Definitions Flashcards
(141 cards)
1
Q
Salesperson
A
A person associated with a licensed broker who performs real estate activities under the licensed brokers supervision.
(Section 2. Unit 1. Lesson 2.)
2
Q
Broker
A
A person who performs real estate activities for another person for a fee or compensation of any kind.
(Section 2. Unit 1. Lesson 2.)
3
Q
Associate Broker
A
A licensed broker who chooses to work under the supervision and name of another licensed broker.
(Section 2. Unit 1. Lesson 2.)
4
Q
Activities Requiring Licensure
A
“for others, for compensation of any kind”
Section 2. Unit 1. Lesson 1.
5
Q
Land
A
The earth’s surface extending downward to the center of the earth and upward to infinity, including PERMANENTLY attached natural objects.
(Section 3. Unit 1. Lesson 1.)
6
Q
Real Estate
A
Land, plus all things attached to it naturally or artificially
(Section 3. Unit 1. Lesson 1.)
7
Q
Real Property
A
Real estate, plus the interests, benefits, and rights automatically included with real estate ownership.
(Section 3. Unit 1. Lesson 1.)
8
Q
Personal Property
A
Everything that’s not real property
Section 3. Unit 1. Lesson 1.
9
Q
Improvements
A
Permanent, man-made attachments that include things such as fencing, buildings, and walkways.
(Section 3. Unit 1. Lesson 1.)
10
Q
Rights Associated with Real Property
A
Enjoyment, Disposition, Possession, Control, Exclusion
Section 3. Unit 1. Lesson 1.
11
Q
Right of Enjoyment
A
Right to legally use the property however the owner desires
Section 3. Unit 1. Lesson 1.
12
Q
Right of Disposition
A
Right to determine how, when. and whether the property is to be sold, leased, mortgaged, or financed.
(Section 3. Unit 1. Lesson 1.)
13
Q
Right of Possession
A
Right to occupy the property
Section 3. Unit 1. Lesson 1.
14
Q
Right of Control
A
Right to determine how others may use the property
Section 3. Unit 1. Lesson 1.
15
Q
Right of Exclusion
A
Right to refuse others access to your property
Section 3. Unit 1. Lesson 1.
16
Q
Chattel
A
Personal Property
Section 3. Unit 1. Lesson 2.
17
Q
Emblements
A
Crops produced through cultivation that belong to the tenant during cultivation and after harvest. Considered the renter’s personal property.
(Section 3. Unit 1. Lesson 2.)
18
Q
Trade Fixtures
A
Equipment that is placed on or attached to real estate which the renter uses in their trade or business. Considered the renter’s personal property.
(Section 3. Unit 1. Lesson 2.)
19
Q
Fixture or Personal Property Tests
A
Agreement. Adaption. Method at Attachment.
Section 3. Unit 1. Lesson 3.
20
Q
Agreement (Fixture or Personal Property Tests)
A
What the parties have decided (usually in writing) as to whether an item will stay or go.
(Section 3. Unit 1. Lesson 3.)
21
Q
Adaption (Fixture or Personal Property Tests)
A
How the item is situated to the real estate.
Section 3. Unit 1. Lesson 3.
22
Q
Method of Attachment (Fixture or Personal Property Tests)
A
How & whether the item is permanently affixed to the property.
(Section 3. Unit 1. Lesson 3.)
23
Q
Severance
A
When an item that was real property becomes personal property by detaching it (severing it) from the land.
(Section 3. Unit 1. Lesson 4.)
24
Q
Annexation
A
Attachment of personal property to real property, thereby making it a fixture.
(Section 3. Unit 1. Lesson 4.)
25
Mobile Home
Constructed with transportation in mind.
| Section 3. Unit 1. Lesson 5.
26
Manufactured Home
Constructed in a factory, towed to its destination, and then anchored to the ground.
(Section 3. Unit 1. Lesson 5.)
27
Modular
NOT built with transportation in mind. It's pieces are constructed offsite, transported to it's permanent location, and then the build is complete.
