Real Estate Principles Flashcards
(275 cards)
1
Q
A buyer may appoint a real estate broker to be the _________ to find property for the buyer.
A
buyer’s agent
2
Q
A person empowered to represent a principle in negotiating with a third party for the principles benefit.
A
Agent
3
Q
In 1848, the ________ ended the war with Mexico, and California became a territory of the United States.
A
Treaty of Guadalupe Hidalgo
4
Q
Shelving, counters, or cash registers used by a business but not sold as merchandise to customers is an example of what?
A
Trade Fixtures
5
Q
What are the five tests of a fixture?
A
Method of attachment. Adaptability Relationship Intention Agreement
6
Q
Benefits regarding use of water that are enjoyed by owners of land that borders on a river or another flowing water course.
A
Riparian Rights
7
Q
The _______ is the right given to the state to give permission to a non riparian owner to take water from a river or lake.
A
Right of Appropriation
8
Q
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.
A
Fixtures
9
Q
Growing vegetables crops are sometimes referred to as…
A
Emblements
10
Q
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.
A
Bundle of Rights
11
Q
Anything that, by right, is used by the land for its benefit and “ goes with the land. “
A
Appurtenant
12
Q
A trade association that was formed in 1947 and consists of predominantly African-American real estate brokers.
A
REALTISTS
13
Q
A trade group that provides education and information for their members and pursues political agendas that are favorable to real estate ownership.
A
REALTOR
14
Q
The California ____________ is appointed by the governor and serves as the chief executive of the DRE.
A
Real estate commissioner
15
Q
The sale or lease of business, including stock, trade fixtures, trade names, and goodwill is ?
A
A business opportunity
16
Q
The largest real estate trade association that owns the nationally recognized designation REALTOR.
A
National Association of REALTORS
( NAR )
17
Q
The state-affiliated group that provides services for California members is ?
A
The California Association of REALTORS
( CAR )
18
Q
Priority of deeds is usually established by?
A
Date and time of recordation
19
Q
Mr. & Mrs. Jones buy a home “ subject to “ on an existing loan. Which party is liable in case of default?
A
The seller is primarily liable
20
Q
A claim against a C.L.T.A. policy would be valid for ?
A
Forgery in chain of title
21
Q
A life tenant cannot……
A
Will it to their children
22
Q
Recording a deed gives what type of notice?
A
Constructive Notice
23
Q
(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
(A) still owns the property
24
Q
The four broad forces that affect value are?
A
Physical, social, economic, and political
25
What is not a characteristic of a perfect market?
Government plays a large role
26
What is a TDS?
Transfer Disclosure Statement
27
California law that makes it unlawful for private parties to discriminate.
The Rumford Act
28
Which title insurance policy is most commonly used in California?
```
California
Land
Title
Association
C.L.T.A standard policy
```
29
In all cases a tenant may remove what three things?
Fixtures used for manufacture purposes, trade fixtures, affixed items of domestic use
30
A declaration of Homestead will become invalid if?
Declarant files another declaration of homestead on a new home.
31
For a grant deed to effectively transfer title it must?
Grant deed must be intentionally delivered and accepted.
32
When a broker has mixed the funds of his or her principal with the broker's own money it is an example of?
Commingling
33
__________ is misappropriating and using the client's money.
Conversion
34
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
35
A false statement about what the promiser is going to do in the future.
False Promise
36
A _________ relationship is one of loyalty, obedience, and confidentiality, and it obligates the agent to act in the principal's best interest.
Fiduciary
37
One who has broad powers to act on behalf of the principle.
General agent
| general agency
38
An individual is hired to accomplish results and little or no supervision is required.
Independent Contractor
39
Includes not only what was said but also the failure of a broker or salesperson to disclose a material fact about the property.
Misrepresentation
40
A person who is being represented by an agent in dealings with third persons.
A Principal
41
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
42
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
43
Another name for a real estate broker that is appointed buy a seller (principle)
Sellers Agent
44
When a real estate broker acts as an agent to only the seller or only the buyer. This is called?
