Modern Real Estate Practice Pt2

49 terms by Egyptkm 

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Procuring Cause

A broker starting or causing a chain of events that resulted in a sale.

Ready, Willing, and Able Buyer

A person who is prepared to buy on the seller's terms and ready to take positive steps toward consumation of the transaction.

Antitrust Laws

Laws that prohibit monopolies and any contracts, combinations, and conspiracies that unreasonably restrain trade and interfere with the free flow of goods and services in a competitive marketplace.

Price-Fixing

The practice of setting prices for products or services rather than letting competition in the open market establish those prices.

Group Boycotting

Two or more businesses conspire against another business or agree to withold patronage to reduce competition.

Allocation of Customers or Markets

An agreement between real estate brokers to divide their markets and refrain from competing for each other's business, including geographic, price range, and category of housing.

Tie-in Agreements

Agreements to sell one product only if the buyer purchases another product as well.

Internet Lising Display Policy

Policy that allows all MLS embers to have equal rights to display MLS data while respecting the rights of property owners and their listing real estate brokers to market a property as they wish.

UETA and E-Sign

Two federal acts that help make electronic contracts and records legally enforceable.

Exclusive-right-to-sell lising

An employment agreement in which the broker is given the exclusive right to market the seller's property and receive a commission regardless of who sells the property.

Exclusive-agency listing

An employment agreement in which one broker is authorized to act as the exclusive agent of the principal, however, the seller retains the right to sell the property without the obligation to pay the broker.

Open Lising

An employment agreement in which the seller retains the right to employ any number of brokers as agents and is only obligated to pay a commission to the broker who successfully produces a ready, willing, and able buyer.

Multiple Listing Service

A marketing organization whose broker members make their own exclusive listings available through other brokers and gain access to other brokers' listed properties as well.

Net listing

An employment agreement in which the broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission.

Broker Protection Clause

A clause that provides that the property owner will pay the listing broker a commission if within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner.

Buyer Agency Agreement

Employment contract in which the buyer hires the broker to find a property to buy. Broker owes fiduciary responsibilities to buyer/client.

Police Power

The state's authority passed down to municipalities and counties through enabling acts to enact nondiscriminatory legislation to preserve order, protect the public health and safety, and promote the general welfare of citizens.

Examples of Police Power

Environmental protection laws, zoning ordinances, building codes, regulations that govern the use, occupancy, size, location, and construction of real estate

Eminent Domain

The power of the government to take private property for a public or economically beneficial use with just compensation paid to the property owner.

Condemnation

The process in which exercises eminent domain that begins with a judicial or an administrative proceeding.

Taxation

The right of government to charge real estate in order to raise funds to meet public needs.

Escheat

The right of government to ownership of property left by a deceased property owner who has no will or lawful heirs.

Freehold Estate

An estate in land in which ownership is for an indeterminate length of ‎time, in contrast to a leasehold estate.

Fee Simple / Fee Simple Absolute

The highest interest in real estate recognized by the law entitling the owner to to all rights to the property by law.

Fee Simple Defeasible

A freehold estate that is subject to the occurance or nonoccurance of some specified event.

Fee Simple Determinable

A fee simple defeasible estate that is qualified by a special limitation in which the former owner retains a future interest in the form of a possibilty of reverter in which the reacquires the deed without going to court for violation.

Fee Simple subject to a condition subsequent

A fee simple defeasible estate that is qualified by a special condition in which the former owner retains a future interest in the form of the right of reentry through the court for violation.

Life Estate

A freehold estate in which the creator of the estate gives ownership of the estate to a life tenant for the duration of the tenant's life or the life of another person (pur autre vie) and in which the creator of the estate may designate a remainder-man who inherits the land at the end of the life estate (remander interest) or the creator of the estate may retain a reversionary interest at the end of the life estate.

Dower and curtesy

A legal life estate that provides the nonowning wife (dower) or husband (curtesy) a lifetime right to one-half or one-third interest in the real estate of the owning spouse even if the owning spouse wills the estate to others. Replaced by Uniform Probate Code in most states.

Homestead

A legal life estate in real estate owned and occupied as a family home that is protected at least partially from unsecured creditors during the occupant's lifetime.

Encumbrance

A claim, charge, or liability that attaches to real estate, such as liens (usually monetary charges), easements, licenses, encroachments, and other restrictions that affect the condition or use of the property.

Covenants, Conditions, and Restrictions (CC&Rs)

Private agreements that affect land use.

Appurtenant Easement

An easement involving two adjacent parcels of land owned by two different parties in which the owner of one of the adjacent parcels (dominant tenement) is given the right to use the other party's land (servient tenement) for a particular purpose.

Easement in gross

An individual or company interest in or right to use someone else's land.

Easement by necessity

Court ordered easement that allows the owner the right of entry and exit when the owner's property is landlocked and has no access to a street or public way.

Easement by prescription

An easement acquired by continuous, open, and hostile use of another's property for a period of time prescribed by state law.

License

A personal privilege to enter the land of another for a specific purpose.

Encroachment

A structure that illegally intrudes on the land of another or beyond legal building lines.

Riparian Rights

Owner's rights in land that borders on or includes a stream, river or lake. Rights include access to and use of the water.

Littoral Rights

(1) A land owner's claim to use water in large navigable lakes and ocean's adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high water mark.

Doctrine of prior appropriation

The right to use water other than limited domestic use is controlled by the state rather than by the land owner adjacent to the water. A person must show a beneficial use for the water, such as crop irrigation, in order to secure water rights.

3 Forms of Ownership

Severalty (title held by one individual or entity), Co-Ownership (title held by two or more individuals), and Trust (title held by a neutral invidual for the benefit of another)

Tenancy in Common

A form of co-ownership where owners have full rights of possession to the land and the right of disposition of their interest to the land. Each co-owner has undivided but not necessarily equal fractional interest in the property.

Joint Tenancy

A form of co-ownership in which all tenants have full right of possition and undivided and equal interest to the property which was acquired at the same time by the same document. Upon death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenant(s).

Tenancy by the Entirety

The joint ownership, recognized in some states, of property acquired by husband and wife during a legal marriage. Upon the death of one spouse the survivor becomes the owner of the property.

Metes and Bounds

A method of legally describing land which involving measuring distances (metes) from the point of beginning to the point of ending and following compass directions or angles (bounds) and makes use of both the physical boundaries (monuments) and measurements of the land.

Rectangular Survey System

System for surveying and legally describing land by reference to principal meridians, base lines, township lines, range lines; also called government survey system.

Lot and Block (Recorded Plat) System

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. (See legal description, subdivision).

3 Most Common Units of Land Measurements

Mile = 5,280 feet, Acre = 43,560 square feet (approx 207 X 207 feet), and Square Mile = 640 acres

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