(Section 3. Unit 1. Lesson 5.)
28
Scarcity
The concept that there is a finite amount of land.
| Section 3. Unit 2. Lesson 1.
29
Permanence of Investment
Involves improvement, such as sewer, roads, & utilities, that are long-term, stable investments with relatively stable returns over time.
(Section 3. Unit 2. Lesson 1.)
30
Location or Area Preference
A property's value is impacts by where it's situated and how interested people are in buying or living in the area.
(Section 3. Unit 2. Lesson 1.)
31
Immobility
The geographic location of a piece of land is fixed, it can never be changed.
(Section 3. Unit 2. Lesson 1.)
32
Indestructability
While improvements may deteriorate over time, the land itself can't be destroyed.
(Section 3. Unit 2. Lesson 1.)
33
Uniqueness
Land isn't interchangeable. One piece of land isn't exactly like another.
(Section 3. Unit 2. Lesson 1.)
34
Bundle of Rights
DEEP C. Right of Disposition, Right of Exclusion, Right of Enjoyment, Right of Possession, Right of Control.
(Section 3. Unit 2. Lesson 2.)
35
Sub Surface / Mineral Rights
The right to use underground resources ex. natural gas & minerals
(Section 3. Unit 2. Lesson 2.)
36
Air Rights
Open space above properties.
| Section 3. Unit 2. Lesson 2.
37
Right of Profit
Example - Right to harvest timber and sell it.
| Section 3. Unit 2. Lesson 2.
38
Littoral Water Rights
The region or share next to a lake or ocean. A stationary body of water. Littoral : Lake
(Section 3. Unit 2. Lesson 2.)
39
Riparian Water Rights
River Bank. A moving body of water.
| Section 3. Unit 2. Lesson 2.
40
Legal Description systems used in the US
Lot & Block. Metes & Bounds. Rectangular.
| Section 3. Unit 3. Lesson 2.
41
Lot & Block
Mainly used in urban & suburban areas.
| Section 3. Unit 3. Lesson 2.
42
Metes & Bounds
Uses monuments, compass headings, & directions.
| Section 3. Unit 3. Lesson 2.
43
Rectangular
Divides land into 6-mile-square townships, which can be further divided.
(Section 3. Unit 3. Lesson 2.)
44
Monument
A permanent physical marker that is either man-made or natural. Frequently used in the metes & bounds system.
(Section 3. Unit 3. Lesson 2.)
45
Metes
Direction & distance of a line forming the boundary of a property.
(Section 3. Unit 3. Lesson 3.)
46
Bounds
Physical features that define the boundaries of the land.
| Section 3. Unit 3. Lesson 3.
47
Township
Consists of 36 one-square-mile sections
| Section 3. Unit 3. Lesson 5.
48
Section
Consists of 640 acres
| Section 3. Unit 3. Lesson 5.
49
Principle Meridian
The north-south line that runs through the initial point.
| Section 3. Unit 3. Lesson 5.
50
Range Lines
North-south lines that do not run through the initial point
(Section 3. Unit 3. Lesson 5.)
51
Township Lines
East-west lines that do no run through the initial point
| Section 3. Unit 3. Lesson 5.
52
Base Line
East-west lines that run through the initial point
| Section 3. Unit 3. Lesson 5.
53
Survey
Where the legal description appears
| Section 3. Unit 3. Lesson 6.
54
Survey Sketch
Visual depiction of location & dimensions of a property
| Section 3. Unit 3. Lesson 6.
55
Spot Survey
Location, size, & shape of improvements on a property.
| Section 3. Unit 3. Lesson 6.
56
Voluntary Lien
Lien created by the owner of the property
| Section 3. Unit 4. Lesson 2.
57
Involuntary Lien
Lien placed against a property without the owner's consent
| Section 3. Unit 4. Lesson 2.
58
General Lien
Lien placed against all property belonging to an individual
| Section 3. Unit 4. Lesson 2.
59
Specific Lien
Lien placed against a specific piece of property
| Section 3. Unit 4. Lesson 2.
