CT Real Estate Flashcards

CT Real Estate Flashcards VoidableA contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties Metes-and-bounds methodMethod of legally describing land using a POB and POE Tenancy in commonA form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner.Listing agreementAn employment contract between broker and seller. Must be in writing to be enforceable.Police powerThe power of a state to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens.Principal, interest, taxes, insuranceBasic costs of owning a home (PITI) General leinLein that affects both real and personal property Completion of purpose, destruction or condemnation of property, expiration, mutual agreement, breach by one of the parties, operation of law (ex. bankruptcy) Reasons for termination of agency (6) Residential, commercial, mixed-use, industrial, agricultural, special-purpose

• Types of Real Property

Voluntary leinType of lein created by action of the property owner Real PropertyReal estate plus rights that are automatically included in the ownership of land and real estate.Community propertyA system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage.CommissionPayment to a broker for services rendered, such as in the sale or purchase of real property.Pur autre vie"for the life of another" A life estate that is measured by the life of a person other than the grantee.LienA claim of a creditor or taxing authority against the real property of a debtor that is used as security to ensure repayment of the debt.Designated agentSomeone authorized by the broker to act as the agent of a specified principal (occurs in dual agency situations).Implied agencyBased on the actions of the parties that imply that they have mutually consented to an agency relationship.Earnest money depositMoney deposited by a buyer under the terms of a contract, to be forfeited if the buyer defaults but to be applied to the purchase price if the sale is closed.Real EstateLand at, above, and below the earth's surface, plus all things permanently attached to the land (both natural and man-made).

Rectangular survey systemMethod of legally describing land using principal meridians and base lines, splitting up land into townships.Legal life estateA form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur (dower, curtesy, and homestead).Involuntary leinType of lein created without the property owner's express permission Fructus industrialesAnnual plantings or crops of grains (personal property) Subordination agreementA written agreement between holders of leins on a property that changes priority of leins

Right of: possession, control, enjoyment, exclusion,

disposition.Bundle of legal rights Condominium ownershipThe owner of each unit holds fee simple title to the unit and own a specified share of the remainder of building and land (common elements) Eminent DomainThe government right to acquire private property for public use.Fee simple subject to a condition subsequent If an estate is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.DowerThe legal right or interest, recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage.Equitable leinLein created by a court based on the common law Specific leinLein that affects only real property Antitrust LawsLaws that prohibit price-fixing, group boycotting, allocation of customers or markets, and tie-in agreements.Fructus naturalesPerennial crops and trees that do not need cultivation (real property) AgencyThe fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal.BrokerOne who acts as an intermediary between two or more people in negotiating the sale, purchase, or rental of property AssignmentThe transfer in writing of interest in a bond, mortgage, lease, or other instrument.NonagentAssists one or both parties with the transaction without representing either party's interests and often is subject to specific statutory responsiblities.ContingencyA provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding.DatumA horizontal plane from which heights and depths are measured (usually for recording elevations) Cooperative ownershipA corporation holds title to the land and building and tenants own shares of stock in corporation. The burden of

any defaulted payment falls on the remaining shareholders.

Universal agentSomeone empowered to do anything the principal could do personally (power of attorney).Estate in landThe degree, quantity, nature, and extent of interest a person has in real property.Procuring clauseThe effort that brings about the desired result.Equalization factorA factor by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments.EscheatThe reversion of property to the state or county, as provided by state law, in cases where a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned.Freehold estatesAn estate in land in which ownership is for an indeterminate length of time RedemptionThe right of a defaulted property owner to recover his or her property by curing the default Ownership in severaltyTitle held by one individual BilateralContract having obligations on both sides ExecutedAll parties have fulfilled their promises within a contract Joint tenancyOwnership of real estate between two or more parties who have been named in one conveyance as joint tenants (observes survivorship) Ad valorembased on value Fee simple determinableA fee simple estate qualified by a special limitation. (so long as, while, or during) AppurtenanceA right of privilege associated with real property in some way.VoidA contract that has no legal force or effect because it does not meet the essential elements of a contract Statutory leinLein created by statute Broker protection clausePreserves a broker's commission if, within a certain number of days, the owner transfers the property to someone the broker introduced to them.Open listingSeller retains right to employ any number of brokers. The seller is obligated to pay commission only to the broker who successfully produces a ready, willing, and able buyer.Method of annexation, adaptation to real estate, agreement of the parties Legal tests for a fixture Lis pendensLitigation pending (notice of a possible future lein) Coinsurance clauseRequires the homeowner to maintain insurance equal to at least 80% of replacement cost of the dwelling for full replacement on loss SalespersonEmployed by or associated with the broker. Conducts brokerage activities on behalf of the broker.