WV Real Estate 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 real property estate; it lasts indefinitely, is freely transferable and inheritable, and is subject only to government powers and private restrictions.

Joint tenancy survivorship

Concurrent ownership by two or more persons with undivided equal interests and a right of survivorship, so a deceased co-tenant's share passes to surviving joint tenants rather than heirs.

Easement appurtenant

An easement that benefits a dominant parcel and burdens a servient parcel; it transfers with the benefited land even if not mentioned in later deeds.

Variance

Administrative relief from a zoning ordinance's dimensional or use requirement granted when strict application causes unnecessary hardship and the request meets statutory standards.

Nonconforming use

A lawfully existing use that does not comply with current zoning but may continue under limits; expansion or reestablishment after abandonment may be restricted.

Eminent domain

Government power to take private property for a public purpose upon payment of just compensation, as required by the Fifth Amendment and state constitutions.

Highest and best use

The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, producing the highest value for the property.

Sales comparison approach

Valuation method that estimates value by comparing the subject to recently sold similar properties, then adjusting for differences in location, size, condition, and features.

Capitalization rate

The ratio of a property's net operating income to its value or price; value equals net operating income divided by the capitalization rate.

Loan-to-value ratio

Loan amount divided by property value or purchase price, expressed as a percentage; higher LTV generally increases lender risk and may require mortgage insurance.

Discount points

Prepaid finance charges equal to a percentage of the loan amount; paying points typically lowers the mortgage interest rate over the loan term.

PITI payment

The monthly housing payment comprising principal, interest, property taxes, and hazard insurance; lenders also may include mortgage insurance and association dues.

Fiduciary duties

A real estate agent's duties to a client, commonly including care, obedience, loyalty, disclosure, accounting, and confidentiality; these exceed duties owed to a customer.

Dual agency

A brokerage representing both buyer and seller in the same transaction; it requires informed written consent and limits the agent's ability to advocate for either party.

Agency by ratification

An agency relationship created when a principal approves an unauthorized act performed by another person, thereby accepting the benefits and obligations of that act.

Lead-based paint disclosure

Federal requirement for sales and leases of housing built before 1978 to disclose known lead hazards and provide the EPA pamphlet and a ten-day inspection opportunity.

Seller property disclosure

A written statement in which a residential seller discloses known material defects and conditions; it does not replace the buyer's own inspections or professional advice.

Material adverse fact

A fact that could significantly affect a reasonable buyer's decision or the property's value; agents must disclose it even when not asked directly.

Statute of frauds

Legal rule requiring certain contracts, including real estate sale and lease agreements over one year, to be in writing and signed by the party to be charged.

Earnest money

A deposit tendered by a buyer to show good faith and secure the contract; it is usually held in escrow and applied to the purchase price at closing.

Contract contingency

A contract condition that must be satisfied before a party is obligated to perform, such as a financing, inspection, appraisal, or home-sale contingency.

General warranty deed

A deed in which the grantor warrants title against defects arising before and during the grantor's ownership; it offers the broadest customary title protection.

Recording statute

State law establishing priority of competing interests in land based on recording; notice, race, and race-notice statutes protect certain purchasers from prior unrecorded claims.

Adverse possession

A doctrine allowing a person to acquire title by possessing land openly, notoriously, hostilely, exclusively, and continuously for the statutory period.

Fair housing steering

Illegal practice of directing prospective buyers or tenants toward or away from neighborhoods based on protected characteristics such as race, religion, or national origin.

RESPA Section 8

Federal prohibition on giving or receiving a thing of value for settlement-service referrals; it restricts kickbacks, fee splitting, and unearned referral fees.

Commission calculation

Multiply the sale price by the agreed commission rate; for example, a 6% commission on a $250,000 sale equals $15,000.

Acre conversion

One acre equals 43,560 square feet; to convert square feet to acres, divide the square footage by 43,560.

Seller net proceeds

Sale price minus commission, closing costs, prorations, and loan payoff; this estimates the cash the seller receives at settlement before adjustments.

WV Real Estate Commission

State agency that licenses real estate brokers and salespersons, administers exams and renewals, investigates complaints, and imposes discipline under West Virginia law.

WV trust account rule

West Virginia licensees must hold client funds in a separate trust account, keep records, and avoid commingling; conversion of trust funds can lead to discipline.

WV agency disclosure

West Virginia law requires licensees to disclose the brokerage relationship and obtain required consents so consumers know whom the agent represents in a transaction.