California Real Estate Principles 1-6
Terms
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- A set of principles or values by which an individual guides his or her won behavior and judges that of others
- Ethics
- The power of the state to pass laws, within lawful limits, that promote the order, safety, health, morals and general welfare of it citizens
- Police Power
- Someone licensed by the Department of Real Estate, holding either a broker or salesperson license, who negotiates sales for other people
- Real Estate Agent
- Someone holding a broker license and permitted by law to employ those holding a salesperson license, who may negotiate sales for other people
- Real Estate Broker
- The law that affects the licensing and conduct of the real estate agents
- Real Estate Law
- Someone holding a salesperson license who must be employed by a real estate broker, for pay, to perform any of the activities of real estate broker
- Real Estate Salesperson
- The same as real estate salesperson, holding a salesperson license, employed by a broker
- Real Estate Sales Agent
- Recall and make void
- Revoke
- Temporarily make ineffective
- Suspend
- A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress and enhance service
- Trade Organization
- Those rights, privileges and improvements that belong to and pass with the transfer of real property but are not necessarily part of the actual property
- Appurtenance
- A survey line running east and west, used as a reference when mapping land
- Base Line
- A written agreement used to transfer ownership in personal property
- Bill of Sale
- An ownership concept describing all the legal rights that attach to the ownership of the real property
- Bundle of Rights
- Personal property
- Chattel
- An item of personal property which is connected to real estate; for example, a lease
- Chattel Real
- A condition which requires something to occur before a transaction becomes absolute and enforceable; for example, a sale that is contingent on the buyer obtaining financing
- Condition Precedent
- A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor; for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence
- Condition Subsequent
- Owner may use only a reasonable amount of the total underground water supply for his or her beneficial use
- Doctrine or Correlative User
- Annual crops produced for sale
- Emblements
- A legal interest in land; defines the nature, degree, extent and duration of a person's ownership in land
- Estate
- The most complete from of ownership of real property; a freehold estate that can be passed by descent or by will after the owners death; also known as estate of inheritance or fee simple estate
- Estate in Fee or Estate of Inheritance
- The largest, most complete ownership recognized by law' an estate in fee with no restrictions on its use
- Fee Simple Absolute
- Also known as fee simple qualified
- Fee Simple Defeasible
- An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs
- Fee Simple Qualified
- Personal property that has become affixed to real estate
- Fixture
- An estate in real property which continues for a indefinite period of time
- Freehold Estate
- A leasehold estate, considered to exist for a definite period of time or successive periods of time until termination
- Less Than-Freehold Estate
- An estate that is limited in duration to the life of its owner or the life of some other chosen person
- Life Estate
- A measurement meaning one foot or 12 inches in length as contrasted to a square foot or cubic foot
- Linear Foot
- Land bordering a lake, ocean or sea-as opposed to land bordering a stream or river (running water)
- Littoral
- A survey line running north and south, used as a reference when mapping land
- Meridian
- A method of land description in which the dimensions of the property are measured by distance and direction
- Metes and Bounds
- A fixed landmark used in a metes and bounds land description
- Monument
- Anything movable that is not real property
- Personal Property
- A map of a town or subdivision showing the location and boundaries of individual properties, used in the record tract system to descrive land
- Range
- American Land Title Association policy of extended title insurance policy, can be purchased by lender or buyer
- A.L.T.A.Owner's Policy
- A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate
- Abstract Title
- A person who, historically, searches out anything affecting the title to real property and summarizes the information in the findings
- Abstractor
- A formal declaration to a public official (notary) by a person who has signed an instrument which states that the signing was voluntary
- Acknowledgment
- Knowledge gained based on an actual observance, as opposed to Constructive Notice
- Actual Notice
- A trade association of the state's title companies
- California Land Title Association
- The recorded history of matters such as conveyances, liens and encumbrances affecting title to a parcel of real estate
