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154 Cards in this Set
- Front
- Back
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Property |
The rights or interests that a person has in the thing owned |
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RSS |
Really Simple Syndication |
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Potable water |
Water suitable for drinking |
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Personal Property is transferred by |
Bill of Sale |
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A loan Secured by personal property |
Consists of a Security Agreement |
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How many principal intersections of base lines and meridian lines in California? |
3 |
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A township contains |
36 square miles 6mi. x 6mi. square of land |
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A Commercial Acre |
An acre less the amount of land dedicated for public improvements (sidewalks, alleys, etc.) |
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Estate |
Ownership in land |
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Freehold Estate |
Fee Simple Estate Life Estate Greatest degree of ownership you can have under the law |
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Fee Simple (Fee Estate) (freehold estate) |
Means an owner has transferred all rights of a property to a new owner for an indefinite duration of time. Greatest interest one can hold it is of "indefinite duration" "freely transferable" and "inheritable" |
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Fee Simple Defeasable Estate |
A fee estate that is subject to particular limitations imposed by the grantor of the estate |
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CCR's |
Covenants Conditions and Restrictions |
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Life Estate (freehold estate) |
Ownership interest in real property that only exists for the life of any designated person or persons. Can be created by a will or deed.When the designated person dies, the estate reverts back to the original owner. |
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Estate in Reversion |
When the person who holds the life estate and leases to someone else, if the designated person dies, the estate ends and all the rights including tenant rights revert back to the original owner/grantor |
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Less than Freehold Estate |
Leasehold estate and is considered personal property. Personal rights to the use of real property for a period of time |
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Seven year lease |
An Estate for years Personal property Chattel Real |
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Tenancy at Sufferance |
A tenant remains in the property after expiration of a lease without the owner's consent |
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An owner of property adjacent to the water flow can acquire title to additional land by ? |
Accession |
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Dick and Jane own property. Dick takes out a loan on the property. He unexpectedly dies. What happens to Jane? |
Jane owns property free and clear and is not responsible for Dicks loan |
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If on a transfer of title the words "a married woman" is implied. What is needed? |
A signature from both husband and wife |
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If a real estate agent advises a buyer how to take title they may be liable for? |
Practicing law Giving tax advice Discrimination |
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If a sale is made with two different buyers, who would the owner most likely to be the owner? |
The person who records the deed first |
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When a project of home improvements have been completed and the owner has not filed a "notice of completion" how many days do claimants have to file mechanic's liens |
90 days |
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Difference between property taxes and special assessments are |
Special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund |
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LIS PENDENS (Law suit) |
May effect title to the property, based upon the results of the lawsuit |
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Injunction |
A court order restricting a person to do or not to do something |
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What terminates an easement |
The owner of the dominant tenement records a quitclaim deed |
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An ecumbrance |
A burden to a property that limits its use by either money owed or items that affect the physical use of the property |
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Blanket encumbrance |
A voluntary lien placed over more than one property, and usually has a release clause for one or more of the parcels |
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Trust Deeds Mortgages |
Security Devices that make property security for debt and are considered personal property. |
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Promissory Note |
Evidence of debt |
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Lien |
Document that uses a property to secure payment of a debt or the discharge of an obligation. Either voluntary or involuntary |
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Mechanics lien |
When people who supply labor or materials for construction are not paid they may file a mechanics lien against that individual property. A specific and involuntary lien |
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Before filing a mechanics lien, preliminary notice must be filed |
Within 20 days of supplying labor or services |
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Notice of Completion |
Should be recorded by the owner within 10 days of completion |
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Notice of Cessation |
Must be recorded within 30 days of cessation of labor |
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Judgement |
General and involuntary lien. Against all real property by owner. |
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Specific liens |
Property Tax liens Mechanics liens Liens against just one property |
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General Liens |
Judgements Income tax Liens Covering all properties of the owner Involuntary |
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Attachment Lien |
Good for 3 years Specific Lien Involuntary lien To assure payment of a pending lawsuit |
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Items that affect physical use of a property Easements Restrictions Encroachments Leases |
Non-money encumbrances |
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Easement |
The right to enter, use and exit another person's land for certain purpose |
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Easement appurtunent |
If an easement runs with the land |
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Dominant Tenement |
Land that benefits from the easement |
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Servient Tenement |
Land that is burdened from an easement |
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Easement in Gross |
When others benefit who do not own adjoining attached lands (ex: Gas co. telephone company) |
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Easements are created by |
Deed (writing) Implication of law (implied or easement by necessity) Prescription (long time use) |
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Easements can be terminated by |
Express release Merger Excessive Use Abandonment and non-use Destruction of servient tenement |
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Restrictions |
Can be private deed restrictions or Public restrictions. |
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Covenants, Conditions, and Restrictions (CCR's) |
Private building restrictions |
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Public restrictions |
Made by government agencies and are meant to promote health, safety, morals, and general welfare of the public (police power) |
