Real Estate Terms and Concepts

These flashcards cover key terms and definitions related to capital gains, property management, and different types of tenancy.

Capital Gain Exclusions

Provisions that allow a taxpayer to exclude a certain amount of capital gains from taxable income.

Foreign Investment and Real Property Tax Act

A law ensuring nonresident aliens and foreign corporations pay U.S. income tax based on gains from selling U.S. property.

1031 Tax Deferred Exchange

Allows a property owner to exchange one property for another and defer taxation of the capital gain.

Sherman Anti-Trust Law

Legislation that prohibits monopolies, price fixing, group boycotts, and restraint of trade.

Property Management

The operation, control, and oversight of real estate properties.

Basic Functions of Property Manager

1. Produce income from the property. 2. Maintain value of the property.

Tenancy for Years

A lease that runs for a specified length of time, up to the date of expiration, and does not automatically renew.

Periodic Tenancy

A lease that runs for a specified length of time but automatically renews at the end of the term for another term of equal length.

Tenancy at Will

A lease that runs indefinitely with no specified term or expiration date.

Tenancy at Sufferance

A situation where a tenant occupies premises without the landlord's consent.

Oral Leases

Valid leases that can be established verbally if one year or less.

Notice to Vacate

A written notice given to a tenant to inform them that they must vacate the property.

Eviction

The legal process of removing a tenant from rental property.

Farm Lease

Leases specifically for agricultural use, extending for one year and automatically renewing.

Non-Farm Lease

All other leases that typically renew month to month unless specified otherwise.