Property-Only flashcards

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

Fee simple absolute

The most complete ownership interest in real property; it is potentially infinite in duration, freely inheritable, and subject to no conditions or limitations.

Joint tenancy

Concurrent ownership by two or more persons with equal shares and the right of survivorship; requires the four unities of time, title, interest, and possession.

Tenancy in common

Concurrent ownership in which each owner holds an undivided interest, shares need not be equal, and there is no right of survivorship; interests pass to heirs.

Life estate

A freehold estate measured by the life of a named person; the holder may use the property for life, but the estate ends at death and passes to a remainderman or reversioner.

Fixture

Personal property that has become attached to real property so as to be treated as part of the realty; determined by annexation, adaptation, and intention of the parties.

Easement appurtenant

An easement that benefits a dominant parcel and burdens a servient parcel; it runs with the land and transfers automatically when either parcel is conveyed.

Easement by prescription

An easement acquired by open, notorious, continuous, hostile, and adverse use of another's land for the statutory period, similar to adverse possession.

Mechanic's lien

A statutory lien filed by a contractor, subcontractor, or supplier for unpaid labor or materials used to improve real property; strict notice and filing deadlines apply.

General lien

A lien that attaches to all property of a debtor, such as a judgment lien or federal tax lien, rather than to a specific parcel.

Encumbrance

Any right, interest, or claim held by another in real property that diminishes its value or restricts its use, including liens, easements, and deed restrictions.

Statute of Frauds

A state law requiring certain contracts, including real estate sale contracts and leases over one year, to be in writing and signed by the party to be charged.

General warranty deed

A deed in which the grantor warrants title against all defects arising before and during the grantor's ownership, using six traditional covenants of title.

Quitclaim deed

A deed that conveys whatever interest the grantor may have in the property without any warranties or covenants of title; commonly used to clear title defects.

Marketable title

Title that is free from reasonable doubt and from encumbrances that a prudent buyer would object to; it must be delivered at closing unless the contract states otherwise.

Race-notice recording act

A recording statute that protects a subsequent purchaser who records first and takes without notice of a prior unrecorded interest; both recording and lack of notice are required.

Proration

The division of income and expenses, such as property taxes, rents, and interest, between buyer and seller at closing based on the number of days each owns the property.

Fiduciary duty

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

Dual agency

A situation in which one broker represents both buyer and seller in the same transaction; it requires informed written consent from both parties in most states.

Designated agency

An arrangement in which the brokerage represents both parties but assigns different licensees to represent each side, avoiding the conflicts of traditional dual agency.

Transaction broker

A licensee who assists both buyer and seller without representing either as a fiduciary; duties are limited to honesty, fairness, and disclosure of known material facts.

Commingling

The prohibited practice of mixing client funds, such as earnest money or security deposits, with the broker's personal or business funds instead of holding them in trust.

Sales comparison approach

An appraisal method that estimates value by comparing the subject property to recently sold similar properties and adjusting for differences in features, location, and sale date.

Capitalization rate

A rate used in the income approach, calculated as net operating income divided by property value; it reflects the investor's expected return and risk.

Highest and best use

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and maximally productive, resulting in the highest value.

Gross rent multiplier

A valuation tool calculated as sale price divided by gross monthly rent; it provides a quick comparison of income properties but ignores operating expenses.

Loan-to-value ratio

The ratio of the loan amount to the property's appraised value or sale price, whichever is lower; it measures leverage and helps determine mortgage insurance requirements.

Amortization

The gradual repayment of a loan through regular payments that cover both interest and principal, resulting in a zero balance at the end of the loan term.

Deed of trust

A security instrument in which the borrower conveys title to a trustee as security for a loan; on default, the trustee may foreclose through a power-of-sale provision.

Private mortgage insurance

Insurance that protects the lender against borrower default, generally required when the loan-to-value ratio exceeds 80 percent; it does not protect the borrower.

Variance

A grant of permission by a zoning board to deviate from a specific zoning requirement because strict application would cause undue hardship to the property owner.

Nonconforming use

A use of property that lawfully existed before a zoning ordinance was adopted but does not comply with current zoning; it may continue but generally cannot be expanded.

Reasonable accommodation

A change in rules, policies, practices, or services that enables a person with a disability to use and enjoy a dwelling, required under fair housing law.