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Zoning |
Public restriction dictating how property can be used, including setback requirements. |
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Encroachment |
Wrongful, unauthorized placement of improvements or permanent fixtures on a property by a non-owner, which must be removed by the owner within three years |
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Homestead |
A special provision of California to help protect homeowners homes from forced sale to satisfy their debts. |
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Homestead may be terminated by |
Declaration of abandonment The sale of the homesteaded property |
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Broker as agent of the seller, owes the buyer |
Honesty and fair dealing |
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Best way to establish agency relationship is through |
Written agreement |
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A salesperson's listings are the property of |
The broker who employs his/her |
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How much of a broker's personal funds can be kept in his/her trust account without being guilty of commingling? |
$200 |
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Puffing |
To exaggerate for purposes of selling a property May be considered misrepresentation if a reasonable person considers it to a "statement of fact" |
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If a broker in a large real estate office dies, the listings? |
Are automatically cancelled and the new broker would need to re-list the properties |
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Express contract |
A contract in words, either oral or written |
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If a buyer/seller enter into a binding contract and one of the parties dies or becomes incompetent, the contract is |
Valid if it was signed before the party died or became incompetent |
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A contract based on unlawful consideration is |
Void |
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Novation |
Substitution of a new contract for an old one |
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Buyer can use this as an earnest money deposit in purchasing real property |
Promissory Note secured by a deed of trust Postdated check Unsecured promissory note |
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Any Mello-Roos assessments included with property should be communicated to the buyer by who? |
The Seller |
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Structural Pest Control |
What agency would you contact to obtain a report disclosing the presence of wood destroying organisms? |
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In an option agreement the owner of the agreement is the |
Optionee |
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Estate at will can be ended by |
Lessor or Lessee |
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Interim occupancy agreement |
When buyer will take possession of property before transferring title |
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Rents |
Usually prorated in escrow |
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Max deposit that can be collected and held for an unfurnished apartment is |
2 months |
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3 months |
Max deposit that can be collected and deposited for a furnished apartment is |
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If a tenant signs a lease where no mention to subleasing or assignments, the tenant may |
Assign or sublease the home since the lease did not address those items |
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A benefit of a net lease |
Lessor receives net income |
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A strip commercial development |
Single line of retail stores located along a major transportation corridor in a commercially zoned area would be known as |
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(CPI) Consumer price Index |
Used when a commercial lease contains an escalator clause to adjust the rental amount periodically (usually) for inflation |
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Escrow act is found in |
Financial Code |
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Interpleader Action |
A court action |
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An escrow officer may disburse funds to a buyer and seller who are in disagreement when |
A binding arbritrator settles the matter If the parties to the escrow agree As a result of a judgement between buyer and seller |
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Prorated in escrow |
Rents Impounds Property taxes |
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A short rate |
A partial premium refund on fire insurance |
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Abstract of title |
Holds every recorded change of ownership or claim of ownership on a property |
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Most often used title policy |
CLTA -standard coverage |
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RESPA |
Forbids a loan officer to give a broker a small referral fee for referring a client looking to buy |
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Under RESPA, a Lender cannot charge for |
Uniform settlements statements (HUD-1) |
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RESPA requires that the Uniform Settlement Statement be delivered or mailed to the borrower no later than |
At or before the date of settlement |
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Amortization tables |
Used to calculate monthly payment |
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The 1% loan fee on FHA loans is paid by |
Seller |
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Trustor to Trustee |
In a Deed of Trust, the power of sale in event of foreclosure is given from the |
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Recording a Trust Deed |
Conveys bare legal title (but not possession) to a third party (trustee) as security for a loan Differs from other deeds in that the legal title only is thus conveyed A security device in the nature of a lien and differs in one respect from other deeds in that the trust deed and the promissory note for which it was given may be assigned |
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A notice of default is recorded to protect |
The beneficiary on the second loan/trust deed |
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If a lender accepts a deed in lieu of foreclosure |
The beneficiary may assume any junior loans/liens on the property |
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A Vendee (buyer) under a land contract should |
Record the land contract for his/her protection |
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Annual Percentage Rate
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The cost of credit, including interest and other financing costs, expressed as an annual rate |
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How many days does a buyer have to rescind from transaction |
3 days from delivery of notice signing of the transaction delivery of the truth in lending disclosure |
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Inflation |
Market value increases, sales price increases |
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When general level of practice decreases |
Money value increases |
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"Loose" money market |
Fed buys back bonds and lowers reserve requirements of banks |
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Four phases of business cycle |
Recession, depression, expansion, prosperity |
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Federal Savings Banks |
For financing the purchase of residential properties, the principal lender of money is |
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Individual Savings |
Institutions that specialize in making home loans most commonly get their funds from |
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Synonymous |
Construction loan/interim loan |
