Land - ANSWER-The physical property and any natural objects on it - like trees and bodies of water, often referred to as a "lot', "site", or
... [Show More] "parcel".
Real estate - ANSWER-generally refers to land with permanent manmade improvements.
Real property - ANSWER-refers not only to the land and its improvements, but also the bundle of rights, powers, and privileges ("bundle of rights") that are legally connected to ownership of that land. Transferred by deed.
Tangible rights - ANSWER-based on the physical aspects of a property, such as claims to: land, buildings, garages, barn/sheds or other improvements, forests, farmland, vineyards, trees, plant life, floral gardens (with some minor exceptions), fixtures (such as fences, plumbing, etc.).
Intangible rights - ANSWER-associated with areas above and below the land surface, access and privileges such as: air rights, water rights, subsurface rights (mineral rights), easements, licenses profits, leases, mortgages.
Personal property - ANSWER-refers to property those tangible and moveable, such as furniture and swing sets. Personal property does not include rights to the land and it is transferred by "Bill of Sale." Personal property can become real property when it becomes a permanent fixture of the land.
Fixtures - ANSWER-are items that have been permanently attached to real property. Can be pieces of personal property that have been "physically or constructively annexed" to a structure. Tests of a fixture: M-A-R-I-A - Method of attachment, adaptability, Relationship of the parties, Intent, Agreement between the parties.
Land characteristics - ANSWER-There are two main characteristics to describe land and land function; physical characteristics and economic characteristics.
Physical land characteristcs - ANSWER-Immobility - land cannot be moved in its entirety; Indestructibility - Although land can be damaged by storms or disasters, ultimately, it cannot be destroyed because it continues to change, adjust and develop over time. Non-homogeneity - no two pieces of land are identical.
Economic characteristics of land - ANSWER-Scarcity - In some areas, land is considered a rarity, and ownership is even more unlikely. Permanence - Also known as "fixity," permanence refers to the lasting potential of land. Situs - Concept that some locations are more and less valuable. Improvements - Structures and landscaping add value to land.
Metes and bounds - ANSWER-A method of describing real property that uses geography and land features with direction and distances to define and describe the boundaries of the land.
Rectangular survey system - ANSWER-Traditional method of surveying property and it measures factors such as precise length of line run, natural materials (flora/fauna), and surface and land soil.
Government or US public land system - ANSWER-Most commonly used method to survey and spatially identify land or property parcels before designating ownership, whether for sale or transfer.
Townships - ANSWER-A survey method that refers to a square unit of land that is six miles on each side.
Principal meridians - ANSWER-Method that uses principal meridian line for survey control in a large region, which divides townships between north/south/east/west.
Base line and meridian intersections - ANSWER-In CA, there are three base line-meridian intersections that are used for legal descriptions. Base lines run horizontally (east to west) and meridians run vertically (north to south). The three base-line meridian intersections used in CA are: Humboldt Base Line and Meridian (northern part of state), Mt. Diablo Base Line and Meridian (central), San Bernardino Base Line and Meridian (southern).
Recorded plat - ANSWER-Also known as the lot and block survey system, this system is used for lots in a variety of areas.
Assessor's parcel number (APN) - ANSWER-Also known as an appraisal's account number, a number assigned to parcels of property by the area's jurisdiction for identification and record keeping.
U.S. government sections and townships method - ANSWER-utilizes a grid of lines; the horizontal lines are township or tier lines. The vertical lines are called range lines, both lines run in six mile increments.
Appurtenant rights - ANSWER-are additional beneficial rights, interests and items associated with land ownership beyond just the physical soil.
Riparian rights - ANSWER-refers to a land owner's right to "reasonable use" of water flowing through or abutting the property. When dealing with a navigable body of water, the property owner's boundary will extend to the water's accretion line (edge). Non-navigable body of water, the property owner's boundary will extend to the water's center point.
Littoral rights - ANSWER-Refers to a land owner's right to "reasonable use" of the water abutting the property as in lakes and oceans.
Accession - ANSWER-Attaining land due to the soil deposited by natural elements such as accretion or alluvial deposit. Title to real property can be acquired this way - the addition to property through the efforts of man or natural forces.
