Real Estate Practice of Real Estate and Disclosures Flashcards
(124 cards)
1
Q
statement of deficiencies
A
A document a residential landlord presents
to a vacating tenant specifying any repairs
or cleaning to be completed by the tenant to
avoid deductions from the security deposit. [See
RPI Form 567-3]
2
Q
statement of deficiencies
A
A document a residential landlord presents
to a vacating tenant specifying any repairs
or cleaning to be completed by the tenant to
avoid deductions from the security deposit. [See
RPI Form 567-3]
3
Q
notice of nonresponsibility
A
A notice used by a landlord to declare that they
are not responsible for any claim arising out of
the improvement being constructed on their
property. [See RPI Form 597]
4
Q
prefabricated house
A
A house manufactured and sometimes partly
assembled before delivery to building site.
5
Q
security deposit
A
Security for the tenant’s default on obligations
agreed to in the rental or lease agreement. [See
RPI Form 550 §2.1 and 552 §1.2]
6
Q
rent skimming
A
When a speculator purchases a single family
residence (SFR), and collects and keeps rent
without making payments on the underlying
loan.
7
Q
radon gas
A
A naturally occurring gas which accumulates
in confined areas and poses a health risk to
occupants.
8
Q
orientation
A
Placing a structure on its lot with regard to its
exposure to the rays of the sun, prevailing winds,
privacy from the street and protection from
outside noises.
9
Q
material defect
A
Information about a property which might affect
the price and terms a prudent buyer is willing to
pay for a property
10
Q
surrender
A
A mutual cancellation of a lease agreement by
the landlord and the tenant, written or by their
conduct, when the tenant vacates the leased
premises. [See RPI Form 587]
11
Q
Transfer Disclosure
Statement
A
A mandatory disclosure prepared by a sellerin-
foreclosure and given to prospective buyers
setting forth any property defects known or
suspected to exist by the seller, generically called
a condition of property disclosure. [See RPI Form
304]
12
Q
unlawful detainer
A
The unlawful possession of a property. [See RPI
Form 575-578]
13
Q
negligence
A
Failure to correct a known dangerous condition
when under a duty to others to do so.
14
Q
quiet enjoyment
A
Right of an owner or tenant to the use of the
property without interference of possession.
15
Q
judgment lien
A
A money judgment against a property owner
that is recorded and attached to the title of their
properties.
16
Q
joist
A
A horizontal support running between a property’s
foundations, walls, or beams to support its ceiling
or floor.
17
Q
notice of entry
A
A written document giving a tenant advance
notice of a landlord’s intent to enter a tenant’s
unit to perform maintenance, make repairs or
inspect. [See RPI Form 567]
18
Q
acre
A
A measure of land equaling 160 square rods, or
4,840 square yards, or 43,560 square feet, or a
tract about 208.71 feet square.
19
Q
utilities
A
Refers to services rendered by public utility
companies, such as - water, gas, electricity,
telephone.
20
Q
Natural Hazard Disclosure
Statement
A
A report provided by a local agency or NHD
vendor and used by sellers and seller’s agents to
disclose natural hazards which exist on a property
held out for sale.
21
Q
backfill
A
Previously excavated material used to fill in
trenches around a property, such as against its
foundation
22
Q
statute of frauds
A
A state law, based on an old English statute,
requiring certain contracts to be in writing and
signed before they will be enforceable at law,
e.g.. contracts for the sale of real property,
contracts not be performed within one year.
23
Q
restoration
A
The return of funds and documents on a rescission
of a purchase agreement sufficient to place
all the parties in the position they held before
entering into the agreement.
24
Q
inventory
A
Properties available on the market through the
multiple listing service
25
flashing
Thin pieces of impervious material such as sheet
metal installed to prevent water seepage into a
structure from a joint.
26
incurable breach
Nonmonetary defaults that cannot be cured by
| a tenant. [See RPI Form 577]
27
marketing package
A property information package handed to
prospective buyers containing disclosures
compiled on the listed property by the seller’s
agent.
28
option
A right given for a consideration to purchase or
lease a property upon specified terms within a
specified time, without obligating the party who
receives the right to exercise the right.
29
multiple listing service (MLS)
An association of real estate agents providing
for a pooling of listings and the sharing of
commissions on a specified basis.
