Term
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Definition
| The interests, benefits, and rights that are automatically included in the ownership of land and real estate |
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Term
| Doctrine of Prior Appropriation |
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Definition
| The right to use any water is controlled by the state rather than the landowner bordering the water |
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Term
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Definition
| The study of changes that occur in large groups of people over a period of time |
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Term
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Definition
| Sudden removal of land by forces of nature, such as changes in the flow of a river that forms an oxbow caused by flood, tornado, hurricane, volcano, or earthquake |
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Term
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Definition
| A right or a privilege associated with the property, but not necessarily part of it |
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Term
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Definition
| The right to or ownership of the land represented by the owner's bundle of rights; evidence of that ownership by a deed |
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Term
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Definition
| Business of bringing people together in a real estate transaction |
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Term
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Definition
| Process of estimating a property's market value based on established methods and a professional opinion |
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Term
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Definition
| Business of providing the funds to make real estate transactions possible |
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Term
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Definition
| Splitting of a single property into smaller parcels |
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Term
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Definition
| Involves construction or improvements on the land |
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Term
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Definition
| The earth's surface extending below the surface to the center of the earth and above to infinity |
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Term
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Definition
| Land at, above, and below the earth's surface and all thing permanently attached to the land |
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Term
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Definition
| To use the property in any legal manner |
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Term
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Definition
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Term
|
Definition
| To keep others from entering or using the property |
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Term
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Definition
| No two parcels of land are exactly alike because each occupies its own unique geographic location |
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Term
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Definition
| (facilitator, intermediary, transactional broker, transactional coordinator, or contract broker) middleman between a buer and seller (or landlord or tenant) who assists one or both parties with the transaction without representing either party's interests |
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Term
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Definition
| A licensee acted or sounded like an agent and the consumer relied on those statements |
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Term
| An agency relationship may be based on an express agency or an implied agency |
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Definition
| How is a legal agency relationship created? |
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Term
| Accidental undisclosed dual agency |
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Definition
| Created when a real estate brokerage company has: an express agency with a buyer and an implied agency with a seller or an express agency with a seller and an implied agency with a buyer |
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Term
| Agency coupled with an interest |
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Definition
| an agency relationship that is created when the agent is given an interest in the subject of the agency. |
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Term
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Definition
| a person authorized to do anything the principal could do personally |
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Term
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Definition
| may represent the client in a broad range of matters related to a particular business or activity |
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Term
| Special Agent or limited agent |
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Definition
| authorized to represent the principal in one specific act or business transaction only under detailed instruction |
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Term
|
Definition
| a person authorized by the broker to act as the agent of a specific client |
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Term
|
Definition
| Written agreements that create an agency relationship |
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Term
|
Definition
| Occurs when the agent represents only one party in any single transaction |
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Term
| Honesty, Fairness, Accounting, Reasonable Care and Diligence |
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Definition
| What are the responsibilities to a customer? |
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Term
|
Definition
| The principal is accountable for the agent or subagent's actions and statements during the term of the agency |
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Term
|
Definition
| Negligent or intentional civil wrong not arising out of a contract or statute |
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Term
| Reasonable Care and Diligence |
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Definition
| Obey laws and regulations applicable to real estate transactions |
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Term
|
Definition
| Honor licensing laws requiring care for monies belonging to others |
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Term
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Definition
| Agent must timely disclose agency representation and explain the difference between customer and client so customers can protect their interests |
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Term
|
Definition
| No fraud or misrepresentation of material facts |
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Term
COLD AC
Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality |
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Definition
| Fiduciary duties the broker must perform |
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Term
|
Definition
| A legal and ethical relationship of trust between two or more parties |
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Term
|
Definition
| The laws, rules, and regulations enacted by legislatures and other governing bodies |
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Term
|
Definition
| The rules of society established by tradition and court decisions |
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Term
|
Definition
| The fiduciary relationship between the principal and the agent |
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Term
|
Definition
| One who is a third party to an agency relationship |
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Term
|
Definition
| One who hires an agent to act on his/her behalf |
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Term
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Definition
| Defines the rights and duties of the principal and the agent |
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Term
| Personal Property (chattels) |
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Definition
| Property not fitting the definition of real property; it is movable |
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Term
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Definition
| Dwellings that are not constructed on site but are built off-site and trucked to where they are installed or assembled |
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Term
|
Definition
| The action that turns real property into personal property |
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Term
|
Definition
| Adding to something. Personal property can become real property by being joined to it. |
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Term
|
Definition
| The overall test used to determine if an item is a fixture, real property, or personal property |
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Term
1. Method of Annexation
2. Adaptation
3. Agreement |
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Definition
What are the three basic tests to determine intent?
1. Can it be removed without causing damage?
2. Is it being used as real or personal property?
3. Have the parties agreed? |
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Term
|
Definition
| New deposits of soil as a result of accretion |
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Term
|
Definition
| Deposition of land caused by receding waters such as the mud left behind when an area is flooded |
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Term
|
Definition
| The right to use the surface of the earth |
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Term
| Subsurface Rights or Mineral Rights |
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Definition
| The rights to the natural resources lying below the earth's surface |
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Term
|
Definition
| Common-law rights of land owners next to a river, stream, or similar body of water |
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Term
|
Definition
| A body of water unsuitable for commercial traffic |
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Term
|
Definition
| Rights of owners who's land borders commercially navigable lakes, seas, and oceans |
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Term
|
Definition
| The gradual addition of land by the forces of nature; refers to the process not the soil |
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Term
|
Definition
| Gradual loss of land by natural forces of nature such as water, wind, or ice |
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Term
|
Definition
| Personal property permanently attached to land or a building, so by law, it becomes part of the real property |
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Term
|
Definition
| Removable fixtures placed by a tenant for business purposes |
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Term
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Definition
| The targeted marketing of specific demographic populations |
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Term
| Uniqueness and Immobility |
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Definition
| Two characteristics of real estate that govern the way the market reacts to supply and demand |
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Term
|
Definition
| To sell, will, transfer, dispose of or encumber |
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Term
DEEP C
Disposition, Enjoyment, Exclusion, Possession, Control |
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Definition
| What makes up the Bundle of Legal Rights? |
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Term
|
Definition
| Any artificial thing attached to the land |
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Term
|
Definition
| Available to practitioners and consumers |
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Term
|
Definition
| Profession combining real estate with the professional skills and training in constructing or engineering |
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Term
|
Definition
| Property cannot be relocated to satisfy demand where supply is low |
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Term
|
Definition
| Provides clients with competent independent real estate advice based on sound professional judgement |
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Term
|
Definition
| The state's authority to enact legislation to preserve order, protect the public health and safety, and welfare of it's citizens; used to enact environmental protection laws, zoning ordinances, and building codes as well as regulations governing the use, occupancy, size, location, and construction of real estate |
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Term
PETE
Police power
Eminent Domain
Taxation
Escheat |
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Definition
| Limitations on real estate ownership that are imposed for the general welfare of the community and supersede the rights or interests of the individual |
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Term
|
Definition
| The right of the government to acquire privately owned real estate for public use. |
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Term
|
Definition
| The process the government employs to exercise the right of eminent domain, either by judicial or administrative proceedings |
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Term
|
Definition
| a charge on real estate to raise funds to meet the public needs of a government |
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Term
|
Definition
| provide for ownership of real or personal property to transfer to the state when an owner dies leaving no heirs (as defined by the law) and no will that directs how the real estate is to be distributed |
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Term
|
Definition
|
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Term
|
Definition
| What are the two types of estate? |
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Term
|
Definition
|
|
Term
| Will, Years, Periodic, and Sufferance |
|
Definition
| What are the four types of leasehold estates? |
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Term
|
Definition
1) the holding of land by any kind of title
2)a mode of holding an estate in property
3) a form of ownership of property
4) the temporary possession or occupancy of property belonging to another |
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Term
|
Definition
| a leasehold tenancy where either the landlord or the tenant my terminate it at any time by giving reasonable notice |
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Term
|
Definition
| fixed-term tenancy that lasts for some fixed period of time |
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Term
|
Definition
| an estate existing for some period of time determined by the term of the payment of rent |
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Term
|
Definition
| a tenant remains in possession of property after the end of the lease, until the landlord evicts the tenant |
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Term
