MS Real Estate flashcards

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

Fee simple determinable

Estate that ends automatically when a stated condition occurs or is violated, returning title to the grantor through a possibility of reverter; the granting language typically reads so long as or while.

Joint tenancy four unities

Time, title, interest, and possession must all be identical for joint tenants; losing any unity severs survivorship, so one joint tenant's conveyance leaves the grantee a tenant in common.

Fixture test

Whether an item has become real property is judged by its annexation to the land, its adaptation to the property's use, and the intent of the party who installed it.

General warranty deed

Deed containing covenants of seisin, right to convey, against encumbrances, quiet enjoyment, and warranty; it protects the grantee against title defects arising before and during the grantor's ownership.

Quitclaim deed

Conveys only whatever interest, if any, the grantor actually holds, with no warranties of title; often used to clear clouds on title or between parties who expect no guarantee.

Mechanic's lien priority

A construction lien dates back to when work or materials first began, so it usually outranks liens and mortgages recorded after that date.

Adverse possession elements

Possession must be actual, open and notorious, exclusive, hostile to the owner, and continuous for the statutory period; some states also require color of title or tax payment.

Fiduciary duties of agent

Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care; loyalty forbids secret profits and self-dealing, and disclosure covers known material facts about the property.

Dual agency

One licensee or brokerage represents both buyer and seller in the same transaction; it requires informed written consent and limits full advocacy and confidential advice to either party.

Transaction broker

A licensee who assists both parties without representing either as an agent, owing honesty, accounting, and disclosure but not undivided loyalty or confidentiality to one side.

Statute of frauds

Requires real estate sale contracts, and leases longer than one year, to be written, signed by the party to be charged, and to identify the parties, the property, and essential terms.

Liquidated damages

A pre-agreed sum, commonly the buyer's earnest money, forfeited on default when actual damages are difficult to estimate and the amount is a reasonable forecast rather than a penalty.

Contingency clause

Contract condition such as financing, inspection, or appraisal that must be satisfied or expressly waived by a deadline, or the protected party may cancel and recover earnest money.

Loan-to-value ratio

Loan amount divided by the lower of purchase price or appraised value; higher ratios increase lender risk and usually require mortgage insurance.

PITI

Principal, interest, property taxes, and hazard insurance; the standard monthly housing expense used in underwriting, sometimes expanded to include mortgage insurance and association dues.

Discount point

Prepaid interest equal to one percent of the loan amount, paid at closing to reduce the note rate; discount points are separate from origination fees.

Sales comparison approach

Estimates value by adjusting recent closed comparable sales for differences from the subject; add value when the comparable is inferior and subtract when the comparable is superior.

Depreciation types

Loss of value from physical deterioration, functional obsolescence such as outdated design, and external obsolescence caused by off-site conditions like traffic, nuisance, or economic decline.

Highest and best use

The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, tested both as vacant land and as currently improved.

Exclusive right to sell

Listing under which the broker earns a commission no matter who procures the buyer during the listing term, including a sale the owner negotiates personally.

Months of inventory

Active listings divided by average monthly sales; roughly five to six months suggests a balanced market, lower numbers favor sellers and higher numbers favor buyers.

CMA versus appraisal

A comparative market analysis is a licensee's pricing opinion built from comparable sales; an appraisal is a licensed, USPAP-compliant valuation typically required by a lender.

Fair housing protected classes

Federal Fair Housing Act classes are race, color, religion, sex, national origin, familial status, and disability; state and local ordinances may add further protected classes.

Reasonable accommodation

A change in rules, policies, practices, or services, made at the housing provider's expense, so a person with a disability has equal opportunity to use and enjoy the dwelling.

Blockbusting

Inducing owners to sell quickly and cheaply by suggesting that members of a protected class are moving into the neighborhood; prohibited by the Fair Housing Act.

Steering

Directing prospective buyers or tenants toward or away from particular neighborhoods based on protected characteristics rather than on their stated needs and qualifications.

Variance

Permission to depart from a zoning requirement because the parcel itself has a unique hardship; it is granted for the land, not for the owner's personal or financial convenience.

Nonconforming use

A use that was lawful before new zoning took effect and may continue; it generally cannot be expanded and may be lost if discontinued for the required period.

CERCLA liability

Superfund imposes strict, joint and several liability for cleanup on current owners and operators, prior owners at disposal time, generators, and transporters; the innocent landowner defense requires due care and inquiry.

Mississippi Real Estate Commission

Mississippi Real Estate Commission: the state agency that licenses brokers and salespersons, adopts rules, investigates complaints, and may fine, suspend, or revoke licenses.

Mississippi Real Estate Recovery Fund

A fund administered by the Mississippi Real Estate Commission that pays unsatisfied court judgments against licensees for fraud or conversion, subject to statutory limits and claim procedures.

Deed of trust foreclosure

Mississippi deeds of trust normally include a power of sale, so foreclosure is nonjudicial: the trustee gives statutory notice and conducts a sale without court action.