Erosion - ANSWER-Natural elements cause a steady decrease in land.
Accretion - ANSWER-Deposit of soil by water that results in the steady increase in land.
Alluvial - ANSWER-Water shifts alluvium soil resulting in gradual increase of land.
Avulsion - ANSWER-Water abruptly changes its course resulting in rapid decrease in land
Reliction - ANSWER-Retreat of water causes a steady increase in land.
Natural flow doctrine - ANSWER-Riparian owner's use cannot cause the water to diminish in the amount, quality or pace. All riparian owners have the right to have access to the water in its natural state.
Doctrine of reasonable use - ANSWER-Each riparian owner is entitled to "reasonable use of the water."
Doctrine of prior appropriation - ANSWER-Refers to the water rights that not linked to land ownership. These can be sold and mortgaged as real property.
Doctrine of beneficial use - ANSWER-States that the first users of the water have priority, but must use the water in a beneficial manner and within a reasonable time frame.
Doctrine of correlative rights - ANSWER-Imposes a limit on landowners regarding their share of the water. Generally, this limit correlates to the amount of land owned by each.
Mineral rights - ANSWER-The rights to minerals, such as oil, gas, coal, etc. found beneath property.
The law of capture - ANSWER-Liquid minerals are subject to this law which grants the surface owner only the right to legally drill and remove as much oil and gas as possible.
Air rights - ANSWER-A property owner is entitled to exclusive use of a "reasonable amount" of airspace above the land which can be conveyed separately.
Encumrance - ANSWER-Is a claim or lien on a parcel of real property.
Easement - ANSWER-A right granted for a specific use of the land of another, most often related to rights of way or utility (i.e. gas and water) easements for properties that don't abut a public way.
Easement in gross - ANSWER-This easement doesn't benefit a specific property, but rather a person or business entity, as in to construct and maintain power lines running through several pieces of property.
Express grant - ANSWER-A property owner expressly grants a specific right to use servient land to another.
Express reservation - ANSWER-Rather than granting the right to use, the property owner reserves a specific right to use servient land after they sell the property.
Easement by implication - ANSWER-An implied easement is created when a buyer can only reach their property by crossing land owned by the person from whom they purchased.
Easement by necessity - ANSWER-Granted by court order when a buyer discovers later they can only reach their property by crossing land owned by the person from whom they purchased.
Easement by prescription - ANSWER-Granted when land is used "openly and notoriously" for a period of time.
Encroachment - ANSWER-A situation in which a structure or fixture is built on another person's property or land, and "encroaches" on their property, often due to poor surveying or incorrectly marked boundary lines.
Liens - ANSWER-A form of security granted over an item of property to secure the payment of a debt or obligation.
The Clean Air Act - ANSWER-1970. Aimed at controlling air pollutants produced by industrial companies.
The Clean Water Act - ANSWER-1972. Aimed at controlling water pollution.
National Environmental Policy Act - ANSWER-1969. Made the entity of the property, commercial or private, responsible for ensuring the safety of the environment, including pollution or any chance of accidents.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) - ANSWER-1980. Designed to be a "superfund" that supplies resources to deal with hazardous waste sites, such as oil spills or spilled contaminants.
The Endangered Species Act - ANSWER-1973. Designed to provide protection for wildlife and flora that are at risk of becoming extinct.
The Safe Drinking Water Act - ANSWER-1974. To ensure the safety and quality of America's drinking water.
The Toxic Substances Control Act (TSCA) - ANSWER-1976. Regulates any new or existing chemical substances and its use, and it requires companies to submit notifications and information regarding any new chemical created and added to the TSCA list.
Residential Lead-Based Paint Hazard Reduction Act - ANSWER-1992. Aimed at reducing the number of residences that have lead-based paint.
Alquist-Priolo Earthquake Fault Zoning Act - ANSWER-Helps to control the construction of residential properties or other properties designed for human use within a quarter-mile of the fault.
Seismic Hazards Mapping Act - ANSWER-Applies to any CA property that is located in an area considered a defined seismic hazard zone.
Coastal Zone Conservation Act - ANSWER-Applies to any CA property that is located within a defined coastal zone.
