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141 Cards in this Set
- Front
- Back
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abandonment
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The termination of an easement when the easement holder’s actions demonstrate a clear intent to permanently abandon all future use of the easement.
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acre
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A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.
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advance fees
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A fee paid in advance of any services rendered. Sometimes unlawfully charged in connection with that illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms.
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advertising
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Communication of marketing materials by licensees, such as property fliers, classified ads or first-contact brochures.
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amenities
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Hedonistic benefits derived from a property whose existence increase the property's value or desirability. Amenities are both tangible, such as property fixtures, or intangible, such as proximity to schools or desirable businesses.
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Americans with Disabilities Act (ADA)
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Federal regulations prohibiting an employer from discriminating against a qualified person based on a disability.
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anti-trust
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State and federal regulations that are designed to promote fair competition in the marketplace.
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arbitration
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A form of dispute resolution voluntarily agreed to in contracts authorizing a third-party arbitrator to issue a binding award which cannot be reviewed and corrected by a court of law.
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assessment
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The valuation of property for the purpose of levying a tax. Also, payments made to a common interest subdivision homeowners' association for maintenance and reserves.
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automatic homestead
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The dollar amount of equity in a homeowner’s principal dwelling the homeowner is automatically qualified to exempt from creditor seizure. Also known as a statutory homestead exemption.
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backfill
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Evacuated material used to fill in trenches around a property, such as against its foundation.
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bearing wall
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A wall or partition which supports a part of a building, usually a roof or floor above.
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beneficiary statement
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A document issued by a mortgage holder on request noting future payment schedules, interest rates and balances on a mortgage assumed by an equity purchase (EP) investor.
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blockbusting
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The prohibited practice of a real estate licensee inducing a property owner to list their property for sale in response to a change taking place in the neighborhood demographics.
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breach
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The failure to perform when required on an agreement, or failure of a duty owed another, either by omission or an act.
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bulk sale
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The transfer of more than one-half the inventory of a business' materials or goods to a person other than the business' customers.
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business opportunity
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The assets for a business enterprise including its goodwill. The term includes the sale or lease of the business and goodwill of an existing business enterprise or opportunity.
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buy-to-let investment
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Long-term income property investment.
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caveat emptor
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A Latin expression meaning, "Let the buyer beware."
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certificate of clearance
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A document certifying a property has been cleared of all infestations and all repairs necessary to prevent infestations have been completed.
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certificate of sale
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A certificate issued to the successful bidder on the completion of a judicial sale of a property.
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chattels
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Goods and every variety of personal property, movable or immovable, which are not real property. Personal property.
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closing
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The process by which all the parties to a real estate transaction perform their obligations in the sale or mortgage of the property, including the execution of documents and distributions of funds.
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common area
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An entire common interest subdivision except the separate interests therein.
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common area maintenance charge
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Property operating expenses incurred by a commercial landlord and paid by the tenant as rent in additonal to the base rent, adjustments and percentages.
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comparative market analysis (CMA)
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A worksheet used by an agent to prepare an estimate of a property's value for review with a property owner for the purpose of a listing presentation. The analysis represents the value of property for sale based on prices recently paid for similar properties.
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conservation easement
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A voluntary conveyance of the right to keep land in its natural or historical condition to a conservation organization or government agency.
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constructive notice (landlord/tenant)
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A legal fiction charging persons who own or acquire an interest in real estate with knowledge of recorded documents affecting title and conditions observable on the property.
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deferred maintenance
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Existing but unfulfilled requirements for maintenance, repairs and replacements. Postponed or delayed maintenance causing decline in a building's physical condition.
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delinquency
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A tenant or borrower's failure to pay the agreed amounts on or before the due date or expiration of anygrace period.
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depreciation
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Loss of property value brought about by age, physical deterioration or functional or economic obsolescence. The term is used to account for the annual tax-free return of capital inveted in improvemenst over the life of the improvements, as a reduction in the property's cost basis.
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due diligence
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The concerted and continuing efforts of an agent employed to meet the objectives of their client, the agent's promise given in exchange for the client's promise to pay a fee.
