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111 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Accretion |
Physical addition to property by natural forces |
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Accession |
Physical addition to property through man made efforts or by natural forces. |
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Adobe |
Also known as clay. Naturally occurring heavy metal which readily cracks and is composed of fine grained metals |
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Alienation |
The transfer of an interest in property to another: the transfer of property or possession of land or other things from one person to another. |
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Alkaline |
A soil with ph level above 7. |
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Alluvium |
Refers to the boundary of a property that has changed due to the relocation of a river or stream. |
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Appropriation |
The act of taking something for one's own use, such as water from a stream. |
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Assemblage |
The combining of land parcels to create a value higher than the sum of parts. |
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Avulsion |
The rapid increase of the earth on a shore of an ocean or bank of a stream resulting from the action of water. |
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Deciduous |
A tree that loses its leaves each year. |
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Expansive |
Soils that expand when water is added and shrink when they dry out. Such continuous changes can cause property built on this soil to settle unevenly and crack. |
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Reliction |
Gradual recession of water leaving land permanently uncovered. |
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Littoral Rights |
Refers to property rights of a property bordering a pond, lake or ocean |
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Prescriptive |
A right of access gained through use. |
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Appurtenant |
Right belonging to a property and pass with the transfer of property. Examples: right of way easements, water rights |
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Adverse possession |
A method of acquiring title to real property by a person other than the owner of record through open possession of property for 5 years and payment of property taxes. |
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Easement |
A right held by one property owner to use the land of another for a specific purpose such as ingress and egress to the owners property. |
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Easement in gross |
An easement which belongs to an individual and is not appurtenant to or transferred with the property. |
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Eminent domain |
The right of the government to take private property for public use. |
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Encroachment |
An improvement on one parcel which extends onto real estate belonging to another. |
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Encumbrance |
Any claim or lien on a parcel of real estate: such as trust deeds, CC&Rs, easements, taxes or assessments. |
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Escheat |
The riverting of property to the State when heirs capable of inheriting are lacking. |
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Estate |
The interest a person may hold in real property as defined by statute. |
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Hypothecate |
To pledge a thing as security without the necessity of giving up possession of it. To mortgage a property. |
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Life Estate |
An inheritance held in a parcel of real estate lasting the lifetime of the named life. |
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Lis Pendens |
A notice recorded for the purpose of warning all persons that the title or right to possession of the described real property is in litigation. |
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Police Power |
The constitutional source of the state or local government's authority to act. |
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Reversion |
The interest which a person has in land or other property which is received on termination of the preceding estate. |
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Riparian rights |
The right of a real estate owner to take surface water from a running water source contiguous to their land. |
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Section |
A portion of land established by a government survey which contains 640 acres and is one mile square. |
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Subdivided land laws |
Government regulations that empower the Real Estate Commissioner to approve a public report for the sale of property divided and developed by land owners. |
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Subdivision map act |
A California subdivision law stating conditions for the approval of a subdivision map and requiring local government's to enact ordinances directly controlling the types of subdivision projects permitted and the physical improvements to be installed. |
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Tenement |
A freehold interest in land and things immovable located on the land. |
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Township |
In the survey of public lands of the US, a territorial subdivisions 6 miles long, 6 miles wide and containing 36 sections, each one mile square, located between 2 range lines and 2 township lines. |
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Zoning |
Building and land restrictions enacted by local policy makers to ensure a consistent flow of new improvements to meet the demand of population growth. |
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Lessor |
The owner of real estate. |
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Lessee |
The tenant |
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Quiet title action |
A court action to establish title to a property or remove a cloud from title. |
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What are the elements of value? |
Demand (anybody want it) , Utility (can I use it?) , Scarcity (is there a lot of it?) , and Transferability (can I sell it) . DUST or STUD |
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What is an exclusive right to sell listing described as? |
Express, bilateral, excutory, employment contract. (Express agreement, and is bi-lateral - (a promise for a promise.) The listing will not be fully executed until the property is sold and escrow closed. Thus the question is also excutory. |
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How wide are typical earthquake fault zones. |
.25 miles wide |
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What is a gore? |
A triangle piece of land. |
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The relationship between the thing desired and the potential purchaser could be described as? |
Value is the relationship. (Cost is simply the price.) |
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The Real Estate Law is part of? |
The Business and Professions Code |
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Real Estate Settlement Procedures Act (RESPA) apply to what type of property? |
One to four unit residences |
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When a salesperson's employing broker died, the salesperson needs to? |
Stop all real estate activities until they find a new broker. |
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Blind Ad |
Marketing materials that fail to alert the reader to the fact the address was placed by a licensed real estate agent or broker. |
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Company Dollar |
The brokers share of commission received. |
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What are the forces that influence value? |
Physical, Economic, Government and Social. (PEGS) |
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What is a " red flag?" |
Something that alerts an agent of a previously unknown potential physical problem with a property. |
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The real estate disclosure laws which became effective on January 1. 1988 refers to: |
Agency relationships. |
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What are the four government powers? |
P= police power E= eminent domain T= taxes E= escheat These are rights that an individual would not have |
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Zoning for land use is generally divided into 5 areas |
Residential Commercial Agriculture Industrial Special use property I SCAR |
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How is a Multi-family unit zoned?
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Zoned R-3
R = Residential |
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What are examples of Special purpose properties? |
Properties that are a benefit to the public: schools, hospitals, police stations |
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Down zoning |
A change in zoning to permit less intensive developments than currently permitted. For example going from commercial to residential. |
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Cluster zoning |
Allows for planned unit developments or PUDS |
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Zoning ordinances are a set of laws which control the: |
Height of buildings Setbacks Density Floor area ratio Buffers Buffer zones Variances |
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Setback |
Distance from the edge of the road or sidewalk to the structure that was built. A setback can also be from the center of the road. |
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Density |
Usually associated with subdivisions, restricting the number of houses per acre that may be built within the subdivision. |
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Floor area ratio |
The ratio of square footage to the land area. The floor area ratio can be used in zoning to limit the amount of construction in a certain area. |
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Buffer |
An area between two lots, such as a fence, a wall or a row of trees. A buffer zone is a space of land between two use districts like a park, playground or a highway. |
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Variance |
Exception that is granted from the zoning rules. A variance is granted when the situation is exceptional and if granting that variance will not affect the rest of the community. |
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Non-conforming use |
Allows an owner to continue a land use that existed previously but no longer conforms to that zoning. |
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Performance standards |
Regulates noise and air pollution for residential, commercial and industrial properties. |
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Appraisal |
Is an unbiased or objective opinion of value. |
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3 approaches to appraising |
Market Data Approach Income approach Cost approach |
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Market Data approach/comparison approach |
The process of estimating the value of property through the examination and comparison of actual sales of comparable properties. Best used to find values of houses and vacant lots. |
When comparing two properties you need to deduct for features of the comparable..such as a pool. |
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What type of appraising is used to establish rent schedules? |
Market Data approach. (Just ask the neighbors what they are being charged.)
The basis of the Market Data approach is the Principal of Substitution. |
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Capitalization/income approach |
Converts income into value.
A property that can prove to bring in more income, will increase in value.
This is most appropriate for a shopping center. Hardest part is determining the Capitalization rate or cap rate. |
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What methods are used to determine the Capitalization rate? |
Market Data method Band of investment method Summation method |
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What is the cap rate directly related to? |
Risk. A post office would have a lower capitalization rate because it is lower risk. As compared to a Hardware store would have a higher cap rate because it is a higher risk. |
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Cost or replacement approach |
The process of estimating the value of a property by adding to the estimated land value the appraisers estimate of the replacement cost of the building, less depreciation. Basically, how much would it cost for a brand new replacement. Used for libraries, schools and police stations. |
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What are the methods for estimating the cost of replacement? |
Unit in place: which calculated the cost of single units installed. Square footage method: which utilizes exterior dimensions to calculate the cost per square foot. Quantity survey method: which calculates the cost of labor and materials to construct each component of a building, it is very accurate but time consuming. |
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Gross rent multipliers or GRM |
Price divided rent.
Numbers from 5-20= annual GRM 80-120=monthly GRM
$100,000 property divided by $10,000 annually in rent would give you an annual GRM of 10.
$100,000 property divided by $1,000 monthly in rent would give you a monthly GRM of 100.
If you are given a monthly rent amount and an annual GRM then multiply that monthly number by 12, because you always want to use annual figures whenever possible. |
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Progression and regression in appraising terms. |
Property values will increase if your home is in a neighborhood of more expensive homes and decrease if in an area of less expensive homes.
For example: (regression) a large home in a less desirable area may be affordable, but it's property value will decline due to being in that neighborhood. (progression) However a smaller home in a more desirable area will increase just because it is surrounded by nicer homes. |
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Economic Obsolescence |
Form of depreciation caused by factors outside the property lines. Such as abandoned buildings, zoning changes and high crime rates. |
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Puffing |
An exaggeration of fact. Usually found in print. It is a matter of opinion rather than a fact. It is not illegal as long as the statements are not blantedly false. |
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Ernest money deposit |
Is what says you are serious about your efforts to purchase the house.
If the offer is accepted you go into escrow. If the house turns out to not be as promised the escrow can be called off.
