Unit Reviews Flashcards
List two ways the government can acquire privately held land:
_________________
_________________
escheat
eminent domain
Public control of land use by the government is known as ______ power.
police power
A right of use or enjoyment that one person has in the lands of another for a specific purpose is an ________.
easement
A tenant’s right to possess real estate for the term of a lease is a _________ estate.
leasehold estate
A tree limb that overhangs into a neighbor’s yard is an example of an ____________.
encroachment
An easement is not _________ , but a license is.
revocable
A claim that one person has against the land of another to secure payment of a debt is a ____.
lien
A person who has not been paid for work performed on real property may record a ______________.
mechanic’s lien
A party wall or a shared driveway is an example of an easement ___________.
appurtenant
The right of an owner to occupy a parcel of real estate forever is a ___________________.
fee simple absolute
The type of lien that takes priority over all others is the _______________ for property taxes.
government lien
As part of their right to govern land use, local municipalities enact and enforce ______ ordinaces.
zoning ordinances
A freehold estate is an estate of ownership with an __________ duration.
indefinite duration
Leasehold estates are estates of possession with a(n) _________ duration.
definite duration
Zoning laws are set at a _____ level.
local level
A written legal document by which ownership of real property is transferred from one party to another is a ____.
deed
In order to convey title, a deed must be signed by the _______. 
grantor
Title does not pass to the grantee until the deed is _________ and ________.
delivered and accepted
A deed that conveys whatever interest in the property the grantor holds at the time of conveyance and contains no covenants or warranties is a ______________.
quitclaim deed
Property owned by one person is said to be owned in _________.
severalty
A form of concurrent ownership in which each tenant owns an undivided ownership share in the entire
property and has no right of survivorship is _________________.
tenants in common
A form of concurrent ownership in which all owners have equal shares in the property and the right of survivorship is  _____________.
joint tenancy
A person who holds stock in a building owned by a corporation owns the rights to a ___________.
cooperative
All the documents that comprise the history of the title are the ______________.
chain of title
Protection against incomplete or defective records of the title to land can best be obtained by securing ________________.
title insurance
A problem that is not covered by standard or extended title insurance is an _________.
exception
Most instruments to be recorded must first be ___________.
notarized
The legal process of handling a person’s business affairs after death is called _________.
probate
The allowance period for depreciation on residential rental property is ___________.
27.5 years
California property taxes are limited by ______________.
Proposition 13
A contract whose terms have been explicitly declared either verbally or in writing is an _______ contract.
express
When only one party to the agreement makes a promise, the result is a _________ agreement.
unilateral
A contract in which one party has the right to void the contract is a ________ contract.
voidable
A contract created by the actions of the parties is a _______ contract.
implied
A lease agreement in which the tenant pays rent only is a _____ lease.
gross lease
A lease agreement in which the tenant pays rent plus operating expenses is a ___ lease.
net lease
A unilateral contract in which the buyer has the right to purchase a property from the seller if the buyer
chooses to do so is an ______.
option
A party attempting to enforce an oral executory contract for the purchase of real estate would be stopped by the _________________.
statute of frauds
________________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given.
mutual agreement
The party who makes an offer to another is known as the _______.
offeror
An accepted offer becomes binding on the offeror upon ___________________________.
communication of acceptance
Entering into a contract by intentionally deceiving a party is _____.
fraud
Something of value given in exchange for something else of value is _____________.
consideration
_____________ is not consideration but may be required as part of liquidated damages in a purchase contract.
earnest money
Additional material attached to and made part of an offer is an ________.
addendum
The process of converting a future income stream into an expression of present value is ______________.
capitalization
The cost of replacing an improvement with another of similar quality but not an exact replica is ________________.
replacement cost
Loss in value due to causes external to the property is _____________________.
economic obsolescence
A method of valuing a property by comparing the subject property to similar properties that have recently
sold is the ____________________.
market data approach
Demand, utility, scarcity, and transferability are essential elements of _____.
value
An appraisal is an ________  of value
estimate
To obtain the value using the capitalization approach, an appraiser would divide the ___________________
by the capitalization rate.
net operating income
The market data approach is based on the principle of ____________.
substitution
An appraiser calculates accrued depreciation using the _____________.
cost approach
When an appraiser determines the accrued depreciation, outdated plumbing fixtures would be considered _______________________.
functional obsolescence
The market data approach is also known as ________________.
sales comparison
The step in which the appraiser weighs all approaches to determine a final value is ______________ , which is also called correlation.
reconciliation
An appraiser determining the value of a shopping center would use the _______________.
income approach
An example of physical deterioration (also called physical obsolescence) is _____________.
wear and tear
For appraisal purposes, land does not __________ in value
depreciate
The borrower’s right to cure the default and stop the foreclosure sale is ____________________.
equitable redemption
A mortgage pledging personal property as well as real property as security for a debt is a _________________.
package mortgage
The clause that appears in both the note and the mortgage that allows the lender to demand immediate payment of the entire debt if the borrower defaults is an ___________________.
acceleration clause
A loan that is repaid in one single lump sum at the end of its life is called a straight loan or _________.
term loan
A loan in which payments are scheduled so the entire principal balance is repaid by the maturity date is a ____________________.
fully amortized loan
A final payment that is larger than preceding payments is a ________ payment.
balloon
A ________________ is used when more than one property is pledged as security for a single loan.
blanket mortgage
A mortgage given by the purchaser to the seller in partial payment for the property is a ______________ mortgage.
purchase money mortgage
The difference between a property’s market value and the debts against it is ______.
equity
The document that shows a veteran has the right to purchase a home using a VA loan is a ________________________.
certificate of eligibility
A government-sponsored secondary mortgage market organization that buys both conventional and gov- ernment loans from primary lenders is  __________.
Fannie Mae
An agency of the federal government that guarantees loans made to veterans is the __.
VA
A government agency that insures (but does not make) mortgage loans is the ___
FHA
A promissory note is ________ of the debt
evidence of the debt
In a trust deed loan, a borrower is referred to as a _______.
trustor
One who employs an agent to act on his/her behalf in a real estate transaction is known as a _________.
principal
The person employed by a principal to act on the principals behalf is an _____.
agent
Commissions charged by brokerage firms for their services are set by ___________.
negotiation
A listing agreement in which the owner agrees to pay the agent a commission regardless of who sells the
property during the listing period is known as an ______________________ listing.

