Term
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Definition
| Earth's surface to the center of the earth and the air space above the land, including the trees and water. |
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Definition
| Land plus human-made improvements. |
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Term
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Definition
| Real estate plus bundle of legal rights. |
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Term
| What is the recorded plat system used for? |
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Definition
| Lot___Block____in the subdivision____in the County of _____ in the State of ______. Used particularly in urban areas to identify plots of land. |
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Definition
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Term
| What are the "4 unities" of Joint Tenancy? |
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Definition
| time, title, interest, and possession |
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Term
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Definition
| A court action or lawsuit to dissolve co-ownership of property when one (or more) co-owners want to sell a property but others do not. |
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Term
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Definition
| Both parties must sign to sell the property |
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Term
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Definition
| All co-owners are equally entitled to fee simple absolute. They have an equal undivided interest in the use, enjoyment, control, and possession. |
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Term
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Definition
| a process to set up partnerships, corporations, etc., for two or more people coming together to operate an investment |
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Term
R.E.I.T.S
Real Estate Investment Trusts |
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Definition
| A trust with ownership by a trustee for the benefit of another |
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Term
| What are the REITS requirements? |
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Definition
100 or more owners of certificates.
50% of all outstanding certificates cannot be owned by 5 or less persons
Certificates must be transferable
Income must be primarily from rent, interest on mortgages, etc. Income cannot be from capital gains on sale or exchange
At the end of each fiscal year, 95% of earned income must be distributed to beneficiaries (certificate owners) |
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Term
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Definition
| Planned Unit Development. Usually a zoning term. |
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Term
| What are the Condominium and Subdivision Common Areas Documents? |
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Definition
Master Deed
Enabling Declaration
Bylaws |
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Term
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Definition
| a collection of items or things/belongings |
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Term
| characteristics of real estate (clue 5 things) |
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Definition
1. scarcity
2. production
3. location
4. permanence of investment
5. assemblage |
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Term
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Definition
| Farm crops of a tenant farmer, which not automatically transferred with real property, and are considered personal property. |
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Term
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Definition
| A statement that commits a property to condominium ownership. It defines the rights and responsibilities of individual owners in respect to maintenance and financial liabilities. |
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Term
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Definition
| One's legal interest in property. May be either freehold or non-freehold. |
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Term
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Definition
| An estate that may be "defeated" by the failure of a condition determined in the deed, whereupon title automatically reverts to the grantor. |
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Term
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Definition
| The most complete and absolute ownership of real property. It is freely transferable, has an indefinite duration and may be left to heirs. All other estates are created from a fee simple estate. |
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Term
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Definition
| An estate in real property which is for an indefinite duration. |
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Term
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Definition
| Plants, trees, and crops that are considered real property because they are not harvested. (from Latin "fruit of nature") |
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Term
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Definition
| A business organizational form in which all general partners actively participate in ownership and management and are liable for all debt and actions of the partnership. |
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Term
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Definition
| In the Rectangular (Government) Survey System, an area bounded by 2 guide meridians and 2 correction lines, containing approximately 24 square miles. |
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Term
| Governmental Survey System |
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Definition
| Also called the Rectangular Survey System. One of 3 major methods of land description. Used for large parcels in non-urban areas. Based on principle meridians and baselines which form Quadrangles, Townships, Sections and fractions of sections. |
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Term
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Definition
| State laws that provide the first $X of equity in a person’s home are exempt from attachment by creditors, thereby often protecting against the forced sale of a person’s home. The amount can vary from state to state |
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Term
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Definition
| Man made items permanently attached to the land. |
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Term
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Definition
| A trust under which property is transferred by a living trustor to a trustee with instructions for management of assets and for distribution of income. Differs from a testamentary trust created by will and effective upon death. |
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Term
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Definition
| A form of co-ownership in which one fee simple title is undivided and shared equally among two or more owners with an automatic right-of-survivorship. Four unities--time, title, interest and possession--are required to create joint tenancy. |
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Term
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Definition
| A form of business organization in which two or more individuals come together for a business purpose and share in the profits or losses of the venture. It is treated like a partnership for tax purposes. |
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Term
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Definition
| A form of business organization in which two or more individuals come together for a business purpose and share in the profits or losses of the venture. It is treated like a partnership for tax purposes. |
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Term
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Definition
| The surface of the earth from its core center up through the sky. An understanding of this concept is important because it is possible for one person to own the rights to use the surface (surface rights), another to own the rights to drill or dig below its surface (subsurface rights), and still another to own the rights to use the air space above the land (air rights). |
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Term
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Definition
| The interest in a property of a tenant (lessee) created by a lease. It is usually the right to occupy and use the property for a stipulated period of time in exchange for the payment of rent. It is usually subject to terms and conditions that are set forth in a lease. |
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Term
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Definition
Could be any of the following:
1. metes and bounds
2. governmental survey system
3. subdivision (lot, block and tract). |
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Term
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Definition
| An interest in real property (conveyance of fee title) limited to the duration of someone's life, either the grantor or other designated person. The interest lasts for their own life only and does not pass to their heirs upon their death. Also called life use or life tenancy. |
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Term
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Definition
Those areas in a common interest community reserved for exclusive use by a particular owner.
