Duane Gomer P-S

seasoned loan.

A loan on which the borrower has consistently made payments when due for an extended period of time.

patent

Conveyance of title to government land.

Proposition 13

A 1979 California state constitutional amendment restricting property tax increases in years following acquisition by limiting annual increases in assessed value of real estate to no more than 2%, or the rate of consumer inflation if less.

Subdivision Map Act.

A California subdivision law stating conditions for the approval of a subdivision map and requiring local governments to enact ordinances directly controlling the types of subdivisions projects permitted and the physical improvements to be installed.

Real Estate Law

A collection of 29 codes in California civil law governing real estate practice licensed under the Business and Professions Code and in the Government Code.

percentage lease

A commercial lease agreement for a retail oneration that sets the total amount of rent the tenant will pay as a percentage of the tenant's gross sales.

Regulation Z (Reg Z)

A component of the Truth-in-Lending Act requiring consumer mortgage lenders to timely disclose a loan's annual percentage rate and all associated costs to potential borrowers, enabling borrowers to competitively shop for loans.

quiet title

A court action to establish title to a property or remove a cloud from title.

Probate sale

A court managed sale of a property during the probate process.

reconveyance.

A document executed by a trustee named in a trust deed to release the trust deed lien from title to real estate, used when the secured debt is fully paid.

promissory note

A document given as evidence of a debt owed by one person to another.

quitclaim deed

A document used to convey whatever interest, if any, the grantor may hold in the real estate.

points

A fee charged by a mortgage lender as prepaid interest which in turn reduces the note rate on the mortgage, with a point equaling 1% of the amount of the mortgage.

referral fee.

A fee paid by one service provider to another for referring a client to them, Prohibited by the Real Estate Settlement Procedures Act when consumer financing funds the purchase of a one-to-four unit residential property.

reversionary interest.

A future interest a person retains on the grant of property which reverts to the person on the Occurrence of an event.

single family residence (SFR).

A housing structure, attached or detached, maintained and used as a single dwelling unit.

specific performance

A judicial action to compel another to perform an agreement, e.g., sale of land as an alternative to money losses or rescission.

sublease

A leasehold interest subject to the terms of a master lease.

periodic tenancy

A leasehold interest which continues automatically for successive rental periods each for the same length of time, terminating upon notice from either party.

Special assessment

A lien against real estate by a public authority to pay the cost of public improvements such as street lights, sidewalks, street improvements. In a common interest subdivision, an additional charge levied by the association for unanticipated repairs.

return on investment

A measure of annual income or profits on a sale in relation to capital invested.

radon gas

A naturally occurring gas which accumulates in confined areas at ground level and poses a health risk to occupants.

straight note

A note calling for the entire amount of its principal to be paid together with accrued interest in a single lump sum when the principal is due.

riparian land,

A parcel of real estate located next to a water source with surface water and within the watershed of the surface water.

Statute of Limitations

A period of time establishing the deadline for filing a lawsuit to resolve a dispute.

principal

A person, an individual or an entity, acting as a buver or seller, represented by a broker and their agents.

section.

A portion of land established by government survey which contains 640 acres and is one mile square.

redemption

A property owner or junior lienholder's right to clear title to property of a trust deed ien prior to the completion of the trustee's sale by paying all amounts due on the note and trust deed, including forclosure charges.

regression, principle of

A real estate valuation theory which holds the worth of a greater valued property is negatively affected by the close proximity of numerous lesser valued comparable properties.

preliminary title report (prelim)

A report constituting a revocable offer by a title insurer to issue a policy of title insurance used by a buyer and escrow to initially establish the current vesting and encumbrances attached to title of a property as reflected by public record.

Structural Pest Control report

A report disclosing any active infestations, damage from infestations or conditions which may lead to infestations.

property profile

A report from a title company providing information about a property's ownership, encumbrances, use restrictions and comparable sales data.

real estate investment trust.

A security traded on the stock market made up of investments in income generating property, trust deeds and government securities.

power of attorney

A temporary authority granted to an individual to perform activities during a period of the owner's incapacity or travel.

planned unit development (PUD)

A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.

plottage

A term used in appraising to designate the increased value of two or more contiguous lots when they are joined under single ownership and available for use as a larger single lot. Also called assemblage.

red flag

A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.

subordination.

An agreement entered into by a mortgage holder to permit their security interest in title to the mortgaged property to take an inferior position to another encumbrance.

puffing

An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.

servient tenement.

An owner's property whose title is burdened by an easement which limits the owner's use of the portion of the property subject to the easement.

steering.

An unlawful housing practice that includes words or actions by a real estate sales licensee intended to influence the choice of a prospective buyer or tenant. A violation of federal fair housing provisions that seek to eliminate discrimination in the sale or rental of housing.

panic selling

As with blockbusting, the prohibited discriminatory practice of a real estate licensee inducing a property owner to list a property for sale by suggesting that a change in neighborhood demographics will cause a loss in property values.

Statute of Frauds.

California state law requiring specific types of contracts to be in writing and signed by the person to be charged with performance before they will be enforceable by a court, e.g. purchase agreements and lease agreements for a term of more than one year.

private mortgage insurance (PMI).

Default mortgage insurance coverage provided by private insurers for conventional loans with loan-to-value ratios higher than 80%.

property

Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is classified into two groups, personal property and real property.

redlining

Failure to provide financing or insurance in certain communities based on the demographics of that community.

Real Estate Recovery Fund

Funds available to individuals who have obtained a final-court judgment against a licensee and are unable to recover the judgement from the licensee. Also, known as the Consumer Recovery Account.

Subdivided Lands Law

Government regulations that empower the Real Estate Commissioner to approve a public report for the sale of property divided and developed by land owners.

real property

Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land.

real estate

Land and anything permanently affixed or appurtenant to it.

Real Estate Settlement Procedures Act (RESPA)

Legislation prohibiting brokers from giving or accepting referral fees if the broker or their agent is alreadt acting as a transaction agent in the sale of a 1-4 unit residental property which is being funded by a purchase-assist, federally-related consumer mortgage.

rent control

Local ordinances that are reasonably related to the prevention of excessive rents and maintaining the availability of existing housing.

personal property

Moveable property which is not classified as real estate, such as trade fixtures and furnishings.

severalty

Ownership by one person.

passive income

Profits and losses from rental real estate, operations and sales, and from non-owner-operated businesses designated for income tax reporting purposes.

proration

Provisions entitling the seller to a credit for the portion of prepaid sums which have not accrued on obligations a buyer assumes on the day escrow closes, or entitling the buyer to a credit for amounts assumed which accrued unpaid through the day prior to the close of escrow.

procuring cause

That cause originating from a series of events that, without break in continuity, results in an agent producing a final buyer under an' agency employment; the real estate agent who first procures a ready, willing, and able buyer for the agreed upon price and terms entitling them to a fee.

site valuation

The appraised valuation of the ground (site) separate from any structure (improvement) that may be on the site.

single agency.

The buver's agent who is paid their fee on a transaction by their buyer client, and does not fee split or otherwise share in the fee received by the sellers broker.

police power

The constitutional source of the state or local government's authority to act.

replacement cost

The cost to replace a structure with one having utility equivalent to that being appraised, but constructed with modern materials and according to current standards, design and layout.

reconciliation.

The final step in the appraisal process. Placing weight on the alternative value conclusions, to arrive at a final value decision.

reversion.

The interest which a person has in land or other property which is received on termination of the preceding estate.

purchase agreement.

The primary document used as a checklist to negotiate a real estate sales transaction between a buyer and seller.

recording

The process of placing a document on file with the Recorder for a county as the designated public official for public notice.

riparian rights

The right of a real estate owner to take surface water from a running water source contiguous to their land.

right of survivorship.

The right of surviving joint tenants or a spouse with a community property vesting including the right of survivorship to succeed to the entire interest of the deceased co-owner.

prescriptive easement

The right to use another's property established by the adverse use of the property for a period in excess of five years without a claim of ownership.

prescriptive right

The right to use water established by appropriating nonsurplus water openly and adversely for an uninterrupted period of five years without documentation of a legal right.

parties (party)

Those persons taking part in a transaction as principals, e.g., seller, buyer, or lender in a real estate transaction.

renunciation

When an individual who has been granted something or has accepted something later gives it up or rejects it, as occurs when an agent withdraws from an agency relationship.

revocation.

When the person making an offer withdraws their offer prior to delivery of the signed acceptance.

pro rata

proportion; according to a percentage or proportion of a whole, such as annual property taxes, based on part of a month or year.