LEASING AND PROPERTY MANAGEMENT Flashcards
Exchanging like-kind property for like-kind property, resulting in a deferral of capital gains tax; also called a tax-free exchange
1031 EXCHANGE
Written history of property
ABSTRACT
A client level duty relating to account of earnest money, actions, etc.
ACCOUNTING
Gradual Build up of soil; person gains title to added land built up on property
ACCRETION
A customer level duty relating to disclosure of all material defects (including latent or hidden defects) to any customer; e.g., leaky roofs, leaky basements, etc.
ACCURATE
Occurs when a document, such as a deed, is signed by the seller in the presence of a notary public, acknowledging that this is a voluntary act
ACKNOWLEDGE
A situation where a person has actual or personal knowledge of a transaction, etc.
ACTUAL NOTICE
Based on value
AD VALOREM
Court appointed person to oversee estate distribution of deceased; only applies when one dies intestate (without a valid will)
ADMINISTRATOR
Squatters Rights; can gain title by using someone elses property continuously, openly and notoriously (without permission) for a certain period of time
ADVERSE POSSESSION
One who is hired to represent another
AGENT
In a real estate context, this relates to the word transfer; e.g., in a mortgage, an alienation clause allows the lender to call the loan due and payable if a property is sold or transferred, in other words, making the loan non-assumable
ALIENATION
A right, privilege or improvement that is permanently attached to the land
APPURTENANCE
A type of easement that runs with the land - tied to a particular property - given for the benefit of the particular land, e.g., shared driveway
APPURTENANT EASEMENT
A type of insulation wrapped around pipes that could be cancer causing. The best way to remedy is to encapsulate, i.e., seal the asbestos.
ASBESTOS
A total transfer of rights in a lease where the original tenant and new tenant are both liable to the landlord for the lease payments
ASSIGNMENT OF LEASE
The title given to someone who has the power of attorney; can sign on others behalf
ATTORNEY-IN-FACT
Sudden transfer; e.g., stream changing channel. With an avulsion, the boundary lines for a property remain the same as they were before the sudden change.
AVULSION
A type of deed transferring title from a seller to a buyer where the only promise made by the seller is the covenant of seizing (seller promises ownership of the property and the right to sell)
BARGAIN AND SALE DEED
Transfer of personal property through a will
BEQUEST
Where a party to a contract does not perform according to the terms of the agreement
BREACH
A commercial site where the possibility of environmental contamination exists
BROWNFIELD
An area separating two incompatible areas
BUFFER ZONE
Profit made on an investment item, such as real estate
CAPITAL GAIN
A client level duty exercising knowledge and skill
CARE
Comprehensive Environmental Response, Compensation and Liability Act. A federal law which prohibits the dumping of hazardous waste on property.
CERCLA
List of recorded documents
CHAIN OF TITLE
Another word for personal property; comes from the word “cattle”
CHATTEL
Any claim that impairs title; e.g. forged signatures or no signatures on deed, heirs of prior owner claiming title, etc.
