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360 Cards in this Set

  • Front
  • Back
PROPERTY
Rights or interests in the thing owned
REAL PROPERTY
Immovable
Bearing Wall
Not Leasehold Estates
FIXTURES
Incorporated into the land
Not Cost
Not time of attachment
TRADE FIXTURES
Business Office
RUN WITH THE LAND
Appurtenant
Easements, Water Co Stock, Covenants and Minerals
No Separate Conveyance
PERSONAL PROPERTY
Hypothecated Alienated, Become Real Property
FEE SIMPLE ESTATES
FEE ESTATE
ESTATE IN FEE
Indefinite Duration
Freehold
Most Interest
Not Free of Encumbrances
Inheritance
FEE SIMPLE DEFEASIBLE
No Alcohol
LIFE ESTATE, PROPERTY LEASED
Owner Dies, Lease Terminates
LESS-THAN-FREEHOLD ESTATES (LEASES)
Lessee's
Not Necessary to Sign
6 Months = Estate for Years
Personal Property, Chattel Real
SUBLEASE
Transfers Possession
Can Sublease or Assign if not Mentioned
QUIET ENJOYMENT
Paramount
ABANDONMENT
Tenant Leaves Voluntarily
PERCENTAGE
Based on Gross Receipts
SECURITY DEPOSIT
Furnished or Not
ESTATE FOR YEARS
Fixed Period
LICENSE
Personal, Revocable
TITLE VESTING
Tenancy = Method
SEVERALTY
Individual (Only One)
JOINT TENANCY
T time
T title
I interest
P possession

Cannot Will
Free of Unsecured Debts
TENANCY IN COMMON
Can Convey Separately
Unity of Possession
COMMUNITY PROPERTY
Husband and Wife
AGREEMENT TO SELL
Unenforceable
CLOUD ON TITLE
Single Woman Married
QUIET TITLE ACTION
Remove a Cloud
ALIENATION
Convey
Opposite of Acquisition
EMINENT DOMAIN
For Public Use, Taken by the Government
Individuals do not have
Owner must be paid JUST compensation
POLICE POWER
Zoning
ESCHEAT
Individual cannot use
ACCRETION
Natural Causes
AVULSION
Dam Breaks
PROBATE SALE
Comission set by court
INTESTATE SUCCESSION
No Will
DEEDS
Purpose
Transfer Interest
GRANT DEED
Executed when signed
Not necessary to be recorded
QUITCLAIM DEED
Conveys rights of Grantor
No covenants
DEED ESSENTIALS
Granting clause
Legal competence of Grantor
Not acknowledged
Delivered and accepted
CONSTRUCTIVE NOTICE
Given by recording
First to record or possess gets the property
ACKNOWLEDGMENT
Employee without interest
ENCUMBRANCES
Limits Title
EASEMENTS
Encumbered
PRESCRIPTIVE EASEMENTS
No confrontation with owner
Can easily be terminated for non-use
TERMINATION OF EASEMENTS
Dominant tenement records quitclaim deed
APPURTENANT EASEMENTS
Buyer has same rights
CONFIRMED BY
Quiet title suit
PRIVATE RESTRICTIONS
15,000 square feet
Grantor or developer
PRIVATE RESTRICTIONS-

CONDITION
Penalties are more severe
PUBLIC RESTRICTIONS
Public health, safety, moral and general welfare
One lot = varience
PUBLIC RESTRICTIONS-

