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200 Cards in this Set
- Front
- Back
Broker/Salesperson Relationship Agreement
|
A written agreement required by the
regulations of the Real Estate Commissioner, setting forth the material aspects of the relationship between a real estate broker and each salesperson and broker performing licensed activities in the name of that supervising broker |
|
Advance Fees
|
A fee paid in advance of any services rendered. This fee is sometimes
unlawfully charged, in connection with that illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms. |
|
Appraiser
|
One qualified by education, training and experience who is hired to estimate
the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes. |
|
Attorney-in-fact
|
Person authorized to perform certain acts for another under a power
of attorney. Powers of attorney may be limited to a specific act or acts, or may be general |
|
Broker
|
A person employed for a fee by another to carry on any of the activities listed
in the license law definition of a broker. |
|
CAR
|
California Association of Realtors.
|
|
CCIM
|
Certified Commercial Investment Member.
|
|
Corporation
|
An entity established and treated by law as an individual or unit with
rights and liabilities (or both), distinct and apart from those of the persons composing it. A corporation is a creature of law with certain powers and duties of a natural person. Since it was created by law it may continue for any length of time that the law prescribes |
|
CPM
|
Certified Property Manager, a designation of the Institute of Real Estate
Management. |
|
Fraud
|
The intentional and successful employment of any cunning, deception, collusion,
or artifice, used to circumvent, cheat or deceive another person, whereby that person acts upon it to the loss of property and to legal injury. (Actual Fraud - A deliberate misrepresentation or representation made in reckless disregard of its truth or its falsity, the suppression of truth, a promise made without the intention to perform it, or any other act intended to deceive.) |
|
Lien
|
A form of encumbrance, which usually makes specific property security for the
payment of a debt or discharge of an obligation. Examples include judgments, taxes, mortgages, deeds of trust, etc. |
|
MAI
|
Member of the American Institute of Real Estate Appraisers
|
|
Misrepresentation
|
A false or misleading statement or assertion
|
|
NAR
|
National Association of Realtors
|
|
NAREB
|
National Association of Real Estate Brokers
|
|
Partnership
|
A voluntary association of two or more persons to carry on a business or
venture on terms of mutual participation in profits and losses |
|
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 |
|
Real Estate Board
|
An organization whose members consist primarily of real estate
brokers and salespersons |
|
Realtist
|
A real estate broker holding active membership in a real estate board affiliated
with the National Association of Real Estate Brokers |
|
Realtor
|
A real estate broker holding active membership in a real estate board affiliated
with the National Association of Realtors |
|
Appurtenance
|
Rights, privileges and improvements that belong to and pass with the
transfer of real property but are not necessarily a part of the actual property |
|
Base Line
|
A survey line running east and west (used as a reference when mapping
land) |
|
Bill of Sale
|
A written agreement used to transfer ownership of personal property
|
|
Bundle of Rights
|
An ownership concept describing all the legal rights that attach to
the ownership of real property |
|
Chattel
|
Personal property
|
|
Chattel Real
|
An item of personal property, which is connected to real estate (e.g., a
lease or an easement) |
|
Condition Precedent
|
A condition that requires something to occur before a transaction
becomes absolute and enforceable (e.g., a sale that is contingent on the seller clearing up a mechanics lien) |
|
Condition Subsequent
|
A condition which, if it occurs at some point in the future, can
cause ownership of a property to revert back to the grantor (e.g., a requirement contained in a grant deed that restricts a buyer from consuming alcohol on the property) |
|
Consideration
|
An exchange, usually rent, given to a lessor by a lessee in a leasehold
estate |
|
Doctrine of Correlative User
|
A doctrine which states that a property owner may use
only a reasonable amount of the total underground water supply for his or her benefit |
|
Emblements
|
Annual crops produced for sale. Emblements are considered personal
property and belong to the grower whether he or she is the tenant or landlord |
|
Estate
|
A legal interest in land; defines the nature, degree, extent and duration of a
person’s ownership in land or property |
|
Estate in Fee
|
The most complete form of ownership in real property; a freehold
