Florida Real Estate State Exam 200 Questions And Answers Set 02
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Terms in this set
200
1031 tax-deferred exchange
Section 1031 of the Internal Revenue Code allows the owner of real property to sell that property and then reinvest in a "like-kind" property and defer paying any capital gains taxes; strict IRS rules regulate this type of exchange
Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital gains taxes when selling a property, provided the money is rolled into another "like" purchase
Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital gains taxes when selling a property, provided the money is rolled into another "like" purchase
abutting
Land parcels that share a common border
Ex. Many neighbors find that fences make abutting properties more tolerable.
Ex. Many neighbors find that fences make abutting properties more tolerable.
acceleration clause
Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults or fails to meet certain conditions that apply to the loan
Ex. When Wendy stopped making home loan payments, her lender told her she must pay off her entire balance or risk foreclosure.
Ex. When Wendy stopped making home loan payments, her lender told her she must pay off her entire balance or risk foreclosure.
accession
The addition of value to property through labor or the addition of new materials, including an increase in land through natural processes
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of property to his land through accession; also, Chris built a fence on his neighbor's property with no agreement allowing Chris to remove the fence. The neighbor now owns the fence.
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of property to his land through accession; also, Chris built a fence on his neighbor's property with no agreement allowing Chris to remove the fence. The neighbor now owns the fence.
accessory use
An incidental or subordinate use to the primary use of the property
Ex. Andy's military bunker in his back yard constituted an accessory use of the property.
Ex. Andy's military bunker in his back yard constituted an accessory use of the property.
accounting
One of the fiduciary duties, accounting means an agent is accountable for any funds or properties entrusted to the agent. This is a duty that survives termination of an agency agreement
Ex. Cameron accepted an earnest money deposit from his buyer. His duty of accounting means that he must safeguard the funds and handle them according to the agreement with his client and the policies of his firm.
Ex. Cameron accepted an earnest money deposit from his buyer. His duty of accounting means that he must safeguard the funds and handle them according to the agreement with his client and the policies of his firm.
accretion
The gradual growth in the size of a land parcel due to water-deposited sand, silt, or gravel
Ex. Jillian's property grew through accretion when the creek flow created a long sandbar
Ex. Jillian's property grew through accretion when the creek flow created a long sandbar
accrued items
Expenses that have been incurred but aren't due yet, e.g. property taxes
Ex. At closing, accrued items must be accounted for on the settlement statement. If the seller has accrued expenses not yet payable, the amount accrued will be a seller debit and buyer credit.
Ex. At closing, accrued items must be accounted for on the settlement statement. If the seller has accrued expenses not yet payable, the amount accrued will be a seller debit and buyer credit.
acknowledgment
A requirement for deed transfer; a public official must acknowledge, usually by a notary public, the grantor's signature
Ex. Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his signature.
Ex. Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his signature.
acre
A unit of land that is equal to 43,560 square feet
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.