|
Definition
| a real estate law term used to describe a a situation in which a landlord either does something or fails to do something he is legally bound to, rendering the property uninhabitable |
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Term
|
Definition
| ownership rights to land that are not a part of a lease |
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|
Term
1) fee simple
2) life estate
3) fee tail |
|
Definition
| What are the three types of freehold estates? |
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Term
|
Definition
| a freehold estate where ownership is limited to the duration of some person's lifetime |
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|
Term
| Life estate pur autre vie ("for another's life") |
|
Definition
| estate measured by a person's life who is not the estate holder |
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Term
|
Definition
| any person other than the original owner who will receive the title to the property when the life estate ends |
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Term
|
Definition
| What are the two types of marital life estate? |
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Term
|
Definition
| Marital life estate for the wife |
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Term
|
Definition
| Marital life estate for the husband |
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Term
|
Definition
| Legal life estate created for a family providing some protection against creditors as long as the family lives in the house |
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Term
|
Definition
| Legal life estate that lasts as long as a person's descendants live |
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|
Term
1. fee simple absolute
2. fee simple determinable
3. fee simple subject to condition subsequent
4. fee simple subject to executory limitation |
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Definition
| What are the four types of fee simple estates? |
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Term
|
Definition
| an estate transferred by the owner with no conditions upon the estate |
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Term
|
Definition
| a fee simple with no qualification or restriction on the estate |
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Term
|
Definition
| created when a grantor transfers land conditionally |
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|
Term
1. Fee simple determinable
2. Fee simple subject to condition subsequent
3. Fee simple subject to executory limitation |
|
Definition
| What are the three types of defeasible estates? |
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Term
|
Definition
| a fee simple has a duration placed on it that may cut short the fee simple in favor of the Grantor, and where that fee simple automatically reverts back to the Grantor |
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Term
| Fee simple subject to condition subsequent |
|
Definition
| when a fee simple has a condition placed on it that may occur in the future, and where the grantor is given the power to re-take the estate (if the Grantor so chooses) |
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Term
| Fee simple subject to executory limitation |
|
Definition
| a fee simple that has a condition or duration placed on it favoring a new Grantee (rather than the Grantor) so the new Grantee automatically takes the fee simple on the occurrence of the condition or duration |
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Term
| Ownership in severalty (aka tenancy in severalty) |
|
Definition
| real estate is owned by a single person or legal entity, and provides the owner with the most complete control of the land |
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Term
Tenancy in Common
Join Tenancy
Tenancy by the Entirety
Community Property |
|
Definition
| What are the four types of Concurrent Estates? |
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Term
|
Definition
| When the concurrent owners own a fractional interest in the property |
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Term
|
Definition
| Each owner has equal ownership in an undivided property |
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Term
|
Definition
| concurrent owners own a fractional interest in the property but have an undivided interest with rights of survivorship |
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|
Term
1. Possession
2. Interest
3. Time
4. Title |
|
Definition
| What are the 4 unities required to create a joint tenancy? |
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Term
|
Definition
| Joint Tenancy for married persons |
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Term
|
Definition
| Any property or income received during marriage that is not separate property |
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Term
|
Definition
| a legal instrument created when the owner of the property transfers assets |
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Term
|
Definition
| created by a will upon the death of the property owner |
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Term
|
Definition
| all occupants in a multiunit building own separate property and a specified ownership share, as tenants in common, of the common elements |
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Term
|
Definition
| pieces of property that are shared between owners including the roof, hallways, parking lot, sidewalks, pool, yard and so forth |
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Term
|
Definition
| allows an individual to own or lease a specified time interval in a property |
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Term
|
Definition
| partners have a right to participate in the management of the partnership and have unlimited liability |
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Term
|
Definition
| Partnership in which partners are only liable to the extent of their investments |
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Term
|
Definition
