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430 Cards in this Set

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Imovable by law
when the law states that an item of personal property is required to stay with the land. it then becones real property
Free simple defeasible
Owner holds title subject to deed restrictions
3 methods used to describe and locate
1.lot block and tract system
2.mets and bounds system
3. government survey aka US section and township system
Life estates
Created by deed or will for the life of one or more designated human beings
Estate and remainder
Upon death of the life estate holder property can transfer to someone else
Estate
Degree, quantity, nature and extent of interest a person has in property.
The life tenant has the rights of?
Possession, or income during the life of the designated person
Real property estates falls into 2 major classifications
Freehold estate and less than freehold estate
Tendency in common
1. Who can hold title
2. Ownership interest
3. Upon death
4. Disposition of title
1. Any two or more persons
2. Any percentage equal or not
3. Probate required
4. Convey interest with out permission
Joint tenancy
1. Who can hold title
2.Ownership interest
3. Upon death
4. Disposition of title
1. Any two or more persons
2. All shares must be equal
3. Right of survivorship no will
4. Convey interest without permission
Community property
1. Who can hold title
2. Ownership interest
3. Upon death
4.Disposition of title
1. Couples
2. Equal shares
3. Special probate, right to will, goes to surviving spouse
4. Need both signatures to convey title
A person can hold title and severalty
As single as unmarried as married as a registered domestic partner as a widow or widower
The right of survivorship
If one tenant dies the surviving joint tenant acquired the deceased's interest without a court action
Limited liability
Limited partners can lose only their investment and cannot be held liable for partnership debts.
ownership in severalty
When a person acquires real property and holds title solely in their name
Community property
All property acquired during a valid marriage
Living trust
Created during a person's life time to avoid probate
Concurrent ownership
When two or more people hold title together
To create and maintain a valid joint tenancy four unities must exist
Unity of time
unity of title
unity of interest
unity of possession
T
T
I
P
Free simple qualified
Owner holds, special conditions, limitations or private deed restrictions that limit the use of the property
Free simple absolute
Owner holds without any qualifications or limitations (private deed restriction) highest form of interest a person can have
Less than freehold estate
Are interest held by tenants who rent or lease property
Freehold estates
One's interest as an owner of real property
Separate property
Property owned by couples that is not community property or property acquired by couples before marriage or by gift after marriage
Estate in reversion
The property is to be returned to the person who gave the life estate to their heirs
Most important characteristic of joint tenancy is
right of survivorship
1 Square acre =
208.71 feet
Ownership
The right of one or more persons to possess and use the thing which is owned to the exclusion of others
The bundle rights
To own to possess
to use
to enjoy
to encumber or borrow money
to dispose
to exclude others who do not share ownership of property
7
US government survey system
Establishes monuments as point of beginning
A deed is void or invalid if...
1. Grantor is incompetent
2.Deed is signed blank
3. Deed is not delivered
4. Deed is forge
5. Grantee does not exist
6. Deed is altered in escrow
1 mile=
5280 feet or 320 rods
1 rod=
16 1/2 feet
Partition action
co owners sue other co owners
Acquiring property by transfer
Private grant
public grant
gift
public dedication
court action
5
Limited Partnership
Real estate syndicate's hold title to property
Tenancy in partnership characteristics
1. Partner can only use the property for business
2. Partnership property is not assignable
3. Not subject to attachment or execution
4. Form of survivorship when one partner dies
4
5 test of fixtures
Method of attachment
Adaptability
Relationship
Intention of parties
Agreement between parties
maria
Real property
1. Land
2. That which is affixed to the land
3. That which is appurtenant or incidental to the land
4. That which is and immoveable by law
4
the law of intestate sucession
When a deceased person has no will the law decides to will get the property
Chattel and chose stand for
Personal property
Appurtenant
Is anything used by the land for it's benefits and goes with the land
Public dedication
Property owner transfers land to public
like schools or playground
Quit claim deed
Provide the grantee with the least protection of any deed
Emblement
Growing vegtable crops
riparian rights
Owners of the land that borders on a river or stream
escheat
The reverting of property to the state when heirs cannot be found
Trade fixtures
Personal property that a business tenant has attached a real property because of their needs to be used in a trade or business
cash register counters shelves
statutory will
State approved pre printed form requires two witnesses
Trust deed
Title is held by trustee as security for a loan
deed
Written title to real property is transferred from 1 person to another
Essentials of a valid deed
1. In writing
2.Parties correctly described
3. Competent grantor and capable grantee
4.Clear description
5. Granting clause
6. Bearing the signatures of the grantor
Grantor
Person who gives title
Grantee
Person who receives title
3 types of wills
1. witnessed will
2. holographic will
3. statutory will
eminet domain
power of the state to take land from private ownership by due process of law
