Real Estate Licensing Exam Review - Part 1

Flashcards covering essential real estate vocabulary, legal definitions, and ownership concepts derived from the Virginia real estate licensing review lecture.

Owner’s Title Insurance Policy

A type of title insurance that protects the owner and their heirs from defects in the title.

Lender’s Title Insurance Policy

A document that protects the interest of the mortgagee ($the lender$) against hidden risks like forgeries or title defects.

Trade Fixtures

Items installed by a tenant for business use, such as ovens or booths; they are the tenant's property and can be removed at lease expiration.

Fee Simple Estate

The most all-inclusive type of real estate ownership where the owner has the highest degree of rights and can transfer, will, or inherit the property.

Appurtenant Easement

A type of access right that provides the greatest protection to a prospective lot purchaser.

Deed

The written instrument used to convey property rights from a grantor to a grantee.

Market Price

The actual asking, offer, or sold price of a property, as distinguished from market value ($estimated worth$) or cost ($sum of purchase and improvements$).

Functional Obsolescence

A condition where a property works but is old or negatively impacted by its design, such as a four-bedroom home with only one bathroom.

Adverse Possession (NACHO)

A method of acquiring title to land by possessing it without owner permission, requiring the possession to be Notorious, Adverse, Continuous, Hostile, and Open.

Quitclaim Deed

A deed used to convey title or remove a cloud on title that provides no warranties to the grantee.

Special Assessment

Taxes levied on property owners specifically to pay for public local improvements such as sidewalks or sewers.

Ad Valorem

A Latin phrase meaning "at value," referring to general property taxes based on the assessed value of the property.

Scarcity

An economic characteristic of land relating to the fixed supply and demand for property.

Emblements (Crops)

Annually cultivated crops such as corn, wheat, or vegetables that are considered personal property rather than permanent improvements.

Eminent Domain

The sovereign power of the government to take private property for public use.

Condemnation

The actual act or process by which the government exercises its power of eminent domain.

Deed of Trust

A security instrument involving three parties: the borrower, the lender, and a trustee.

Tenants in Common

A form of co-ownership where owners can hold unequal fractional interests; it is the default ownership form if no others are specified, and property can be willed to heirs.

Joint Tenancy

Ownership characterized by the right of survivorship, meaning if one owner dies, their interest is absorbed by the surviving owners.

Tenancy by the Entirety

A specific form of joint ownership reserved for married couples with right of survivorship.

Habendum Clause

The clause in a deed that defines the extent of ownership being conveyed, often beginning with the words "to have and to hold."

Fair Housing Act

Legislation administered by the Department of Housing and Urban Development ($HUD$) prohibiting discrimination based on race, color, religion, national origin, sex, familial status, or disability.

Law of Agency

The rules of law that apply when one person represents another in a transaction.

Mortgagee

The lender in a mortgage relationship.

Mortgagor

The borrower in a mortgage relationship.

Correction Deed

A document used to rectify a mistake in a legal description on a previously recorded deed.

Nonjudicial Foreclosure

The foreclosure process used in Virginia ($a deed of trust state$) where the power of sale clause allows for foreclosure without a court order.

Loan Estimate (LE)

A standardized form developed by the CFPB that replaces the Good Faith Estimate and the Truth in Lending disclosure.

360-Day Year (Banker's Year)

A method of calculating prorations where each month is assumed to have exactly $30$ days.

Statute of Frauds

A law requiring that certain contracts, including all real estate contracts, must be in writing to be enforceable.

Independent Contractor

A sales associate who signs an agreement with a broker stating they are not an employee, receives income solely from commissions, and handles their own taxes.