RealEstateU - Washington State

partition

(n.) something that divides (such as a wall); the act of dividing something into parts or sections; (v.) to divide or subdivide into parts or shares

When should you refer a client? (2.1)

- when they're seeking legal advice - when they're seeking an appraisal - when you suspect something is wrong with the structure of the home - when the buyer and seller want to use your services (to avoid conflict of interest)

Three requirements for a fee simple estate

1. property must be alienable - right to transfer 2. property must be devisable - right to create a will to transfer ownership 3. must be descendable - the rights are inheritable

Veteran Affairs

100% of loan value, competitive interest rates, for active duty, reservist, retired military personnel and qualified dependents. Don't have to pay upfront insurance payments, seller contributions are capped at 4%

Federal Housing Administration (FHA)

3.5% down payment. Low or no credit, bankruptcy, strong income (DTI) ratio. If score below 600, 10% down

Fannie Mae "Home Ready" Mortgage Program

97% financing and cancellable mortgage insurance option to lower payments

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

Joint Tenancy

A form of co-ownership that includes the right of survivorship.

Reversionary Interest

A future interest a person has in property after present possession is terminated.

Mineral Rights (2.1)

A landowner's right to receive a portion of the profits of any minerals that are extracted from the land.

Periodic Tenancy (3.3)

A lease, which has the original terms automatically renewed for successive periods, until proper notice to terminate is given by either the landlord or tenant. Month to month rental.

Trust

A legal relation under which title to property is transferred to a person known as a trustee

Per autre vie

A life estate measured by a life other than the grantee's: "to A for the life of B."

property manager (1.1)

A person or company hired to maintain and manage property on behalf of the property owner

real estate attorney (1.1)

A person who holds a law degree and specializes in real estate; may legally broker deals

Planned Unit Development (PUD)

A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision.

Avulsion (2.2)

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.

Modular

A system for the construction of dwellings and other improvements to real property through the on-site assembly of component parts *modules) that have been mass produced away form the building.

Tenancy at Sufferance AKA holdover tenant (3.3)

A tenancy that occurs when a tenant that is supposed to vacate does not, but continues to pay rent, and the landlord accepts it.

Institute of Real Estate Management (IREM) - 1.4

A trade organization for real estate agents

Society of Industrial and Office Realtors (SIOR) - 1.4

A trade organization for realtors.

land trust

A trust in which the beneficiary retains control over the property held by the trustee. The trustee's duty is simply to sign at the beneficiary's request all documents which are necessary to convey, mortgage, or lease the property.

Testamentary Trust

A trust that is created by will and therefore does not take effect until the death of the testator.

Environmental Protection Agency - EPA (1.3)

Addresses environmental issues surrounding older homes, and the toxic materials used to build them.

Housing and Urban Development - HUD (1.3)

Addresses fair housing issues and ensures that safe housing is provided

Bundle of Rights (2.1)

All of the legal rights incident to ownership of property including rights of use, possession, encumbering and disposition.

Personal Property

All property not classified as real property

HUD Good Neighbor Next Door Program

Allows you to buy.a designed HUD property at 50% of the appraised value. Must live in house for 36 months or you have to payback 50% discount.

Cooperative

An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy specific apartment in the building.

Remainder

An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real estate.

time-share

An individual interest in a real property unit together with a right of exclusive use for a specified number of days or weeks per year.

Life Estate (3.3)

An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons. Typically created by a deed.

Riparian Rights (2.2)

An owner's rights in land that borders on or includes a stream or a river. These rights include access to and use of the water.

Fee Simple Determinable AKA fee determinable estate (3.3)

An ownership in which the estate is held " so long as" or "during the period" a condition or limitation is maintained.

What is considered a high-rise building?

Any structure with occupied living space higher than 75 feet above "the lowest level of fire department vehicle access".

What is a BPO? (1.8)

Broker's Price Opinion. A written estimate of a property's value.

Tenancy in Common

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

Regulation Z (1.3)

Comes from the Federal Trade Commission (FTC) and is designed to protect consumers from unfair lending practices. Along with the Truth in Lending Act (TILA), THE Equal Credit Opportunity Act (ECOA), etc.

Tax

Enforced charge extracted of personal, corporations and organizations by the government to be used to support government services and programs.

Real Estate Settlement Procedures Act -RESPA (1.3)

Ensure that mortgage companies aren't taking advantage of borrowers

Who to call for antitrust concerns such as fraud (1.3)

FBI and DOJ

International Building Code (IBC)

Guidelines which base classification on the height of occupied space.

Restrictions on fee simple absolute

HOA or local zoning ordinances

The Washington State Department of Ecology (1.3)

Has a say in where you can build, what you can destroy, and protects sacred land.

Real Estate (2.1)

Land plus anything permanently attached to land.

Real Property (2.1)

Land, things affixed to land, appurtenances, plus the bundle of rights.

LLC (Limited Liability Company)

Limited liability, pass through income taxation, flexibility

How do you determine if something is a fixture? (can't be moved)

M.A.R.I.A. - Method of attachment: How is the item attached to the land or structure? - Adaptability: is it custom built for this space? - Relationship of the parties: Is what's included discussed before the closing of deal (in writing?) - Intent of the seller: What the item intended to be permanent? (built-in bookshelves) - Agreement:

Does your managing broker provide health insurance and deduct taxes? (1.6)

No, they aren't required to if you aren't considered as an employee by the IRS. Most broker jobs have independent contracting agreements.

Remainderman

One entitled to receive a remainder interest in some estate sometime in the future.

Ownership in Severalty

One owner of the property

Trustor

Person who creates a trust

Trade Fixtures

Personal property used in a business and can be removed by the lessee when the lease terminates.

eminent domain

Power of a government to take private property for public use; the owner must be fairly compensated.

Emblements

Refers to crops which require annual planting.

Who defines how a real estate broker works and classifies employment type (1.6)

State licensing board and the IRS

The governing agency for real estate attorneys is...(1.2)

The American Judiciary Institute

The governing agency for mortgage brokers are...(1.2)

The National Mortgage Licensure State, state licensing requirements, and the Consumer Financial Protection Bureau (CFPB)

condemnation

The act of taking private property for public use by a political subdivision upon payment to owner of just compensation.

Where deeds and mortgages are record...(1.3)

The county's recording department

Life Tenant

The holder of a life estate.

Land (2.1)

The materials of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

Fee Simple Absolute (3.3)

The maximum possible estate or right of ownership of real property, continuing forever.

The National Association of Realtors (NAR) - 1.4

The most well known trade organization for realtors

The Recording of the Deed

The recording of a deed is extremely important, and must be done if the document is to become public record and protect the owner's interests. Mortgages, deeds, and other relevant documents are recorded in a land registry office or county recorder, depending on how the state has set up the recording processes. States also decided which documents become public records.

Escheat

The reverting of property to the State when heirs capable of inheriting are lacking

Littorial Rights (2.2)

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

police power

The right of the state to enact laws and enforce them for the order, safety, health, morals and general welfare of the public

Air Rights (2.1)

The rights in real property to the reasonable use of the air space above the surface of the land.

The governing agency for property managers, home inspectors, and contractors is...(1.2)

The state licensing authority

The governing agency for appraisers is...(1.2)

The state licensing authority. Regulations and requirements for appraisals vary by state.

The governing agency for title companies is...(1.2)

The state licensing authority. Regulations and requirements regarding titles vary by state.

Leasehold Interest (3.3)

The tenant's possessory interest created by a lease.

Erosion (2.2)

The wearing away of land by the act of water, wind, or glacial ice.

The Transfer of Ownership

Transferring ownership from one party to another is known as "conveyance." There are a variety of deed types, each with a specific purpose, so the correct deed must be used if the title is to be transferred correctly.

Right of Survivorship

Upon the death of a joint tenant or tenant by the entirety the interest does not pass to the tenant's heirs but to the other join tenant(s).

Trade Organizations (1.4)

Usually support policies that benefit specific industries

condominium

a building or complex of buildings containing a number of individually owned apartments or houses.

Partnership

a business owned by two or more people who share its risks and rewards

mortgage banker (1.1)

a financial middleman who, in addition to bringing the borrower and the lender together, makes loans, packages them, and sells the packages to both primary and secondary investors. Also services loans.

Mobile Home

a home that can be moved by a vehicle or one that has its own engine

Tenancy for years AKA Estate for years (3.3)

a leasehold interest for a definite period of time exceeding one year

living trust

a legal arrangement that can serve as an alternative to a will

appraiser (1.1)

a person whose job is to examine a building and say how much it is worth

Tenancy at Will (3.3)

a tenancy granted by landlords to tenants allowing them to remain in possession without written agreement

mortgage broker (1.1)

agent who brings together lender and borrower for a fee

home inspector (1.1)

an individual who inspects homes for defects prior to the closing of a home sale to protect the buyer or lender's investment.

contractor (1.1)

coordinates all aspects of construction

What is a freehold estate? (3.3)

estate (ownership interest)in land in which one has both possession and (indefinite) ownership rights in real property.

Tenancy by the Entirety

form of joint tenancy ownership for husband and wife

Accretion (2.2)

growth in size or increase in amount by natural forces

County assessor's office are...(1.3)

involved with the value of land, taxes on property, parcel numbers, legal description, etc

Fixtures

items of personal property that are attached or annexed to real property

beneficiary

one who receives benefits

Freehold interest (3.3)

ownership interest

architect (1.1)

person who designs and makes plans for buildings

Chattel

personal property

Community Property

property obtained during the course of the marriage

Accession (2.2)

the right of an owner of property to an increase in that property by man or by natural forces

Alluvium (2.2)

the sorted material deposited by a stream