Probate
Find the creditors of the deceased and pay of those creditors
Property
That which is subject of ownership
Private grant
When an owner voluntarily gives up their ownership rights to another
Witness will
An attorney prepared document signed by the maker and 2 witnesses
Holographic will
Written document that is dated and signed by the maker
Right of appropriation
State gives permission to a nonriparian to take water from a river
1 acre =
43,560 square feet
A deed is not effective unless
It is delivered to an accepted by the grantee
Subdividing
Dividing a large parcel of land into smaller parcels
Public grant
Governmental agency deeds property to an individual
Tax deed
An after acquired title provision occurs
Recording a deed gives
Constructive notice
Reasonable air space above the land
Is considered to be land
Acknowledgement
Formal decoration before a duley authorized officer by the person who signed it
Benchmark
Fixed or enduring object that is used as an elevation point
Metal stake or rock
Grant deed
The most commonly used instrument for transferring title to real estate
mets and bounds system
When the property is not covered by a recorded subdivision map or when the property is irregular in shape
The executrix of an estate is
named in the teatator's will
5 elements of adverse possion
1. Actual occupation
2. Person using property without permission (hostile)
3. Claim of right or color title4. 4.Continuous & uninterrupted possession for 5 years
5. Payme5 by possessor of all real property taxes
A
P
C
C
P
A will is also called a
Testament
Adverse possession
The process by which title to another's property is acquired without compensation
Accession
Acquired title to property that is added to your existing realestate
Encumbrances
Is anything that burdens the owner's title with a legal obligation. It is right of interest in the property possessed by someone other than the owner.
Encumbrances fall into two categories
nonmoney encumbrances and money encumbrances
Nonmoney (phsysical) Encumbrances
Affect the physical condition or use of the property .
examples easement public and private restrictions an encroachment
money encumbrances
Realestate loans or property taxes, where the property is held as security for repayment of a debt
Easement
Is a right to enter or use another person's property or a portion thereof, within certain limitations without paying rent or being considered a trespasser.
the most common type of easement is
a right-of-way aka easement for ingress and egress
dominant tenement
the property that benefits from the ise of the easement
servient tenement
the property subject to the easement or the easement is exposed.
party wall
a wall dividing ajoining buildings
easement appurtenant
stays attached to the property
easement in gross
when utility companies but poles in people's land
5 most common ways easements can be created
1.deed
2. necessity
3. dedication
4. condemnation
5. prescription
easement by deed
written. must comply with the law. and signed by the owner.
landlock
buyer must appeal to court to create an easement.
easement by dedication
an owner voluntarily dedicates an easement for publis use
easement by condemnation
acquire easement against the land owners will. its for public use. owner will be reimbursed.
easement by prescription requirements
1. property hostile to owners wishes
2. using property openly and notoriously
3. right of claim or color title
termination of an easement
1.quick release.
2.quiet title action.
3.when the owner of the dominant tenement becomes the owner of the servient tenement.
4. filing abandonment.
5.nonuse of 5yrs.
cc&r
covenant, conditions. and restrictions
public restrictions
government imposes public restrictions
police power to restrictions
1. zoning
2. building codes
3. health codes
encroachment
wrongful construction of a building
lien
Property is held as security for payment of debt.
voluntary lien
a mortgage or deed
involuntary lien
law action required. mechanics lien, tax lien, attachments and judgement liens
general lien
income tax and judgement liens
preliminary notice
mechanics must give written notice to the owner, general contractor, and construction lender. served 20days of the 1st day of labor.
attachments
Property is seized pending the outcome of a court action
judgement
is a decision of court as a result of a lawsuit.
writ of execution
to collect on a judgement
declared homestead
1.must be recorded
2.claimant lives on the premises
3. description of the premises
six month rule
owner has 6 months to invest equity into a new home
an easement is an example of
encumbrance on real property
formally declared homestead can be terminated by
1. untrue statements in homesread declaration
2. selling the property
3. filing an abandonment
when a property owner discovers that a neighbor has built a structure on a portion of his or her property, how long does the property owner have to bring an action against the neighbor?
6 months
a deed does not have to be recorded to be
valid
abstract of judgement
a plaintiff goes to court to get a judgement to create a lien on defendant's property
if zoning laws allow a property to be used in such a mannwe that is prohibited by a lawful deed restriction the
deed restriction should prevail
once property recorded an abstract of judgement is good for
10 years
landlord must file a nonresponsibility within
10 days
a judgement is considered to be a
general lien
commingling
broker mixes the funds of their principal with the broker's own money.
conversion
misappropriating and using the client's money
subagent
real estate agent can assign some of their duties to other licensed agents
misappropriation
the failure of a broker or a salesperson to disclose a material fact about the property.
