Real Estate Uniform Final Exam

Lien

A financial claim or money owed that is secured against a property.

Two tenements of an easement appurtenant

Dominant tenement and servient tenement.

PETE (Government Powers)

Police power, Eminent domain, Taxation, and Escheat.

Legal description method used in Guam

Lot and Block Method.

Datum

A horizontal plane or point of reference used for measuring vertical elevations in airspace subdivision.

Benchmarks

Permanent reference marks or monuments established for use by surveyors in determining elevations.

Deed providing greatest protection

General Warranty Deed.

Guam public real estate records agency

Department of Land Management.

Closing

The point in time when property ownership is transferred in exchange for payment of the purchase price.

Percentage lease

A lease agreement where tenant pays a base rent plus a percentage of gross income.

Gross lease

A lease where the tenant pays a fixed rent and the landlord pays operating expenses like maintenance.

Corrective maintenance

Repair work aimed at fixing broken or damaged amenities and equipment.

Target year for Lead-Based Paint Disclosure

Housing built prior to $1978$.

Capital gains

Taxable profit earned from selling an investment property above its adjusted basis.

Net listing

A listing agreement where the seller specifies a net profit amount and the broker keeps any sale excess.

Lis pendens

A recorded public notice warning that litigation is pending regarding title to a property.

Commingling

The illegal practice of mixing client or trust funds with a broker's personal or operating account.

Conversion

The illegal act of using client trust funds for personal or firm expenses.

Broker trust account

A separate bank account used exclusively for holding funds received on behalf of clients.

Uniqueness (Nonhomogeneity)

The physical characteristic of land stating that no two parcels are identical.

Property manager

A professional hired to manage daily operations of rental property to maximize owner return.

Littoral rights

Property owner rights adjacent to non-flowing bodies of water up to the average high-water mark.

Indestructibility

The physical characteristic stating that land itself cannot be destroyed.

Right of exclusion

The stick in the bundle of rights permitting an owner to prohibit others from entering the property.

Steering

The illegal practice of directing home seekers toward or away from neighborhoods based on protected classes.

Senior housing exemption age

Housing intended solely for occupants aged $62$ or older (or $55$ or older with $80\%$ occupancy).

Blockbusting

Inducing homeowners to sell by claiming members of a protected class are moving into the area.

Fee simple subject to a condition subsequent

A fee simple estate with a condition where the grantor retains a right of reentry if breached.

Fee simple determinable

A defeasible fee estate that automatically terminates upon the occurrence of a specified event.

Eminent domain

The government power to take private property for public use upon payment of just compensation.

Easement in gross

An easement granted directly to an individual or utility entity rather than attached to adjacent land.

Horizontal property acts

State legislation governing condominium ownership and development.

Proprietary lease

A lease held by cooperative shareholders granting rights to occupy a specific unit.

Four unities of joint tenancy

Possession, Interest, Time, and Title (PITT).

Right of survivorship

The joint tenancy feature where a deceased co-owner's interest automatically passes to surviving joint tenants.

Acknowledgment

A formal declaration made before a notary public verifying that a signature is authentic and voluntary.

Quitclaim deed

A deed providing no covenants or warranties, resulting in the least liability for the grantor.

Delivery and acceptance

The requirement necessary for title to legally transfer via deed.

Nuncupative will

An oral will declared before witnesses during a final illness.

Codicil

A written modification or addendum to an existing will.

Involuntary alienation

The transfer of title without the owner's consent (e.g., eminent domain, foreclosure, escheat).

Constructive notice

Legal notice given to the public by recording legal instruments in public land records.

Abstract of title

A written summary of all recorded conveyances, liens, and legal actions affecting a property title.

Abstractor

The professional who searches public records and compiles an abstract of title.

Lender's title policy

Title insurance protecting the mortgagee's financial interest in a property.

Marketable Title Act

Legislation limiting the historical timeframe required for title record searches.

Real estate sales associate

A licensee who performs real estate activities on behalf of a supervising broker.

Special agent

An agent authorized to perform a single specific act or transaction on behalf of a principal.

Fraudulent misrepresentation

Intentional misstatement or concealment of a material fact to mislead another party.

Fiduciary duty of loyalty

An agent's legal obligation to prioritize the principal's interests and avoid conflicts of interest.

Dual agency

Representing both buyer and seller in the same real estate transaction.

Open listing

A non-exclusive agreement where the seller retains the right to sell independently without paying commission.

Exclusive agency listing

A listing contract where the broker gets paid unless the seller personally produces the buyer.

Unilateral contract

An agreement in which only one party makes a binding promise (e.g., an option contract).

Counteroffer

A rejection of an original offer combined with a new proposed offer.

Revocation

The withdrawal of an offer prior to acceptance.

Executory contract

A contract where one or more agreed-upon obligations remain to be fulfilled.

Voidable contract

A contract that can be legally rescinded or affirmed by one of the parties.

Novation

The substitution of a new contract or party, releasing the original party from obligation.

Bilateral contract

A contract created by an exchange of mutual binding promises.

Specific performance

A lawsuit asking the court to order a party to complete their exact obligation under a contract.

Writ of execution

A court directive ordering a law officer to seize and sell a debtor's assets to satisfy a debt.

Federal tax lien

A general, statutory, involuntary lien against all property owned by a delinquent taxpayer.

Equitable right of redemption

The right of a defaulted borrower to redeem property prior to foreclosure sale by paying off debt.

Promissory note

A written financial agreement serving as evidence of debt and promise to repay.

Acceleration clause

A loan clause enabling the lender to demand immediate full payment upon borrower default.

Deficiency judgment

A court judgment against a borrower when foreclosure proceeds fail to cover the full debt.

Usury

The practice of charging interest rates exceeding the maximum rate allowed by law.

Mortgagor

The borrower in a mortgage transaction who pledges property as security.

Package loan

A single mortgage financing both real property and personal property.

Conventional debt-to-income limit

Total monthly expenses and debt should not exceed $36\%$ of gross monthly income.

Private Mortgage Insurance (PMI)

Insurance covering lender risk on the top $20\%$ to $30\%$ of a conventional mortgage in default.

Regulation Z

Federal law requiring full disclosure of lending costs on consumer residential credit.

Freddie Mac

A secondary mortgage corporation that purchases conventional loans and sets standards alongside Fannie Mae.

Blanket loan

A single loan covering multiple parcels of real estate with partial release terms.

Sales comparison approach

Appraisal method comparing recent sales of similar properties in the neighborhood.

Characteristics of value (DUST)

Demand, Utility, Scarcity, and Transferability.

Functional obsolescence

A loss in property value resulting from outdated physical design features.

Highest and best use

The most profitable and legally allowable physical use of a property.

Broker Price Opinion (BPO)

A broker's written evaluation of property value based on comparable market analysis.

Principle of regression

Value decline when a superior home is built among lower-valued neighborhood homes.

Principle of progression

Value increase when a modest home is surrounded by higher-valued neighborhood homes.