60
What causes a property tax lien to be placed?
Unpaid real estate taxes
| Section 3. Unit 4. Lesson 2.
61
What causes a mechanics lien to be placed?
Failure to pay for work performed on the property
| Section 3. Unit 4. Lesson 2.
62
What causes a judgement lien to be placed?
Failure to pay monetary damages from a lawsuit
| Section 3. Unit 4. Lesson 2.
63
What causes a mortgage lien to be placed?
Financing a home purchase
| Section 3. Unit 4. Lesson 2.
64
Four Types of Easements
Easement appurtenant, Easement in gross, Easement by necessity, Easement by prescription
(Section 3. Unit 4. Lesson 2.)
65
Easement Appurtenant
Permanent right to use another's land for the benefit of a neighbor
(Section 3. Unit 4. Lesson 2.)
66
Easement in Gross
Right to use the land. Not necessarily an adjoining property
(Section 3. Unit 4. Lesson 2.)
67
Easement by Necessity
Usually involves access to a road
| Section 3. Unit 4. Lesson 2.
68
Easement by Prescription
Acquired through years of use
| Section 3. Unit 4. Lesson 2.
69
Possessory Rights
Rights to occupy a property
| Section 3. Unit 4. Lesson 2.
70
Non-Possessory Rights
Easements
| Section 3. Unit 4. Lesson 2.
71
Party Wall
Constructed on boundary line separating two properties
| Section 3. Unit 4. Lesson 2.
72
License (Encumbrance)
Temporary permission to use a property
| Section 3. Unit 4. Lesson 5.
73
Lis Pendens
Legal notice that a lawsuit is pending that affects the title of a property
(Section 3. Unit 4)
74
Freehold Estate
Ownership. For an undetermined length of time
| Section 3. Unit 5. Lesson 1.
75
Leasehold Estate
Renting. Provides interest in real estate for a limited time
(Section 3. Unit 5. Lesson 1.)
76
Fee Simple Ownership / Fee Simple Absolute
Inheritable property that retains the entire bundle of rights
(Section 3. Unit 5. Lesson 1.)
77
Life Estate
Property possessed for someones lifetime
| Section 3. Unit 5. Lesson 1.
78
Fee Simple Determinable
The title remains with the new owner as long as the conditions of ownership are met. Type of Fee Simple Defeasible estate. Inheritable Freehold estate.
(Section 3. Unit 5. Lesson 1.)
79
Fee on Condition / Fee Simple Submit to a Condition Subsequent
The estate continues unless a specific event occurs, in which case ownership may revert to the owner or the owners successors. Type of Fee Simple Defeasible estate. Inheritable.
(Section 3. Unit 5. Lesson 1.)
80
Remainderman
A life estate with remainder interest refers to a situation in which a remainderman named by the owner when forming th estate receives title to the property upon the death of the life tenant.
(Section 3. Unit 5. Lesson 1.)
81
Act of Waste
An abuse of a property by a person who holds interest through a life estate.
(Section 3. Unit 5. Lesson 1.)
82
Revisionary Interest
A life estate in which property title reverts to the owner upon death of the life tenant.
(Section 3. Unit 5. Lesson 1.)
83
Dower
Property held by the wife - widow
| Section 3. Unit 5. Lesson 1.
84
Curtesy
Property held by the husband - widow
| Section 3. Unit 5. Lesson 1.
85
Estate in Severalty
One person owns the property
| Section 3. Unit 5. Lesson 2.
86
Tenants in Common
Hold an undivided interest in the entire property. Ownership percentage passes to heirs after death.
(Section 3. Unit 5. Lesson 2.)
87
Joint Tenancy
If any of the owners die, the others own the deceased persons shares.
(Section 3. Unit 5. Lesson 2.)
88
Tenancy by the Entirety
If one spouse dies, the other becomes the sole owner. Has the right of survivorship. If they divorce, their tenancy by the entirety would end automatically and become tenants in common.
(Section 3. Unit 5. Lesson 3.)
