Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CA Real Estate > From Principles Workbook Unit 3 > Flashcards

From Principles Workbook Unit 3 Flashcards

1
Q

title to real property is held by one person or entity

A

ownership in severalty. can be owned by one individual or by a single entity (a corp, partnership, LLC or REIT)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

when two or more people own a property

A

called concurrent ownerships or co-ownership. two most common forms are tenancy in common or joint tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

difference between tenants in common and joint tenancy

A

joint tenancy has right of survivorship… TIC doe snot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is a cooperative?

A

building owned by a corporation. each resident owns shares of stock in the corp and has a proprietary lease in the individual unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

a deed is the document used to

A

transfer real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

a valid deed must identify:

A
  • the parties
  • have a competent grantor
  • contain words of conveyance
  • contain a legal description of the property
  • state teh consideration that was given
  • be properly executed
  • be delivered and accepted
  • must be in writing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the three main types of deeds?

A
  • grant deed
    gift deed
    quitclaim deed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

grant deed implies

A

certain implied (unwritten) warranties. this deed provides the greatest protection for a grantee(typically the buyer who is receivign title to real property)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

quitclaim deed conveys

A

no warranties of any kind. it simply conveys whatever itnerest the grantor has when the deed is delivered. a quitclaim deed may be used as a “problem solveR’ to clear clouds on the title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

adverse possession must be

A

open, continuous, exclusive, actual, and notorious (Hostile) for a period of 5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

ownership by married couples or couples registered under domestic partnership law

A

community partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

act of conveyign real estate ownership

A

alienation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

private grant

A

is from individuals, using a deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

public grant

A

is from the government to individuals, using a land patent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

dedication

A

is from individuals to teh government.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

purpose of a deed

A

the voluntary transfer of an interest in property between the giver/grantor and the receiver/grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

a seller of real property will always be required to provide a

A

written deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

every deed conveys

A

whatever interest is held by the grantor, unless it specifically states that it is conveying a lesser interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

competent grantor is

A

18 years old and sane and sober

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

seller is

A

grantor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

buyer is

A

grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

essential elements of a valid deed are:

A
  • competent grantor
  • execution by the grantor (all parties)
  • identifiable grantee (need not be competent)
  • delivery to and acceptance by the grantee
  • description of land (prop description)
  • consideration
  • words of conveyance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

when does title pass?

A

upon acceptance of the grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what does a deed need to be effective and transfer title?

A

Delivered & accepted!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what are the four voluntary deeds?

A
  • grant deed
  • quitclaim deed
  • gift deed
  • warranty deed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

waht are three involuntary deeds?

A
  • sheriff’s deed
  • tax deed
  • trustee’s deed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

characteristics of grant deed

A
  • implied warranties
  • most common in CA
  • grantor has disclosed all encumbrances
  • conveys after-acquired title
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

characteristics of quitclaim deed

A
  • best for the grantor
  • no covenants or warranties “what i’ve got you got”
  • used to clear clouds on title (problem-solver)
  • used when grantor wants no future claims or liability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

a trustee or sheriff’s deed transfers title at

A

the end of a foreclosure proceeding or statutory redemption period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

a reconveyance deed is used

A

to restore the title to the trustor when they pay off a loan secured by a deed of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

a warranty deed has

A

expressed (written) warranties. it is used in some states instead of title insurance.

32
Q

testate

A

transfer by will

33
Q

devise is the act of

A

transferring a deceased person’s interest in real estate to another

34
Q

bequest is the act of

A

transferring a deceased person’s interest in personal property to another

35
Q

three types of wills are:

A
  • holographic will
  • nuncupative will is an oral will made in contemplation of death
  • a witnessed will
36
Q

will written in testator’s own hand writing

A

holographic will

37
Q

an oral will made in contemplation of death

A

nuncupative will

38
Q

witnessed by two disintersted third parties

A

witnessed will

39
Q

intestate succession

A

no will & determined by State of CA

40
Q

adverse possion - five key elements

A
  • open and notorious
  • hostile to ethe true owner’s title
  • under claim of right of color of title
  • continuous and uninterrupted for a period of five yeras
  • payment of all real property taxes for a period of five yeras
41
Q

easement by prescription terminates

A

after non-use for five years

42
Q

transfer tax is

A

55 cents per $500. paid on total purchase price less any existing loans that are assumed

43
Q

subordination is a clause in a

A

mortgage/deed of trust or agreement in which an existin glender permits the lender’s right of priority to tak ea subordinate (lower) position to future encumbrances against the property.

