Real Estate Principles Flashcards
A buyer may appoint a real estate broker to be the _________ to find property for the buyer.
buyer’s agent
A person empowered to represent a principle in negotiating with a third party for the principles benefit.
Agent
In 1848, the ________ ended the war with Mexico, and California became a territory of the United States.
Treaty of Guadalupe Hidalgo
Shelving, counters, or cash registers used by a business but not sold as merchandise to customers is an example of what?
Trade Fixtures
What are the five tests of a fixture?
Method of attachment. Adaptability Relationship Intention Agreement
Benefits regarding use of water that are enjoyed by owners of land that borders on a river or another flowing water course.
Riparian Rights
The _______ is the right given to the state to give permission to a non riparian owner to take water from a river or lake.
Right of Appropriation
These were originally personal property but are now attached to the land in such a manner as to be considered part of the land itself.
Fixtures
Growing vegetables crops are sometimes referred to as…
Emblements
The right to own property.
The right to possess property.
The right to use property.
The right to enjoy property.
The right to encumber or borrow money on property.
The right to dispose of property.
The right to exclude those who do not share ownership of the property.
Bundle of Rights
Anything that, by right, is used by the land for its benefit and “ goes with the land. “
Appurtenant
A trade association that was formed in 1947 and consists of predominantly African-American real estate brokers.
REALTISTS
A trade group that provides education and information for their members and pursues political agendas that are favorable to real estate ownership.
REALTOR
The California ____________ is appointed by the governor and serves as the chief executive of the DRE.
Real estate commissioner
The sale or lease of business, including stock, trade fixtures, trade names, and goodwill is ?
A business opportunity
The largest real estate trade association that owns the nationally recognized designation REALTOR.
National Association of REALTORS
( NAR )
The state-affiliated group that provides services for California members is ?
The California Association of REALTORS
( CAR )
Priority of deeds is usually established by?
Date and time of recordation
Mr. & Mrs. Jones buy a home “ subject to “ on an existing loan. Which party is liable in case of default?
The seller is primarily liable
A claim against a C.L.T.A. policy would be valid for ?
Forgery in chain of title
A life tenant cannot……
Will it to their children
Recording a deed gives what type of notice?
Constructive Notice
(A) sells to (B) with no record of grant deed. Then (B) sells to (C) who records a grant deed. Who owns the property?
(A) still owns the property
The four broad forces that affect value are?
Physical, social, economic, and political
What is not a characteristic of a perfect market?
Government plays a large role
What is a TDS?
Transfer Disclosure Statement
California law that makes it unlawful for private parties to discriminate.
The Rumford Act
Which title insurance policy is most commonly used in California?
California
Land
Title
Association
C.L.T.A standard policyIn all cases a tenant may remove what three things?
Fixtures used for manufacture purposes, trade fixtures, affixed items of domestic use
A declaration of Homestead will become invalid if?
Declarant files another declaration of homestead on a new home.
For a grant deed to effectively transfer title it must?
Grant deed must be intentionally delivered and accepted.
When a broker has mixed the funds of his or her principal with the broker’s own money it is an example of?
Commingling
__________ is misappropriating and using the client’s money.
Conversion
A real estate broker representing both the seller and buyer in the same transaction with the knowledge and consent of both parties is called?
Dual Agency
A false statement about what the promiser is going to do in the future.
False Promise
A _________ relationship is one of loyalty, obedience, and confidentiality, and it obligates the agent to act in the principal’s best interest.
Fiduciary
One who has broad powers to act on behalf of the principle.
General agent
general agency
An individual is hired to accomplish results and little or no supervision is required.
Independent Contractor
Includes not only what was said but also the failure of a broker or salesperson to disclose a material fact about the property.
Misrepresentation
A person who is being represented by an agent in dealings with third persons.
A Principal
A program whereby the public can recover money when there are certain uncollectable court judgements obtained against a real estate licensee on the basis of fraud, misrepresentation, deceit, or conversion of trust funds in a transaction.
Recovery fund
A broker, who already has a higher offer from another buyer, makes a low offer, usually through a “dummy” purchaser. What is the difference called?
Secret profit
Another name for a real estate broker that is appointed buy a seller (principle)
Sellers Agent
When a real estate broker acts as an agent to only the seller or only the buyer. This is called?
Single Agency
A __________ has limited or well-defined powers, frequently confined to a single transaction.
Special Agent
Money or other items of value that an agent receives on behalf of a principal in the course of a real estate transaction that requires a license.
Trust funds
Areas that are easy to approach, enter, and use
Accessible areas
A three page form for agents to disclose their inspection findings.
Agent
Visual
Inspection (AVID)
Disclosure
A odorless, colorless gas that is toxic to humans and animals.
Carbon monoxide
A drug or chemical whose manufacture, possession, or use is regulated by a government.
Controlled substance
Used in the 1970’s as an insulation and is a preservative most known for preserving animals in biology and anatomy classes.
Formaldehyde
Another term for flooding.
inundation
A type of paint used prior to 1978 that causes developmental problems to children and infants if consumed.
Lead Based Paint
Anything that would affect the value of the property.
Material Fact
An illegally controlled substance that’s production especially can create soil contamination of property.
Methamphetamine
An organism that grows where there is a food source and water. Typically, it is found in humid, warm, dark conditions in a property.
