Hawaii Real Estate Test Questions and Answers Already Passed

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Hawaii Real Estate Test Questions and Answers Already Passed Abandonment ✔✔the relinquishment of all rights and title to a property with no intention of reclaiming ownership abstract ✔✔Dis... closure statement to initial condo purchasers Abstract of Title ✔✔Condensed history of Titel (all recorded aspects) Abutting Owner ✔✔Land touches highway or public place Accredited Property Manager ✔✔One awarded such a designation by Institute of Real Estate Management (IREM). Acceleration Clause ✔✔Default of mortgage payment leads to immediate full payment of balance Access Rights and Permissions ✔✔Right for owner to enter accession ✔✔Property acquired by joining with another accretion ✔✔Addition to land (natural) acknowledgement ✔✔Formal declaration (notary) acre ✔✔43,560 square feet (7/11) Accrued Depreciation ✔✔Loss of value due to physical change Actual Authority ✔✔Principal to agent Adjoining owner ✔✔One whose property is contiguous; to be next to administrator ✔✔Person appointed to admin estate after death (no will) Ad Valoren ✔✔Tax according to valuation Adverse possession ✔✔Open an hostile 20 years (title taken) affidavit ✔✔a sworn written statement Affirm ✔✔Confirm Agency ✔✔Act of making agent legal rep Agreement of Sale ✔✔Buyer agrees to buy/seller agrees to sell upon conditions met Air Rights ✔✔Space above property Alienation ✔✔Transfer of title to real property allegation ✔✔a formal accusation Alluvion ✔✔Accretion American Land Title Association (ALTA) ✔✔Title insurance American society of appraisers (asa) ✔✔A professional organization of appraisers. Americans with Disabilities Act ✔✔Can't discriminate Amortization ✔✔Installments to pay off debt Anchor tenant ✔✔Major tenant at shopping center that serves to attract customers Annexation ✔✔Joining one thing to another Annual Percentage Rate (APR) ✔✔the cost of credit on a yearly basis, expressed as a percentage Annuity ✔✔a series of equal regular deposits anti-trust laws ✔✔laws that encourage competition in the marketplace appraisal ✔✔estimate, value Appraisal by Capitalization ✔✔Also called income approach; an approach to the appraisal of income-producing real estate that estimates the property's value based on the amount of net income the property will produce over its life Appraisal by Cost Approach ✔✔Adding together all parts of a property separately appraised to form a whole: e.g., value of the land considered as vacant added to the cost of reproduction of the building, less depreciation. Appraisal By Market Comparison ✔✔Appraisal compared to similar properties Appraisal Institute ✔✔A professional organization of appraisers. Appreciation ✔✔an increase in value Appurtenance ✔✔Improvements that stay with property Assemblage ✔✔Putting lots together to form large parcel Assessment ✔✔Charge made by govt or association for improvement Assignee ✔✔Party to whom right is transferred. Assignor ✔✔the party assigning the rights to a third party Attachemt ✔✔The act of taking reality by judicial order and placing it with the custody of the court Attestation ✔✔The act of witnessing a person's signing of an instrument by a notary public. Attorney-in-fact ✔✔the person receiving the power of attorney Avulsion ✔✔A forcible pulling away of a part or structure Balloon Payment ✔✔a final loan payment that is much larger than the regular monthly payments Bargain and Sale Deed ✔✔a deed that contains no covenants but does imply that the grantor owns the property being conveyed Baseline and Meridian ✔✔Imaginary lines used by surveyors to find and describe the location of private or public lands. basis ✔✔The original cost of property plus value of any improvement put in by the seller, minus the depreciation taken by him. Before and After Method ✔✔An appraisal method used in condemnation cases where there has been a partial taking of the property. bequeath ✔✔to give or pass on as an inheritance Blanket Mortgage ✔✔A mortgage secured by two or more properties Block Interest ✔✔Interest computed on the original face amount and which remains the same as the principal declines. Boot ✔✔The payment to satisfy the difference in equities in an exchange, which may be in cash, personal property, note, financing, or anything of agreed upon value. Budget Mortgage ✔✔features loan payments that include principal, interest, taxes and insurance Bureau of Conveyances ✔✔Keeps all records for both regular and land court Buy Down ✔✔Prepayment of portion of interest Capitol Improvement ✔✔Structure built to improve property permanently CC&Rs ✔✔covenants, conditions, and restrictions Certificate of Title ✔✔Issued by a title company, it assures good title as required by a buyer. Chattel ✔✔personal property Closing ✔✔The time after everything is done closing statement ✔✔Sums up all financials for buyer/seller Could on title ✔✔Any claim that may impair title Color of Title ✔✔Title looked good, but isn't codicil ✔✔a supplement to a will Commingling ✔✔Mixing of client with personal money compound interest ✔✔interest earned on