EXAMPLE: Such as decks, storage areas or parking spaces. |
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Term
| Limited Liability Corporation |
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Definition
| A form of business organization treated like a partnership from a federal tax point of view and an "S" corporation from a liability point of view. |
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Term
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Definition
| A business organizational form in which general partner(s) are liable for all debts and actions and limited partners carry no liability beyond the amount of their investment. |
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Term
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Definition
| A legal document created by the grantor during his/her lifetime. Just like a will, a living trust spells out exactly what their desires are with regard to their assets, dependents, and heirs. "A trustee is appointed who manages the property for the benefit of the designated beneficiaries. The big difference is that a will becomes effective only after the grantor dies. A living trust bypasses the costly and time-consuming process of probate, enabling their successor trustee (who fills basically the same role as an executor of a will) to carry out instructions as documented in the living trust at the death, and also if they’re unable to manage financial, healthcare, and legal affairs due to incapacity." |
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Term
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Definition
| A map that that identifies a parcel by reference to a recorded plat map, using a lot number within a specific block which lies within a specific tract and is the basis of legal descriptions. It is used in most of the United States except in the original thirteen states. |
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Term
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Definition
| Describes the physical location of the common and individual elements (units) of a condominium. |
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Term
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Definition
| One of three major methods of land description. Used most often to describe irregular parcels using azimuth and bearing measurements. |
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Term
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Definition
| A distance in a straight line measuring 5,280 feet. |
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Term
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Definition
| Rights to subsurface minerals, oil, and gas including the rights to remove them. Like air rights, mineral rights may be owned by someone other than the owner of the surface rights. |
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Term
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Definition
| Markers used as points of beginning or other corners in metes and bounds descriptions. May be artificial (iron stakes or other man-made) or natural (trees, river centerline). |
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Term
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Definition
Less than freehold. A non-ownership or leasehold estate, which a tenant possesses in real property.
EXAMPLE: A tenant has a non-freehold estate with rights to occupy but no ownership. |
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Term
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Definition
| A court action or lawsuit to dissolve co-ownership of property when one (or more) co-owners want to sell a property, but others do not. The court may split, partition the property, or order the property to be sold and for the proceeds of sale to be divided among the owners. |
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Term
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Definition
| One of the Economic Characteristics of Real Estate. Refers to the long payback period and stable nature of real estate investment. Requires future projections on usage. |
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Term
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Definition
| The legal description in map form of a subdivision. It contains lot and block numbers and show dimensions of each parcel. Used mostly in urban/suburban areas. Plat maps are recorded by filing with the county clerk and recorder. |
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Term
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Definition
| The starting point, frequently a monument, in a metes and bounds land description. For the legal description to be complete, it must return to the POB. |
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Term
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Definition
| The main imaginary lines that run north and south, crossing a base line at a specific point. There are 36 principal meridians in the US. |
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Term
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Definition
A life estate based on the duration of the life of a person other than the grantor. (from French "for other life")
EXAMPLE: For example, if Andy is given use of the family house for as long as his mother lives, he has possession of the house pur autre vie. |
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Term
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Definition
| An area of land measuring 24 miles on each side. |
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Term
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Definition
A six-mile wide strip of land or townships which run north and south of a baseline, and numbered east or west of a principal meridian. Used in the Governmental Survey System. In the context of statistics, the range is the difference between the largest and smallest number in the list.
EXAMPLE: In the list of 12, 13, 13, 13, 15, 16, 17, 18, 21, the range is 9, (the largest number 21 minus the smallest number 12). |
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Term
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Definition
| Land plus all improvements (things permanently attached to it), running from the center of the earth up through the sky. |
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Term
| Real Estate Investment Trust |
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Definition
| A real estate mutual fund, allowed by income tax laws to avoid corporate tax. It sells shares of ownership and must invest in real estate or mortgages. A REIT allows small investors to participate in the ownership of large, potentially profitable real estate. |
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Term
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Definition
| Land plus all improvements (things permanently attached to it), and also includes the bundle of rights--interests, benefits and rights inherent of ownership. |
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Term
| Rectangular Survey System |
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Definition
| Synonym for Government Survey System also referred to as the Public Land Survey System |
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Term
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Definition
| A life estate that goes to a named third party when the life tenant dies, also known as a vested remainder interest. |
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Term
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Definition
| An interest in property retained by the creator of a life estate (the grantor) if no remainderman is named by the grantor OR the property interest retained by a landlord during the term of a lease, including the right to re-take all the rights given to the tenant during the lease term. |
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Term
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Definition
| A feature of joint tenancy whereby upon the death of one tenant, property automatically passes to the remaining tenant(s) rather than to the heirs of the deceased tenant. |
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Term
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Definition
| An IRS category of corporation that is treated like a partnership for tax purposes, avoiding taxation of corporate profits and subsequent taxation of dividends to shareholders (double taxation). |
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Term
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Definition
| A unit of land in the rectangular survey system (public land survey system) that is one mile long on each of its four sides and contains 640 acres. There are 36 sections in a six-mile square township. |
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Term
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Definition
Investments regulated by state and federal law where investors are inactive participants.
