Real Estate

economic obsolescence

the loss in value of an asset or property caused by external forces outside the owner's control

accretion

the gradual, natural addition of land to a waterfront property through the accumulation of sand, soil, or sediment deposited by moving water like a river, lake, or ocean. [1, 2]

accession

legal principle that gives a property owner the right to own anything added to their property, whether by nature or by human action

avulsion

sudden, rapid loss or relocation of land caused by violent natural forces like floods, hurricanes, or a river abruptly cutting a new channel

appropriation

government taking private property for public use, or the legal allocation of water rights based on first use rather than land ownership.

invalid will

a legal document that fails to meet state probate requirements, meaning the court cannot use it to distribute a deceased person's property, including real estate.

intestate will

When a person owns real estate solely in their name and dies without a will, the property becomes part of an intestate estate. Because there is no named executor or instructions, a probate court handles the property

holographic will

functions as a legal instrument used to transfer ownership of land, houses, or property after death, provided that the state or jurisdiction legally recognizes handwritten wills

easement appurtenant

a legal right that allows one property owner to use a neighboring piece of land for a specific purpose

encroachment

when a property owner unlawfully builds or extends a physical structure, improvement, or vegetation across a legal property line onto a neighbor's land or public property without permission

situs

refers to the physical location of a property and the economic or legal value tied to that specific place

estoppel

legally binding document used in real estate to confirm the current facts of a lease or property account, such as monthly rent, security deposits, or association dues. [1, 2, 3]

RESPA; Real Estate Settlement Procedures Act.

U.S. federal consumer protection law passed in 1974 that brings transparency and fairness to the mortgage and closing process. [1, 2]

In which year did the U.S. Supreme Court prohibit all racial discrimination when real property is sold or rented?

1968

judgement lien

court-ordered, involuntary claim placed on a debtor's property after a creditor wins a civil lawsuit for an unpaid debt

creditor

person, bank, or company that lends money to a borrower to buy or use property, making them the entity owed the debt

lis pendent

an official public notice recorded in county land records to warn that a property is the subject of an active lawsuit

specific lien

a legal claim tied to one individual piece of property rather than all of a debtor's assets.

specific lien

If a borrower owns multiple properties, a specific lien cannot be used to seize their other real estate

general lien

a legal claim against all of a debtor’s property and assets, rather than just a single specific piece of real estate

boot

refers to any cash or non-like-kind property received in a 1031 Exchange that does not qualify for tax deferment and becomes immediately taxable

1031 exchange

an IRS tax-deferred method that lets real estate investors sell an investment property and reinvest the proceeds into a similar "like-kind" property to delay paying capital gains taxes

capital gains tax

the tax you may owe on the profit you make when you sell a property for more than you paid for it.

basis

value of the property used to figure out your gain or loss when you sell it.

starting basis

usually what you paid for the property, plus certain purchase costs and improvements.

income producing property

real estate you own mainly to make money from it

Deductible depreciation

the amount of a property's value that the IRS lets you subtract from your taxable rental income each year

appraiser

licensed professional who estimates how much a property is worth

rezoning

changing the official rules for how a piece of property is allowed to be used

soils report

professional report that explains what kind of soil is on a property and whether it is suitable for building

toxic waste report

checks whether a property has been contaminated by hazardous or toxic substances.

Fair Housing violation

happens when someone illegally discriminates in housing because of a protected characteristic

first violation of fair housing consequence

disciplinary action is possible, but Ohio law does not require a specific minimum suspension

2nd violation of fair housing consequence

suspension of the license for at least 2 months or revoke it.

3rd violation of fair housing consequence

the Ohio real estate commission must revoke license

If an auditor visits a real estate broker's office and demands to see its records, how many years of records are required to be shown?

3 years

dual agency

when the same real estate brokerage or agent represents both the buyer and the seller in the same transaction

broker

licensed real estate professional who has more training and legal responsibility than a salesperson/agent

license transfer

$34; working for one broker then moving to another

Ohio Residential Property Disclosure Statement

form that a home seller generally gives to a buyer to disclose known problems or conditions with the property

estate accounts

bank account set up to hold and manage the money belonging to a person who has died.

trust accounts

a special account where a broker holds money that belongs to clients or other people, not the broker personally

escrow account

an account where money is held by a neutral third party until certain conditions are met

property management accounts

n account used by a property manager to handle money related to rental properties for the owner

consumer guide to agency relationships form

an Ohio real estate form that explains who the real estate agent represents and what duties the agent owes to each part

license law

laws and rules that control who can work as a real estate professional and how they must conduct themselves.

the canon of ethics

set of professional standards for how real estate licensees should behave

lead disclosure

a form that tells buyers or tenants about known lead-based paint or lead hazards in a home

listing agreement

a contract between a property owner (seller) and a real estate broker that gives the broker permission to market and try to sell the property

Waiver of Duties Statement

Some duties can be waived, but the agent’s basic fiduciary duties cannot be waived

hazardous waste agreement

agreement dealing with dangerous or contaminated materials on a property and who is responsible for handling, removing, or paying for them

ohio revisional code statement

legally required statement what’s purpose is to make sure buyers, sellers, landlords, tenants, and licensees are informed of important legal rights, duties, or conditions before completing a transaction.

cease and desist order

legal document issued to stop an individual or entity from continuing a specific action that may be harmful or unlawful, especially in real estate contexts.</span>

real estate recovery fund

A fund established to provide financial relief to consumers who suffer losses due to the actions or misconduct of licensed real estate professionals.

ohio net leases

A type of lease agreement where the tenant agrees to pay not only rent but also some or all of the property expenses, such as taxes, insurance, and maintenance.

9 fiduciary

Care, Contract, Instructions, Loyalty, Law, Disclosure, Experts, Accounting, Confidentiality

Whenever you pay your agency fees a portion of those fees go towards the recovery fund, how much specifically?

$10

right of rescission

the legal right to cancel a contract within a certain period of time without penalty, if the law allows it- typically 3 days

statute of limitations

the legal deadline for filing a lawsuit or legal claim.

the amount a broker may charge for a commission is

negotiable