Dual Agency
Broker represents both the seller and buyer in the same transaction with both parties consent.
false promise
false statement about what the promiser is going to do in the future.
trust funds
Money or other items of value that an agent receives on behalf of a principal in a real estate transaction
single agency
broker acts as an agent to only the seller or only the buyer
buyers agent
to find property for the buyer
sellers agent
sellers ask the broker to find a buyer for the sellers property
fiduciary relationship
is loyal, obedient, and confidential, for the principals best interest
agencies are created in 3 ways
agreement, ratification, and estoppel
general agency
broad powers to act on behalf of the principal
special agency
limited or well-defined powers real estate agent are special
agent
represents a principal by making a deal with a third party for the principals benefits
independent contractor
an individual is hired to accomplish results with little or no supervision
recovery refunds
public can tecover money when there are uncollectable court judgements obtained against a real estate licensee max per person $50k max for multiple claims is $250k
secret profit
broker who already has a higher offer from another buyer, makes a low offer
broker receives a deposit has 3 days to
1. give the deposit to the principal
2. put deposit in escrow
3. put the deposit in a trust fund account
termination of real estate
1. completion of agency agreement
2. expiration of time
3. death of the principal or agent
4. destruction of the property
5. unilateral action of the agent or the principal.
cooperating agents
find a buyer for the other brokers and act as the agent of the buyer
commingling
broker mixed the funds of his or her principal with the broker's own money.
cooperating agents
find a buyer for the other brokers and act as the agent of the buyer.
transfer disclosure statement
detail facts about the property.
inspected by real estate agent
must be signed by all
major mandatory disclosures
1. disclosure regarding real estate agency relationship
2. Real Estate transfer disclosure statement
3. Residential Environmental and Earthquake hazards disclosures
4. Natural hazard disclosure statement
5. common interest development general info
6. seller financing addendum and disclosure
seller financing addendum
and disclosure statement
if a sale involves a seller carry loan then a statement clearly outling all the financing terms must be signed by the buyer, seller and real estate agent.
option
is a contract between the owner of a property and potential purchaser
these contracts must be in writing to be enforceable
1. agreement with 1year
2. special promise
3. agreement made on consideration of marriage
4.an agreement to lease real estate
5. an agreement to employ an agent
6. an agreement to not perform during a persons lifetime
7. agreement to pay in debtness by mortgage
executory contract
some act of the contract remains to be completed by 1 or more of the parties.
real estate listing.
seller promises to pay a commission if the broker finds a buyer. not complete until the broker finds a buyrt5
valid contract
is one that is binding and enforceable. you can sue.
void contract
is an agreement that the courts will not consider a contract. contract has no legal effect. (like a minor)
emancipated minors
minors who are married, serving in the military, or whose parents have been relieved of legal responsibility
voidable contract
one of the parties has the option of proceeding with the contract or calling it off (force or fraud)
unenforceable contract
is valid but can not be sued upon
5 essential elements of a real estate contract
1. capable parties
2. mutual consent
3. sufficient consideration
4. lawful object
5. must be in writing
Parties capable of contracting
(essential elements of a real estate contract)
2 or more parties with the legal capacity to contract (not minors or incompetent people)
mutual consent
(essential elements of a real estate contract )
both agree to terms on the contract
lawful object
(essential elements of a real estate contract )
something that is required to be done or not be done.
sufficent consideration
(essential elements of a real estate contract)
return of one promise for another
or
something of value exchanged for something of value
the statue of fraud
(essential elements of a real estate contract)
contract must be in writing to be enforceable in court. Any changes must be in writing dated and initialed
full performance discharge of contracts
Parties accomplish what they set out to do in the contract
breach of contract
(discharge of contracts)
at least one of the parties did not fulfill its part of the agreement
in case of a breach contract the injured party has 2 remedies
1. sue for damages
2. sue for specific performance
statue of limitations
begin the lawsuit within a legally prescribed time period
4 statue of limitations
1. 3 years for removal of encroachment
2. 4 yeats to bring action on an unwritten contract
3. five years for recovery of title to property
4. 90 days after filing a mechanic's lien
other ways to discharge a contract 7
1. part performance
2. substantial performance
3. impossibility of performance
4. agreement between parties
5 . release
6. operations of law
7. acceptance of a breach of contract
provisions on contracts of real estate 7
1. date of agreement
2. names & addresses
3. description of property
4. the consideration
5. other provisions that may be required or requested
6. mortgage terms & conditions
7. date & place for closing contract
bilateral contract
a promise from one person is made in exchange for a promise from another person (most real estate contracts)
expressed contract
the parties have agreed to perform an act or acts verbally or under a written agreement
implied contract
the parties have not formally agreed verbal or through a written contract to perform an act. they agree to perform through their actions (building a fence)
executed contract
all parties have performed and fulfilled their obligations.
