NE 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

An estate that ends automatically and reverts to the grantor when a stated condition is violated; words such as 'so long as' or 'while' create it.

Easement by necessity

An implied easement arising when a parcel is landlocked or lacks access, requiring strict necessity at the time a larger tract was severed into separate parcels.

Right of survivorship

A joint tenancy feature under which a deceased co-owner's share passes automatically to the surviving joint tenants instead of through the estate; the four unities are required.

Nonconforming use

A use of land that lawfully existed before a zoning ordinance was adopted and may generally continue despite no longer conforming to current zoning rules.

Fiduciary duty of loyalty

Requires the agent to place the principal's interests above the agent's own, avoid undisclosed self-dealing, and never buy the principal's property without full disclosure and consent.

Dual agency

A broker representing both buyer and seller in the same transaction; it requires informed written consent from both parties and limits full loyalty and confidentiality between them.

Express agency

An agency relationship created by a written or oral agreement in which the principal authorizes the agent to act on the principal's behalf and specifies the scope of authority.

Procuring cause

The broker whose efforts set in motion an uninterrupted chain of events leading to a ready, willing, and able buyer, supporting a claim for the commission.

Statute of frauds

Requires real estate sale contracts, options to buy land, and leases longer than one year to be in writing and signed by the party to be charged.

Counteroffer

A response that changes the terms of an offer; it operates as a rejection of the original offer and simultaneously creates a new offer that the other party may accept.

Earnest money

A deposit given by a buyer to show good faith; it is held in trust and its disposition on default or permitted termination is set by the purchase contract.

Equitable conversion

Doctrine treating the buyer as owner of the real estate from contract execution, with the seller holding a right to the price, which may shift risk of loss to the buyer.

Loan-to-value ratio

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

PITI

The four components of a monthly housing payment: principal, interest, property taxes, and hazard insurance; used by lenders when qualifying the borrower for a loan.

Discount points

Prepaid interest charged at closing; one point equals one percent of the loan amount and buying points generally lowers the note interest rate.

Closing Disclosure delivery rule

Under TRID rules, the borrower must receive the Closing Disclosure at least three business days before loan consummation, allowing time to review final terms.

Gross rent multiplier

A valuation tool computed as sale price divided by gross monthly rent; multiplying a subject property's market rent by the multiplier gives an indicated value.

Capitalization rate

Net operating income divided by property value or price; dividing a property's net operating income by a market cap rate yields an indicated value.

Contribution

An appraisal principle holding that a feature adds value only to the extent it increases the property's market value, regardless of what the feature cost.

Highest and best use

The reasonably probable, legally permissible, physically possible, and financially feasible use of a site that produces the greatest value to the land.

Nebraska Real Estate Commission

The state agency that licenses Nebraska brokers and salespersons, adopts rules, administers examinations, investigates complaints, and imposes discipline on licensees.

Commingling

Illegally mixing client trust funds with the broker's personal or business money; Nebraska requires separate trust accounts for funds held on behalf of others.

Blind advertisement

Advertising property without identifying the brokerage's licensed name; it is prohibited because the public must know which broker is responsible for the advertisement.

Continuing education requirement

Nebraska licensees complete 18 hours of approved continuing education each two-year renewal cycle, including required brokerage-relationship hours, to keep the license active.

General warranty deed

A deed containing present and future covenants, including seisin, right to convey, quiet enjoyment, warranty, encumbrances, and further assurances; it gives the broadest grantor protection.

Quitclaim deed

A deed that transfers whatever interest the grantor may hold without any warranties of title; commonly used to cure defects or in non-sale transfers.

Constructive notice

Notice imputed by law from recording a document in the public records, whether or not a party actually examined those records before acquiring an interest.

Documentary stamp tax

Nebraska's tax on deeds and other conveyances at $2.25 per $1,000 of consideration, collected by the county register of deeds when the document is recorded.

Familial status

A Fair Housing Act protected class covering households with a child under 18, pregnant persons, and persons securing legal custody of a child.

Reasonable accommodation

A change in rules, policies, or practices that a housing provider must make for a person with a disability so the person can use and enjoy the dwelling.

Lead-based paint disclosure

Federal rule requiring sellers and landlords of pre-1978 housing to disclose known lead hazards and give the EPA pamphlet plus a 10-day inspection opportunity.

Real Property Transfer Statement

Nebraska's seller disclosure form for residential property of one to four units, listing known conditions and defects; certain transfers are statutorily exempt.