- Chain of Title
- Recordation of deed or possession of property
- Constructive Notice
- The transfer of title to land from on person to another by use of a written instrument
- Conveyance
- The recorded document that protects a homeowner from foreclosure by certain judgment creditors
- Declaration of Homestead
- The property the benefits from an easement
- Dominant Tenement
- The right to use another's land for a specified purpose, sometimes known as a right-of-way
- Easement
- An easement that is not appurtenant to any one parcel; for example, public utilities
- Easement in Gross
- The placement of permanent improvements on adjacent property owned by another
- Encroachment
- Land grants recorded by the Mexican government in California
- Expedientes
- An extended title insurance policy
- Extended Policy
- An assurance of clear title
- Guarantee of Title
- A written legal document setting forth the rights and liabilities of the parties involved
- Instrument
- The final legal decision of a judge in a court of law regarding the legal rights of parties to disputes
- Judgment
- Permission to use a property, which may be revoked at any time
- License
- A claim of the property of another for the payment of a debt
- Lien
- A recorded notice that indicates pending litigation affecting title on a property, preventing a conveyance or any other transfer of ownership until the lawsuit is settled and the lis pendens removed
- Lis Pendens
- Good or clear saleable title reasonably free from risk of litigation over possible defects
- Marketable Title
- A court action to divide property held by co-owners
- Partition Action
- Deeds used by the U.S. Government when confirming or transferring ownership to private parties
- Patent Deed
- The property that is burdened by and easement
- Servient Tenement
- Ownership of real property by one person or entity
- Severalty
- A policy of title insurance covering only matters of record
- Standard Policy
- Evidence of land ownership
- Title
- An insurance policy that protects the insured against loss or damage due to defects in the property's title
- Title Insurance
- The storage facility of a title company in which it has accumulated complete title records of properties in its area
- Title Plant
- Ended the war with Mexico in 1848, and California became a possession of the United States
- Treaty of Guadalupe Hidalgo
- That interest a co-owner has in property, which carries with it the right to possession and use of the whole property, along with the co-owners
- Undivided Interest
- Owned by
- Vested
- An unqualified agreement to the terms of an offer
- Acceptance
- A lawsuit brought to court
- Action
- The person whom a claim, benefit or right in property is made
- Assignee
- The transfer of a claim, benefit or right in property from one person to another
- Assignment
- The person transferring a claim, benefit or right in property to another
- Assignor
- The person holding the power or attorney
- Attorney-in-Fact
- A contract in which each party to the contract promises to perform some act or duty in exchange for the promise of the other party
- Bilateral Contract
- A failure to perform on part or all of the terms and conditions of a contract
- Breach of Contract
- Something of value-such as money, a promise, property or personal services
- Consideration
- An agreement to do or not to do a certain thing
- Contract
- Intention to be bound to an agreement, thus preventing jokes and jests from becoming valid contracts
- Contractual Intent
- The rejection of an original offer that becomes a new offer
- Counteroffer
- Precise acts to be performed are to be clearly stated
- Definate and Certain
- Also known as a sales contract; the primary document used to present an offer on real property
- Deposit Receipt
- The use of force to get agreement in accepting a contract
- Duress
- Someone who is legally set free from parental control/supervision
- Emancipated Minor
- To perform or complete;to sign
- Execute
- A contract in which the obligations have been performed on both sides of the contract and nothing is left to be completed
- Executed Contract
- A contract in which obligation to perform exists on one or both sides of the contract
- Executory Contract
- The parties declare the terms and put their intentions in words, either oral or written
- Express Contract
- Refraining from action by a creditor against the debt owned by a borrower after the debt has become due
- Forbearance
- An act meant to deceive in order to get someone to part with something of value
- Fraud
- Gifts such as real property based solely on love and affection
- Good Consideration
- Agreement is shown by acts and conduct rather than words
- Implied Contract
- Sets in advance a specified amount of money as a penalty in the event of a breach of contract
- Liquidated Damages
- A contract by which a principal employs an agent to do certain things for the principal