EXAMPLE: Ownership interest in a real estate investment trust is a security. |
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Term
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Definition
| The act of separating real property from attachment to the land, such as a shed, causing the real property to become personal property. Also the termination of a relationship as when a joint tenant transfers his/her interest; also breakup of one parcel of land into two or more parcels. |
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Term
| States' Rights Concerning Property |
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Definition
| The legal rights states have concerning all property. These rights are: 1. Protect the health, safety and general welfare of the public (i.e. zoning), 2. Tax the land, 3. Escheat and 4. Eminent Domain. |
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Term
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Definition
The right to use land below the earth’s surface.
EXAMPLE: Subsurface rights are mineral and water rights; they do not include surface rights or air rights.The right to use land below the earth’s surface.
EXAMPLE: Subsurface rights are mineral and water rights; they do not include surface rights or air rights. |
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Term
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Definition
| Rights to ownership that do not include air rights or subsurface rights: The ground to which you can attach improvements. |
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Term
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Definition
| A process for two or more people coming together to operate an investment, such as partnerships, corporations, etc. It is not a form of ownership. |
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Term
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Definition
| A legal form of co-ownership in some states between only lawfully married husband and wife giving both spouses equal, undivided interest in the whole property. Upon the death of one party, the remaining spouse has a right of survivorship. While living, both parties must sign to sell the property. |
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Term
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Definition
| Ownership by a sole person (individual, corporation, partnership). |
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Term
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Definition
| Trusts established by a will for the benefit of beneficiaries. If real estate is involved in the estate, a trustee will manage the real estate for the benefit of the beneficiaries. |
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Term
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Definition
| Refers to death whereby the deceased leaves a will declaring transfer of property interests to parties named in that will. |
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Term
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Definition
| A strip of land six miles wide extending east and west and numbered north and south according to its distance from the base line in the Rectangular (Government) Survey System of legal description. |
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Term
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Definition
| Ownership or right-to-use interest by multiple owners of undivided interests in a single real property for a specified period of time. Usually a resort condominium or hotel. The time period may be fixed or variable. Viewed as interests in real property, timeshare sales are regulated by the Real Estate Commission |
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Term
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Definition
| A 6 mile-square parcel of land in the Governmental Survey System. Contains 36 1 mile-square Sections. |
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Term
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Definition
| Personal property attached by a commercial tenant to assist in a trade or business. If the tenant does not remove trade fixtures within a reasonable time after the lease expires, they become the property of the landlord. |
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Term
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Definition
| Fiduciary arrangement where an owner (trustor) conveys property or money to a third party (trustee) who administers the trust for the benefit of another person (beneficiary). |
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Term
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Definition
| A third party that administers a trust or holds property on behalf of the beneficiary and carries out the wishes of the trustor. |
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Term
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Definition
| A person who creates a trust and names a trustee to manage their property or business for the benefit of their beneficiaries; the borrower in a deed of trust arrangement. |
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Term
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Definition
| An ownership interest in a percentage of a property, including use/possession of the total property. |
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Term
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Definition
| The legal right to the use of water of a natural stream or water furnished through a ditch or canal. "Special common-law right held by owners of land adjacent to rivers, lakes, or oceans and restriction the rights of land ownership. Water is not owned in the same sense that real estate or personal property is owned. What the person or entity owns is the right to use water in a variety of ways. The water can be used to irrigate crops, to support livestock, for domestic consumption by homes and businesses, to lease to other persons or entities, for a variety of recreational purposes, and so on. The two major systems of law governing water rights in this country are the riparian system and the appropriation system. (See Doctrine of Prior Appropriation, Riparian Rights, and Littoral Rights)" |
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Term
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Definition
| Adaptation concerns fixtures: How an item fits can determine whether the item is personal property or real property. Basically, if the item is "made" for the specific spot, it is a fixture. |
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Term
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Definition
| A form of co-ownership of real property in which two or more owners each owns an individual undivided percentage of the property. Co-tenants-in-common may or may not have equal ownership portions and share only the unity of possession. Upon the death of a tenant-in-common owner, his or her portion is passed to the heirs. |
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Term
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Definition
| A court order that authorizes the sale of property to satisfy a judgment |
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