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The above mentioned universal property is the following: the ring homomorphism ''j'' : ''R'' → ''R*'' maps every element of ''S'' to a unit in ''R*'', and if ''f'' : ''R'' → ''T'' is some other ring homomorphism which maps every element of ''S'' to a unit in ''T'', then there exists a unique ring homomorphism ''g'' : ''R*'' → ''T'' such that ''f'' = ''g'' o ''j''.
For example the ring [[modular arithmetic|'''Z'''/''n''
Two classes of localizations occur commonly in commutative algebra and algebraic geometry:
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