The CA Environmental Quality Act (CEQA) - ANSWER-1970. May require an environmental impact (EIR) before any subdivision is approved.
The Subdivision Map Act - ANSWER-Lays out the conditions for approval of a subdivision map and requires that local governments enact ordinances through which they can directly control the types of subdivisions and the physical improvements required.
Subdivided Lands Law - ANSWER-Real Estate Commissioner administers this law as a set of consumer protections from fraud, misrepresentation and/or deceit in the sale of subdivided property.
Common Interest - ANSWER-Purchasers in a common interest subdivision own or lease a separate lot, unit, or interest, as well as an undivided interest or membership interest in a portion of the common area of the entire project.
Undivided Interest - ANSWER-A partial/fractional interest in an entire parcel of land. The land itself has not been divided, but its ownership has been divided. Creating five or more undivided interest in land for the purpose of sale, lease or financing constitutes a subdivision and requires a public report be issued prior to offering.
Freehold estates - ANSWER-Grant the exclusive right to lawfully own, use and transfer for an indefinite period of time. This type of ownership is inheritable.
Fee simple absolute - ANSWER-The most common type of freehold estate. Rights include: live in, rent or mortgage the property, sell, demolish or convey ownership of the property, build and construct on the property, test for and mine minerals, oil and gas, deny the use of the property to others.
Fee simple defeasible - ANSWER-Same rights as "absolute" but contains one or more conditions that, if violated, would cause the property to revert to the prior owner, such as partitioning the land and selling separate parcels.
Life estates - ANSWER-The owner of the life estate is granted all the rights of ownership for their entire lifespan and can sell or lease their interest. Upon death all interests are terminated.
Non-freehold estates - ANSWER-Is a lease or contract generally granting only possession and use for a period of time.
Estate at will - ANSWER-Also known as a tenancy at will. Either party can terminate the contract at any time. CA law requires a 30-day notice of termination.
Estate for years - ANSWER-Includes fixed start and end dates. The contract period can be as short as hours or days, or as long as 100 years or more.
Estate from period to period - ANSWER-Also known as periodic tenancy or periodic estate. Similar to an estate for years, but automatically renews from period to period unless one of the parties gives notice of termination.
Estate at sufferance - ANSWER-Use and/or occupancy against the owner's wishes, ie.e., a tenant who does not vacate at the end of the lease.
Fee upon condition - ANSWER-The tenant's costs of holding the property can vary and are based on external fluctuations like changes in market rental or leasing rates, increases in property taxes, etc.
Estate/ownership in severalty - ANSWER-Ownership by a single person only
Co-ownership - ANSWER-Ownership by two or more owners. CA recognizes five types.
Joint tenancy - ANSWER-Form of ownership in which two or more parties own an undivided interest in the property. With joint tenancy, the right to survivorship is applicable. A co-owner cannot transfer his ownership interest when he dies. The surviving co-owner will automatically take over the decedent's interest.
Tenancy in common - ANSWER-Form of ownership in which two or more parties possess the property simultaneously. This form of ownership does NOT include a "right of survivorship."
Community property - ANSWER-Form of ownership defined as property owned by spouses or registered domestic partners. All real and personal property acquired during the marriage is considered community property, as is any separate property that is commingled with community property. CA adopted Community Property with Right of Survivorship.
Tenancy in partnership - ANSWER-Form of ownership in which two or more people combine assets and property for business purposes, each sharing in profits and losses. Two classes of partnership are general partnership (association of people or an unincorporated company that create an agreement formed by two or more people where all parties are personally responsible for action, debts and liability of the partnership.), limited partnership (partnership in which at least one person is required to be a general partner assuming the responsibilities of the role. All limited partners have no liability beyond their own investment in the partnership.).
Lien - ANSWER-An encumbrance against real property, generally to guarantee a debt.
Judgment lien - ANSWER-A type of general lien that is meant to secure payment or property that was awarded as a result of a legal judgment or settlement. Judgment liens are valid for 10 years, can be renewed and remain valid even if a property is transferred.
