real estate vocabulary

National Association of Realtors

the primary organization real estate licensees join

Business cycles

general swings in business activity resulting in expanding and contracting activity during different phases of the cycle

Seller's market

the housing market where there are more buyers than sellers

buyer's market

the housing market where there are more sellers than buyers

broker

a person who for a fee sells, lists, leases, exchanges, negotiates of deals in the restate of others

brokerage

a business that serves as an intermediary between buyers and sellers

Errors and Omiissions Insurance

Insurance that protects real estate licensees from liability due to mistakes or negligence

independent contractor

a person who contracts to do a job for another.

licensee

a person licensed under state law to practice real estate

salesperson

a real estate licensee agent who is associated with an employing broker and may perform most of the acts of a broker

statutory nonemployee

a real estate licensee who is treated as an independent contractor for tax purposes

how are the members of the Alabama Real estate commission appointed

resident of us for 10 years

must have been a real estate broker or saleperson for at least 10 years

no convictions in federal or state real estate license law

serve 5 year terms

no more than 2 consecutive terms served

Associate broker

a licensee who has passed the broker exam but does not act as the qualifying broker of a brokerage and is not responsible for the actions of other licensees

broker

a licensee who has passed the broker exam

engage

contractural relationship between a qualifying broker and an associate broker or salesperson licensed under him or her

license period

2 year period from October 1 of even numbered years

qualifying broker

a broker under whom a sole proprietorship or other business organization is licensed, who is responsbile for supervising the acts of the company and all real estate licensees licensed with the company

qualifcations for a license applicant

1. trustworthy and competent

2. at least 19

3. high school graduate

4, have had no license or application rejected within the past two year

5. us citizen

6. if non resident-sign an affidavit giving the Alabama real estate commision jurisdiciton over themselves

Reciprocal Licenses

holds a real estate license in another state but applies by

complete the 6 hour alabama reciprocal license law course

pass the state portion of the state licensing exam and apply for a reciprocal license from the alabama real estate commission

total application fee

active

inactive

active-210

inactive-180

continuing education

15 hours every 2 years

3hrs of required risk management course

12 hrs of state approved electives

real estate recover fund

active members pay 30 to pay compensatory damages caused by a licensee's practice of real estate

no greater than 50,000 and one transaction not greater than 25,000

qualifying broker requirements

1. broker is licensed in alabama

2. principal business is that of real estate broker

3. in a position to supervise the real estate activities of the associate broker of salesperson

real property

the physical land and everything attached to it and the bundle of rights in the real estate. also called realty

land

includes the surface of the earth, the subsurface to the center of the earth , and the air above the land

real estate

the actual physical land and everything both natural and man made that is permanently attached to it.

Bundle of rights

1. possession

2. quiet enjoyment

3. disposition

4. exlusion

5. control

possession

gives the owner the right to physically occupy the land and to use the land and make it productive.

quiet enjoyment

gives the owner the freedom to possess and use the land without interference from other people or society

disposition

allows the owner to transfer all of some of the rights to other people. sell, lease, give away divide or dispose of

exlusion

allows the owner to stop other from using the property or even from entering the property

control

allows the owner to physically alter or change the property

appurtenances

a right that goes along with the ownership of real property, usually transferred with the property, gut may be sold separately. Refers to both physical and nonphysical appurtenances

accession

the acquistion of title and land by its addition to real estate already owned, through human actions or natural processes

accretion

a gradual addition to dry land by the forces of nature, as when the tide deposits water borne sediment on shoreline property

air rights

the right to undisturbed use and control of airspace over a parcel of land, may be transferred separately from the land

alluvion

the solid material deposited along the shore by accretion

annexation

attaching personal property to land so the law views it as part of the real property

annexation, actual

the process of physically attaching personal property ot land, causing it to be a fixtures

annexation, constructive

personal property associated with real property in such a way that the law treats it as a fixture even though it is not physically attached to the real property

appropriative rights

waters right allocated by government permit, according to an appropriation system. it is not necessary to own property beside the body of water in order to apply for an appropriation permit

avulsion

a natural process in which land is removed from one person's property and deposited onto another's (flash flood)

bill of sale

a document used to transfer ownership of personal property from one person to another

chattell

a piece of personal property

emblement

a crop that is planted and cultivated through someone's labor and industry. considered personal property

encroachment

a physical object intruding onto neighboring property

erosion

a gradual loss of soil due to the action of wind, water or other forces

fixture

a man made attachment; an item of personal property that has been attached to or closely associated with real property in such a way that is has legally become part of the real property

fructus industriales

plants planted and cultivated by people, considered personal property. Also called emblements

