Aceable: Principles of Real Estate D - J Flashcards
What is a designated base reference point to elevation used by surveyors to determine the elevations of land or property in an area
L11, C3
Datum
What type of Estate? a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions; ownership reverts back to the original owner if these stipulations are violated
L13, C2
D________ F_____ Estate
Defeasible Fee Estate
What is a physical or mental impairment that substantially limits one or more major life activities, the record of such impairment, or being regarded as having such an impairment
L7, C6
Disability
What is an interest in, or a right to use, another individual’s land or property, generally for a specific, limited purpose
L13, C3
Easement
An easement a__________ exists when two tracts of adjacent land are owned by two different people. One of the owners has the easement, or right to cross the other’s land. If they didn’t have this right, they would never be able to leave their land. This type of easement transfers with the land and cannot be discontinued by a new property owner. When an easement appurtenant exists, there is one parcel of land which benefits at the (relative) expense of another. These are known as the dominant tenement and servient tenement respectively.
The easement a_________ is more common in rural land ownership. Of course, properties in the city have easements as well. The utility company usually has an easement to cross a property to cut limbs away from power lines or to repair pipes that are broken. Easements are also a consideration in commercial ownership of property.
Easement Appurtenant
There is also such a thing as an easement in g________, in which an individual or company is allowed to be on the owner’s property for specific purposes.
Example: An electric company would have the right to be on someone’s land to clear limbs from power lines thanks to an easement in gross.
The difference between an easement in g______ and an easement appurtenant is that easements in g______ are granted to a person, not a property. Unless renewed, an easement in gross will expire* when:
The person granted the easement in g_______ dies (if granted to an individual).
The property ownership changes.
Easement in Gross
Here in Texas, to establish an easement by p_________, the area in question would have to have been used by the non-owner of the property for at least ten years. That person would have had to use the easement continuously, exclusively, and without the owner’s permission.
The use of the easement would also have to be open, visible, and notorious (which, in this context, means a well known bad deed). The user of the easement will most likely never own the land, but after ten years, the easement would be established.
Easement by Prescription
There is also something called easement by n__________. When an owner cuts up a larger piece of property into two or more pieces to sell them off, it is possible that the owners of the properties in the back will not have a road or way to get in or out of the property unless they drive across someone else’s land. Since there is no other choice but to use someone else’s land, the people who need a way in and out will be granted an easement by necessity.
In other words, it is necessity for them to have the easement.
Easement by Necessity
What is physical property that crosses the boundary into a neighboring landowner’s property L13, C3
Encroachment
What is a non-possessory interest in a property that burdens the title L13, C3
Encumbrance
Which act? a fair lending law that aims to bar discriminatory lending practices L7, C4
E______ C______ O_________ Act
Equal Credit Opportunity Act (ECOA)
What is the concept that everyone will have equal access to housing with no discriminatory actions taking place
L7, C1
E_____ O________ in H________
Equal Opportunity in Housing
An e__________ e_______ may be had when a freehold estate owner has ownership interest on the property, but another party has interest in the property that is less than the interest afforded by ownership.
Ex. A seller accepts a buyer’s offer. The sale has not closed yet, so the seller still has ownership interest. But the buyer, by entering into a sales contract with the seller, now has an equ____ e______.
Or, if another party has an easement on your property, then that too is considered an equ_____ e_____.
Equitable Estate
Which type of lien? a lien imposed by the courts with one party charging their property as security for a debt or loan L13, C5
-An e_______ l_______ is a right that exists only in equity, with one party charging their property as security for a debt or loan.
Equitable Lien
What type of insurance protects against mistakes a license holder might make in real estate transactions; it does not cover acts of fraud or other intentional misconduct
L9, C11
Errors and Omissions Insurance
What is the degree, quantity, and extent of interest one owns in property L13, C2
Also, the rights and interests a person has in property.
There are 4 main types of E_______
-freehold, leasehold, equitable, concurrent
Estate
What type of estate? a lease with a specific starting and ending date; aka tenancy for years L13, C2
E______ for Y_______
Estate for Years
Which type of listing? An agreement in which the seller has an exclusive relationship with a broker but retains the right to sell the property to named prospects L15, C3
It’s possible that at the listing appointment, the sellers will indicate that they would like to have the opportunity to sell the property themselves while the agent is trying to sell the place also. This could be because the sellers have already been marketing the property as a For Sale by Owner, or they have a friend that might be interested in the place.
Many offices have a policy against real estate agents taking this type of listing. Other offices do not. So, whether the sales agent would be allowed to take the listing depends on office policy.
E________ A________ L_______
Exclusive Agency Listing
Which type of listing? An agreement in which the seller guarantees the named broker receives a commission if the property is sold, regardless of who brings the buyer L15, C3
Commission Guaranteed
Exclusive means exactly that. It doesn’t matter if the listing company sells the place or if the owner does or if the agent down the street ends up selling it. According to the agreement, the seller would still owe the listing company a commission.
It’s a good idea to make sure the seller knows that even if they try to cut the real estate agent out of the transaction at some point in the future, they will still be required to pay them a commission.
