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107 Cards in this Set
- Front
- Back
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Climate |
Our basic climate is called Mediterranean, characterized by general sun and warmth with rain mainly in the winter. Average rainfall varies from 80 inches in Del Norte County (north coast) to as low as 3 inches in Imperial County (desert) |
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Coastal Climate |
characterized by mild temperatures with minor annual variations. Most of the state’s population lives along the coast. |
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Desert Climate |
characterized by high summer temperatures, extremely low humidity, and very little rainfall. |
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Valley Climate |
characterized by high temperatures and low humidity in the summer and low temperature and high humidity in the winter. Both the Sacramento and San Joaquin Valleys have this weather pattern. |
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Foothill Climate |
1,000 to 3,000 feet in elevation) is similar to the valley regions but with more rain and less fog. |
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Mountain Climate |
the only area that gets heavy snow in the winter. Winters are very cold and summers are bright and sunny. |
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Geography |
California is the third largest state in land area (158,693 square miles) with 1,264 miles of coastline and an average width of 175 miles. There are still three active volcanoes in California. In the Cascade Mountain Range are Mt. Lassen (elevation 10,457 feet) and Mt. Shasta (elevation 14,162 feet). Mt. Mammoth (elevation 11,000 feet) is located in the Sierra Nevada Mountain Range. |
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Megalopolis |
a large, densely populated metropolitan area consisting of a number of major urban areas and smaller surrounding cities |
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Capitalism |
an economic system in which most of the economy’s resources are privately owned and managed. |
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California’s Economy |
Currently, California has the 7thlargest economy in the world. California generates more than 13% of the United States Gross Domestic Product (GDP) and is the nation’s number one exporting state. California produces more than $1 trillion worth of goods and services each year |
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California’s economy |
The early California economy was based primarily on agriculture, mining, and drilling for oil and gas. Gold and silver mining brought wealth to Northern California. The “black gold” of our oil wells brought capital investment and unbridled growth to Southern California |
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California’s Economy |
Currently, California’s top industries include: tourism, manufacturing, construction, agriculture, oil and gas production, telecommunications, engineering services, aerospace, and entertainment (including motion pictures, TV, and recording). The state is geared for the future with continuing advances in microelectronics, biotechnology, and environmental technology. |
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Major Roles of Real Estate |
The major roles that real estate plays in our economy are creating net worth, increasing income flow, creating new jobs, and helping control appreciation and inflation. |
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Net Worth |
the value of all assets minus all liabilities |
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Appreciation |
the increase in market value of real estate. |
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Inflation |
measured as an increase in the general price level of goods and services, or as a decrease in purchasing power of the dollar |
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Housing Market |
shaped mainly by the inventory of available housing, by housing affordability, and by mortgage interest rates |
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Affordability Index |
The affordability index shows how many households will be able to afford a median-priced home in California. |
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Abstract of Title
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A summary or digest of all recorded transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title to show continuity of ownership and indicate any possible impairments to title.
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Acceleration Clause
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A provision in a real estate financing instrument that allows the lender to declare the remaining indebtedness due and payable on the occurrence of certain conditions, such as the sale of the property or the borrowers default in payment.
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Acceptance
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Indication by the person to whom an offer is made (the offered) of agreement the the terms of the offer. If the offer requires writing acceptance also must be in writing.
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Accession
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The process of manufacture or natural improvement or addiction to property
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Accommodation party
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Third party who has control of funds in delayed exchange
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Accretion
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Accession by natural forces, such as alluvion
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Acknowledgement
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A formal declaration made before an authorized person by a person who has executed a written instrument, stating that the execution of the instrument is the persons own act.
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Acquisition cost
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For the FHA-insured loans, the price to procure property, including purchase price and al non recurring closing cost, including discount points, FHA application fee, service charge and credit report, FHA appraisal, escrow, documents preparation, title insurance, termite inspection, reconveyance, and recording fees.
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Acre
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A measure of land equaling 160 square rods, 4,840 square yards or 43,560 square feet or a tract about 208.71 feet square.
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Action of declaratory relief.
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Legal proceeding brought to determine the respective rights of the parties before a controversy arises
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Action to quite title
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A court proceeding brought to establish title to real property
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Actual Age
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The number of years since completion of a building; also called historical or chronological age
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Actual Authority
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The authority agents have because it is specified in the agency agreement or that the agents believes they have because of an unintentional or careless act of principal.
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Administration/administratrix
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Personal representative of the estate of a decedent appointed by the probate court.