44
Q

chain of title is

A

a history of successive ownership documents linked together

45
Q

when is title clouded?

A

when errors or missing documents are found in a title search (a broken chain)

46
Q

title insurance is

A

the best method for insuring marketable title

47
Q

Owner’s CLTA

A

California Land Title Association (Title Insurance)

48
Q

extended title policy

A

Owner’s ALTA (American Land Title Association)

49
Q

alta policy is typically required by

A

lenders

50
Q

alta policies cover

A
  • unrecorded tax, assessment, and mechanics’liens and easements
  • water rights and mining claims
  • items that are not a matter of public record but would be revealed by a physical inspection (rights of parties in possession, encumbrances, encroachments, adverse possession
51
Q

Process for Suit to Quite Title

A
  • a court hearing to determine ownership, recognize other valid claims and “quiet” invalid claims.
  • used to clear clouded title
  • establishes ownership under adverse possession
  • notice sent to interested parties (lis pendens) - recorded notice of a pending lawsuite affecting title to a property
  • cour hears and judges claims - once the court order is recorded, title is cleared.
52
Q

What kinds of deducations are there for a first or second residence?

A
  • property taxes
  • mortgage interest
  • points paid on laons used to improve or acquire
  • Some loan origination fees (points, originatoin, interest and taxes are deductible)
53
Q

Short term gains on property held fo r12 months or less is taxed at

A

ratepayer’s ordinary income tax

54
Q

long term gain on property held fo rmore than 12 months is taxes

A

at a different rate than ordinary income

55
Q

Taxation of gain on asle of principal residence

A

gain can be excluded from taxation - $250K maximum if single taxpayer, $500K if married or filing jointly.
tax payer must own and occupy for at least 2 of the 5 years before the sale - doesn’t have to be sequential.

56
Q

Depreciation is

A

a tax advantage of owning business and investment real estate may be depreciation on personal taxes. this offsets the lack of liquidity in real estate

57
Q

Does land depreciate?

A

no!

58
Q

Resdiential rental property dpreication allowance is

A

27.5 years

59
Q

commercial property depreciation allowance is

A

39 years

60
Q

the amount of depreciation is determined by

A

straight line

61
Q

1031 exchanges are used by investors and bus property owners to

A

defer payment of capital gains taxes on investment properties

62
Q

california property taxes are

A
  • limited by prop 13

- 1% of assessed value, plus voter-approved indebtedness

63
Q

assessment increases are limited to a maximum of

A

2% per year unless a reassessment occurs

64
Q

what are reassessment events?

A
  • ownership changes

- property improvements

65
Q

property tax calendar is based on

A

the fiscal year and runsf rom July 1 to June 30

66
Q

taxes become a lien on

A

January 1 preceding the tax year

67
Q

property taxes are paid in

A

2 installments

68
Q

the first property tax installment is due on

A

november 1

69
Q

the first installment is delinquent on

A

december 10

70
Q

the second installment is due on

A

february 1

71
Q

the second installment is delinquent on

A

april 10

72
Q

do deeds need to be recorded to be valid?

A

No

73
Q 
Conveyance of title occurs at the moment the
A) deed is accepted by the grantee
B) Deed is recorded
C) Grantor receives teh consideration
D) Deed is signed by the grantor
A

A) deed is accepted by the grantee

74
Q

In a condominum, all unit owners are

A

tenants in common

75
Q 
A deed that has not been recorded may NOT provide:
A. Competent parties
B. Constructive Notice
C. Actual Notice
D. A valid document
A

B. Constructive Notice

A deed that has not been recorded lacks constructive notice, which is also known as legal notice.

CA Real Estate (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions