Kentucky Real Estate Terms ||Most Recent Exam Actual
Complete Real Exam Questions And Correct Answers
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Agent
One who acts or has the power to act for another. A fiduciary relationship is
created under the law of agency when a property owner, as the principal,
executes a listing
agreement or management contract authorizing a licensed real estate broker
to be his or her agent.
Air Lots
Designated airspace over a piece of land. An air lot, like surface property, may be
transferred.
Air rights
The right to use the open space above a property, usually allowing the surface
to be used for another purpose.
Alienation
The act of transferring property to another. Alienation may be voluntary, such
as by gift or sale, or involuntary, as through eminent domain or adverse
possession.
,Alienation Clause
The clause in a mortgage or deed of trust that states 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.
Allodial System
A system of land ownership in which land is held free and clear of any rent
or service due to the government; commonly contrasted to the feudal system.
Land is held under the allodial system in the United States.
Amendment
A change to the existing content of a contract. Must be initialed by all parties.
American Land Title Association (Alta) Policy
A title insurance policy that protects the interest in a collateral property of a
mortgage lender who originates a new real estate loan.
Americans with Disabilities Act (ADA)
Act addresses rights of individuals with disabilities in employment and public
accommodations.
Amortized Loan
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.
,Annexation
Process of converting personal property into real property.
Annual Percentage Rate (APR)
The relationship of the total finance charges associated with a loan. This must
be disclosed to borrowers by lenders under the Truth in Lending Act.
Anticipation
The appraisal principle that holds that value can increase or decrease based on
the expectation of some future benefit or detriment produced by the property.
Antitrust Laws
Laws designed to preserve the free enterprise of the open marketplace by
making
illegal certain private conspiracies and combinations formed to minimize
competition.
Most violations of antitrust laws in the real estate business involve either price-
fixing (brokers conspiring to set fixed compensation rates) or allocation of
customers or markets (Brokers agreeing to limit their areas of trade or dealing
to certain areas or properties).
Appraisal
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
An independent person trained to provide an unbiased estimate of value.
Appreciation
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.
Appurtenance
A right, privilege, or improvement belonging to, and passing with, the land;
"runs with the land."
Appurtenant Easement
An easement that is annexed to the ownership of one parcel and allows the
owner the use of the neighbor's land.
Area
A level surface or piece of ground; the size of a surface; the amount of a two-
dimensional object.
Area Preference
People's desire for one area over another, based on a number of factors such as
history, reputation, convenience, scenic beauty, and location.
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam | Just Released!! 2026-2027
Agent
One who acts or has the power to act for another. A fiduciary relationship is
created under the law of agency when a property owner, as the principal,
executes a listing
agreement or management contract authorizing a licensed real estate broker
to be his or her agent.
Air Lots
Designated airspace over a piece of land. An air lot, like surface property, may be
transferred.
Air rights
The right to use the open space above a property, usually allowing the surface
to be used for another purpose.
Alienation
The act of transferring property to another. Alienation may be voluntary, such
as by gift or sale, or involuntary, as through eminent domain or adverse
possession.
,Alienation Clause
The clause in a mortgage or deed of trust that states 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.
Allodial System
A system of land ownership in which land is held free and clear of any rent
or service due to the government; commonly contrasted to the feudal system.
Land is held under the allodial system in the United States.
Amendment
A change to the existing content of a contract. Must be initialed by all parties.
American Land Title Association (Alta) Policy
A title insurance policy that protects the interest in a collateral property of a
mortgage lender who originates a new real estate loan.
Americans with Disabilities Act (ADA)
Act addresses rights of individuals with disabilities in employment and public
accommodations.
Amortized Loan
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.
,Annexation
Process of converting personal property into real property.
Annual Percentage Rate (APR)
The relationship of the total finance charges associated with a loan. This must
be disclosed to borrowers by lenders under the Truth in Lending Act.
Anticipation
The appraisal principle that holds that value can increase or decrease based on
the expectation of some future benefit or detriment produced by the property.
Antitrust Laws
Laws designed to preserve the free enterprise of the open marketplace by
making
illegal certain private conspiracies and combinations formed to minimize
competition.
Most violations of antitrust laws in the real estate business involve either price-
fixing (brokers conspiring to set fixed compensation rates) or allocation of
customers or markets (Brokers agreeing to limit their areas of trade or dealing
to certain areas or properties).
Appraisal
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
An independent person trained to provide an unbiased estimate of value.
Appreciation
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.
Appurtenance
A right, privilege, or improvement belonging to, and passing with, the land;
"runs with the land."
Appurtenant Easement
An easement that is annexed to the ownership of one parcel and allows the
owner the use of the neighbor's land.
Area
A level surface or piece of ground; the size of a surface; the amount of a two-
dimensional object.
Area Preference
People's desire for one area over another, based on a number of factors such as
history, reputation, convenience, scenic beauty, and location.