- Listing
- Using threat of violence to get agreement in accepting a contract
- Menace
- Someone under 18 years of age
- Minor
- An innocent or negligent misstatement of a material fact causing someone loss or harm
- Misrepresentation
- An error in misunderstanding
- Mistake
- Agreement to the provisions of a contract by the parties involved; a mutual willingness to enter into contract
- Mutual Consent
- The substitution by agreement of a new obligation for an existing one
- Novation
- A presentation or proposal for acceptance to form a contract
- Offer
- The party receiving an offer
- Offeree
- The party making an offer
- Offeror
- A right-given for consideration-to a party(optionee) by a property owner (optionor)
- Option
- Oral or written negotiations made prior to a dispute about an executed contract
- Parol Evidence
- A written instrument giving a person legal authority to act on behalf of another person
- Power of Attorney
- Approved
- Ratified
- Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract
- Rescission
- The canceling of an offer to contract by the person making the original offer
- Revocation
- An action brought in a court to compel a party to carry out the terms of a contract
- Specific Performance
- A state law which requires that certain contracts must be in writing and contain certain essential elements in order to be enforceable
- Statute of Frauds
- The period of time limited by statute within which certain court actions may be brought by one party against another
- Statute of Limitations
- An offer by one of the parties to contract to carry out his or her part of the contract
- Tender
- An act must be performed within certain time limits described in a contract
- Timely Manner
- Using unfair advantage to get agreement in accepting a contract
- Undue Influence
- A contract that was valid when made but either cannot be proved or will not be enforced by a court
- Unenforceable
- An agreement in which one party promised to pay consideration or to do something in return for the performance of an act by another party; the party making the promise is not legally obligated to act unless the other party performs (a promise for an act)
- Unilateral Contract
- Legal action taken to repeal a contract by one party when the other party has breached a contract
- Unilateral Recission
- Legally binding
- Valid
- Each party to a contract must give up something to make the agreement binding
- Valuable Consideration
- An agreement which is totally absent of legal effect
- Void
- An agreement which is valid and enforceable on its face, but may be rejected by one or more of the parties
- Voidable
- The acquisition of title to additional land or to improvements as a result of annexing fixtures or as a result of natural causes such as alluvial deposits along the banks of a stream by accretion
- Accession
- A buildup of soil by natural causes on property bordering a river, lake or ocean
- Accretion
- A person appointed by the court to handle the affairs of a deceased person when there is no one mentioned in a will to do so
- Administrator/Adimistratrix
- Acquiring title to property by continued possession and payment of taxes
- Adverse Possession
- Any benefits that come to a property after a sale must follow the sale and accrue to the new owner
- After Acquired Title
- Transfer ownership or sell
- Alienate
- Sand or mud, carried by water and deposited on land
- Alluvial Deposit
- Soil that builds up as a result of accretion
- Alluvium
- American Land Title Association
- A.L.T.A.
- The sudden washing or tearing away of land by the action of water
- Avulsion
- A statement of the unpaid balance of a loan and the condition of the debt, as it relates to a deed of trust
- Beneficiary Statement
- A gift of personal property by will
- Legacy
- California Land Title Association
- C.L.T.A.
- A change in a will before the maker's death
- Codicil
- To transfer ownership or title
- Convey
- A gift of real property by will
- Devise
- The gradual wearing away of land by natural processes
- Erosion
- The deposit of funds or document with a neurtral third party who is instructed to carry out the provisions of an agreement
- Escrow
- An independent third party legally bound to carry out the written provisions of the escrow agreement; a neutral, bonded third party who is a dual agent for the principals; sometimes called an escrow agent
- Escrow Holder
- Written directions, signed by a buyer and a seller, detailing the procedures necessary to close a transaction and directing the escrow agent how to proceed
- Escrow Instructions
- Completion of an act or process, such as an escrow
- Execution
- A person named in a will to handle the affairs of a deceased person
- Executor/Executrix
- Used to make a gift of property to a grantee, usually a close friend or relative
- Gift Deed
- A written instrument that transfers title to real property. Must contain a "granting clause".