estate that can be passed by descent or by will after the owner’s death (also known as estate of inheritance or fee simple estate) |
|
Estate of Inheritance
|
The most complete form of ownership in real property; a freehold
estate that can be passed by descent or by will after the owner’s death (also known as estate in fee) |
|
Fee Simple Absolute
|
The most complete ownership recognized by law; an estate in
fee with no restrictions on the land’s use |
|
Fee Simple Estate
|
The most complete form of ownership of real property; a freehold
estate that can be passed by descent or by will after the owner’s death (also known as estate of inheritance) |
|
Fee Simple Defeasible / Qualified
|
An estate in which the holder has a fee simple
title, subject to return to the grantor if a specified condition occurs |
|
Fixture
|
Personal property that has become part of, or affixed to, real property
|
|
Freehold Estate
|
An estate in real property that continues for an indefinite period of
time |
|
Less-Than-Freehold Estate
|
A leasehold estate, or rental agreement, that exists for
a definite period of time or successive periods of time until termination of the contract or lease |
|
Less-Than-Freehold Estate
|
A leasehold estate, or rental agreement, that exists for
a definite period of time or successive periods of time until termination of the contract or lease |
|
Life Estate
|
An estate that is measured by the life of the grantee or the life of another
person dictating the length of the estate |
|
Littoral
|
that which borders a lake, ocean or sea
|
|
Measuring Life
|
a person’s lifespan on which the life estate duration is based The
measuring life may be based on the lifespan of the grantee of the life estate or the lifespan of a neutral third party |
|
Meridian
|
A survey line running north and south (used as a reference when mapping
land) |
|
Metes and Bounds
|
A survey method by which land is described by the distance
and angle between landmarks or boundaries |
|
Monument
|
A fixed landmark used in metes and bounds land description
|
|
Personal Property
|
Anything moveable that is not real property
|
|
A map of a town or subdivision showing the division of property into tracts,
blocks and lots |
A map of a town or subdivision showing the division of property into tracts,
blocks and lots |
|
Property
|
The rights or interests an individual has in something owned
|
|
Range
|
A land description used in the U.S. government survey system consisting of a
strip of land located every six miles east and west of each principal meridian |
|
Real Property
|
Land, fixtures on the land, appurtenances to the land or anything
immovable by law |
|
Riparian Rights
|
The rights of a landowner to reasonable use of the water flowing
from his or her property when said property or land is located next to a natural watercourse |
|
Section
|
640 acres of land, considered 1/36th of a township. Each section measures
one mile by one mile |
|
Township
|
A surveyed area of land totaling 36 square miles, or six miles by six miles.
Each township contains 36 individual sections of land |
|
Trade Fixture
|
A fixture used for business that has been affixed onto rented or leased
property. Trade fixtures are considered personal property as they may be removed from the real property as long as there is no damage to the real property at the end of a lease |
|
A.L.T.A. (American Land Title Association) Owner’s Policy
|
a policy of extended title
insurance, which can be purchased by either a lender or buyer |
|
Abstract of Title
|
A full summary of all consecutive grants, conveyances, wills,
records and judicial proceedings affecting title to a specific parcel of real estate |
|
Abstractor
|
Historically, a person who searches out any issues affecting the title to
real property and summarizes the information in a findings report. |
|
Acknowledgment
|
A formal declaration to a public official or notary stating that a person
has voluntarily signed an instrument. |
|
Actual Notice
|
Knowledge acquired on the basis of actual observance(as opposed to
Constructive Notice) |
|
California Land Title Association
|
A trade organization consisting of the state’s title
companies |
|
Chain of Title
|
The recorded history of matters such as conveyances, liens and
encumbrances affecting title to a parcel of real estate |
|
Condition Precedent
|
Requires that a certain event, or condition occur before title
can pass to a new owner |
|
Condition Subsequent
|
A restriction on future use of a property, placed in a deed at
the time of conveyance |
|
Constructive Notice
|
Recording of a deed or possession of property
|
|
Conveyance
|
The written transfer of title to land from one person to another
|
|
Declaration of Homestead
|
a recorded document that protects a homeowner from
foreclosure by certain judgment creditors |
|
Dominant Tenement
|
The property that benefits from an easement.
