RealEstate Practice test

Real Property

consists of land, improvements attached to the land, and all rights that go with ownership.

Personal Property

includes movable items that are not permanently attached to real estate.

Appurtenance

is a right or improvement that belongs to and passes with the land.

Fixture

is personal property that has become real property through permanent attachment.

Annexation

is the process of attaching personal property so that it becomes real property.

Severance

the removal of a fixture so that it becomes personal property again.

Trade Fixture

Is installed by a commercial tenant and may be removed before the lease ends.

Emblements

are annual crops that belong to the farmer who cultivated them.

Nonhomogeneity

means every parcel of land is unique.

Immobility

means land cannot be moved and has a fixed location.

Indestructibility

A land remains even when improvements are destroyed.

Scarcity

A land is limited in supply relative to demand.

Modification

improvements can affect land value.

Fixity

land and improvements are permanent investments.

Situs

refers to the desirability of a location.

Metes and Bounds

property using distances, directions, and a point of beginning.

Lot and Block

property by reference to a recorded subdivision plat.

Rectangular Survey System

identifies land by townships, ranges, and sections.

Police Power

allows government to regulate land use for public welfare

Zoning

controls how land may be used within a community.

Variance

allows deviation from zoning requirements.

Setback

the required distance between a structure and property lines.

Buffer Zone

separates incompatible land uses.

Nonconforming Use

was legal before zoning changes occurred.

Eminent Domain

Eminent domain allows government to take private property for public use with compensation.

Taxation

Taxation allows government to levy property taxes.

Escheat

Escheat transfers property to the state when an owner dies without heirs.

Encroachment

An encroachment occurs when an improvement extends onto another property.

Easement

An easement grants limited use of another person's land

Easement Appurtenant

An easement appurtenant benefits a parcel of land and transfers with ownership.

Easement in Gross

An easement in gross benefits a person or company rather than a parcel of land.

License

A license is temporary permission to enter or use property.

Adverse Possession

Adverse possession allows title to be acquired through continuous hostile possession.

Lis Pendens

A lis pendens is a recorded notice that a lawsuit affects property.

Estate in Severalty

Estate in severalty is ownership by one person or entity.

Tenancy in Common

Tenancy in common allows co-owners to hold separate ownership interests.

Joint Tenancy

Joint tenancy includes the right of survivorship.

Tenancy by the Entirety

Tenancy by the entirety is joint ownership available to married couples in some states.

Time Share

A time share provides ownership and use rights for a specific time period each year.

Condominium

A condominium owner owns a unit and shares common areas.

Cooperative

A cooperative gives residents ownership through shares in a corporation.

Bundle of Rights

The bundle of rights includes possession, control, exclusion, enjoyment, and disposition.

Fee Simple Absolute

Fee simple absolute provides the greatest ownership rights.

Fee Simple Defeasible

Fee simple defeasible can be lost if conditions are violated.

Life Estate

A life estate lasts for the life of a designated person.

Remainderman

A remainderman receives property after a life estate ends.

Estate for Years

An estate for years has specific beginning and ending dates.

Periodic Tenancy

A periodic tenancy renews automatically until terminated.

Tenancy at Will

A tenancy at will can be terminated at any time by either party.

Tenancy at Sufferance

A tenancy at sufferance occurs when a tenant remains after lease expiration.

Gross Lease

A gross lease requires the landlord to pay most expenses.

Net Lease

A net lease requires the tenant to pay rent plus expenses.

Percentage Lease

A percentage lease bases rent partly on business income.

Ground Lease

A ground lease is a long-term lease often used for development.

Assignment

An assignment transfers all lease rights to another tenant.

Subletting

Subletting transfers some lease rights while the original tenant remains liable.

Lien

A lien is a claim against property to secure debt payment.

Mechanic's Lien

A mechanic's lien secures payment for labor or materials.

Riparian Rights

Riparian rights involve water from rivers and streams.

Littoral Rights

Littoral rights involve water from lakes and oceans.

Alienation

Alienation is the transfer of property ownership.

General Warranty Deed

A general warranty deed provides the greatest protection against title defects.

Special Warranty Deed

A special warranty deed protects only against defects during the grantor's ownership.

Quitclaim Deed

A quitclaim deed transfers whatever interest the grantor has without warranties.

Patent

A patent transfers land from the government to a private owner.

Testate

A testate person dies with a valid will.

Intestate

An intestate person dies without a valid will.

Executor

An executor settles an estate according to a will.

Administrator

An administrator settles an intestate estate.

Probate

Probate is the court process for settling an estate.

Foreclosure

Foreclosure is the legal process used after borrower default.

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure transfers property to the lender to avoid foreclosure.

Front: Right of Redemption

The right of redemption allows repayment before foreclosure is completed.

Short Sale

A short sale sells property for less than the mortgage balance.

Market Value

Market value is the most probable price a willing buyer and seller would agree upon.

Demand

Demand means buyers want the property and can afford it.

Utility

Utility means the property satisfies a need or want.

Transferability

Transferability means ownership rights can be transferred.

Highest and Best Use

Highest and best use is the legal use producing maximum value.

Principle of Substitution

Buyers will not pay more than the cost of a similar substitute property.

Principle of Substitution

Buyers will not pay more than the cost of a similar substitute property.