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Essential Vocabulary for Real Estate Exam

Aug 23, 2024

Real Estate Vocabulary for Illinois Broker Examination

Introduction

  • Host: Nanya - Real Estate Tutoress
  • Focus: Terms needed for the Illinois Real Estate Broker Examination
  • Aim: Understand words rather than memorize definitions

Key Concepts

1. Land

  • Definition: Earth's surface, center to air space above
  • Includes: Trees, water, natural attachments

2. Real Estate

  • Definition: Land plus human-made attachments (e.g., house, sidewalk)

3. Real Property

  • Definition: Land, real estate, plus ownership interests, benefits, rights

4. Personal Property

  • Definition: Movable items not included when real estate sells (e.g., furniture)

5. Trade Fixtures

  • Definition: Items installed by business in rented space
  • Key Point: Personal property until lease ends

6. Severalty

  • Definition: Ownership by one entity or individual
  • Origin: From "sever" meaning to cut off

7. Tenants in Common

  • Definition: Co-ownership with undivided fractional interest
  • Key Points:
    • Ownership can be unequal
    • Interests can be inherited

8. Joint Tenancy

  • Definition: Equal co-ownership created simultaneously
  • Key Point: Right of survivorship

9. Tenants by the Entirety

  • Definition: Co-ownership for legally married couples
  • Specific to Illinois

Types of Estates

10. Estate in Land

  • Definition: Degree of interest in real property
  • Includes: Ownership, rental, licenses

11. Freehold Estate

  • Definition: Ownership for indefinite time

12. Leasehold Estate

  • Definition: Tenant’s right to occupy based on lease

13. Fee Simple Absolute

  • Definition: Highest ownership rights, free and clear

14. Fee Simple Defeasible

  • Definition: Ownership with conditions
    • Example: No alcohol consumption condition

15. Life Estate

  • Definition: Ownership limited to lifespan of an individual

16. Life Tenant

  • Definition: Person holding life estate

17. Per Autre Vie

  • Definition: Life estate based on another's life

Government Rights and Legal Processes

18. Eminent Domain

  • Definition: Government’s right to take private property

19. Escheat

  • Definition: Government acquires property with no will/heirs

20. Testate

  • Definition: Dying with a will

21. Intestate

  • Definition: Dying without a will

Easements and Encroachments

22. Easement

  • Definition: Right to use another’s land for specific use

23. Appurtenant Easement

  • Definition: Easement involving neighboring land parcels

24. Servient Tenement

  • Definition: Land burdened by easement

25. Dominant Tenement

  • Definition: Land benefiting from easement

26. Easement by Necessity

  • Definition: Required easement for land use

27. Easement by Prescription

  • Definition: Easement acquired through long-term use

28. Easement in Gross

  • Definition: Easement for utility or railroad use

29. Encroachment

  • Definition: Structure extending over property line

Conclusion

  • Review and understand vocabulary for the exam
  • Encourage watching the video multiple times
  • Engage in discussion through comments

Note: This summary provides key terms and concepts to understand for the Illinois Real Estate Broker Examination. It is beneficial for students and individuals interested in obtaining a real estate license.

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