California Real Estate Principles 12-15
Terms
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- Original basis plus capital improvements and costs of the sale, less depreciation if income producing
- Adjusted Cost Basis
- A Latin prefix meaning "according to value" Local governments levy real property tax based on the assessed value; property taxes are known as ad valorem taxes
- Ad Valorem
- A list of all taxable property showing the assessed value of each parcel; establishes the tax base
- Assessment Roll or Tax Roll
- A sale of real property to the state, in name only, when a taxpayer is delinquent in paying property tax
- Book Sale
- Money or any "non-like" property put into a sale by an investor to balance the equities in a 1031 tax deferred exchange; cash or mortgage relief in the exchange
- Boot
- Starts on January 1 and continues through December 31 of the same year
- Calendar Year
- Physical improvements made to a property
- Capital Improvements
- Usually the price paid for a property
- Cost Basis
- The estimated period over which an improved property may be profitably used to yield a return
- Economic Life
- Starts on July 1 and runs through June 30 of the following year; used for real property tax purposes
- Fiscal Year
- A $7,000 tax exemption on principal residence of the owner. Not available for vacation homes.
- Homeowner's Exemption
- A deed given to a successful bidder at a tax auction
- Tax Deed
- Causing panic selling by telling people that values in a neighborhood will decline because of a specific event, such as the purchase of homes by minorities
- Block Busting
- A common name for eminent domain, or the right of the government to take a private property form an owner for the public good, paying fair market value
- Condemnation
- The right of the government to take private property from an owner, for the public good, paying fair market value
- Eminent Domain
- A study of how a development will affect the ecology of it s surroundings
- Environmental Impact Report EIR
- Subdivisions located in sparsely populated areas of California, made up of 50 parcels or more
- Land Projects
- Another name for a mobile home
- Manufactured Housing
- The use of a property's location to deny financing
- Redlining
- Illegal practice of only showing clients property in certain areas
- Steering
- A state law protecting purchasers of property in new subdivisions from fraud, misrepresentation or deceit in the marketing of subdivided property; concerned with financial aspects of a development
- Subdivided Lands Act
- Outlines rules for filing subdivision maps to create subdivisions; concerned with physical aspects of a development
- Subdivision Map Act
- The division of land into five or more lots for the purpose of sale, lease or financing
- Subdivision
- An exception granted to existing zoning regulations for special reasons
- Variance
- The occupation of a broker; the business of selling real estate through a broker who negotiates the sale for a commission
- Brokerage
- The previously agreed upon division of money between a broker and sales associate when the brokerage has been paid a commission from a sale made by the associate
- Commission Split
- An escrow business conducted by someone who is a licensed escrow holder
- Neutral Depository
- Money received by real estate brokers or salespersons on behalf of others
- Trust Funds
- The law concerning transfer in bulk (not sale in the ordinary course of the seller's business)
- Bulk Transfer Law
- Any type of business that is for lease or sale
- Business Opportunity
- A written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property; established the creditor's interests in the personal property which is security for the debt
- Financing Statement
- An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage
- Goodwill
- A manufactured unit constructed on a chassis and wheels, designed for permanent or semi-attachment to land
- Mobile Home
- A court-approved sale of the property of a deceased person
- Probate Sale
- Collected as a percentage of the retail sales of a product, by a retailer and forwarded to the State Bord of Equalization
- Sales Tax
- The period that sets apart a whole number from a fractional part of that number
- Decimal Point
- A number by which another number is divided
- Divisor
- A number to be divided by another number
- Dividend
- The percentage of interest charged on the principal
- Rate
- Duration of a loan
- Time