RE Test

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RE Test
2012-02-16 00:10:38
Real Estate Terminology List

California Real Estate Test
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  1. Acre
    • 43,560 Square Feet
    • 160 Square rods
    • 4840 Square Yards
  2. Mile
    5,280 Feet
  3. 1031 Exchange
    Owners of business and investment Real Estate to sell their property and buy other like kind property without paying the Capital Gains Tax.
  4. 3 Types of Appraisals
    • Market Data Approach - Sales comparison
    • Cost Approach - Caculate the reproduction cost of improvements, subtract the deprecation on improvements, add the land value.
    • Capitalization Approach - Income - Estimates the future value of a current or estimated stream of income.
  5. 4 Elements of Value - DUST
    • Demand for the type of Property
    • Utility - Desirable use the property offers
    • Scarcity of properties available
    • Transferbility of the property to a new owner.
  6. 4 Levels of Appraisers Licenses
    • 1) Trainee Appraiser
    • 2) Residential Appraiser
    • 3) Certified Residential appraiser
    • 4) Certified General Appraiser
  7. 4 Steps of Appraisal Process
    • 1) Definition of the Appraisal Problem
    • 2) Gathering Data (General Data by region, city, neighborhood & Specific Data, location, lot, house improvements
    • 3)Three Appraisal methods (Market Comparison, Cost Approach & Income Approach)
    • 4) Correlation of Reconciliation of Value & final opinion of value (The Appraisal Report)
    • An orderly process is defined, planned, and the data is gathered, analyzed, and correlated to estimate the value.
  8. 4 Utilities of joint Tenancy (TTIP)
    • Time - interest must be acquired at the same time.
    • Title - interest must be acquired by the same document.
    • Interest - Ownership interest are always equal, benifits and burdens.
    • Possession - undivided interest, right to use the entire property.
  9. 5 Tests of Fixture (MARIA)
    • Method to determine if an item is a fixture.
    • Method of attachment
    • Adaptability
    • Relationship of the parties
    • Intention
    • Agreement

  10. 5 Ways to own a business
  11. Acknowledgement
    • All documents must be acknowledged before recorded.
    • Refers to a signed or verbal statement by the named person that he/she has signed that document of his/her own free will in the presence of a witness, usually a Notary Public.
  12. Ad Valorem
    • A latin word meaning Taxed "according to value".
    • A tax that is charged in proportion to the value of the property.
    • Real property is reassessed each time it is transferred (sold) at 100% of its selling price or market value, if it is higher.
  13. Adjustable Rate Mortgage (ARM)
    (or Trust Deed) is a loan is which the interest rate fluctuates periodically, based on a specific index, which makes the payment amount also change.
  14. Administrator/Administratix
  15. Adverse Possession
    • Transfer title to property to someone other than the true owner.
    • Occupy for a five year period.
    • Open, notorious, contunious, hostile, under claim of right or color of title, adverse to the interest of the true owner.
    • Must pay all property taxes during the 5 year period.
  16. Agency
    • Legal relationship between principle and agent that arises out of a contract.
    • Employed to do certain acts on behalf of the prinicpal who retained the agent to deal with a third party.
  17. Allienation Clause
    A clause in a mortgage or deed of trust that allows the lender to call the loan if the borrower transfers title to the property.
  18. Alienation
    Transfer ownership of a property to another, either voluntarily or involuntarily.
  19. Alquist-Priolo
    • This is a zoning act designed to control the development in the vicinity (1/4 mile wide strip) of hazardous earthquake faults for the benefit of public safety for the entire state of California.
    • Developments or structures in existence prior to 5/4/75, are not affected.
  20. Amenities
    Are those improvements or views that increase the desirability or enjoyment rather than the necessities of the residents. Usually single-family residences.(Ocean/mountain view, city lights, jacuzzis, swimming pools, and tennis courts).
  21. Americans with Disabilities Act (ADA)
    • Is a Federal Civil Rights law that applies to people with disabilities and protects them from discrimination.
    • Fines up to $10,000 first time violators, up to $25,000 for second offense within 5 years and up to $50,000 for a third offense within 7 years.
  22. Annual Percentage Rate (APR)
    • The relationship between the total of the finance charges (interest rate, points, and the loan fee) and the total amount financed, expressed as a percentage.
    • According to the Federal Truth in Lending Act, the lender must disclose the annual percentage rate of a loan which is the cost of credit, including interest and other financing costs, expressed as an annual rate.
  23. Appraisal
    An opinion of value as of a certain date; a conclusion resulting from the analysis of facts.
