Realestate Test Flashcards
bundle of rights
- possession
- enjoyment of the property
- control the property’s use
- exclude others
- transfer ownership
Fixtures
- Method of attachment
- Adaptability
- Relationship of the parties
- Intention of the party who affixed the item
- Agreements between the parties relating to the item
Riparian Rights
land borders on a stream
Littoral Rights
land borders on a lake or the sea
Accretion
addition of property due to nature forces
Alluvium
gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of water
Avulsion
sudden loss of land by the action of water as in the sudden course change of a river
Erosion
wearing away of land by the act of water, wind or glacial ice
Section Numbering
612
1824
3036
plat map, lot and block
plat map is a drawing showing how a specific parcel of land has been divided
In larger subdivisions, the subdivision will be broken into blocks that will then be broken into lots.
A less than freehold estate
right to use the real property of another
fee simple estate / fee simple absolute estate
- duration must be indefinite
- freely inheritable
- freely transferable.
- no qualifications - absolute
Life estates
limited in duration to the life of its owner or to the life or lives of one or more other specified persons.
estate in reversion.
Revert back to the original owner.
estate in remainder.
Go to someone other than the original grantor
life estate will
A life estate may not be willed by the owner of the life estate.
Estate for Years
Less than Freehold Estates, The maximum term permitted in a city or town of an estate for years is 99 years. The maximum term permitted for an agricultural lease is 51 years.
Periodic Tenancy
Less than Freehold Estates, month to month or a year to year. indefinite duration. automatically renews.
Estate at Sufferance
Less than Freehold Estates, the right of a tenant to possess a property is terminated but the tenant does not vacate the property.
Estate at Will
can be terminated at will be either party with 30 days notice
Severalty Ownership
property is owned by one person
Tenancy in Common
No TTIP
Title different time, Title different deeds, different interest, undivided possession.
Joint Tenancy
TTIP: time, title, interest, possession
5. Property cannot be willed -
All four of the unities TTIP (time, title, interest, possession) must exist or a joint tenancy is not established.
Ways to acquire and transfer title (will and succession)
- Transfer by deed
- Transfer by will (testate)
- Transfer by succession ( intestate)
- Occupancy (adverse possession)
- Accession (by man made or natural causes)
- Patent
- Involuntary Transfers
Deed Types
Grant Deed - most common. two warranties: that the grantor has right to transfer the title to another AND nothing against the title exists that was not disclosed to the grantee.
Quitclaim Deed - clear a cloud on the title.
Warranty Deed - not used in CA. Policy of Title Insurance has replaced.
Reconveyance Deed - Trustee reconveys title to the Trustor (borrower)
Sheriff’s Deed - court required sale
Trustee’s Deed - trust deed foreclosure sale
valid deed
- It must be in writing
- It must Identify the parties (the grantor and the grantee).
- It must be signed by a competent grantor
- It must have a living grantee.
- It must contain words of conveyance. This clause is an action clause which states that title is being moved from grantor to grantee.
- It must include an accurate and adequate description of the property being conveyed.
- delivery and acceptance
deed acknowledgment
acknowledgment is not required for a valid deed. However, acknowledgment is necessary for the deed to be recorded.
deed legal description
without a legal description the transaction would not be insurable or marketable
Habendum Clause
“to have and to hold” - grants fee simple absolute title.
Exclusions (exceptions) and Reservations
withholds part of the property from the conveyance.
CC&Rs
Covenants, Conditions and Restrictions
Notary Public
authorized by the California Secretary of State to witness the acknowledgement of a document.
Attest
affirm something to be true
Verification
sworn statement as to the correctness of the instrument
die testate
divisor
testator
legatee
dies with a will
divisor (deceased) -> will maker (testator) -> legatee (recipient)
Probate
legal process dealing with assets, debts,
Transfer by succession (intestate)
individual dies without a will
public grant
transfer of land owned by a government entity to a private party
Involuntary Transfers of Title
Dedication, Eminent Domain, Escheat
encumbrance
monetarily burdens (financial encumbrance, ex. mortgage) or limits the use (non-financial)
lender/property owner
mortgagee/mortgagor
Trust Deed
The trust deed is used to secure a debt, evidence by a promissory note.