Attachment liens - ANSWER-A type of lien created by one of the actions below: writ of attachment (a court order to seize a portion of an asset in an amount to satisfy a lien), writ of execution (a court order to enforce a judgement, usually to seize and sell an asset to satisfy a judgment).
Mechanic's lien - ANSWER-initiated by a licensed contractor who have supplied labor and/or materials to improve real property. This is a specific lien in that it applies to a specific piece of improved property.
Lis Pendens - ANSWER-A "notice of pending litigation" attached to a piece of real property.
Homestead protection - ANSWER-This law allows individuals to declare a portion of their property as "homestead," offering limited protection in the event of a lien or lawsuit. This declaration exempts a portion of their equity from lawsuit. Amounts: $75,000 for individuals, $100,000 for a head of household, $175,000 if the judgment debtor or spouse who resides in the homestead is at that time of the attempted sale of the homestead any one of the following: 65 years of age or older, physically or mentally disabled, a person 55 years or older; for singles with a gross annual income of not more than $25,000, or married with a combined annual income not more than $35,000 and in both instances the sale is involuntary.
Agent - ANSWER-represents another, called the principal, in dealings with third persons, continuously, without additional authority from transaction to transaction.
Special agent - ANSWER-typically limited to soliciting/negotiating related to a single transaction involving real property or secured by real property and requires new authority for each transaction.
Real estate broker - ANSWER-A special agent authorized to carry out certain defined acts established by the principal.
Real estate salesperson - ANSWER-An agent of the real estate broker.
Fiduciary - ANSWER-a relationship between a principal and agent based on trust and confidence in the integrity and fidelity of another.
Fiduciary duty - ANSWER-the duty to act for the principal's benefit and not for the fiduciary's own personal interest.
Specific fiduciary duties of real estate agents - ANSWER-confidentiality (to all parties in a transaction), full and complete disclosure of material facts (to all parties in a transaction), acting fairly and honestly without fraud or credit (to all parties in a transaction), loyalty (to principal), accounting of funds (to all parties in a transaction), duty to "explain" and "counsel" about disclosures and real estate concepts permitting the principal to make an informed decision (to all parties in a transaction), utmost care (to all parties in a transaction)
Common breaches of fiduciary duties - ANSWER-non-disclosure, misrepresentation, false promise, commingling funds, and secret profit
Types of agency - ANSWER-seller's agent, buyer's agent, facilitator, dual agent, designated seller's or buyer's agent.
single agency - ANSWER-agent works on behalf of either the buyer, seller or other principal
dual agency - ANSWER-agent works on behalf of both the buyer and the seller
agency is terminated by - ANSWER-completion of the objective; time limit expiration; rescission; revocation; death of the principal or broker; property destruction and bankruptcy of either party
torts - ANSWER-private wrongs arising from a breach of duty created by law rather than by contract
fraud v. negligence - ANSWER-Misrepresentation may be either fraudulent (intentionally misleading) or negligent (intentionally or unintentionally obtaining and conveying pertinent facts).
constructive fraud - ANSWER-breach of duty, without fraudulent intent that gains an advantage
disclosure - ANSWER-the real estate broker acting as an agent of the seller and the seller both have a duty to disclose facts materially affecting the value, desirability, or intended use of property.
puffing - ANSWER-Statements by a real estate broker that embellish or exaggerate.
Gratuitous agent - ANSWER-If the real estate broker aids the buyer or seller in the many details of completing a transaction and does not charge for an additional service (which is an expected standard of service), the broker is a gratuitous agent of the buyer or seller for those purposes.
real property - ANSWER-land, that which is affixed to land or appurtenant to land, and that which is immovable by law.
covenants - ANSWER-encumbrances that remain on the land when the property is transferred.
appurtenance - ANSWER-Things that "run with the land." Real property rights to these pieces of property are transferred with the land when property is transferred. For example: stock in a mutual water company or appurtenant easements.