  24. Appurtenances
    • Rights or property that are ordinarily transferred with land and used for its benefit, such as easements.
    • Belongs to, goes with, or runs with the land.
  25. As Is
  26. Assignment
    Transfers the contract rights and obligations of one of the parties to another person. A listing agreement cannot be transferrred due to the nature of the obligation imposed.
  27. Avulsion
    Soil added to land by an action of a body of water.
  28. Back Fill
  29. Baseline
  30. Bilateral Contract
    Both parties exchange promises to do or refrain from doing something. A real estate sales contract is a bilateral contract because both sides have an obligation to perform.
  31. Blind Advertising
  32. Blockbusting
  33. Board Foot
  34. Bounds
  35. British Thermal Units (BTU's)
  36. Bundle of Rights
  37. Calendar Year
  38. Capital Gains
  39. Capital Improvements
  40. Caveat Emptor
  41. CC&R's
  42. Chattel
  43. COALD
  44. Community Property
  45. Company Dollar
  46. Condemnation
  47. Condsideration
  48. Constructive Notice
  49. Contractor State License Law
  50. Cost Basis
  51. Cripple
  52. Decideous
  53. Deferred Maintence
  54. Deposit Receipt
  55. Desk Cost
  56. District Attorney
  57. Documentary Transfer Tax
  58. Easement
  59. Economic Life
  60. Economic Obsolesence
  61. Effective Age
  62. Effective Gross Income
  63. Effective Life
  64. Elevation Sheet
  65. Emancipated Minor
  66. Emblements
  67. Eminent Domain
  68. Encroachment
  69. Escheat
  70. Escrow
  71. Escrow Holder
  72. Et Ux
  73. Ethics
  74. Executor/Executrix
  75. Executory Contract
  76. Fair Market Value
  77. False Promise
  78. FHA Minimum Crawl Space
  79. FICO
  80. Fictitious Business Name (DBA)
  81. Fiscal Year
  82. Fixture
  83. Flashing
  84. Flood Plain
  85. Footing
  86. Foreclosure
  87. Foreign Investment in Real Property Tax Act (FIRPTA)
  88. Fraud
  89. Freehold Estates
  90. Foot Front
  91. Goodwill
  92. Grant Deed
  93. Gross Lease
    A lease in which the tenant pays only a fixed amount for rental and the landlord pays all aperating expenses and taxes.
  94. Hip Roof
  95. Holden Act
  96. Holographic Will
    Entirely in the testator's handwriting and requires no witnesses.
  97. Homestead
  98. Impound Account
  99. Improved Land
  100. Independant Contractor
  101. Infill Development
  102. Injunction
  103. Interest Rate
  104. Intestate
    • Died without a will.
    • Community property - surviving spouse.
    • Seperate property - Spouse if no children exist. If one child, divided equally between spouse and child. If two or more children exist, one third goes to the spouse and two-thirds is divided between the children.
  105. Invalid
  106. Joint Tenancy
    • Co-ownership that gives each tenant equal interest and equal rights in the property.
    • Right of survivorship.
  107. Kiosk
  108. Land Sales Contract
  109. Less-than-freehold Estates
  110. Liquidated Damages Clause
  111. Lis Pendens
    Suit Pending - A public notice that a lawsuit has been filed that may affect the title to a particular piece of property.
  112. Littoral Rights
  113. Loan to Value (LTV)
  114. Mechanics Lien
  115. Mello-Roos
  116. Meridian
  117. Mets
  118. Minimum Report Requirements
  119. Misrepresentation
  120. Mobile Home (Manufactured Home)
  121. Monuments
    A fixed, visable marker used to establish boundaries for a survey.
  122. Natual Hazard Disclosure (NHD)
  123. Neighbor Shopping Center vs Major Shopping Center
  124. Net Lease
    A lease that requires the tenant to pay maintenance and operating expenses, as well as rent.
  125. Net Operating Income
  126. Notary Public
  127. Novation
    Redrafting of the agreement, substituting the new one for the old one.
  128. Offeree
  129. Offeror
  130. Option
  131. Panic Selling
  132. Partition Action
  133. Percentage Lease
  134. Percolation Test
  135. Personal Property
  136. Police Power
    The right of the government to enact laws, ordinances, and regulations to protect public health, safety, welfare, and morals.
  137. Potable Water
  138. Preliminary Public Report
  139. Prima Facie
  140. Principle
    • 1. One who authorizes another to act on his or her behalf.
    • 2. One of the contracting parties to a transaction.
    • 3. The amount of money borrowed in a loan, seperate from the interest charged.