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earnest money
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Down payment made by a purchaser of real estate as evidence of their good faith intent to buy. A deposit or partial payment.
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environmental hazards
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Noxious or annoying man-made conditions which are injurious to health or interfere with an individual's sensitivities.
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equity purchase transaction
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A sales transaction on a one-to-four unit residential property in foreclosure occupied by the owner as their principal residence, is acquired for dealer, investment or security purposes by an equity purchase investor.
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errors and omissions insurance
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An insurance policy protecting brokers and agents from the full cost of defending against and paying a negligence claims made by a client.
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escrow
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The depository process employed to facilitate the gathering of instruments and funds for use to transfer real estate interests between two persons.
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estoppel
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A legal theory barring a person from later asserting or denying a condition based on the person's previous acts or statements.
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eviction
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An unlawful detainer action filed to physically remove a tenant from actual possession.
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fair housing laws
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A collection of laws designed to prevent discrimination in the access to housing based on an occupant's inclusion in a protected class. Title VIII of the 1968 Civil Rights Act.
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fixture
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Personal property permanently attached to real estate and conveyed with it.
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flashing
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Thin pieces of impervious material such as sheet metal installed to prevent water seepage into a structure from a joint.
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forfeiture
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1) The termination of an easement when the easement holder exceeds their authorized use of the easement by placing an excessive burden on the property encumbered by the easement. 2) Loss of money, rights or anything of value due to failure to perform, a remedy abhorred by the courts.
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franchise
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A license granted by a franchise company to an individual or corporate broker to market their services in a specific territory under the anme and oversight of the franchise company.
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grace period
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The time period following the due date for a payment during which payment received by the lender or landlord is not delinquent and a late charge is not due.
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guarantee
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An assurance that events and conditions will occur as presented by the agent.
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habitable condition
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The minimum acceptable level of safety, utility and sanitation permitted in a residential rental.
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hazardous waste
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Any products, materials or substances which are toxic, corrosive, ignitable or reactive.
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hip roof
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The roof of a property that slopes on all four sides.
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homeowners' association (HOA)
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An organization made up of owners of units within a common interest development (CID) which manages and operates the project through enforcement of conditions, covenants and restrictions (CC&Rs).
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homestead
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The dollar amount of equity in a homeowner’s principal dwelling the homeowner qualifies to shield as exempt from creditor seizure.
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implied warranty of habitability
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An unwritten provision, included by statute, in all residential lease agreements requiring the landlord to provide safe and sanitary conditions in the rental unit.
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incurable breach
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Nonmonetary defaults in leases or mortgages that cannot be cured or undone.
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interpleader
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A court proceeding initiated by the holder of money or other property, often an escrow company, who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.
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intestate
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A person who dies having made no will, or whose will is defective in form, is said to have died intestate, in which case the estate descends to the heirs.
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inventory
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Properties available on the market for sale or lease published through the multiple listing service (MLS).
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joint pre-expiration inspection
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An inspection conducted by a residential landlord or the property manager to advise a tenant of the repairs the tenant needs to perform to avoid deductions from their security deposit.
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joist
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A horizontal support running between a property's foundations, walls, or beams to support its ceiling or floor.
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judgment
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The final determination of a court on a matter presented to it; money judgments provide for the payment of claims presented to the court.
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judgment lien
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A money judgment against a person recorded as an abstract and attaching to the title of real estate they own.
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lead-based paint hazard
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Any condition that causes exposure to lead from lead-contaminated dust, soil or paint which has deteriorated to the point of causing adverse human health effects.
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legal description
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The description used to locate and set boundaries for a parcel of real estate.
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leverage
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The use of debt financing to aquire property to maximize the return on cash invested, the loan-to-value ratio.
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license
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The personal, unassignable right held by an individual to the non-exclusive use of property owned by another.
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limited liability company
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An entity formed for the purpose of holding title and operating real estate for a group of investors. The members of an LLC are not liable for the LLC's debts and obligations.
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lis pendens
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A notice recorded for the purpose of warning all persons that the title or right to possession of the described real property is in litigation.
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marketing package
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A property information package handed to prospective buyers containing disclosures compiled on the listed property by the seller's agent.
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material breach
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A significant contractual breach that prevents the completion of the agreed upon activity.
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material defect
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Information about a property which might affect the price and terms a prudent buyer is willing to pay for a property.
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material fact
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A fact that, if known, might cause a prudent buyer or seller of real estate to make a different decision regarding what price to offer or demand for a property or whether to remain in a contract or cancel it.
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mechanic's lien
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A lien entitling a contractor or subcontractor to foreclose on a job site property to recover the amount due and unpaid for labor and materials they used.
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mediation
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An informal, non-binding dispute resolution voluntarily agreed to in which a third-party mediator works to bring the disputing parties to their own decision to resolve their dispute.
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metes and bounds
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A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description are used when accuracy as to the exact location of the line is required.
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multiple listing service (MLS)
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An association of real estate agents pooling and publishing the availability of their listing properties.
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Natural Hazard Disclosure Statement (NHD)
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A report provided by a local agency or NHD vendor and used by sellers and seller's agents to disclose natural hazards which exist on a property held out for sale.
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negligence
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The failure to behave with the level of care that someone of ordinary prudence would have exercised under the same conditions.
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notice of entry
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A document served on a tenant giving them advance notice of a landlord's intent to enter a tenant's unit to perform maintenance, make repairs or inspect.
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notice of nonresponsibility
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A notice used by an owner to declare they are not responsible for any claim arising out of the improvements their tenant is constructing on their property.
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notice to pay rent or quit
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A notice served on a tenant by the landlord which states the amount of delinquent rent and any other delinquent amounts owed the landlord under a rental or lease agreement.
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notice to perform or quit
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A notice requiring a tenant to perform an action to remedy a curable nonmonetary breach of the lease agreement.
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notice to quit
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A notice to vacate served on a tenant for an incurable breach of a rental or lease agreement or due to a statutory breach of the tenancy.
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notice to vacate
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A written document used by a tenant or a landlord to terminate a periodic tenancy.
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novation
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An agreement entered into by a mortgage holder, buyer and seller to shift responsibility for a mortgage obligation to the buyer by an assumption and release the seller of liability.
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nuisance
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An action which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property.
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nuisance per se
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Any activity specifically declared by statute to be a nuisance, such as construction of fences of excessive height or the illegal sale of controlled substances.
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obsolescence
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Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. May be functional or economic.
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operating expenses
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The total annual cost incurred to maintain and operate a property for one year.
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option
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A right given for a consideration to another by a property owner, to purchase or lease a property as agreed within a specified time without obligating the person who receives the right to exercise the right.
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orientation
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Placing a structure on its lot with regard to its exposure to the rays of the sun, prevailing winds, privacy from the street and protection from outside noises.
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panic selling
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As with blockbusting, the prohibited discriminatory practice of a real estate licensee inducing a property owner to list a property for sale by suggesting that a change in neighborhood demographics will cause a loss in property values.
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parcel
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A three-dimensional portion of real estate identified by a legal description.
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patent
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Conveyance of title to government land.
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percentage lease
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A commercial lease agreement for a retail operation that sets the total amount of rent the tenant will pay as a percentage of the tenant's gross sales.
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periodic tenancy
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A leasehold interest which lasts for automatic successive rental periods of the same length of time, terminating upon notice from either party.
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personal property
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Moveable property not classified as part of real estate, such as trade fixtures.
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planned unit development (PUD)
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A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.
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plottage
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A term used in appraising to designate the increased value of two or more contiguous lots when they are joined under single ownership and available for use as a larger single lot. Also called assemblage.
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prefabricated house
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A house manufactured and sometimes partly assembled before delivery to building site.
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pro rata
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In proportion; according to a percentage or proportion of a whole, such as annual property taxes, based on part of a month or year.
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procuring cause
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That cause originating from a series of events that, without break in continuity, results in an agent producing a final buyer under an agency employment; the real estate agent who first procures a ready, willing, and able buyer for the agreed upon price and terms entitling them to a fee.