|
|
Easement
|
The right to use another’s land for a specified purpose (also referred to as
a right-of-way) |
|
Easement in Gross
|
An easement that is not appurtenant to any one parcel (e.g.,
public utilities) |
|
Encroachment
|
The placement of permanent improvements on adjacent property
owned by another |
|
Expedients
|
Land grants recorded by the Mexican government in California
|
|
Extended Policy
|
An extended title insurance policy
|
|
Guarantee of Title
|
An assurance that a title to property is clear
|
|
Instrument
|
A written legal document setting forth the rights and liabilities of the parties
involved |
|
Judgment
|
The final legal decision of a judge in a court of law regarding the legal
rights of parties to disputes |
|
License
|
Permission to use a property, which may be revoked at any time
|
|
Lien
|
A claim on the property of another for payment of a debt
|
|
Lis Pendens
|
A recorded notice that indicates pending litigation affecting title on a
property. Lis pendens will prevent a conveyance or any other transfer of ownership until the lawsuit is settled and the lis pendens removed |
|
Marketable Title
|
a clear salable title that is reasonably free from risk of litigation over
possible defects. |
|
Partition Action
|
A court action to divide a property held by co-owners.
|
|
Patents
|
Deeds used by the U.S. government when confirming or transferring ownership
to private parties. |
|
Servient Tenement
|
The property that is burdened by an easement.
|
|
Severalty
|
Ownership of real property by only one person or entity.
|
|
Standard Policy
|
A policy of title insurance covering only matters of record.
|
|
Title
|
Evidence of land ownership.
|
|
Title Insurance
|
An insurance policy that protects the insured against loss or damage
due to defects in the property’s title. |
|
Title Plant
|
The storage facility or a title company in which complete title records of
properties in its area are housed. |
|
Treaty of Guadalupe Hidalgo
|
Ended the war with Mexico in 1848, granting possession
of California to the United States. |
|
Undivided Interest
|
That interest a co-owner has in property, which carries with it the
right to possession and use of the whole property, along with the co-owners. |
|
Vested
|
The different methods of holding title.
|
|
Abstract of Judgment
|
This is a summary of money judgment. The summary is usually
prepared so that it may be recorded, and thereby creates a lien on real and/or personal property owned by the debtor |
|
As Is Clause
|
A provision in a deposit receipt stating that the buyer accepts the property
in its present condition |
|
Assignee
|
A person or entity receiving the assignment
|
|
Assignment
|
The act of transferring an interest in property or some right to another party
|
|
Assignor
|
A person or entity that has made an assignment of rights or property
|
|
Bilateral Contract
|
A contract in which the consideration given by each party is a
promise (i.e., a promise for a promise) |
|
Breach
|
The violation of or failure to perform an obligation, either by omission or commission
(the breaking of a law or failure of duty) |
|
Condition
|
A provision in an agreement or deed that makes wherein the parties’ rights
and obligations depend on the occurrence (or nonoccurrence) of a particular event (also called a contingency clause) |
|
Consideration
|
Something of value given by one party to another in return for entering
into a contract. |
|
Contract
|
An agreement to perform or not perform do a certain action. A contract must
have four essential elements: parties capable of contracting, consent of the parties, a lawful object, and consideration. |
|
Counter Offer
|
A response to an offer to enter into a contract, which changes some of
the terms of the original offer. |
|
Covenant
|
In a deed or lease, a guarantee or promise, whether express or implied.