types of authorization to sell 4
1. open listing
2. exclusive agency listing
3. exclusive authorization and right to sell listing
4. net listing
listing agreement
authorization to sell. a contract between a broker and seller
counter offer
by the seller automatically doss away with the buyers original offer. offer made by the seller to the buyer.
multiple listing service
group of brokers who are with a real estate association
common interest development general info
if a buyer is making a purchase in a planned unit development pud the buyer must be given information about the covenant, conditions and restrictions cc&r and the amount of homeowners dues.
real estate transfer disclosure statement
before closing the sales the seller must give the buyer a statement regarding the condition. the agent must do a physical inspection. seller, buyer and agent must sign the form.
disclosure regarding real estate agency relationship
agent & principal agree on the agent representing them in the sales transaction
open listing
is geiven to more tgen one agent. the agent who finds a buyer first gets the sale. one commission is paid.
exclusive agency listing
1. one brokers name is on the contract
2. more then one brojer can share on commission
3. seller may sell the property themselves without paying a broker commission
4. definite termination date
exclusive authorization and right to sell listing
the most common form of listing, the broker gets comission no matter who sales the property.
can split commission.
has a definite termination date
real estate purchase agreement aka deposit receipt
contract between the buyer and seller that outtlines the terms for the purchase of real property. receipt for the buyers deposit
natural hazard disclosure statement
1. special flood area
2. an area of potential flooding if a dam fails
3. a very high severity area
4. a wildland forest fire risk area
5. an earthquake fault zone
6. seismic hazard zone
residential environmental & earthquake hazards disclosures
the buyer & seller sign a disclosure form about various earthquake issues. like a unreinforced masonry and other building construction items.
unilateral contract
one party making a promise without the promise of the other party. like $100 reward for a lost wallet.
a listing is a
bilateral contract
within a prescribed time periof an inexcusable delay might limit a lawsuit according to the
doctrine of laches
when a buyer purchases subject to the existing loan
the buyer agrees to take over the payments but not be responsible for the debt.
exempt from the real property loan law 4
1. regulated institution lenders (bank)
2.purchase money transaction
3. loan by first trust deed principal os $30k or more
4. loan secured by junior trust deed when principal amount is $20k or more
right of reinstatement
5 days beforr the date of sale. The trustor (borrower) can reinstate the loan by paying all delinquent installments, foreclosure cost and trustee fees.
deficiency judgement
lender sues a borrower after a foreclosure when the proceeds from a foreclosure where not enough to cover the loan
installment sales contract
is an agreement between the seller, (vendor) and the buyer (vendee) where the buyer is given possession and use of the property and makes regular payments to the seller
truth in lending law
requires a lender to quote the cost of borrowing as an annual percentage rate
hypothecation
to give something as security for a loan without giving up possession
acceleration clause
the lender can say all sums are immediately sue if the borrower has not made mortgage payments, property tax payments or destroyed the property
a deed of trust
3 party instrument consisting of a borrower (trustor) a lender (beneficiary) and a neutral third party (trustee). trustee keeps title as security until paid off
notice of sale
is filed if the borrower fails to reinstate the loan.
final sale
anyone can bid on the property through public auction. all bidd must be in cash
loan modification
borrowers may try to renegotiate their loan terms with the lender
alienation (due -on-sale) clause
the lender has the right to say all money is now due if the borrower gives the title to a new owner.
prepayment penalty clause
allows a lender to charge the borrower a penalty if the loan is paid before the scheduled due date. No prepayment penalty on FHA insured, VA guranteed or CalVet home loans
mortgage loan broker law
mortgage brokers to give a loan disclosure statement to all borrowers before they become obligated for the loan. it shows closinf cost, loan expenses and commissions.
installment note
most common type of note. payments included both principal and interest
straight note
interest only note
leverage
the use of borrowed funds to obtain an asset
balloon payment
smaller monthly payments but there is a lump sum due at the end
balloon payment is prohibited if the term of the loan is for
6 years or less and the loan is secured by the dwelling place of the borrower.
amortized loan
a loan that is completely paid off, interest and principal by regular payments
negative amortized
loan payment does not cver even the monthly interest
wraparound mortgage or deed of trust aka all inclusive trust deed
fiancing device used to increase the lenders yield upon the sale of real property to make it easier for the buyer.
real estate settlement procedure act RESPA
requires a lender to give a borrower a good faith estimate of closing cost and requires a hud-1 closing statement
regulation z
requires a lender to give the bo5 a disclosure statement showing a complete breakdown of all loan costs. they have 3 days to cancel
subordination clause
new construction loan to be put as a first deed of trust
junior deed of trust
when buyer does not have enough money to cover the cost of the sale. second loan by the seller.
notice of default
record a notice of default in the county where the property is located. has a 90 day grace period.
adjustable rate loan
monthly payments may decrease or increase over the life of the loan
fixed interest rate
the interest rate is set and does not change
Assume A sellers existing loan
the buyer agrees to take over payments and become personally responsible for the debts
What government program has the lowest interest ?
