NE Real Estate key terms

The most complete ownership interest in real property, giving the owner the right to use, sell, lease, or leave the property to heirs, subject only to government powers and private restrictions.

A form of co-ownership in which each owner holds a separate undivided share that may be sold or left to heirs; shares may be unequal and there is no right of survivorship.

Co-ownership by two or more people with the right of survivorship, so that when one owner dies, that owner's share automatically passes to the remaining owners outside probate.

A right to use a neighboring parcel of land that benefits the owner's property and transfers automatically with that property when it is sold.

Official permission to build or use a parcel in a way that does not strictly comply with the zoning ordinance because of unique hardship, without changing the ordinance for other properties.

The legal obligation of an agent to act in the principal's best interest, including loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting for money and property entrusted to the agent.

Written notice a Nebraska licensee gives a consumer explaining the brokerage relationships available and whom the licensee represents, generally required at the first substantive contact about a property.

A brokerage relationship in which the same licensee or brokerage represents both the buyer and seller in one transaction; Nebraska requires written informed consent from both parties.

The licensed broker responsible for supervising a brokerage's licensees and transactions, and the person with whom brokerage relationships legally exist under Nebraska law.

The broker whose efforts started an uninterrupted chain of events leading to a completed sale; courts and commissions use it to decide who earns a commission in a dispute.

A definite proposal to enter into a contract that states the essential terms and shows an intent to be bound; it becomes a contract when the other party accepts it.

A reply to an offer that changes one or more terms; legally it rejects the original offer and creates a new offer that the other party may accept or reject.

A deposit a buyer gives to show good faith and later credit toward the purchase price; Nebraska rules control how a licensee holds and disburses it.

A condition written into a purchase contract that must be met, such as obtaining financing or a satisfactory inspection, before a party must complete the transaction.

The legal rule that certain contracts, including real estate purchase agreements, must be in writing and signed by the party to be charged to be enforceable.

A specific amount stated in a contract as a reasonable estimate of the loss from a breach, often the earnest money a seller keeps when a buyer defaults.

The borrower's written promise to repay a loan, stating the principal, interest rate, payment schedule, and default terms; it is separate from the mortgage or deed of trust.

A written document that pledges real property as security for a loan; the borrower keeps title while the lender holds a lien that can be foreclosed if the debt is not paid.

The order in which liens against a property are paid, usually set by the date each was recorded, which determines who gets paid first in a foreclosure or sale.

Insurance a lender often requires when a buyer makes a small down payment; it protects the lender against loss if the borrower defaults and ends when the loan balance drops enough.

An account a lender uses to collect part of the yearly property taxes and insurance with each mortgage payment and then pay those bills when they come due.

The most probable price a property should bring in a competitive and open market, with buyer and seller acting knowledgeably and without unusual pressure.

The use of a property that is legally allowed, physically possible, financially feasible, and produces the greatest value, as determined in an appraisal.

An appraisal method that estimates value by comparing the subject property with recently sold similar properties and adjusting the sale prices for differences.

A licensee's estimate of a property's likely selling price based on similar active, pending, and recently sold listings; it is an opinion, not a licensed appraisal.

The state agency that licenses Nebraska brokers and salespersons, enforces the Real Estate License Act, investigates complaints, and imposes discipline on licensees.

A separate bank account where a broker holds client money such as earnest money; brokerage or personal funds may not be mixed into it.

Illegally mixing client funds, such as earnest money, with the broker's own money or the brokerage's operating funds instead of keeping them in a trust account.

Coursework a licensed Nebraska broker or salesperson must complete during each renewal period to keep the license active and stay current on law and practice.

A deed in which the seller guarantees clear title and promises to defend the buyer against all title claims, including defects that arose before the seller owned the property.

A deed that transfers whatever interest the seller may have with no promises about title; often used between family members or to clear a title defect.

A policy that protects an owner or lender against financial loss from title defects that existed before the policy date and were not listed as exceptions.

Filing a deed or other document with the county register of deeds so it becomes part of the public record and gives notice to later buyers and lenders.

Title that is reasonably free of serious defects, liens, and encumbrances so a prudent buyer would accept it; purchase contracts usually require the seller to deliver it.

A Nebraska-required form on which a residential seller reports known defects and conditions of the property before the buyer becomes bound to the purchase.

Federal law that bars discrimination in the sale or rental of housing based on race, color, religion, sex, national origin, familial status, or disability.

A fair housing violation in which a licensee guides buyers toward or away from neighborhoods because of race or another protected characteristic.

An illegal practice of urging owners to sell by suggesting that members of a protected class are moving in and will lower property values.