General terms Flashcards
Avulsion
Is an abrupt change in the course of a stream that forms the boundary between two parcels of land, resulting in the loss of part of the land
Accretion
Is an increase by natural growth or addition
Alluvion
Is the increase of land when water borne soil is gradually deposited
Reversion
Refers to when somebody loses title and the title reverts back to another
A promise in exchange for a promise, supported by consideration is the basis for a:
Valid, binding, bilateral, contract
What are the essentials of a valid contract?
Lawful object, consideration, mutual agreement, capable parties
There is a three step process for offer and acceptance, which are
Offer, acceptance, and communicate back acceptance
Latent Defect
Latent Defect: A latent defect is a hidden issue that is not easily discoverable during a routine property inspection. A leaking roof can be a latent defect, especially in arid climates where the issue might not be apparent for several months.
Material Fact
Material Fact: A material fact is a piece of information that, if known, could influence a buyer’s decision to purchase a property or the price they’re willing to pay. A leaking roof is a material fact because it can cause damage to the property and may require costly repairs.
Material fact
Material facts are important details about a property that can affect its value, desirability, or safety. Real estate agents are required to disclose material facts to potential buyers or tenants.
What is a percentage lease?
In this type of lease, the amount of rent paid by the lessee is determined by calculating a percentage based on the gross receipts of the lessee’s business
A net lease is a?
A net lease is a type of commercial real estate lease where the tenant is responsible for paying not only the base rent but also additional expenses related to the property, such as property taxes, insurance, and maintenance costs. There are different types of net leases, depending on what expenses the tenant is required to cover:
1. Single Net Lease (N): The tenant pays base rent plus property taxes. 2. Double Net Lease (NN): The tenant pays base rent, property taxes, and insurance premiums. 3. Triple Net Lease (NNN): The tenant pays base rent, property taxes, insurance premiums, and maintenance costs. This is the most common form of net lease.
In net leases, the landlord typically has less responsibility for property expenses, and the tenant assumes a larger portion of the financial burden.
A gross lease is?
What you typically have on residential property because you’re paying a set amount
A gross lease is a type of lease agreement where the tenant pays a fixed rental amount, and the landlord is responsible for covering all property-related expenses, such as property taxes, insurance, maintenance, and utilities. In this arrangement, the tenant’s rent includes these additional costs, so they don’t have to worry about fluctuations in expenses.
Gross leases are common in office and residential leases, and they simplify the financial responsibilities for tenants since the landlord handles most of the operational costs of the property. However, some gross leases may have clauses allowing the landlord to pass on certain increases in expenses to the tenant, known as a modified gross lease.
What is a sandwich lease
Same thing as sub leasing
What is the OREE Rule?
It is a study trick
The OR stands for the giver
The EE stands for the receiver
There’s no exception to this rule
What type of Tenancy would require no notice to terminate the lease?
Tenancy at will
In some states, the instrument used for a mortgage is
A deed of trust
What is an instrument that is a three party system that has a trustee, a trustor and a beneficiary
Deed of Trust
Title is?
Evidence of ownership
Deed is?
Evidence of transfer title rights
What is economic obsolescence?
A type of depreciation is incurable
An easement in gross example
Utility companies to access a property in order to maintain wires or pipes
What type of state describes this best? This will always have a definite termination date, which makes it a definite duration time.
Estate for years
Ex: when you see two dates such as January 5 to March 4, that is an estate for years
When a home value goes up proportionately less than the other house in the neighborhood this is example of what?
Regression (because it’s around lesser homes if it’s a nice home)
Eminent domain and escheat are two example examples of?
Involuntary alienation
How big is an acre?
43,560 sq ft
What is a dominant tenement?
It’s basically a benefit from an easement, like a land or selling one acre of his 2 acre property and reserving himself and appurtenant easement
Part of the consideration offered to a seller when a buyer signs an agreement of sale is called?
Earnest money
A real estate broker was responsible for a chain of events that resulted in the sale of one of his clients properties. The broker is legally called what?
Procuring cause
The principle of appraising which states that the maximum value is achieved, when the property is an harmony with its surrounding is the principle of
Conformity
The addition to one’s land by the gradual deposit of soil through natural causes is
Accretion
A home is the smallest in a neighborhood of a large expensive houses. The larger houses have an effect on the value of the smaller home, called the principle of.
Progression
A buyer, Joe and seller Steven both sign a purchase contract. What kind of title interest if any does Joe have in the property at this point?
Equitable (the right to possess and obtain full power of a property or property interest)
A court order to properly designate individual to sell property in order to satisfy a judgment is called?
A writ of execution
Real property can become personal property by the process called?