Cal-vet
the VA requires how much of a down payment
zero
During a Cal -vet loan title to real property usually rest with
The Department of Veteran Affairs
A secondary mortgage market is
when existing real estate loans are bought and sold
Fannie Mae refers to
The federal National Mortgage Association
A loan that meet Fannie Mae and Freddie Mac guidelines is known as
Conforming loan
When a seller carries back a junior loan this is best described as
Secondary financing
calHFA
Is a program for first time home buyers
negligent misrepresentation occurs when
a broker should have known that a statement about a material fact was false
failure to specify definite termination date in a listing contract is grounds for
suspension or removal of real estate licenses.
when a person dies testate they die with
a will. real property would be transferred by devise
fee simple defasible
possibility of reverter/right of entry
if state law permits, the unities of time, title interest, posession and person would be created when
someone buys real estate
land contract aka installment sale
seller agrees to finance a loan for the buyer
habendum clause
is found in a deed. the seller is transferring their rights to the new owner.
the RESPA real estate settlement procedure act
prohibits a kick back from service providers. like a gift from a lender for a referral
value in use (utility value)
the value that you place in a property that has been in your family for 100 years.
market value
the highest price for property that would sell in the open market
depreciation
a loss in value
physical deterioration is a loss in value caused by
wear and tear
lack of maintenance
damage by termites
weather conditions
functional obsolescence is a loss in value caused by
unpopular floor plan
lack of updated modern appliances
poor or unpopular architectural design
economic obsolescence is a loss in value resulting from
zoning
misplaced improvements (a house next to a all night gas station)
drop in demand for real estate
appreciation
is an increase in value by inflation or supply and demand
for most home buyers the value they want to know is
market value
the best use of land is that which produces the greatest net return to the land
principle of highest and best use
the most comprehensive type of appraisal report is
summary (short- form) report
for existing residential homes the best appraisal approach is
the market approach
the most comprehensive appraisal skill level is
certified general
When evaluating a 20 year old home the appraiser assigns it an age of only 10 years because of the extreme good care taken by the owner this is an example of
Effective age
the higher the capitalization rate
the lower the value
a change in zoning is what type of force that influences values
political
the value of one home tends to be influenced by the price of acquiring equally desirable homes is called
substitution
the most difficult depreciation to cure is
economic
4 elements for property to have value
transferability
scarcity
utility
demand
the final step in the appraisal process bringing together the market, cost and income is
correlation aka reconciliation
estate for years
a leasehold that continues for a fixed time span. can be a day, a week, a month a year or years.
estate from period to period (periodic tenancy)
a leasehold that continues from period to period. no specified termination date
Estate at will
a lease can be terminated without notice at any time by the lessor or lessee. has no termination date
estate at sufferance
a leasehold where a lesse retains possession of the property after the lease has expired.
requirements for a valid lease
1. be in writing
2. contain the names of the lessor & lessee
3. contain a description of the property.
4. show the rent amount
5. state the length of the lease
6. signed by the lessor
7. lessor and lesse legally able to contract
8. have renewal provisions in boldface type.
an assignment of a lease
tranfers the entire leasehold interest to another party including the responsibility of making payments to the landlord
sublease
transfers only a part of the term of the lesse to a sublessee. the original lessee is is still liable to the landlord
sandwich lease
a leasehold interest that lies between the primary leaseand the operating lease.
lease wiyh option to buy
Property is rented for a period of time, at the end of which the lessee is given the right to purchase.
gross lease
the tenant pays a flat rental amount, and the landlord is responsible for taxes, maintenance and insurance
triple net lease (tim)
the tenant pays rent, landlord's property taxes, hazard insurance and maintenance.
net lease
commercial property is leased on a long term basis
percentage lease
rent is based on the percentage of the tenants gross sales.
if yhe tenant has occupied the property for over a year the landlord can terminate a month to month lease by giving the tenant a
60 day notice.
if the tenant has occupied the property for less then one year the landlord can give the tenant a
30 day notice
unlawful detainer action
process of legally removing a tenant from possession.