- Grant Deed
- The person receiving the property, or the one to whom it is being conveyed
- Grantee
- The person conveying, or transferring, the property
- Grantor
- Written in the makers own handwriting, dated and signed by the maker
- Holographic Will
- A bank account established by a lender, in the name of the borrower, for the purpose of paying periodic expenses such as property taxes and property insurance. The borrower then makes pre-calculated monthly payments into the account. When the taxes or pr
- Impound Account
- Consideration used in a gift deed
- Love and Affection
- An examination of the public land records to determine the extent to which someone has legal interest in a parcel; a report on the quality of the title that searches for encumbrances and liens or any other items of record that might effect ownership/ use
- Preliminary Title Report
- Someone who directs or authorizes another to act in his or her place regarding relation with third persons; buyer or seller
- Principal
- A granting of private property to other private persons
- Private Grant
- The division and distribution of expenses and or income between the buyer and seller of property as of the date of closing or settlement
- Proration
- When private property is intended for public use, it may be acquired in this manner
- Public Dedication
- A transfer of title by the government to a private individual
- Public Grant
- Transfers any interest the grantor may have at the time the deed is signed with no warranties of clear title
- Quitclaim Deed
- Conveys title to property from a trustee back to the borrower (truster) upon payment in full of the debt secured by the trust deed
- Reconveyance Deed
- Occurs when land that has been covered by water is exposed by receding water
- Reliction
- A deed given to a buyer when property is sold through court action in order to satisfy a judgement for money or foreclouser of a mortgage
- Sheriff's Deed
- The legal transfer of a person's interest in real and personal property under the laws of descent
- Succession
- A perosn who has made a will
- Testator/Testatrix
- A security instrument that conveys title to land as security for the payment of a debt
- Trust Deed
- No longer used in California; a deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it
- Warranty Deed
- A written instrument whereby a person makes a disposition of his property to take effect after his death
- Will
- Will usually prepared by an attorney and signed by the maker and two witnesses
- Witnessed Will
- The amount of rental income due from the tenant as agreed in the lease agreement
- Contract Rent
- A conveyance of an estate in real property to someone for a certain length of time, as in a lease; to let
- Demise
- What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent
- Economic Rent
- A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal
- Estate in Sufferance
- The tenancy may be ended by the unilateral decision of either party; no agreed upon termination date, however, and either party must give 30 days notice before ending the tenancy
- Estate at Will
- A leasehold estate with a definite end date; must be renegotiated; a lease for some fixed period
- Estate for Years
- 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
- Estate from Period to Period
- The legal process of removing a tenant from the premises for some breach of the lease
- Eviction
- A lease calling for periodic increases in the rental payments; sometimes called a stair-stepped-lease
- Graduated Payment Lease
- Landlord pays for most of the operating expenses, including property taxes, maintenance and repairs
- Gross Lease
- Lessor; property owner
- Landlord
- An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time
- Leasehold or Lease
- Tenant; renter
- Lessee
- Landlord; property owner
- Lessor
- 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 is one where the tenant pays all expenses of operating the property as well as a set amount of rent
- Net Lease
- A lease where the landlord receives a percentage of the gross sales as part or all of the rental payment
- Percentage Lease
- Consideration paid for the use of a property
- Rent
- Property from which 80% or more of the gross rental income is from dwelling units
- Residental Rental Property
- An act whereby a landlord evicts a tenant in response to some complaint made by the tenant
- Retaliatory Eviction
- 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
- Reversionary Right
- A lease agreement created when a tenant sub lets the property to another person, thus creating a sublessor-sublessee relationship. The person in the "sandwich" is a lessee to the owner and a lessor to the sub-lessee
- Sandwich Lease
- Transfers less than the entire leasehold, with the original lessee being primarily liable for the rental agreement
- Sublease
- The giving up of a lease, voluntarily
- Surrender
- A renter
- Tenant
- 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
- Unlawful Detainer Action
- A court order directing the sheriff to remove the tenant and his or her possessions within five days
- Writ of Possession