California Real Estate Principles(13Th Ed.) Ch. 7

Front 1

Caveat Emptor

Back 1

A Latin phrase meaning "buyer beware".

Front 2

Red Flag

Back 2

Something that alerts a reasonably observant person of a potential problem(cracks in walls, foundations, and sidewalks; or stains from leaks in the roof etc).

Front 3

"As Is"

Back 3

A phrase in real estate referring to observable conditions. Does not relieve a seller from the responsibility to disclose all known material facts to the buyer

Front 4

Real Estate Transfer Disclosure Statement(TDS)

Back 4

A document that the seller must provide to any buyer of residential property(one to for units) telling what the seller knows about the condition of the property. Must list all defects as well as any potential problems that might affect the property value.

Front 5

Local Option Real Estate Transfer Disclosure Statement
(LORETDS)

Back 5

A disclosure statement given to a buyer if there is some local condition which may materially affect a buyer's use and enjoyment of the residential property.

Front 6

Mello-Roos District

Back 6

An area where a special tax is imposed on those real property owners within a Community Facilities District.

Front 7

Mello-Roos Disclosure

Back 7

A notification given prior to the buyer purchasing the property alerting the buyer that the property is subject to a special tax in addition to regular property taxes, usually used to finance public services.

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Inundation Map

Back 8

Areas that may flood as the result of a dam failure.

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State Fire Responsibility Areas

Back 9

Rural lands where the state has primary financial responsibility for hte prevention and extinguishing of fires rather than a local or federal agency. Land is often subject to certain preventative requirements.

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Alquist-Priolo Earthquake Fault Zoning Act

Back 10

An act preventing the construction of buildings for human occupancy on the surface trace of active faults.

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Earthquake Fault Zone

Back 11

An area delineated by state officials to have an active fault within it and have the potential for surface rupture.

Front 12

Seismic Hazard Zones

Back 12

Regulatory zones that the State has determined that a potential for liquefaction or earthquake induced landslides may affect the property.

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Homeowner's Guide to Earthquake Safety

Back 13

Seller must deliver a copy of this booklet to the buyer and complete the Residentail Earthquake Hazards Report in back of booklet for any residential dwelling build before 1960 consisting of one to four units or any masonry building with wood frame floors or roofs build before 1975.

Front 14

Megan's Law(Data Base Disclosure)

Back 14

Every lease and sales contract is required to include a statutorily defined notice regarding the existence of public access to data base informaiton regarding sex offenders in the neighborhood.

Front 15

Stigmatized Property

Back 15

A property that has been psychologically impacted by an avent which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind(murder, suicide, criminal activity).

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3 years

Back 16

Neither the transferor nor the agent has to disclose the fact of any death(considered to affect the reputation of the property) that occurred on the property to the transferee if the death was more than ___ years before the transferee made an offer to buy or lease the property.

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Only if asked directly about a death on the property and the transferee should direct any specific questions to the transferor in writing.

Back 17

Do agents have to disclose that a person had or has died from AIDS on the property?

Front 18

Market Conditions Advisory Form

Back 18

A form used to document that a broker discussed market conditions with a buyer.

Front 19

Subdivided Lands Law

Back 19

A law designed to protect buyers from fraud, misrepresentation, or deceit in the marketing of subdivided lots, parcels, units, and undivided interests in new subdivisions.

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Public Report

Back 20

A document disclosing all important facts about the property, its marketing and the financing of the subdivision.

Front 21

Preliminary public report

Back 21

Obtained by submitting a minimum application filing package which allows taking reservations for the project, but not accepting any non refundable money or entering into any binding contracts.

Front 22

The Interstate Land Sales Full Disclosure Act(ISLA)

Back 22

Regulates land sales when there are two or more states involved. Subdividers must conform to this law if they have 25 or more lots in one state and want to sel them in another state.

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Property Report

Back 23

Must be given by the developer to each prospective buyer as a protection from less than truthful advertising in far away places.

Front 24

Carbon Monoxide Poisoning Prevention Act

Back 24

An act requiring that carbon monoxide detectors must be installed in all dwelling units that contain a fossil fuel burning heater, appliance, or fireplace; or that have an attached garage.

Front 25

R-value

Back 25

Resistance to heat loss.

Front 26

Federal FIRPTA Disclosure

Back 26

A federal law requiring buyers of real property withhold and send to the IRS 10% of the gross sales price if the seller of the real property is a foreign person.