Principles 12 Flashcards
Abandonment
Giving up possession or ownership of property by nonuse, usually accompanied by some affirmative act, such as removing one’s belongings from an apartment.
Civil rights housing act of 2006
As of January 1, 2007, extends protected classifications of the fair employment and housing act (FEHA) to all California laws prohibiting discrimination in housing and housing-related areas, including real estate licensure and mortgage lending, and automatically includes any protected classes that are added to FEHA.
Constructive eviction
Interference by the landlord in a tenant’s legitimate use of leased property, such as by making unwarranted alterations to the property.
Costa-Hawkins Rental Housing Act
California law that preempts rent control for new construction, single family residences, and multiunit buildings in jurisdictions with vacancy control ordinances.
Covenant of quiet enjoyment
Promise of a landlord, implied by law, not to interfere in the possession or use of leased property by the tenant.
Covenant to repair
Express or legally implied obligation of the landlord to make necessary repairs to leased premises.
Escalator clause
Provisions in a lease agreement for an increase in payments based on an increase in an index such as the consumer price index.
Estate at sufferance
The occupancy of a tenant after the lease term expires.
Estate at will
A tenancy in which the tenant’s time of possession is indefinite.
Estate for years
A tenancy for a fixed term
Estate from period to period
Periodic tenancy; a tenancy for a fixed term, automatically renewed for the same term unless owner or tenant gives the other written notice of intention to terminate the tenancy.
Eviction
Dispossession by process of law
Fair and accurate credit transactions act of 2003 (FACTA)
Federal law that amended the fair credit reporting act (FCRA) to create procedures to assist consumers who are victims of identity theft.
Fair Credit Reporting Act (FCRA)
Federal law detailing consumer rights in loan transactions involving credit reports.
Fair employment and housing act (FEHA)
California law that provides protection from harassment or discrimination in employment or housing on the basis of age(40 and over), ancestry, color, religious creed, denial of family and medical care leave, disability (mental and physical) including HIV and AIDS, marital status, medical condition (cancer and genetic characteristics), national origin, race, religion, sex, and sexual orientation.
Fair housing amendments act of 1988
Expanded federal protections against discrimination in provision of housing to include families with children and persons with disabilities.
Gross lease
Provides for the tenant to pay a fixed rental over the lease term, with the landlord paying all expenses of ownership, such as taxes, assessments, and insurance.
Holdover tenancy
Possession of property by a tenant who remains in possession after the expiration or termination of the lease term.
Landlord
- Lessor
- one who leases their property to another
Lease
A contract between landlord and tenant, conveying and setting forth the conditions of occupancy and use of the property by the tenant.
Lease assignment
Transfer of leasehold interest by tenant to another party, with first tenant secondarily liable for lease obligations unless landlord agrees to a release of first tenant from those responsibilities.
Leasehold
Interest in land or an estate which gives right of use for a certain length of time.
Lease option
A lease accompanied by the right to purchase the leased property within a specified period for a specified or determinable price.
Lessee
One who leases property owned by someone else.
Lessor
Landlord or property owner
Mobilehome residency law (MRL)
Portion of California civil code that regulates manufactured (mobile) home rental agreements, charges, grounds for eviction, and eviction procedures.
Net lease
A specified net income to the landlord, with the tenant paying that amount plus all operating and other property expenses, such as taxes, assessments, and insurance.
Notice to pay or quit
Notice by a landlord to a tenant who has defaulted in payment of rent that the amount owed must be paid within three days of the notice or the tenant must vacate and surrender possession of the premises.
Percentage lease
Provides for rent as a percentage of the tenants’s gross income, usually with a minimum base amount; the percentage may decrease as the tenant’s income increases.
Periodic tenancy
Same as estate from period to period
Property management
A branch of the real estate business involving the marketing, operation, maintenance, and other day-to-day requirements of rental properties by an individual or a firm acting as agent of the owner.
Rent control
A regulation imposed by local governing body as means of protecting tenants from relatively high rent increases over the occupancy period of a lease.
Resident apartment manager
Apartment manager who resides in one of the units; required of every California apartment building having at least 16 units.
Right of entry
Right of the landlord to enter leased premises in certain circumstances.
Sandwich lease
A leasehold interest between the primary lease and the operating lease.
Security deposit
An amount paid at the start of the lease term and retained by the landlord until the tenant vacates the premises, it’s for reasonable costs of repairs or cleaning for the tenant’s use of the premises.
Unlawful detainer
Legal action that may be brought to evict a tenant who is in unlawful possession of leased premises.
Unruh civil rights act
California law that prohibits discrimination against persons in one of the identified groups in accommodations and business establishments.
Untentable dwelling
Property lacking one or more necessary utilities, such as water, or in such poor condition that it falls below minimum property standards; uninhabitable.
Warranty habitability
Legally implied obligation of a landlord to meet minimal housing and building standards.
Price gouging
- Raising the price of goods and services by 10% after a state of emergency or after a local emergency like earthquake, storms, fire, etc.
- penal code 396 makes it a misdemeanor
- up to 1 year in jail and a fine of up to 10,000 if convicted
Landlord has the right of entry when….
- an emergency
- when tenant has abandoned the premise
- Pursuant to a court order
- when landlord needs to make repairs or services for the premise
- landlord can show prospective tenants etc.
Anticipation
Expectation that property will offer future benefits, which tends to increase present value
Appraisal
- An estimate of a property’s monetary value on the open market
- an estimate of a property’s type and condition, it’s utility for a given purpose, or its highest and best use
Arm’s-length transaction
- A transaction in which neither party acts under duress and both have full knowledge of the property’s assets and defects
- property involved has been on the market a reasonable length of time, there are no unusual circumstances, and the price represents the normal consideration for the property sold, without unusual financing terms.
Balance
The combination of land uses that results in the highest property values overall
Broker’s price opinion (BPO)
An estimate of property value that is not an appraisal but is developed by a real estate broker based on comparable sales in the area.
Capitalization rate “cap”
The rate of interest that is considered a reasonable return on investment, used in the process of determining value based on net operating income; the yield necessary to attract investment.
Change
Effect on property value of constantly varying physical, economic, social, and political forces.
Comparative market analysis (CMA)
Informal estimate of market value performed by a real estate agent for either seller or buyer, utilizing the sales history nearby properties; usually expressed as a range of values that includes the probable market value of the subject property.
Comps
Comparable properties that are used in an appraisal to determine the value of the property that is the subject of the appraisal.
Principles of Conformity
Holds that property values are maximized when buildings are similar in design, construction, and age, particularly in residential neighborhoods.
Contract rent
The rent agreed to by lessor and lessee
Principles of Contribution
A component part of a property is valued in proportion to its contribution to the value of the entire property, regardless of its separate actual cost.
Principle of competition
Business profits encourage competition, which ultimately may reduce profits for any one business.
Cost approach
Appraisal method in which site value is added to the present reproduction or replacement cost of all property improvements, less depreciation, to determine market value.
Decline
Period in which property loses value due to lack of maintenance
Depreciation
- Decrease in value of an asset that is allowed in computing property value for tax purposes
- in appraising, a loss in the value of a property improvements from any cause
Effective gross income
-Property income from all sources, less allowance for vacancy and collection losses