CHANGES CAN BE INITIATED BY
Owner, subdivider, government
PUBLIC RESTRICTIONS -

COMMERCIAL TO RESIDENTIAL
Down Zoning
PUBLIC RESTRICTIONS -

MULTI-FAMILY ZONE
R-3
ENCROACHMENTS
Sue neighbor for trespass
LIENS
A charge imposed
Trust deed or mortgage
SPECIFIC LIEN
Trust Deed
GENERAL LIEN
All Property
PROMISSORY NOTES
Evidence of debt
AMORTIZATION
Liquidation
LEVEL PAYMENT
Payment applied to principal increases
NEGATIVE AMORTIZATION
Payments do not cover interest
GPAM LOAN
Defers some principal payments
INTERESTS RATES AFFECTED BY
Not unemployed
SIMPLE INTEREST
Home loans
VARIABLE INTEREST
Rate can increase or decrease
EFFECTIVE INTEREST RATE
Rate paid
NOMINAL INTEREST RATE
Rate specified in note
NEGOTIABLE INSTRUMENT
Not a mortgage
STRAIGHT NOTE
No principal payments are made (interest only)
BALLOON LOAN
Partially amortized
Entire balance due
HOLDER IN DUE COURSE
No knowledge of defects
DISCOUNTING
Selling for less (carrying second on a loan)
DEFAULT
Foreclosure for $15,000 (full amount)
MORE THAN ONE BORROWER
Jointly and severally
TRUSTOR (BORROWER)
Signs the trust deed
BENEFICIARY
Loans money
Consent for consolidation
and new restrictions
RIGHT TO SELL
Trustor to trustee
TERMINATED
Reconveyance deed
COURT SALE
One year redemption period
Trustor possesses the property
TRUSTEE'S SALE
3 Months before publishing
Right of reinstatement
Most expedient
DEED IN LIEU OF FORECLOSURE
Lender assumes junior loans
REQUEST FOR NOTICE PROTECTS
Beneficiary of second loan
LENDER'S BASIC PROTECTION
Borrower's equity
PRIORITY
Recorded first
RELEASES CLAUSE
Releases portions of the property
"ASSUME"
Relieves seller
"SUBJECT TO"
Sellers liable; buyer not liable
SUBORDINATION CLAUSE
Future loans have priority
ACCELERATION CLAUSE
Unpaid sum due
OPEN-END
Borrow additional money
BENEFICIARY STATEMENT
Gives current balance
PREPAYMENT PENALTY
Trustor making advance payments
MECHANICS LIENS
Verified and recorded
MECHANICS LIENS-

PRIORITY
Beginning of construction
Earlier than recording
Could impair trust deed
MECHANIC LIENS -

NOTICES
Completion, cessation, non-responsibility
LIS PENDENS
May affect title
LIS PENDENS IS EFFECTIVE UNTIL
Judgment rendered or lawsuit dismissed
EXECUTION
Court order to sell
INJUNCTION
Court order to stop
CHAIN OF TITLE
Important when deciding to issue title insurance
ABSTRACT OF TITLE
Written summary of documents
PRELIMINARY REPORT
Seller is trustor
Remove mechanics lien
STANDARD POLICY OF TITLE INSURANCE
Most buyer obtain
No survey or on-site inspection
STANDARD TITLE INSURANCE -

PROTECTS AGAINST
Forgery
Improper delivery
TITLE INSURANCE -

EXTENDED POLICY
Covers improvements on adjoining land
ALTA POLICY
Includes a survey
TITLE INSURANCE -

EXCLUSIONS
Zoning
No policy covers everything
TITLE INSURANCE -

SEARCH
County clerk, county recorder or federal land office
MISREPRESENTATION
Obvious, knowledge, caused no expenses on income property
COMMISSION TO BUYER
Must inform seller
REAL ESTATE LAW
Commissioner promulgates rules and regulations
ILLEGAL ACTS
DA prosecutes
BLIND AD
No broker's name
MISLEADING ADVERTISING
Misleading map
"Move right in" - when it needs major repairs
SECRET PROFIT BY NON-LICENSEE
No cause for action
REFERRAL FEES
Both broker and salesperson
GIFTS
Microwaves are OK - Reveal to all
$50 is OK
COMMINGLING
Funds from broker's own property
NOT A MEMBER N.A.R.
Not a REALTOR
SALESPERSON AS INDEPENDENT CONTRACTOR
Broker is still liable for conduct
UNLICENSED ASSISTANT
Broker must read advertising
Must be supervised on internet
Both guilty if solicits buyer or sellers
MANAGE PROPERTY
Broker
LOAN BROKER LAWS
Disclosure given to borrow when signed
LOAN BROKER LAWS -

ADVERTISEMENT
Not 1-800-for-a-loan
DESK COST
Total expenses divided by the number of salespersons
COMPANY DOLLAR
Income minus only commissions
TRUST FUND ACCOUNT
Separate trust funds
Any employee
ETHICAL PRACTICES
Honesty and fairness
RECOVERY ACCOUNT
Only pay recovery account plus interest
SELLING TRUST DEEDS
Advertising must include interest rate and discount
MOBILE HOMES -

CAN SELL
Only if registered
MOBILE HOMES -

MUST REMOVE SIGNS
Within 48 hours
MOBILE HOMES -

NOTICE OF TRANSFER
Within 10 calendar days
REAL ESTATE LICENSE -

EXPIRED LICENSE
Can be renewed within 2 years after expiration
REAL ESTATE LICENSE -

TEMPORARY (150 DAY) LICENSE
Delinquent child support
ADVANCE FEE CONTRACT
No guarantee of sale or lease
FAIR HOUSING - ALL THE ABOVE
1968
Provide fair housing
Steering
Unenforceable - no effect
Refuse to show when out of town
Blockbusting, panic pedding - not duress
No discrimination - rejected offeror
No discrimination against singles
Department of fair employment and housing
Different prices - money damages
Show same homes
No gender or ethnic quotas
Can refuse to answer
ECONOMIC THEORY
Lost interest on equity is a lost of ownership
LEVERAGE
$300,000
Borrow the maximum
ECONOMIC THEORY -

APPRECIATION
Trustor
PRICES DECREASE
Value of money increases
SELLER'S MARKET
Prices rise
IMPACT REAL ESTATE
Consumerism, land use controls
GNP AND EMPLOYMENT RISE
Income rises, home sales increase
LENDERS
Portfolio risk management - concerned with all individual savings
answer "D"
FINANCIAL DEREGULATION
Pay any rate of interest
INSURANCE COMPANIES
Large loans
Work through mortgage companies
SAVINGS AND LOAN ASSOCIATIONS
Most funds in real estate
Primary source
MORTGAGE COMPANIES
Sell in secondary market
PRIVATE LENDERS
Junior loans
SECONDARY MORTGAGE MARKET
Resale market place
FEDERAL HOME LOAN MORTGAGE CORPORATION
Maintains secondary market
FEDERAL RESERVE SYSTEM -

INCREASES RESERVES
Decreases loan activity
TIGHT MONEY
More second trust deeds
Sellers carry back second
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Not a demand source for money
LOAN TO VALUE
Lower ratio, higher equity
A LOAN COMMITMENT
Result of income, borrower, and property
CONSTRUCTION LOAN
Interim
TAKE OUT LOAN
Long term
DEBT INCOME RATIO
Loan qualifying tool
MORTGAGE LOAN
Collateralized by real property
MORTGAGE YIELD
Investor's interest return
LENDERS MINIMIZE
Substandard loans
Degree of most important risk
LATE PAYMENT
MORE than 10 days
100% LOAN
Protected by appreciation
AMORTIZATION TABLES
Monthly payments
WAREHOUSING
Collecting loans
FICO SCORE
Credit history of borrower
SECURITY INTEREST
Creditor's interest in debtor's property
DISCOUNT POINTS
Percentage of loan amount
DOCUMENT REPARATION CHARGES
Loan orgination fee
TRUTH IN LENDING
Not agricultural
TRUTH IN LENDING -

PURPOSE
Meaningful disclosure by lender
ANNUAL PERCENTAGE RATE
Cost of credit
ADVERTISING - ONLY APR IS USED
Other disclosures not required
RIGHT TO CANCEL
Residence
CONDITIONAL INSTALLMENT SALES CONTRACTS
Legal title - vendor
Security device
Transfers equitable title
DEFAULT, QUITCLAIM DEED
Signed by buyer (vendee)
LOAN INSURED BY
FHA or private insurer
FHA
Protects lender against default
VA
No down payment
Cannot be rental property
CAL-VET
Land contract
Department of veterans affairs
INSURANCE
Promise of reimbursement for damages
FIRE INSURANCE
Neither gain nor loss
ESCROW
Financial code
ESCROW -