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FHA loan available but not CAL-VET loan? |
Purchase of property to be rented to a tenant |
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Importance of Liquidity and Marketability |
Activities of the secondary mortgage markets |
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Comparing real property price to value, a change in "creative financing" will affect |
Price |
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Primary purpose of a site analysis is to determine |
Highest and best use |
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when highest and best use is expected to change, the current use is |
The interim use |
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Plottage |
When two properties are joined together to make one property, and becomes more valuable than individually |
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Orientation |
A map showing a house in its location relating to other plants, buildings and streets is an example of |
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One board foot measures |
Six in. x 12 in. x 2 inches |
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A higher Energy efficient rate (EER) |
Unit is more efficient |
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HVAC |
Heating, Ventilation, Air conditioning systems in commercial buildings |
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Regression |
When a house of greater value is adversely affected by houses of comparably lesser value |
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Using Market Data approach the appraiser would be most interested in the date |
The buyer and seller agreed on a price |
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The ultimate test of Functional Utility is |
Marketability |
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In calculating an older home with updated improvements the appraiser would use |
Effective age of the improvements |
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Example of Functional Obsolescence |
One car garage |
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Example of Economic Obsolescence |
Airport flight pattern changed causing affected homes to decrease in value |
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In using the replacement cost approach to appraise a building built in 1901 the appraiser would |
Use the current cost to build the building today and deduct the depreciation over the economic life of the building |
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Capitalization rate is determined by |
Summation Band of Investment theory Market Data |
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Narrative report |
Most thorough appraisal containing the words "Introduction", "Site and Improvement," "Property Description", "Supporting Data", and "Final Value Estimate" |
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Exercise of police powers |
Zoning, Planning, Governmental land Use |
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Desist and refrain order |
To stop the sale of lots on a subdivision |
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C,C,R's, Copy of Bylaws, Copy of most recent financial statement of the condo association |
Must be given to every buyer of a condo |
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If a timeshare company fails to advertise that a requirement to listen to a sales presentation in order to receive the promised prize, this is |
Illegal |
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Negative Declaration |
A statement by an expert affirming that a new subdivision will have no significant negative impact on the environment |
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Primary tool used by planning and commissions to implement a general plan |
Zoning |
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A change of zoning from industrial to residential |
Downzoning |
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Registered manufactured home |
A broker can sell a |
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Inverse condemnation |
When a person's property is reduced in value due to a airplane's flight path crossing over, the homeowner can force the government to purchase his/her property by |
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Establish the tax base for the county |
County assessor accumulates a list of all private owners of real property in his or her jurisdiction to |
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State Franchise Tax board |
Any issues regarding property taxes people should contact |
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Differences between Property taxes and special assessments are |
Special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund |
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Street Improvement act of 1911 |
Constructing sewers Improving Streets Constructing streets |
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If a sub-divider wanted to subdivide his property and sell individual lots to potential builders. To finance the off-site improvements that include, streets, sidewalks, and schools he would |
Institute a Mello-Roos municipal bond |
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Under Federal Income Tax Laws, most real estate licensees are |
Independent contractors |
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Land cannot be depreciated |
Under Federal Income tax's law |
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1031 Exchange |
Exchange apartment building for one more valuable, exchange loans, and pay balance in cash |
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Real Estate Commissioner (Appointed by Governor) |
Chief executive of the Department of Real Estate Will start an action against a licensee with an accusation |
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Department of Real Estate (DRE) |
Regulatory agency for Real Estate in California |
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Police Power |
Right to enact and enforce laws beneficial to the health, safety, morals, and general welfare of the public |
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Real Estate Commissioner |
Does not give legal advice Does not settle commission disputes (for real estate services) Commission disputes are settled by arbritration or civil lawsuits in local courts |
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Real Estate Commissioner can |
Call formal hearings Discuss any issues regarding a potential licensee current license holder or subdivider Revoke Suspend or deny a license Can halt sales in subdivision |
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20K |
Max amount Real Estate Commissioner can levy against a broker who pays an unlicensed person for soliciting or negotiating loans is |
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To use a fictitious business name, broker must
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Publish the fictitious name in a newspaper of general circulation Obtain approval of the name by the Real Estate Commissioner and be issued a license in the name of the fictitious business name File a fictitious business name statement in the county where he or she intends to operate |
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What courses are included in the 45 hours of continuing education |
Agency and Ethics Trust Fund Handling and Fair Housing 18 hours of Consumer Protection |
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Late child support payments |
Reason for Department of Real Estate to obtain live-scan fingerprints and performs a background check on a potential licensee, they are looking for |
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If a real estate agent owes for back child support payments, he may |
Obtain a temporary license for 150 days |
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Business and Professions Code |
Who do you consult if you want to obtain information about the ethical or unethical conduct of a real estate licensee |
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250K (50K) per occurrence |
Max recovery from the Recovery Fund |
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Misuse of the name REALTOR is |
A violation of the California Real Estate Law |
