Practice

Question 1

Probate Sale

Answer 1

A court approved sale of the property of a deceased person

Question 2

Graduated Lease

Answer 2

A lease calling for periodic increases in the rental payments; sometimes called a stair-step lease

Question 3

Eviction

Answer 3

The legal process of removing a tenant from the premise for some breach of the lease

Question 4

Stigmatized Property

Answer 4

Psychologically-impacted property that buyers or tenants may avoid, for reasons that are unrelated to its physical conditions or features

Question 5

Estate for Years

Answer 5

A leasehold estate with a definite end date; must be renegotiated; commonly used for commercial leases

Question 6

Home Inspection

Answer 6

A home inspector examines the readily accessible physical structure, systems, and condition of a home and describes them in a written report

Question 7

Net Lease

Answer 7

A lease where the tenant pays such costs as taxes, insurance and repairs, as well as a set amount for rent. A triple net lease in one in which the tenant pays all expenses of operating the property as well as a set amount for rent.

Question 8

Residential Rental Property

Answer 8

Property from which 80% or more of the gross rental income is income from dwelling units

Question 9

Surrender

Answer 9

The voluntary giving up of a lease

Question 10

Sublease

Answer 10

Transfer less that the entire leasehold, with the original lessee being primarily liable

Question 11

Homeowners’ Association

Answer 11

A group of property owners in a common interest development that manages common areas, collects dues, and establishes property standards

Question 12

Earnest Money

Answer 12

Down payment made by a purchaser of real estate as evidence of good faith; or a deposit or partial payment

Question 13

Brokerage

Answer 13

The occupation of a broker. A real estate brokerage is the business of selling real estate through a broker who negotiates the sale for a commission

Question 14

Retaliatory Eviction

Answer 14

An act whereby a landlord evicts a tenant in response to some complaint made by the tenant

Question 15

Axial Growth

Answer 15

City growth that occurs outward along main transportation routes; usually star shaped

Question 16

Unlawful Detainer Action

Answer 16

A lawsuit filed with the court against a tenant who remains in unlawful possession of rental property after breaching the terms of a lawful lease

Question 17

Percentage Lease

Answer 17

A lease in which the landlord receives a percentage of the gross sales as part or all of the rental payment

Question 18

Manufactured Home

Answer 18

A home built in a factory after June 15, 1976 and must conform to the federal Manufactured Home Construction and Safety Standards

Question 19

Divided Interest

Answer 19

An interest in various parts of a whole property, such as the interest of the fee owner, lessee, or mortgage

Question 20

Goodwill

Answer 20

An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage

Question 21

Curb Appeal

Answer 21

The impression gained, whether good or bad, of a property when it is first seen, usually from the street while driving by

Question 22

Steering

Answer 22

The illegal practice of only showing clients property in certain areas

Question 23

Business Opportunity

Answer 23

Any type of business for lease or sale

Question 24

CC&Rs

Answer 24

Restrictions are placed on certain types of real property and limit the activities of owners

Question 25

Sandwich Lease

Answer 25

A lease agreement created when a tenant sublets the property to another person, thus creating a sublessor-sublessee relationship. The person in the "sandwich” is a lessee to one party and a lessor to another

Question 26

Redlining

Answer 26

The use of a property’s location to deny financing

Question 27

Retrofit

Answer 27

Modification of an existing building or facility to include new systems or components

Question 28

Leasehold or Lease

Answer 28

An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time

Question 29

Lessor

Answer 29

Landlord; property owner

Question 30

Tenant

Answer 30

A renter

Question 31

Estate at Will

Answer 31

Possession of real estate belonging to another, with their permission, for an indefinite period of time; can be terminated by either the lessor or lessee; either party must give 30 days notice before ending the tenancy

Question 32

Landlord

Answer 32

Lessor; property owner

Question 33

Mobile Home

Answer 33

Lessor; property owner

Question 34

Working Capital

Answer 34

Liquid assets available for the conduct of daily business

Question 35

Multiple Listing Service

Answer 35

A cooperative listing service conducted by a group of brokers for the purpose of marketing listings

Question 36

Bulk Transfer Law

Answer 36

The law concerning the transfer in bulk (not a sale in the ordinary course of the seller's business)

Question 37

Assignee

Answer 37

Party to whom a lease is assigned or transferred

Question 38

Trade Association

Answer 38

A voluntary, nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to aid in the industry problems, promote its progress, and enhance its service

Question 39

Rent

Answer 39

Consideration paid for the use of a property

Question 40

Demise

Answer 40

A conveyance of an estate in real property to someone for a certain length of time, as in a lease

Question 41

Writ of Possession

Answer 41

A court order directing the sheriff to remove the tenant and his or her possessions within five days

Question 42

Lessee

Answer 42

Tenant; renter

Question 43

Blind Advertising

Answer 43

Advertising that fails to disclose that the party is a licensee acting as an agent

Question 44

Indirect Costs

Answer 44

Development costs not related to the land or structure, such as legal and architectural fees, financing, and insurance costs during construction

Question 45

Estate from Period to Period

Answer 45

A leasehold estate that is automatically renewed for the same term; a conveyance for an indefinite period of time; does not need to be renegotiated upon each renewal; commonly a month to month rental

Question 46

Blockbusting

Answer 46

Causing panic selling by telling people that values in the neighborhood will decline because of a specific event, such as the purchase of homes by minorities

Question 47

Revisionary Rights

Answer 47

The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession after the lease's term has expired

Question 48

Estate at Sufferance

Answer 48

A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal