LEASING AND PROPERTY MANAGEMENT Flashcards
1
Q
Exchanging like-kind property for like-kind property, resulting in a deferral of capital gains tax; also called a tax-free exchange
A
1031 EXCHANGE
2
Q
Written history of property
A
ABSTRACT
3
Q
A client level duty relating to account of earnest money, actions, etc.
A
ACCOUNTING
4
Q
Gradual Build up of soil; person gains title to added land built up on property
A
ACCRETION
5
Q
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.
A
ACCURATE
6
Q
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
A
ACKNOWLEDGE
7
Q
A situation where a person has actual or personal knowledge of a transaction, etc.
A
ACTUAL NOTICE
8
Q
Based on value
A
AD VALOREM
9
Q
Court appointed person to oversee estate distribution of deceased; only applies when one dies intestate (without a valid will)
A
ADMINISTRATOR
10
Q
Squatters Rights; can gain title by using someone elses property continuously, openly and notoriously (without permission) for a certain period of time
A
ADVERSE POSSESSION
11
Q
One who is hired to represent another
A
AGENT
12
Q
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
A
ALIENATION
13
Q
A right, privilege or improvement that is permanently attached to the land
A
APPURTENANCE
14
Q
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
A
APPURTENANT EASEMENT
15
Q
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.
A
ASBESTOS
16
Q
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
A
ASSIGNMENT OF LEASE
17
Q
The title given to someone who has the power of attorney; can sign on others behalf
A
ATTORNEY-IN-FACT
18
Q
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.
A
AVULSION
19
Q
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)
A
BARGAIN AND SALE DEED
20
Q
Transfer of personal property through a will
A
BEQUEST
21
Q
Where a party to a contract does not perform according to the terms of the agreement
A
BREACH
22
Q
A commercial site where the possibility of environmental contamination exists
A
BROWNFIELD
23
Q
An area separating two incompatible areas
A
BUFFER ZONE
24
Q
Profit made on an investment item, such as real estate
A
CAPITAL GAIN
25
A client level duty exercising knowledge and skill
CARE
26
Comprehensive Environmental Response, Compensation and Liability Act. A federal law which prohibits the dumping of hazardous waste on property.
CERCLA
27
List of recorded documents
CHAIN OF TITLE
28
Another word for personal property; comes from the word "cattle"
CHATTEL
29
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
30
Refers to a squatter`s rights to ownership once time period has been met
COLOR OF TITLE
31
Property acquired during marriage; spouses have equal interest in property
COMMUNITY PROPERTY
32
Where two or more own property together at the same time
CONCURRENT ESTATES
33
The PROCESS used to take the property when the government exercises the right of Eminent Domain
CONDEMNATION
34
Property deeded with conditions; e.g., must be used as a school. Also referred to as a defeasible fee
CONDITIONAL FEE
35
A multi-unit building where the occupants each own their individual units and receive a deed granting ownership of the property
CONDOMINIUM
36
A client level duty relating to maintaining confidential information of the client
CONFIDENTIALITY
37
An item of value; one must have consideration to have a valid deed or contract
CONSIDERATION
38
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
39
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
40
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
41
A life estate interest a husband receives in property upon wife`s death, regardless of debts owned on the property
CURTESY
42
Voluntarily giving land to government; typically done by a developer
DEDICATION
43
Property deeded with conditions; e.g., must be used as a school. Also referred to as a conditional fee
DEFEASIBLE FEE
44
Title is transferred from seller to buyer when the deed is delivered and accepted
DELIVERY AND ACCEPTANCE
45
A transfer of rights in real property through a lease
DEMISE
46
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
47
Improves the lots
DEVELOPER
48
Transfer of real property through a will
DEVISE
49
Receiver of real property through a will
DEVISEE
50
A client level duty relating to disclosing to a client all materials facts regarding the transaction
DISCLOSURE
51
Land benefited or in favor of the easement
DOMINANT TENEMENT
52
A life estate interest a wife receives in property upon husband`s death, regardless of debts owned on the property
DOWER
53
Going from a more active use to a less active use; e.g., multi-family to single family
DOWNZONING
54
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
55
Gives someone else the right to use a part of your property while you still retain the ownership rights
EASEMENT
56
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
57
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
58
Growing crops in the field; allows the seller to come back and harvest after the sale
EMBLEMENTS
59
The RIGHT of the government to take private property for public good. The property owner is paid compensation for the property
EMINENT DOMAIN
60
Trespassing; an improvement or appurtenance that extends across the property line; e.g., fences, tree limbs, etc.
ENCROACHMENT
61
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
62
Gradual wearing away of soil; owner loses title to land eroded away
EROSION
63
Liability insurance for real estate agents that protects against claims of failure to perform duties or mistakes being made
ERRORS AND OMISSIONS INSURANCE
64
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
65
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
66
The degree, quantity, nature and extent of ownership interest in real property
ESTATE
67
A lease with a definite beginning and ending date
ESTATE FOR YEARS
68
A life estate whereby the property goes to a third party (named by the grantor) when the grantee (life tenant) dies
ESTATE IN REMAINDER
69
A life estate whereby the property reverts back to the grantor when the grantee (life tenant) dies
ESTATE IN REVERSION
70
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
71
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
72
A type of listing where the owner and one broker are authorized to sell and receive a commission
EXCLUSIVE AGENCY LISTING
73
A type of listing where only one broker is authorized to sell and receive a commission
EXCLUSIVE RIGHT TO SELL LISTING
74
One named in will to carry out will
EXECUTOR
75
Type of deed used by the executor to transfer property to those named in will
EXECUTOR`S DEED
76
Refers to a contractual obligation where all parties have clearly stated their intentions
EXPRESSED
77
A title insurance policy that may cover more things than a standard policy, such as unrecorded liens, etc.
EXTENDED POLICY
78
A customer level duty relating to treating all customers fairly
FAIR
79
The maximum rights one can have in owning real estate; also called fee simple absolute.
FEE SIMPLE
80
Loyalty and trust; what an agent owes to a principal (client)
FIDUCIARY
81
Going from personal to real property; item that was once personal property but is now attached
FIXTURE
82
What we usually think of as OWNERSHIP. There is no definite ending date and it is for at least a lifetime.
FREEHOLD ESTATES
83
A promise made by the seller in a general warranty deed assuring the buyer that the seller will provide or sign documents in the future if necessary to help prove buyer`s title
FURTHER ASSURANCE
84
A person who represents someone else in several areas on an ongoing basis; e.g., property manager to owner; also salesperson to broker
GENERAL AGENT
85
Tax on land plus improvements; pays for school, police and fire protection, etc.
GENERAL ASSESSMENT
86
Insurance a real estate brokerage can obtain to protect against someone being harmed or injured on the brokerage premises
GENERAL LIABILITY INSURANCE
87
A lien that applies to all of one`s property, real and personal
GENERAL LIEN
88
The instrument used to transfer title from a seller to a buyer whereby seller gives buyer greatest protection; seller promises the covenant of seizin, quiet enjoyment, against encumbrances, further assurance and warranty forever
GENERAL WARRANTY DEED
89
A lease where the payments can go up or down, but are pre-determine
GRADUATED LEASE
90
The person receiving title to real property; typically the buye
GRANTEE
91
Words of conveyance in a deed; using property wording and verbiage in a deed
GRANTING CLAUSE
92
The person transferring title to real property; the seller
GRANTOR
93
A lease where the landlord pays taxes, assessments, insurance, etc.
GROSS LEASE
94
A lease for ground; usually long-term; e.g., farmers, gas stations, et
GROUND LEASE
95
In a deed, contains just these words: "To have and to hold"
HABENDUM
96
Insurance a real estate brokerage can obtain on business property to protect against vandalism
HAZARD INSURANCE
97
A law that protects a family`s home from creditors; does not apply to real estate taxes or home mortgage
HOMESTEAD
98
A customer level duty relating to being honest with customers
HONEST
99
Refers to a contractual obligation that is created by one`s action
IMPLIED
100
A lien for non-payment of income tax to the IRS (Internal Revenue Service)
INCOME TAX LIEN
101
A lease where the payments can go up or down but are based on some type of index, such as the consumer price index
INDEX LEASE
102
Dying without a valid will
INTESTATE
103
A form of ownership where two or more parties own property together; carries the right of survivorship (when an owner dies, the ownership interest goes to the surviving owners, not the heirs of the deceased)
JOINT TENANCY
104
A lien for personal debts; covers all real and personal property
JUDGMENT LIEN
105
A spot on the earth that goes down to the center of the earth and up to infinity
LAND
106
A federal law concerning lead based paint mandating the following disclosures prior to contract obligation for residential properties built prior to 1978: 1) buyers being given a pamphlet concerning lead based paint, 2) sellers disclosure to buyers of any known lead based paint on property and 3) buyers being given a 10 day inspection period regarding lead based paint.
LEAD BASED PAINT LAW
107
What we usually think of as RENTING or LEASING. It is for a definite period of time, i.e., a limited duration.
LEASEHOLD ESTATES
108
Receiver of lease (tenant)
LESSEE
109
Giver of lease (landlord)
LESSOR
110
Personal permission to use someone else`s property; does not encumber title as an easement does
LICENSE
111
A money encumbrance against a property
LIENS
112
A property that is deeded to someone for their life or the life of another
LIFE ESTATES
113
Latin for "pending litigation or action"
LIS PENDENS
114
Property bordering a lake or ocean
LITTORAL
115
(Fiduciary) A client level duty relating to doing what is in your client`s best interest
LOYALTY
116
Plan for a cities future growth
MASTER LAND PLAN
117
A lien designed for people who make improvements on property and are wrongfully not paid; e.g., contractors, sub-contractors and material vendors who are not paid for work performed or materials supplied
MECHANIC`S LIEN
118
A fungus that tends to grow in moist areas; very common in areas of high humidity or in properties that are too air-tight
MOLD
119
A voluntary lien where one uses property as security for a loan
MORTGAGE LIEN
120
(lender) A title insurance policy covering a lender for the outstanding loan balance
MORTGAGEE`S POLICY
121
A lease where the tenant pays all or part of taxes, assessments, insurance, etc. Taxes paid by tenant would be tax deductible for the tenant.
NET LEASE
122
Normally illegal; this is where the real estate commission is the sale price less the seller`s required proceeds
NET LISTING
123
Before zoning; similar to a grandfather clause; allows continued use of a property that is technically in violation of the current zoning law because the owner was using the property a certain way before the zoning change. Property can be sold as non-conforming use if buyer uses it the same as the seller had; however, if property burns down, generally property then must conform to the new, current zoning use.
NON-CONFORMING USE
124
A clause in a lease and lending document allowing for continuation of a lease even if the property is foreclosed on
NON-DISTURBANCE CLAUSE
125
Without permission (hostile); this is a requirement for a person claiming rights to a property either through adverse possession or an easement by prescription
NOTORIOUS
126
(Performance) A client level duty following instructions of a client
OBEDIENCE
127
A type of listing where everyone is authorized to sell and receive commission, including the owner; the only one who gets paid is the one who is the procuring cause (found the buyer)
OPEN LISTING
128
Costs incurred in a property management situation, such as utilities and repairs; does not include vacancies
OPERATING COSTS
129
Refers to a contractual obligation that is created by what appears to be; similar to implied
OSTENSIBLE
130
A situation where two structures share the same wall; e.g., a duplex
PARTY WALL
131
A lease where the rent is based on a percentage of sales; normally used in retail leases
PERCENTAGE LEASE
132
A lease that runs from period to period; e.g., a month-to-month lease
PERIODIC TENANCY
133
Anything that is easily movable; e.g., camera, grill, etc.
PERSONAL PROPERTY
134
(PUD) Diverse uses of land in one area; requires special zoning (referred to as overlay, cluster or density zoning)
PLANNED UNIT DEVELOPMENT
135
Keeping things in order; e.g., zoning and building codes fall under police power
POLICE POWER
136
A written document authorizing one to sign legal documents on behalf of another
POWER OF ATTORNEY
137
One who hires an agent for representation
PRINCIPAL / CLIENT
138
A special court for handling estates upon one`s death. Court determines who gets what property and in what amounts if the deceased died intestate (without a valid will)
PROBATE COURT
139
An agreement between an owner and property manager that shows basic duties of the property manager; generally this agreement does not contain a vacancy rate
PROPERTY MANAGEMENT AGREEMENT
140
A lien for non-payment of real estate taxes; this always takes priority getting paid off at a foreclosure sale
PROPERTY TAX LIEN
141
Protects broker in case negotiations extend past the expiration date of listing; this clause is normally standard in an agency agreement
PROTECTIVE PERIOD CLAUSE
142
(for another`s life) A life estate where the grantee owns a property based on someone else`s life
PUR AUTRE VIE
143
A promise assuring no third party claims; e.g., in a lease, a tenant receives the right of quiet enjoyment from a landlord, thus relieving tenant from having to worry about another party claiming rights to that same space
QUIET ENJOYMENT
144
Court action to clear a cloudy title; e.g., ownership disputes, adverse possession claims, encroachments, etc.
QUIET TITLE SUIT
145
A type of deed transferring title from a seller to a buyer where NO promises are made by the seller. The seller says IF I own it, but I`m not saying I do, I give you whatever rights I MAY have. This deed is typically used to quiet cloudy titles.
QUITCLAIM DEED
146
Naturally decaying radioactive gases in the ground that can infiltrate built structures, such as houses; can be cancer causing
RADON GAS
147
Government regulations relating to subdivisions; e.g., most cities require streets, sewers, easements, etc.
REGULATIONS
148
Third party who receives fee simple title upon death of the grantee (life tenant)
REMAINDERMAN
149
A form of life estate where the seller sells the property but retains (reserves) a life estate interest in that same property for the seller`s lifetime
RESERVATION
150
A private agreement contained in a deed that restricts the use of a property; e.g., certain types of fences or roofs required. Also referred to as restrictive covenants or deed restrictions.
RESTRICTIONS
151
A private agreement contained in a deed that restricts the use of a property; e.g., certain types of fences or roofs required. Also referred to as deed restrictions
RESTRICTIVE COVENANTS
152
Upon expiration of a lease, the property goes back to original lessor (landlord); also, a life estate in reversion is where once a grantee (life tenant) dies, the property goes back to original grantor
REVERSION
153
Found in joint tenancy, when one owner dies, the ownership interest passes to the surviving owners
RIGHT OF SURVIVORSHIP
154
Property bordering a flowing waterway; e.g., river or stream
RIPARIAN
155
A title insurance clause stating that certain items are excluded from coverage; e.g., government regulations such as zoning
SCHEDULE OF EXCEPTIONS
156
Seized of title; A term where seller promises ownership of property and has the right to sell
SEIZIN
157
Property acquired before marriage; individual spouses retain sole ownership interest
SEPARATE PROPERTY
158
Land burdened by the easement
SERVIENT TENEMENT
159
A situation where one person only owns the property; also, how corporations take title
SEVERALTY
160
Going from real to personal property; e.g., cutting down a tree
SEVERANCE
161
Transfers property to buyer at foreclosure sale; e.g. for non-payment of mortgage
SHERIFF`S DEED
162
A federal law that prohibits groups of brokers setting a fixed price for services
SHERMAN ANTI-TRUST LAWS
163
A person who represents someone else one time in one area; e.g., broker to seller
SPECIAL AGENT
164
Property tax for improvements that benefit certain properties; e.g., sewers and sidewalks
SPECIAL ASSESSMENT
165
A type of deed transferring title from a seller to a buyer. However, the seller only makes promises regarding ownership, encumbrances, etc. during the time period in which the seller owned the property, no promises before that.
SPECIAL WARRANTY DEED
166
A lien that applies only to one specific property
SPECIFIC LIEN
167
Changing the zoning of one particular spot; normally for public good
SPOT ZONING
168
A title insurance policy that covers forged documents, undisclosed heirs, etc.
STANDARD POLICY
169
An agency situation where one agent is authorized to use another agent to represent the client; historically, this is where two brokers, the listing and selling broker, both represent the seller; buyer is a customer and is unrepresented
SUB-AGENCY
170
Divides land into lots for sale
SUBDIVIDER
171
A partial transfer of rights in a lease where just the original tenant remains liable for the lease payments; the new tenant is a lessee of the original tenant
SUBLEASING
172
Signing over rights in a claim to a title insurance company in return for getting paid off
SUBROGATION
173
A lawsuit where one of the owners institutes court action to force sale of property by all parties
SUIT TO PARTITION
174
A public official who appraises property for tax purposes to determine only the assessed value
TAX ASSESSOR
175
Total of all assessed values
TAX BASE
176
Transfers property to buyer at foreclosure sale for non-payment of taxe
TAX DEED
177
Exchanging like-kind property for like-kind property, resulting in a deferral of capital gains tax; also called a 1031 exchange
TAX-FREE EXCHANGE
178
A lease where the tenant stays over without permission; landlord suffers
TENANCY AT SUFFERANCE
179
A lease where the tenant does have permission to occupy but nothing is in writing; e.g., a landlord continuing to accept rent from a tenant even after expiration of the original lease
TENANCY AT WILL
180
Very similar to joint tenancy, with the difference being that the owners must be husband and wife
TENANCY BY THE ENTIRETIES
181
An individual interest in group ownership; the ownership interest can be unequal, the parties all share possession, and the heirs of the deceased receive the property upon the death of one of the owners (ownership does NOT transfer to the other co-owners)
TENANCY IN COMMON
182
Dying with a valid will
TESTATE
183
Deceased person who had made a will
TESTATOR
184
Fee simple ownership to a unit for a set period of time each year; interval ownership
TIME SHARING
185
Insures the title to a particular piece of property
TITLE INSURANCE
186
Item installed by a commercial tenant for business use; e.g. display cases
TRADE FIXTURES
187
After zoning; this is a small deviation in the current zoning law that still conforms to the over all general plan for the area. Variances are generally granted for things like setback requirements, front footage requirements, etc
VARIANCE
188
A type of easement for viewing across another`s propert
VIEW EASEMENT
189
A promise made by the seller in a general warranty deed that says if the seller provides faulty title, the seller will return the purchase price money back to the buyer; in essence, a money back guaranty
WARRANTY FOREVER
190
Difference between earth`s surface and percolating water
WATER TABLE
191
A procedure where a sheriff seizes property and sells to satisfy a judgment
WRIT OF EXECUTION
192
The regulation of structures and uses of property within designated areas
ZONING