exclusive right-to-sell
A listing that appoints a broker as the sole agent to find a property for the buyers, but allows the buyers to find their own property without paying a commission, is an ________________.

exclusive agency
A listing that allows an owner to list concurrently with more than one broker is known as an ____ listing.
open
The relationship of brokers to their principals is known as a _________.
fiduciary
When a broker serves as the agent for both the buyer and the seller, it is a ___________.
dual agency
Unless otherwise provided for, earnest money must be deposited in the broker’s _____________.
trust account
Depositing a client’s money in the same account with the broker’s money (which is illegal) is ___________.

commingling
Using trust funds for personal reasons is __________.
conversion
The first responsibility of a property manager is to ______________.
maintain value
A property manager should seek _______________ tenants.
well-qualified tenants
The buyer’s broker should ___________ deliver the earnest money to the listing broker after acceptance of the offer.
immediately
Real estate commissions charged by a firm are determined by the ____________.
brokerage firm
California law requires brokers to____inspect property.
visually
The ____ expresses the relationship of the total finance charge to the amount financed.
APR
The NAR Code of Ethics is based on the ___________.
golden rule
Brokers and salespersons must check the National Do Not Call Registry before ____________.
cold calling
An exception to the real estate licensing law is an ________ who is performing duties as such.
attorney
The ________________ has a duty to review all documents from the parties to a transaction.
broker of record
PRLS agents operate under a ___ -year license term.
two
A real estate salesperson can never work _____________.
independently
The Real Estate Commissioner requires salespersons to have a ___________________________.
written employment contract
To obtain a salesperson’s license, an applicant must complete___college-level courses.
three
Most environmental issues fall under the jurisdiction of the ____.
EPA
Radon is a naturally occurring ____.
gas
The Truth in Lending Act, which requires disclosure of the true cost of borrowing for consumer credit
transactions, is implemented by ____________ .
Regulation Z
The law that is intended to make consumer credit available with fairness and impartiality is the _______________________________.
Equal Credit Opportunity Act (ECOA)
The document that describes the potential impact of a proposed project on the environment is an ______________________________.
environmental impact report (EIR)
All property other than real estate is known as _________________.
personal property
Real estate consists of three things: land, improvements, and ______.
rights
If a seller is taking a fixture, it must have been ________ from the purchase agreement.
excluded
Land is not considered a ____________ because it cannot be sold quickly.
liquid asset
When articles of personal property are permanently attached to the improvements, they become ________.
fixtures
Before a new building can be inhabited, ________________________ a is required.
certificate of occupancy
Permission to vary from strict compliance with zoning requirements may be obtained in the form of a _________.
variance
When a previously established use does not comply with the requirements of a new zoning ordinance, it
may be allowed to continue as a __________________.
nonconforming use
Townships, sections, and meridians are used in the __________________ form of legal description.
rectangular (government) survey
A legal description that uses compass degrees is ________________.
metes and bounds
The type of legal description used in most urban areas is _________________________.
lot, block, and subdivision
A ___________ may be used to separate two incompatible zoning uses.
buffer zone
Real estate and fixtures are transferred with a ____.
deed
Personal property is transferred with a ____________.
bill of sale
If the buyer is keeping the seller’s personal property, it must be _________ in the purchase agreement.
included
