WV Real Estate cheat sheet

Fee simple absolute is the most complete estate in land; it has potentially infinite duration and is freely inheritable and transferable.

A life estate is measured by the life of a named person; the remainderman holds a future interest and the life tenant must avoid waste.

Joint tenancy includes the right of survivorship; tenancy in common does not; tenancy by the entirety may be available to married couples.

An easement appurtenant benefits a dominant parcel and burdens a servient parcel and passes with the benefited land.

An easement in gross benefits a specific person or entity rather than a parcel of land.

Fixtures are personal property that become real property; courts weigh annexation, adaptation, and the parties' agreement.

Encumbrances include liens, easements, deed restrictions, and encroachments; they may affect title or use without transferring ownership.

Surface, air, and mineral rights can be severed; ownership of one layer does not necessarily include the others.

Police power allows government to regulate land use for health, safety, and welfare without compensation unless regulation amounts to a taking.

Eminent domain requires a public use and just compensation; condemnation is the legal process.

A variance grants relief from a zoning requirement when strict application causes unnecessary hardship; use variances are often more restricted than area variances.

A special use permit authorizes a conditional use listed in the zoning ordinance subject to standards and review.

A nonconforming use existed lawfully before zoning and may continue, but expansion, reconstruction, or reestablishment after abandonment may be limited.

Deed restrictions and CC&Rs are private controls enforceable by property owners or associations rather than by zoning officials.

A comprehensive plan guides growth and zoning; the zoning ordinance and map implement it.

Subdivision regulations typically require plat approval, streets, utilities, drainage, and compliance with lot and density standards.

Floor area ratio equals building floor area divided by lot area; setbacks and bulk rules limit placement and height.

The sales comparison approach adjusts comparable sales for differences from the subject; a superior comparable is adjusted downward, an inferior one upward.

Cost approach value equals land value plus replacement or reproduction cost new minus depreciation.

Income approach value equals net operating income divided by the capitalization rate.

Capitalization rate equals net operating income divided by sale price or value.

Gross rent multiplier equals price divided by gross monthly rent; value equals gross rent times the multiplier.

Depreciation includes physical deterioration, functional obsolescence, and external obsolescence.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Reconciliation weights approaches by relevance and data reliability; it is not an average of all approaches.

A CMA estimates value for marketing and is not an appraisal; an appraisal is an unbiased opinion by a qualified appraiser.

Loan-to-value ratio equals loan amount divided by property value or purchase price.

One discount point equals 1% of the loan amount; points are prepaid finance charges that may reduce the interest rate.

PITI includes principal, interest, property taxes, and hazard insurance; lenders may also escrow mortgage insurance.

Total debt-to-income ratio equals total monthly debt payments divided by gross monthly income.

In an amortizing loan, early payments are mostly interest and later payments are mostly principal.

A fixed-rate mortgage has a constant interest rate; an adjustable-rate mortgage changes with an index plus margin, subject to caps.

RESPA/TRID requires a Loan Estimate after application and a Closing Disclosure before consummation for most residential mortgages.

Private mortgage insurance is commonly required when the loan-to-value ratio exceeds the lender's threshold, often 80%.

Mortgage lien priority generally follows recording order, subject to statutes and exceptions such as tax liens.

Fiduciary duties owed to a client include care, obedience, loyalty, disclosure, accounting, and confidentiality.

A customer is not a client; the licensee owes honesty and fair dealing but not fiduciary advocacy.

Agency may be created by express agreement, implication, ratification, or estoppel.

Dual agency represents both sides in one transaction and requires informed written consent; it limits advocacy.

A seller's agent must disclose material facts to buyers even while advocating for the seller.

Confidentiality may continue after the agency ends for information whose disclosure would harm the former client.

Agency terminates by expiration, performance, mutual agreement, revocation, death or incapacity, or bankruptcy in some circumstances.

Designated agency assigns different agents within one brokerage to represent buyer and seller, reducing dual-agency conflicts where permitted.

Residential sellers generally must disclose known material defects through a property condition disclosure statement, subject to state exceptions.

For pre-1978 housing, federal law requires lead-based paint disclosure, the EPA pamphlet, and a 10-day opportunity to inspect.

Licensees must disclose their agency relationship and obtain consent for dual agency where it is permitted.

Known material adverse facts must be disclosed even if the seller instructs the agent not to disclose them.

