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.