Easement appurtenant
Right to use land. dominant tenement (right) and servient tenement (burden). affirmative or negative easement
Easement in gross
benifits a person/company, so just a servient tenement (burden). Ex. Utilities
Creation of Easements
- Grant or Reservation
- Intent or Necessity
- By prescription (like adverse, no taxes)
- By implication
- By reference to a recorded plat
- By dedication
- By condemnation
Terminating an Easement
- By release of the easement by the dominant owner
- merging dominant and servient lands
- By abandonment or non use of the easement
- By the purpose ceasing to exist
- By prescription?
- By expiration of the time for which the easement was created
License
similar to a personal easement in gross. revocable and usually oral. The right granted in a license is simply more limited than a personal easement.
rights of the government
- Right of taxation
- Eminent Domain
- Land Use Controls
- Environmental laws and regulations
Taxes
Tax year July 1 - June 30
Eminent Domain
government right to acquire title to private property for public use. condemnation. Paid at fair market value.
Land Use Control
Police power gives the government the right to regulate the use of private property to protect the healthy, safety, morals and welfare of the public.
Comprehensive Plan / general plan
made by planning commission. all development and all land use regulation, such as zoning and
subdivision laws, must conform to the plan.
Zoning
Zoning ordinance defines a particular land use activity such as residential, commercial,
industrial, or agricultural, in detail.
zoning Nonconforming use
new ordinance does not agree with land uses already in existence.
zoning Variance
small exception to the permitted use
Conditional use
zoning authority issues conditional use permits allowing a limited number of these uses to operate
in compliance with specified conditions
Subdivided Lands Act
California Real Estate Commissioner. dividing of land into 5 or more parcels with the intent to sell. No sale until Final Commissioner’s Public Report.
Subdivision Map Act
subdivider must file a subdivision map
Age of contracting party
18+, no unmarried minor for property sale
Band of Investment:
cap rate using a weighted average of select rates.
Base/Meridian
east/west, north/south
Bridge Loan
used between home building and home 30 year finance
Boot
Unlike property used to equalize equities in an exchange that will trigger tax on the amount of the boot.
Blockbusting:
exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing
Blanket Mortgage
mortgage covering more than one property.
Bill of Sale
instrument by which one transfers personal property.
Basis
Cost basis is the dollar amount assigned to property at the time of acquisition
Building Code
control the construction of buildings, including design, materials used, construction, use, and repair. State’s police power.
Cal-Vet Program
State Department of Veterans Affairs program. Purchases
by eligible California veterans. Land Contract with the State as Vendor and Vet as the Vendee.
Call:
demand payment due to default.
Caveat Emptor
Let the buyer beware
Chain of Title
chronological order of conveying of a parcel of land, starting from original owner.
Chattel
Personal property.
Capital Asset
Assets of a permanent nature - land, buildings,
machinery and equipment
Closing Statement
required computation of financial adjustment between buyer and seller as of the day of closing. Hud-1
REALTOR Code of Ethics
look up
Color of Title
That which appears to be good title but which is not title in fact.
Community Property
Property acquired by husband and/or wife during a marriage
Comparative Analysis
comparison of similar properties to a subject property for the purpose of evaluating market value
Condemnation
taking of private property for public use without the consent of the owner, but only upon payment of just compensation.
Condition Precedent
unless and until a given event occurs, the full effect of a contract or transfer will not take place
Condition Subsequent
estate is defeated or the contract extinguished through the failure or non-performance of the condition.
Conditional Estate / Fee Simple Defeasible
estate granted subject to a condition subsequent
Confiscation
Seizing of property without compensation
Construction Loan
Short term financing of real estate construction
Constructive Eviction
Landlord preventing quiet enjoyment. such as turning off the tenant’s water or other essential service.
Constructive Fraud
breach of duty, as by a person in a fiduciary capacity,
without an actual fraudulent intent
Constructive Notice
Notice of the condition of title to real property given by the official records
Contract for Deed / land sale contract
the seller has legal title until paid in full. The buyer only
has equitable title.
