Part 1 Califonia Real Estate FINAL QUIZ Part 2

Agency Coupled with Interest

A situation in which the agent has a financial stake in the transaction beyond the anticipated commission

The General Partnership

A voluntary association of two or more persons to carry on business for profit. Personal liability. Liability for business debt, which extends beyond what is invested in a business to include an individual's personal assets. UPA.

Which act is known as the original fair housing statute? Executive Order 11063 Civil Rights Act Title VIII Fair Housing Act Civil Rights Act of 1866

Civil Rights Act of 1866

Agent Sims needs one more new home sale this month to receive a bonus. She has one more that could possibly close and help her meet the goal. However, today she was informed the financing fell through for the buyer. Agent Sims has a lender friend that owes her a favor. She calls the lender, offers the friend one-quarter of her bonus if he will finance the buyers who were turned down. Which penal code section addresses this crime? PC 534 PC 639-639a PC 641.4 PC 532c

PC 639-639a

Elliot has misrepresented himself by acting in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation? Misdemeanor Felony Held accountable in a possible civil suit. Both B and C

Misdemeanor

The Corporate Form

Most common form of business limited personal liability, easy transfer of ownership, business continuity, better access to capital, and (depending on the corporation structure) occasional tax benefits.

Georgina sat for the examination about two weeks ago. She believes she passed with flying colors and checks her mail immediately upon arrival home for her results. Today, they arrived and, as she opened the envelope, she saw her test score. Did Georgina pass or fail? Georgina passed the examination. Failing scores are not revealed; only the information the examinee failed. Georgina failed the exam. The exam is qualifying by nature and if you pass, you pass; your score is irrelevant and is not revealed. There is no way to tell if Georgina passed or failed without knowing her actual score. None of the Above.

Georgina failed the exam. The exam is qualifying by nature and if you pass, you pass; your score is irrelevant and is not revealed.

Pur Autre Vie

Handling things with a life estate pur autre view means someone gives another person access to or uses of an estate, typically a residence, but only as long as a third person is alive.

What is the form of California State Real Estate licensing examinations? True or False Tests Essay Tests Multiple-Choice Tests All of the Above

Multiple-Choice Tests

Carol is studying for the California real estate license examination. She knows she has to know all areas covered in the examination extremely well to pass. Which portion of the examination, approximately, makes up the largest portion of the test? Practice of Real Estate and Mandated Disclosures Contracts Transfer of Property Financing

Practice of Real Estate and Mandated Disclosures

Net Listing

The broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states.

Which of the following conditions does not apply in converting a mobile home into real property? The homeowner must obtain a building permit. The home must be placed on a permanent foundation. The homeowner must obtain a Certificate of Occupancy. The homeowner is required to have a tag guaranteeing the mobile home's proper construction.

The homeowner is required to have a tag guaranteeing the mobile home's proper construction.

Fair Housing Act

protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. Additional protections apply to federally-assisted housing.

Steering

the illegal practice of directing a prospective homebuyer toward — or away from — a particular neighborhood or area based on protected characteristics.

Tenants in Common

two or more individuals own the property together but with separate and distinct shares.

What is a legal life estate?

vests the beneficial use of property in a person for their lifetime.

The continuing education requirement in California is ____________hours every __________ years. 45, six 40, five 45, four 6, four

45, four

What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments? 120 days after filing the lien; Four years 190 days after filing the lien; Three years 90 days after filing the lien; Three years 120 days after filing the lien; Five years

90 days after filing the lien; Three years

Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan due date is approaching and she will owe a lump sum of $11,257 to pay off her mortgage loan. Which type of promissory note has Caroline NOT been paying? A straight note A fully amortized loan A Balloon Note An Interest-Only Note

A fully amortized loan

The Limited Liability

A legal structure that limits the extent of an economic loss to assets invested in an organization.

The Limited Partnership

A partnership made up of two or more partners in which the general partner oversees and runs the business while limited partners do not partake in managing the business.

Which is not a form of syndication? The Corporate Form The General Partnership The Limited Liability An Equity Trust

An Equity Trust

Open Listing

An agreement between an owner and many brokers. If a broker produces a ready willing, and able buyer, a commission is due. However, the owner still has the right to sell his/her property and is not obligated to pay a commission to anyone.

Implication

An implied easement arises from various circumstances when a trier of fact concludes that the parties intended to create an easement even though it was not expressly granted.