A seller might try and find a buyer by themselves, or make a comment to buyers who are seeing the property about coming back without the agent. But, if they understand the nature of the contract, it is less likely that they will attempt a sale on their own.
E________ R______ to S___ L_________
Exclusive Right to Sell Listing
What is a contract in which all terms have been fulfilled by all parties L12, C2
Executed Contract
Which type of lien? a lien on a property seized by writ of execution L13, C5
Execution Lien
What is a contract that has not yet been fully performed (both sides have not yet completed
their obligations) L12, C2
Executory Contract
Agency created by a clear, specific agreement; can be written or oral L4, C1
Express Agency
Smaller towns that surround cities across Texas are areas known as Extra Territorial Jurisdictions (ETJ). These are areas just a few miles outside the city limits that the city may decide to annex someday as part of their tax base. The distance limit for what counts as an ETJ is dependent on the population of the town or city.
Extra T___________ Jur___________
Extra Territorial Jurisdictions (ETJ)
A federal law that prohibits discrimination in housing based upon race, color, religion, or
national origin and was amended to include sex, disability, and familial status (created around the Civil Rights Movement)
L7, C1
F_____ H________ A______ of 19___
Fair Housing Act of 1968
Under the Fair Housing Act, a protected class composed of families who have children under 18, pregnant women, and people in the process of obtaining legal custody of a child
L7, C3
Familial Status
A general, involuntary lien imposed by the government that can attach to all of the owner’s property except their homestead property
L13, C5
Federal Judgement Lien
A type of defeasible fee estate which causes the title to automatically revert to the original
owner if the deed requirements regarding property use are violated
L13, C2
Clue: Fee S_______ D_________ Estate
Fee Simple Determinable Estate
Which type of estate? Maximum ownership of real property; is of indefinite duration, freely transferable, and freely inheritable; aka fee or fee simple absolute
L13, C2
Clue: F_____ S_______ E_______
Fee Simple Estate
A type of defeasible fee estate that comes with specific requirements (or conditions) that, for
ownership to change, the grantor of the estate must prove in court that the condition has
been violated within a certain time frame
L13, C2
Clue: Fee S______ S_______ to C___________ S___________
Fee Simple Subject to Condition Subsequent
The full sum of obligations owed to the client in an agency relationship that ensures that the
agent always acts in the best interest of the client
L4, C4
Clue: OLDCAR
Fiduciary Duties
The economic principle that says that real estate exists in a fixed location and cannot
be moved
L1, C4
Fixity
An object that was once personal property but is now firmly attached to the land in such a
way that it is considered to be real property
L2, C2
Fixture
Part of a contract that requires one or more of the contracting parties to refrain from actions
they are otherwise legally entitled to perform
L12, C1
Clue: F________ A________
Forbearance Agreement
a legal concept stating that the court can only consider information that appears within the
four corners of the documents
L12, C2
Four Corners Doctrine
a misstatement made intentionally to deceive L4, C5
Fraud
Type of Estate? a form of ownership with an indeterminate length L13, C2
Clue: F__________ E_______
freehold estate
plants or crops intended for harvest and treated as personal property, aka emblements L2, C2
fructus industriales
trees, perennial plants, and uncultivated plants usually treated as real property because of
their permanence
L2, C2
fructus naturales
a lien for which the real estate AND personal property may be sold to satisfy the debt L13, C4
Clue: G______ L______
general lien
property owners’ right to use water under the surface through the rule of capture L13, C6
groundwater rights
Type of Act? requires lenders to disclose specific lending information, which HUD then uses to map lending patterns
L7, C5
H_________ M_________ D__________ Act
Home Mortgage
Disclosure Act
a legal life estate that prevents a person’s primary residence from being forcibly sold to pay certain kinds of debts
L13, C7
homestead
an exemption that a homeowner can file to reduce the amount of ad valorem taxes paid on their homestead
L3, C2
homestead tax exemption
a 1988 amendment to the Fair Housing Act that added familial status and disability to the list of protected classes
L7, C3
H_________ and C__________ D___________ Act
Housing and Community
Development Act
agency that is created by the actions, conduct, and words of either or both parties without
ever being expressly requested
L4, C1
implied agency
any non-natural structure built on or affixed to land L2, C1
improvement
describes undivided ownership of an estate, with an interest that is exclusive from
other owners (1 owner)
L14, C1
in severalty
a form of property ownership in which one person is the owner of a property and has
absolute control over the distribution and use of the land
L14, C1
individual ownership
a broker who negotiates a contract between two parties that are both being represented by
that broker
L4, C1
intermediary broker
a lien obtained through an action of law without the owner’s consent L13, C5
-when a property owner does not take any action to initiate the lien…Real estate tax liens and judgement liens are examples
involuntary lien
co-ownership in which the parties have an equal and undivided interest in the property;
includes the right of survivorship rather than inheritance
L14, C2
J______ t_______ is when owner A and owner B own a property…if owner B passes away, owner B’s interest in the property will be transferred to owner A, rather than owner B’s heirs.
joint tenancy