89
Beneficiary (Trusts)
Person benefiting from the trust.
| Section 3. Unit 5. Lesson 4.
90
Trustee (Trusts)
Person carrying out the trustors wishes
| Section 3. Unit 5. Lesson 4.
91
Trustor (Trusts)
Person conveying title to a trustee.
| Section 3. Unit 5. Lesson 4.
92
Living Trust
Created during a persons lifetime. The trustee manages the trust according to the terms of the trust. A living trust is established to convey property.
(Section 3. Unit 5. Lesson 4.)
93
Testamentary Trust
Created according to the terms of the will of a deceased person. Does not avoid probate.
(Section 3. Unit 5. Lesson 4.)
94
Syndicate
Organizations with many participants with the common purpose of making a profit from a real estate investment.
(Section 3. Unit 5. Lesson 7.)
95
Joint Venture
2 or more people come together for the single, temporary purpose of buying real estate, improving the properties, and selling for a profit.
(Section 3. Unit 5. Lesson 7.)
96
Express Agency
An agency agreement this is understood and agreed to by both parties.
(Section 4. Unit 1. Lesson 2.)
97
Implied Agency
An agency relationship that exists because you behave in a way that leads the customer to believe you to be their agent.
(Section 4. Unit 1. Lesson 2.)
98
Ratification
Acceptance after the fact, either through paperwork or actions of the parties
(Section 4. Unit 1. Lesson 2.)
99
Estoppel
Prevention of a legal claim that is contrary to the persons own actions
(Section 4. Unit 1. Lesson 2.)
100
Acronym for Fiduciary Duties for Clients
OLD CAR
| Section 4. Unit 2. Lesson 2.
101
Obedience (Fiduciary Duties)
Follow clients instructions, lawfully
| Section 4. Unit 2. Lesson 2.
102
Loyalty (Fiduciary Duties)
Put clients interests ahead of all others
| Section 4. Unit 2. Lesson 2.
103
Disclosure (Fiduciary Duties)
Divulge all facts pertinent to the transaction
| Section 4. Unit 2. Lesson 2.
104
Confidentiality (Fiduciary Duties)
Keep information shared by the client private. Do not end when client relationship ends.
(Section 4. Unit 2. Lesson 2.)
105
Accounting (Fiduciary Duties)
Properly handle all money or property entrusted to you.
| Section 4. Unit 2. Lesson 2.
106
Reasonable skill and care (Fiduciary Duties)
Provide clients with quality, knowledgeable, and prudent service
(Section 4. Unit 2. Lesson 2.)
107
Acronym for Customer Duties
DRHP. Old Cars Drip.
| Section 4. Unit 2. Lesson 3.
108
Meaning of DRHP
D- Disclosure of material facts
R- Reasonable skill and care in performance
H- Honesty and fair dealing
P- Prompt presentation of all written offers and counter offers
(Section 4. Unit 2. Lesson 3.)
109
Appraisal
Unbiased estimate of the value of a particular property as of a particular date
(Section 5. Unit 1. Lesson 2.)
110
Mortgage Value
Price at which the property can be loaned on or sold for a foreclosure sale
(Section 5. Unit 1. Lesson 2.)
111
Investment Value
Return on investment a property may provide
| Section 5. Unit 1. Lesson 2.
112
Insured Value
Cost to replace or rebuild a property
| Section 5. Unit 1. Lesson 2.
113
Evaluation
Study of a property, potentially for land use or marketability
(Section 5. Unit 1. Lesson 2.)
114
Comparative Market Analysis (CMA)
An unbiased estimate or opinion of the market value of real property by a real estate licensee who isn't a licensed or certified appraiser
(Section 5. Unit 1. Lesson 3.)
115
Brokers Price Opinion (BPO)
Usually ordered by a lender in a foreclosure situation in lieu of a full appraisal. CMA w/ a different name for a different purpose.
(Section 5. Unit 1. Lesson 3.)
116
Price (Appraisals)
What a buyer had paid for a property and what the seller has accepted
(Section 5. Unit 1. Lesson 4.)
