Real Estate1

one who acts as an intermediary on behalf of others for a fee or commission

the bringing together of parties interested in making a real estate trensaction

a place where goods can be baught and sold at a price established

a person who performes real estate activities while employed by or assocoated with a license real estate broker

when supply increases and demand remains stable, prices go down

when demand increases and supply remains stable, prices go up

the process of estimating a propertys market value based on estimated methods and the appraisers professional judgment

a person or company hired to maintain and manage property on behalf of its owner

the terms of the individual contract between owner & manager

the business of providing the funds that make real estate transactions possible

the splitting of a single property into smaller parcels

a structure erected on a site to enhance the value of the property

water lines and storm sewers

swimming pools

conducts a thourough visual survey of a propertys structure,systems, and site conditions and prepare an analytical report

providing clients with competent independent advise based on sound professional judgement

• 1. residential-multi/single fam
• 2. commercial-business and parking
• 3. industrial-warehouse, factories, power plants
• 4agricultural-farm, timberland,orchard

• 1. uniqueness-no two alike
• 2. immobility-fixed on land

• 1. labor force
• 2. construction costs
• 3. government control
• 4. government financial policies

• 1. population
• 2. demographics
• 3. employment and wages

the earths surface extending downwards to the center of the earth nd upwards to infinity, including permanent natural objects such as trees and water

land at, above and below the earths surface, plus all things permanently attached to it whether natural or artificial

the interests, benefits, and rights that are automatically include in the ownership of land and real estate

right of:

• 1. possession
• 2. control within the law
• 3. enjoyment (use prop in any legal manner)
• 4. exclusion (keep others from property)
• 5. disposition (sell, will, transfer)

the right to use th surface of the earth

the rights to the natural resources lying below the earths surface

special common law rights held by owners of land adjacent to rivers, lakes, or oceans and are restrictions on the rights of land ownership

all property that can be owned without distruction of structure

annual plantings or crops of wheat, corn, vegetables, and fruit

real prop bcomes personal prop. ex. a growing tree, owner cuts down, sevring from property

converting personal propety to real propert. ex. mix cement, stone & sand into concrete and make into walkway

personal property that has been so affixed to land or building that becomes part of the real prop.

an article owned by a tenant and attached to a rental space or building or used in coducting a business

people preferences for one area over another based on history, reputation, convnience and scenic beauty

acquiring title to additions or improvements to real prop. as a esult of annexation of fixtures or the accretion of deposits along banks of stream

the right to use the open space above a property, usually allowing the surface to be used for another purpose

a right, privilege or improvement belonging to, and passing with the land

personal prop

• 1. scarcity-rare commodity
• 2. improvements
• 3. permanence of investment-drainage,electricity, water, sewerage,etc
• 4. location and area preference

• 1. immobility
• 2. indestructibility
• 3. uniqueness

• 1. contract
• 2. general prop
• 3. agency
• 4. R.E. Lic.
• 5. Fed Reg
• 6. zoning & land-use
• 7. fed., state., & local reg

• 1. Principle and Interest
• 2. Taxes
• 3. Insurance

P.I.T.I.

a clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage generally equal to at least 80% of the propertys actual replacement cost

the interest of value that an owner has in property over and above any indebteedness

a standardized package insurance policy that covers a residental real estste owner against financial loss from fire, theft, public liability,and other common risks

the construction coat at current price of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original

coverage for injuries or losses sustained within the unit

the specisl relationship between a real estate licensee and the person he or she represents

the rights and duties of the principal and the agent

an agency relationship based on a formal agreement between the parties

an oral or written contract in which the parties state the contracts terms and express their intentions in words

an agency relationship in which the agent is given an estate or interest in the subject of the agency

one who acts or has the power to act for another

a residential real estate broker or salesperson who represents the prospective purchaser in a transaction

the principal

the third party or nonreprsented consumer for whom some level of service is provided

a licensee authorized by a broker to act as an agent for a spacific principal in a particular transation

a reltionship of trust and confidence

deception

one who is authorized by a principal to represent the principalin a specific range of matters

the agent of an agent

the individual who hires the agent

the middleman

a person empowered to do anything the principal could do personally

represents principal only for special occasions, such as the sale of a house

created when one broker, usually the sellers agent, appoints other brokers (with the sellers permission) to help perform client-based functions on the principals behalf

the agent represents two principals in the same transaction

a process that accomidates an in-house sale where two different agents are involved

where a broker may not intend to create a dual agency

• 1. exercise reasonable care
• 2. obey clients direction
• 3. acount for all money and property received
• 4. promote the clients est interest at all times
• 5. disclose material facts
• 6. perform according to erms of brokerage agreement
• 7. keep confidential all cofidential info rec. from client
• 8. comply with terms of statutes

