Practical Real Estate Law Questions and Answers Graded A+
Ad valorem Tax - Answers Taxes assessed against real property usually measured by the value of the real
property being taxed
Adverse possession - Answers A method of acquiring original title to property by open, notorious and
hostile possession for a statutory period of time; also referred to as prescription. POACH.
Affidavit - Answers A sworn written statement
Appropriation - Answers in regards to water law doctrine stating that water belongs to the person who
first makes beneficial use of it
Assume - Answers To believe something to be true.
Bankruptcy - Answers Insolvency; a process governed by federal law to help when people cannot or will
not pay their debts.
Bill of sale - Answers A document used to transfer ownership of personal property.
Bona fide purchaser for value - Answers Person who purchases real property in good faith for valuable
consideration without notice of any claim to or interest in the real property by any other party.
Cavet emptor - Answers The legal concept of "let the buyer beware" that was pervasive in the American
business culture prior to the 1960s.
Chain of title - Answers A chronological chain of title transfers, from the earliest time possible to the
present time.
Closing - Answers Consummation of real estate purchase and sale transactions
Condition precedent - Answers condition that must occur before a party to a contract has an obligation
to perform or do their part under the contract
Consideration - Answers -something of legal value given in exchange for a promise.
Constructive notice - Answers a presumption of law that charges a person with notice of all title matters
that can be discovered from an inspection of the real property or an examination of public real property
records
contribution - Answers Right for a co- owner of real property to receive reimbursement from other co-
owner for their share of expenses that are common to the real property
covenant - Answers Promise that a fact is true or that an event will take place
deed - Answers A document that transfers ownership of property from one party to another.
, deed of trust - Answers Legal document that conveys title to real property to a trustee who holds the
title as security for a debt to a lender.
default - Answers Fail to keep a promise
dominant tenement - Answers Parcel of land benefited by an appurtenant easement
due on sale - Answers Clause found in a mortgage that prohibits the sale of the real property described
in the mortgage without the lender's consent. A sale in violation of this provision is a default of the
mortgage.
earnest money - Answers Money paid by the purchaser at the time the real estate contract is being
signed. The money may be used as a down payment on the purchase price or may be retained by the
seller for damages in the event the purchaser defaults on the contract.
easement by necessity - Answers An easement by necessity arises when the seller conveys a tract of
land which has no outlet to a public road except over the remaining estate of the seller, in which case a
right of way is created by implied grant.
easement in gross - Answers Easement granting the owner of the easement the right to use real
property for a particular purpose. Easement doesn't benefit the real property of the owner of the
easement.
eminent domain - Answers Power of a government to take private property for public use
encumbrance - Answers A claim, charge, or liability that attaches to and is binding on real estate.
endorsement - Answers method of transferring ownership of a promissory note or Amendment to a title
insurance policy that modifies existing coverage or adds special coverage to the policy
escrow - Answers agreement that requires the deposit of a document or money into the possession of a
third party to be held by that party till a certain conditions are fulfilled.
execution - Answers signature of a party to a legal document the act of signing the document.
fee simple - Answers Absolute Ownership, of potentially infinite duration. Transferable (devisable,
descendible, alienable) and NO future interest
foreclosure - Answers Procedure by which mortgaged property is sold on default of the mortgagor in
satisfaction of mortgage debt.
general warranty - Answers Deed containing full warranty of title.
grantee index - Answers Alphabetical index of the public real property records that lists the last names
of all people who are grantees of real property interest during a given year within the county.
Ad valorem Tax - Answers Taxes assessed against real property usually measured by the value of the real
property being taxed
Adverse possession - Answers A method of acquiring original title to property by open, notorious and
hostile possession for a statutory period of time; also referred to as prescription. POACH.
Affidavit - Answers A sworn written statement
Appropriation - Answers in regards to water law doctrine stating that water belongs to the person who
first makes beneficial use of it
Assume - Answers To believe something to be true.
Bankruptcy - Answers Insolvency; a process governed by federal law to help when people cannot or will
not pay their debts.
Bill of sale - Answers A document used to transfer ownership of personal property.
Bona fide purchaser for value - Answers Person who purchases real property in good faith for valuable
consideration without notice of any claim to or interest in the real property by any other party.
Cavet emptor - Answers The legal concept of "let the buyer beware" that was pervasive in the American
business culture prior to the 1960s.
Chain of title - Answers A chronological chain of title transfers, from the earliest time possible to the
present time.
Closing - Answers Consummation of real estate purchase and sale transactions
Condition precedent - Answers condition that must occur before a party to a contract has an obligation
to perform or do their part under the contract
Consideration - Answers -something of legal value given in exchange for a promise.
Constructive notice - Answers a presumption of law that charges a person with notice of all title matters
that can be discovered from an inspection of the real property or an examination of public real property
records
contribution - Answers Right for a co- owner of real property to receive reimbursement from other co-
owner for their share of expenses that are common to the real property
covenant - Answers Promise that a fact is true or that an event will take place
deed - Answers A document that transfers ownership of property from one party to another.
, deed of trust - Answers Legal document that conveys title to real property to a trustee who holds the
title as security for a debt to a lender.
default - Answers Fail to keep a promise
dominant tenement - Answers Parcel of land benefited by an appurtenant easement
due on sale - Answers Clause found in a mortgage that prohibits the sale of the real property described
in the mortgage without the lender's consent. A sale in violation of this provision is a default of the
mortgage.
earnest money - Answers Money paid by the purchaser at the time the real estate contract is being
signed. The money may be used as a down payment on the purchase price or may be retained by the
seller for damages in the event the purchaser defaults on the contract.
easement by necessity - Answers An easement by necessity arises when the seller conveys a tract of
land which has no outlet to a public road except over the remaining estate of the seller, in which case a
right of way is created by implied grant.
easement in gross - Answers Easement granting the owner of the easement the right to use real
property for a particular purpose. Easement doesn't benefit the real property of the owner of the
easement.
eminent domain - Answers Power of a government to take private property for public use
encumbrance - Answers A claim, charge, or liability that attaches to and is binding on real estate.
endorsement - Answers method of transferring ownership of a promissory note or Amendment to a title
insurance policy that modifies existing coverage or adds special coverage to the policy
escrow - Answers agreement that requires the deposit of a document or money into the possession of a
third party to be held by that party till a certain conditions are fulfilled.
execution - Answers signature of a party to a legal document the act of signing the document.
fee simple - Answers Absolute Ownership, of potentially infinite duration. Transferable (devisable,
descendible, alienable) and NO future interest
foreclosure - Answers Procedure by which mortgaged property is sold on default of the mortgagor in
satisfaction of mortgage debt.
general warranty - Answers Deed containing full warranty of title.
grantee index - Answers Alphabetical index of the public real property records that lists the last names
of all people who are grantees of real property interest during a given year within the county.
