This site is 100% ad supported. Please add an exception to adblock for this site.

California Real Estate Principles 1-6


copy deck
A set of principles or values by which an individual guides his or her won behavior and judges that of others
The power of the state to pass laws, within lawful limits, that promote the order, safety, health, morals and general welfare of it citizens
Police Power
Someone licensed by the Department of Real Estate, holding either a broker or salesperson license, who negotiates sales for other people
Real Estate Agent
Someone holding a broker license and permitted by law to employ those holding a salesperson license, who may negotiate sales for other people
Real Estate Broker
The law that affects the licensing and conduct of the real estate agents
Real Estate Law
Someone holding a salesperson license who must be employed by a real estate broker, for pay, to perform any of the activities of real estate broker
Real Estate Salesperson
The same as real estate salesperson, holding a salesperson license, employed by a broker
Real Estate Sales Agent
Recall and make void
Temporarily make ineffective
A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress and enhance service
Trade Organization
Those rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily part of the actual property
A survey line running east and west, used as a reference when mapping land
Base Line
A written agreement used to transfer ownership in personal property
Bill of Sale
An ownership concept describing all the legal rights that attach to the ownership of the real property
Bundle of Rights
Personal property
An item of personal property which is connected to real estate; for example, a lease
Chattel Real
A condition which requires something to occur before a transaction becomes absolute and enforceable; for example, a sale that is contingent on the buyer obtaining financing
Condition Precedent
A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor; for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence
Condition Subsequent
Owner may use only a reasonable amount of the total underground water supply for his or her beneficial use
Doctrine or Correlative User
Annual crops produced for sale
A legal interest in land; defines the nature, degree, extent and duration of a person's ownership in land
The most complete from of ownership of real property; a freehold estate that can be passed by descent or by will after the owners death; also known as estate of inheritance or fee simple estate
Estate in Fee or Estate of Inheritance
The largest, most complete ownership recognized by law' an estate in fee with no restrictions on its use
Fee Simple Absolute
Also known as fee simple qualified
Fee Simple Defeasible
An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs
Fee Simple Qualified
Personal property that has become affixed to real estate
An estate in real property which continues for a indefinite period of time
Freehold Estate
A leasehold estate, considered to exist for a definite period of time or successive periods of time until termination
Less Than-Freehold Estate
An estate that is limited in duration to the life of its owner or the life of some other chosen person
Life Estate
A measurement meaning one foot or 12 inches in length as contrasted to a square foot or cubic foot
Linear Foot
Land bordering a lake, ocean or sea-as opposed to land bordering a stream or river (running water)
A survey line running north and south, used as a reference when mapping land
A method of land description in which the dimensions of the property are measured by distance and direction
Metes and Bounds
A fixed landmark used in a metes and bounds land description
Anything movable that is not real property
Personal Property
A map of a town or subdivision showing the location and boundaries of individual properties, used in the record tract system to descrive land
American Land Title Association policy of extended title insurance policy, can be purchased by lender or buyer
A.L.T.A.Owner's Policy
A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate
Abstract Title
A person who, historically, searches out anything affecting the title to real property and summarizes the information in the findings
A formal declaration to a public official (notary) by a person who has signed an instrument which states that the signing was voluntary
Knowledge gained based on an actual observance, as opposed to Constructive Notice
Actual Notice
A trade association of the state's title companies
California Land Title Association
The recorded history of matters such as conveyances, liens and encumbrances affecting title to a parcel of real estate
Chain of Title
Recordation of deed or possession of property
Constructive Notice
The transfer of title to land from on person to another by use of a written instrument
The recorded document that protects a homeowner from foreclosure by certain judgment creditors
Declaration of Homestead
The property the benefits from an easement
Dominant Tenement
The right to use another's land for a specified purpose, sometimes known as a right-of-way
An easement that is not appurtenant to any one parcel; for example, public utilities
Easement in Gross
The placement of permanent improvements on adjacent property owned by another
Land grants recorded by the Mexican government in California
An extended title insurance policy
Extended Policy
An assurance of clear title
Guarantee of Title
A written legal document setting forth the rights and liabilities of the parties involved
The final legal decision of a judge in a court of law regarding the legal rights of parties to disputes
Permission to use a property, which may be revoked at any time
A claim of the property of another for the payment of a debt
A recorded notice that indicates pending litigation affecting title on a property, preventing a conveyance or any other transfer of ownership until the lawsuit is settled and the lis pendens removed
Lis Pendens
Good or clear saleable title reasonably free from risk of litigation over possible defects
Marketable Title
A court action to divide property held by co-owners
Partition Action
Deeds used by the U.S. Government when confirming or transferring ownership to private parties
Patent Deed
The property that is burdened by and easement
Servient Tenement
Ownership of real property by one person or entity
A policy of title insurance covering only matters of record
Standard Policy
Evidence of land ownership
An insurance policy that protects the insured against loss or damage due to defects in the property's title
Title Insurance
The storage facility of a title company in which it has accumulated complete title records of properties in its area
Title Plant
