Chapter 1 - Introduction To Real Estate

Front 1

COMMISSION

Back 1

AMOUNT PAID, USUALLY AS A PERCENTAGE OF THE SELLING PRICE, TO A BROKER FOR SERVICES.

THE MAXIMUM THAT CAN BE CHARGED IN A RESIDENTIAL 1-4 UNIT PROPERTY IS NEGOTIABLE BETWEEN THE PRINCIPAL AND BROKER.

Front 2

BRE

Back 2

CALIFORNIA BUREAU OF REAL ESTATE

Front 3

HIGH COST OF REAL ESTATE / GREAT RECESSION AND FINANCIAL CRISIS

Back 3

SLOWED DOWN CONSTRUCTION OF HOUSES, APARTMENTS AND CONDOS.

Front 4

CALIFORNIA IS KNOWN FOR:

Back 4

- DESIGN, INNOVATION & TECHNOLOGY

- PUBLIC INVESTMENTS

- ENERGY EFFICIENCY, APPLYING TECHNOLOGY TO HEALTH CARE, INTERNET, TELECOMMUNICATIONS

- MARKET OPPORTUNITIES FOR EXPORTS OF GOODS AND SERVICES

Front 5

PRESIDIOS

Back 5

FORTIFIED TRADING POSTS IN SAN DIEGO, SAN FRANCISCO AND MONTEREY BY THE SPANIARDS IN 1769.

Front 6

PUEBLOS

Back 6

FIRST CITIES WERE LOS ANGELES AND SAN JOSE

Front 7

FEBRUARY 2, 1848

Back 7

UNITED STATES WAR WITH MEXICO ENDS. TREATY OF GUADALUPE HIDALGO.

USA BUYS 500,000 SQUARE MILES OF LAND FROM MEXICO INCLUDING PRESENT NEVADA, UTAH, NEW MEXICO, ARIZONA AND CALIFORNIA.

Front 8

GOLD RUSH

Back 8

JOHN SUTTER'S DISCOVERY OF GOLD NEAR SACRAMENTO.

NEW BUSINESSES: ORCHARDS, VINEYARDS, CATTLE RANCHES.

Front 9

SEPTEMBER 9, 1850

Back 9

CALIFORNIA ACHIEVED FULL STATEHOOD

Front 10

1917

Back 10

CALIFORNIA PASSED THE FIRST REAL ESTATE LICENSING LAW IN THE NATION.

Front 11

REAL ESTATE ACT OF 1919

Back 11

UPHELD BY THE STATE SUPREME COURT. LICENSING LAWS ARE A REASONABLE EXERCISE BY THE STATE TO REGULATE THE CONDUCT OF ITS CITIZENS IN THE INTEREST OF THE PUBLIC GOOD.

Front 12

OWNERSHIP IS A BUNDLE OF RIGHTS

"THINK OF A LARGE BUNDLE OF STICKS"

Back 12

1. POSSESSION - RIGHT TO OCCUPY, RENT OR KEEP OTHERS OUT

2. ENJOYMENT - RIGHT TO PEACE & QUIET WITHOUT INTERFERENCE FROM PAST OWNERS

3. CONTROL - RIGHT TO PHYSICALLY CHANGE OR KEEP THE PROPERTY THE WAY YOU LIKE IT

4. DISPOSITION - RIGHT TO TRANSFER ALL OR PART OF YOUR PROPERTY TO OTHERS

Front 13

PROPERTY

Back 13

RIGHTS & INTEREST THAT A PERSON HAS IN THE THING OWNED OR BUNDLE OF RIGHTS

Front 14

REAL PROPERTY

RIGHT OR INTEREST THAT A PERSON HAS IN THE LAND OR ANYTHING ATTACHED TO THE LAND

Back 14

1. LAND

2. ANYTHING PERMANENTLY ATTACHED OR AFFIXED TO THE LAND

3. ANYTHING INCIDENTAL OR APPURTENANT TO THE LAND

4. IMMOVABLE BY LAW

Front 15

REAL PROPERTY -

LAND OWNERSHIP

Back 15

COMMONLY THOUGHT OF AS OWNING THE SURFACE OF THE EARTH OR THE GROUND WE WALK AND BUILD ON.

GIVES US RIGHTS TO THE SPACE ABOVE OUR LAND & EXTENDS BELOW OUR FEET TO THE CENTER OF THE EARTH.

