Property Ownership

Question 1

third party

Answer 1

in an agency relationship, a person (or entity) with whom the agent deals as a representative of the client; can be involved in the transaction but not as one of the principals; referred to nationally as a customer

Question 2

multiple listing service (MLS)

Answer 2

a service in which member brokers pool their listings and offer cooperation and compensations to the other member brokers usually owned and operated by a local association of REALTORS®

Question 3

leasehold estate

Answer 3

the temporary right of a tenant to occupy real estate over the term of a lease

Question 4

tenant

Answer 4

the party who has legal possession and use of real property

Question 5

abandonment

Answer 5

when a tenant leaves a property before the expiration of the lease agreement

Question 6

appurtenance

Answer 6

a property right, privilege, or improvement that is permanent and passed along when a property is sold unless a contrary intention is manifested; examples include rights-of-way, easements, water rights, and improvements; also an item that is permanently attached to a property so that it then becomes part of the property, such as an air conditioner

Question 7

mineral rights

Answer 7

subsurface rights of an owner of real property which extend downward to the center of the earth; these rights are real property

Question 8

trade fixture

Answer 8

an article of personal property or equipment that a business tenant installs for use in his/her trade that may be removed by the tenant before the lease expires

Question 9

landlord

Answer 9

the owner of real estate who rents it to another individual

Question 10

arbitration

Answer 10

two parties in disagreement agree to accept the decision of a third party who acts both as a mediator and a judge; this process avoids the excessive time and high costs of a court action

Question 11

commission

Answer 11

an agent’s compensation for services performed in a real estate transaction, typically a percentage of the selling price or rent

Question 12

chattel

Answer 12

a synonym for personal property that is movable; comes from the word “cattle”

Question 13

interest

Answer 13

the sum paid or accrued in return for the use of money

Question 14

zoning

Answer 14

a right of state governments to regulate the height, bulk, and use of private property to protect the health, morals, welfare, and safety of the public; usually delegated to the local level

Question 15

lateral support

Answer 15

the right of a property owner to have his/her land physically supported by both adjoining land and underground structures

Question 16

legal concept of land ownership

Answer 16

a three-dimensional definition of land as property on the surface as well as the space above it (air) and ground below it (underground)

Question 17

lease

Answer 17

a contract for a less-than-freehold estate or right in real property; a contract between an owner and tenant setting forth the conditions under which the tenant may occupy and use the property, including the length of occupancy

Question 18

market

Answer 18

financial environment

Question 19

air rights

Answer 19

legal authority for an individual to develop and control unused air space or vertical plane above land s/he owns

Question 20

appurtenant

Answer 20

attached to the land (such as a house) or the deed (such as a recorded easement)

Question 21

property owner

Answer 21

a person, partnership, or corporation acting as the client or principal in a property management agreement

Question 22

commercial property

Answer 22

a classification of real estate that includes income-producing property such as office buildings, gasoline stations, restaurants, shopping centers, hotels, and motels, parking lots, and stores

Question 23

agreement

Answer 23

a mutual understanding or arrangement; may or may not be a contract

Question 24

emblements

Answer 24

crops nurtured in the year of the transfer or sale of the property; considered to be personal property of the tenant, not the land owner

Question 25

natural drainage

Answer 25

the unassisted flow of excess surface water derived from rain or snow into neighboring rivers and streams

Question 26

exception

Answer 26

a part of real property described in the deed that is left out, withheld, or excepted from it

Question 27

attachment

Answer 27

the legal process when real or personal property is seized by the court and held as security for satisfaction of a judgment

Question 28

Test for Fixtures

Answer 28

M.A.R.I.A.; Method of Attachment, Adaptation, Relationship of the Parties, Intention of the Party Attaching, and Agreement