INSTRUCTIONS EXECUTED BY
Buyer, seller, third parties
ESCROW -

PURPOSE
Terms are met
ESCROW CLOSING STATEMENT -

BUYER DEBT
CREDIT SELLER
Purchase

Pre paid taxes
ESCROW -

PRORATIONS
Not unsecured loan
ESCROW -

IMPOUNDS
Recurring costs
TWO TERMITE REPORTS
Get instructions from buyer and seller
ESCROW CAN
Call for funding of loan
REPORT TO IRS
Escrow
MOVE IN EARLY
Seller's written permission
RELEASE DISPUTED FUNDS
Instructions from all parties of court order
1 TO 4 FAMILY RESIDENTIAL DWELLINGS
Required
UNIFORM SETTLEMENT STATEMENT
No charge
BUYER CAN REQUIRE
Specific lender
GOOD FAITH ESTIMATE
Must be furnished
TDS -

GIVEN BY
Transferor, even if sold "as is"
TDS -

MUST REVEAL
All known defects
Not repairs
TDS -

AMENDED STATEMENT
Buyer can rescind
TDS -

LICENSEE CAN NEVER
Fill out the seller's portion
TDS -

DEFECTIVE STATEMENT
Buyer can sue within 2 years
ALQUIST-PRIOLO ACT -

REQUIRES DISCLOSURE
Near by earthquake fault lines
ALQUIST-PRIOLO ACT -

ZONE EXTENDS
1/4 mile wide along fault lines
CONTRACTS -

BILATERAL
Diligence
CONTRACTS -

EXECUTED
Completely performed
CONTRACTS -

VOIDABLE
Binding until rescinded
Duress
Menace or threats
Not illegal purpose
LEGAL ESSENTIALS OF A VALID CONTRACT
Not money, performance, nor writing
VALID CONTRACT -

OFFER AND ACCEPTANCE
Must have for real estate contracts
VALID CONTRACT -


CAPABLE PARTIES
Minors can acquire
VALID CONTRACT -

CONSIDERATION
Valuable, good, sufficient, adequate
STATUTE OF FRAUDS
If not to be performed within one year, must be in writing
BREACH OF CONTRACT -

SPECIFIC PERFORMANCE
Not by broker
LISTINGS
Bilateral employment contract
AGENCY CREATION
Reveal as soon as possible
For any period of time
Employment contract
Find purchaser, accept deposit
Payment of consideration is not required
Not voluntary offer
Terminated by completion
LISTINGS -

ORAL AGREEMENTS
Commission permissible (but not required)
Broker would sue broker
LISTINGS -

LEASE ON DUPLEX
Broker is agent
LISTINGS -

SUBAGENT OF LISTINGS BROKER
Duty to seller only
FIDUCIARY OBLIGATIONS
Licensee
Integrity, loyalty, honesty, confidentiality
PRESENT ALL WRITTEN OFFERS
At the same time
Unless frivolous or express instructions
SELLER FIRES BROKER
Liable for damages
BROKER OWES BUYER
Fair and honest deal
BROKER AS AGENT OF BUYER (OFFEROR)
Can present offers to seller amd seller's agent
Accepting unauthorized deposits
Owes fiduciary duty to buyer only
FIDUCIARY OBLIGATIONS -

MATERIAL FACTS
Must reveal
Leaky roof
Septic tank - Rescind
PUFFING
Exaggerated features or benefits
BROKER PROMISES SELLER TO FIND HOUSE
Civil suit for damages
AGENT PROMISES TO ADVERTISE AND DOES NOT
Actual fraud
PROTECT CONFIDENTIAL INFORMATION
After listing expires
DEPOSITS
May be anything
DEPOSITS -

SELLER
Deposit belongs to seller
HOLD DEPOSIT CHECK OR ACCEPT PROMISSORY NOTE
Must inform seller
CONFLICT BETWEEN BUYER AND SELLER
Interpleader
COMMISSIONS
Communicate acceptance
If not shared - civil suit
Cancels owes both
COMMISSION AFTER TERM OF LISTING
Protection period clause (safety clause)
LIABILITY
Damages if acts in excess
FRAUDULENT MISREPRESENTATION
Discipline, civil, criminal
EXCLUSIVE LISTING
Must contain specific termination date
EXCLUSIVE AGENCY
Owner sells, No commission
EXCLUSIVE RIGHT TO SELL
Pay commission
No procuring cause
Between seller and broker
OFFERS -