PC 639-639a

Any officer, director or employee of a financial institution who asks, receives, consents, or agrees to receive any commission, emolument, gratuity, or reward or any money, property, or thing of value for his own personal benefit

Agent Simpson tells residents of a neighborhood that minorities are moving into the neighborhood, and property values are sure to plummet. Simpson goes on to say, "resale values will suffer, the neighborhood will deteriorate, and if they don't sell their homes now, they will lose money." What form of illegal discrimination is Agent Simpson practicing? Blockbusting Redlining Steering Discriminatory Misrepresentation

Blockbusting

Ramon did not pass his licensing examination. He didn't think it was a possibility to fail and doesn't know what to do to re-take the test. Ramon is not even sure he is allowed to take the examination a second time. What are Ramon's options? Ramon may take the examination as many times as he needs. He need only reapply to re-take the examination. Ramon must pay the examination fee if he is to re-take the examination. Ramon cannot take the examination for a period of two years after failing. At that time, he must reapply and pay the examination fee. Both A and B

Both A and B

Agent Peters has qualified buyers to purchase a new home. Now he needs to qualify the property they wish to buy. He understands the human qualification process. Can you help Agent Peters with steps to qualify the property? Type of property and area zoning Location and Diversity of Neighborhood Value range and condition Both A and C

Both A and C

In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enforcement would have any role in real estate sales, transactions, and regulations. What does the term "police power" refer to in real estate? The constitutional right of the government to regulate private activity to promote the general safety, health, and welfare of society. Police power allows the government to seize land at their discretion or in reaction to zoning ordinance changes. Police power controls and directs land use regarding subdivisions. Both A and C

Both A and C

When can a violation that hasn't happened yet be a violation? If the Commissioner believes that a person has or is about to commit a violation of law, order, license, permit, etc., the Commissioner has the authority to bring action against the person. It can never be a violation. A person has to commit, past or present tense, a violation to have actions filed. You cannot punish someone for something they have yet to do. The Commissioner can command in the name of the people of the State of California in the Superior court of the State of California, that the individual not continue with the violation or not move to commit the violation. Both A and C

Both A and C

When is a real estate licensee considered a creditor? If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy. A licensee may always be considered a creditor based on the financial information and qualification of prospective buyers. A licensee is never considered a creditor under any circumstance. None of the above

If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy.

Which of the following is not an exemption to the federal fair housing laws concerning age and family status? In a government-designated retirement housing. In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents. In residential dwellings of two to four units if one of the units is occupied by the owner. None of the Above.

In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents.

Reservation

In the event of cancellation by either party, all funds received towards this reservation will be returned to the potential buyer within two business days. 2.

Which of the following liens is both general, involuntary, and statutory? Which lien is specific, voluntary, and equitable? Judgment Lien; Property Tax Lien Income Tax Lien; Property Tax Lien Judgment Lien; Mechanic's Lien Income Tax Lien; Mortgage Lien

Income Tax Lien; Mortgage Lien

Blockbusting

Is the illegal practice of convincing homeowners that their neighborhood is undergoing a significant change in demographics—typically portrayed as negative—so that they will sell or rent their homes at lower-than-market-value prices.

XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing? It is actually considered a mortgage financing alternative. NO, it is not considered a form of financing. No, it is simply paying for land with cash proceeds. None of the Above.

It is actually considered a mortgage financing alternative.

Dan has recently been transferred to San Diego, and only has a month to find a home, sell his condo, pack, move, close, and get to work. His agent shows him the Walsh home and it's perfect. He offers the asking price, along with all the kitchen appliances and window treatments to remain with the property. The Walsh's accept his offer exactly as it is written. Which contract term applies to this situation? Time is of the Essence Mirror Image Contingency Novation

Mirror Image

Due to the subdividing of lots on the lake, Jim's property is surrounded on three sides by Louise's property. The only other boundary is the lake. Jim can only get to his home by driving up Andrea's driveway and behind her lake home to get to his own. How was the easement in this situation created? Implication Reservation Necessity Expressed

Necessity

Which of the following listing agreements is illegal in most states? Open Listing Exclusive Agency Listing Net Listing Agency Coupled with Interest

Net Listing

The Statute of Limitations is: An action that bars recovery by the plaintiff because of the plaintiff's undue delay in seeking relief. Prevents action from being taken against an individual after a prescribed period of time An action that the purchaser agreed to do or not to do when they purchased the property A principle which precludes a person from asserting something contrary to what is implied by a previous action

Prevents action from being taken against an individual after a prescribed period of time

RESPA

Real Estate Settlement Procedures Act - provides consumers with improved disclosures of settlement costs and to reduce the costs of closing by the elimination of referral fees and kickbacks. RESPA was signed into law in December 1974, and became effective on June 20, 1975.