30
homestead
Dollar amount of equity in a homeowner’s
principal dwelling the homeowner qualifies to
exempt from creditor seizure. [See RPI Form 465]
31
abandonment
A tenant’s unilateral termination by forfeiture
delivered by the landlord based on notices from
the landlord. [See RPI Form 581]
32
beneficiary statement
A document issued by a lender on request noting
future payment schedules, interest rates and
balances on a mortgage assumed by an equity
purchase (EP) investor. [See RPI Form 415]
33
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.
34
earnest money
Down payment made by a purchaser of real
estate as evidence of good faith. A deposit or
partial payment.
35
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.
36
pure-net lease
A nonresidential lease in which a tenant assumes
absolutely all ownership duties. [See RPI Form
552-2 and 552-3]
37
novation
An agreement entered into by a lender, buyer
and seller shifting responsibility for a mortgage
obligation to the buyer (an assumption) and
releasing the seller of liability.
38
arbitration
A form of dispute resolution voluntarily agreed to
in contracts authorizing a third-party arbitrator to
issue a binding award which cannot be reviewed
and corrected by a court of law.
39
chattels
Goods or every species of property movable or
immovable which are not real property. Personal
property.
40
slander of title
False and malicious statements disparaging an
owner s title to property and resulting in actual
pecuniary damage to the owner.
41
quiet title
A court action to establish title to a property or
| remove a cloud from title.
42
security
Collateral for a loan in the form of a lien imposed
| on the property.
43
trespass
Any wrongful and unauthorized entry onto real
| estate in the possession of another.
44
errors and omissions
| insurance
An insurance policy protecting brokers and
agents from the full cost of defending against a
negligence claim made by a client.
45
real estate investment trust
A security traded on the stock market made up
of investments in income generating property,
trust deeds and government securities.
46
subordinate
To make subject to, or junior or inferior to.
47
waive
To relinquish, or abandon; to forego a right to
| enforce or require anything.
48
hip roof
The roof of a property that slopes on all four
| sides.
49
nuisance
An action which is injurious to health, offensive to
the senses, or obstructs the use and enjoyment
of surrounding property. [See RPI Form 550 §6.7
and 552 §7.3]
50
deferred maintenance
Existing but unfulfilled requirements for repairs
and rehabilitation. Postponed or delayed
maintenance causing decline in a building’s
physical condition.
51
bearing wall
A wall or partition which supports a part of a
| building, usually a roof or floor above.
52
legal description
The description used to locate and set boundaries
| for a parcel of real estate.
53
termination
The cancellation of a transaction before escrow
| has closed.
54
lead-based paint hazard
Any condition that causes exposure to lead from
lead-contaminated dust, soil or paint which has
deteriorated to the point of causing adverse
human health effects.
55
intestate
A person who dies having made no will, or one
which is defective in form, is said to have died
intestate, in which case the estate descends to
the heirs at law or next of kin.
56
common area
An entire common interest subdivision except
| the separate interests therein.
57
mediation
An informal, non-binding dispute resolution
voluntarily agreed to in which a third-party
mediator works to bring the disputing parties to
their own decision to resolve their dispute.
58
trade fixtures
Fixtures used to render services or make products
| for the trade or business of a tenant.
59
implied warranty of
| habitability
An unwritten provision in all residential lease
agreements requiring the landlord to provide
safe and sanitary conditions in the rental unit.
60
real property
Land and anything growing on, attached to, or
erected on it, excluding anything that may be
severed without injury to the land.
61
advance fees
A fee paid in advance of any services rendered.
Sometimes unlawfully charged in connection with
that illegal practice of obtaining a fee in advance for
the advertising of property or businesses for sale, with
no intent to obtain a buyer, by persons representing
themselves as real estate licensees, or representatives
of licensed real estate firms.
62
real estate
Land and anything permanently affixed or
| appurtenant to it.
63
business opportunity
The assets for an existing business enterprise
including its goodwill. As used in the Real Estate
Law, the term includes the sale or lease of the
business and goodwill of an existing business
enterprise or opportunity.
64
material fact
A fact is material if it is one which the agent should
realize would be likely to affect the judgment of
the principal in giving his or her consent to the
agent to enter into the particular transaction on
the specified terms.
65
```
constructive notice
(landlord/tenant)
```
To be charged with the knowledge observable or
recorded conditions exist on the property. When
a tenant occupies a property under a lease
agreement, a buyer is charged with constructive
notice of the tenant’s leasehold interest by the
occupancy.
