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213 Cards in this Set

  • Front
  • Back

The main historic influence on law in the U.S.

English Law

The primary purpose of most civil lawsuits is to

Compensate a person who has been harmed

When one sues another, the lawsuit is

A civil action

A person who commits a tort

Someone who has violated the standards of reasonable conduct imposed by law

Who would be most likely to issue an ordinance

A city Council


Combining scattered piecemeal laws into a comprehensive compendium or (collection)

When California legislature adopts a new statute, a new law

May change rules that were developed in earlier court decisions

An example of a question of law

Was the broker required to put the earnest money in a trust account?

Can limit a courts jurisdiction

Geographical boundaries, subject matter of the case, amount of money at issue in the case

A fact witness can

State her/his opinions while testifying if testimony is helpful

The boundaries in metes and bounds description

Distances, Monuments, Courses

In metes and bounds description, the term "courses" refers to

Compass readings

Compass directions are stated in terms of the degree of deviation from

North or South

Another name for the government survey system

Rectangular survey method

Range lines run

North/South at six mile intervals

Township lines run


The three principal meridians in California are

Humboldt, San Bernardino, Mt. Diablo

Trade Fixtures

Equipment installed for use in a tenants business

The owner of 10 acres of land with a one acre pond running through it has

riparian water rights

Law is

A system of rights and duties established and enforced by a government. It maintains order, resolves disputes, enforces promises, prevents eploitation

Civil Action

When an injured party sues for compensation

Substantive Law

Defines rights and duties

Procedural Law

Sets out the methods for enforcing substantive rights

Contracts, Torts, and Property

Fundamental concepts of Civil Law

Contract Law

Concerns voluntarily assumed duties

Tort Law

Concerns the duties of reasonable conduct imposed by law

Property Law

Concerns duties inherent in ownership

Federal and State constitutions, legislatures, courts, and administrative agencies

Sources of Law in U.S.


Protect individual rights by limiting government power

Administrative and Legislative Agencies

Issue general rules in the form of statutes, ordinances, and regulations


Develop case law by interpreting rules and follow established precedents

Doctrine of Stare decisis

Requires judges to follow established precedents so that the law will be evenhanded and predictable

Court System

A Hierarchy of trial courts and appelate courts

Res Judicata

Latin phrase "the thing has been decided" Once a dispute has been tried and a final judgment has been issued, the same dispute cannot be tried again

California courts have jurisdiction

Over all real and personal property within the states boundaries


Testimony that cannot be used in court becaused it has been considered as unreliable or unfair

Judgment Lien

A lien securing an interest in real property by attaching an abstract of judgment filed with the county recorder

Judgment Lien

May be attached to real property and some personal property (business property) by court order for repayment of a debt


When wages are used in collecting debt in installments

Real Property

Land that is affixed to land; Is incidental or appurtenant to land; is immovable by law

Personal Property

Is moveable, and is defined as every kind of property that is not real property

Legal Description

Determines real property's boundaries

Three most commonly used methods for land description

Metes and Bounds

Government survey

Lot and Block


Used in metes and bounds which may be natural objects such as roads or survey markers


Metes and bounds description, (description) in the form of compass readings


Metes and bounds description, measure in any convenient unit of length

Metes and Bounds

Identifies a parcel of land by boundaries including monuments, courses, and distances

Government survey

Divides the land into a series of rectangular grids called principal peridians and baselines

Range Lines

Smaller lines in the large squares of meridians running north/south at 6 mile intervals

Township Lines

East/West lines run at six mile intervals from the correction lines


1X1 Mi. = 640 Acres

Township measures

6x6 Mi. =36 sections

Divided into 36 sections (one sq. mile each)

36sections x640 acres = 23,040 acres

Lot and Block

A system of land description by using a map called Final Subdivision Map by showing the dimension and boundaries of each lot

Bench Mark

A point whose position relative to datum has been accurately measured


An artificial plane of elevation established in reference to sea level

Air Rights

The right to undisbursed use and control of the airspace over a parcel of land, maybe transferred seperately from the land


Things growing on the land (trees and shrubs) and things built on the land (houses and fences)

are considered to be real property

Fructus Naturales

Fruits of Nature

All naturally occurring trees and plants

Real Property

Fructus Industriales

Fruits of Industry

Are planted and cultivated by people

Real Property

Doctrine of Emblements

A special rule applying to crops planted by a tenant farmer. When a pre existing crop was planted prior to termination of lease the farmer may reenter the property to harvest the crops at a later date

Attached Fixtures

Man made attachments that are permanently resting on the land (houses or barns)

Affixed to land by roots (trees and shrubs)

Embedded in earth (sewer lines, septic tanks)

Attached by enduring method (Cement, plaster, nails, bolts or screws)


Man - made attachments


When an item becomes a fixture by being physically attached by the land in a way by forms of gravity or other ways that it cannot be removed without dismantling or tearing down a part of the building

Trade Fixtures

Equipment installed for the use of a tenant in his business

Mobile Homes

May be sold as personal property without a license unless the wheels have been removed and it has been permantly mounted on a foundation


A right that goes along with real property upon a sale or other transfer

Two main types of Water Rights



Riparian Rights

Any land that is adjacent to or crossed by water,

or contains a body of water within its boundaries

Mineral Rights

Considered to be real property until they are extracted, when they become personal property

An interest in real property that is, will be or may become possesory.


Uncertain duration

Indefinite ownership

Freehold Estate

Highest and largest interest that can exist in land



Perpetual (right to posses property for an unlimited amount of time)

Fee Simple Estate

Intestate Succession

When an estate is passed to heirs if there is no will

Subject to a condition

Fee Simple Defeasible

No conditions

Fee Simple Absolute

An estate in which the duration of the estate is based on the lifetime of the owner

Life Estate

The person who will earn the interest of the esate upon the death of the life estate

Estate in Remainder

When estate is granted back (reverted) to original grantor at the end of the life estate

Estate in Reversion

A limited interest in property. Someone rents the property for a limited time is in a leasehold estate

Leasehold Estate

Tenancy for a fixed term (estate for years)

Periodic tenancy (estate from period to period)

Tenancy at will (estate at will)

Tenancy at sufferance (estate at sufferance)

What are the four types of Leasehold Estates

A leashold estate for a fixed time period. Does not mean years, could be days, months, etc. With a begining and ending date

Estate for years

No specific term. Goes month to month until one of the parties gives notice of termination

Periodic Tenancy

Tenant occupies property with the owners permission, but without any rental agreement. No specified termination date or rent paid (unless paid by other form that has no reference to period of time)

Tenancy at will

When a tenant remains without the landlord's permission. Eviction must take place if the lanlord wants the tenant removed

Tenancy at Sufferance

Someone who has a claim or right concerning the property but does not have the right to possess the property. Encumber or burden title


(Non-possessory Interests)

A right held by one person to use the real property of another for a particular purpose.


Burdens one piece of land for the benefit of another piece of land

Easement Appurtenant

The land benefited by an Appurtenant easement

Dominent Tenement

The owner of the Dominent tenement

Dominent Tenant

The land burdened with an easement

Servient Tenement

The owner of the land burdened by an easement

Servient Tenant

An easement that burdens another's land, but does not benefit a piece of land. Has a servient tenement but not a dominant tenement.

Easement in Gross

A legal doctrine that prevents a person from asserting rights or making claims that are contrary to his or her previous acts or conduct


Created when someone makes long and continuous use of another's property without permission of the owner

Easement by prescription

Grants permission to enter another's property for a purpose, not an interest in the property. A personal right


Financial interest in property


Proerty owner chooses to have placed against their property, ussually to obtain a loan


Deeds of Trusts

Voluntary Lien

Arise through operation of law without property owners consent

Involuntary Lien

Attaches to all of the debtors property

General Lien

Attaches only to a particular piece of property

Specific Lien

Deeds of Trust





Most common Liens against Real Estate

The Lender






Neutral third party




When a worker or a material supplier is not paid for work they may obtain a Mechanics Lien. It gives them the power to force the sale of the property to collect the debt owed.

Mechanics Lien

The annual ad valorem taxes imposed on real property

Property Taxes

Determining the value of property for tax purposes


Tax rate limited to 1% of the assessed value

Assessed value = full cash value

(unless ownership hasnt changed since March 1975)

Property Reassessed on change of ownership

Assessed value can't be increased more than 2% a year

(unless there is a new owner or improvements)

Affects of Proposition 13

Have priority over all Liens except special assessment liens

Property Tax Liens

Tax collector publishes a list of properties which have been tax defaulted for five years and will be subject to sell

Notice of Power and Intent to Sell

The dwelling of the property owner or owner's spouse, together with its land and outbuildings


Five years from date condition was broken

A grant deed with conditions regarding use of property which if broken returns title to previous owner or heirs. The previous owner must exercise the power of termination within what period of time

A Life Estate Pur Autre Vie

If a Life Estate is based on someone other than the life tenant, it is called

May not use or abuse property in any way that would permanently damage it

May not use or abuse it any way in which it would reduce the market value

A Life Tenant

Tenancy at Will

When someone allows a person to live in their vacated property

Easement Appurtenant

An Easement that burdens one piece of land for the benefit of another


Property taxes cannot be increased each year by more than?