Mold
A disclosure report regarding possible natural hazards,
Natural
Hazard (NHD)
Disclosure statement
A colorless, odorless radioactive gas that can be released from rock beneath the ground.
Radon Gas
To enter every habitable room, to spend time looking around to see if there is any evidence of a problem.
Reasonably competent
Something that indicates a problem.
Red flag
A saturated or partially saturated soil substantially loses strength and stiffness
soil liquefaction
A promise from one person is made in exchange for a promise from another person is an example of what kind of contract?
Bilateral contract
An agreement between two or more persons, consisting of a promise or mutual promises to perform or not to perform certain acts.
A contract
A _________ by the seller automatically does away with the buyer’s original offer and, in effect, is merely as offer made by the seller to the buyer.
Counter Offer
A listing where one broker is named in the contract. The named broker may cooperate with other brokers and agree to share his or her commission with them if they bring in a buyer.
An exclusive agency listing
A form of listing in which the broker is entitled to a commission no matter who sells the property, including the owner, during a specific time period.
Exclusive authorization and right-to-sell listing
In an _________, all parties have performed and fulfilled their obligations.
Executed contract
An ________ means that some act of the contract remains to be completed by one or more of the parties
Executory contract
A contract wherein the parties have agreed to perform an act or acts verbally or under a written agreement.
Expressed contract
The listing agreement to sell also establishes an agency relationship between the broker and the principle. This agency is referred to as a ___________
fiduciary relationship.
A method of discharging a contract wherein the parties have accomplished what they set out to do in the contract.
Full performance
A type of contract wherein the parties have not formally agreed verbally or through a written agreement to perform an act. Instead, they agree to perform by their actions rather than their words.
Implied Contract
The _______ is a listing service usually controlled by a group of brokers who are affiliated with a real estate association.
Multiple Listing Service
A listing where the seller stipulates a set sum of money that the seller wants regardless of the final sale price of the property.
Net Listing
A listing that can be given simultaneously to more than one agent.
Open Listing
A contract between the owner of a property and a potential purchaser.
An Option
A law created with the purpose to prevent perjury, forgery, and dishonest conduct on the part of unscrupulous people in proving the existence and terms of certain important types of contracts.
Statue of Frauds
The ________ states that you must begin the lawsuit within a legally prescribed time period.
Statue of Limitations
A contract that appears to be valid but cannot be sued upon.
Unenforceable
A contract that is created by only one party extending a promise without a reciprocal promise by another party.
Unilateral Contract
A _______ contract is one that is binding and enforceable in a court of law.
Valid
An agreement that the courts will not consider a contract.
Void
A contract exists where one of the parties has the option of proceeding with the contract or calling it off.
Voidable
Process of acquiring title to property that is added to your existing real estate.
Accession
Gradual accumulation of soil on property bordering a stream, a river, or an ocean shoreline is called?
Accretion
A formal declaration before a duly authorized officer by the person who signed a document, stating that the signature is voluntarily given and that he or she is the person whose signature appears on the document.
Acknowledgement
This occurs when a person affixes something to the land of another without an agreement permitting removal.
Addition of fixtures
A person appointed by the court to handle the estate when no will is left.
Administrator
The process by which title to another’s property is acquired without compensation.
Adverse Possession
Soil deposited by accretion; increase of earth on a shore or bank of a river.
Alluvion
This occurs when a river or stream, during a storm or earthquake, carries away a part of a bank and bears it to the opposite bank or to another part of the same bank.
Avulsion
The power of the state to take land from private ownership by due process of law.
Eminent Domain
Legal process whereby ownership of property reverts to the state due to lack of heirs or want of legal ownership.
Escheat
Person named in the will by the maker to handle the estate of the deceased.
Executor/Executrix
____________ takes place when a person holding a delinquent lien on a property institutes proceedings requesting the forced sale of property.
Foreclosure action
The most commonly used instrument for transferring title in real estate.
Grant Deed
A person who receives title.
Grantee
A person who gives the title.
Grantor
A document written, dated, and signed in its entirety in the handwriting of the maker. It requires no witness.
Holographic Will
A situation in which a person dies without leaving a will.
Intestate
This system of land location is used most often when the property in question is not covered by a recorded subdivision map or when the property is so irregular in shape that it is impractical to describe under the section and township system.
Metes and Bounds System
A court action wherein the co-owners of property may sue other co-owners for severance of their respective interests.
Partition Action
This occurs when an owner voluntarily conveys his or her ownership rights to another.
Private Grant
An action that takes place in superior court, and the estate property may be sold during the probate period for the benefit or the heirs or to cover court costs.
Probate
When a governmental agency deeds property to an individual or institution, it is called a _______.
Public Grant
A deed that carries no implied warranties and no after acquired title.
Quitclaim Deed
Established when persons meeting the criteria specified by Family Code section 297 file a Declaration of Domestic Partnership with the Secretary of State of California.
Registered Domestic Partnership
A preprinted form approved by the state in which a person merely fills in the blanks, usually without formal legal assistance.
Statutory Will
The handing down of property to another person.
Succession
This deed differs from others in that title is held by trustee merely as security for a loan until such time as the loan is paid off or until the borrower defaults on his or her payments.
Deed of Trust (Trust Deed)