TERMINATED BY
Withdrawal, gets refund
Death of buyer
Rejection by offeree
For any reason
COUNTEROFFER
Offeree becomes offror
DEPOSIT RECEIPTS -

BUYER DEFAULTS, DEPOSIT IS
Divided between seller and agent
DEPOSIT RECEIPTS -

TIME IS OF THE ESSENCE
Deposit receipts
OPTIONS -

AGREEMENTS
Not to revoke an offer
OPTIONS -

CONTRACT
To keep an offer open
OPTIONS -

OPTIONEE
Not bound to perform
OPTIONS -

OPTION AND LISTING
Disclose offers, written consent
MARGINAL TAX RATE
Next dollar earned
UNADJUSTED BASIS
Cost
ADJUSTED BASIS
Not mortgage payments
TAX SHELTERS
Income taxes
GAIN
$40,000 sale, $8,000 basis = $32,000 gain (profit)
PERSONAL RESIDENCES -

DEDUCTIONS
Property taxes and interest, $3,672
Interest on common area mortgage
PERSONAL RESIDENCES -

ADJUSTED BASIS
Concrete patio
INCOME PROPERTY -

DEDUCTIONS
Not for vacancy
INCOME PROPERTY -

DEPRECIATION
Cost of building, not land
Must be improved
INCOME PROPERTY -

OPERATIONAL LOSS
Might offset capital gain
INCOME PROPERTY -

CAPITAL EXPENDITURES
Added to cost of basis and depreciated
INCOME PROPERTY -

LOSS UPON SALE
Could deduct if rental property
EXCHANGES
Like kind
BOOT
Debt relief or cash
BOOT

RECEIVER
May have recognized gain
BASIS OF NEW PROPERTY
Basis of old
SALE LEASEBACK
Deduct 100% of future rent back
Not seller's book value
INSTALLMENT SALE
Mortgage relief is down payment
PROPERTY TAXES
Not intangible personal property
TAX BILLS
No legal description
AD VALOREM
According to value
PROPERTY REASSESSED
When sold
OVER ASSESSED
Assessment appeals board
DATES
February 1, April 10
DELINQUENT TAX SALES
Owner remains in possession and can redeem for 5 years
ASSESSMENT LIENS
For local improvements
Cannot purchase land
MELLO-ROOS
Seller must disclose
TRANSFER TAX
$22
$138
SUBDIVISION MAP ACT
City or county governing body
MASTER PLAN
Districts, streets, seismic
PLANNING COMMISSION
Zoning
CONDOMINIUMS
5 or more units
CONDO -

SIDEWALKS
Common area
CONDO -

TYPE OF PROPERTY
Residential, industrial, commercial
CONDO -

ESTATE IN REAL PROPERTY
Condo and apartment
CONDO -

SELLER PROVIDES BUYER
By laws and CC&R's
LAND PROJECT
14 days
REAL ESTATE COMMISSIONER
Desist and refrain
PUBLIC REPORT -

GIVEN
Anyone, anytime
PUBLIC REPORT -

RECEIPTS
Keep 3 years
PUBLIC REPORT -

EXCESSIVE PRICE
Not included
BUILDING CODE
Higher standard
BUILDING CODE -

PURPOSE
Minimum standards
BUILDING PERMIT
Local building department
DEVELOPER
Streets, etc
TIME SHARE GIFTS
Must reveal required attendance
FRANCHISE
Marketing plan
ADVANCE FEE FOR ADVERTISING
Deposit in trust account and use for advertising
BILL OF SALE
Not real property
APPRAISER
Disclose interest
Date contract was signed
The date given
Building of no value - deduct demolition
Unacceptable methods - Felony
Marketability and acceptability
Not assessed value
Strip mall - Certified general license
APPRAISER -