Offsite improvements - ANSWER-These add to the usefulness of a site, but are not located directly on it. For example: streets, curbs, sidewalks, etc.
legal description - ANSWER-Neither a real estate sales contract or even a deed is required to have a "legal description," only an "adequate description." Reasons; 1) it is the MOST adequate description, 2) it is the bet way to distinguish the specific property from all other properties.
easement in gross - ANSWER-An easement that "runs with the person" rather than with the land. The owner of the property has the right to use the easement, but that does not go with future owners. I.e. fishing, pasture, game, etc.
encumbrance - ANSWER-anything that affects or limits the fee simple title to real property
easement - ANSWER-The right to use another's property without payment. It is an interest in real property, but it is not "possessory" interest and therefore is not an estate.
ingress and egress - ANSWER-The right of the easement holder to cross over the property of another to enter or exit from his property.
alienate - ANSWER-transfer the title to real property from one person to another.
involuntarily alienate - ANSWER-could occur by the operation of law as in the case of foreclosure due to nonpayment of taxes or other lawful debts.
judgment lien - ANSWER-created by court decisions. Takes priority before the recording date. Is not effective as a lien until recorded. Is an involuntary lien.
specific lien - ANSWER-attached to a specific property
general lien - ANSWER-attached to a person's name
R-3 designation - ANSWER-Zoning for residential property with more than one unit.
escheat - ANSWER-reverting of property to the state when a person dies intestate (without a will) and the individual has no heirs to receive the property through intestate succession.
police power - ANSWER-a governmental right that would result in the taking of private property for the construction of a highway. To achieve planning goals, local, state, and federal government have the authority to regulate the use of private property provided such right is used only to promote the public health, safety, and general welfare.
injunction - ANSWER-A court order restraining or requiring performance by a party (e.g. performing acts required by property covenants or refraining from acts restricted by such covenants.)
license - ANSWER-A personal, revocable, and unassignable permission given to another, as distinguished from an easement.
writ of execution - ANSWER-an order from the court to an officer, such as a sheriff, directing a sale of property to satisfy a judgment.
State Board of Equalization - ANSWER-A buyer of a business opportunity would purchase a Certificate of Clearance from here. They will issue it if a seller of a business have paid their taxes in full.
Straight Note - ANSWER-Total principal is repaid in one lump sum at maturity. The interest is calculated on the entire original principal amount for the entire time of the loan. interest x period of loan = interest/year --> interest per year x period of loan = total interest
effective interest rate - ANSWER-The percentage of interest that is actually paid by the borrower (or received by the investor) and may reflect periodic compounding. This may include nonrecurring costs such as the discount points and is similar to Annual Percentage Rate (APR).
nominal interest rate - ANSWER-The rate that is stated on the note.
Productivity - ANSWER-Productivity of real estate is the income it produces. Income and value will vary directly and proportionally. Thus each is a function of the other.
Accrued depreciation - ANSWER-Appraisers have the most difficulty assessing the value of accrued depreciation. Depreciation is the difference between the replacement cost new of the improvements and their present value measured at the same date. The older the building, the more difficult it is to determine the replacement cost and depreciation accurately.
Replacement cost - ANSWER-The cost of constructing an improvement with the same utility, but with today's materials and costs. Usually sets the upper limit of value.
Reproduction cost - ANSWER-The cost of constructing (reproducing a replica) an improvement with the material used in the original construction.
In determining the market value of a property the appraiser considers - ANSWER-both tangible and intangible aspects of real property: the land, improvements, any easement rights or burdens or any limitations or privileges applying to the bundle of rights an owner would receive with a given parcel.
Feasibility study for residential development - ANSWER-Must identify all economic factors that must be considered in developing details for a proposed project: target markers, analysis of economic basis, local zoning codes.
Foundation plan - ANSWER-will show all the details of the subfloor, such as the size and dimensions of concrete piers footings and other detailed construction measurements.
Floor plan - ANSWER-a drawing made to scale showing floor dimensions, room sizes, placement of windows doors, partitions, and so forth.
Plot plan - ANSWER-drawing made to scale that reveals lot dimensions, placement of improvements, walkways and driveways, and so forth. Used as a guide to the placement of structures and related improvements in a lot.
Elevation plan - ANSWER-a sketch that shows the exterior of a building as it will appear when completed.
Purpose of the appraisal - ANSWER-determines the type of value being sought.
Function of the appraisal - ANSWER-the reason for which the appraisal is made or intended to be used. It relates to the character of the decision to be [Show Less]