Real Estate Terms Study Guide Exam: Superior Real Estate, Exams of Advanced Education

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Superior Real Estate Terms study guide exam

Bill of Sale - ---Title of personal property is transferred from one entity (i.e. person) to another by use of a document called... Chapter 1 Chattle - ---Another word for personal property. Not used to describe personal property in NC; National word to describe personal property. Also known as Personalty. Chapter 1 Free Market - ---An economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies. (Quizlet def.) No bully determining how or when a person/entity buys or sells real estate besides supply and demand. (personal def) Chapter 1 Highest and Best Use - ---The possible use of a property that would produce the greatest net income and thereby develop the highest value. (Quizlet) Appraiser determines what the highest value in both possible return on investment and usage of the land. (personal) Chapter 1 Immobility - ---Land can not be moved (physical characteristic of land) Chapter 1

Improvements - ---Buildings, roads, and other additions to land that increase its value. (Quizlet) Additions to the land (ie houses) that are artificially attached (personal) Economic characteristic of land Chapter 1 Indestructibility - ---Land is non destroyable. It can be altered but its geographic coordinates remain the same. (physical characteristic of land) Chapter 1 Non-homogeneity - ---Land: No two pieces are exactly alike. Another word for it is uniqueness. This can either be a good or bad thing in regards to selling a property. (physical characteristic of land) Chapter 1 Personal Property - ---The state word for chattel of Personalty. Anything that is owned which isn't real property: land, core, heavens. Chapter 1 Personalty - ---Another word for Personal Property or Chattel. Usually used on the National Level. Chapter 1 Real Estate - ---Another word for real property. Natural to the area. From the heaven to the core of the Earth. Chapter 1

Real Property - ---Land, Air, Core of the Earth. Ownership conveyed by a deed. Chapter 1 REALTOR - ---A trademarked name for a member of the National Association of REALTORS and its state and local affiliates. (Quizlet) Chapter 1 Realty - ---Another word for real property Chapter 1 Scarcity - ---Land is not overflowing. It has a fixed amount, can affect supply and demand. (economic characteristic of land) Chapter 1 Situs - ---Location of a piece of land. (economic characteristic of land) Chapter 1 Air Rights - ---Air above the surface. Is usually limited due to zoning ordinances and local/federal laws dealing with air traffic. Chapter 2 Alienation - ---The transferring of property to another; the transfer of property and possession of lands, or other things, from one person to another. (quizlet) Chapter 2

Appurtenance - ---something extra; an appendage; an accessory (Quizlet) Things that "run with the land." Bundle of Rights. (personal) Chapter 2 Bundle of Rights - ---The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property. (quizlet) Tangible or intangible. Chapter 2 Condemnation - ---The process of taking private property for public use through the government's power of eminent domain. (Quizlet) Chapter 2 Condominium - ---Air unit ownership. Ownership includes the airspace of individual unit and co- ownership of common areas. Chapter 2 Cooperative - ---Corporation formed for the building. Tenants hold stock. Tenants hold proprietary leases that aren't considered real property. Chapter 2 Co-ownership - ---Title ownership held by two or more persons. (Quizlet) Chapter 2 Dower - ---The rights that a wife acquires in her husband's fee simple property. (Quizlet)

Chapter 2 Easement - ---The right to use land for a specific and limited purpose (Quizlet) Chapter 2 Easement in Gross - ---An entity's personal right to use property. The receiver DOES NOT own the adjoining property. Example: utility easement (Quizlet) Chapter 2 Emblements - ---Growing crops, such as corn, that are produced annually through labor and industry; also called fructus industriales. (Quizlet) Chapter 2 Encroachment - ---Intrusion on a person's territory, rights, etc. (Quizlet) Chapter 2 Encumbrance - ---A claim against, limitation on, or liability against real estate is an encumbrance. Encumbrances include liens, deed restrictions, easements, encroachments, and licenses. An encumbrance can restrict the owner's ability to transfer title to the property or lessen its value. (Google) Chapter 2 Escheat - ---Forfeiture of a decedent's property to the state in the absence of heirs (Quizlet) Chapter 2 Estate - ---A real property interest that includes the right of exclusive possession (Quizlet). An Estate is to have the right to both possess and use the land.

Chapter 2 Estovers - ---A necessity allowed by law; for example, the right of a life tenant to use some of the property's resources to provide for needed repairs. (Quizlet) However, the life tenants may not make a profit off the natural resources of the estate. If violated, considered an act of waste. Chapter 2 Fee Simple Absolute - ---Greatest form of ownership available in real property. You get your bundle of rights. Chapter 2 Fixture - ---An item of personal property that has been converted to real property by being permanently affixed to the realty. (Quizlet) It is considered to be part of the land. Chapter 2 Foreshore - ---The state-owned land between the mean high watermark and the low watermark of an ocean or lake. Chapter 2 Freehold estate - ---An estate in which a person owns the land for life or forever. (Quizlet) Otherwise known as a Leasehold Estate. Chapter 2 Fructus Industriales - ---An Emblements, considered real property, plant or crop that require annual cultivation (Quizlet). Also known as Fruits of Industry, they are natural things that require outside interference to grown and be plated.

Chapter 2 Fructus Naturales - ---Growing things (i.e. plants) that do not require annual cultivation and are considered real property. Also known as Fruits of Soil, they grow on the land without outside interference. Chapter 2 Hereditament - ---Any property, whether real or personal, which is capable of being inherited (Quizlet). Anything in the definition of land or tenement which can be inherited. Chapter 2 Intestate Succession - ---The succession of an heir at law to the property and estate of his ancestor when the latter has died without a will (Quizlet). In NC, there are a group of statutes distributing ownership to someone after the original owner passed away without a will. Chapter 2 Joint Tenancy - ---A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. (Quizlet). NC DOES NOT FAVOR THE RIGHT TO SURVIVORSHIP, the deed must exclusively note survivorship is wanted. It can pass to heirs and DOES NOT have to be equal. Chapter 2 Judgement Lien - ---A lien placed on property to settle a judgement from a lawsuit (Quizlet) Chapter 2 Lateral Support - ---The right of land to be supported (ex. physical features) in it's natural state by the adjacent land (i.e. neighbors).

Chapter 2 Leasehold Estate - ---An interest in real property that gives a tenant a qualified right to possess and/or use the property for a limited time under a lease. (Quizlet) Also known as a Freehold Estate. Simple Estates are inheritable and Life Estates are not inheritable. Chapter 2 Levy - ---Impose or raise a tax (Quizlet) Chapter 2 Lien - ---Placed on a piece of property if taxes haven't been paid. Usually need to be paid in order of when the Lien was placed. However, Real Estate Liens are always paid off first. Chapter 2 Life Estate - ---A non-inheritable freehold estate. Chapter 2 Life Tenant - ---The holder of a life estate. Ownership lives as long as the holder of the life estate does. Non-inheritable. Chapter 2 Lis Pendens - ---A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court. (Quizlet)

Chapter 2 Littoral Rights - ---rights of a landowner adjacent to a lake or land bordering bodies of water affected by tides. Remember "L" - Littoral/Lake. Chapter 2 Marital Life Estates - ---Estates created by the exercise of the right of dower, curtesy, or a statutory substitute. They are life estates. Chapter 2 Mineral Lease - ---A lease that grants to a lessee the exclusive right to enter the lessor's premises to explore, drill, produce, store, and remove minerals specified in the lease. A leasehold estate in the area below the surface of land. Chapter 2 Non-Freehold Estate - ---Less than freehold. A non-ownership or leasehold estate, which a tenant possesses in real property (Quizlet). Usually a rental interest in real property. Chapter 2 North Carolina Condominium Act - ---Legislation passed in 1986 that set requirements for the sale or resale of condominiums. Requirements include disclosure, right to rescind contract for seven days, special escrow rules, and timely provision of required documents. (Quizlet) Chapter 2 Partition - ---A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. (Google)

Chapter 2 Police Power - ---Police power is the state's inherent right to regulate an individual's conduct or property to protect the health, safety, welfare, and morals of the community. That comes up a lot on the exam. Unlike the exercise of eminent domain, no compensation need be paid. (Google) Chapter 2 Prescriptive Easement - ---An easement obtained by the open, notorious, hostile and continuous use of the property belonging to someone else for a statutory period of time.(POACH) (Quizlet) Chapter 2 Pur Autre Vie Life Estate - ---For the life of someone else; this estate is not inherited and measured by the life of someone else besides the owner or the seller. Chapter 2 Remainderman - ---One entitled to receive a remainder interest in some estate sometime in the future. (Quizlet) Chapter 2 Reversionary Interest - ---The remnant of an estate that the grantor holds after granting a life estate to another person. (Qiuzlet) Chapter 2 Riparian Rights - ---An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water. Appurtenant Right. Chapter 2

Severalty - ---Ownership of real property by one person only, also called sole ownership. Chapter 2 Survivorship - ---The right of survivorship is an attribute of several types of joint ownership of property, most notably joint tenancy and tenancy in common. When jointly owned property includes a right of survivorship, the surviving owner automatically absorbs a dying owner's share of the property. (Google) NC: In a Joint Tenancy Agreement, Survivorship is not guaranteed. Chapter 2 Tenancy by the Entirety - ---The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property. Default for married people in NC. Chapter 2 Tenancy in Common - ---A form of concurrent ownership where two or more persons hold separate titles in the same estate. May have equal or unequal shares. Right of partition. Default for unmarried people in NC. Shares pass to heirs after death. Chapter 2 Tenements - ---All things included in the definition of land. Also includes corporeal (ie buildings) and incorporeal (ie easement) parts of land. Chapter 2 Timeshare - ---An ownership arrangement in which co-owners each have an exclusive right to use a condominium unit (or other property) for a specified time period each year. REAL PROPERTY IN NC.

Chapter 2 Townhouse - ---A dwelling of two or three stories that attaches at sidewalls to other units; each person owns walls and air space plus property rights and yard of the unit. (Quizlet) Chapter 2 Uniform Commercial Code - ---recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments (Quizlet) Chapter 2 Ad Valorem - ---Taxes based on the value of the property. The NC Machinery Act lays out the details of NC property taxation. Chapter 3 Assessed Value - ---The value of an asset determined by tax authorities for the purpose of calculating taxes (Quizlet). The NC Machinery Act requires that the value placed upon property for the purposed of taxation be based off MARKET VALUE. Chapter 3 Assessment - ---Determine the value of a property for taxation purposes (through Appraisals,...). Chapter 3 Market Value - ---Also known as True Market Value. Is based 100% off the Assessment. Chapter 3

Mill Rate - ---National Property tax rate that is expressed in tenths of a cent per dollar of assessed valuation (Quizlet). It equates to one-thousandth of a dollar. (ie .1x.01=.001 mill = one mill) (use 1000 as a reference in multiplications) Chapter 3 Mills - ---1/10 of one cent or 1/1000 of a US Dollar based off 1000 Chapter 3 Acknowledgement - ---Recognition for a notable deed. A witness must state the signing was done by the grantor and that the signing was voluntary. Chapter 4 Adverse Possession - ---The actual, open, notorious, hostile, and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title. Chapter 4 Beneficiary - ---The person who is to receive a gift of personal property by will. Chapter 4 Bequest - ---A gift personal property by will.

Chapter 4 Bounds - ---Refers to boundaries; used with the word "metes" in the metes and bounds method of land description. Determined by a surveyor. Chapter 4 Chain of Title - ---The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title. Usually from about 40 to 60 years previous of the current owner. Determined by a Title Examinator. Chapter 4 Cloud on Title - ---Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title. (Quizlet) Chapter 4 Color of Title - ---Under Adverse Possession. Possession of unoccupied land for a period of time. The title gives claim to the property. Chapter 4 Condemnation - ---The process of taking private property for public use through the government's power of eminent domain. (Quizlet) Chapter 4 Conner Act - ---A NC law that requires many types of real estate documents to be recorded for protection against claims from third parties. These documents include deeds, mortgages, purchase

contracts, installment land contracts, assignments, options, leases exceeding three years, easements, and restrictive covenants; a pure race statute. Chapter 4 Covenant Against Encumbrances - ---A promise that the property is not encumbered with liens, easements, or other such limitations except as noted in the deed. (Quizlet) Chapter 4 Covenant of Quiet Enjoyment - ---A promise that no one has superior or paramount title to that of the grantor; assures the grantee of peaceful and quiet possession without fear of being ousted by a person with a superior claim to the property. Also that you may enjoy the property. In the General Warranty Deed. Chapter 4 Covenant of Right to Convey - ---A promise in a deed that the grantor has the legal capacity to convey the title (Quizlet). Follows Covenant of Seisin in the General Warranty Deed. Chapter 4 Covenant of Seisin - ---Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it." In the General Warranty Deed. Chapter 4