30 notice
landlord files unlawful detainer action
writ of possession by sheriff
the sheriff sends the tenant an eviction notice
seller closing cost
transfer tax
prepayment penalty
structural pest control
real estate brokerage comission
discount points
recording & notary fees
title & ecrow fees
natural hazard disclosure fees
nonrecurring closing cost
loan orgination fee
appraisal fee
credit report fee
structural pest control inspection fee
tax service fee
recording fees
notary fees
assumption fee
title escrow fee
escrow
a neutral third party acts as the closing agent for the buyer and seller
legal requirements for valid escrow
1. a binding contract
2. conditional delivery of transfer instru2 to a neutral 3rd party
interpleader action
a court action forcing the principals in escrow to figure out their differences
services performed by an escrow company 7
1. prepares escrows
2. request pay off for sellers loans
3. collects pest control reports
4. collects fire insurance policy
5. balance accounting details
6. collects money required to close
7. verifies all documents are recorded
uniform settlement statement
itemizes all closing charges.
borrower must see this form one day before the close of escrow
RESPA real estate settlement procedure act
-A federal law that applies when a person purchases an owner occupied residence.
-requires a lender to give the borrower a special info booklet and good faith estimate of closing cost.
-prohibits kickbacks
-$10k fine or 1 year in jail
title insurance companies services
1. search and gather public records for legal title of real estate
2. examine and interpret the title records
3. insure an owner/lender against financial loss from unreported defects in the title
the standard policy (types of title insurance policies)
CITA California Land Title Association
most used
1.standard owners policy-insures the amount of purchase
2. standard lender policy- insure the lender for the loan amount
3. standard joint protection policy- co-insures the owner & lender
a history of all title transfers of a particular parcel of land is called
chain of title
termination of lease
expiration or mutual consent
mobile home park tenants
gets a 60 day notice
covered by title insurance policies
forged deeds
liens of records
incompetent owners of records
extended coverage policy
(types of title insurance policy)
ALTA American Land Title Association
a physical inspection of the property and insures against certain unrecorded title risks
the title records in the office of the title company are called
plant
the most extensive title assurance is
insurance of title
recurring closing cost
hazard insurance
tax proration
tax & insurance reserved aka impound account or trust account
intetest due before the 1st loan payment
CPM stands for
certified property manager
an unfurnished apt deposit amount is up to
two months rent
a deposit for a furnished apt amount is up to
3 months rent
the law that states that certain leases must be in writing to be enforceable is the
statue of frauds
most unlawful detainer actions are heard in
superior court
in an apt complex an insite resident manager is required if there are
16 or more units
government use of police controls
rent controls
building codes
zoning ordinance
the subdicision map act is administered by
local officials
before a developer can sell a lot in a new cali subdivision containing 5 or more lots the prospective buyer must receive a copy of
public report
A developer from Nevada wishes to sell 300 Los Vegas lots to California residents and open sales offices in Los Angeles and San Francisco. The developer need not conform to the
subdivision map act
The right of the consumer within a specified time to rescind a land purchase contract and receive a full refund applies to new
Land projects of 50 lots or more
A development where a person individually owns his or her living unit but has an undivided interest with the other owners in the land and common area is a
condominium
the selling of 1/2500 share in a northern California recreational ranch is an example of a
undivided interest
The law that prevents agents from discriminating when providing real estate services is the
unruh Civil Rights Act
The law that makes it illegal for real estate lenders to redline a neighborhood is the
Housing financial Discrimination Act
Which of the following is the best example of a common interest development
Condominium
recorded cc&r and an homeowners association are mandatory for a
condominium
a deviation from the established zone requirements is called
a variance
if private deed restrictions allow some use that is prohibited by zoning the rule is that
zoning prevails
a simple lit split is governed by the
subdivision map act
the illegal act of directing potential buyers and tenants to a certain neighborhood is called
steering
if a real estate commissioner issues a preliminary publix report for a subdivision a developer is allowed to
reserve the lots
the power of eminent domain requires government agencies to
pay just compensation for the private property
prior to issuing a building permit involving a minor project with little if any environmental damage the local government may require a
negative impact report
The establishment of a community general plan requires three major steps
1 resource analysis
2 formulation of community goals
3 implementation of the plan
a condominium is sometimes called
a vertical subdivision
townhouse
is a type of architecture
disclosure requirements when a unit in an existing common interest development is offered
1. a copy of the cc&r
2. a written statement of any known pending special assessments or claims.
