IA Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Fixture

A formerly personal item that becomes part of the realty when attached with intent to remain permanently, judged by annexation, adaptation, and the parties' intention; intention controls.

Fee simple absolute

The largest estate in land, potentially infinite in duration, inheritable and freely transferable, with no future interest retained by another party.

Joint tenancy

Concurrent ownership with right of survivorship, requiring the four unities of time, title, interest, and possession; a deceased joint tenant's share passes to the survivors rather than to heirs.

Easement appurtenant

An easement that benefits a dominant parcel and burdens a servient parcel, passing automatically with the land when either parcel is conveyed.

Mechanic's lien

A statutory lien securing payment for labor, materials, or services that improved real property; in Iowa the claim generally must be filed within 90 days after the last work.

Race-notice recording

A recording statute protecting a later purchaser who takes without notice of a prior interest and records first; Iowa follows this rule for deeds and mortgages.

Quitclaim deed

A conveyance that transfers whatever interest the grantor may hold with no warranty of title; it carries no covenants and gives no assurance that the grantor owns anything.

Fiduciary duties

Duties an agent owes a principal: care, obedience, loyalty, disclosure, confidentiality, and accounting; loyalty requires placing the principal's interest ahead of the agent's own.

Dual agency

Representing both buyer and seller in one transaction; permitted only with informed written consent of both parties, and neither side's confidences may be disclosed to the other.

Procuring cause

The broker whose efforts began an uninterrupted chain of events leading to a completed sale, supporting a commission claim even without attending the final signing.

Statute of frauds

Requires real estate contracts and deeds to be in writing and signed by the party to be charged, containing the essential terms and a sufficient property description.

Counteroffer

A response that changes the terms of an offer; it rejects the original offer and creates a new offer that the original offeror may accept or reject.

Liquidated damages

A sum agreed in advance as compensation for breach, enforceable when actual damages are hard to estimate and the amount is not an unreasonable penalty.

Loan-to-value ratio

The loan amount divided by the property's appraised value or purchase price, whichever is lower; it drives down payment requirements and mortgage insurance.

PITI

The four components of a monthly housing payment: principal, interest, property taxes, and hazard insurance; lenders use it to calculate qualifying ratios.

Discount point

A fee paid at closing equal to one percent of the loan amount; it raises the lender's yield and typically buys a lower interest rate.

Iowa foreclosure redemption

After a judicial foreclosure sale in Iowa, the mortgagor generally has one year to redeem by paying the sale price plus costs, unless the property was abandoned.

Capitalization rate

Net operating income divided by property value; it expresses an investor's yield and can be rearranged to value property as NOI divided by cap rate.

Gross rent multiplier

Sale price divided by gross rent; a rough comparison tool for similar income properties, where a lower multiplier suggests higher income relative to price.

Highest and best use

The reasonably probable, legally permissible, physically possible, financially feasible use that produces the greatest value to the land as if vacant and available.

Iowa security deposit

Under Iowa residential landlord-tenant law, the landlord must return the deposit or a written itemized accounting within 30 days after the tenancy ends and the tenant's address is received.

Month-to-month tenancy

A periodic tenancy renewed each month; in Iowa either party may terminate it with 30 days' written notice, and no fixed end date exists.

Implied warranty of habitability

A landlord's promise that rented housing meets basic health and safety standards, such as working plumbing, heat, and weather-tight roofing, regardless of lease language.

Iowa continuing education

Licensed Iowa real estate brokers and salespersons must complete 36 hours of approved continuing education during each three-year license renewal cycle.

Trust account commingling

Placing brokerage funds, such as commissions, into the account holding client money; prohibited because client funds must be separately accounted for and identifiable.

Unlicensed assistant limits

In Iowa, unlicensed staff may do clerical and administrative work such as answering phones and scheduling, but may not negotiate, show property, or discuss contract terms.

Groundwater hazard statement

An Iowa requirement for real property transfers disclosing private water supply and sewage systems and known hazardous conditions; it is filed with the county recorder.

Declaration of value

An Iowa form filed with the county recorder at transfer stating the consideration paid and related transaction details; it supports transfer tax and sales data.

Iowa seller disclosure

For most residential transfers of one to four units, Iowa law requires the seller to deliver a written disclosure of known property conditions before the buyer is bound.

Debits and credits at closing

On a settlement statement, a debit is money charged to a party and a credit is money received; the buyer's debits generally match the seller's credits.

Proration

Dividing shared costs such as taxes and rent between buyer and seller by days of ownership; taxes commonly use a 365-day year and rents use the monthly amount.

Iowa transfer tax

Iowa imposes a real estate transfer tax of $0.80 per $500 of consideration or fraction thereof, collected when the deed and declaration of value are recorded.