What percent of the assessed value is the tax rate limited

Free from most liens or interests that were recorded before the tax lien

A person who requires title by tax deed purchases the property


A single person owning and occupying a resident has a homestead exemption of


What percent does a property owner have to pay to redeem his property from delequent taxes

(Delenquent penalty )

When property is owned by one individual, they hold title as


Most basic form of co- ownership

Can have unequal shares in property

No limit on how many tenants in common

Tenancy in Common

Right of Survivorship

and requires four unities:





Joint Tenancy

Voidable by the non-consenting spouse

On Community property, an unauthorized transfer by one spouse only is

A trust that is effective during the life of the owner

Revocable Living Trust

A seperate interest in his/her unit, plus an undivided interest in the common areas.

Owner of a condominium has

Tenancy in Common

If A owns an undivided 3/4 interest in property and

B owns an undivided 1/4 interest in same property

They hold title as

A tenant by the entirety

In California a married person may not hold title to real property as

The property is owned by one individual

When property title is Severalty it means


The only one requirement unity for tenancy in common is

Not if they both agreed that only one living there would not sever the joint tenancy

If A and B took title as joint tenancy and they agreed only one would live there would this effect joint tenancy?

The Right of Survivorship

A,B,C owns a piece of land as joint tenants. If A dies then B,C would acquire 1/2 interest each because of

If B dies, the lender loses its lien against the property

A,B,C own a house as joint tenants. B takes out a loan, giving her lender the trust deed on her interest in the property.

W and A each own 1/2 interest in property

H and W were married. They own land as community property. H wills all his property to A. When H dies who owns the land?

Corporate officers authorized to sell it by a resolution of the board of directors

A corp owns some land by severlty. In order to sell the land, who must sign the documents

Special Agent

A real estate agent is considered to be a

Both parties agree to end it

Agent renounces it

Principal revokes it

Agency is terminated by any of the following ways

The broker goes bankrupt

A real estate agency is terminated by operation of law if

Risk Management

Which course is required in renewing your real estate license first time?

3 Years

Law requires that brokers to keep adequate records of real estate transactions and retain them for how long

3 buisness days after receipt

All trust funds received by a broker must be deposited in a trust account or escrow account within

There are written instructions from the parties

Broker may hold a buyer's earnest money check without depositing it in a trust account if

Demand-deposit accounts

A real estate broker's trust accounts must be

By his or her broker

A Salesperson must be paid a commission

Is agreed upon between the broker and the seller

The amount of commission paid by the broker to the seller

Listing Agent

A person who obtains a listing of the real property acting as an agent for compensation

As soon as practicable prior to signing the buyers' offer

A selling agent must provide the agency disclosure form to the buyer

In purchase contract or separate writing

Real Estate agents must confirm their agency relationships

A reasonably competent and diligent visual inspection of the property

An agent has a duty to disclose material facts based on an inspection that includes

Must always be completed by the seller

Transfer Disclosure Statement

Does require a Transfer Disclosure Statement

Residential property that is sold "as is"

A Transfer Disclosure Statement is NOT required

If a married person transfers their half of interest to their spouse

2 years for negligent inspection

3 years for intentional fraud

The statute of limitations for a lawsuit brought against a broker is

An agreement to do or not do a certain thing


Express Contract

A contract that has been made in words, whether spoken or written

A contract that has not been put into words. Instead the agreement is implied from the actions of the parties

Implied Contract

A contract that exists when each party makes a binding promise to the other. Formed by the exchange of promises.

Bi-lateral Contract

A contract that exists when one party promises something if the other party performs a certain action, but the other party does not promise to perform it.

Uni-lateral Contract

A contract that has been fully performed

Executed Contract

A Contract where something remains to be done by one party

Executory Contract

A Contract that meets all the legal requirements for contract formation

Valid Contract

When one does not fulfill his side of the bargain in the contract


When one or more of the requirements in the contract is not met.