Along a non-navigable stream, does an owner own the land, the water, both, neither? What is this right? The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right. The owner owns to the water's edge. It is a Riparian Right. The owner owns to the average high water mark. It is a Littoral Right. The owner owns the land and the water to the center of the stream. It is a Riparian Right.

The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right.

When an owner dies without a will or heirs, what happens to the property and why? The property is abandoned until it can be sold by the state. If there is not an owner, the state takes ownership. There is an auction with the proceeds going to the state. If there is not an owner, the state takes ownership. The property is transferred to the nearest living relative. Property must have an owner. The property is transferred to the state. Property cannot be without an owner.

The property is transferred to the state. Property cannot be without an owner.

Redlining

The term refers to the presumed practice of mortgage lenders of drawing red lines around portions of a map to indicate areas or neighborhoods in which they do not want to make loans.

The Brights are buying a home from the Stones. They are splitting the escrow service fees 50-50. Do they live in Northern or Southern California? How does the other region usually handle the escrow service fees? They live in Southern California. In Northern California the seller usually pays the escrow service fees. They live in Southern California. In Northern California the buyer usually pays the escrow service fees. They live in Northern California. In Southern California the buyer usually pays the escrow service fees. They live in Northern California. In Southern California the seller usually pays the escrow service fees.

They live in Southern California. In Northern California the buyer usually pays the escrow service fees.

Which of the following is not a prohibited escrow-related activity? An escrow agent cannot disburse a real estate broker's commission prior to closing of the escrow. Escrow licensees may not solicit or accept escrow instructions containing any blank to be filled in after signing or initialing. They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction. None of the Above.

They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction.

Ben and Amanda are interested in a vacant, undeveloped lot. They are going to continue to live in their current home, pay off the lot's loan, and then build a new home on the lot. Before closing on the purchase of the lot, they discover the zoning regulations permit nightclubs to be built in the immediate area. They specifically asked the broker about this issue and were told there was no reason to worry. What are Ben and Amanda's options, if any? They do not have any options and must go forward with the sales contract or face a possible suit for breach of contract. It is the word of the broker against theirs. If they did not get the broker's assurance in writing, they have to proceed with the contract or face a suit. They may rescind the transaction based on the misrepresentation of the broker. Both A and B

They may rescind the transaction based on the misrepresentation of the broker.

Easton v. Strassburger

This was decided that the broker should disclose everything to the buyer even the bad.

An undeveloped acre of land sits in the middle of a secluded rural community. How many separate owners could this acre have? As many as possible if they were partners in the ownership of the land. Three owners: One could own the subsurface rights, one the surface rights, and another the air rights. Two owners: One could own the surface rights, and another the air rights. Two owners: One could own the subsurface rights, and another the surface rights.

Three owners: One could own the subsurface rights, one the surface rights, and another the air rights.

Ensuring consumers are fully informed of all finance changes and aware of the true annual interest rate are requirements of which regulation? Article 7 RESPA Truth in Lending Uniform Settlement Statement

Truth in Lending

Sherman v. Clayton

Antitrust Laws

PC 532c

Offering/giving parcels of real property with tickets of admission or at drawings.

What are forms of Syndication?

The Corporate Form The General Partnership The Limited Liability The Limited Partnership

What are the fourfold unity?

Time, title, interest, Possession

Agent Green is faced with an ethical dilemma. He was present when two brokers were having an unethical discussion that could be considered collusion. He doesn't know if he should act as if it never happened, or report the incident to his broker. What steps should he employ when making this decision? Concentrate on the pertinent facts of the case. Think about who stands to gain and lose by his decision. Explore different solutions to the problem. All of the Above

All of the Above

Which of following are not considered trust funds? Real Estate Commissions General Operating Funds Rents and Deposits from Broker-Owned Real Estate All of the Above

All of the Above

What is the difference between Southern California and Northern California in reference to escrow accounts? In Northern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Southern California, the instructions are usually not signed until one or two days before the close of escrow. In Southern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. In Southern California, escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies. Both B and C

Both B and C

Which of the following statements concerning real and personal property is true? Annexation changes real property to personal property; severance changes personal property to real property. A trade fixture is personal property and can be removed by the tenant any time before the end of the lease term. Annexation changes personal property to real property; severance changes real property to personal property. Both B and C

Both B and C

Appraiser Jones appraises one-to-four unit residential properties, and non-residential properties with a transaction value up to $250,000. What is this appraiser's level? How many hours of appraiser education were completed? Residential License, 150 hours Certified Residential Real Estate Appraiser, 200 hours Certified Residential Real Estate Appraiser, 180 hours Certified General Real Estate Appraiser, 300 hours

Certified Residential Real Estate Appraiser, 200 hour

PC 641.4

Commercial bribery by a title insurance company, insurer, or controlled escrow company, or any employee of such companies, who pays, directly or indirectly, compensation or other valuable consideration to a licensee, thereby violating Insurance Code Section 12404; OR the licensee who accepts such bribery as an inducement to refer the title business, thereby violating the Business and Professions Code, Section 10177.4. This violation is punishable by imprisonment and/or a fine of $10,000 FOR EACH illegal transaction.

