Principal Terms Flashcards
What does ‘Real’ refer to in real estate?
Refers to permanent things attached to the land (e.g., buildings, sidewalks).
What does ‘Personalized’ refer to in real estate?
Refers to movable and intangible things (e.g., furniture).
What is an ‘Estate’ in real estate?
All that a person owns, including both real property (realty) and personal property (personalty).
What is Real Property (Realty)?
Includes land and permanently affixed items (e.g., buildings, sidewalks).
Requires written contracts with public notice for transactions.
What is Personal Property (Personalty)?
Includes movable and intangible items (e.g., furniture).
Transactions can be oral or written.
What are Interests in Property?
Created by owners who pledge their property to achieve an objective while retaining ownership.
Who is a Lessee?
A person leasing land who has the right to possess the land for a specified period.
Who is a Lessor?
Property owner who grants lease.
Who is a Lender?
Has rights specified in the mortgage documents but does not possess the real estate.
What are Estates in Possession?
The owner has current rights to possess and use the property.
What are Estates Not in Possession?
The owner has future rights to possess the property.
What is a Reversion?
The property returns to the grantor after a temporary estate ends.
Example: Jane grants a life estate to Tom. When Tom dies, the property reverts to Jane.
What is a Remainder?
The property passes to a third party (not the grantor) after a temporary estate ends.
Example: Jane grants a life estate to Tom, with the remainder to Susan. When Tom dies, the property passes to Susan.
What are Freehold Estates?
Ownership with indefinite duration.
What is a Fee Simple Estate?
The most complete form of ownership, allowing the owner to divide, sell, or borrow against the property.
What is a Life Estate?
Ownership lasts for the owner’s lifetime and reverts back to the grantor or a designated third party upon death.
What are Leasehold Estates?
Rights to possess and use the property for a specified period, with a definite expiration date.
What are Ownership Rights?
Also referred to as real property.
Governed by written and signed contracts to ensure legal clarity and public notice.
What is an Estate for Years?
Specifies an exact duration of tenancy.
What is an Estate from Year-to-Year?
Automatically renews for subsequent periods unless proper notice of termination is given.
What is an Interest in real property?
A right or claim on real property.
Example: An owner of real estate in fee simple may pledge or encumber their property as a condition for a loan.
What are Encumbrances?
Conditions or claims that limit the ownership or use of real estate, such as mortgages or liens.
What are Easements?
A nonpossessory interest in land.
Grants the right to use another’s property for a specific purpose (e.g., access roads or utility lines).
What is the purpose of Title Assurance?
Ensures buyers can verify that sellers have the ability to convey ownership as represented.
What is a Title?
A collection of documents, records, and acts proving property ownership.
What are the methods of Title Assurance?
General Warranty Deed, Special Warranty Deed, Bargain and Sale Deed.
What does a General Warranty Deed guarantee?
Guarantees the title is free of any defects, past or present.
What does a Special Warranty Deed guarantee?
Guarantees title issues only during the seller’s ownership period.
What does a Bargain and Sale Deed imply?
Implies the seller owns the property but offers no guarantees about title defects.