66
guarantee
An agreement entered into by a person who is
not the borrower obligating that person as the
guarantor to pay a lender in full under a note if
the borrower defaults.
67
equity purchase transaction
A property transaction in which a one-to-four unit
residential property in foreclosure, occupied by
the owner as their principal residence, is acquired
for dealer, investment or security purposes by an
investor. [See RPI Form 156]
68
patent
Conveyance of title to government land
69
due diligence
The concerted and continuing efforts taken by
| an agent to meet the objectives of their client.
70
environmental hazards
Noxious or annoying man-made conditions
which are injurious to health or interfere with an
individual’s sensitivities.
71
breach
The breaking of a law, or failure of duty, either by
| omission or commission.
72
property management
A branch of the real estate business involving the
marketing, operation, maintenance and day-today
financing of rental properties.
73
grace period
The time period following the due date for a
payment during which payment received by the
lender or landlord is not delinquent and a late
charge is not due. [See RPI Form 550 §4.3 and
552 §4.7]
74
conservation easement
A voluntary conveyance of the right to keep
land in its natural or historical condition to a
conservation organization or government
agency.
75
percentage lease
A nonresidential lease agreement for a retail
operation that sets the total amount of rent the
tenant will pay as a percentage of the tenant’s
gross sales. [See RPI Form 552-4]
76
bulk sale
The transfer of more than one-half the inventory
of a business’ materials or goods to a person
other than the business’ customers.
77
notice to pay rent or quit
A notice served on a tenant by the landlord
which states the amount of delinquent rent
and any other delinquent amounts owed the
landlord. [See RPI Form 575 and 575-1]
78
notice to vacate
A written document used by a tenant or a
landlord to terminate a periodic tenancy. [See
RPI Form 569 and 569-1]
79
metes and bounds
A term used in describing the boundary lines
of land, setting forth all the boundary lines
together with their terminal points and angles.
Metes (length or measurements) and Bounds
(boundaries) description is often used when a
great deal of accuracy is required.
80
specific performance
An action to compel performance of an
agreement, e.g., sale of land as an alternative
to damages or rescission.
81
depreciation
Loss of value of property brought about by age,
physical deterioration or functional or economic
obsolescence. The term is also used in accounting
to identify the amount of the decrease in value
of an asset that is allowed in computing the
value of the property for tax purposes.
82
amenities
Satisfaction of enjoyable living to be derived
from a home; conditions of agreeable living
or a beneficial influence from the location
of improvements, not measured in monetary
considerations but rather as tangible and
intangible benefits attributable to the property,
often causing greater pride in ownership.
83
mechanic’s lien
A lien created by statute which exists against real
property in favor of persons who have performed
work or furnished materials for the improvement
of the real property.
84
lis pendens
A notice filed or recorded for the purpose of
warning all persons that the title or right to the
possession of certain real property is in litigation;
literally suit pending; usually recorded so as to
give constructive notice of pending litigation.
85
wear and tear
Depreciation of an asset due to ordinary usage
86
sublease
A leasehold interest subject to the terms of a
| master lease.
87
blockbusting
The prohibited practice of a residential landlord
inducing or attempting to induce a person
to offer, or abstain from offering a dwelling to
prevent the entry of certain classes of people
into a neighborhood.
88
statute of limitations
A period of time establishing the deadline for
| filing a lawsuit to resolve a dispute.
89
notice to perform or quit
A notice requiring a tenant to perform an action
to remedy a curable nonmonetary breach of
the lease agreement. [See RPI Form 576]
90
joint pre-expiration
| inspection
An inspection conducted by a residential
landlord to advise a tenant of the repairs the
tenant needs to perform to avoid deductions
from the security deposit. [See RPI Form 567-1]
91
subrogation
Replacing one person with another in regard
to a legal right or obligation. The substitution of
another person in place of the creditor, to whose
rights he or she succeeds in relation to the debt.
The doctrine is used very often where one person
agrees to stand surety for the performance of a
contract by another person.
92
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.
93
closing
(l) Process by which all the parties to a real estate
transaction conclude the details of a sale or mortgage.
The process includes the signing and transfer of
documents and distribution of funds. (2) Condition in
description of real property by courses and distances
at the boundary lines where the lines meet to include
all the tract of land.