Covenant of Warranty - ---A promise in a deed that the grantor will guarantee/warrant and defend the title against lawful claimants. In the General Warranty Deed. Chapter 4 Deed - ---The official document transferring ownership from seller to buyer Chapter 4 Descent - ---When an owner dies without leaving a will intestate succession occurs, where property is given to the heirs of the owner who passed. Chapter 4 Devise - ---A gift of real estate made by will. Chapter 4 Eminent Domain - ---Power of a government to take private property for public use. Chapter 4 Excise Tax - ---1/500 of real estate sale, tax paid by seller. (ex. $74,000 cash sale = 74,000/500= $ tax) Chapter 4 Executor - ---Male Person designated to execute the terms of a will. Chapter 4

Executrix - ---A woman appointed by the will of a deceased person to carry out the provisions thereof and settle the estate. Chapter 4 Foreclosure - ---The seizure of property from borrowers who are unable to repay their loans/debts. Chapter 4 Government Rectangular Survey System - ---Is a type of land description method that utilizes longitude and latitude lines where the country or states or townships are divided by N-S lines called meridians and E-W lines called base lines. NOT USED IN NC. Chapter 4 Grantee - ---A person who receives a conveyance of real property from a grantor. Chapter 4 Grantor - ---The individual who conveys the ownership rights of real property. Chapter 4 Intestate - ---Dying without a will. Chapter 4 Judicial Deed - ---A deed issued through a court-ordered proceeding.

Chapter 4 Legal Description - ---A written description of a parcel of land which locates it precisely and will hold up in court. (Does not include address.) Chapter 4 Lien Foreclosure Sale - ---A sale of real property at public auction to satisfy a specific or general lien against the property. These sales do not have the consent of the owner/debtor, and title is typically conveyed by trustee's deed. (Quizlet) Chapter 4 Marketable Title Act - ---Provides that if a chain of title can be traced back for 30 years and no other claim has been recorded during that time the title become a marketable title. Chapter 4 Meridian - ---North - South line that divides country/state/townships in the Government Rectangular Survey System. Chapter 4 Section - ---1 square mile/1 mile square in the Government Rectangular Survey System. Each section is 640 acres. Chapter 4 Special Warranty Deed - ---Identical to a general warranty deed except that the covenant against encumbrances applies only to the time that the grantor owned the property. LIMITED Deed. Chapter 4

Statute of Frauds - ---A state statute under which certain types of contracts must be in writing to be enforceable. Chapter 4 Suit to Quiet Title - ---A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title. Usually used in Adverse Possession cases. Chapter 4 Testate - ---To die with a valid will Chapter 4 Testator - ---A man who makes a valid will Chapter 4 Testatrix - ---A woman who makes a valid will Chapter 4 Title Examination - ---A search of the public record to determine the quality of a title to real property. Chapter 4 Title Insurance - ---A policy/contract that protects the insured against loss or damage due to defects in title. Chapter 4

Township - ---A square normally 6 miles on a side. The Land Ordinance of 1785 divided much of the United States into a series of townships. Each township has 36 square miles to the area. In the Government Rectangular Survey System. Chapter 4 Will - ---A legally enforceable declaration, usually in writing, of how a person wishes his or her property to be distributed after death Chapter 4 Words of Conveyance - ---Early in the deed will be words such as "does hereby grant, bargain, sell and convey unto..." that serve to assure the grantor clearly intends to convey an interest in real property and indicates, the type of deed offered by the grantor. Chapter 4 Amendment - ---A change in the zoning code. Chapter 5 Building Codes - ---A set of rules that specify the minimum acceptable level of safety for constructed facilities for the public. Chapter 5 Certificate of Occupancy - ---Permission by the municipal inspector to occupy a completed building structure after being inspected and having complied with building codes. (Quizlet) Chapter 5