Ernest money deposit serves as as a proposal with the money being the ring. When couple says I do the escrow is closed. |
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Severance |
Changing an item from real property to personal property by detaching it from the land. |
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Annexation |
Addition to property by attaching a smaller item to a larger property. Attaching personal property to real property such as a sink to plumbing outlet. |
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Appurtenances |
Belonging to the land and transfers with the land either attached or not. Easements on land Fixtures Barn to a house |
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Fixtures |
Personal property that becomes real property when attached in a permanent manner and becomes incorporated into the land. Example: a chandelier Personal property goes with the person and real property goes with the real estate. |
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Trade fixtures |
Used in the operation of a business and remain the tenants of the property.
Example: dental chair |
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Emblements |
Annual crops produced by cultivation legally belonging to the tenant. |
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The Doctrine of Emblements |
Guarantees the farmers right to reap and carry away the fruits of his labor even if he loses title to the land of which they were grown. |
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OR and EE rule |
OR is the giver and EE receives.
grantOR, lessOR, optionOR, vendOR makes me the propetOR for your pleasOR
Give, Convey, Sell = OR
grantEE, lessEE, vendEE gives mEE propertEE which makes me hapEE.
Receive, Purchase, Acquire = EE
Vendor sells to a Vendee Grantor conveys property to a GrantEE.
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Mortgage |
A pledge of property to the lender as security of payment of debt. The mortgagor is the borrower giving pledge to the lender. |
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What is the main step in securing a mortgage? |
Qualifying the buyer which includes credit report and employment history.
A debt income ratio: a loan qualifying tool. How much are you in debt and/or a good risk.
Property must be appraised as it is collateral for the loan. |
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What is a note? |
A borrower's promise to repay. The borrower will sign a note ( a note is an evidence of debt, stating the amount borrowed, the interest rate and the loan terms. |
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The rights the borrow gives the lender in a mortgage document is determined by? |
By State law through whichever one of the three theory's listed below.
Lien theory:
Title theory:
Intermediate theory: |
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Judicial sale |
A sale made under court order rather than a voluntary sale by the owner or someone appointed by the owner. |
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Title theory |
Title theory: the lender holds the title to the property. Therefore the law interprets the lender as owning the property until the last payment is made. A trust deeds is used in most title theory states. |
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Lien theory |
gives the lender a lien interest in the property. If borrower defaults the lender will foreclose through a judicial sale. |
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Intermediate theory |
Based on title theory, the borrower retains title to the property and the mortgage is the lien. If a borrower defaults on a loan title is conveyed to the lender. Intermediate theory makes the mortgagee go through foreclosure process before the property can be sold to repay the debt. |
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Severalty |
Is sole or independent ownership by a person or entity. That means only one name is on the deed. |
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Concurrent estate |
Describes the various ways in which property can be owned by more than one person.
Ownership is assumed to be a tenancy in common unless stated otherwise. |
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Tenancy in common |
Most common type of ownership. A form of ownership of title to real estate by two or more persons, in which, although they have a unity of possession, they each have separate and distinct titles. In the event of death his or her title passes on to their estate or heirs. |
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Joint tenancy |
A form of ownership in which the tenants own a property equally. If one dies, the other automatically inherits the entire property. This is known as the right of survivorship. Thus it cannot be willed and probate is not necessary. If a joint tenant dies owing debt, the surviving joint tenants are free of the insecured debts. A joint tenant has the right to sell, mortgage or transfer the interest without the consent of other joint tenants. |
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What 4 things are needed to create a joint tenancy? |
Possession Interest Time-unity Title
If any one of these four unities is destroyed joint tenancy would be terminated. |
TTIP |
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Tenant in common |
Co-ownership of real estate by two or more persons who hold equal or unequal undivided interests, without the right of survivorship. |
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Community property |
Property acquired by husband and wife during marriage. Community property is owned by both regardless of whose name is on the title. |
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Separate property |
Property acquired before marriage or received by gift or inheritance. Separate property can be transferred without the non-owning spouses consent or signature. |
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Partition |
Court action to divide ownership interest if owners cannot reach an agreement.
Partitions can be used by tenants in common or joint tenants to dissolve ownership interest. |
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Testamentary trust |
Created by a will, and becomes effective upon the death of the testator. Many times parents with minor children will set this up in the event both parents passed simultaneously. |
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Testator |
One who makes a will. |
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Living trust-inter vivos |
Effective during the life of the trustor. |
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What is the difference between a living trust and a living will? |
A living will is a document that allows a person to refuse medical treatment.
A living trust-inter vivos is a title holding arrangement used as a vesting by a property owner for probate avoidance on death. |
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Trustor |
One who borrows money secured by a trust deeds and authorizes a trustee to act on their behalf. |
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What can be transferred into a Land trust |
Only real estate. Trustee holds legal and equitable title to real estate. The beneficiary retains the power to direct the trustee, manage the property and draw income from the trust. |
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Fixture |
Method of attachment Adaptability Relationship Intention Agreement MARIA |
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