What are the types of legal life estates? Dower, a husband's interest in his wife's property; Curtesy, a wife's interest in the husband's property; and Homestead, protection against unsecured debts for the party that did not sign the loan. Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against all debts for the party who did not sign for the loan. Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against unsecured debts for the party who did not sign for the loan. Marital rights, both a husband's and a wife's interest in the spouse's property; and Homestead, protection against unsecured debts for the party who did not sign for the loan.

Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against unsecured debts for the party who did not sign for the loan.

Judy is the listing agent for the Brandts' home. In the inspection of their home, she discovers a few issues of concern. The basement is very damp and smells of mildew. Judy noticed what appeared to be mold on the interior walls of the lower level. She also saw what she believed to be their main line overflowing in the utility area of the basement. State the case that is responsible for broker's conducting a diligent inspection of properties they are listing or selling. Sherman v. Clayton Easton v. Strassburger Mello v. Roos Jones v. Mayer

Easton v. Strassburger

Article 7

Every real estate broker, upon acting within the meaning of subdivision (d) of Section 10131, who negotiates a loan to be secured directly or collaterally by a lien on real property

Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he is willing to accept their offer on two conditions: There may never be any alcohol served on the property and there can never be dancing of any kind. Mr. Manning is insistent on these conditions due to his religious beliefs. If either of these activities ever takes place, Mr. Manning would have the right to take back the property. Which type of estate applies? Fee Simple Absolute Pur Autre Vie Estate in Reversion Fee Simple Defeasible

Fee Simple Defeasible

Patrice and Cornell are completing a sales contract with Mary, their agent. The sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the authority to waive one of the brokerage's fees. The fee is explained and preprinted on the contract. Mary simply crosses it out, writes "waived," and both parties initial. Which overrules the other? The preprinted or handwritten portions of the contract? The preprinted portions of a contract always take precedence over handwritten. It depends on the portion of the contract and the language involved. Handwritten portions of real estate contracts always supersede preprinted forms. None of the Above.

Handwritten portions of real estate contracts always supersede preprinted forms.

Kim, Chris, and Beth are all partners in a cosmetics firm. Kim is leaving the partnership and wants to sell her shares of the business, including the property owned by the partnership, to Chris and Beth. The three partners own the property with the right of survivorship should one or more of them die. The remaining partners are not interested in buying Kim's interests. Kim has been unable to find a buyer for her share of the partnership. She has now resorted to asking the court to either sell her shares or sell the entire property. What form of concurrent ownership applies? Partition Tenants in Common Joint Tenancy Separate Ownership

Joint Tenancy

Ken has just passed his licensing examination. However, he has been notified the DRE will not issue a full-term license. Ken is behind on child support payments and therefore has not complied with a court order to provide these payments. Will Ken ever be able to obtain his license? Ken will not be eligible for a license until he has been current on all child support payments for a minimum of 150 days. Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period. Ken must clear his name and pay his support on time for a minimum of six months to be eligible to receive a full-term license. None of the Above.

Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period.

Which are the four elements required for a valid contract? Legally Competent Parties; Offer and Acceptance; Consideration; and Legality of Object Legally Competent Parties; Offer and Acceptance; Consideration; and Terms Legally Competent Parties; Offer and Acceptance; Assignment; and Legality of Object Legally Competent Parties; Offer and Acceptance; Contingency; and Legality of Object

Legally Competent Parties; Offer and Acceptance; Consideration; and Legality of Object

Uniform Settlement Statement

Lists all of the details and costs of the real estate transaction; used to be referred to as HUD-1 and then after October 2015 changed to ALTA Statement

Christina is planning on getting married in the next year. She is a very successful business owner and is planning on buying some vacation property on the coast. She asks her agent, Martina, for advice on how she should take title to this new property. Should she hold the title alone, or jointly with her fiance? How should Martina advise? Martina should advise Christina to protect her future assets and hold title separately due to California's community property laws. Martina should simply tell Christina to consult her attorney on this matter. Martina should discuss with Christina what she knows in reference to how title can be vested but give no advice except to consult an attorney for advice. None of the Above.

Martina should discuss with Christina what she knows in reference to how title can be vested but give no advice except to consult an attorney for advice.