| two or more people or business entities have pooled their money to invest in real estate |
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Term
|
Definition
| a syndicate that is created for a specific business purpose for a definite amount of time |
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Term
|
Definition
| artificial person created by a charter in the state where it files |
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Term
|
Definition
| combines the features of a general corporation and a partnership but are limited to 75 stockholders who enjoy the limited liability feature of limited partnerships and general corporations but avoid the double taxation of profits of a general corporation |
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|
Term
| Limited Liability Companies |
|
Definition
| a partnership with the attractive features of both corporations and limited partnerships |
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Term
|
Definition
| The right of a government body to take ownership of real estate for public use |
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Term
|
Definition
| A purchaser of real estate learns that his ownership rights could continue forever and that no other person claims to be the owner or has any ownership control over the property. This person owns a |
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Term
|
Definition
| The act of accepting a different consideration than agreed; for example, if there is a dispute as to performance and one party accepts less than bargained for originally |
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Term
|
Definition
| Depreciation to date; measured by the difference between the replacement cost new and present value |
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Term
|
Definition
| a declaration customarily made before a notary, certifying that the signing of an instrument is the seller's own free act |
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Term
|
Definition
| a measure of land equal to 43,560 square feet |
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Term
|
Definition
| A legal action against a person. When recorded, a judgement from such an action is a general lien against all of a debtor's property in the country where recorded |
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Term
|
Definition
| a legal action against property. when recorded, a judgment from such an action is a specific lien against the particular property involved in the action |
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Term
|
Definition
| Personal knowledge of an interest or instrument |
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Term
|
Definition
| a tax according to value; real property taxes are considered to be ad valorem taxes |
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Term
|
Definition
| Disposal of property by a testator prior to death. It defeats the rights of a specific beneficiary under the will. |
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Term
|
Definition
| A mortgage bearing a rate of interest subject to change (based on a particular index, such as the T-bill rate) during the term of the loan. Generally have caps on the interests that can be charged. |
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Term
|
Definition
| Acquisition cost less depreciation plus cost of improvements. Deducted from the sales price to determine gain or loss. |
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Term
|
Definition
| Gross income adjusted for a vacancy factor and collection loss. |
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Term
|
Definition
| A man appointed by a probate court to administer the estate of a deceased |
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Term
|
Definition
| The adjustment of a comparable property's sales price to account for differences in features and amenities of a property. |
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Term
|
Definition
| A lender agreement to provide permanent financing upon completion of a construction project |
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Term
|
Definition
| fees paid before services are rendered |
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Term
|
Definition
| A means of obtaining title from another by open, hostile, and continuous use for a statutory period of time. In some states it also requires payment of taxes. |
|
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Term
|
Definition
| Zoning for conformance appearance such as architectural style requirements. |
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Term
|
Definition
| A statement sworn to under oath or by affirmation before a notary. |
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Term
|
Definition
| A formal declaration as to the truthfulness of a statement; made by a person whose religious beliefs prohibit swearing under oath. |
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Term
|
Definition
| An easement that allows the easement holder a rights of use over the land of another. |
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Term
|
Definition
| An index of NAR that measures the median family income ability to support a mortgage for the median price home. An index of 100 means that the median income is equal to the amount necessary to afford the median price home. |
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Term
|
Definition
| An interest acquired by a grantor after he or she has conveyed property. Under some deeds, this interest will pass to the grantee. |
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Term
|
Definition
| Appraisal tables that indicate the economic life for various types of structures. |
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Term
|
Definition
| An agency created when the principal's words or conduct lead another to believe in the agency and thereby act to the other's detriment. |
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Term
|
Definition
| An agency created by a principal approving an unauthorized act of another. |
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Term
