PSI Real Estate Definitions Test Questions Solved 100% Correct
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Course
PSI Real Estate
Institution
PSI Real Estate
abstract of title - Answer The condensed history of the recorded ownership of a
particular parcel of real estate, consisting of a summary of the original grant and all
subsequent conveyances and encumbrances affecting the property and a certification
by the abstractor that the history is complet...
PSI Real Estate Definitions Test Questions Solved
100% Correct
abstract of title - Answer The condensed history of the recorded ownership of a
particular parcel of real estate, consisting of a summary of the original grant and all
subsequent conveyances and encumbrances affecting the property and a certification
by the abstractor that the history is complete and accurate.
attorney's opinion of title - Answer An abstract of title that an attorney has examined
and has certified to be, in the attorney's opinion, an accurate statement of the facts
concerning the property's ownership.
agency - Answer The relationship between a principal and an agent wherein the agent is
authorized to represent the principal in certain transactions.
addendum - Answer Any provision added to an existing contract without altering the
content of the original. It must be signed by all parties.
ad valorem tax - Answer A tax levied according to value, generally used to refer to real
estate tax. Also called the general tax.
amendment - Answer A change to the existing content of a contract (i.e., if words or
provisions are added to or deleted from the body of the contract). It must be initialed by
all parties.
assessment equalization factor - Answer A factor (number) by which the assessed value
of a property is multiplied to arrive at a value for the property that is in line with
statewide tax assessments. The ad valorem tax would be based on this adjusted value.
,An equalization factor may be applied to raise or lower assessments in a particular
district or county.
assignment - Answer The transfer in writing of interest in a bond, mortgage, lease, or
other instrument.
acceleration clause - Answer The clause in a mortgage or deed of trust that can be
enforced to make the entire debt due immediately if the borrower defaults on an
installment payment or other obligation.
assumption of mortgage - Answer Acquiring title to property on which there is an
existing mortgage and agreeing to be personally liable for the terms and conditions of
the mortgage, including payments.
alienation clause - Answer The clause in a mortgage or deed of trust stating that the
balance of the secured debt becomes immediately due and payable at the lender's
option if the property is sold by the borrower. In effect, this clause prevents the
borrower from assigning the debt without the lender's approval.
amortized loan - Answer A loan in which the principal, as well as the interest, is payable
in monthly or other periodic installments over the term of the loan.
adjustable-rate mortgage (ARM) - Answer A loan characterized by a fluctuating interest
rate, usually one tied to a bank or savings and loan association cost-of-funds index.
appraisal - Answer An estimate of the quantity, quality, or value of something. The
process through which conclusions of property value are obtained; also refers to the
report that sets forth the process of estimation and conclusion of value.
,Appraiser Independence Requirements (AIR) - Answer Regulations issued by Fannie Mae
that must be followed by appraisers to ensure accurate and objective appraisals.
anticipation - Answer The appraisal principle holding that value can increase or decrease
based on the expectation of some future benefit or detriment produced by the
property.
assemblage - Answer The combining of two or more adjoining lots into one larger tract
to increase their total value.
affiliated business arrangement (ABA) - Answer Practice of one company offering a
package of services to consumers.
accrued depreciation - Answer Loss in a property's value resulting from physical
deterioration, external depreciation, and functional obsolescence.
accrued items - Answer On a closing statement, items of expense that are incurred but
not yet payable, such as interest on a mortgage loan or taxes on real property.
actual eviction - Answer The legal process that results in a tenant's being physically
removed from leased premises.
asbestos - Answer A mineral once used in insulation and other materials that can cause
respiratory diseases.
appreciation - Answer An increase in the worth or value of a property due to economic
or related causes, which may prove to be either temporary or permanent; opposite of
depreciation.
, accelerated cost recovery system (ACRS) - Answer Method for claiming tax deductions
for certain property purchased before 1987 in which it was possible to claim greater
deductions in the early years of ownership, gradually reducing the amount deducted in
each year of useful life.
administrative law - Answer Regulations and codes promulgated by commissions,
boards, and departments. They typically only apply to the regulated individual or entity.
adjusted basis - Answer See basis.
affiliate - Answer A licensed real estate salesperson or associate broker who is affiliated
with a licensed broker.
appurtenance - Answer A right, privilege, or improvement belonging to, and passing
with, the land; "runs with the land."
avulsion - Answer The sudden tearing away of land, as by earthquake, flood, volcanic
action, or the sudden change in the course of a stream.
accretion - Answer The increase or addition of land by the deposit of sand or soil
washed up naturally from a river, lake, or sea.
air rights - Answer The right to use the open space above a property, usually allowing
the surface to be used for another purpose.
associate licensee - Answer A licensed real estate salesperson who is employed by or
associated with the broker to perform brokerage activities on behalf of or for the
broker.
annexation - Answer Process of converting personal property into real property.
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