A contract that may be valid in all respects except that it cannot be enforced in a court of law

Unenforceable Contract

Capacity to contract

Mutual consent


Lawful purpose

4 Essential elements in a valid contract

Be in writing to be enforceable

Real Estate Contract must

A minor who has been appointed by the courts that they may have the capacity to buy, sell, lease, encumber, exchange, or transfer an interest in real property


The Inability of a person to make or carry out important decisions regarding his/her affairs

Mental Incompetence

A contract must have this to be binding. It is achieved through Offer and Acceptance

Mutual Consent

If a contract is to vague it will not be a binding contract. It must have this

Definite Terms

Death or insanity

Destruction of property

Impossibility of performance

Illegality of performance

Offers Terminated by Operation of Law

Revocation by the offeror before the offer is accepted

Rejection of any part of the offer by the offeree

Counter offer by the offeree

Lapse of time where " too much" time has passed

Termination by parties

An offeror revokes the offer before it is accepted


When offer is not accepted by oferee


A new offer made in rejection of an offer from a buyer/seller with different terms from the original offer. A counter offer terminates a original offer

Counter offer

A new contract


An alternative to the court system


4 yours after the breach occurred

What is the Statute of Limitations for a written contract lawsuit?

Court awarded remedy for a breach of contract


Where parties agree that if there is a breach, the damages are set at a specified sum or calculated according to a specified formula

Liquidated Damages

A court order directing a person to do or refrain from doing something



Undue influence




When a contract is voidable

Real Estate Purchase Contracts

Leases for more than one year

Listing agreements

Powers of attorney

Trust Deed Assumptions

Statute of Frauds requires certain contracts to be in writing and signed by the party to be charged, these are

New consideration in a contract. May be oral unless the original contract stated that it could only be modified in writing. Or the statute of frauds applies to the contract as modified.

Contract modification





Specific types of Contract modifications

When one party to a contract makes the mistake

Uni-lateral Mistake

Sets a period of time in which a lawsuit may be brought

Statute of Limitations

Awarded in cases involving a TORT ( such as fraud) and not for breach of contract

Punitive Damages


California theres a presumption that a contracts liquidated damage provision is valid if the percent of the purchase price provisional is

Does not come into court

Parol Evidence Rule

A condition

When an obligation in a contract involves an occurrence of a particular event, then that obligation is subject to

A Contract must be signed by person being sued

Technically, with regard to Statute of Frauds

A signed writing by the client that indicates the fact of employment

Listing agreement should state the terms of sale the seller is willing to accept and should specify when the broker will be entitled to the commission.

What must a Real Estate Broker have to sue for a commission

A document that sets forth all the terms of the agreement between the buyer and seller. Most contain contingents.

Purchase Agreement

Insures that the document being signed represents the final expression of the bargain, and any future modification must be in writing

Integration Clause

Not an option; the holder has a right to purchase the property only if the owner decides to sell

A right of preemption

(right of first refusal)

Real Estate Commissioner's Regulations require this by a broker and has to be a written employment agreement with each licensee who works for him or her. Must be signed by both parties and it should state the terms of employment relationship, such as duties, supervision, compensation and termination

Employment form

Employment contract between seller and broker. Does not have to be a legal document to be enforceable. It must however be in writing and signed by both parties. It is also important that the facts of employment are included.

Listing Agreement

Offer to purchase real property

Completed contract when accepted and signed by the buyer and seller

A receipt for the good faith earnest money

Joint Escrow instructions

Sellers agreement to pay listing brokers compensation

Mediation and Arbitration agreement

Confirmation of the agency relationship

Irrevocable assignment of compensation to brokers

Residential Purchase Agreement and Joint Escrow instructions is a multi-functional form and contains ?

3 days of completion

The Purchase agreement should be delivered to the escrow company within

If buyer defaults the broker is entitled to half the damages the seller receives, but is not allowed to receive more money than the commissions he may have made.

Compensation Provision of Car

Five working days

How many days does a broker have to review, sign, initial, and date a salespersons documents after they were prepared or before closing (whichever occurs first)

Integration Clause

What clause in a contract that states this written document is the entire contract agreement between parties is referred to as

Before the seller signs the listing agreement

The broker must provide seller with an agency disclosure form when

Exclusive Agency

Exclusive Right to Sell Agency

Which Listings must contain a termination date?

3 years

Broker should keep on file an exclusive right to sell listing for how many years?

Both buyer and seller must initial arbitration provision

California Association of Realtors purchase agreement; in order to arbitrate a dispute

Mediation provision is binding whether it is initialed or not

In regards to the California Association of Realtors purchase agreement, in order to mediate any dispute the

A provision in a purchase contract which establishes the dollar amount in the event of a breach of contract by the buyer is called

Liquidated Damages Clause

The right of preemption is also

Right of first refusal