Chapter 1-6 Real Estate Law Key Terms

Vocabulary flashcards covering property descriptions, ownership forms, and fair housing laws drawn from the notes.

Attorney

A person authorized to prepare and draft legal documents; real estate brokers/salespeople cannot draft but can fill in attorney-approved forms.

Meets and bounds description

A legal property description based on physical measurements and markers that must enclose the parcel and end at the point of beginning.

Metes

Length measurements (feet, inches) used in metes and bounds descriptions.

Bounds

Markers (stakes, wells, landmarks) used in metes and bounds descriptions.

Point of Beginning (POB)

The starting and ending reference point for a metes and bounds description; the description must return to this point.

Total enclosure

The requirement that a metes and bounds description must completely enclose the parcel, ending at the point of beginning.

Benchmark

A fixed reference point or marker used in geodetic surveys to identify location, height, and elevation.

Geodetic survey system

A national system using benchmarks to identify land location, elevation, and related data.

Rectangular (Government) Survey System

A nationwide land description system using meridians, baselines, range lines, and tier lines to form six-mile townships.

Township

A six-by-six mile square area (36 square miles) created by the government survey system.

Section

One square mile within a township; each section contains 640 acres (43,560 square feet per acre).

Lot and Block system

A subdivision description recorded on a plat map, listing lot number, block number, subdivision, county, and state.

Plat map

A map recording subdivisions on the public record, showing lots, blocks, easements, and boundaries.

Setback

Required distance between the building line and property lines; determines where construction can occur.

Tenants in common

Co-ownership where each owner has an undivided interest without right of survivorship; heirs inherit the interest.

Severalty

Title held by a single entity or owner; ownership by one party to the exclusion of others.

Joint tenancy

Co-ownership with right of survivorship; when one owner dies, interest passes to remaining owners; corporations cannot be joint tenants.

Right of survivorship

A feature of joint tenancy where the remaining owners automatically inherit a deceased owner's share.

Sole proprietorship

A business owned by one person with unlimited personal liability.

Syndication

Two or more people band together to invest in real estate, sharing risk and profits.

General partnership

A partnership where all partners have unlimited liability and share profits, losses, and management.

Limited partnership

A partnership with general partners (manage and have unlimited liability) and limited partners (investors with limited liability).

Real Estate Investment Trust (REIT)

A large pooled investment vehicle for real estate, often regulated like a mutual fund.

Securities license

A license required to sell or invest money for others in real estate securities, regulated by the SEC.

Securities

Stocks, bonds, or other investment instruments; real estate deals involving these require securities licensing and disclosure.

SEC

Securities and Exchange Commission; federal agency that regulates the sale of securities.

Limited liability company (LLC)

A business structure with limited liability for members and pass-through profits/losses to members.

Civil Rights Act of 1866

Prohibits racial discrimination in inheritance, purchase, lease, and sale of property; no exemptions for race.

Civil Rights Act of 1968 (Title VIII)

Prohibits discrimination in the sale or lease of residential property based on protected classes; administered by HUD.

Protected classes

Race, color, religion, national origin, sex, handicap, familial status (added in 1988).

Blockbusting

Inducing owners to sell by scaring them with the idea that a protected class is moving into the neighborhood.

Steering

Directing buyers toward or away from certain areas based on protected class; illegal under fair housing laws.

Redlining

Lenders or insurers refuse to provide services in certain areas based on protected class demographics.

Fair Housing Act exemptions (FSBO, owner-occupied 1-4, religious organizations, private clubs)

Legal exemptions allowing limited discrimination under specific conditions (e.g., FSBO without brokers, owner-occupied 1-4 units, not-for-profit religious groups, small private clubs).

Jones v. Mayer (1968)

Supreme Court ruling that racial discrimination is illegal under the Civil Rights Act, with or without exemptions.

Fair Housing Amendments Act of 1988

Expanded FH Act to include handicapped and familial status as protected classes.

Handicap

Mental or physical disability; protected class; includes reasonable modifications and accessible accommodations.

Reasonable modifications

Modifications to a dwelling made at a tenant’s expense to improve accessibility.

Accessible units

Multifamily buildings 4+ units built after 3/13/1991 must be accessible; if no elevator, ground-floor units must be accessible.

Familial status

Protected class involving families with children under 18; retirement communities may exclude children under certain conditions.

HUD poster requirement

Residential real estate offices must display a HUD fair housing poster; logo use is recommended but not required.

Complaint within one year

A fair housing complaint must be filed within one year of the alleged act.

Americans with Disabilities Act (ADA)

Federal law requiring accessibility in places of public accommodation and preventing discrimination against people with disabilities.

Penalty for FH Act violations

Fines can be up to $75,000 for a first offense under federal fair housing laws.