Ended the war with Mexico in 1848, and California became a possession of the United States
Treaty of Guadalupe Hidalgo
That interest a co-owner has in property, which carries with it the right to possession and use of the whole property, along with the co-owners
Undivided Interest
Owned by
An unqualified agreement to the terms of an offer
A lawsuit brought to court
The person whom a claim, benefit or right in property is made
The transfer of a claim, benefit or right in property from one person to another
The person transferring a claim, benefit or right in property to another
The person holding the power or attorney
A contract in which each party to the contract promises to perform some act or duty in exchange for the promise of the other party
Bilateral Contract
A failure to perform on part or all of the terms and conditions of a contract
Breach of Contract
Something of value-such as money, a promise, property or personal services
An agreement to do or not to do a certain thing
Intention to be bound to an agreement, thus preventing jokes and jests from becoming valid contracts
Contractual Intent
The rejection of an original offer that becomes a new offer
Precise acts to be performed are to be clearly stated
Definate and Certain
Also known as a sales contract; the primary document used to present an offer on real property
Deposit Receipt
The use of force to get agreement in accepting a contract
Someone who is legally set free from parental control/supervision
Emancipated Minor
To perform or complete;to sign
A contract in which the obligations have been performed on both sides of the contract and nothing is left to be completed
Executed Contract
A contract in which obligation to perform exists on one or both sides of the contract
Executory Contract
The parties declare the terms and put their intentions in words, either oral or written
Express Contract
Refraining from action by a creditor against the debt owned by a borrower after the debt has become due
An act meant to deceive in order to get someone to part with something of value
Gifts such as real property based solely on love and affection
Good Consideration
Agreement is shown by acts and conduct rather than words
Implied Contract
Sets in advance a specified amount of money as a penalty in the event of a breach of contract
Liquidated Damages
A contract by which a principal employs an agent to do certain things for the principal
Using threat of violence to get agreement in accepting a contract
Someone under 18 years of age
An innocent or negligent misstatement of a material fact causing someone loss or harm
An error in misunderstanding
Agreement to the provisions of a contract by the parties involved; a mutual willingness to enter into contract
Mutual Consent
The substitution by agreement of a new obligation for an existing one
A presentation or proposal for acceptance to form a contract
The party receiving an offer
The party making an offer
A right-given for consideration-to a party(optionee) by a property owner (optionor)
Oral or written negotiations made prior to a dispute about an executed contract
Parol Evidence
A written instrument giving a person legal authority to act on behalf of another person
Power of Attorney
Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract
The canceling of an offer to contract by the person making the original offer
An action brought in a court to compel a party to carry out the terms of a contract
Specific Performance
A state law which requires that certain contracts must be in writing and contain certain essential elements in order to be enforceable
Statute of Frauds
The period of time limited by statute within which certain court actions may be brought by one party against another
Statute of Limitations
An offer by one of the parties to contract to carry out his or her part of the contract
An act must be performed within certain time limits described in a contract
Timely Manner
Using unfair advantage to get agreement in accepting a contract
Undue Influence
A contract that was valid when made but either cannot be proved or will not be enforced by a court
An agreement in which one party promised to pay consideration or to do something in return for the performance of an act by another party; the party making the promise is not legally obligated to act unless the other party performs (a promise for an act)
Unilateral Contract
Legal action taken to repeal a contract by one party when the other party has breached a contract
Unilateral Recission
Legally binding
Each party to a contract must give up something to make the agreement binding
Valuable Consideration
An agreement which is totally absent of legal effect
An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties
The acquisition of title to additional land or to improvements as a result of annexing fixtures or as a result of natural causes such as alluvial deposits along the banks of a stream by accretion
A buildup of soil by natural causes on property bordering a river, lake or ocean
A person appointed by the court to handle the affairs of a deceased person when there is no one mentioned in a will to do so
Acquiring title to property by continued possession and payment of taxes
Adverse Possession
Any benefits that come to a property after a sale must follow the sale and accrue to the new owner
After Acquired Title
Transfer ownership or sell
Sand or mud, carried by water and deposited on land
Alluvial Deposit
Soil that builds up as a result of accretion
American Land Title Association
The sudden washing or tearing away of land by the action of water
A statement of the unpaid balance of a loan and the condition of the debt, as it relates to a deed of trust
Beneficiary Statement
A gift of personal property by will
California Land Title Association
A change in a will before the maker's death
To transfer ownership or title
A gift of real property by will
The gradual wearing away of land by natural processes
The deposit of funds or document with a neurtral third party who is instructed to carry out the provisions of an agreement
An independent third party legally bound to carry out the written provisions of the escrow agreement; a neutral, bonded third party who is a dual agent for the principals; sometimes called an escrow agent
Escrow Holder
Written directions, signed by a buyer and a seller, detailing the procedures necessary to close a transaction and directing the escrow agent how to proceed
Escrow Instructions
Completion of an act or process, such as an escrow
A person named in a will to handle the affairs of a deceased person
Used to make a gift of property to a grantee, usually a close friend or relative
Gift Deed
A written instrument that transfers title to real property. Must contain a "granting clause".
Grant Deed
The person receiving the property, or the one to whom it is being conveyed
The person conveying, or transferring, the property
Written in the makers own handwriting, dated and signed by the maker
Holographic Will
A bank account established by a lender, in the name of the borrower, for the purpose of paying periodic expenses such as property taxes and property insurance. The borrower then makes pre-calculated monthly payments into the account. When the taxes or pr
Impound Account
Consideration used in a gift deed
Love and Affection
An examination of the public land records to determine the extent to which someone has legal interest in a parcel; a report on the quality of the title that searches for encumbrances and liens or any other items of record that might effect ownership/ use
Preliminary Title Report
Someone who directs or authorizes another to act in his or her place regarding relation with third persons; buyer or seller
A granting of private property to other private persons
Private Grant
The division and distribution of expenses and or income between the buyer and seller of property as of the date of closing or settlement
When private property is intended for public use, it may be acquired in this manner
Public Dedication
A transfer of title by the government to a private individual
Public Grant
Transfers any interest the grantor may have at the time the deed is signed with no warranties of clear title
Quitclaim Deed
Conveys title to property from a trustee back to the borrower (truster) upon payment in full of the debt secured by the trust deed
Reconveyance Deed
Occurs when land that has been covered by water is exposed by receding water
A deed given to a buyer when property is sold through court action in order to satisfy a judgement for money or foreclouser of a mortgage
Sheriff's Deed
The legal transfer of a person's interest in real and personal property under the laws of descent
A perosn who has made a will
A security instrument that conveys title to land as security for the payment of a debt
Trust Deed
No longer used in California; a deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it
Warranty Deed
A written instrument whereby a person makes a disposition of his property to take effect after his death
Will usually prepared by an attorney and signed by the maker and two witnesses
Witnessed Will
The amount of rental income due from the tenant as agreed in the lease agreement
Contract Rent
A conveyance of an estate in real property to someone for a certain length of time, as in a lease; to let
What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent
Economic Rent
A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal
Estate in Sufferance
The tenancy may be ended by the unilateral decision of either party; no agreed upon termination date, however, and either party must give 30 days notice before ending the tenancy
Estate at Will
A leasehold estate with a definite end date; must be renegotiated; a lease for some fixed period
Estate for Years
A leasehold estate that is automatically renewed for the same term; a conveyance for an indefinite period of time; does not need to be renegotiated upon each renewal; commonly a month to month rental
Estate from Period to Period
The legal process of removing a tenant from the premises for some breach of the lease
A lease calling for periodic increases in the rental payments; sometimes called a stair-stepped-lease
Graduated Payment Lease
Landlord pays for most of the operating expenses, including property taxes, maintenance and repairs
Gross Lease
Lessor; property owner
An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time
Leasehold or Lease
Tenant; renter
Landlord; property owner
A lease where the tenant pays such costs as taxes, insurance and repairs, as well as a set amount for rent; a triple net lease is one where the tenant pays all expenses of operating the property as well as a set amount of rent
Net Lease
A lease where the landlord receives a percentage of the gross sales as part or all of the rental payment
Percentage Lease
Consideration paid for the use of a property
Property from which 80% or more of the gross rental income is from dwelling units
Residental Rental Property
An act whereby a landlord evicts a tenant in response to some complaint made by the tenant
Retaliatory Eviction
The lessor (landlord) grants the right of possession to the lessee(tenant), but retains the right to retake possession after the lease's term has expired
Reversionary Right
A lease agreement created when a tenant sub lets the property to another person, thus creating a sublessor-sublessee relationship. The person in the "sandwich" is a lessee to the owner and a lessor to the sub-lessee
Sandwich Lease
Transfers less than the entire leasehold, with the original lessee being primarily liable for the rental agreement
The giving up of a lease, voluntarily
A renter
A lawsuit filed with the court against a tenant who remains in unlawful possession of rental property after breaching the terms of a lawful lease
Unlawful Detainer Action
A court order directing the sheriff to remove the tenant and his or her possessions within five days
Writ of Possession

Deck Info