3. a current statemrnt showing whether the seller has any unpaid assesments or dues.
the buyer of a time share has 7 days to
rescind the purchase contract under the California business and professional code for ant reason snd receive a full refund.
state housing laws
establish minimum housing standards for the entire state.
are enforced by local building inspectors
contractors license law
contractor must be licensed
NIR negative impact report (minor)
EIR environmental impact report (major)
the purpose of both repots is to address what impact the real estate construction will have on the social, economic, physical and biological environment.
housing financial discrimination act (holden act)
state law that prohibits institutions from engaging in discriminatory loan practices.
redlining
a loan practice under which a lender refuses to grant a housing loan in certain geographic areas based on neighborhood trends, regardless of the merits of the borrower or of the individual home.
planned unit development
a person owns their living unit and lot. no one lives in the airspace above or below
stock cooperative
coporation formed for the purpose of holding title to a building
Community apartments
a group of people jointly purchase an undivided interest in an entire apartment complex
3 most powerful tools for implementation of the plan
1. zoning
2. subdivision
3. environmental regulations
uhruh civil rights act
can not discriminate when providing business products and services
steering
unlawful directing of a prospective buyer or tenant to certain neighborhoods or the refusal to tell about the availability of housing in another neighborhood
zone
an area defined on a map by a boundary line. within the land use regulations are the same.
rezoning
the process of changing labd use regulations from one zone to another
variance
a deviation from the zoning regulations for a particular parcel
conditional use permit
a requirement imposed by government in connection with the approval of a permit or a division of property
development plan
plans showing the details of thr proposed development. bormally includes plot plan, architectural rendering and statistical information relative to acreage, building area, units and parking
standard subdivision
a division of property into lots that does not include common areas
minor subdivision or lot split
a division of residential property into two, three or four parcels
major subdivision
a division of residential property into five or more parcels
appeal
the right to request review of a negative planning commission decision
the establishment of a community general plan requires 3 steps
1. reaource analysis
2. formulation of community goals
3. implementation of the plan
inclusionary zoning
is an ordinance that requires a vuilder of new residential housing to set aside a designated number of units for law and moderate income people
national environmental policy act
requires an environmental impact report all projects using federal funding
clean air act
reqyiree business to meet air quality standards
subdivision map act
covers the division of land into two or more lots for the purpose of sale, lease or financing whether now or in the future
planning commission
an appointed body of citi charges with the responsibility of advising the elected board of supervisors or city council memebers in matters of land use.
planning department
city or county staff employees whi lend professional and technical assistance to electes officials and citizens
public report
allows, the subdivider to take reservations for purchase pending the issuance of the first sale of each lot in a new subdivision
land project
the e purchaser of the lot is allowee to rescind or cancel the purchase contract and receive a full refund up to 14 days aftrt signing the purchase agreement
police power
constitutional right of government yo regulate private activity to promote the general health, welfare and safety of society.
like zoning, building & health codes, setback requirements, environmental regulations and rent controls
eminet domain
allows the government to acquire totle to rpivate land for public use in exchange fr the payment of just compensation
interstate land sales full disclosure act
regulates land sales between two or more states
common interest development
CID
are condominium, planned unit development, stock cooperatives and community apartments are examples of intensified owner occupied developments
condominium
a system of individual fee ownership of units in a multifamily structure combined with joint ownership of common areas of the structure and the land. also known as vertical subdivision
california fair housing act
rumford act
state law that forbids discrimination in the sale, rental, lease or financing of practically all types of housing
mobile home park
as any area or tract of land here one one or more mobile jome lots are rented or leased.
new mobile homes can not be sold by real estate licensees
only through mobile home dealers licensed by the department of housing and community development
a real estate licensee can sell used mobile homes
but they have to be already registered with the state and on a lot.
the mobile home must be capable of being transported
hitch must be attached to a unit.
axles must be attached to the frame
the licensee is responsible for the mobile home to
have completion and delivery of title to the buyer
mobile home notification of transfer of ownership must be made
within 10 days of the sale date
mobile home all fees must be paid to the state within
10 days of the sale date
mobile home owners must pay an
in lieu tax similar to regular property taxes paid by homeowners
if the mobile home was manufacturered after june 15, 1976
it must have a department of housing and urban development HUD tag, guaranteeing its proper construction
converting a mobile home to real property 4
1. must have a building permit
2. must be on a permanent foundation
3. must have a certificate of occupancy
4. a document stating that the mobil home os attached to a permanent foundation must be recorded
modular homes
are not considered vehicles.
