California Real Estate Principles (Real Estate Express)
Reconveyance Deed
"deed" that is involved with the financing of real estate.
Adverse Possession
(Very similar to easement by prescription) Possession; Open; Actual; Continuous; Hostile to owner's title.
Escrow Holder
(neutral party) makes sure that all parties to the transaction comply with the terms and conditions of the agreement as set forth in the escrow instructions.
seperate property
-acquired before marriage -acquired by gift or inheritance -acquired with seperate-property funds -income derived from separate property
Implied Agreement
A contract under which the agreement of the parties is demonstrated by their acts and conduct.
Nuncupative
A deathbed will that is given orally by testator, written down by nurse, and witnessed by doctor.
General Warranty Deed
A deed in which the grantor fully warrants good, clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers the greatest protection of any deed.
Joint Tenancy
A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. (TIME; TITLE; Interest; Possession)
Fair Housing Act Exemption
A privately owned single-family home where no broker is used and no discriminatory advertising is used Rental of an apartment where the owner is also an occupant, provided the advertising is not discriminatory Facilities owned by private clubs and leased non-commercially to members; religious organizations and leased non-commercially to members.
Deed Restrictions/Restrictive Covenants
A restriction is a use of encumbrance
California Association of Realtors (CAR)
A trade association that is dedicated to the advancement of professionalism in real estate
Contract
A voluntary agreement between two parties in which specific promises are made for a consideration
Holographic
A will written in testator's own handwriting. Not legal in some states.
Codicil
Amendment to a will
Real Estate General Fund
An account that holds ALL the money collected from license and exam fees, and is used for the operating expenses of the CalBRE - 8% for the Real Estate Education and Research Fund - 12% for the Recovery Fund $50K for one transaction and $250K for one licensee
Freehold Estate
An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate. (lifetime)
Express Agreement
An oral or written contract in which the parties state the contract's terms and express their intentions in words.
Unenforceable Restrictions
Any restriction that violates public policy (State or Federal law) or is discriminatory is not enforceable
Fee Simple Defeasible
Based on an occurence of a specified event - Conditions
County fiscal year
Begins July 1 and ends on June 30
Encumbrance
Burdens or limits your title to a property
Grantee
Buyer
Discrimination in the National Housing Market
Civil Rights Act of 1866 Executive Order 11063 Civil Rights Act of 1968 (Fair Housing Act); regardless of sexual orientation and gender identity
Tenancy in Common
Co-ownership of property in which each party owns an undivided interest (but not necessarily equal interest) that passes to his or her heirs at death.
Deed
Deed is Not the title but it is the evidence of the title Deed does not need to be recorded to be valid
Estate for Years
Definite beginning and ending. No automatic renewal. No notice required to terminate
APPURTENT EASEMENT
Easements for adjacent properties or neighbors
Termination of Escrow
Escrows are voluntarily completed by full performance and closing or they terminated by mutual consent and cancellation The escrow holder does not have authority to determine that a principal has not performed.
Executed
Everything has been done, all promises have been fulfilled, and everyone has performed under the contract
Actual Notice
Express information or fact; that which is known; direct knowledge. Legally known but not recorded
Estate in Remainder
Given to a third party who is known as the remainderman. After death of life tenant, the remainderman has complete bundle of rights.
Bilateral
In which both parties promise to do something
Unilateral
In which one party promises to do something if the other party acts
Requirements of a will
Legal Age Sound Mind Proper Wording No undue influence Witnesses Signed by Testator (Maker of a will)
Involuntary Life Estates
Legal Life Estates, also called marital rights. Include: Dower - a wife's interest in the husband's property Curtesy - a husband's interest in a wife's property Homestead - protection against unsecured debts for the party who did not sign for the loan
What is a valid contract?
Legally competent Parties; offer and acceptance; consideration; legality of object
Real Estate Advertisment
Licensees who advertise on the Internet are required by law to indicate their license status
Basics methods of delivery
Manual Delivery Delivery through recording, which is the act of putting the title of record in the grantee's name at the county recorder's office Conditional delivery, which mandates that a specific event happen before the title can be passed, and then the title must be passed through a third party
Trust Deed
Not a deed. Rather, it pledges real property as security for the payment of a loan. Needs to be recorded within one week after the transactions
Constructive Notice
Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property. information that can be obtained from the public records at the courthouse
Severalty
Ownership of real property by one person only, also called sole ownership.
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
Fee Tail
Property inherited by a monarch is illegal in the United States.
Estate in Reversion
Property or estate ownership that reverts back to the grantor after a temporary ownership period. A life estate that is deeded to a life tenant - incomplete bundle of rights during lifetime A reversion estate that is retained by the grantor. After death of life tenant, grantor has complete bundle of rights.
DRE (Department of Real Estate)
Protects the public through the enforcement of laws and requirements for salesperons' and brokers' real estate license
Limiting Restrictions
State things you can never do. (No fences, no dog runs, etc.)