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Ad valorem
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A latín phrase meaning :according to value" used to describe tax charged in relation to the value of the property taxed
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Adverse possession
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A method of acquiring title to real property by occupying the property against the interest of the true owner and fulfilling other statutory requirements
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After-acquired title
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If title is acquired by a grantor only after a conveyance to a grantee, the deed to the grantee becomes effective at the time the grantor actually receives title.
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Agency
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The relationship is between a principle and the agent of the principal that arises out of a contract, whether express or implied, written or oral, by which the agent is employed by the principle to do certain acts dealing with a third party.
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Agent
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One who acts for and with authority from another person, called the principle; special agent is appointed to carry out a particular act or transaction and any other agent is a general agent.
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Air Rights
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The real property right to the reasonable use of the airspace above the surface of the land
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Alienation
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The transferring of property to another
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All-inclusive trust deed |
SEE WRAPAROUND MORTGAGE OR TRUSTDEED
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Alluvion
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Alluvion; the increase of soil along the bank of a body of water by natural forces
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Americans with Disabilities Acts
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Federal law prohibiting discrimination that would deny the equal enjoyment of goods, services, facilities, and accommodations in any existing place of public accommodation, based on an individual physical or mental disabilities.
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Amortization
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The payment of a financial obligation in installments; recovery over a period of time cost or value. An amortized loan includes both principle and interest in approximately equal payments, usually due monthly, resulting in complete payment of the amount borrowed, with the interest, by the end of the loan term. A loan has negative amortization when the loan payments don't cover all the interest due, which then is added to the remaining loan balance.
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Annual Percentage Rate (APR)
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The relative cost of credit as determined in accordance with regulation Z of the board of Governors of Federal Reserve System for implementing the federal Truth in Lending Act.
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Anticipation, Principle of
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Expectation that property will offer future benefits, which tends to increase present value
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Apparent Authority
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Authority to act as an agent that someone appears to have but does not actually have, which will place no obligation on the party the agent claims to represent if that party is in no way responsible for the representation
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Appraisal
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An estimate of a property's monetary value on the open market; an estimate of a property's type and condition, its utility for a given purpose, or its highest and best use.
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Appropriation, right off
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SEE RIGHT OF APPROPRIATION
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Appurtenance
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Anything affixed (attached) to or used with land for its benefit and that is transferred with the land
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APR
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SEE ANNUAL PERCENTAGE RATE
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Arms-length transaction
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A transaction in which neither party acts under duress ad both have full knowledge of the property's assets and defects, the property involved has been on the market a reasonable length of time, there are no unusual circumstances, and the price represents the normal consideration for the property sold without extraordinary financing
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Assessed valuation
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A valuation placed on a piece of property by a public authority as a basis for levying taxes on that property
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Assessor
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The official responsible for determining assessed values
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Assumption
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An undertaking or adoption of a debt or an obligation resting primarily on another person
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Attachment
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The process by which the real or personal property of a party to a lawsuit is seized an retained in the custody of the court; intended to compel an appearance before the court or to furnish security for a debt or costs arising out of the litigation
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Attorney-in-fact
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An agent who has been granted a power of attorney by a principle
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Avulsion
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The tearing or washing away of land along the bank of body of water by natural Forces
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Balance principle of
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The combination of land uses that results in the highest property values overall
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Ballon payment
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An installment payment on a promissory note usually the final payment that is significantly larger that te other installment payments
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Bankruptcy
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A federal court proceeding in which the court takes possession of the assets of an insolvent debtor and sells the non exempt assets to pay off creditors on a pro rata basis; title to the debtors assets is held by a trustee in bankruptcy
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Base lines
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Imaginary lines that run east-west and intersect meridians that run north-south to form the starting point for land measurement using the rectangular survey system of land description
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Basis
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Cost basis is the dollar amount assigned to property at the time of acquisition under provisions of the internal revenue code for the purpose of determining gain, loss, and deprecation in calculating the income tax to be paid on the sale or exchange of the property; adjusted cost basis is derived after the application of certain additions such as improvements, and dedications, such as for deprecation
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Beneficiary
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One on whose behalf a trustee holds property conveyed by a trustor; the lender under a deed of trust.
