The Nature and Description of Real Estate and Florida Licensing Exam Prep

Comprehensive vocabulary flashcards covering real estate fundamentals, legal descriptions, contracts, finance, appraisal, and Florida license law as per the lecture summaries.} Ready to Study Guide.

Real property

Land, anything affixed to the land, and the rights and interest in the land; note that mobile homes are NOT considered real property unless they come with the land.

Improvements

Permanent attachments or items affixed to the land with the intent of being permanent.

Fixtures

An object that was once personal property but has been attached to an improvement so as to become real estate.

Situs

The economic characteristic of real property that refers to the effect of locational preference causing land to be affected by actions in the surrounding area.

Metes and bounds

A type of property legal description that uses a series of distance and direction measurements to proceed around a parcel until returning to the point of beginning.

Ad valorem

The term referring to property taxes being based upon the assessed or just value, meaning "at value."

Eminent domain

The government power to take private property for public use (condemnation), provided that just compensation is paid to the owners.

Escheat

The government’s reversionary right exercised when a property owner dies intestate (no will) and has no heirs.

Nonconforming use

A land use that was legally in place when a NEW zoning ordinance came into effect but does not comply with the new requirements.

Variance

Permission granted by the zoning board of adjustments to build a structure or use property in a way that is otherwise not allowed due to an undue hardship.

Bundle of rights (DUPE)

The four primary rights in real property: disposition, use, possession, and exclusion.

Fee simple absolute

The highest and most complete estate or interest in land featuring absolute ownership.

Life estate

Ownership measured by someone’s lifetime, where the estate goes to a remainder (3rd party) or reversion (original grantor) upon the death of the life tenant.

Encroachment

An unauthorized use of someone else's property, typically involving a physical object intruding onto a neighboring property.

Tenancy in commons

Co-ownership by others than marriage where all have equal rights of possession, but interests may be unequal and there are no rights of survivorship.

Joint tenancy

Co-ownership requiring the four unities (possession, interest, time, and title or PITT) which includes the right of survivorship; not for married couples.

Tenancy by entireties

A form of joint tenancy reserved exclusively for married couples where one party's interest cannot be transferred without the other.

Habendum clause

A clause in a deed that names the type of estate being transferred.

Seizing clause

A promise in a deed that the grantor owns the land and has lawful authority to sell it.

Adverse possession

The legal acquisition of title to another's land recognized by courts after actual, open, continuous, notorious, hostile, and exclusive possession for a period of $7 \text{ years}$ in Florida.

Abstract of title

A document that summarizes all recorded documents affecting the title to a given parcel of land.

Statute of frauds

A law requiring that most real estate contracts must be in writing and signed to be enforceable, intended to prevent problems with oral (parol) contracts.

Novation

The act of substituting a new party or a new contract, or both, for an existing contract.

Loan to value ratio (LTV)

The maximum percentage of value ($\text{based on appraised price or sale price, whichever is less}$) that a lender will loan.

Discount point

Charges by the lender computed as a percentage ($1 \text{ point} = 1 \text{\%}$) of the amount borrowed to increase the lender's yield.

Acceleration clause

A clause in a mortgage that gives the lender the right to call the entire balance due in full in the event of default by the mortgagor.

Functional obsolescence

A loss in value due to poor design, outdated electric service, faulty plumbing, or obsolete equipment.

External obsolescence

A reduction in value due to locational factors outside the property, which is always considered incurable.

Highest and best use

The legal, possible, and financially feasible use of a property that results in the maximum utility.

Steering

The prohibited practice of channeling buyers or renters to or away from specific neighborhoods based on race or other protected characteristics.

Redlining

The refusal by a lender to give a loan or provide insurance coverage in a particular neighborhood because of its ethnic or racial composition.

Blockbusting

The act of attempting to obtain listings by predicting the entry of minority residents into a neighborhood to imply a decline in property value, also known as panic selling.

Culpable negligence

The failure to use the care a reasonable person would exercise, thereby risking disciplinary action by the FREC.

Null & void

The status of a license if a sales associate fails to complete the $45 \text{-hour}$ Post-Licensing course by the end of the initial licensing period.

Ostensible partnership

A situation where two or more persons create the appearance that a real estate brokerage partnership exists.