exaggeration of propertys benefits

a hidden structural defect that wouldnt be discovered by ordinary inspection

imply that they have mutually concented to an agency relationship

a contract in which the agreement of the parties is demomstrated by their acts and conduct

a contract between an owner and a r.e. broker by which the broker is employed as aent to find a buyer for the owners reale stateon the owners terms

law making illegal certain private conspiracies formed to minimize competition

payment to a broker for services rendered

managed by fed. trade commission that lists the phone number of consumers who whish to limit amount of telemarketing calls

an act that makes contracts (incl. sisnature) and records legally enforceable regardless of the medium in which they are created

integrating information in a r.e. transaction between clients, lender, and title and closing agents electronically

someone who works for an employer and jas employee status

someone retained to perform a certain act but is subject to control by another only til the end result and not on the way the act is performed

a policy from the NAR that allows all MLS data, and respects the rights of property owners and their listing brokers to market a property as they wish

some states require licensees some amount of service to a client

the effort that bringd about the desired result

one who is prepared to buy proprerty on the sellers terms and is ready to take posititive steps to consumate the transaction

sets forthe rules for entering into an enforceable contract using electronic means

• 1. must include licensees name, office address and broker affiliation
• 2. must disclose their status as brokers or agents on each page
• 3. only a salespersons name without the sponsoring brokers name is prohibited
• 4. must be true representation and not be misleading

indicate the material on their site is soley for imformational puproses and that no warranties or representations have been made

tools that help assess the effectiveness of Internet marketing by providing statitics on the number of view, visites and other data

• 1. est. basic requirement for real estate lic.
• 2. defining which activities require lic.
• 3. acceptable standards of conduct and practice for lic & enforcing those standards

• 1. computers/laptops
• 2. internet/web sites
• 3. email
• 4. virtual communication-chat rooms, bulletin boards, etc
• 5. cell phones
• 6. digital camers
• 7. PDA-communication

1. price fixing
2. group boycotting
3. allocation of customers
4. allocation of markets
5. tie-in agreements

• 1. helping seller prepare prop. for sale
• 2. performing competitive mark analysis and pricing
• 3. assisting marketing property using MLS and any web site
• 4. drafting purchase sales aggrement and helping w/negotiations
• 5. assisting w/closing transactions

a principle-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer

a comparison of the price of recently sold homes that are similar to a listing sellers home in terms of location, style and amenities

a listing contract under which the owner appoints a real estate broker as is or her exclusive agent for a designated period of time to sell the property, on the owners stated terms

a listing contract under which owner appoints a broker as his/her exclusive agent to sell property on owners stated terms, and agrees to pay the broker a commission when propery is sold whether by broker, wner or another broker

most probable price property would bring in an arms-lenght transaction under normal conditions on an open market

marketing organization compose of members brokers that share listing in hopes to procure ready, willing and able buyers for propertys quicker than on their own

a listing based on the net price the seeller will receive if property sold

a listing contract which the brokers commission is based on the broker producing a ready, willing and able buyer befor the property is sold by the seller or another broker

listing with a provision that gives the listing broker the right, not obligation, to purchase the listing property within a certain time

the increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea

an easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbors land

the sudden tear away of land, as by earthquake, flood, volcanic action, or sudden change in the course of stream

a judicial or administrative proceeding to exercise the power of eminent domain, which the government agency takes private property for public use and compensates the owner

clause in a deed limiting the future use of a property

a right to use the land of another for a specific purpose, such as for a righ-of-way or utilities

and easement created by the government or gov agency that has exercised its right under eminent domain

and easement allowed by law as necessary for full enjoyment of a parcel of r.e.

an easement acquired by continuous, open and hostile use of the property for the period of time prescribed by state law

an easement that is not created for the benefit of any land owned by the owner of the easement but that attachs personally to the easement owner

the right of a gov or municipal quasi-public body to acquire property for public use through a court action called condemnation

a building or some part of it that extends beyond the land of the owner and illegally intrudes on some land of and adjoining owner or street or alley

anything that may diminish the value or use and enjoyment of a property

the deminishing of property by the elements

the revision of property to the state or county in cases where a person dies without heirs capable of inheriting or prob is abandoned

the degree of interest a person has in real property

the highest interest in r.e. recognized by the land

the maximum possible estte or right of ownership of eal property continuing forever

an estete which the holder has a fee simple title that may be divested upon the occurnce or nonoccurrence of a specified event

a fee simple este qualified by a special limitation

and estate in land in which ownership is for an indeterminate length of time

a person present right to an interest in real property that will not result in possession or enjoyment until some time in the future

land that is owned and occupied as the family home

a tennants right to occupy r.e. during the term of lease, generally considered to be a personal property interest

a form of life estate established by state law which come into affect when dower, curtesy and homestead occur.

• dower-the life estate wife has in r.e. of her deceased husband
• curtesy-an identical interest a husband has in r.e of deseased wife
• homestead-family home is protected from creditors during occupants lifetime

a privilage or right granted to a person by a state operate as a r.e. broker or salesperson

a right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor

an interest in real or personal prop. that is limited in duration to the lifetime of its owner of some other designated person/s

a landowners claim to use water in large navigable lakes and oceans adjacent to his/her property

the ownership rights to the land bordering these bodies of water up to the high-water mark

a wal that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both parties (duplex)

the gov's right to impose laws, statutes and ordinancs including zoning ordinances and building codes, to protect the public health, safety and welfare

a cnept f water ownership in which the landoowners right to use available water is based on a gov-administered permit system

the remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one part and the remainder to another

the remnant of an estate that the grantor holds after granting a life estate to another person

an owners rights in a land that boarder on or includes a stream, river, or lake.

adding or combining succesive periods of continuous occupation of real property by adverse possessors

the process by which a government or municipal quasi-ublic body raises monies to fund its operation

parts of a party that are necessary or convenient to the existence, maintenance and safety of a condominium or are normally in common use by all of the condo residents

a system of property ownership based on the thory that each spouse has an equal interest in th property acquired by the efforts of either spouse during marriage

the ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies

a residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of persons living within the building

title ownership held by two or more person

an entity whose rights of doing business are essntially the same as those of individual

a typical form of joint venture in which each general partner shares in the administration, profits, and losses of the corperation

a business arrangement where the operation is administered by one or more general partners and funded, by large, by limited or silent partners who are responsible for losses only to the extent of their investment

ownership of r.e. between two or more parties who have been names in one conveyance as joint tenants

the joining of two or more people to conduct a specific business enterprise

combines the most attractive features of limited partnerships and corporations which offers flexible managment structures without the complicated requirments of limited partnerships

two or more people or firms joined together to make and operate a real estate investment

a form of ownership were title is held by one individual

a form of ownership where a third individual holds title for the benefit of another

form of co-ownership where each tenant holds an undivided fractional interest in the party which doesnt have to be equal (30/30/30, 20/50/30, etc)

• 1. tenancy in common
• 2. joint tenancy
• 3. tenancy by the entirety
• 4. community property

upon death of a joint tenant, his/her interest does no pass to heirs or according to will rather the entire ownership remains in the surviving joint tenant(s)

• 1. Posession
• 2. Interest
• 3. Time
• 4. Title

PITT (Hint)

a joint tenancy is destred when any one of four unities of joint tenancy is terminate.

a form of ownership where each spouse has and equal, undivided interest in the property

• Judgment Sale
• Death
• Agreement
• Divorce

real or personal property that was owned soley by either spouse before the marriage

an association of two or more persons who carry on a business for profit as co-owners.

any type of housing connected by common walls

the division of co-tenants interest in real property when the parties do not all voluntarily agree to terminate co-ownership (takes place in court)

one that is sufficiently specific that an independent surveyor could locate the exact dimensions of the property being described

• 1. metes and bounds
• 2. rectangular (or gov.) survey
• 3. lot and block (recorded plat)

a legal description of a parcel of land that ggins at a well-marked point and follows the boundaries, using direction and ditances around the tract, back to the place of beginning (a complet square or circle)

ends where it starts

the starting point of the survey situated in one corner of the parcel

fixed objects used to identify the POB, all corners of the parcel or ends of boundary segments, or the location of interesting bountaries

a designated airspace over a of land (may be transfored)

the main imaginary line running east and west and crossing a principal meridian at a definite point, used by surveyors to reference in locating and describing land under the rectangular survey system of legal description

a permanent reference mark or pint established for use by surveyors in measuring differences in elevation

provisions in the the rectangular survey system made to compensate for curvature of earths surface

a horizontal plane from which heights and depths are measured

a parcel of land less than 160 acres, usually found at the edge of a rectangular survey

the 24-mile-square parcels composed of 16 townships in the rectangular survey system of legal description

fractional sections in the rectangular survey system that are less than one quarter-section in area

a method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat

a map of a town, section, or subdivision indicating the location and boundries of individual properties

the main imaginary line running north and south and crossing a base line at a dfinite point, used by surveyors for reference in locating and describing land under the rectangular survey system of legal description.

