Parties to Real Estate

Question 1

investor

Answer 1

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

Question 2

transaction coordinator

Answer 2

A licensee hired to assist an agent or broker to
process documents, contracts and disclosures in
a real estate file.

Question 3

lessor

Answer 3

An owner who enters into a lease agreement

with a tenant; a landlord.

Question 4

independent contractor

Answer 4

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.

Question 5

leasing agent

Answer 5

A broker who markets the availability of space to
rent and locates and negotiates the terms of a
lease with suitable tenants.

Question 6

subagent

Answer 6

An individual who has been delegated agency
duties by another agent of the client, not the
client themselves.

Question 7

landlord

Answer 7

One who rents his or her property to another. The

lessor under a lease.

Question 8

lessee

Answer 8

One who contracts to rent, occupy, and use

property under a lease agreement; a tenant.

Question 9

flipper

Answer 9

A speculator who purchases real estate at
perceived below-market prices and depends
on market momentum to sell at a profit.

Question 10

finder

Answer 10

An individual who solicits, identifies and refers
potential clients brokers, agents or principals
in exchange for the promise of a fee. [See RPI
form115]

Question 11

parties (party)

Answer 11

Those entities taking part in a transaction as a
principal, e.g., seller, buyer, or lender in a real
estate transaction.

Question 12

vendor

Answer 12

a seller

Question 13

syndication

Answer 13

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.

Question 14

first-time homebuyer

Answer 14

A buyer of property who has not previously

owned real estate. Typically aged 25-34.

Question 15

vendee

Answer 15

A purchaser; buyer.

Question 16

real estate syndicate

Answer 16

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]

Question 17

holdover tenant

Answer 17

A tenant who retains possession of the rented
premises after their right of possession has been
terminated.

Question 18

office manager

Answer 18

A licensee hired by a broker to fulfill the
supervisory responsibility of reviewing documents
and maintaining office files. [See RPI Form 510]

Question 19

principal

Answer 19

An individual, such as a buyer or seller,

represented by a broker and their agents.

Question 20

debtor

Answer 20

A person who is in debt; the one owing money

to another.

Question 21

mortgagee

Answer 21

One to whom a mortgagor gives a mortgage to
secure a loan or performance of an obligation;
a lender or creditor.

Question 22

grantor

Answer 22

A capable individual conveying an interest in

real estate.

Question 23

assignor

Answer 23

One who assigns or transfers property

Question 24

trustee

Answer 24

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

Question 25

designated officer

Answer 25

The licensed officer qualifying a corporation for

a corporate broker license.

Question 26

speculator

Answer 26

A real estate investor who owns property shortterm,
sandwiching themselves between the
seller and end user of the property.

Question 27

mortgagor

Answer 27

rOne who gives a mortgage on his or her property
to secure a loan or assure performance of an
obligation; a borrower.

Question 28

tenant

Answer 28

The party who has legal possession and use of

real property belonging to another.

Question 29

owner-by-foreclosure

Answer 29

The winning bidder at a trustee’s sale who takes

title to the property sold by a trustee’s deed.

Question 30

heir

Answer 30

One who inherits property at the death of the
owner of the land, if the owner has died without
a will.

Question 31

beneficiary

Answer 31

The holder of a note secured by a trust deed and
entitled to the performance of the provisions in
the trust deed.

Question 32

grantee

Answer 32

An individual acquiring an interest in title to real

estate.

Question 33

trustor

Answer 33

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.

Question 34

bona fide purchaser

Answer 34

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.

Question 35

for-sale-by-owner

Answer 35

A property owner’s method of marketing
property for sale without the use of a CalBRElicensed
broker or agent to locate a buyer.

Question 36

subprime borrower

Answer 36

A borrower who poses a higher risk of not timely

repaying a loan.