NC Broker License Glossary

Land

Defined as the earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.

Real estate

Includes land plus everything attached to it, both naturally and artificially.

Real property

Includes real estate plus interests, benefits,and rights automatically included with real estate ownership.

Improvements

Artificial attachments to land that include things such as fencing, buildings, and walkways.

Personal property

Property that is movable, may be owned by a person, and is not real property. Any type of non-permanent attachment.

Appurtenance

Automatic rights inherent in property ownership.

Profit (land)

The right to take products out of the soil.

License

The temporary right to use another person's property without possessing any interest or ownership in the land.

Air rights

Rights to use the airspace above the land may be sold or leased independently of the land itself.

Water rights

The rights to use the water either on or adjacent to one's land.

Riparian rights

Rights of the owners of a bordering property to use a flowing body of water, such as a river or creek.

Littoral rights

Rights of the owners of a bordering property to the use of a stationary body of water, such as a lake or sea.

Foreshore

The area between the mean high water mark and the low water mark, owned by the state.

Doctrine of prior appropriation

A legal right to use water over subsequent users of that water. The first person who uses the water source has priority over later claims.

Accretion

The gradual growth in the size of a land parcel due to water-deposited sand, silt, or gravel.

Erosion

The wearing away of land by wind, water, and other natural disturbances.

Avulsion

A loss of existing land by the sudden change in a watercourse, washing it away.

Reliction

The gradual creation of land when adjacent water levels recede.

Sub-surface rights

Rights related to the use of minerals and other products below the surface of the property.

Lateral support

Support that a land parcel receives from the adjoining land. It ensures that a property does not collapse or erode due to changes in the surrounding land or soil.

Chattel

Another word for personal property (as opposed to real property

Trade fixtures

Affixed items installed by a tenant for business purposes that remain the personal property of the tenant.

Severance

Altering the characteristic of an item from real property to personal property by removing it from the land.

Annexation (chattels)

An attachment of personal property to real property, thereby making it a fixture (also known as an attachment).

Fruits of nature

Plants that don’t require annual cultivation, like trees, and are considered real estate.

Fruits of industry

Plants that do require annual cultivation, like crops, and are considered personal property.

Emblements

Growing crops, such as decorative trees or corn, which are produced annually; usually not considered fixtures, but are the personal property of the person who planted them.

Trade fixtures

A piece of equipment or other item that is on or attached to the real estate and is used in a trade or business. Typically installed by the tenant and are considered personal property.

Manufactured homes

Housing that is built to HUD specifications; manufactured housing must be at least 320 square feet and built on a permanent steel chassis and wheels, designated as personal property.

Modular homes

Built in pieces off-site and transported and built at a spot without transportation in mind (no chassis or wheels), designating it as real property as soon as it is assembled.

Freehold estate

Legal term for owning real property for an indefinite period and is an estate of inheritance.

Fee simple estate

An inheritable estate with absolute ownership; provides the most complete form of ownership and bundle of rights in real property

Defeasible fee estate

An estate which transfers fee simple title, but subject to certain conditions (so inherently less than fee simple). Also called a qualified fee estate.

Life estate

A type of property that individuals own for just their own lifetime. The ownership of the property terminates upon death. 

Pur autre vie

A life estate that lasts for the life of someone other than the life tenant. This type of estate persists for the lifetime of a person (the measuring life) who doesn’t hold the estate.

Life tenant

The owner of a life estate. The recipient of the life estate holds title to the property during their lifetime.

Estovers

A necessity allowed by law that permits a tenant to use timber from the leased property for minimum fuel, repairs, and tools.

Reversion

The lessor's right to reclaim possession of the property at the end of the lease term.

Remainderman

The person receiving title upon the death of the life tenant.

Marital life estate

When one married person dies, and is survived by a spouse this type of estate arises. In NC, the surviving spouse can inherit 1/3 of the property’s value.

Homestead

An estate which gives the owner special rights in property used as a family home, this estate is exempt from taxation.

Estate for years

A fixed-termination type of lease that may be for a day, week, month, year, several years, or any definite period of time; when the specified date occurs, the lease terminates automatically.

Estate from year to year

An estate set up for periodic tenancy that automatically renews at the end of each period.

Estate at will

Leasehold estate in which the duration of the lease is unknown at the time it's created; may be terminated by either the lessor or lessee at any time.

Estate at sufferance

A type of possession in which a tenant stays after the right to possess has terminated.

Severalty

A form of ownership that severs the interests of all others; complete, exclusive ownership.

Right of inheritance

A co- ownership position in which a co-owner’s interest may be willed to another person. When the sole owner dies, the property will transfer to the owner’s heirs according to a will or, in the absence of a will, state law.

Tenancy in common

A form of ownership that includes an undivided interest in the property; owners may sell, convey, mortgage, or transfer their interest without the consent of co-owners.