Real Estate Vocabulary Practice

Comprehensive vocabulary definitions covering Levels 1 through 27 of the real estate lecture notes, including land rights, ownership forms, contracts, agency, finance, valuation, and legal regulations.

land

the surface of the earth, including all permanently attached natural features, extending downwards to the center of the earth and upwards to infinity

real estate

the land plus all improvements made by man or nature

real property

land from the surface to the center of earth and upward into space, including everything attached by man or nature as well as the bundle of legal rights of ownership

improvement

any nonnatural structure built on or affixed to land

bundle of rights

ownership of land with all of the legal rights of possession, control, quiet enjoyment, exclusion, transfer, and encumber

property

any item which may be owned, including the rights associated with ownership

personal property

an unattached, moveable asset not considered real estate, a.k.a. personalty

chattel

A commonly used term for personal property in the world of real estate

fructus industriales

plants or crops intended for harvest and treated as personal property, a.k.a. emblements

trade fixture

personal property that is owned by and needed for a tenant’s business

fixture

an object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property

fructus naturales

trees, perennial plants, and uncultivated plants usually treated as real property because of their permanence

severance

the act of converting real property into personal property

accretion

the process that results in the gradual increase in land area through deposits of soil by natural forces

accession

the right to all that one’s own property produces, including that which is added, either naturally or by human action, to the property already owned

erosion

the gradual loss of land over time

reliction

a gradual increase in land area when water gradually withdraws

avulsion

the sudden loss of land by flood or when a stream or river changes course

scarcity

the economic characteristic that informs the economic principle of supply and demand

situs

the economic significance of a property’s location

fixity

refers to the fact that real estate exists in a fixed location and cannot be moved; describes this truth about land from an economic viewpoint

illiquidity

the relative difficulty of converting an asset to cash without loss of value

surface rights

the rights to access the surface area of a parcel of real property

subsurface rights

(a.k.a. mineral rights) ownership rights to all that is found beneath the surface of the tract of land owned, extending downward to the center of the earth

air space

the area above ground that is owned along with a property. could include space above a piece of land, or the space owned inside a condominium unit

air rights

the right to use the air space above the surface of land

littoral rights

rights that govern lakefront or oceanfront property and usually allow the property owner to use the water bordering their property

water rights

the right of a property owner on a waterfront to access and use that water

riparian rights

rights that govern the use of flowing water, such as rivers and streams that pass through or border a property

doctrine of prior appropriation

the legal doctrine which grants states the power to control and regulate all water resources within their borders

estate

a possessory interest in real property

fee simple estate

maximum ownership of real property; also called a fee or a fee simple absolute and is of indefinite duration, freely transferable, and freely inheritable

fee simple determinable

a type of fee simple defeasible estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated

remainder interest

the interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based

legal life estate

any life estate created by a function of law as opposed to the actions or desires of a property owner

dower

the right of a spouse to inherit property held in their spouse’s name after that spouse dies; dower is the word used for women, curtesy for men

curtesy

the right of a spouse to inherit property held in their spouse’s name after that spouse dies; dower is the word used for women, curtesy for men

encumbrance

non-possessory interest in a property that burdens the title

freehold estate

a form of ownership with an indeterminate length

periodic estate

a leasehold estate which automatically renews until canceled by either party, a.k.a. estate from period-to-period, periodic tenancy, estate from year to year

fee simple condition subsequent

a defeasible fee estate that comes with specific requirements (or conditions)

reversionary interest

the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)

pur autre vie

a life estate characterized by ownership lasting only for the duration of a designated party’s lifetime

fee simple defeasible

a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions; ownership reverts back to the original owner if these stipulations are violated

life estate

a type of estate limited to the duration of a measuring life

leasehold estate

an interest in the occupation of a property, established through a lease, a.k.a. non-freehold or less-than-freehold

homestead laws

laws which protect a homeowner from loss of their principal residence from the claims of most creditors and require both spouses to execute any instruments of conveyance

elective share

a statutory right in some states which allows the surviving spouse to claim an interest in a decedent’s real and personal property regardless of the provisions established by a will

severalty

undivided ownership of an estate, with an interest that is exclusive from other owners; often referred to as ownership in severalty or tenancy in severalty

joint tenancy

co-ownership in which the parties have an equal and undivided interest in the property; includes the right of survivorship rather than inheritance

right of survivorship

the statutory principle of survivorship tenancy that provides that when one co-owner dies, their ownership interest reverts to the surviving co-owners

community property

a system of property co-ownership, most commonly applied to married couples, which describes what is joint property and what is individual property

tenancy in common

co-ownership with individual, undivided interest in the property; includes rights of inheritance rather than survivorship

partition suit

legal action brought with the purpose of terminating the ownership interest of a co-owner to real property

limited partnership

a business entity composed of both general and limited partners. the general partners manage the business and limited partners are passive investors.

sole proprietorship

ownership of a business by a lone individual

general partnership

a business entity in which all co-owners actively share power, responsibilities, and profit

trust

a legal entity where control of some asset or property is transferred by a grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary)

beneficiary

the recipient of advantage or gain from an act or instrument such as a trust, will, or insurance policy

living trust

a trust established by a living trustor in order to convey legal title of property to a trustee for the benefit of a named beneficiary

condominium

property where each owner has a separate interest in their own unit and undivided interest in the common areas

common elements

portions of a shared ownership property not controlled by any one owner or tenant. examples include parking lots, lobbies, fitness centers, elevators, etc.

planned unit development

a subdivision that includes residential dwellings along with nonresidential real estate, departing from normal zoning and subdivision regulations; recreational facilities may be co-owned by pud lot owners as tenants in common

timeshare

a form of co-ownership where each owner has use of the property at a different prescribed period of time, also known as interval ownership

real estate investment trust (reit)

a trust that invests in, owns, or acquires real property and is owned by investors who share the trust’s profits according to shares

legal description

a description of a property that is distinct and precise enough to distinguish it from all other properties

metes and bounds

a land survey process in which a licensed land surveyor starts at a readily identifiable point of beginning and defines the boundaries of a property in terms of distances and compass directions, finally returning to the point of beginning

monument

a fixed landmark, whether natural or human-made, used as a reference point in a metes and bounds legal description

lot and block system

a system of legal land description that identifies a piece of platted property by referring to the section, lot, and block numbers in a subdivision; a.k.a. the recorded plat method

survey

the process and physical product of finding and measuring the boundaries of a piece of real estate, including the location of improvements, encroachments, and easements

point of beginning (pob)

the starting point for a metes and bounds legal description

benchmark

permanent markers of known location and elevation above sea level as established by a government survey team (such as the usgs)

plat

a map indicating the locations and dimensions of lots in a lot and block system

rectangular survey system

a system of legal land description that uses the global lines of longitude and latitude to create a surveyed grid of meridians, base lines, townships, and ranges to describe a piece of land; a.k.a. the government survey system

principal meridian

a meridian used in reference to a baseline to identify ranges, tiers, and townships in the rectangular survey method of land description

tier

the area of land between two consecutive baselines

acre

a measurement of land equal to $43,560$ square feet

meridian

an imaginary line of longitude used to identify a certain area of the earth’s surface along a north-south direction

baseline

a parallel used in reference to a meridian to identify ranges, tiers, and townships in the rectangular survey method of land description

township

a square area of land with sides of $6$ miles each, consisting of $36$ square-mile sections and identified in reference to a meridian and baseline in the rectangular survey system

square mile

a measurement of land equal to $640$ acres

parallel

a line of latitude

range

the area of land between two consecutive range lines

section

one of $36$ equal square miles in a township

datum

a designated base reference point to elevation used by surveyors to determine the elevations of land or property in an area

deed restriction

a provision in a deed that restricts the land use of a property

land-use control

regulations that specify how the owners of individual parcels of real estate in a given area may use property

covenants, conditions and restrictions (ccrs)

private restrictions similar to deed restrictions that dictate what homeowner may do with their property

doctrine of laches

a legal principle used to bar dated claims; used in conjunction with an unreasonable delay or negligence in asserting or defending one’s rights

cloud

any claim to or encumbrance on the title to a property which affects transferability

quiet title suit

a lawsuit brought with the purpose of removing any outstanding ownership claim, title defect, or encumbrance on a property

encroachment

physical property that crosses the boundary into a neighboring landowner’s property

lien

the claim made by a creditor against real or personal property pledged by a debtor as collateral

conveyance

an instrument that transfers a grantor’s interest in real property

easement

an interest in, or a right to use, another individual’s land or property, generally for a specific, limited purpose.

easement by condemnation

easement in which private property is taken for public use via eminent domain; declaration that a structure must be closed or demolished because it is unfit for occupants

alienation

the transfer of ownership (title) to real property; may be voluntary or involuntary

landlocked

a piece of land which is not accessible by any public means

appurtenances

rights that run with real property ownership; most often transferred with the property, but possible to sell separately

dominant tenement

the parcel of land that benefits from an easement appurtenant by having the right to cross another owner’s adjacent land