Affirmative restrictions
State things you must abide by. (Set back requirements, minimum square footage, front of house must be brick, etc.)
Estate at will
Stay without lease
Novation
Substituting a new contract for an old one
Estate in Land
The degree, quantity, nature, and extent of interest a person has in real property.
Equitable Title
The interest the buyer has in property between the time of acceptance of contract and closing
Fee Simple Absolute
The maximum possible estate or right of ownership of real property, continuing forever.
Escrow
The process in which a neutral third party, for a fee, acts as the closing agent for the buyer and seller.
Essential mandate for an escrow to be valid
There must be a binding contract between buyer (grantee) and the seller (grantor), the conditional delivery of transfer instruments and funds to a neutral third party.
Alienation
Transfer or Convey
Encroachments
Unauthorized intrusion of a building or other improvement onto another person's land
Acquire or transfer property
Will Succession Accession Occupancy Transfer
Suit to quiet the title
a court action used to clear a cloud on a title
judgement
a court decision as a result of a lawsuit, and gives the Final determination of the rights of the parties in the proceeding
Realtor
a licensee must be a member of a local board as well as a member of the national organization.
Mortgage
a lien that is used to secure real property for the payment of a promissory note, or debt.
Standard policy
covers only those things that appear on the public record.
Extended policy
covers things that do not appear on the public record, such as encroachments
Testate
dying with a will
Intestate
dying without a will
General Partnership
each partner shares profits, losses and management responsibilities
Recording the Deed
establishes priority and provides constructive record. Needs to be notarized (attestation).
California Real estate Commissioner
has the authority to investigate the actions of any person engaged in the business of a licensee in California, and has the power to deny, suspend or revoke the real estate license. Appointed by the governor
Easement
interest in another's land. It is not a lien, but rather, it is a right can be created by Implication Reservation Necessity Condemnation Expressed
Special Assessment
legal charge against real estate by a public authority to defray the cost of specific local improvements
attachment
legal process by which property is seized and held, symbolically, until a pending judgement suit has been decided
Pur Autre Vie
life tenant has the incomplete bundle of rights until a third party dies.
Partition Law Suit
one can request the courts to sell his shares
Limited Parternship
one or more general and limited partners, but the limited partners do not share management duties and his losses are limited to the amount of his investment.
Community Property
property obtained during the course of the marriage
Leasehold Estate
renting or leasing
Grantor
seller or the giver of the real estate
Estate at sufferance
tenant entered into the estate lawfully, but now retains possession unlawfully; possession is on a hostile basis and eviction is required to terminate ex. refusing to leave a rented house Y6
Vesting
the method in which one holds title to property
Color of Title
title that appears to be valid but is not; always used with adverse possession
Tenancy in Partnership
two or more persons, as PARTNERS, combine their interests, assets, and efforts into a business venture.
Escrow Procedures
Prepare the escrow instructions. Order the preliminary title search and report. Request the lender's demand, including any amount owed, and the pay-off statement. Request for new loan instructions and documents. Accept Structural Pest Control Report and Other Reports. Accept Fire Insurance Policies and Complete Settlement. Request Closing Funds. Audit File. Order Recording. Close Escrow by preparing settlement statements for buyer and seller; disbursing all funds and delivering documents to the appropriate party or parties.
Parol Evidence Rule
Prevents the admission into court evidence of any oral negotiations or agreements that vary or contradict the terms of the written contract.. (No oral agreements allowed!)
community property with right of survivorship
Transfers ownership to the spouse upon the death of the other spouse, with income tax benefits
A Private Deed Restriction
a written agreement to establish controls for private land, which limit the use or occupancy of the land, and are part of a developer's plan.
Trust Deed
a written instrument that makes real property collateral for a loan
General lien
against all of the properties the person owns; as a result of a lawsuit.
Feudal System
all land was once owned by the king/government
Allodial System
although the government detains some rights, individuals own property without proprietary control of government.
a deed must contain
an acknowledgement (be notarized) The name and address to which future tax statements may be sent The basis for the computation of the transfer tax The names of all parties to the transaction A complete legal description for identification of the property The payment of the recording fee
Lease
an agreement that creates a landlord-tenant relationship The lessor (owner) has a freehold interest; the lessee (tenant) has a leasehold interest.
Specific lien
applied to a specific piece of property and affect only that piece of property
Escheat
the decedent died in intestate (without a will) and without heirs. The property becomes owned by the government.
Before closing an escrow
the escrow holder must audit the file, accounting for all items to be handled, recorded, and delivered, including cleared funds.
Recording
the legal process of making an instrument, or legal document, an official party of the records of a county, after it has been acknowledged. It's not legal requirement
Real Estate broker license is revoked
the licenses of every real estate salesperson in the broker's employ are automatically canceled (They may transfer their licenses to a new employing broker)
Eminent Domain
the right of government to take private property for public and/or for necessary public use.
Title
the right to ownership of the land, with proper evidence.
Deficiency judgement
the total assets of the borrower are available for collection by the debt holder.