Real Estate Vocabulary Flashcards

Flashcards covering real estate vocabulary.

What is a Bundle of Rights?

Rights associated with property ownership.

What is Real Property?

Land and anything permanently affixed to it.

What is Personal Property?

Moveable items not permanently attached to land.

What is Chattel Real?

Personal property closely associated with real property (e.g., lease).

What is a Fixture?

An item that was personal property but has been permanently attached to real property.

What is a Trade Fixture?

Personal property used in a business that is attached to real property, but remains the tenant's property.

What are Riparian Rights?

Rights of landowners whose property borders a river or stream.

What are Littoral Rights?

Rights of landowners whose property borders a lake or ocean.

What is Accretion?

The gradual addition of land by natural causes, such as sediment deposit.

What is Avulsion?

The sudden loss of land due to natural causes like floods.

What is Reliction?

When water recedes exposing land.

What are Appurtenances?

Rights or privileges that go along with the land.

What is a Freehold Estate?

An ownership interest in real property for an undetermined length of time.

What is a Fee Simple Estate?

The highest form of ownership interest one can have in real property.

What is a Fee Simple Defeasible?

An estate that can be lost if certain conditions are violated.

What is a Life Estate?

Ownership interest that lasts for the duration of someone's life.

What is a Less than Freehold Estate?

An estate held by a tenant.

What is an Estate for Years?

Lease for a definite period of time.

What is a Periodic Tenancy?

Lease that renews automatically.

What is an Estate at Will?

A tenancy with no fixed term that can be terminated by either party.

What is an Estate at Sufferance?

Tenant remains on the property after the lease has expired, unlawfully.

What is a Lease?

A contract transferring possession of real property from landlord to tenant.

What is a Percentage Lease?

Lease where the rent is based on a percentage of the tenant's sales.

What is a Net Lease?

Lease where the tenant pays base rent plus property taxes, insurance, and maintenance.

What is a Gross Lease?

Lease where the tenant pays a fixed rent, and the landlord pays all property expenses.

What is a Sandwich Lease?

Sublease where the original tenant is still responsible.

What is a Sale Lease Back?

Owner sells property, then leases it back from the buyer.

What is a Tenant Improvement Allowance?

Money provided to tenant by owner for property updates.

What is Abandonment?

Tenant vacates the property before the lease expires without the landlord's consent.

What are Subleases?

Tenant transfers a portion of their lease to another party.

What is an Assignment?

Tenant transfers their entire lease to another party.

What is a Surrender?

Tenant and landlord mutually agree to terminate a lease.

What is Constructive Eviction?

Landlord's actions make property uninhabitable.

What is an Estoppel Statement?

A signed statement verifying lease terms and conditions.

What are Deeds?

Legal documents that transfer ownership of real property.

What is a Grant Deed?

Deed that conveys ownership and implies certain warranties.

What is a Quitclaim Deed?

Deed that conveys whatever interest the grantor has, without warranties.

What is a Warranty Deed?

Deed that guarantees a clear title to the buyer of real estate.

What is a Special Warranty Deed?

Warrants against defects that occurred only during the grantor's ownership.

What is a General Warranty Deed?

Warrants against all defects in title, even those prior to the grantor's ownership.

What is a Bargain and Sale Deed?

Deed that implies grantor has title but makes no warranties.

What is a Reconveyance Deed?

Deed used to transfer title from a lender to a borrower after a mortgage is paid off.

What is Title?

The right to ownership of property and the evidence of that ownership.

What is a Chain of Title?

The history of ownership of a property.

What is an Abstract of Title?

A summary of the title history.

What is a Cloud on Title?

Any defect that could affect the title's validity.

What is a Quiet Title Action?

A court action to remove a cloud on title.

What is Alienation of Title?

Transferring ownership of property.

What is Title Insurance?

Insurance policy that protects against defects in title.

What is a Standard Policy of Title Insurance?

Basic title insurance protecting against common title defects.

What is an ALTA Policy of Title Insurance?

Title insurance policy providing extended coverage.

What is an Extended Policy of Title Insurance?

Title insurance offering more comprehensive coverage than standard policies.

What is Severalty?

Sole ownership of property by one person or entity.

What is a Concurrent Estate?

Ownership of property by two or more persons.

What is Joint Tenancy?

A form of co-ownership with right of survivorship.

What is Tenancy in Common?

A form of co-ownership without right of survivorship.

What are Encumbrances?

Any claim, lien, charge, or liability attached to and binding real property.

What is an Easement?

The right to use another's land for a specific purpose.

What is an Easement by Prescription?

Easement created by open, notorious, and hostile use of another's property for a statutory period.

What is an Appurtenant Easement?

Easement that benefits a specific parcel of land (dominant tenement).

What is an Easement in Gross?

Easement that benefits a person or entity rather than a specific parcel of land.

What is an Encroachment?

When a structure extends onto another's property.

What are Liens?

A financial claim against property that provides security for a debt or obligation.

What are General Liens?

Liens that attach to all of the debtor's property.

What are Specific Liens?

Liens that attach only to a specific property.

What is a Voluntary Lien?

Lien created by the property owner's consent (e.g., mortgage).

What is an Involuntary Lien?

Lien imposed by law (e.g., tax lien).

What is a Mechanic's Lien?

Lien for labor or materials furnished for improvements on real property.

What is a Judgment Lien?

Lien resulting from a court judgment.

What are Government Powers?

Rights of the government to regulate private property.

What is Police Power?

Government's right to regulate private property for the health, safety, and welfare of the public.

What is Zoning?

Regulation of land use by local governments.

What is a Variance?

Exception to zoning regulations.

What is Down Zoning?

Changing zoning to a less intensive use.

What is a Grandfather Clause?

Exemption allowing existing uses to continue despite zoning changes.

What is a Nonconforming Use?

Existing property use that doesn't comply with current zoning.

What are Building Codes?

Regulations for construction standards.

What is Escheat?

The reversion of property to the state when an owner dies without heirs.

What is Intestate?

Dying without a will.

What is Testate?

Dying with a will.

What is Probate?

The legal process of distributing assets after death.

What is a Holographic Will?

A handwritten will.

What is Taxation?

The process of collecting money from citizens and businesses to finance government operations.

What is a 1031 Tax Deferred Exchange?

Allows investors to defer capital gains taxes when exchanging properties.

What is Boot?

Unlike property received in a 1031 exchange that may be taxable.

What is Ad Valorem?

According to value.

What is a Tax Shelter?

Any method of reducing taxable income.

What is Property Tax?

Tax based on the assessed value of real estate.

What is Income Tax?

Tax on a person's or company's income.

What is Marginal Tax Rate?

Tax rate applied to the last dollar of income.

What is Cost Basis?

Original purchase price of an asset, plus improvements, minus depreciation.

What is Eminent Domain?

The government's power to take private property for public use.

What is Condemnation?

The legal process by which eminent domain is exercised.

What is Inverse Condemnation?

When government action diminishes property value, requiring compensation to the owner.

What is Lis Pendis?

A pending lawsuit.

What are Injunctions?

Court orders to stop someone from doing something.

What is a Writ of Execution?

Court order to enforce a judgment.

What is Constructive Notice?

Legal presumption of notice based on publicly recorded documents.

What is Actual Notice?

Direct knowledge of a fact.

What is a Material Fact?

A fact that could affect a buyer's decision to purchase a property.