Front 16

LAND OWNERSHIP -

AIRSPACE RIGHT

Back 16

RIGHT TO THE USE OF THE AIRSPACE ABOVE THE SURFACE OF THE EARTH.

IT IS REAL PROPERTY!

IE. CONDO. OWNS ONLY THE AREA WITHIN THE FINISHED WALLS & FRACTIONAL SHARE OF THE COMMON AREA.

Front 17

LAND OWNERSHIP -

MINERAL RIGHTS

Back 17

UNMINED MINERALS (SOLIDS): GOLD, SILVER, BORAX THAT ARE PART OF THE REAL PROPERTY, BUT CAN BE REMOVED.

EXCEPTIONS: OIL & OTHER MINERALS CAN BE CLAIMED BY THE OWNER AS PERSONAL PROPERTY WHEN REMOVED FROM THE GROUND.

BY LAW, FUGITIVE SUBSTANCES - MOVING

OWNER CAN SELL MINERAL RIGHTS BELOW 500 FEET OR ABOVE 500 FEET (RIGHT OF SURFACE ENTRY)

Front 18

LAND OWNERSHIP -

RIPARIAN RIGHT

"RIVERS"

Back 18

RIGHT OF A LANDOWNER TO THE REASONABLE USE OF MOVING, FREE FLOWING WATER ON, & ADJACENT TO HIS LAND (LIKE A RIVER OR STREAM WITHIN THE WATERSHED), PROVIDED THAT ITS USE DOES NOT INFRINGE ON THE RIGHTS OF ANY NEIGHBORING LANDOWNERS.

Front 19

LAND OWNERSHIP -

LITTORIAL RIGHT

"LAKES"

Back 19

RIGHT OF A LANDOWNER TO THE REASONABLE USAGE OF NONFLOWING BODY OF WATER (WITH A SHORELINE) ABUTTING HIS LAND

Front 20

LAND OWNERSHIP -

APPROPRIATION OF WATER

"DOCTRINE OF APPROPRIATION"

Back 20

PRIVATE TAKING AND USE OF WATER FLOWING ON THE PUBLIC DOMAIN FROM ITS NATURAL COURSE

Front 21

LAND OWNERSHIP -

PERCOLATING WATER

Back 21

UNDERGROUND WATER NOT FOUND IN A DEFINED CHANNEL (NATURAL WATER). SPRING ORIGINATES UNDERGROUND & SEEPS UP THROUGH SOIL IS AN EXAMPLE.

LANDOWNER HAS THE RIGHT IN COMMON TO OTHERS TO TAKE HIS SHARE FOR BENEFICIAL USE.

Front 22

LAND OF OWNERSHIP -

ALLOCATION "TAKING"

Back 22

TAKING BY THE STATE NOT CITY OR COUNTY OF SURPLUS UNDERGROUND WATER FOR BENEFICIAL USE OF NON-OWNERS IS APPROPRIATION.

Front 23

LAND OWNERSHIP -

POTABLE WATER

Back 23

WATER THAT IS SUITABLE FOR HUMAN CONSUMPTION

Front 24

LAND OWNERSHIP -

SURFACE WATER RIGHTS

Back 24

PROHIBIT THE DIVERSION OF RUNOFF FROM RAIN UNLESS CONFINED TO A CHANNEL (RIVER OR STREAM) TO THE PROPERTY OF ANOTHER.

AN OWNER CAN USE REASONABLE MEANS TO PROTECT AGAINST FLOODWATER, BUT NOT AT THE EXPENSE OF HIS NEIGHBOR.

Front 25

REAL PROPERTY -

ATTACHED TO THE LAND (IMPROVEMENTS)

Back 25

ANYTHING ATTACHED TO THE LAND (BUILDINGS, FENCES, WALLS, WALKS & SHRUBS).

REAL PROPERTY WHEN IT IS INTEGRATED OR ATTACHED TO THE LAND.

Front 26

REAL PROPERTY -

INCIDENTAL OR APPURTENANT TO THE LAND

Back 26

OWNERSHIP TRANSFERS WITH THE LAND AUTOMATICALLY WITHOUT THE NEED OF A SEPARATE CONVEYANCE RUNS WITH THE LAND.

IE. MUTUAL WATER COMPANIES ARE ORGANIZED BY WATER USERS IN A GIVEN DISTRICT TO SUPPLY AMPLE WATER AT A REASONABLE RATE.