117
Cost (Appraisals)
What it would cost to recreate a property if it disappeared off the face of the earth.
(Section 5. Unit 1. Lesson 4.)
118
Value (Appraisals)
What a property is worth
| Section 5. Unit 1. Lesson 4.
119
Acronym for Factors Influencing Value
DUST
| Section 5. Unit 1. Lesson 5.
120
Demand (Factors Influencing Value)
Relates to the properties popularity
| Section 5. Unit 1. Lesson 5.
121
Utility (Factors Influencing Value)
Speaks to the properties function
| Section 5. Unit 1. Lesson 5.
122
Scarcity (Factors Influencing Value)
Reflects the market supply or lack thereof
| Section 5. Unit 1. Lesson 5.
123
Transferability (Factors Influencing Value)
The ease with which the deed can be transferred and the property put to the desired use.
(Section 5. Unit 1. Lesson 5.)
124
Sales Comparison Approach (Appraisals)
Used in nearly all residential appraisals. Uses a process of comparison with similar properties that have a known sale price to determine a subject propertys market value.
(Section 5. Unit 2. Lesson 1.)
125
Principle of Substitution
The value of a property is equal to the value of an equivalent subject property.
(Section 5. Unit 2. Lesson 1.)
126
Cost Approach (Appraisals)
Measures value as a cost of production, including the acquisition of the land and the construction costs. i.e. cost of rebuilding
(Section 5. Unit 2. Lesson 2.)
127
Depreciation
A loss in value
| Section 5. Unit 2. Lesson 2.
128
Physical Depreciation
A loss in value caused by deterioration in physical condition
(Section 5. Unit 2. Lesson 2.)
129
Functional Obsolenscence
A loss in value caused by defects in design, such as a poor floor plan
(Section 5. Unit 2. Lesson 2.)
130
External Depreciation / Economic Obsolenscence
A loss in value caused by an undesirable or hazardous influence offsite i.e. airport noise
(Section 5. Unit 2. Lesson 2.)
131
Curable Depreciation
An item that can be repaired or replaced, and where the cost to cure the item is less than or the same as the anticipated increase in the propertys value
(Section 5. Unit 2. Lesson 2.)
132
Incurable Depreciation
Items not practical to correct
| Section 5. Unit 2. Lesson 2.
133
Site Value
Assumes the land is vacant and bases opinion on highest and best use
(Section 5. Unit 2. Lesson 2.)
134
Reproduction Cost
Cost to build an exact replica of the subject property with the same materials and deficiencies
(Section 5. Unit 2. Lesson 2.)
135
Replacement Cost
Reflects the cost to build a functionally equivalent property
(Section 5. Unit 2. Lesson 2.)
136
Income Approach / Income Capitalization Approach (Appraisals)
Uses the income the property generates to estimate a properties value
(Section 5. Unit 2. Lesson 3.)
137
Gross Rent Multiplier (GRM)
A valuation method used for rental properties and estimates how rental income properties relates to value. Best used for 1 to 4 family units where the primary use is as a rental property.
(Section 5. Unit 2. Lesson 3.)
138
Gross Income Multiplier (GIM)
The same as GRM, but uses all sources of income from the property rather than only rent. Best used for 5+ unit income properties with multiple sources of income.
(Section 5. Unit 2. Lesson 3.)
139
Direct Capitalization
Uses a single year's expected income divided by a capitalization rate to arrive at a market value for the property. Generally appropriate for small to med sized properties and those with stable forecast net income.
(Section 5. Unit 2. Lesson 3.)
140
Yield Capitalization
Used when the investor wants a value based on long-term holdings, along with the effect of debt repayment and potential resale of the property on the ultimate return on investment.
(Section 5. Unit 2. Lesson 3.)
141
Federally Regulated Transaction
Apply to financing, refinancing, and the use of real property as security for a loan when the property is valued above $400k. Under $400k is exempt.
(Section 5. Unit 3. Lesson 2.)