|
|
Deposit
|
Money that is offered as an indication of good faith regarding the future performance
of a contract to purchase(also called earnest money) |
|
Deposit Receipt
|
The document used for a prospective real estate buyer’s offer to a
seller, which also serves as the buyer’s receipt for the deposit. |
|
Disaffirm
|
To refuse confirmation; to annul, as a judicial decision
|
|
Earnest Money
|
See Deposit
|
|
Emancipated
|
A minor who is (or has been) married, is on active duty in the armed
forces or has a declaration of emancipation from a court (an emancipated minor has the legal capacity to contract) |
|
Estoppel
|
A doctrine that prevents a person from asserting rights or positions that are
inconsistent with his or her earlier actions or statements |
|
Exclusive Agency Listing
|
A listing agreement that entitles the broker to a commission
if anyone other than the seller finds a buyer for the property during the listing term |
|
Exclusive Right to Sell Listing
|
A listing under which only one broker may sell a property
and is entitled to a commission even if the owner sells the property directly to any party |
|
Executed Contract
|
A contract in which all parties have completely met their contractual
obligations |
|
Executory Contract
|
A contract in which an action remains to be performed by one or
both of the parties |
|
Express Contract
|
One in which the agreement is in words (either written or spoken)
|
|
Fiduciary Relationship
|
A relationship of trust and confidence, in which one party
owes the other (or both parties owe each other) loyalty and a higher standard of good faith than they owe to third parties(for example, a husband and a wife are fiduciaries in relation to each other) |
|
Full Performance
|
Full performance is when both parties in a contract have fulfilled
their specific duties. |
|
Implied Contract
|
One in which some of the terms are not expressed in words (either
written or spoken) |
|
Incompetent
|
Someone incapable of managing his or her own affairs by reason of
age, disease, weakness of mind, or other mental defect or cause. |
|
Injunction
|
An equitable remedy (in the form of a court order) compelling a party to
commit or refrain from committing a specific act. |
|
Liquidated Damages Clause
|
A clause in a purchase agreement that sets a sum that
the parties to a contract agree in advance will serve as compensation in the event of a breach |
|
Material Breach
|
A breach serious enough to destroy the value of the contract and to
give a basis for an action for breach of contract |
|
Minor
|
A person under 18 years of age
|
|
Mutual Rescission
|
Termination of uncompleted contract: a means of terminating an
uncompleted contract in which each party agrees to release the other party from obligation |
|
Net Listing
|
A listing under which the broker that sells the property retains as compensation
the amount of the sale price in excess of a specified sum |
|
Offer and acceptance
|
Two major requirements of a contract forming mutual consent
(combined with capacity and valuable consideration) |
|
Offeree
|
One who receives an offer (the seller)
|
|
Offeror
|
A person or entity who makes a specific proposal to another (the offeree) to
enter into a contract (the buyer) |
|
Open Listing
|
A listing that does not preclude the use of multiple brokers or a direct
sale by the owner and requires no commission paid to a broker (also called a nonexclusive listing). |
|
Option
|
A contract giving one party the right, but not the obligation to perform an
action |
|
Procuring Cause
|
The broker who sets in motion a continuous series of events that
lead to the sale, lease or financing of a property |
|
Purchase Agreement
|
A contract in which a seller promises to convey title to real
property to a buyer in exchange for the purchase price. (also called purchase and sale agreement or contract of sale) See Deposit Receipt |
|
Ratification
|
The later approval or confirmation of an act that was not authorized when
it was initially performed |
|
Right of First Refusal
|
The right to first opportunity to purchase property at the same
terms offered by a third party or at predetermined terms upon the owner’s decision to sell. (also called preemptive right) |
|
Substantial Performance
|
That degree of performance of a contract which, while not
equal to full and complete performance, is so nearly equivalent that it would be unreasonable to deny the contractor the payment agreed upon in the contract. |
|
Unenforceable
|
A contract that cannot be legally enforced by the courts (such as contracts
with minors and those containing fraud) |
|
Unilateral Contract
|
A contract in which only one party makes a promise to perform or
not perform an action |
|
Valid Contract
|
One that has force, or binding force; legally sufficient and authorized
by law |
|
Void Contract
|
One that has no force or no effect
|
|
Voidable Contract
|
A contract that is capable of being adjudged void, but is not void
unless action is taken to make it so |
|
Writ of Execution
|
An order directing the sheriff to seize property to satisfy a judgment
|
|
Actual Authority
|
the authority of an agent, specified in the agency agreement.
|
|
Agency
|
a relationship in which one party (the principal) authorizes another party (the
agent) to act as the principal’s representative in dealing with third parties or customers in a real estate transaction |
|
Agency Confirmation Form
|
a written document acknowledged by the seller, buyer,
selling agent or listing agent at the time a written contract is executed. |
|
Agency Disclosure Form
|
a written document that explains both the various relationships
of all parties involved in a residential property sale as well as whom the agent is representing in the transaction. |
|
Agent
|
a person acting on behalf of the principal when dealing with a third party in a
real estate transaction |
|
Apparent Authority
|
an agent who appears to have authority despite the fact that he
or she actually has none. |
|
Associate Licensee
|
a licensee employed by a broker
|
|
Attorney in Fact
|
a competent person with no personal connection to the transaction
authorized by another to act in his or her place |
|
Bilateral Contract
|
contract where each party has a separate obligation to perform as
provided in the contract |
|
Commingling
|
depositing a client’s funds into a broker’s personal account
|
|
Compensation
|
the payment for having fulfilled all obligations of an agency agreement,
(usually in the form of a commission on the sale of a property) |
|
Conflict of Interest
|
actions or interests an agent has in property that must be disclosed
to the principal. (e.g., dual representation or personal relationships with the third party in a sale, for example) |
|
Cooperating Brokers
|
agents working in concert to sell property listed for sale by
another agent |
|
Cooperating Split
|
the cooperating broker’s share of the commission the listing broker
receives from the sale of a property |
|
Dual Agency
|
an agent who represents both parties in a real estate transaction
|
|
Due Diligence
|
acting with the appropriate degree of skill and care in fulfilling one’s
responsibilities under an agency or other contractual relationship |
|
Duty of Care
|
the promise of a principal not to interfere with the agent’s prospective
economic advantage in finding a ready, willing and able buyer (for instance, by conducting separate negotiations with the third party unknown to the agent |
|
Employer and Employee
|
an agency agreement where the agent, or salesperson,
works as an employee of the principal (broker), or the employer |
|
Equal Dignities Rule
|
an express agency agreement established by action, rather
than in writing (i.e., not in word, but in deed). Agencies which permit an agent to establish agency in this way must establish a written contract to the principal |
|
Estoppel
|
a legal doctrine preventing a person from denying something to be true or a
fact which is contrary to previous statements made by that same person |
|
Exclusive Agency Listing
|
a listing with an agent which prevents the principal from
listing the same property with other agents during the same time period |
|
Exclusive Authorization and Right-to-Sell Listing
|
a type of listing in which the broker
is entitled to a commission (generally split between the listing broker and the cooperating broker), regardless of who sells the property. This is the most common listing agreement in California |
|
Express Agreement
|
an agreement established by an act acknowledged by both parties.
