Final Exam

Chain of title

A history of conveyances and encumbrances affecting the title from the time of the original patent was granted or as far back as records are availables.

Planned Unit Development (PUD)

A land-use design that provides intensive utilization of the land through a combination of private and common areas with prearranged sharing of responsibilities of the common areas

Sublease

A lease given by a lessee

Sandwhich lease

A leasehold interest that lies between the primary lease and the operating lease

Special Assessment

A legal charge against real estate by public authority to pay the costs of public improvements such as streetlights, sidewalks, and street improvements.

Housing Financial Discrimination Act (Holden Act)

California state law making discrimination in lending practices illegal.

Closing costs

Expenses paid by the buyer and the seller upon the sale of the property

Lessee

One who contracts to rent property under a lease contract

Extended Coverage

Originally estabilished for real estate lenders, this policy requires the title company to make a physical inspection of the property and insures against certain unrecorded title risks exclused under the standard policy.

Common Interest Developments (CIDs)

Projects with individual ownership of buildings and common ownership of land; for example, condominiums and planned unit developments

Liquidity

The ability to convert your investment to cash quickly

Ad Valorem

A Latin phrase meaning "according to value." Usually used in connection with real estate taxation

Modular

A building composed of modules constructed on an assembly line in a factory. Usually, the modules are self-contained.

Real Estate Settlement Procedures Act (RESPA)

A federal disclosure law effective June 20, 1975, requiring new procedures and forms for settlements (closing costs) involving federally related loans.

ALTA Owner's Policy

A residential ower's extended coverage policy that provides buyer or owenrs the same protection that the ALTA policy gives to lender. Also called an ALTA-R policy.

Document Transfer Tax

A state-enabling act that allows a country to adopt a documentary transfer tax to apply on all transfers of real property located in the country. Notice of a payment entered on the face of the deed or on a separate paper filed with the deed.

Condominium

A system of individual fee ownership of units in a multifamily structure combined with joint ownership of common areas of the struture and the land. (sometimes referred to as a vertical subdivsion)

National Environmental Policy Act (NEPA)

Act requiring an environmental impact report on all projects using federal funding

Planning Departments

Agencies within city and county government, staffed with professionally trained planners. The planning department employees provide technical services for planning commission, elected officals, and citizens.

ALTA Title Policy

An American Land Title Association-approved title policy. A type of title insurance policy that expands the risk normally insured against unrecorded mechanics' liens; unrecorded physical easements; facts a physcial survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.

Gross Lease

An agreement for use of the land only, sometimes secured by improvements placed on the land by the user.

Planning Commission

An appointed body of citizens charged with the responsibility of advising the elected board of supervisors or city council members in matters of land use

Estate at Sufferance

An estate arising when the tenant wrongfully holds over after the expiration of his or her term. The landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for similar term under the conditons of the tenant's provious holding. Also called tenancy at sufferance.

Appreciation

An increase in value that can result from inflation or from interaction of supply and demand forces

Estate from Period to Period

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called a periodic tenancy.

Estate for years

An interest in lands by virtue of a contract for the possession of them for a definte and limited period of time. A lease may be said to be an easte for years.

Inclusionary Zoning

An ordinance that requires a building of new housing to set aside a designated number of units for low- and moderate- income peopel

Lessor

An owner who enters into a lease with a tenant

Stock Cooperative

Corporation formed for the purpose of holding title to a building

Mobile Home

Defined by California health and safety code as "a vehicle designed and equipped to contain no more than two dwelling units, to be used without a permanent foundation."

Subdivided Lands Act

Defines a subdivsion as the division of land into five or more lots for the purpose of sale, lease or financing, whether now or in the future

Civil Rights Act of 1968 and 1988 Amendments

Laws stating that within consitutional limits, fair housing should prevail throughout the United States

Percentage Lease

Lease on the property, the rental for which is determined by the amount of business done by the lesse; usually a percentage of gross recipts from the business with provsion for minimum rental

Proposition 13

Limits real property taxes to one percent of the full cash value of the real property, plus an amount for local assessments and bonds

Clean Air Act

Requires businesses (including real estate devlopers) to meet air quality standards

Net lease

Sometimes referred as a triple net lease. The tenant pays rent along with the landlord's property taxes, hazard insurance, and maintence.

California Fair Housing Act (Rumford Act)

State law that forbids discrimination in the sale, rental, lease, or financing of practically all types of housing

Unruh Civil Rights Act

State law that makes it unlawful for peopel engaging in business in California, including real estate agents, to discriminate when providing business products or services.

Zoning

The act of city or county authorities specifying type of use to which property may be put in specific areas

Proration

The act of making an equitable distribution of expenses in escrow at the close of the sale

Standard Policy

The assurance that title is free and clear of all encumbrances of public record, other than the items revealed in the title examination and listed exceptions in the title policy.

Escrow

The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement or a contract; when everythign is deposited to enable carrying out out the instructions, it is called a complete or perfect escrow.

Estate at will

The occupation of lands and tenements by a tenant for an indefinite period, terminable by one or both parties without notice. Estates of will are not recognized in California

Risk

The possibility that you will lose all or part of your initial investment

Eminent Domain

The right of the government to acquire property for necessary public or quasi-public use by condemnation; the owner must be fairly compensated. The right of the government to do this and the right of the private citizen to get paid is spelled out in the Fifth Amendement to the U.S Constitution

Steering

The unlawful directing of a perspective buyer or tenant to certain neighborhoods or the refusal to tell them about the availability of hoising in another neighborhood

Commissioner's rules and regulation

These regulations detail the types of disciminatory conduct that, if practiced by a real estate licensee, are the basis for disciplinary action that can result in a suspension or fine even in prosecution by the district attorney.

Lease with option to buy

Under this type of contract the property is rented for a period of time, at the end which the lesse is given the right to purchase per set of agreed terms.

Boot

Unlike property recieved in an exchange that creates an income tax liability; for example, cash, notes, and personal property

Interpleader Action

When an escrow officer receives conflicting instruction that cannot be resolved by the parties, the escrow officer can file a legal action in court

CLTA policy

a standard title insurance policy developed by the California Land Title Association.