|
Definition
| A described airspace over a property that is subject to being transferred. |
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|
Term
| agency coupled with an interest |
|
Definition
| An irrevocable agency under which the agent has an interest in the subject matter of the agency. |
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Term
|
Definition
| A transfer of property or property rights. |
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Term
|
Definition
| A type of acceleration clause in a note that makes all future payments due when a property is sold. It prevents an assumption of the loan. Also called due-on-sale clause. |
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Term
|
Definition
| A type of acceleration clause in a note that makes all future payments due when a property is sold. It prevents an assumption of the loan. Also called alienation clause. |
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Term
|
Definition
| A loan written for the amount of both junior and senior liens. The borrower makes the entire payment to the lienholder, who then makes the payment the payment on the senior encumberance. Also called a wraparound loan. |
|
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Term
|
Definition
| A loan written for the amount of both junior and senior liens. The borrower makes the entire payment to the lienholder, who then makes the payment the payment on the senior encumberance. Also called a all-inclusive mortgage. |
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Term
|
Definition
| Ownership by individuals rather than the government. The United States follows this system of ownership. |
|
|
Term
| ALTA (American Land Title Association) |
|
Definition
| A type of title insurance policy providing extended coverage to the lender. The same extended coverage also may be available for the buyer. |
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Term
|
Definition
| Modification of a contract or note by one party without the consent of the other. This action voids the contract. |
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|
Term
| amend escrow instructions |
|
Definition
| A change in the escrow instructions after they have been signed. The signature of both buyer and sell are required. |
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Term
|
Definition
| Features of a property that enhance the satisfaction and use of the property; for example, an extra bath, a flower garden, mature shade trees. |
|
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Term
|
Definition
| A loan that is liquidated by equal payments. |
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Term
|
Definition
| A bolt that ties the mudsill (the lowest board in a house) to the foundation |
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Term
|
Definition
| A major tenant, usually located at one end (or both ends) of a shopping center. Lesser shops benefit by being between anchor tenants. |
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Term
|
Definition
| A probate for real property located in a state other than the domicile of the deceased. |
|
|
Term
| annual percentage rate (APR) |
|
Definition
| An interest rate expressed in simple interest considering all finance charges. |
|
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Term
|
Definition
| An action or a statement of a party prior to the performance due date that indicates the party will breach the contract. The other party can bring suit without waiting for an actual breach. |
|
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Term
|
Definition
| A clause in a mortgage that prevents loss of lien priority should the lien-holder receive a deed. Otherwise, a deed in lieu of foreclosure would convey title subject to later liens. |
|
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Term
|
Definition
| Organization responsible for the Uniform Standards of Professional Appraisal Practice. |
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Term
|
Definition
| A beneficial easement that transfers with the land. |
|
|
Term
|
Definition
| Taking advantage of the interest rate differential by buying at one interest rate and selling at a higher interest rate by either land contract or the use of a wraparound loan. |
|
|
Term
|
Definition
| A nonjudicial process for resolution of disputes whereby the parties agree to abide by a decision made by a third person. |
|
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Term
|
Definition
| A bargain freely entered into with duress, undue influence, or collusion. |
|
|
Term
| articles of incorporation |
|
Definition
| Filed with the state, they set forth the activities the corporation may engage in. |
|
|
Term
|
Definition
| A surveyor point for metes-and-bounds descriptions that is man-made, such as an iron stake, a fence, or a canal. |
|
|
Term
|
Definition
| A phrase intended to mean that the seller does not warrant a property's condition. Such phrase, however, does not protect the seller in cases of concealment or fraud. Some courts hold that it applies only to readily observable defects, not to known but undisclosed latent defects. |
|
|
Term
|
Definition
| A mineral that was formerly used for insulation and in housing products. Dust is a hazardous material. |
|
|
Term
| ASI (Assessment Systems, Inc.) |
|
Definition
| An independent testing organization that prepared the Real Estate Assessment for Licensure (REAL) examination. Formerly known as Promissor, now known as Pearson VUE |
|
|
Term
|
Definition
| The act of bringing adjacent parcels of land under one ownership; the opposite of subdividing. Usually results in an increase in value. (Plottage) |
|
|
Term
|
Definition
| Value placed by a tax assessor |
|
|
Term
|
Definition
| The process of valuing a property for taxation purposes. |
|
|
Term
|
Definition
| Property owned by or owed to a business or person. |
|
|
Term
|
Definition
| One who receives an assignment. |
|
|
Term
|
Definition
| The complete transfer of one person's rights to another. Takes over the rights and duties of the assignor. |
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