a strip of land six miles wide, extending north and south and numbered east and west according to its distance from the principal meridian in the rectangular survey system of legal description

a portion of township under the rectangular system (a square with mile long sids and an area of one square mile, or 640 acres)

the principal unit of the rectangular survey system (a square with six mile sides and an area of 36 square miles

all the lines in a rectangular survey system that run east and west, pararllel to the base line six miles apart

township lines that form strips of land and are designated by consecutive numbers north and south of the base line

a tax levied ccording to value, generally used to refer to real estate tax.

the imposition of a tax, charge, or levy, usualy according to established rates

the act of taking a persons property into legal custody by writ or other judicial order to hold it available for application to that persons debt to a creditor

anything that may diminish the value or use and enjoyment of a property

ex. mortgage, tax, or land, or an outstanding dower right

a factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in the line with statewide tax assessments.

a lien enposed on property value

charge or claim against a persons property made to enforce the payment of money

an effort to recover payment for work performed

a lien placed on property with the knowledge and consent of the property owner

a lien which arises out of common law

federl taxes on a decentents real and personal property

the right of a creditor to have all of a debtors propety, both real and personal, sold to satisfy a debt

a tax that is made up of the taxes levied on th real estate by government agencies and municipalities

state-imposed taxes on a decentents real and personal property

a lien placed on property without the consent of the property owner

the formal decision of a court upon the respective rights and claims of the parties to an action or suit

(after a judgment has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant)

a recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or federal court

An assessment on a local improvement district for a public improvement project the district has approved

1/10th of one cent (used to compute real estate taxes).

ex. a rate of 52 mills would be $0.052 tax for each dollar of assessed valuation of a property

a lien or charge on the property of a mortgagor that secures the underlying debt obligation

the right of a default property owner to recover his or her property by curing the default

a tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a stree or sewer

a lien affecting or attaching only to a certain, specific parcel of land or piece of property

a written agreement between holders of liens on a property that changes the priority of morgage, judgment and other liens under certain circumstances

a charge against property, created by operation of law. tax liens and assessments take priority over all other liens.

a court-ordered sale of real property to raise money to cover delinquent taxes

a lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has nnot taken any other lien or security beyond the personal obligation of the purchaser

the transfer in writing of interest in a bond, mortgage, lease or other intruments

• 1. voluntary
• 2. involuntary
• 3. statutory
• 4. equitable

• states
• counties
• cities, towns, boroughs and villages
• school districts
• drainage districts
• water districts
• sanitary districts
• parks, forest, and recreation districts

a voluntary agreement or promise between legally competent parties

when parties state the terms and show their intentions in words

certain types of contracts must be in writing to be enforceable in a court of law

the agreement of the parties is demonstrated by thier acts and conduct

both parties promise to do something; one promise to give in exchange for another

one party makes a promise to induce a second party to do something

all parties have fulfilled their promise

one or both parties still have and act to perform

offer-a promise made by one party, rquesting something in exchange for that promise

acceptance-a promise by the offere to be bound by the exact terms proposed by the offror

• 1. offer and acceptance
• 2. consideration
• 3. legally competent parties
• 4. consent
• 5. legal purpose

proposal of any deviation from the terms of the offer costitutes a rejection of the original offer and becomes a new offer

something of legal value offered by one party and accepted by another as an inducement to perform or to refrain from performing some act

• 1. valid
• 2. void
• 3. voidable
• 4. unenforceable

a contract must be entered ito as a free and voluntry act of each party

when a contract meets all the essential elements that make it legally sufficient or enforceable

when a contract has no legal force or effect because it lacks some or all of the essential elements of a contract

when a contract appears on the surface to be valid but may be rescinded or disaffirmed by one or both parties bases on some legal principle

seems on the surface to be valid; however neither party can sue the other to force performance

the contract must be prvormed withing the time limit specified

a party who fails to perform on time is liable for breach of contract

the substitution of a new contract in place of the original

a violation of any of the terms or conditions of a contract without legal excuse

one party may cancel or terminate the contract as if it had never been made

a purchaser provides a deposit when making an offer to purchase real estate

when both buyer and sellr have executed a sale contract, the buyer acquires an interest in the land

the parties agree on a certain amount of money that will compensate the nonbreaching party

a provision in a contract that requires a certain act to be done or a certain event to occure before the contract becomes binding

accurate information about real estate given to buyer

a contract by which the owner gives a purchaser or leasee the right to buy or lease the owners property at a fixed price within a certain period of time

the seller retains legal title

also called a contract for deed, bond for title,installment coontract, land sales contract or artiles of agreement for warranty deed

the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even thogh the title is retained by the seller until future date

any agreement that gives rise to the relationship of landlord and tenant or lessor and lessee

an agreement between a buyer,seller,and escrow holder setting forth rights and responsibilities of each