Single Agency
45
A __________ has limited or well-defined powers, frequently confined to a single transaction.
Special Agent
46
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
47
Areas that are easy to approach, enter, and use
Accessible areas
48
A three page form for agents to disclose their inspection findings.
Agent
Visual
Inspection (AVID)
Disclosure
49
A odorless, colorless gas that is toxic to humans and animals.
Carbon monoxide
50
A drug or chemical whose manufacture, possession, or use is regulated by a government.
Controlled substance
51
Used in the 1970's as an insulation and is a preservative most known for preserving animals in biology and anatomy classes.
Formaldehyde
52
Another term for flooding.
inundation
53
A type of paint used prior to 1978 that causes developmental problems to children and infants if consumed.
Lead Based Paint
54
Anything that would affect the value of the property.
Material Fact
55
An illegally controlled substance that's production especially can create soil contamination of property.
Methamphetamine
56
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
57
A disclosure report regarding possible natural hazards,
Natural
Hazard (NHD)
Disclosure statement
58
A colorless, odorless radioactive gas that can be released from rock beneath the ground.
Radon Gas
59
To enter every habitable room, to spend time looking around to see if there is any evidence of a problem.
Reasonably competent
60
Something that indicates a problem.
Red flag
61
A saturated or partially saturated soil substantially loses strength and stiffness
soil liquefaction
62
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
63
An agreement between two or more persons, consisting of a promise or mutual promises to perform or not to perform certain acts.
A contract
64
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
65
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
66
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
67
In an _________, all parties have performed and fulfilled their obligations.
Executed contract
68
An ________ means that some act of the contract remains to be completed by one or more of the parties
Executory contract
69
A contract wherein the parties have agreed to perform an act or acts verbally or under a written agreement.
Expressed contract
70
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.
71
A method of discharging a contract wherein the parties have accomplished what they set out to do in the contract.
Full performance
72
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
73
The _______ is a listing service usually controlled by a group of brokers who are affiliated with a real estate association.
Multiple Listing Service
74
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
75
A listing that can be given simultaneously to more than one agent.
Open Listing
76
A contract between the owner of a property and a potential purchaser.
An Option
77
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
78
The ________ states that you must begin the lawsuit within a legally prescribed time period.
Statue of Limitations
79
A contract that appears to be valid but cannot be sued upon.
Unenforceable
80
A contract that is created by only one party extending a promise without a reciprocal promise by another party.
Unilateral Contract
81
A _______ contract is one that is binding and enforceable in a court of law.
Valid
82
An agreement that the courts will not consider a contract.
Void
83
A contract exists where one of the parties has the option of proceeding with the contract or calling it off.
Voidable
84
Process of acquiring title to property that is added to your existing real estate.
Accession
85
Gradual accumulation of soil on property bordering a stream, a river, or an ocean shoreline is called?
Accretion
86
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
87
This occurs when a person affixes something to the land of another without an agreement permitting removal.
Addition of fixtures
88
A person appointed by the court to handle the estate when no will is left.
Administrator
89
The process by which title to another's property is acquired without compensation.
Adverse Possession
90
Soil deposited by accretion; increase of earth on a shore or bank of a river.
Alluvion
91
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
92
The power of the state to take land from private ownership by due process of law.
Eminent Domain
93
Legal process whereby ownership of property reverts to the state due to lack of heirs or want of legal ownership.
Escheat
94
Person named in the will by the maker to handle the estate of the deceased.
Executor/Executrix
95
____________ takes place when a person holding a delinquent lien on a property institutes proceedings requesting the forced sale of property.
Foreclosure action
96
The most commonly used instrument for transferring title in real estate.
Grant Deed
97
A person who receives title.
Grantee
98
A person who gives the title.
Grantor
99
A document written, dated, and signed in its entirety in the handwriting of the maker. It requires no witness.
Holographic Will
100
A situation in which a person dies without leaving a will.