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property
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Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is classified into two groups, personal property and real property.
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property management
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A service offered by a licensed real estate broker in their real estate business involving the marketing, operation, maintenance and day-to-day accounting for rental properties.
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Proposition 13
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A 1979 California state constitutional amendment restricting property tax increases in years following acquisition by limiting annual increases in assessed value of real estate to no more than 2%, or the rate of consumer inflation if less.
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puffing
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An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.
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pure-net lease
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A commercial lease in which a tenant assumes absolutely all the obligations of ownership.
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quiet enjoyment
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Right of an owner or tenant to the use of the property without interference of possession.
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quiet title
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A court action to remove a cloud and establish title to a property.
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radon gas
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A naturally occurring gas which accumulates in confined areas at ground level and poses a health risk to occupants.
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ratification
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The adoption or approval of an act performed on behalf of a person without previous authorization, such as the approval by a principal of previously unauthorized acts of an agent, after the acts have been performed.
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ready, willing and able buyer
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One who is prepared to enter into a purchase agreement, wants to buy, and meets the financing requirements for purchase.
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real estate
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Land and anything permanently affixed or appurtenant to it.
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real estate investment trust (REIT)
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An entity issuing securities held by investors and traded on the stock market, holding title to income-generating property, trust deeds and treasury bonds.
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Real Estate Law
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A collection of 29 codes in California civil law governing real estate practice licensed under the Business and Professions Code and in the Government Code.
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real property
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Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land.
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red flag
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A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.
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rent skimming
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When an investor receives rents from a parcel of residential rental property during their first year of ownership and does not apply the rents (or an equivalent amount) to the payments due on all mortgages secured by the property.
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restoration
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The return of funds and documents on a rescission of a purchase agreement or transaction sufficient to place all the parties in the position they held before entering into the agreement or closing the transaction.
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right of first refusal
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A pre-emptive right held by another person to buy a property if the owner decides to sell.
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security
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Collateral for a debt in the form of a lien imposed on property.
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security deposit
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A source of funds to pay tenant obligations owed the landlord on the tenant's default in the rental or lease agreement.
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single family residence
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A housing structure, attached or detached, maintained and used as a single dwelling unit.
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slander of title
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False and malicious statements disparaging an owner's title to property resulting in money losses to the owner.
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specific performance action
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Litigation to compel performance of an agreement.
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statement of deficiencies
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A document a residential landlord presents to a vacating tenant specifying any repairs or cleaning to be completed by the tenant to avoid deductions from the security deposit.
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Statute of Frauds
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California state law requiring specific types of contracts to be in writing and signed by the person to be charged with performance before they will be enforceable by a court, e.g., purchase agreements and lease agreements for a term of more than one year.
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statute of limitations
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A period of time establishing the deadline for filing a lawsuit to resolve a dispute.
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sublease
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A leasehold interest subject to the terms of a master lease.
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subrogation
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The replacement of one person with another in regard to a legal right or obligation.
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surrender
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A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises.
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tenant improvements
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Improvements made to a leased property to meet the needs of the occupying tenant.
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termination
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The cancellation of a transaction before escrow has closed or a lease has ended.
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trade fixture
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A fixture used to render services or make products in the trade or business of a tenant.
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Transfer Disclosure Statement (TDS)
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A mandatory disclosure prepared by a seller and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure.
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trespass
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Any wrongful and unauthorized entry onto real estate in the possession of another.
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unlawful detainer (UD)
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The unlawful possession of a property.
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unlicensed activities
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Activities performed by unlicensed assistants, such as clerical work which does not relate to the communication of information such as price and terms of a sale with potential buyers and sellers.
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utilities
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Refers to services rendered by public utility companies, such as - water, gas, electricity, telephone, cable, internet.
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void
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To have no force or effect; that which is unenforceable.
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waive
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To relinquish, or abandon; to forego a right to enforce or require something.
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waste
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The intentional destruction or neglect of property which diminishes its value.
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wear and tear
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Depreciation of an asset due to ordinary usage.
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