CLOUD ON THE TITLE
Refers to a squatter`s rights to ownership once time period has been met
COLOR OF TITLE
Property acquired during marriage; spouses have equal interest in property
COMMUNITY PROPERTY
Where two or more own property together at the same time
CONCURRENT ESTATES
The PROCESS used to take the property when the government exercises the right of Eminent Domain
CONDEMNATION
Property deeded with conditions; e.g., must be used as a school. Also referred to as a defeasible fee
CONDITIONAL FEE
A multi-unit building where the occupants each own their individual units and receive a deed granting ownership of the property
CONDOMINIUM
A client level duty relating to maintaining confidential information of the client
CONFIDENTIALITY
An item of value; one must have consideration to have a valid deed or contract
CONSIDERATION
In leasing, a situation where the landlord constructively evicts the tenant by not maintaining the premises; e.g., no heat in the wintertime; lessee or tenant must actually leave the premises and is released from lease obligations
CONSTRUCTIVE EVICTION
Occurs when a document is recorded on the public record at the county courthouse; a person is responsible for knowing facts because of recording on the public record
CONSTRUCTIVE NOTICE
A multi-unit building where the people who occupy the units own stock in a corporation, thereby receiving a right to lease the unit from the cooperative itself
COOPERATIVE
A life estate interest a husband receives in property upon wife`s death, regardless of debts owned on the property
CURTESY
Voluntarily giving land to government; typically done by a developer
DEDICATION
Property deeded with conditions; e.g., must be used as a school. Also referred to as a conditional fee
DEFEASIBLE FEE
Title is transferred from seller to buyer when the deed is delivered and accepted
DELIVERY AND ACCEPTANCE
A transfer of rights in real property through a lease
DEMISE
Occurs when one dies intestate; probate judge then determines who receives the property of the deceased, such as children, parents, other family members, etc. In essence, judge determines who property descends or goes to
DESCENT
Improves the lots
DEVELOPER
Transfer of real property through a will
DEVISE
Receiver of real property through a will
DEVISEE
A client level duty relating to disclosing to a client all materials facts regarding the transaction
DISCLOSURE
Land benefited or in favor of the easement
DOMINANT TENEMENT
A life estate interest a wife receives in property upon husband`s death, regardless of debts owned on the property
DOWER
Going from a more active use to a less active use; e.g., multi-family to single family
DOWNZONING
A situation where a broker represents both buyer and seller at the same time; must have written prior permission from both parties and informed consent
DUAL AGENCY
Gives someone else the right to use a part of your property while you still retain the ownership rights
EASEMENT
Using someone else`s property continuously, openly and notoriously for a certain period of time - the adverse user then gains an easement to use that land
EASEMENT BY PRESCRIPTION
A type of easement not tied to any land but instead that is owned by a person or company, e.g., utilities, railroads
EASEMENT IN GROSS
Growing crops in the field; allows the seller to come back and harvest after the sale
EMBLEMENTS
The RIGHT of the government to take private property for public good. The property owner is paid compensation for the property
EMINENT DOMAIN
Trespassing; an improvement or appurtenance that extends across the property line; e.g., fences, tree limbs, etc.
ENCROACHMENT
Something that burdens or limits your title to a property, such as a lien or deed restriction (or) rights held by someone else in your property, such as through an easement
ENCUMBRANCE
Gradual wearing away of soil; owner loses title to land eroded away
EROSION
Liability insurance for real estate agents that protects against claims of failure to perform duties or mistakes being made
ERRORS AND OMISSIONS INSURANCE
A lease clause allowing a landlord to pass increased costs along to tenant; i.e., can raise rent to tenant if landlord`s costs go up
ESCALATION CLAUSE
The right of the government to take private property when an owner dies intestate (no will) and has no heirs; also applies if owner abandons the property
ESCHEAT
The degree, quantity, nature and extent of ownership interest in real property
ESTATE
A lease with a definite beginning and ending date
ESTATE FOR YEARS
A life estate whereby the property goes to a third party (named by the grantor) when the grantee (life tenant) dies
ESTATE IN REMAINDER
A life estate whereby the property reverts back to the grantor when the grantee (life tenant) dies
ESTATE IN REVERSION
A clause in a deed that lists any encumbrances the buyer is subject to; many times, referred to simply as the reservations clause
EXCEPTIONS AND RESERVATIONS CLAUSE
Only for owner-occupied properties; a person can write off up to $250,000 of capital gains if single, $500,000 if married; must have been your personal residence for 2 of the past 5 years; can use exclusion repeatedly, not just once in a lifetime
EXCLUSION ON HOMES
A type of listing where the owner and one broker are authorized to sell and receive a commission
EXCLUSIVE AGENCY LISTING
A type of listing where only one broker is authorized to sell and receive a commission
EXCLUSIVE RIGHT TO SELL LISTING
One named in will to carry out will
EXECUTOR
Type of deed used by the executor to transfer property to those named in will
EXECUTOR`S DEED
Refers to a contractual obligation where all parties have clearly stated their intentions
EXPRESSED