they become real estate upon placement
risk
is the possibility that you wil lose all or part of your initial investment
liquidity
the ability to convert your investment to cash quickly
management
the cost and time involved in overseeing the investment
tax aspects
the income tax laws and their impact on the investment
appreciation
an increase in value when demand exceeds supply
the ownership of a mobile home is transferred by means of a
certificate of ownership
all fees relating to licensing or transferring of tiyle to mobile homes must be paid to
the department of housing and community development
all things being equal the least cost per square foot should be found in a
two story home
mobility
the ability to move to another location quickly
architectural styles
new england colonial
a box shaped two story house with a center entrance, wood siding and shutters
architectural styles
Georgian colonial
a brick two story house with a center entrance and a hip roof
architectural styles
southern colonial
a two story house with pillars and shutters
architectural styles
dutch colonial
a two story house with a gambrel roof
architectural styles
california bungalow
a small one story house with a low pitched roof
architectural styles
california ranch
a one story house with a low pitched roof and a sprawling floor plan
architectural styles
spanish
a house with a tile roof and arches
architectural styles
cape cod
a house with a second story above the eaves, a high pitched roof, wood siding, and a large chimney
architectural styles
french provincial
a formal house with a high pitched slate hip roof. a stone or brick exterior , and shutters
architectural styles
Victorian
a house with ornate gables
architectural styles
English Elizabeth
a house with a high pitched slate roof, rough half timbers and a plaster exterior.
architectural styles
monterey
a two story house with a balcony
architectural styles
french norman
a house with a tower as the main entrance and a steep roof.
architectural styles
English Tudors
a house with a high pitched slate roof, a cathedral like entrance, and a masonry exterior
architectural styles
Mediterranean or Italian
a house with a tile roof, a stucco exterior and rounded decorative work above the windows
architectural styles
contemporary
a house of modern design
hip roof
all sides slope to ease
gable roof
roof with shed dormer
pyamid roof
all sides slope from one point .
no ridge line
gambrel roof
found on barns and Dutch colonial homes
mansard roof
French style
once a mobile home is converted to real property, title to the mobile home is tranferred using
a deed
in terms of complication the most difficult tenant to evict is one located in a
mobile home park
ridge board
the highest point in a standard frame house
footing
base or bottom of a foundation
rafters
boards designed to support the roof loads
header or lintel is
a horizontal board over a door or window
the ultimate responsibility for thr management of an entire condominium building after all the individual units have been sold rests with the
owners association
second homes
are usually purchased to enjoy not as investments
for income tax purposes an owner of a second home who does not rent out the property is allowed
to deduct property taxes and loan interest
one advantage of owning versus renting a home is
income tax deductions
national association of realtors
is broken down to state associations. provide services to state members
the California association of realtors
CAR
1. unit
2. high standards
3. safeguard the land buying public
4. legislation for the benefit & protection of real estate
5. cooperate in the economic growth and development of the state
real estate commissioner is appointed by the
governor and serves as the chief executive of the CalBRE
restricted license
allows licensee to continue to work but under limited conditions
suspended license
a temporary loss of license
revoked license
a loss of license
an appraiser license is issued by
the office of real estate appraisers
business opportunity
the sale or lease of a buiness including stock, trade fixtues, trade name, and goodwill.
a real estate license agrnt is also allowed to sell
business opportunities
balance sheet
shows the financial position of the business as of a given date
assets
things of value owned by business
liabilities
unpaid debts and expenses of the business
net worth
owners equity the difference between the assets and liabilities
profit and loss statement
shows the profit and loss of the business during a specific time period
bulk sales rules apply when
a business is sold that involves inventory
a bulk transfer
the transfer of a major portion of inventory other thsn a sale to customers
the term REALTOR can only be used by
national association of REALTORS
after getting your real estate license you have 4 years to take 15hour CalBRE courses which are
1. ethics
2. agency
3. fair housing
4. trust fund handling
5. risk management
after the 1st renewal of a salespersons license every 4 years after that you must
take 45 hours of approved continuing education
the maximum fine for an unlicensed individual who receives an illegal commission is
$20k
under bulk sales rules the buyer must give public notice at lease
12 days before transfer takes place
goodwill
expectation of continued patronage
freehold estate
one's interest as an owner of real property. freehold estates can be subdivided into fee estates and life estates
under freehold estates is
1A. estates in fee. 1B. Life Estates
2A. free simple 2B. Estates in
absolute & fee remainder
simple qualified. reversion reserva
under less than freehold estate
(tenant)
estate for years
estate from period to period
estate at will
estate at sufferance
under joint tenancy what does unity of time, title, interest and posession mean?
1.unity of time- the owners got their interests at the same time
2.unity of title- must come into title on the same document. ( example A&B are joint tenants. B sells his interest to C. A&C are Tenants in common.)
3. unity of interest-all owners have equal interest.
4. unuty of possession- equal rights of possession. no owner can tell another owner not to use the property
a coporation is not allowed to hold totle as a joint tenant
because in theory a coporation never dies
real estate syndicates usually hold property as
limited partnership
freehold estate are sometimes called
inheritance