NARRATIVE REPORT
Not buyers financial condition
APPRAISER -

TYPE OF VALUE
Statement of purpose
FEE APPRAISER
Self employed
APPRAISAL
Analysis of facts
STABILITY OF VALUE
Conformity
MARKET VALUE
Present worth, ability of one commodity
No cost
D demand
U utility
S scarcity
T transferability
PRINCIPLE OF CONTRIBUTION
Swimming pool
Effect on net income
HIGHEST AND BEST USE
First step for vacant land
Net return
Site analysis
If temporary, interim use
PRINCIPLE OF SUBSTITUTION
No prudent person
Use, design, income
Lowest price preferred
PRINCIPLE OF REGRESSION
Nearby substandard property
UNEARNED INCREMENT
Population
PLOTTAGE
Common ownership of 2 or more units
HIGHEST VALUE
Maximum resources
APPRECIATION
Increase in value over time
MARKET DATA (COMPARISON) APPROACH
Entire property
Substitution
Subtract features for comparable
Vacant lot
Rent schedules
Real estate licensees
DIFFICULTY OF MARKET DATA
Adjusting for differences
Rarely similar concerning everything
LEAST RELIABLE
Rapid economic change or inactive market
WAREHOUSE
Square foot
COST (REPLACEMENT) APPROACH
Special purpose properties
UPPER LIMITS OF VALUE
Set by replacement cost approach
UPPER LIMITS OF VALUE -

REPLACEMENT
Same utility
NEW PROPERTY
New, not old
COST OF CONSTRUCTION
Quantity survey, unit-in-place, square foot
1910 HOUSE
Current cost of reproduction
CAPITALIZATION APPROACH
Converts income into value
EFFECTIVE GROSS INCOME
Deduct for vacancy
NET INCOME
Do not deduct interest
PRESENT WORTH
Of future benefits
CAPITALIZATION RATE
Most difficult part
Summation, comparison, band of investments
Post office - lower rate
CAPITALIZATION (INCOME) APPROACH
Restaurant
GROSS MULTIPLIERS
Price divided by rent
$89,700
$308,736
DEPRECIATION
Loss in value from any cause
EFFECTIVE AGE
15 years - 6 years old
ECONOMIC LIFE
Sufficient income
OBSOLESCENCE
Not wear and tear

Cause not method
FUNCTIONAL OBSOLESCENCE
Not nearby nuisances
One car garage
FUNCTIONAL OBSOLESCENCE -


SAME BUILDING COSTS, DIFFERENT VALUES
Functional obsolescence
ECONOMIC OBSOLESCENCE
Economic changes
Extraneous
Difficult to cure
Not heating system
Airplanes
Oversupply, zoning changes
Expensive house among cheaper ones
Abandoned gas station - toxic waste report
Are tenants prospering?
BEARING WALL
Remodeling, stronger, any angle
JOIST
Parallel beam that supports ceiling or floor
RIDGE BOARD
Highest
FOOTING
Spreading at foundation base
STRUCTURAL PEST CONTROL REPORT
Anyone from structural pest control board must give to buyer as soon as possible
NO INFESTATION OR DAMAGE
Buyer pays
BEST TIME TO GET A REPORT
Before marketing
DECIDUOUS
Not type of soil
ROOF SLOPING ON FOUR SIDES
Hip
HIGHER EER
Unit is more efficient
SHEET METAL
Flashing
INSULATION
Interior, adequate
R-VALUE INSULATION
Resistance to heat
TURN KEY PROJECT
Ready for occupancy
ELEVATION SHEET
Exterior views of building
INFORMATION BOOTH
Kiosk
BACKFILL
Excavation
CRACKED FOUNDATION
Soil report
PLOT PLAN
Placement of improvements
FOUNDATION PLAN
Footings, piers, sub flooring
SUBSTANDARD BUILDING
Not wiring
REPAIRS TO BUILDING'S EQUIPMENT
Corrective maintenance
COMMERCIAL ACRE
Gross area less streets, curb, sidewalks etc...
ORIENTATIONing
Position on site
HVAC
Heating ventilation and air conditioning