  141. Principle of Contribution
  142. Principle of Highest and Best Use
  143. Principle of Substitution
  144. Principle of Supply and Demand
  145. Priority
  146. Probate
    The judicial procedure of proving the validity of a will.
  147. Probate Sale
  148. Procuring Cause
  149. Promissory Note
  150. Property Taxes Due
  151. Proation
  152. Prospecting
  153. Public Report
  154. Puffing
  155. Pur Autre Via
  156. Quiet Enjoyment
  157. Quiet Title Action
  158. Quitclaim Deed
    A conveyance where the grantor transfers with warranty or obligations whatever interest or title he or she may have.
  159. Real Estate Recovery Fund
  160. Real Property
  161. Realtor
  162. Reconciliation
  163. Redlining
  164. Reliction
  165. RESPA
  166. Restricted License
  167. Reperian Rights
  168. Rumford Act (Now called the CA Fair Employment & Housing Act)
  169. R-Value
  170. Safety Clause
    Stipulates that listing agents earn their commission if the property is sold within a specified period after the listing agreement has terminated. Agent must provide a list within 3 days after the listing is terminated.
  171. Settlement Statement
  172. Severalty
  173. Syndicate
    • A group formed to combine funds for real estate investment.
    • Can be partnership, corporation, limited liability company, tenance in common, or other.
    • A trust may be created to hold and manage property.
  174. Steering
  175. Stigmatized Property
  176. Straight Line Method of Deporeciation
  177. Subdivided Lands Law
  178. Subdivision
  179. Subdivision Map Act
  180. Sublease
  181. Tax Deductions
  182. Tenancy in Common
  183. Testate
  184. Title Insurance
  185. Topography
  186. Township
    A division of land, measuring 36 square miles, in the government survey system.
  187. Trade Fixtures
    An item of personal property instaqlled by a commercial tenant and removable upon expiration of the lease.
  188. Transfer Disclosure Statement
  189. Underwriting
    The process of evaluating a loan application to determine the risk involved for the lender.
  190. Uniform Commercial Code
  191. Unimproved Land
  192. Valid
  193. Value (DUST)
    • Demand - for the type of property
    • Utility - desirable use the property offers
    • Scarcity - of properties available.
    • Transferability of the property to a new owner.
  194. Vendee
    A buyer
  195. Vendor
    • The seller
    • The property owner
  196. Vesting
  197. Void
    • A contract not legallhy enforceable
    • The absence of a valid contract
  198. Voidable
    A contract that appears to be valid bus subject to cancellation by on or both of the parties.
  199. Warehousing
  200. Wetlends
  201. Worker's Comp Laws
  202. Zoning
    The exercise of regulating and controlling the use of a property in a municipality.
  203. Estates
    • Freehold - Ownership interest where title passes to another, includes fee simple and life estates.
    • Fee Simple - Highest, most complete form of ownership and inheritable.
    • Life Estate - last only for the life of the holder of the estate.
    • Non-freehold - personal rights and do not involve property ownership. Leashold interest.
    • Estate for years - Fixed termination date, could be up to 99 years or a few hours.
    • Estate at will - Allows either party to terminate the agreement at any time. California requires 30 day notice.
    • Estate from Period to Period - renews itself automatically from period to period, unless notice is given to terminate.
    • Estate at sufferance - at the end of the lease, against the wishes of the owner, the tenant remains in possession of the property.
  204. Accession
    • Property lost by natural forces.
    • Erosion - gradual wearing away of the land.
    • Avulsion - violant tearing away of land, whereby the owner of the lost property has one year to reclaim the lost land.
    • Reliction - water recedes from the property and newly exposed land belongs to the property.
  205. Unilateral contract
    One party makes a promise and the other party does not promise, but can make a contract a binding agreement by taking some action.
  206. Discharged
    When all the terms of the contract have been fulfilled.
  207. Rescission
    Mutual agreement to cancel the agreement.
  208. Property Tax
    • 1% of value of the assessed value.
    • On January 1, a lien is placed on property for the next fiscal year's taxes.
    • July 1 through June 30 is the tax fiscal year.
    • November 1, the first installment of property tax is due.
    • After 5 PM on December 10 the first installment becomes delinquent if unpaid.
    • February 1, the second installment is due.
    • After 5 PM on April 10, the second installment of property tax becomes delinquent if unpaid.
  209. Grantor
    One who conveys title to real property; the present owner.
  210. Grantee
    One who receives title to real property.
  211. Up Zoning
    Change to a broader range of uses, such as a vchange from residential to commercial.