real estate simplified flashcards

Agency

The relationship between an agent and a client

Fiduciary duties

Loyalty, obedience, disclosure, confidentiality, accounting, and care

Client

The person receiving full representation

Customer

Receives honesty and fairness

Dual agent

Represents buyer and seller with consent

Subagent

Represents the seller under another agent

Principal

The client

Agent

The representative of the principal

Listing agent

Represents the seller

Buyer
R

's agent

Represents the buyer

Facilitator

Assists both sides without representation

Real property

Land and attached items

Personal property

Movable items

Fixture

Personal property permanently attached

Trade fixture

Business equipment a tenant may remove

Fee simple

Complete ownership

Life estate

Ownership lasting for someone’s lifetime

Remainderman

Person who receives property after a life estate

Tenancy in common

Shared ownership without survivorship

Joint tenancy

Ownership with survivorship

Tenancy by entirety

Ownership for married couples

Easement

The right to use another
R

's land

License

Temporary permission to use land

Encroachment

Something crossing property boundaries

Zoning

Rules controlling land use

Deed

Legal document transferring ownership

Grantor

Person giving property

Grantee

Person receiving property

Warranty deed

Strongest protection for the buyer

Quitclaim deed

Transfers interest with no guarantees

Title

Ownership rights

Cloud on title

A problem with ownership

Title insurance

Protection against title defects

Valid contract

Contains offer, acceptance, consideration, legal purpose

Void contract

Has no legal effect

Voidable contract

May be canceled by one party

Unilateral contract

One promise exchanged for performance

Bilateral contract

Promise exchanged for a promise

Novation

Replaces an old contract with a new one

Assignment

Transfers contract rights to another party

Mortgage

Security for a home loan

Mortgagor

Borrower

Mortgagee

Lender

Foreclosure

Legal process after loan default

Lien

Claim against property for unpaid debt

Conventional loan

Not backed by the government

FHA loan

Government insured loan

VA loan

Loan for eligible veterans

Interest

Cost of borrowing money

APR

Interest plus additional loan costs

Amortization

Loan paid off through equal payments

Appraisal

Estimate of property value

Market value

Price in an open market

Cost approach

Value based on rebuilding cost

Income approach

Value based on rental income

Sales comparison

Value based on similar properties

Protected classes

Race, color, religion, national origin, sex, familial status, disability

Steering

Directing buyers toward or away from areas

Blockbusting

Pressuring owners to sell due to fear

Redlining

Refusing loans in certain neighborhoods

Lead paint

Common in homes built before 1978

Radon

Natural radioactive gas

Asbestos

Hazardous insulation material

Mold

Fungus that grows in moisture

Underground storage tank

Buried tank that may leak contaminants

Lease

Rental contract

Landlord

Property owner

Tenant

Person renting property

Security deposit

Money held for damage protection

Gross lease

Tenant pays rent only

Net lease

Tenant pays rent plus expenses

Lead law

Requires removal or covering of hazards for children under six

Tenancy by entirety

Protects married couples
R

' property

Smoke detector certificate

Required at property sale

Continuing education

Required for license renewal