|
|
Fiduciary
|
a type of relationship that implies trust or confidence between parties
|
|
Full Disclosure
|
revilement of all material facts to parties involved in a real estate
transaction |
|
General Agent
|
an agent granted authority to carry out several transactions for one
client |
|
General Power of Attorney
|
authorization of an agent to conduct all of the business
dealings of the principal |
|
Good Faith and Honesty
|
the fulfillment of an agent’s duties in fairly representing a
principal’s interest(s) |
|
Implied Agency
|
an action of a principal that causes a third party to rely on the representation
of an agency relationship |
|
Independent Contractor
|
a person (employed by another) with nearly complete freedom
to accomplish the purpose of the employment (usually, the employment agreement between principals and listing agents) |
|
Inherent Authority
|
the authority of an agent to perform activities that are not specifically
mentioned in the agency agreement yet are necessary or customary to carry out an authorized act |
|
Loyalty
|
an important duty of an agent to reassure the principal that the agent is acting
in his or her best interest in any real estate matters (and thus placing them above all other third parties in a negotiation or transaction) |
|
Multiple Listing Clause
|
the clause in a listing agreement [usually part of an exclusive
authorization and right-to-sell listing, and taken by a member of a multiple-listing service (MLS)], which provides that a property will be made available through the MLS to participating brokers, (and in accordance with MLS rules) |
|
Multiple Listing Service (MLS)
|
an organization of real estate agents which provides
for a pool of listings for the sharing of commissions on transactions involving more than one agent |
|
Net Listing
|
a listing agreement which provides that the agent may retain (as compensation
for his or her services) all sums received over and above a net price supplied to the owner of a property |
|
Obedience
|
an agent’s duty to the principal to follow all wishes and guidelines set
forth by the principal regarding a listing agreement. (and in which the principal cannot obstruct the agent’s activities, but may offer general direction) |
|
Open Listing
|
a nonexclusive listing and right given by a property owner to a real
estate agent to secure a purchaser,. Note that more than one agent may be given such authorization, but only the first to either procure a ready, willing, and able buyer or an offer acceptable to the seller will be entitled to compensation |
|
Option Listing
|
grants the broker the right to purchase the property that is listed
|
|
Ostensible Agency
|
holding out an agency relationship on which another relies
|
|
Power of Attorney
|
a written instrument that authorizes an agent to act in the capacity
of the principal and provides authority to carry out all business dealings of the principal (in contrast to special power of attorney which provides authority to carry out only a specific act or acts). |
|
Principal
|
the employer of an agent and one of the parties to a transaction
|
|
Procuring Cause
|
the cause of a series of events that lead directly to an intended
objective (in a real estate transaction, the procuring cause is the agent who first procures a ready, willing, and able buyer) |
|
Prospective Economic Advantage
|
the idea that an agent stands to gain compensation
from finding a ready, willing and able buyer who meets the seller’s terms |
|
Puffing
|
exaggerated comments or opinions not made as representations of fact, and
thus not grounds for misrepresentation |
|
Ratification
|
the adoption or approval of an act by the person on whose behalf it was
performed (as when a principal ratifies conduct of an agent that was not previously authorized) |
|
Ready, Willing, and Able Buyer
|
a buyer who wants and is prepared to purchase
property, and is able to finance the purchase at an agreed-upon price and terms |
|
Real Estate Transfer Disclosure Statement
|
a written statement, which the seller is
required to give the buyer, regarding details of the mechanical and structural condition of a property |
|
Reasonable Care and Skill
|
a duty owed by an agent to a principal in carrying out the
tasks dictated by an agency agreement (a duty owed even if representing a principal at no cost) |
|
Recovery Account
|
state fund, financed by real estate license fees, intended to help
compensate victims of real estate licensee fraud, misrepresentation, deceit, or conversion of trust funds, in the event that a court-ordered judgment cannot be collected from the party committing the fraud |
|
Red Flag
|
that which would warn a reasonably observant person of a potential problem
and thus require further investigation |
|
Safety Clause
|
provision that protects a listing broker’s commission in the event that a
property is sold within a stated period to someone who was first brought to the property during the term of the listing by another agent. |
|
Secret Profit
|
any compensation an agent stands to gain without the principal’s knowledge
(and is not allowed by the law of disclosure) |
|
Single Agency
|
representation of only one party to a transaction (e.g., a seller’s agent
or buyer’s agent) |
|
Special Agent
|
an agent appointed to carry out only one single act or transaction.
|
|
Special Power of Attorney
|
power granted an agent the power to carry out a specific
act or acts |
|
Subagent
|
an agent of a person who is already acting as agent for the principal
|
|
Third Party
|
a person who may be affected by the terms of an agreement but who is
not a party to the agreement itself |
|
Tort
|
a negligent or intentional wrongful act arising from breach of duty created by law
and not by contract |
|
Unilateral Contract
|
a contract wherein only one party has an obligation under agreement
of a contract |