WV Real Estate key terms

The most complete form of ownership, giving the owner the unlimited right to use, sell, lease, mortgage, or give away the property with no time limit and no conditions. If the owner dies without a will, it passes to heirs by law.

A right to cross or use a neighboring parcel that benefits the owner's own land and automatically transfers when either parcel sells. The benefited land is the dominant estate and the burdened land is the servient estate.

Co-ownership in which each owner holds a separate undivided interest that may be unequal in size. Any owner may sell or will that share without the others' consent, and there is no automatic survivorship at death.

Co-ownership by two or more people holding equal undivided interests with the right of survivorship, so a deceased owner's share passes automatically to the survivors instead of through probate. It requires unity of time, title, interest, and possession.

An item of personal property that has been attached to or permanently integrated into real estate so that it becomes part of the land and transfers with a sale. Attachment, adaptation, and the parties' intent guide the decision.

Permission from a local board to use or build on a parcel in a way the zoning ordinance otherwise forbids, granted only when strict application would cause an unnecessary hardship unique to that property rather than to the neighborhood generally.

An existing use of property that was lawful when it began but no longer complies with current zoning. It may usually continue, although it typically cannot be enlarged and is lost if abandoned for the period the ordinance specifies.

A private, usually recorded promise limiting how land may be used, such as minimum setbacks, minimum house size, or no commercial activity. Covenants run with the land and are enforced by owners or an association, not by government zoning staff.

The government's power to take private property for a public purpose after paying just compensation. If the owner and the taking authority cannot agree on value, a court action called condemnation decides the amount.

The use of a property that is legally permitted, physically possible, financially feasible, and produces the greatest value. Appraisers identify it before valuing land or property that could be converted to another use.

A valuation method that estimates value by comparing the subject property with recently sold similar properties, then adjusting for differences in size, condition, location, and date of sale. It is the most reliable approach for homes and vacant land.

An income rate expressed as a percentage, drawn from comparable sales and applied to a property's net operating income to estimate value. A higher rate signals greater risk and produces a lower indicated value from the same income.

The loan amount divided by the property's appraised value or purchase price, whichever is lower, stated as a percentage. Lenders use it to set interest pricing, insurance requirements, and the maximum amount they will lend.

The four parts of a typical monthly housing payment: principal, interest, property taxes, and homeowner's insurance. Lenders compare PITI with the borrower's gross monthly income when qualifying the loan.

A lender-held reserve, also called an impound account, into which part of the borrower's taxes and insurance is collected each month and paid when due. The word also describes a neutral account that holds funds for a transaction until closing.

Insurance protecting the lender if a borrower defaults on a loan with a high loan-to-value ratio. It is commonly required when the down payment is less than 20 percent and the premium is paid by the borrower.

A three-party security instrument, widely used in West Virginia, in which the borrower conveys title to a trustee who holds it until the debt is repaid or, on default, forecloses at the lender's direction.

The duties an agent owes a principal: care, obedience to lawful instructions, loyalty, disclosure of material facts, confidentiality, and accounting for money and property. These duties are the legal core of the agency relationship.

Representing both buyer and seller in the same transaction with the informed written consent of both. Because complete loyalty to each is impossible, the licensee must not reveal one party's confidential information to the other.

The agent whose uninterrupted efforts in introducing the parties and negotiating produced the completed sale and who is therefore entitled to the commission. It is the usual test in disputes between cooperating brokers.

A written contract in which a buyer hires a broker, setting the duration of representation, compensation, and whether the relationship is exclusive. It creates the broker's fiduciary duties to the buyer rather than to the seller.

A hidden problem with the property that a reasonable buyer would consider important and that is not readily discoverable by ordinary inspection, such as a cracked foundation or recurring water intrusion. Sellers must disclose defects they know about.

A federal requirement for sales and leases of housing built before 1978 to deliver an informational pamphlet, disclose known paint hazards, and allow a ten-day inspection period unless the buyer waives it in writing.

The two essential elements of a valid contract: one party makes a definite proposal and the other agrees to it exactly as written. Any change in terms creates a counteroffer and ends the original offer.

A contract clause making a party's obligation depend on a stated event, such as obtaining financing, a satisfactory inspection, or a clean title report. If the condition fails, that party may cancel and recover the deposit.

A deposit the buyer gives to show good faith and intent to complete the purchase. It is held in trust, usually credited to the buyer at closing, and may be forfeited if the buyer defaults without a valid excuse.

The rule that certain agreements, including real estate sales contracts and leases longer than one year, must be in writing and signed by the party to be charged before a court will enforce them.

A deed in which the grantor promises to defend the title against all claims, including defects that arose before the grantor owned the property. It gives the grantee the broadest protection available under a deed.

A deed that transfers only whatever interest the grantor may hold, with no promise that the title is good. It is often used to clear questionable title or shift property between family members.

Title free of serious defects and reasonable doubt, of a quality a prudent buyer would accept and a court would require the buyer to accept. It is promised in the sales contract and is not the same as perfect record title.

A one-time-premium policy protecting an owner or lender against loss from title defects that existed at closing but were missed in the title search, such as forged documents, undisclosed heirs, or recording errors.

Gaining title to another person's land through possession that is open, notorious, hostile, exclusive, and continuous for the number of years set by state statute. The claimant generally must also pay the taxes assessed on the parcel.

A written employment contract between a seller and a broker authorizing the broker to market the property and setting the term, compensation, and listing type, such as exclusive right to sell, exclusive agency, or open listing.

A cooperative database operated by a local board or association through which participating brokers share listings and offers of compensation to cooperating brokers. Rules govern when listings must be submitted and how they may be changed.

Mixing client or transaction funds with the broker's own money, or failing to keep trust funds in a separate account as required. Conversion is the related violation of actually spending or misusing money held in trust.

Dividing an expense or income item, such as property taxes, rent, or association dues, between buyer and seller at closing in proportion to the number of days each owned the property during the billing period.

The gradual retirement of a loan through scheduled payments that cover accrued interest first, with the remainder reducing principal. A fully amortized loan is paid off exactly at the end of its stated term.

Up-front charges paid to a lender, where one point equals one percent of the loan amount. Discount points buy a lower interest rate, while origination points are a fee charged for making the loan.

The state agency that licenses brokers, associate brokers, and salespersons, adopts and enforces commission rules, investigates complaints, and may discipline licensees through reprimand, suspension, or revocation.

A West Virginia licensee who holds a broker's license but works under the supervision of another broker instead of operating an independent brokerage. The supervising broker remains responsible for the associate broker's transactions.

A West Virginia form on which most residential sellers must disclose known defects and conditions of the property to a prospective buyer before a contract is signed. Limited exemptions and statutory carve-outs apply to certain transfers.

A West Virginia tax on the transfer of real property, measured by the consideration paid, paid when the deed is recorded, and shown on the deed by tax stamps. Some counties add their own additional transfer tax.