An 'as is' sale does not necessarily eliminate the seller's duty to disclose known latent defects.

Flood hazard, HOA or condominium documents, and shared-interest community obligations may require disclosure depending on the transaction.

Closing disclosures itemize loan terms and settlement costs; they are mandated for most residential mortgage loans.

West Virginia licensees must follow Commission disclosure rules and statutory seller disclosure requirements for residential property.

Contract elements are offer, acceptance, consideration, capacity, legality, and, for real estate, a writing that satisfies the statute of frauds.

The statute of frauds requires real estate sale contracts and leases over one year to be written and signed by the party to be charged.

A counteroffer terminates the original offer and creates a new offer.

Earnest money evidences buyer good faith and is usually held in escrow and credited at closing.

Contingencies such as financing, inspection, appraisal, and home sale must be satisfied by stated deadlines.

A 'time is of the essence' clause makes deadlines enforceable conditions of performance.

Breach remedies include damages, specific performance, rescission, and liquidated damages when the contract provides.

The parol evidence rule limits use of prior or contemporaneous oral statements to vary a fully integrated written contract.

Assignment transfers contract rights; delegation transfers duties; novation replaces a party with a new party.

A valid deed identifies grantor and grantee, contains words of conveyance, describes the property, is signed by the grantor, and is delivered and accepted.

A general warranty deed provides the broadest customary warranties; a special warranty deed limits them to the grantor's period of ownership.

A quitclaim deed conveys whatever interest the grantor may have without warranty of title.

Recording statutes determine priority among competing interests; notice, race, and race-notice rules vary by state.

Title insurance protects against covered defects; an owner's policy protects the owner and a lender's policy protects the lender.

Adverse possession requires open, notorious, hostile, actual, exclusive, and continuous possession for the statutory period.

Liens, easements, restrictions, and encroachments are title encumbrances that a title search may reveal.

Marketable title is title reasonably free from serious defects and encumbrances that a buyer would object to.

Foreclosure, tax sales, probate, and divorce can affect title and may require additional documentation.

Fair housing law prohibits discrimination based on protected classes in sale, rental, advertising, and financing.

Steering, blockbusting, and redlining are prohibited fair housing practices.

Antitrust law prohibits price fixing, group boycotts, and market allocation among competitors.

RESPA Section 8 prohibits kickbacks and unearned fees for settlement-service referrals.

Advertising must identify the brokerage and comply with truth-in-advertising and fair housing rules.

Trust funds must not be commingled with business or personal funds; conversion is a serious violation.

Unlicensed assistants may perform clerical tasks but may not negotiate, execute contracts, or provide property advice.

A broker price opinion is not an appraisal and its use may be restricted by state and lender requirements.

Agency disclosure at first substantive contact helps consumers understand representation before sharing confidential information.

Commission equals sale price times commission rate.

Seller net proceeds equal sale price minus commission, closing costs, prorations, and loan payoff.

Loan-to-value ratio equals loan amount divided by property value; down payment percentage equals 100% minus LTV.

Points cost equals loan amount times points percentage; one point is 1% of the loan.

One acre equals 43,560 square feet; square feet divided by 43,560 equals acres.

Rectangle area equals length times width; irregular lots may be divided into measurable shapes.

Proration equals annual expense divided by 365 times the number of days, unless the contract specifies a 360-day year.

Appreciation value equals original value times (1 plus annual rate) raised to the number of years.

Capitalization rate equals net operating income divided by price; value equals net operating income divided by cap rate.

The West Virginia Real Estate Commission licenses brokers, associate brokers, and salespersons and administers examinations and renewals.

The Commission may investigate complaints and impose discipline, including fines, suspension, or revocation of a license.

Licensees must place client funds in a separate trust account, maintain records, and avoid commingling or conversion.

Commission rules establish prelicensing education, experience, examination, and continuing education requirements for licensure and renewal.

West Virginia licensees must disclose brokerage relationships and obtain required consent for dual agency.

Residential sellers in West Virginia must provide the required property disclosure statement for known material defects, subject to statutory exceptions.

Licensees must comply with West Virginia fair housing laws and Commission advertising rules.

A real estate license is required to sell, lease, or negotiate real property for another person for compensation.

The Commission's rules govern branch offices, team advertising, records retention, and handling of transaction documents.