94
ratification
The adoption or approval of an act performed on
behalf of a person without previous authorization,
such as the approval by a principal of previously
unauthorized acts of an agent, after the acts
have been performed.
95
delinquency (landlord/
| tenant)
A tenant’s failure to pay the agreed rents on or
before the due date or before the expiration of
the grace period set forth in the rental or lease
agreement.
96
obsolescence
Loss in value due to reduced desirability and
usefulness of a structure because its design and
construction become obsolete; loss because of
becoming old-fashioned and not in keeping with
modern needs, with consequent loss of income.
May be functional or economic.
97
limited liability company
An organization formed for the purpose of group
investment. The members of an LLC are not liable
for the LLC’s debts and obligations.
98
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.
99
material breach
Failure to pay rent or perform other significant
obligations called for in the rental or lease
agreement. [See RPI Form 577]
100
homeowners’ association
| HOA
An organization made up of owners of units
within a common interest development (CID)
which manages and operates the project
through enforcement of conditions, covenants
and restrictions (CC&Rs).
101
procuring cause
That cause originating from a series of events that,
without break in continuity, results in the prime
object of an agent’s employment producing
a final buyer; the real estate agent who first
procures a ready, willing, and able buyer for the
agreed upon price and terms and is entitled to
the commission.
102
nuisance per se
Any activity specifically declared by statute to be
a nuisance, such as fences of excessive height or
the illegal sale of controlled substances.
103
assessment
The valuation of property for the purpose of
levying a tax or the amount of the tax levied. Also,
payments made to a common interest subdivision
homeowners’ association for maintenance and
reserves.
104
void
To have no force or effect; that which is
| unenforceable.
105
automatic homestead
The dollar amount of equity in a homeowner’s
principal dwelling the homeowner is automatically
qualified to exempt from creditor seizure. Also
known as a statutory homestead exemption.
106
tenant improvements
Improvements made to a rented property to
meet the needs of the occupying tenant. [See
RPI Form 552 §11]
107
estoppel
A legal theory under which a person is barred
from asserting or denying a fact because of the
person’s previous acts or words.
108
parcel
A three-dimensional portion of real estate
| identified by a legal description.
109
pro rata
In proportion; according to a certain percentage
| or proportion of a whole.
110
fixture
```
Appurtenances attached to the land or
improvements, which usually cannot be
removed without agreement as they become
real property; examples plumbing fixtures, store
fixtures built into the property, etc
```
111
habitable condition
The minimum acceptable level of safety and
| sanitation permitted in a residential rental.
112
common area
| maintenance charge
Property operating expenses incurred by a
nonresidential landlord and paid by the tenant
as rent additional to the base rent, adjustments
and percentages. [See RPI Form 552 §6]
113
escrow
The depository process employed to facilitate
the gathering of instruments and funds for use
to transfer real estate interests between two
persons.
114
periodic tenancy
A leasehold interest which lasts for automatic
successive rental periods of the same length of
time, terminating upon notice from either party.
[See RPI 551 and 552-5]
115
judgment
The final determination of a court of competent
jurisdiction of a matter presented to it; money
judgments provide for the payment of claims
presented to the court, or are awarded as
damages, etc.
116
buy-to-let investment
Long-term income property investment.
117
eviction
An unlawful detainer action filed to physically
| remove a tenant from actual possession.
118
single family residence
A housing structure maintained and used as a
single dwelling unit. A single family residence may
share walls with another dwelling unit, provided it
has direct access to a street and does not share
an essential facility or service with any other
dwelling unit.
119
ready, willing and able
| buyer
One who is fully prepared to enter into the
contract, really wants to buy, and unquestionably
meets the financing requirements of purchase.
120
certificate of sale
A certificate issued to the successful bidder on
| the completion of a judicial sale.
121
notice to quit
A notice to vacate served on a tenant for an
incurable breach of a rental or lease agreement
or due to a statutory breach. [See RPI Form 577]
122
personal property
Moveable property which is not classified as real
| estate, such as trade fixtures.
123
waste
The intentional destruction or neglect of property
which diminishes its value. [See RPI Form 550 §6.8
and 552 §7.4]
124
operating expenses
The total annual cost incurred to maintain and
operate a property for one year. [See RPI Form
352 §3.21]