Severance
The removal of land when a stream is suddenly changed its channel is
Avulsion
Discrimination is prohibited in lending practices under which of these act
Equal credit opportunity act (ECOA)
Annexation
The process of a fixing or attaching personal property to real property so it becomes a fixture in this considered real property
Appurtenance
The rights privileges and improvements that go with the transfer of the land, even though they may not be part of it. Like water, rights, and easements.
Beneficiary
A person who is to receive payment under a deed of trust the person for whom a trust operates. It is the lender in a deed of trust arrangement.
Contingent remainder
A known feature interest in real property provided some condition specified in the deed occurs
Correction lines
Correction for curvature of the Earth back to a full 6 miles made at every fourth Township line in the government survey system of land description
Curtesy
A husband’s legal life estate (1/3 interest) and his wife’s property upon her death (only a few states)
Datum
A point, line or surface from which a vertical height or depth is measured
Fee Simple Defeasible
Study tip : it’s supposed to be used for a park, man that defeats the purpose so give me my property back
A/K/A qualified fee. Ownership estate in which fee simple title may be defeated by either a determinable (so long as this specific use in the deed continues) or b) a condition subsequent (so long as a certain condition, indeed is not violated)
Dower
Used in some states to represent the interest the wife receives in property owned by her husband at the time of his death
Easement by condemnation
Government acquisition of an easement for public purpose through the right of eminent domain. The government must compensate the owner of the servient estate for any loss and property value.
Economic characteristics of real estate
Four: demand, utility, scarcity, & transferability (D.U.S.T)
Emblements
Farm crops of a tenant farmer, which not automatically transferred with real property, and are considered personal property
Enabling declaration
A statement that commits a property to condominium ownership. It defines the rights and responsibilities of individual owners and respect to maintenance and financial liabilities.
Estate
Once legal interest in a property. May either be freehold or non-freehold.
Fructus Industriales
Cultivated annual crops that went harvested our personal probably. Latin for fruit or effort. Also called emblements.
Fructus Naturales
Plants, trees, and crops that are considered real property because they are not harvested Latin for fruit of nature
Government check
In a rectangular government survey system, an area bounded by two guided meridians and two correlation lines, containing approximately 24 mi.²
improvements
Man-made items permanently attached to the land like a building or a deck
Inter Vios Trust
Study tip think; Latin While Alive I gave you this property with conditions
A trust under which property is transferred by living trust or to a trustee with instructions for management of assets and for distribution of income. Differs from a testamentary trust created by will, and effective upon death.
What are the four unities joint tenancy
Must be done at the same time, title, interest, and possession
Land
Includes underground surface level, and sky
Living trust
Legal document created by the grantor during his lifetime just like a will a living trust spells out exactly what the heir desires are with regard to their assets, dependence, heirs. A trustee is appointed who manages the property for benefit of the designated beneficiary. Becomes active when the grantor dies, this bypasses probate
Lot and block system
A map that identifies a parcel by reference to a recorded plat map, using a lot number with specific block which lies within a specific tract and is the basis of legal descriptions.
Master deed
Study tip: think of master of the condo
Describe describes a physical location of the common and individual elements (units) of the condominium
Non-freehold estate
Less than a freehold. A non-ownership or leasehold estate, which a tenant possesses in real property
Partition
A court action or lawsuit to dissolve co-ownership of property when one or more co-owners wants to sell the property, or order the property to be sold, and for the proceeds of the sale to be divided among the owners
Permanence of investment
One of the economic characteristics of Real Estate. Refers to the long payback. And unstable nature of the real estate investment. Requires future projections on Usage.
Plat
Legal description in a map form of subdivision. It contains a lot and blocked numbers and shows dimensions of each parcel. Use mostly in urban/suburban areas. Plat maps are recorded by filing with the county clerk and recorder.
Pur Autre Vie
(French for another’s life)
A life state based on the duration of a person other than the grantor
Quadrangles
An area of land measuring 24 miles on each side
Range
A 6 mile wide strip of land or townships which run north and south of baseline, and numbered east or west of principal Meridian. Used in the governmental survey system.
Real Estate
Land plus all improvements thanks permanently attached to it, running from the center of the Earth up through the sky
Syndication
A process of two or more people coming together to operate an investment such as partnerships, corporations it is not a form of ownership
How many covenants does a warranty deed typically have?
A. Two to three
B. Three to four
C. Five to Six
D. Eight to nine
C. Five to six.
A warranty D can include six forms of covenants for title. A warranty deed is a type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has the right to sell it to the grantee. The general warranty deed offers the guarantee most protection. With this type of deed, a grantor makes a series of legally binding promises, called covenants and warranties to the grant agreeing to protect the grantee, any prior claims and demands of all persons whom ever in regards to the conveyed land. Typical #Warranty deed has 5 to 6 covenants.