both the principal amount and any interest already earned condemnation ✔✔Government acquires ownership of private property for "public use" for "just compensation" over the protest of the property owner Constructive Eviction ✔✔Actions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. Constructive Notice ✔✔Notice given by the public records; legal presumption of notice given by the public records. Also called legal notice. Continuation ✔✔Update of title search Conventional Mortgage ✔✔Refers to home loans other than government loans (VA and FHA). conveyance ✔✔The transfer of title to land from one party to another. COOPERATIVE OWNERSHIP (CO-OP) ✔✔Owns part of building Covenant ✔✔an agreement that's written in deed curtsey ✔✔A husband's interest in the real property of his wife. Debenture ✔✔A note or bond given as evidence of a debt; an unsecured note; that is, there is no collateral security. dedication ✔✔Owner gives right for public use Deed of Trust ✔✔Title transferred to trustee pending on payment of debt Defeasance Clause ✔✔A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan. Defeasible Fee ✔✔Sometimes called a base fee or qualified fee; a fee simple absolute interest in land that is capable of being defeated or terminated upon the happening of a specified event. Deficiency Judgment ✔✔A judgment for the balance of a debt; issued when the difference between the indebtedness sued upon and the sale price obtained at the foreclosure sale is less than the debt. demise ✔✔Conveyance of estate to another depriciation ✔✔Loss of value due to physical, functional, or economic factors Derivative Title ✔✔Any title other than original title. descent ✔✔Ownership transferred by means of inheritance. deterioration ✔✔Loss of value due to wear and tear Devise ✔✔Gift of reality by will Dispossess Proceedings ✔✔Landlord evicts due to break in lease Distraint ✔✔The right of a landlord to seize and hold possessions of a tenant, for rent in arrears, pursuant to a court order. Dominant estate ✔✔Benefited property in an easement appurtenant Dower ✔✔Wife's rights in husband's property Dower consummate ✔✔Dower upon death Dower inchoate ✔✔Dower while husband is alive duress ✔✔(n.) compulsion by threat; forcible confinement Easement ✔✔the right to use land for a specific and limited purpose Easement in Gross ✔✔the right to use land for a specific, limited purpose unrelated to any adjacent parcel Easement by Prescription ✔✔An easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law. Ejectment ✔✔The legal process to have a trespasser or tenant at sufferance removed from property . Emblements ✔✔Refers to crops which require annual planting. encroachment ✔✔One property going into another eminent domain ✔✔Power of a government to take private property for public use. Encumbrance ✔✔Burden attached to title Equity of Redemption ✔✔The right of a borrower in default on a mortgage loan to reclaim the forfeited property prior to the foreclosure sale through payment in full of all debt and associated costs. Escalation Clause ✔✔A clause written into a loan or lease that allows for payments to be increased at specified times by stated amounts. Escheat ✔✔forfeiture of a decedent's property to the state in the absence of heirs Estoppel ✔✔Lease estoppel to pay rent/security deposit External Obsolescence ✔✔loss in value due to outside forces, such as neighborhood deterioration; not curable a/k/a economic obsolescence Federal Home Loan Mortgage Corporation (FHLMC) ✔✔"Freddie Mac" is a wholly owned subsidiary of the Federal Home Loan Bank System, which serves as a secondary mortgage market for savings and loan associations, who are members of the FHLBB; also referred to as The Mortgage Corporation. Federal Housing Administration (FHA) ✔✔insured bank loans used for building and repairing homes Federal National Mortgage Association (FNMA) ✔✔Commonly known as "Fannie Mae", this quasi-private corporation is the largest buyer of existing mortgages in the secondary mortgage market. Fee conditional ✔✔An estate granted absolutely but only so long as a specified event occurs or does not occur. Fee Tail ✔✔"To A and the heirs of his body" Fiduciary ✔✔relating to the governing of property or estate on behalf of others FIRPTA ✔✔Foreign Investments in Real Property Tax Act FIRREA ✔✔Financial Institutions Reform, Recovery, and Enforcement Act of 1989 - requires appraisers to be licensed right of first refusal ✔✔right of a party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement fixture ✔✔Addition that is now part of real estate Gap Loan (Swing Loan, Bridge Loan) ✔✔Any loan filling the deficiency created when the permanent financing and the equity are unable to cover the total cost of a project. General Loan ✔✔Attached to all property owned by debtor Good Funds Act ✔✔Requires Escrow to clear all funds and checks before closing. Government National Mortgage Association (GNMA) ✔✔Commonly known as "Ginnie Mae," this agency of HUD operates in the secondary mortgage market. It is involved with special government financing programs. Graduated Lease ✔✔Provides for specified rent