Intestate
101
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
102
A court action wherein the co-owners of property may sue other co-owners for severance of their respective interests.
Partition Action
103
This occurs when an owner voluntarily conveys his or her ownership rights to another.
Private Grant
104
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
105
When a governmental agency deeds property to an individual or institution, it is called a _______.
Public Grant
106
A deed that carries no implied warranties and no after acquired title.
Quitclaim Deed
107
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
108
A preprinted form approved by the state in which a person merely fills in the blanks, usually without formal legal assistance.
Statutory Will
109
The handing down of property to another person.
Succession
110
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)
111
The ______________ establishes monuments as points of beginning.
U.S. government survey system
112
Under this the grantor is legally responsible to the grantee for the condition of the title.
Warranty Deed
113
A formal typewritten document signed by the individual who is making it, wherein he or she declares in the presence of at least two witnesses that it is his or her will.
Witnessed Will
114
A form of ownership held by more than one person, but in this case, the property can be held by married spouses or by registered domestic partners.
Community Property
115
The degree, quantity, nature, and extent of interest a person has in a property.
Estate
116
If the person granting the life estate designates that the title is to go to some other person upon the death of the life estate holder, the person so designated is said to have an ______________.
Estate in remainder
117
If the property is to be returned to the person who gave the life estate or to his or her heirs, that person is said to have an ___________.
estate in reversion
118
________________, which the owner holds without any qualifications of limitations, such as private deed restrictions.
Fee simple absolute
119
The owner holds subject to special conditions, limitations, or private deed restrictions that limit the use of the property.
Fee simple qualified
120
One's interest as an owner of real property.
freehold estate
121
This exists when two or more persons are joint and equal owners of the same undivided interest in real property.
Joint Tenancy
122
Interests held by tenants who rent or lease property.
Less-than-freehold estates
123
This is created by deed or will for the life of one or more designated human beings.
Life Estates
124
Created during a person's lifetime to avoid probate proceedings.
Living Trust
125
When a person acquires real property and holds title solely in his or her own name, it is technically known as?
ownership in severalty
126
This means that if one tenant dies, the surviving joint tenant(s) acquire the deceased's interest without a court action such as probate.
right of survivorship
127
Property owned by a husband or wife or registered domestic partners that is not community property; property acquired by either spouse or registered domestic partners prior to marriage or registered domestic partnership or by gift or device after marriage or domestic partnership.
Separate property
128
When two or more persons are owners of an undivided interest in property, they can hold title as ________.
Tenancy in common
129
This exists when two or more persons, as partners, pool their interests, assets, and efforts in a business venture, with each to share in the profits or the losses.
Tenancy in partnership
130
A legal process whereby property, personal or real, is seized pending the outcome of a court action.
Attachment
131
A restriction that places limitation on the grantee's ownership.
Condition
132
A promise or an agreement on the part of the individual accepting it to do or not do certain things.
Covenant
133
The property that benefits from the use of the easement.
dominant tenement
134
When an easement, "runs with the land," it is considered?
easement appurtenant
135
___________ allow someone to pass over the land for personal use, not to reach an adjoining parcel of land.
easement in gross
136
An ________ is the wrongful extension of a building or improvement on or over the land of another.
Encroachment
137
Anything that burdens the owner's title with a legal obligation.
encombrance
138
An involuntary lien that applies to all the property of an owner, unless exempt by law.
general lien
139
A personal dwelling.
Homestead
140
This lien is imposed by law that the owner does not freely accept.
Involuntary lien
141
A decision of the court as a result of a lawsuit.
Judgment
142
A money encumbrance where a specific property is held as security for the payment of a money debt.
lien
143
The __________ must be based on a valid contract, written or verbal, between the claimant and the owner or the owner's general contractor.
mechanics' lien
144
A ________, if filed by the owner or the general contractor, must show the date of the completion, the name and address of the owner, the nature of the interest or estate of the owner, a description of the property, and the name of the contractor (if any).