Front 27

EASEMENTS

Back 27

ALLOWS THE USE OF SOMEONE ELSE'S LAND, SUCH AS A DRIVEWAY TO ENTER YOUR LAND, ALSO GO WITH THE LAND BEING SOLD IF IT IS THE ONLY WATER TO ACCESS THE LAND.

Front 28

APPURTENANT

Back 28

OWNERSHIP TRANSFERS WITH THE LAND AUTOMATICALLY WITHOUT THE NEED OF A SEPARATE CONVEYANCE (RUNS WITH THE LAND).

CERTAIN THINGS THAT ARE PART OF THE LAND MUST BE SOLD WITH THE LAND OR ELSE THE USEFULNESS OF THE LAND IS REDUCED.

Front 29

IMMOVABLE BY LAW

Back 29

UNDER CALIFORNIA LAW, ESTABLISHED CROPS & TREES ARE A PART OF THE LAND. THE ONLY EXCEPTION IS WHEN A CONTRACT OF SALE FOR THESE ITEMS IS MADE BEFORE THE LAND IS SOLD.

NATURAL GROWTH (VEGETATION BY ROOTS) IS REAL PROPERTY.

Front 30

PERSONAL PROPERTY (MOVABLE PROPERTY)

Back 30

- MOVABLE PROPERTY AND CANNOT BE PROPERLY CLASSIFIED UNDER THE DEFINITION OF REAL PROPERTY.

- IE. CLOTHES, FURNITURE, CARS

Front 31

EMBLEMENTS

Back 31

PLANTED GROWING CROPS THAT ARE CULTIVATED ANNUALLY BY A TENANT FARMER OR LEASED LAND.

Front 32

BILL OF SALE

Back 32

OWNERSHIP OF PERSTONAL PROPERTY / WHEN BUYING PERSONAL PROPERTY. STATES THAT THE GOODS HAVE BEEN PAID FOR & THAT NO OUTSTANDING LOANS EXIST ON THE PERSONAL PROPERTY.

Front 33

SECURITY AGREEMENT

Back 33

USED TO SECURE A LOAN ON PERSONAL PROPERTY

Front 34

FIXTURES

Back 34

ITEMS OF PERSONAL PROPERTY THAT ARE ATTACHED TO OR INCORPORATED INTO THE LAND IN SUCH A MANNER AS TO BECOME REAL PROPERTY.

THERE ARE FIVE TESTS TO DETERMINE FIXTURES = MARIA

Front 35

FIXTURES -

METHOD OF ATTACHMENT

Back 35

IF AN ITEM CAN BE REMOVED BY SIMPLY BEING UNPLUGGED, IT IS PERSONAL PROPERTY.

IF IT IS ATTACHED BY CEMENT, PLASTER, SCREWS, NAILS IT IS REAL PROPERTY.

Front 36

FIXTURES -

ADAPTABILITY

Back 36

REFERS TO PERSONAL PROPERTY IN CONNECTION WITH THE LAND. IF PROPERTY IS WELL ADAPTED FOR THE LAND OR BUILDING, IT IS PROBABLY A FIXTURE.

Front 37

FIXTURES -

RELATIONSHIPS OF THE PARTIES

Back 37

IF A FIXTURE IS NOT MENTIONED IN A CONTRACT & IS AFFIXED TO THE PROPERTY, MOST COURTS WILL GIVE THE SELLER THE BENEFIT OF THE DOUBT.

A REFRIGERATOR PLUGGED IN IS PERSONAL PROPERTY & WOULD REMAIN WITH THE SELLER.

ALWAYS SECURE A BILL OF SALE FOR ANY QUESTIONABLE ITEMS.

Front 38

FIXTURES -

INTENTIONS

Back 38

IF YOU PLAN TO REMOVE AN ITEM OF PERSONAL PROPERTY, YOU MAY NOT PERMANENTLY ATTACH IT TO THE LAND.

Front 39

FIXTURES -

AGREEMENT

Back 39

MAKE SURE TO LIST IN WRITING OF ANY PERSONAL PROPERTY THAT YOU WANT TO REMAIN AS PERSONAL PROPERTY.

Front 40

REAL PROPERTY -

TRADE FIXTURES

Back 40

PERSONAL PROPERTY, IE SHELVING & REFRIGERATORS.

