance becomes due.
Accretion - Answer✔️✔️-The addition of soil (known as alluvium) to
property by the gradual operation of natural causes (common where
properties have frontage on oceans or rivers). This added land becomes the
property of the owner on whose land it is deposited.
Acknowledgment - Answer✔️✔️-A written declaration by a person
executing an instrument, given before an officer authorized to give an oath
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(usually a notary public), stating that the execution is of his own volition,
e.g., grantor of a deed.
Acre - Answer✔️✔️-A measure of land which is 43,560 square feet.
Actual Notice - Answer✔️✔️-Things you know because of your own senses:
eyes, ears, etc. You have actually seen someone living on the property. If
you are buying the property, you need to find out why the occupants are
living there.
Adjustable Rate Mortgage (ARM) - Answer✔️✔️-A type of financing
available for real estate mortgages on property through which the Annual
Percentage Rate charged will differ from year to year according to terms
specified by the lender and authorized by the Federal Reserve banking
system.
Ad Valorem Tax - Answer✔️✔️-Latin, "according to valuation." A tax to be
paid based upon a value set by the authorities, e.g., real property tax.
Adverse Possession - Answer✔️✔️-The open, notorious, hostile, and
uninterrupted possession of the property of another under a claim or color
of title of 21 years after which time the adverse possessor may obtain title
to the property.
Affidavit of Title - Answer✔️✔️-A sworn statement that title is good.
Agency - Answer✔️✔️-A relationship between one person (principal) and
another (agent) where the agent is given the right to act on behalf of the
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principal in business dealings. Agency creates a fiduciary duty on the part
of the agent to act in good faith and loyalty toward the principal.
Agency Disclosure - Answer✔️✔️-The disclosure of the relationship in
which one party (agent) acts for or represents another (principal) under the
authority of the latter.
Agent - Answer✔️✔️-One who acts, or has the power to act, for another.
Alienation - Answer✔️✔️-An English term referring to transfer of property
from one person to another.
Alienation Clause - Answer✔️✔️-A clause used in a mortgage allowing the
lender to call for the full payment of the mortgage (foreclosure) because the
owner transferred ownership of the property. This is a type of acceleration
clause because it accelerates the time when the entire loan amount is due.
Very often referred to as a "Due-on-Sale" clause.
Amenities - Answer✔️✔️-Features, both tangible and intangible, that
enhance the desirability of real estate. For example, a marble fireplace,
desirable location, preferred floor plan, or anything with sentimental value
to the buyer may be considered an amenity.
Amortization - Answer✔️✔️-Payment of debt in regular, periodic
installments of principal and interest (as opposed to interest-only
payments).
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