Notice of Completion
145
A document that gives the workers notice that the owner will not be financially responsible for the work being done, and the workers must look to the tenant for payment.
Notice of Non-responsibility
146
A dividing partition between two adjoining buildings (or units) that is shared by the tenants of each residence or business.
Party Wall
147
When the government imposes restrictions on property.
Public Restrictions
148
Property that is subject to an easement or upon which the easement is imposed.
Servient Tenement
149
In the event the homeowner wishes to sell to move to another home or if the owner is forced to sell the home to satisfy an execution and the homeowner's equity is converted to cash, a homeowner with a valid formal declaration of homestead applies what is known as the _________.
Six-month rule
150
A voluntary or involuntary lien against a particular single piece of property is called a __________.
Specific Lien
151
A lien that is freely accepted by the property owner.
Voluntary lien
152
A document used by a creditor to collect on a judgement.
Writ of execution
153
An __________ clause gives the lender the right to call all sums immediately due and payable upon the happening of certain events, such as nonpayment of monthly obligations, non- payment of real property taxes, or willful destruction of the subject property.
Acceleration
154
Type of loan where the rate may move up or down.
Adjustable
155
A specific type of acceleration clause that gives the lender the right to call the loan due and payable if the borrower conveys legal title to a new owner.
Alienation Clause
156
A percentage rate that reflects the effective interest rate on the loan, including other prepaid financing charges such as loan fees, prepaid interest, and tax service fees.
Annual Percentage Rate (APR)
157
Any payment more than twice the lowest payment amount is called ?
Balloon Payment
158
One entitled to the benefit of a trust; One who receives profit from an estate, the title of which is vested in a trustee; or the lender on the security of a note and deed of trust.
Beneficiary
159
A third party instrument consisting of a borrower (trustor), a lender (beneficiary), and a neutral third party (trustee).
Deed of Trust
160
Where a lender sues a borrower after a foreclosure when the proceeds from a foreclosure are not enough to cover the outstanding loan amount.
Deficiency Judgement
161
Charges from the lender for giving the buyer a lower than par interest rate.
Discount Points
162
A federal law that prohibits lenders from discriminating on the basis of race, color, religion, national origin, age, sex, family size, handicap, or marital status or on the grounds of receipt of income from a public assistance program.
Equal Credit Opportunity Act
163
__________ is a function of value minus all debts against a property. The equation is: value today minus debt today.
Equity
164
To give something as security for a loan without giving possession.
Hypothecation
165
The most common type of real estate promissory note that requires payments that include both principal and interest.
Installment Note
166
An agreement between the seller, called the vendor, and the buyer, called the vendee, where the buyer is given possession and use of the property.
Installment sales contract
167
Any trust deed other than a first is called a _________?
Junior Trust Deed
168
Using a small amount of your money (equity capital) and a large amount of someone else's money (borrowed capital) to buy real estate.
Leverage
169
______________ fees are what the lender charges to do the loan, typically 1% of loan amount.
Loan Origination
170
The loan payment does not cover even the monthly interest.
Negative Amortization
171
This allows a lender to charge the borrower a penalty if the loan is paid before the scheduled due date.
Prepayment Penalty Clause
172
A federal law requiring that certain forms be provided with regard to closing costs.
Real Estate Settlement Procedures Act (RESPA)
173
A type of promissory note that is frequently referred to as an interest-only note. The borrower agrees to pay the interest, usually monthly, and to pay the entire principle in a lump sum on the due date.
Straight Note
174
A type of special clause where the holder of a senior (first) deed of trust agrees to become a junior lien (second) to pave the way for a new senior (first) deed of trust.
Subordination Clause
175
One who holds property in trust for another to secure the performance of an obligation.
Trustee
176
One who deeds property to a trustee to be held as security until the trustor has performed any obligations to a lender under the terms of a deed of trust.
Trustor
177
A law that was passed with the purpose of helping borrowers understand how much it costs to borrow money. Passing of this law resulted in a provision called Regulation Z.
