Parties to Real Estate Flashcards
investor
A purchaser who holds a property long-term
on a buy-to-let basis as an income producing
investment. Contrast with a speculator who
buys-to-flip a property for fast profits, rather than
annual income
transaction coordinator
A licensee hired to assist an agent or broker to
process documents, contracts and disclosures in
a real estate file.
lessor
An owner who enters into a lease agreement
with a tenant; a landlord.
independent contractor
A person who acts for another but who sells final
results and whose methods of achieving those
results are not subject to the control of another.
leasing agent
A broker who markets the availability of space to
rent and locates and negotiates the terms of a
lease with suitable tenants.
subagent
An individual who has been delegated agency
duties by another agent of the client, not the
client themselves.
landlord
One who rents his or her property to another. The
lessor under a lease.
lessee
One who contracts to rent, occupy, and use
property under a lease agreement; a tenant.
flipper
A speculator who purchases real estate at
perceived below-market prices and depends
on market momentum to sell at a profit.
finder
An individual who solicits, identifies and refers
potential clients brokers, agents or principals
in exchange for the promise of a fee. [See RPI
form115]
parties (party)
Those entities taking part in a transaction as a
principal, e.g., seller, buyer, or lender in a real
estate transaction.
vendor
a seller
syndication
When a group of investors form a limited liability
company to fund the purchase price and
carrying costs of owning real estate before later
reselling the property.
first-time homebuyer
A buyer of property who has not previously
owned real estate. Typically aged 25-34.
vendee
A purchaser; buyer.
real estate syndicate
An organization of investors usually in the form of a
limited partnership who have joined together for
the purpose of pooling capital for the acquisition
of real property interests. [See RPI Form 371 and
372]
holdover tenant
A tenant who retains possession of the rented
premises after their right of possession has been
terminated.
office manager
A licensee hired by a broker to fulfill the
supervisory responsibility of reviewing documents
and maintaining office files. [See RPI Form 510]
principal
An individual, such as a buyer or seller,
represented by a broker and their agents.
debtor
A person who is in debt; the one owing money
to another.
mortgagee
One to whom a mortgagor gives a mortgage to
secure a loan or performance of an obligation;
a lender or creditor.
grantor
A capable individual conveying an interest in
real estate.
assignor
One who assigns or transfers property
trustee
A party to a trust deed who, as a legal fiction,
holds title to property in trust as security for the
performance of an obligation with the authority
to sell the property or reconvey the trust deed on
instructions from the beneficiary
designated officer
The licensed officer qualifying a corporation for
a corporate broker license.
speculator
A real estate investor who owns property shortterm,
sandwiching themselves between the
seller and end user of the property.
mortgagor
rOne who gives a mortgage on his or her property
to secure a loan or assure performance of an
obligation; a borrower.
tenant
The party who has legal possession and use of
real property belonging to another.
owner-by-foreclosure
The winning bidder at a trustee’s sale who takes
title to the property sold by a trustee’s deed.
heir
One who inherits property at the death of the
owner of the land, if the owner has died without
a will.
beneficiary
The holder of a note secured by a trust deed and
entitled to the performance of the provisions in
the trust deed.
grantee
An individual acquiring an interest in title to real
estate.
trustor
One who borrows money from a trust deed
lender, then deeds the real property securing
the loan to a trustee to be held as security until
trustor has performed the obligation to the lender
under terms of a deed of trust.
bona fide purchaser
A buyer of leased real estate who lacks knowledge
that a lease agreement exists and purchases the
property for valuable consideration or accepts
the real estate as security for a debt.
for-sale-by-owner
A property owner’s method of marketing
property for sale without the use of a CalBRElicensed
broker or agent to locate a buyer.
subprime borrower
A borrower who poses a higher risk of not timely
repaying a loan.