NALA ACP Real Estate flashcards

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

Fee simple absolute

The broadest freehold estate; it lasts indefinitely, is freely alienable and inheritable, and has no future interest held by another party.

Fee simple determinable

A fee estate that automatically ends when a stated event occurs; the grantor retains a possibility of reverter, which may be recorded and transferred.

Life estate

An estate measured by a person's life; the life tenant possesses the property but cannot commit waste, and a remainder or reversion follows.

Joint tenancy

Concurrent ownership with right of survivorship; generally requires unity of time, title, interest, and possession, and a joint tenant's conveyance severs the joint tenancy.

Tenancy by the entirety

A spousal concurrent estate with right of survivorship; many jurisdictions protect it from one spouse's creditors and allow severance only by divorce or mutual agreement.

Easement by necessity

An implied easement allowing access to a landlocked parcel; it requires common ownership followed by severance and strict necessity, not mere convenience.

Fixture test

A three-part inquiry asks whether the item is annexed, adapted to the property, and intended to be permanent; trade fixtures generally remain tenant property.

Statute of Frauds

A real estate contract must be in writing, signed by the party to be charged, identify the parties and property, and state essential terms such as price.

Earnest money

A buyer's deposit showing good faith; it is not essential to contract formation and is often held in escrow, with disposition governed by contract and state law.

Equitable conversion

A doctrine treating the buyer as equitable owner from contract formation; risk of loss and insurable interest may shift before closing, depending on jurisdiction and contract.

Liquidated damages clause

A contract provision setting a fixed damages amount; it is enforceable only if reasonable and difficult actual damages exist, otherwise it is an unenforceable penalty.

Specific performance

A court order compelling a party to perform the contract; it is available for unique real property when money damages are inadequate and the buyer is ready and able.

Merger doctrine

At closing, contract terms generally merge into the deed; collateral promises and surviving provisions may remain enforceable if the contract or deed expressly preserves them.

General warranty deed

A deed containing six title covenants: seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances; breach remedies may survive depending on state law.

Quitclaim deed

A deed conveying whatever interest the grantor has, if any, without title covenants; it provides no warranty against defects or competing claims.

Race-notice recording

A recording statute protecting a subsequent bona fide purchaser who takes without notice and records first; the prior unrecorded interest is subordinate to that purchaser.

Inquiry notice

Notice imputed from facts that would prompt a reasonable purchaser to investigate, such as visible possession, easements, or unrecorded leasehold interests.

Marketable title

Title free from reasonable doubt and encumbrances that a prudent buyer would object to; it is a contract standard, while insurable title satisfies a title insurer.

Adverse possession

Acquisition of title by actual, open, notorious, exclusive, continuous, and hostile possession for the statutory period; state statutes may require payment of taxes or color of title.

Mechanics lien priority

A mechanics lien may relate back to the start of work or improvement, giving it priority over later-recorded interests; statutes and notice rules vary by state.

Deed of trust

A three-party security instrument in which the trustor conveys title to a trustee to secure a loan for the beneficiary; nonjudicial foreclosure is typical.

Purchase-money mortgage

A mortgage given to a seller or lender to finance the purchase; it often has priority over prior judgments against the buyer and may defeat earlier liens.

Equitable redemption

The borrower's right to cure default and reclaim mortgaged property before foreclosure sale; it cannot be waived by contract and ends at sale.

Nonjudicial foreclosure

Foreclosure under a deed of trust power of sale without court supervision; notice, publication, auction, and borrower protections follow state statutes.

Deficiency judgment

A court award against a borrower for the unpaid balance after foreclosure sale proceeds are applied; anti-deficiency statutes and fair-value hearings may limit it.

TRID closing disclosure

A federally required form disclosing final loan terms and costs at least three business days before closing for most residential mortgage loans.

Tenancy at sufferance

A holdover tenant's estate after a lease ends; the landlord may treat the tenant as a trespasser or consent to a new periodic tenancy.

Implied warranty of habitability

A residential landlord's promise that leased premises are fit for human habitation and comply with housing codes; it cannot generally be waived and supports repair-and-deduct remedies.

Constructive eviction

A landlord's substantial interference that makes premises uninhabitable, allowing the tenant to vacate and stop rent; notice and a reasonable opportunity to cure are often required.

Nonconforming use

A lawful use existing before a zoning ordinance that does not comply with new restrictions; it may continue but generally cannot be expanded or resumed after abandonment.

Variance

An administrative exception to zoning requirements because strict application causes unnecessary hardship; use variances are stricter than area or dimensional variances.

Regulatory taking

A government regulation that goes too far in restricting property use; courts apply Penn Central factors or categorical rules for physical invasions and total economic deprivations.