Truth-in-Lending Law
178
A type of bank that operates under a license or charter from the state or federal government.
Commercial Bank
179
A mutual, voluntary-membership, cooperative organization of people who agree to save their money together to provide money for loans to each other.
Credit Union
180
A financial depository that gathers deposits from the general public and then invests these funds.
Institutional Lenders
181
An important source for real estate financing, particularly for large commercial and industrial properties such as shopping centers, office buildings, and warehouses.
Life Insurance Companies
182
_____________ lend their money and then either resell the loan to another lender or keep the loan for an investment.
Mortgage Bankers
183
______________ do not lend their own money; rather, they find a lender and a borrower and get a fee for bringing them together.
Mortgage Brokers
184
A major type of non institutional real estate lender.
Mortgage Companies
185
A type of lender that does not accept deposits from the general public and are not as strictly regulated as institutional lenders.
Non Institutional Lenders
186
Individuals who invest their savings in real estate loans.
Private Lenders
187
Insurance that is used to guarantee lenders the payment of the upper portion of a conventional loan if a borrower defaults and a deficiency occurs at the foreclosure sale.
Private Mortgage Insurance
188
This was created in 1960 with the goal of encouraging small investors to pool their resources with others in order to raise venture capital for real estate transactions. It has been called the "mutual funds" of the real estate business.
Real Estate Investment Trust
189
A financial institution that accepts savings from the public and invests these savings mainly in real estate trust deeds and mortgages.
Savings Bank
190
A program designed to help first-time homebuyers acquire a home in California's expensive housing market.
California Housing Finance Agency Program
| CalHFA
191
This program is administered by the State of California, Department of Veterans Affairs, Division of Farms and Home Purchases.
Cal-Vet loans
192
In 1944, Congress passed the G.I. Bill of Rights to provide benefits to veterans, including provisions for making real estate loans.
Department of Veterans Affairs (VA)
193
This was created in 1970 under the Emergency Home Finance Act. Its main function was to provide a secondary mortgage market for the savings and loan associations.
Federal Home Loan Mortgage Corporation
| Freddie Mac
194
What is a part of the Department of Housing and Urban Development (HUD), and was established in 1934 to improve the construction and financing of housing?
Federal Housing Administration (FHA)
195
This was established in 1938 by the U.S. Congress, with the main job to provide a secondary market for mortgages.
Federal National Mortgage Association
| Fannie Mae
196
An FHA program where anyone who is financially qualified is eligible. Loans are available on properties from one to four units.
FHA 203b program
197
A wholly owned corporation of the U.S. government. Created in 1968, when Fannie Mae became a private corporation.
Government National Mortgage Association
| Ginnie Mae
198
A market where existing real estate loans are bought and sold-----in other words, lenders sell their loans to other lenders and investors.
Secondary Mortgage Market
199
An estimate or an opinion of value.
Appraisal
200
An increase in value that can result from inflation or from the interaction of supply and demand forces.
Appreciation
201
The rate necessary to attract an average investor to invest in the property being appraised.
Capitalization Rate
202
The process of bringing together the three indications of value derived through the market, cost, and income approaches.
Correlation (Reconciliation)
203
This approach is appropriate for appraising newly constructed buildings and unique special-purpose properties and public buildings such as schools and libraries.
Cost Approach
204
If repairs and/or remodeling are undertaken, the expense incurred will be less than the value added to the property.
Curable Depreciation
205
This is defined as a loss in value from any cause. It is usually measured as the difference between the new replacement cost of a building or improvement and its value as of the date of the appraisal.
Depreciation
206
A loss in value resulting from (a) zoning and other government actions; (b) misplaced improvements, such as a demand for real estate, or overbuilding, creating a excessive supply of homes.
Economic Obsolescence
207
A loss in value caused by (a) an unpopular floor plan and layout; (b) a lack of updated, modern appliances and equipment; and (c) a poor or unpopular architectural design and style.
Functional Obsolescence
208
A ratio between sales price and rental rates.