increases at set future dates Graduated Mortgage ✔✔One where monthly payments start low and increase later. An FHA245 is one of these. GRI ✔✔Graduate, Realtors Institute. Gross Income ✔✔the total amount of income from wages before any payroll deductions Gross Lease ✔✔Lessor pays all charges w/property Ground Lease ✔✔Lease of land - to be developed HARPTA: Hawaii Real Property Tax Act ✔✔Non-residents of HI to have taxes withheld (5%) Ground Rent ✔✔Rent charged for the use of land. Holdover Tenant ✔✔Remains in possession of property after expiration of lease term Homestead ✔✔a family home and its surrounding lands homogeneous ✔✔of the same kind for appraisal Hula Mae ✔✔The Hawaii Housing Authority issued tax-exempt revenue bonds to fund a mortgage loan program, offer first-time homebuyers interest rates below conventional rates by way of the Housing and Loan Mortgage Act. Hypothecate ✔✔process of pledging something (house) as security, but retaining possession of it. Improvements ✔✔All real estate except land. Includes buildings, fixtures, fences, curbs, sewers, etc. Impound Account ✔✔Client trust fund/reserve account indefeasible ✔✔not capable of being undone or voided injunction ✔✔An order which legally prevents something inter vivos ✔✔trust creauring during the life of the insured Intestate ✔✔Dies with no will Involuntary Lien ✔✔Taxes, etc Joint Tenancy ✔✔A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. joint venture ✔✔Joining for specific enterprise Laches ✔✔Delay or negligence in asserting one's legal rights. Land Court ✔✔Holds title to land Land Patent ✔✔The legal documents that transferred land ownership from the U.S. Government to individuals. Land Use Ordinance ✔✔County code which sets forth zoning regulations for the county. Latent Defect ✔✔a hidden structural defect that would not be discovered by ordinary inspection legacy ✔✔An inheritance; something handed down from an ancestor or from the past Life Estate ✔✔An interest in land that exists only for the duration of the life of some person, usually the holder of the estate. Liquidated Damages ✔✔An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach. Lis Pendens ✔✔A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court. lock in ✔✔An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost. Marketable Title ✔✔Good or clear title, reasonably free from the risk of litigation over possible defects. Merger of Title ✔✔The absorption of one estate into another. Metes and Bounds ✔✔A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land. Mortgagee ✔✔lender Mortgagor ✔✔borrower NAR ✔✔National Association of Realtors negotiable instrument ✔✔A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment. Net Income ✔✔Income after taxes/expenses; profit Net Lease ✔✔A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs. Net Listing ✔✔The broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states. Nominal Consideration ✔✔token amount identified in a written contract when parties either cannot or do not wish to state the amount precisely Nonconforming use ✔✔A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area. Novation ✔✔Substituting a new obligation for an old one or substituting new parties to an existing obligation. obsolescence ✔✔situation in which older products and processes become out-of-date - lowers property value Open-End Mortgage ✔✔A loan containing a clause which allows the mortgagor to borrow additional money without rewriting the mortgage. Option ✔✔A right which is given for consideration to a party (optionee) by a property owner (optionor) to purchase or lease property within a specified time, at a specified price and terms. An option is irrevocable by the optionee and will not be extinguished by death or insanity of either party. ordinance ✔✔legislation enacted by a town, city, or county board or commission Packaged Mortgage ✔✔use home and individual property together as collateral Parol ✔✔Verbal partition ✔✔Court proceedings by which co-owners of commonly-owned property seek to sever their common ownership Performance Bond ✔✔A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications. Periodic Tenancy ✔✔any lease agreement that automatically renews each period until either party gives notice of termination Piggy-Bank Loan ✔✔One lender originates loan, another joins in as co-operating lender, with neither junior; one property, two lenders. prescription ✔✔An easement or title obtained by possession for a prescribed period Probate ✔✔the official proving of a will Procuring Cause ✔✔The actions by a broker which result in the owner being able to make a sale. promulgate ✔✔to announce; to make known Proprietary Lease ✔✔A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's right as a tenant to an individual apartment. Proprietorship ✔✔A business owned by one person prospectus ✔✔formal proposal Purchase Money Mortgage ✔✔A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing. Quitclaim Deed ✔✔A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest. Quorum ✔✔The minimum number of members who must be present for business to be conducted in Congress Reciprocal Beneficiaries ✔✔By following strict rules, people who couldn't otherwise marry are given certain rights of those who can. Reconveyance Deed ✔✔A deed used by a trustee under a deed of trust to return title to the trustor. Redemption ✔✔Right to reclaim property by paying off debt Redlining ✔✔a practice in which banks refuse to make loans to people living in certain geographic locations Reduction certificate ✔✔lender's statement of how much remains on a debt Reliciton ✔✔is an increase in land due to the [permanent withdrawl] of a body of water such as a river or lake. Remainder Estate ✔✔The ownership interest subsequent to a life estate which, upon the death of the life estate owner, becomes a fee simple absolute interest. Rescission ✔✔A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made. Restrictive convenant ✔✔provision in a deed limiting the use of property and prohibiting certain uses Reverse Annuity Mortgage ✔✔Allows borrowers (62 years or older) to borrow against their equity. Loan is due upon the sale of property or death of owner. Reversion ✔✔a right of possession that returns to the grantor after the expiration of a limited or contingent estate Rider ✔✔An addition, addendum, or endorsement annexed to document Right of election ✔✔The right of a surviving husband or wife to choose to take, under the decedent's state law, his or her statutory share in preference to the provision made in the deceased spouse's will. Riparian Rights ✔✔An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water. Sandwich Lease ✔✔Passing mortgage on to someone else section ✔✔640 acres/1 square mile Seisin ✔✔possession of realty with a freehold claim in it Servient Estate ✔✔The tract of land burdened by an easement. setback ✔✔Distance from the street line to the front of a building. Severalty ✔✔sole ownership Severance Damages ✔✔Damages paid to an owner when his property has been partially taken by condemnation, thus reducing the highest and best use of the remaining land. Short Sale ✔✔A sale of real property for an amount that is less than the balance owed on the mortgage loan, usually due to financial hardship. simple interest ✔✔interest paid on the principal alone Sky Lease ✔✔A lease of space above a piece of real estate. Special Warranty Deed ✔✔A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise." Spot Zoning ✔✔treatment of a single property in a manner inconsistent with the treatment of similar properties in the area statue of limitations ✔✔state laws setting time limit for bringing a lawsuit Subrogation ✔✔The substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt. (Title company) Summary Possession ✔✔When for good reason a landlord may terminate a lease and the tenant must appear and show cause why he should not be evicted. Also called Dispossess Proceeding or Unlawful Detainer. Syndication ✔✔Multiple ownership of an investment. Usually in the form of a limited partnership. Tenancy at sufferance ✔✔A tenancy which is created when one is in wrongful possession of realty, even though the original possession may have been legal. Tenancy at Will ✔✔a tenancy granted by landlords to tenants allowing them to remain in possession without written agreement Tenancy by the Entirety ✔✔special ownership by married couple Tenancy for years ✔✔a lease for a stated, fixed period Tenancy in Common ✔✔Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death. Tenements ✔✔Rights that pass with land upon conveyance Testate ✔✔to die with a valid will Topography ✔✔A description of surface features of land. Torrents system ✔✔legal registration system used to verify ownership of real estate Transfer Certificate of Title (TCT) ✔✔The Land Court registration document assigned to a property. Trust Deed ✔✔An instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who holds it as security for the benefit of the note holder (the lender); also called a deed of trust. Undivided Interest ✔✔ownership by two or more persons that gives each the right to use the entire property Unmarketable Title ✔✔A title containing substantial defects which might cause a prospective purchaser to suffer title litigation and possible loss. upset price ✔✔The minimum price at a foreclosure sale below which the property cannot be sold. Usury ✔✔the practice of lending money at exorbitant rates Variable Rate Mortgage ✔✔A mortgage loan in which the interest rate varies depending on market conditions. Variance ✔✔Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning ordinances. vested interest ✔✔A present right or title to realty, but with possession delayed to some uncertain time in the future. Warranty Deed ✔✔A deed in which the grantor makes formal assurance as to quality of title. Wraparound Mortgage ✔✔larger loan that does not disturb underlying mortgage Blockbusting ✔✔A process by which real estate agents convince white property owners to sell their houses at low prices because of fear that persons of color will soon move into the neighborhood Steering ✔✔Channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry. [Show More]

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