A TENANT MAY REMOVE ANY TRADE FIXTURES HE OR SHE INSTALLED PROVIDED THE REAL PROPERTY IS LEFT IN THE SAME CONDITION.

Front 41

METHODS OF LAND DESCRIPTION

Back 41

IN CALIFORNIA, EVERY PARCEL OR LAND MUST BE PROPERTY DESCRIBED OR IDENTIFIED.

THREE METHODS.

Front 42

METHODS OF LAND DESCRIPTION -

METES & BOUNDS

Back 42

"SURVEYOR'S MAPS"

- MONUMENT: FIXED OBJECT & POINT SET IN THE EARTH BY SURVEYOR'S TO ESTABLISH LAND LOCATIONS

Front 43

METHODS OF LAND DESCRIPTION -

SECTIONS & TOWNSHIPS

Back 43

"US GOVERNMENT SURVEY" - IDENTIFY ALL PUBLIC LANDS BY THE USE OF BASE LINES & MERIDIAN LINES.

1. HUMBOLDT BASE LINE - NORTHERN CA

2. MT. DIABLO BASE LINE - CENTRAL CA

3. SAN BERNADINO BASE LINE - SO CAL

Front 44

BASE LINE

Back 44

- HORIZONTAL LINE THAT RUNS EAST & EAST

- EACH BASE LINE IS 6 MILE INCREMENTS CALLED A RANGE

- EACH RANGE IS 6 MILES IN LENGTH

Front 45

MERIDIAN LINE

Back 45

- VERTICAL LINES THAT RUNS NORTH & SOUTH

- EVERY SIX MILE INCREMENT IS CALLED A TOWNSHIP OR TIER

Front 46

TIER LINES

Back 46

- EAST & WEST LINES RUNNING PARALLEL TO BASE LINE

Front 47

RANGE LINES

Back 47

- NORTH & SOUTH LINE RUNNING PARALLEL TO THE PRINCIPAL MERIDIAN

Front 48

TIERS

Back 48

TOWNSHIP LINES DIVIDE THE LAND INTO SERIES OF EAST-WEST STRIPS

Front 49

RANGES

Back 49

RANGE LINES DIVIDE THE LAND INTO NORTH-SOUTH STRIPS

Front 50

TOWNSHIP

Back 50

- WHERE A TIER INTERSECTS WITH A RANGE, THE RESULT IS A SIX MILE BY SIX MILE SQUARE OF LAND

- MAIN DIVISIONS OF LAND

- EACH TOWNSHIP IS IDENTIFIED BY DISTANCE FROM MERIDIAN & BASE LINE

- DIVIDED INTO 36 SECTIONS (1 SQUARE MILE = 640 ACRES)

Front 51

LOTS, BLOCKS & TRACTS

Back 51

- "RECORDED SUBDIVISIONS"

- APPROVED BY CITY OR COUNTY

Front 52

ACRE

Back 52

43,560 SQUARE FEET OR 4,840 SQUARE YARDS

Front 53

AREA

Back 53

DEFINITE AMOUNT OF SPACE WITHIN A SHAPE

Front 54

1 SQUARE ACRE

Back 54

208.71 FEET ON THE SIDE OR 209

Front 55

1 MILE

Back 55

5,280 FEET LONG

Front 56

1 SQUARE MILE

Back 56

640 ACRES

Front 57

1 SECTION

Back 57

- ONE MILE SQUARE

- CONTAINING 640 ACRES

Front 58

1 TOWNSHIP

Back 58

- STANDARD SIX MILES SQUARE

- 36 SQUARE MILES

Front 59

1 COMMERCIAL ACRE

Back 59

- ACRE MINUS ANY REQUIRED PUBLIC DEDICATIONS

Front 60

1 ROD

Back 60

- 16.5 FEET LONG

- 5.5 YARDS

- THERE ARE 4 RODS, OR 66 FEET, TO ONE CHAIN AND 320 RODS TO A MILE

Front 61

RSS

Back 61

REALLY SIMPLY SYNDICATION

Front 62

CHATTEL OR CHATTEL REAL

Back 62

LAW; AN ARTICLE OF MOVABLE PERSONAL PROPERTY (FURNITURE, DOMESTIC ANIMALS

CHATTEL REAL - INTEREST IN LAND LESS THAN A FREEHOLD (LEASE)