Fructus Naturales

naturally occurring plants generally considered part of the real property. Also called natural attachments

leasehold improvement

a fixture attached to real property by the landlord for the use of a tenant

Improvements

additions to real property that can be natural, but usually they are man-made, substantial fixtures such as buildings

littoral rights

water rights of landowners whose land touches a commercial lake, sea or ocen

mineral rights

rights to the minerals located beneath the surface of a piece of property

parcel

a specific lot or piece of real estate, particularly a specified part of a larger tract

reliction

when a body of water gradually recedes exposing land that was previously underwater

riparian rights

water rights of landowners whose land touches a natural body of water such as a stream, river or inland lake

rule of capture

a legal principle that grants a landowner the right to all oil and gas produced by well on their land, even if it migrated from underneath land belonging to another

subsurface rights

the implication that an owner of land has rights to the land below the surface to the center of the earth, even though this part is no documented

trade fixtures

items of personal property that are annexed to leased property, are necessary to a trade or business, and are removeable by the tenant prior to expiration of the lease

act of waste

when a life tenant uses the property in a way that damages it or reduces market value.

allodial system

the system of land ownership that allows anyone to own land

curtesy

an interest held by a married person in the real property owned by a spouse, refers to a husband's interest in his wife's property

defeasible fee (qulaified fee)

a type of freehold estate conveying ownership interest that comes with a condition

Dower

the interest held by a married person in the real property owned by a spouse, generally refers to a wife's interest in her husband's property

estate

a possessory interest in real property; either a freehold estate or a leasehold estate

estate at suffereance (tenancy at sufferance)

possession of property by a tenant who once had a valid lease but stays on after the lease expires without the landlord's permission

Estate at will (tenancy at will)

when a tenant is in possession with the owner's permission but with no definite lease term and no rent being paid on a regular basis.

estate for years (term tenancy)

a leasehold estate set to last for a definite period after which is automatically terminates

Fee simple absolute (fee simple of fee tittle)

the greatest estate ownership one can have in real property because it is freely transferable and inheritable and of indefinite duration with no conditions on the title

fee simple determinable (determinable fee)

a defeasible fee that is terminated automatically if certain condition occur. the grantor has a possibility of reverter

fee simple subject to a condition subsequent

a type of defeasible fee, title may be terminated by the former owner if conditions stated in the deed are not met. former owner has a power of termination

fee simple subject to a condition precedent

a condition in which the grantor retains title to the estate until specific condition occurs

freehold estate

a possessory interest in real property of uncertain duration, an ownership in real property; either a fee simple or life estate. the holder of freehold estate has title

Homestead

a statutory or legal life estate, recognized in some states, that protect the estate belonging to a deceased person for the use of a surviving spouse and minor children

leased fee estate

the owner's interest in a leased fee estate, which iw reversionary in that possession reverts to the landlord when the lease end

leasehold estate

the temporary interest that an owner gives to a tenant that includes the right of possession and quiet enjoyment without tittle.

life estate

an interest in real property, the duration of which is limited by the life of it owner or another designated person

life estate pur autr vie

a life estate where the measuring life is someone other than the life tenant

life tenant

someone who owns a life estate, the person entitle to possession of the property during the measuring life

measuring life

a person whose life determine the length of a life estate

periodic estate

a leasehold estate that continues for successive periods of equal length until terminated by proper notice from either party

possessory interest

an interest in property that entitles the holder to possess and occupy the property now or in the future

remainder

a future interest that becomes possessory when a life estate terminates, and that is held by someone other than the grantor of the life estate

remainderman

a person other than the grantor who has a future interest in a life estate. a remainder interest in inheritable

reversion

a future interest that becomes possessory when a temporary estate terminates and that is held by the grantor or grantor's sucdessors

reversioner

the person who has a future estate interest in reversion

tenant

somone in lawful possession of real property. especially someone who has leased the property from the owner

tenant, holdover

a lessee who remains in possession of property after the lease has expired;a tenant who refuses to surrender possession of property at the tenancy's end

attachment lien

a lien intended to prevent property transfer pending the outcome of litigation

dominant tenant

a person with easement rights on another's property;either the owner of a dominant tenement or someone who has an easement in gross

dominant tenement

property that receive the benefit of an appurtenant easement

easement

a nonpossessory interest and an encumbrance on property that grants the right to use another person's real property for a particular purpose

easement appurtenant

the right acquired by the owner of one parcel of land to use another's adjacent land for a specific purpose. There must be two tracts of land; one becomes the dominant tenement and the other becomes the servient tenenment

easement by prescription

an easement created by open and notorious, hostile and adverse us of another person's land for a specific period of time determined by state law

easement for light and air

a view easement; considered a negative easement. in the case of negative easement, the dominant tenant can prevent the subservient tenant from doing something on the land because it could affect the dominant land.

easement in gross

an easement that benefits a person or company rather than benefiting another parcel of land

encroachment

a physical object intruding onto neighboring property, often due to a mistake regarding the boundary

encumbrance

any claim, lien, charge or liability that affects or limits the fee simple title to real property

general lien

a lien against all property of a debtor instead of a particular piece of property