Gross Multiplier
209
What an investor should be willing to pay today for a property is directly related to what the investor expects to receive from the property in the future.
Income Approach
210
The cost to repair or remodel exceeds the value added to the property.
Incurable Depreciation
211
This approach is used primarily for residential properties where there are enough current sales of similar properties to make its use feasible.
Market Data Approach or Sales Comparison Approach
212
" The highest price in terms of money for which a property would sell in the open market, with the ready, willing, and able seller not being obligated to sell, and a ready, willing, and able buyer not being obligated to buy, in an "arm's length" transaction with a reasonable length of time to effect the sale."
Market Value
213
A loss in value caused by (a) wear and tear from use; (b) deferred maintenance and lack of upkeep; (c) damage by termites, dry rot, and so on; and (d) weather conditions.
Physical Deterioration
214
This states the value of a property tends to be influenced by the price of acquiring an equally desirable substitute property.
Principle if Substitution
215
The value of a particular property to a particular owner or user of real estate.
Value in use (utility value)
216
Specialists called _________ began searching and compiling courthouse records for a fee and would publish their findings on a specific parcel of land.
Abstractors
217
An extended-coverage policy is commonly referred to as ?
ALTA policy
| American Land Title Association
218
An unbroken history of all the title transfers, beginning with the document originally transferred title from the government to private ownership and ending with the document vesting title in the current owner.
Chain of Title
219
The expenses paid by the buyer and the seller upon the sale of a property.
Closing Costs
220
The Standard Title Insurance Policy is frequently referred to as a ?
CLTA Policy
| California Land Title Association
221
A tax charged when a title is transferred.
Documentary Transfer Tax
222
A process whereby a neutral third party acts as the closing agent for the buyer and seller.
Escrow
223
This policy requires the title company to make a physical inspection of the property and insures against certain unrecorded title risks excluded under the standard policy.
Extended-Coverage Policy
224
The act of making an equitable distribution of these expenses in escrow at the close of the sale.
Proration
225
Over the years, both the Truth in Lending Act (TILA) and the _________________ provided protection, safe-guards, and disclosures to consumers who were shopping for loans.
Real Estate Settlement Procedure Act
| RESPA
226
The most widely used type of title insurance policy.
Standard Policy
227
The Institute of Real Estate Management, affiliated with the National Association of REALTORS, issues the nationally recognized designation ____________. This designation is achieved after meeting rigorous educational and experience requirements.
Certified Property Manager
| CPM
228
A leasehold where a tenant retains possession of the property after the expiration of a lease.
Estate at Sufferance
229
A leasehold at the landlords will. This has no definite termination date listed in the lease and often has no written lease.
Estate at will
230
A leasehold that continues for a fixed time span.
Estate for years
231
A leasehold that continues from period to period ( day, week, month, or year ) with no specified termination date.
Estate from period to period
232
The tenant pays a fixed rental amount, and the landlord is responsible for taxes, maintenance, and insurance.
Gross/Fixed lease
233
Property is rented for a period of time, at the end of which the lessee is given the option to purchase per a set of agreed terms.
Lease with option to buy
234
Another word for a tenant.
Lessee
235
Another word for a landlord.
Lessor
236
The tenant pays a fixed rent plus, per the lease, pays a portion of the landlord's property taxes, hazard insurance, and maintenance ( a helpful acronym is TIM).
Net Lease
237
Rent is based on a percentage of the tenant's gross sales------this type of lease often uses a combination fixed rent plus a certain percentage of the tenant's gross sales.
Percentage Lease
238
If a lessee is wedged between a the lessor and the sublessee.
Sandwich Lease
239
A _________ transfers only a part of the term of the lessee to a sublessee.
Sublease
240
A tenant pays all three items in a net lease.
Triple net lease
241
This state law forbids discrimination in the sale, rental, lease, or financing of practically all types of housing.
California Fair Housing Act (Rumford Act)
242
This comprehensive law states that within constitutional limits, fair housing should prevail throughout the United States.
