National Real Estate Exam Prep

Freehold estate

offers indefinite ownership

Leasehold estate

is for a fixed term

fee simple

the owner has unrestricted ownership of the property

fee simple absolute

the most complete form of ownership one can havel

life estate

ownership of property for the duration of a person’s life

easements

rights to use someone else's land for a specific purpose

encumbrance

a claim, lien, or liability attached to real property

a lien

a legal right or interest that a lender has in the property

deed restriction

a limitation placed on the use of a property

eminent domain

the governments right to acquire private land for public use, with compesation

escheat

the states power to claim property when the owner dies without a will or heirs

joint tenancy

all owners have an equal share of the property with the right of survivorship

tenancy in common

allows for unequal shares and does not include the right of survivorship

tenancy of the entirety

similar to joint tenancy but only for married couples

balloon loan

allows borrowers to make regular amortized payments, then make a “balloon” or lump sum payment at the maturity date

redlining

an illegal and discriminatory practice by lenders and insurance companies that refuse or limit business within specific geographic areas based of the demographics of the area rather than the creditworthiness of the specific borrower

blockbusting

the act of inducing property sales by threatening that the changing demographics or the entry of a minority resident will decrease values

steering

the act of guiding prospective buyers/tenants to or away from a location based on their membership in a protected class

price fixing

involves an agreement between competitors to fix contract terms, services, or products at a specific price or level

market allocation

involves and agreement between brokers to divide up the market and then refrain from competing for business

tie in arrangements

includes providing a service dependent on the customer/client obtaining (or not) another service from a specific provider

group boycotting

an agreement between two or more parties who conspire to not do business with a particular person or company

commingling

when funds are mixed with personal or brokerage firm funds

conversion

using trust funds for anything other than their intended purpose

encroachment

a fixed intrusion onto another person’s property

contemporaneous offer

a situation in which a licensee will simultaneously present offers from multiple buyers to a single seller