Deanna is buying one of Kay's fur coats and several handbags. They are old friends and sometimes purchase each other's items instead of selling to a consignment shop. Deanna agrees to pay Kay $650.00 for the items, writes a check, and collects her purchased items. Is this transaction legitimate? Yes, it is a private transaction between two adults where both are in agreement of the terms. No, in the State of California, an agreement for the sale of real property must be in writing if the amount or value of the property exceeds $500.00. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $600.00.

No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00.

John and Thom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams? Yes, once the escrow is terminated all contracts associated are also terminated. No, the termination of an escrow does not terminate the associated contract. No, if the escrow is terminated the contract can remain valid; however, if the escrow is cancelled, the contract is cancelled. None of the above

No, the termination of an escrow does not terminate the associated contract.

Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, weeks into months, months into years, until Molly's child was starting school. She decided she needed to head back to her profession and pick up where she left off. During her at-home time, Molly hadn't kept up with any CE requirements, nor had she renewed her license after its expiration almost three years earlier. Can Molly simply pick up where she left off? No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again. Yes, due to Molly's experience, she may petition the DRE for special dispensation for her work-related experience in order to reapply for her license. Yes, all license rights lapse after four years of non-renewal. None of the Above.

No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen-year loan. What is the maximum commission for Broker Burns? Five percent of the principal of the loan. Ten percent of the principal of the loan. Fifteen percent of the principal of the loan. Two percent of the principal of the loan.

Ten percent of the principal of the loan.

Jones v. Mayer

The Civil Rights Act of 1968 allows the federal government to ban private parties from engaging in discriminatory housing

Exclusive Agency Listing

The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated.

Which of the following is not a fourfold unity? Time Title Possession Vesting

Vesting

PC 534

Willful concealment by a married person of the necessity for concurrence of a spouse in the sale or mortgaging of land.

Tracy and Darnell are buying a home. They have a 15% down payment and have qualified for a thirty year fixed conventional rate mortgage. Will Tracy and Darnell have to pay PMI? Yes, private mortgage insurance is required for all loans with less than 25% down payment. No, private mortgage insurance is only required for all loans with less than 15% down payment. No, this is Tracy and Darnell's second mortgage for the purchase of a new home. Private mortgage insurance is only for first-time buyers with less than a 20% down payment. Yes, private mortgage insurance is required for all loans with less than 20% down payment.

Yes, private mortgage insurance is required for all loans with less than 20% down payment.

Time is of the Essence

a clause that requires one party in a real estate contract to fulfill his or her obligations within a certain time frame.

Partition

an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property.

Fee Simple Absolute

an estate in real property, by which the owner has the greatest power over the title, which it is possible to have, being an absolute estate.

A straight note

are a type of mortgage note where you make interest-only payments for a short time, and then the entire principle is due. There are no periodic payments of principal, like an installment note.

Contingency

are a way of allowing the buyer or seller to back out of the deal if certain conditions aren't met.

Civil Rights Act Title VIII

banning discrimination in housing accommodation because of race, religion, color, national origin, sex, disability, or familial status.

Civil Rights Act of 1866

declared all persons born in the United States to be citizens, "without distinction of race or color, or previous condition of slavery or involuntary servitude."

Executive Order 11063

equal opportunity in housing.

Novation

is a legal instrument used to replace one obligation or party with another in a contract. All parties in the original contract must agree to the changes to execute a novation.

Mello v. Roos

is a special tax assessment district created in California to finance local infrastructure or services. The tax is applied only to residents of the district that benefit from the project.

Joint Tenancy

is a special type of co-ownership recognized in California. It is commonly associated with married couples, ensuring that when one of them dies, their entire interest in the property passes to the other spouse. This is called the right of survivorship, and it is the defining trait of a joint tenancy.

An Interest-Only Note

is a type of mortgage in which the mortgagor (the borrower) is required to pay only the interest on the loan for a certain period. The principal is repaid either in a lump sum at a specified date, or in subsequent payments.

Estate in Reversion

is the residue of an estate left by operation of law in the grantor or his successors, or in the successors of a testator, commencing in possession on the determination of a particular estate granted or devised.

Separate Ownership

it means that you have an undivided interest in the property (i.e., there are no other owners).

A Balloon Note

larger-than-usual one-time payment at the end of the loan term. If you have a mortgage with a balloon payment, your payments may be lower in the years before the balloon payment comes due, but you could owe a big amount at the end of the loan.

Discriminatory Misrepresentation

prohibited by law from discriminating on the basis of race, color, religion, sex, handicap, familial status, or national origin.