Conditions - ---Some deeds mandate that if a restriction is acted upon the property will return to the original owner. Chapter 5 Covenant - ---A promise in writing Chapter 5 Deed Restrictions - ---Clauses in a deed limiting the future uses of the property. Chapter 5 Enabling Acts - ---State legislation that confers zoning powers on municipal governments. NC General Assembly provides legal basis for local cities and counties to develop long term plans for growth. Chapter 5 Injunction - ---Violation of a zoning law is addressed by a court injunction. Violation must be discontinued. Chapter 5 Interstate Land Sales Full Disclosure Act - ---Federal law that regulates the sale of certain interstate properties (ie the sale of unimproved lots) Chapter 5 Master Plan - ---Overall plan for orderly growth Chapter 5

Negative Covenants or Easements - ---Promises on the part of the purchasers of property in the subdivision to limit their use of their property to comply with the requirements of the restrictive/protective covenants. Chapter 5 Nonconforming Use - ---A pre-existing use of land which does not conform to the zoning ordinance but which may legally remain. Chapter 5 Overlay District - ---a type of zoning that is superimposed over another type of zoning ex. River - a residential flood plain B91 Ex. pg 102 Chapter 5 Planned Unit Developments - ---The creation of a neighborhood of cluster housing with businesses Chapter 5 Private Land Use Controls - ---The regulations of land use by individuals or non government organizations in the form of deed restrictions, and restrictive covenants. Chapter 5 Property Report - ---In the Interstate Land Sales Full Disclosure Act the developer must disclose info about the land before a purchase contract or a lease is signed by the purchaser/lesee. Chapter 5

Public Land Use Controls - ---Under police power, each state has the authority to adjust regulations required for protecting public health, safety and the general welfare Ex. zoning, building codes, environmental protection laws (Quizlet) Chapter 5 Restrictive/Protective Covenants - ---Limitations on land use binding on all property owners by the grantor. A form of private land use control. Widely used by developers or residential subdivisions. Chapter 5 Run with the Land - ---Certain restrictions, easements and covenants are part of the ownership of land and thus are not terminated when title is transferred but remain in effect from owner to owner. (Quizlet) Chapter 5 Setback - ---Distance between front/interior property line to the point where a structure can be located. Chapter 5 Special Use - ---An exception, or special use, built into a zoning ordinance that must be granted if the criteria for the exception are met. (Quizlet) Chapter 5 Spot Zoning - ---When a particular property or group of properties is rezoned to permit a use different form the neighboring properties use. (Quizlet) Chapter 5

Statement of Record - ---In the Interstate Land Sales Full Disclosure Act a developer must file a disclosure of info about the property as specified by HUD before offering unimproved lost on the interstate line. Chapter 5 Subdivision Regulations (Ordinances) - ---Public control of the development of residential subdivisions. (Quizlet) Chapter 5 Variance - ---A permitted deviation from the actual requirements of an existing zoning ordinance. It does not mean the zoning law has changed. Chapter 5 Zoning Ordinance - ---A law that limits the permitted uses of land and maximum density of development in a community. Both Exclusive-Use zoning and Cumulative-Use zoning are ok. Chapter 5 Asbestos - ---A long, thin, fibrous silicate mineral with insulating properties, which can cause cancer when inhaled. There is both Friable and Non Friable Asbestos. Chapter 6 CAMA - ---Computer assisted mass appraisal also called CAMA is a term used to describe a software package used by government agencies to help establish real estate appraisals for property tax calculations. (Google) Chapter 6 Carbon Monoxide - ---A colorless, odorless toxic flammable gas formed by incomplete combustion of carbon.

Chapter 6 CERCLA - ---Comprehensive Environmental Response, Compensation, and Liability Act. Puts a tax on the chemical and petroleum industries. Chapter 6 Encapsulation - ---Treatment of asbestos-containing materials (ACM) with a sealant material that surrounds or embeds asbestos fibers in an adhesive matrix to prevent the release of fibers. A bridging encapsulant creates a membrane over the surface. A penetrating encapsulant penetrates the material and binds its components together. (Google) Chapter 6 EPA - ---Environmental Protection Agency Chapter 6 Lead-Based Paint - ---Disclosure of lead based paint is required on all properties built before 1978. Can lead to poising and damage to the central nervous system. Chapter 6 LUST - ---Leaking underground storage tanks Chapter 6 NC Dredge and Fill Act - ---Permit for dredging, Affecting wetlands and coast. Part of federal clean water act. Chapter 6