Civil Rights Act of 1866,1964,1968 and 1988 Amendments
243
Federal law that requires businesses (including real estate developers) to meet air quality standards.
Clean Air Act
244
The California real estate commissioner has issued numerous regulations regarding housing discrimination. These regulations detail the types of discriminatory conduct that, if practiced by real estate licensee, are the basis for disciplinary action that can result in a suspension or fine even in prosecution by the local district attorney.
Commissioner's Rules and Regulations
245
These come in the form of condominiums, planned unit developments, stock cooperatives, and community apartments are examples of intensified owner-occupied developments that differ from the traditional single-family-home type pf subdivision.
Common interest developments (CIDs)
246
This is a type of real estate ownership, not a type of structure. It can be any type of use e.g. office, warehouse, not just residential.
Condominium
247
The power of __________ is different in that it allows the government to acquire title to private different in that it allows the government to acquire title to private land for public use in exchange for the payment of just compensation.
Eminent Domain
248
This state law prohibits financial institutions from engaging in discriminatory loan practices.
House Financial Discrimination Act (Holden Act)
249
This is an ordinance that requires a builder of new residential housing to set aside a designated number of units for low- and moderate-income people.
Inclusionary Zoning
250
Federal law that requires an environmental impact report on all projects using federal funding.
National Environmental Policy Act
251
A person owns his or her own living unit and lot, in addition to an undivided interest in the common areas.
Planned Unit Development (PUD)
252
A _________ is composed of citizens appointed by the members of the city council or board of supervisors (in some smaller cities, the city council acts as the planning commission).
Planning Commission
253
These are agencies within city and county government, staffed with professionally trained planners.
Planning Departments
254
This refers to the constitutional right of government to regulate private activity to promote the general health, welfare, and safety of society.
Police Power
255
Report issued by the real estate commissioner which merely states that the sub-divider has conformed to all laws and regulations.
Public Report
256
An alternative to subdividing recreational land and ______ or shares in the whole.
Selling Undivided Interests
257
The unlawful directing of a prospective buyer or tenant to certain neighborhoods or the refusal to tell about the availability of housing in another neighborhood.
Steering
258
A corporation formed for the purpose of holding title to a building.
Stock Cooperative
259
A division of land into five or more lots for the purpose of sale, lease, or financing, whether now or in the future.
Subdivided Lands Law
260
This covers the division of land into two or more lots for the purpose of sale, lease, or financing, whether now or in the future.
Subdivision Map Act
261
This state law makes it unlawful for people engaged in business in California, including real estate agents, to discriminate when providing business products and services.
Unruh Civil Rights Acts
262
____________ refers to the division of land into designated land-use districts.
Zoning
263
The Latin phrase that means "according to value."
Ad Valorem
264
Unlike property received in an exchange.
Boot
265
This consists of a yearly allowance (the length depending on if it is residential or nonresidential) for wear, tear, and obsolescence, which permits the property owner to recover the original cost over the useful life of the property.
Depreciation Deduction
266
Limits real property taxes to one percent of the full cash value of the real property, plus an amount for local assessments and bonds.
Proposition 13
267
Real property taxes help pay for the general operation of local government, whereas _______________ are levied to pay for a specific improvement, such as streets and sewers.
Special Assessments
268
An increase in value when demand exceeds supply.
Appreciation
269
A system of individual fee ownership of a unit a complex that can be for any use, combined with ownership in common with the other owner's of common areas of the structure and the land.
Condominium
270
The ability to convert your investment to cash quickly.
Liquidity
271
The cost and time involved in overseeing the investment.
Management
272
Any area or tract of land where one or more mobile home lots are rented or leased.
Mobile Home Park
273
A factory-built home, without wheels, that is intended from the beginning to be placed on a permanent foundation.
Modular Homes
274
The possibility that you will lose all or part of your initial investment.
Risk
275
The income tax laws and their impact on the investment.
Tax Aspects