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Bequest
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Transfer of property, particularly personal property called a legacy by will. SEE ALSO DEVISE
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Bill of Sale
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Written instrument that conveys title ro personal property
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Blanket Mortgage
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A Loan covering more than one property
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Blind Ad
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An ad that fails to indicate that the advertiser is an agent
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Blockbusting
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The practice on the of unscrupulous speculators or real estate agents of inducing panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial makeup is changing or appears to be on the verge if changing
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Bond
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An obligation; a real estate bond is a written obligation issued on security of a mortgage or trust deed
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Book Value
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The current value for accounting purposes of an asset expressed as original plus capital addition minus accumulated deprecation
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Breach
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The failure of a duty imposed by law or by contract, either by omission or commission
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Building Code
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Standards for building, planning, and construction established by state law and local ordinance
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Bundle of Rights
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The legal rights of ownership of real property, including the rights of possession, use, disposition, exclusion of others from the property
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Bureau Of Real Estate
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California agency that administers the real estate law, including the licensing of real estate brokers and sales people; headed by he real estate commissioner, who is appointed by the governor and presides over the real estate Advisory Commission (whose 10 members are appointed by and serve at the commissioners discretion)
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Business Opportunity
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The assets of an existing business enterprise, including its goodwill
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Buyers Market
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Real Estate marketplace that has more Sellers than buyers
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CalVet loan
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Home or farm loan procured through the California Veterans Farm and Home Purchase Program
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Capital Assets
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Asset of a permanent nature used in the production of income such as land, buildings, machinery, and equipment; usually distinguishable under income tax from "inventor" assets held for sale to customers in the ordinary course of the taxpayers trade or business
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Capital Gain
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The amount by which the net resale proceeds of a capital item exceed he adjusted cost basis of the item
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Capitalization Rate
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The rate of interest that is considered a reasonable return on the investment, used in the process of determining value based on net operating income; the yield necessary to attract investment
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Capitalization Recapture
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The return of an investment;; an amortization rate based on the right of the investor to get back the purchase price at the end of. The term of ownership or over the productive life of the improvements; computed by the straight-line deprecation, by using the inwood table or hoskold tables (refer to real estate appraisal text.)
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Cash flow
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The net income generated by a property before depreciation and other non cash expense
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CC&Rs
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Covenants, conditions, and restrictions; limitations on land use imposed by deed, usually when land is subdivided, as means of regulating building construction, density and use for the benefit of other property owners; may be referred to simply restrictions
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Certificate Redemption
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Issued by the county tax collector when all past due amounts have been paid
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Certificate of Sale
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Document received by the buyer at an execution or a judicial foreclosure sale; replaced by a sheriffs deed if the debtor fails to redeem the property during the statutory redemption period
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Certificate of Title
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Statement of property's owner of record as well as any existing encumbrances
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Chain of title
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The history of the conveyances and encumbrances affecting the present owners title to property as far back as records are available
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Change,principle of.
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Effect on property value of constantly varying physical, economic, social,, and political forces
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Chattel real
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An estate related to real estate, such as a lease of real property
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Chattels
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Personal property; any property that is not real property
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Civil Rights Act of 1866
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The first U.S civil rights act. It applied to race only and had no exceptions
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Civil Rights Act of 1968
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The comprehensive act is known as the fair housing act
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Closing
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The completion of a real estate transaction, at which point required documents are transmitted and funds transferred
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Closing Disclosure
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New Form mandated by the TILA-RESPA rule that helps consumers to understand all the costs of the transaction. It must be provided to consumers three business days before closing
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Cloud on the Title
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Any claim, condition, or encumbrance that impairs title to real property
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Coastal Zone
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An area of about 1800 square miles that runs the length of the state from the sea inland about 1000 yards, with wider spots in the coastal estuarine, habitat, and recreational areas; any developed or improvement of land within the costal sone must meet local local requirements for coastal conversation and preservation of resources, as authorized by the coastal zone conservation act
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Codicil
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Written Amendment to a will, made with same legal formalities
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Color of title
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A claim of possession to a real property based o a document erroneously appearing to convey title claimant
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Commingling
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Mixing broker and principle funds
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Commision
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An agents compensation for performing the duties of the agency in real estate practice, typically a percentage of selling price of property, rentals, or other property value
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Common Law
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The body of law from England based on custom, usage, court decisions
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Community Apartment Project
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A form of subdivision in which the owner has an individual interest in the land and exclusive right of occupancy of an apartment on the land
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Community Property
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All property acquired by husband and wife during marriage except that qualifying as separate property
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Community redeveloped agency (CRA)
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An agency authorized by state law formed by a local governing body to provide low-and-moderate-income housing and employ low-income persons by rehabilitating existing structures and/or bringing new development
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Competition principle of
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Business profits encourage competition which ultimately may reduce profits for any one business
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Comparative market analysis
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Informal estimate of market value performed by a real estate agent for either seller or buyer, utilizing the sales history of nearby properties; usually expressed as a range of values that includes the probable market value of the subject property
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Compound interest
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Interest paid on original principle and also on the accrued and unpaid interest that has accumulated as the debt matures
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