WA Real Estate key terms

The most complete form of ownership: the owner holds title indefinitely, may use, sell, or leave the property to heirs, and is limited only by government powers and private restrictions.

Ownership lasting only for the lifetime of a named person. The life tenant may use the property but cannot pass it on; when the measuring life ends, the property goes to the holder of the remainder interest.

A right to use part of another person's land for a specific purpose, such as a driveway or utility line. It encumbers the land but does not give ownership of it.

A claim against property that secures payment of a debt. A specific lien attaches to one property, such as a mortgage; a general lien reaches all of the owner's property, such as a judgment.

Co-ownership with right of survivorship: when one joint tenant dies, that share passes automatically to the surviving joint tenants and avoids probate. Equal shares and the same deed are required.

In Washington, property acquired by a married couple during the marriage is generally owned equally by both spouses, and one spouse usually cannot sell or encumber it without the other's consent.

Ownership of an individual unit plus a shared interest in common areas such as halls, pools, and land. An owners' association governs the project and collects assessments for upkeep.

A private promise, usually written into deeds or subdivision rules, that limits how land may be used, such as a setback requirement or a ban on commercial use. It runs with the land.

Local rules that divide land into districts and set allowed uses, density, height, and setbacks. Zoning is an exercise of police power and must be applied without illegal discrimination.

A use that was lawful before a zoning ordinance took effect but does not fit current rules. It may generally continue, but it cannot be expanded or revived after being abandoned.

The government's power to take private property for a public purpose after paying just compensation, as required by the United States and Washington constitutions. Condemnation is the court process used to do it.

The most profitable use of a property that is legally permitted, physically possible, and financially feasible as of the appraisal date. It is the foundation of the value estimate.

The most probable price a property should bring in a competitive and open market, with both parties acting prudently and knowledgeably and neither under undue pressure.

In appraisal, a loss in property value from any cause, grouped as physical deterioration, functional obsolescence, or external obsolescence. It is subtracted when using the cost approach.

A written employment contract in which a seller hires a brokerage to market property and agrees to pay a commission. Washington requires a definite termination date and the parties' signatures.

A listing in which the broker earns a commission no matter who produces the buyer, even if the seller finds the buyer. It gives the broker the most control over the listing.

A written contract in which a buyer hires a brokerage to represent the buyer's interests, usually for a set period and set compensation. It creates fiduciary duties owed to the buyer.

The contract that sets the price, closing date, title and inspection terms, and other conditions of a sale. Once both parties sign, it binds them subject to its contingencies.

A deposit a buyer gives to show good faith and to be credited toward the price at closing. The contract states who holds it and when it may be returned or forfeited.

A contract condition that must be satisfied or waived before the sale becomes binding or before closing. Common examples are financing, inspection, and title contingencies.

A neutral third party holds money and documents and follows the parties' written instructions, releasing funds and recording documents only when all conditions have been met.

Dividing ongoing costs such as property taxes, rent, or association dues between buyer and seller at closing, so each pays for the period during which they own the property.

A policy that protects an owner or lender against losses from title defects that existed before the policy date but were missed in the title search. It is typically paid for at closing.

Washington's usual security instrument for a mortgage loan: the borrower conveys title to a trustee, who can sell the property without a lawsuit if the borrower defaults.

The legal duties an agent owes a client, including loyalty, care, disclosure, obedience to lawful instructions, confidentiality, and accounting for money. They are the core of the agency relationship.

Guiding buyers toward or away from neighborhoods because of race, religion, disability, or another protected class. It violates fair housing law even when no one is openly refused.

The licensed managing broker a real estate firm names to supervise its licensed and unlicensed staff and to be responsible for the firm's compliance with licensing law.

A Washington license level above broker that allows the holder to supervise other licensees and to serve as the designated broker for a real estate firm.

The license a business entity such as a corporation, limited liability company, or partnership must hold to operate as a real estate brokerage in Washington, in addition to its brokers' individual licenses.

A separate account a brokerage uses to hold client money such as earnest money or rental funds, kept apart from the firm's own operating money and reconciled as the rules require.

Mixing client money with the brokerage's own funds, or otherwise mishandling trust funds. It is a serious licensing violation that can lead to license discipline.

Washington's tax on the sale of real property, figured on the selling price using graduated state rates plus any local rates, and usually collected at closing through an affidavit.

A form required under Washington law for most residential resales, in which the seller reports known defects and other material facts about the property, its title, and the neighborhood.

The written notice or pamphlet a Washington brokerage must give consumers explaining agency relationships and whom the firm represents, so the parties can consent knowingly.

One brokerage representing both the buyer and the seller in the same transaction. Washington allows it only with the written consent of both parties, and the firm's duties are limited accordingly.

A body appointed by the governor that advises the Department of Licensing and helps administer real estate licensing law, including rulemaking and disciplinary matters.

Approved instruction a licensee must complete during each renewal period before the license can be renewed, covering required topics such as real estate law and ethics.

A Washington land division creating nine or fewer lots, reviewed under the state platting statute and local rules. Larger divisions require a full subdivision plat.