California Real Estate Principles(13Th Ed.) Ch. 6

Front 1

Purchase Agreement or Purchase Offer

Back 1

An offer to purchase real property.

Front 2

Deposit Receipt

Back 2

Another name for a Purchase Agreement because it acts as the receipt for earnest money given by the buyer to secure an offer.

Front 3

Offer

Back 3

A paragraph in the purchase agreement showing the name of the buyer, describing the property to be purchased, the offered purchase price, and the closing date for the escrow.

Front 4

Finance Terms

Back 4

Section of the purchase agreement addressing whether the purchase will be an all cash offer or an offer based on obtaining financing.

Front 5

Allocation of Costs

Back 5

Section of purchase agreement where buyer/seller choose escrow type and title provider as well as allocate payment responsibility for inspections, reports, and tests.

Front 6

Closing and Possession

Back 6

Section of the purchase agreement covering the intent of the buyer to occupy the property as a primary residence, the date the seller will turn over possession to buyer, and if the buyer can take possession prior to close of escrow.

Front 7

Interim Occupancy Agreement

Back 7

An agreement used to protect the rights and obligations of buyer and seller if the buyer wants early possession of the property.

Front 8

Statutory Disclosures

Back 8

Disclosures a seller is required by law to give a buyer about the property and surrounding area.

Front 9

Prorations

Back 9

Clause in purchase agreement telling escrow the buyers and sellers wishes regarding the allocation of property tax, interest, assessments, and any other charge normally prorated in escrow.

Front 10

Liquidated Damages

Back 10

Section of the purchase agreement where the parties may decide in advance the amount of damages to be paid, should either party breach the contract.

Front 11

Dispute Resolution

Back 11

Clause in purchase agreement that offers mediation and arbitration should a dispute between buyer and seller arise. Both parties must agree to be bound by mutual arbitration in order for the clause to be effective.

Front 12

Option

Back 12

A written unilateral contract to keep open, for a set period of time, an offer to purchase or lease real property.

Front 13

Lease

Back 13

A contract between a property owner, and a renter which gives the tenant tenancy.

Front 14

Tenancy

Back 14

The interest of a person holding property by any right or title.

Front 15

Lessor

Back 15

Person who owns the property and signs the lease to give possession and use a tenant.

Front 16

Reversionary Right

Back 16

The right of the landlord to reclaim the property.

Front 17

Leased Fee Estate

Back 17

The lessor's interest in a leased property.

Front 18

Less Than Freehold Estate

Back 18

A lessee's interest in the property they are leasing.

Front 19

A rental is presumed to be

Back 19

Month to month unless specified otherwise.

Front 20

Ground Lease

Back 20

A lease for only the land.

Front 21

Proprietary Lease

Back 21

A lease used in co-op apartment buildings.

Front 22

Residential Lease

Back 22

A lease used for all residential property including single family homes, duplexes, and multiple-family dwellings.

Front 23

Gross Lease

Back 23

A lease where the tenant pays an agreed upon sum as rent and the landlord pays any other expenses such as taxes, maintenence, or insurance.

Front 24

Net Lease

Back 24

A lease in which the tenant pays a agreed upon sum as rent, plus certain agreed upon expenses per month.

Front 25

Percentage Lease

Back 25

A lease in which the tenant pays a percentage of gross monthly receipts in addition to a base rent. Typically used for retail stores and shopping centers.

Front 26

2 months rent

Back 26

The maximum amount of deposite allowed on an unfurnished property.

Front 27

Implied Warranty of Habitability

Back 27

An implied warranty from landlord to tenant that the property will be maintained to meet bare living requirements.

Front 28

Sublease

Back 28

Transfers possession of a leased property to a new person.

Front 29

Sandwich lease

Back 29

A lease in which a tenant subleases to a sublessee, making the original tenant the sublessor.

Front 30

Construction Eviction

Back 30

An implied eviction in which the landlord's act or omission justifies the immediate departure of the tenant.

Front 31

Surrender

Back 31

When a tenant gives up any rights of possession and gives the property back to the landlord.

Front 32

Unlawful Detainer Action

Back 32

A lawsuit to remove an unlawful holdover tenant(after the expiration of a 3 day or 30 day notice) and return the rental unit to its owner.

Front 33

Writ of Possession

Back 33

The legal document issued by the court commanding the tenant to leave the premises within five days.