Real Estate Exam

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Real Estate Exam
2011-07-07 19:38:17
Real Estate exam

Real Estate Exam Prep
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  1. Treaty of Guadalupe Hildago
    1848 US regognized existing land grants of the Mexican people already there
  2. Torrens System
    Early system of recording land titles no longer in use
  3. Government Patents
    Original conveyances of land from US to citizens
  4. Real Property
    Land that goes with the land including buildings, landscaping, fencing, etc
  5. Personal Property
    AKA Chattel
  6. Chattel Real
    an interest in real property (Ex lease, trust, deed, mortgage)
  7. Appurtenances
    Things that go with the land
  8. Emblements
    Cultivated crops which can be removed as personal property
  9. Primary Tests of Fixtures
    • 1. Intent
    • 2. Method of attachment
    • 3. Adaptability
    • 4. Agreement
    • 5. Relationship between parties
  10. Trade fixtures
    Fixtures that are industry specific
  11. Bundle of rights
    • Right to:
    • 1. Use
    • 2. Exclude
    • 3. Encumber
    • 4. Sell
    • 5. Lease
  12. Riparian Rights
    Reasonable use of water flowing through, next to, or under property
  13. Littoral Rights
    Reasonable use of water from an adjacent body of water
  14. Right of Correlative User
    Reasonable use of underground percolating water
  15. Right of prior Appropriation
    First user of riparian rights has priority
  16. Accretion
    Build up of land by water
  17. Avulsion
    Sudden tearing away of land by water
  18. Alluvium Land
    Land formed by the built up by water
  19. Erosion
    Gradual loss of soil by wind or water
  20. Dereliction or Reliction
    Land formed from receeded water - Waterfront owner keeps the land
  21. Wetlands
    Areas covered by water during certian seasons
  22. Surface Water
    Water that has no defined course
  23. Flood Water
    Water overflowing a limited channel
  24. Inundation
    Covering an area with water
  25. Flood Plain
    Flat land connecting waters that tends to flood
  26. Sheet Flooding
    Storm runnoff not in a water path
  27. Ponding
    Indentations in flat lands where water collects
  28. Porter-Cologne Water Quality Control Act
    Statewide water quality control program
  29. Mutual Water Company
    Stock held in a water company that is appurtenant to the land
  30. Irrigation District
    Usually for agricultural areas - a public corporation for municipal use
  31. Chapter 2
    Chapter 2
  32. Recorded Lot, Block, and Tract System
    Identifies lot by subdivider's description
  33. Metes and Bounds
    Identifies lot through clockwise geographical description
  34. Bearing
    easterly/westerly measurement from north/south
  35. Government Survey
    Identifies lot from principal surveing lines
  36. Base lines
    East/west government survey lines
  37. Meridians
    North/south government survey lines
  38. Tiers
    horizantal townships in governemental survying
  39. Ranges
    Vertical rows of townships in governmental surveying
  40. Townships
    Six by six square miles totaling 36 total miles
  41. Correction Lines
    lines that adjust for the curvature of the earth every 24 miles in governmental surveying.
  42. Acres in a township section
  43. Feet in a mile
  44. Square feet in an acre
  45. Adverse Possession
    Aquiring title through use or squatting
  46. Requirements for adverse possession
    • 1. Open occupancy
    • 2. Hostile to owner interest
    • 3. Claim of right
    • 4. Continuous use for 5 years
    • 5. Paid real property taxes for 5 years
  47. Accession
    Joining of property to property
  48. Probate
    legal proceedure for reallocating real estate of a deceased person
  49. Inestate
    without a will
  50. Executor
    person to administer estate with a will
  51. Administrator
    person to administer estate without a will
  52. Testator
    Person who makes the will
  53. Codicil
    amendment to a will
  54. Holographic will
    Handwritten will not requiring witnesses
  55. Witnessed Will
    Testors creation of a formal written document
  56. Nuncupative Will
    Oral will not vaild in CA
  57. Bequest and Legacy
    Gift of personal property by will
  58. Devise
    Gift of real property by will
  59. Domiciliary
    CA resident leaves property in CA
  60. Ancillary
    Out of state resident leaves property in CA
  61. Testate
    with a will
  62. Inestate Succession
    Law that upon death property goes to heirs
  63. Community Property
    Passes on immediately to surviving spouse
  64. Seperate Property Split
    • 1. Spouse/Child = 50/50
    • 2. Spouse/Children = 33/66
    • 3. Spouse/Parent = 50/50
  65. Escheat
    death with no will and no heirs property goes to the state after 5 years
  66. Eminant Domain
    The taking of property for public use
  67. Police Power
    The taking of land for public health and safety
  68. Dedication
    Gifting of real property to the government for public purpose without strings
  69. Deeds
    Convey interest in real estate
  70. Alienation
    deed transfer of an interest in real property
  71. Requirements of a Deed
    • 1. Delivery
    • 2. Acceptance
    • 3. Granting language
    • 4. Written
    • 5. Description
    • 6. Competent grantee
    • 7. Actual grantee
    • 8. Grantor signature
  72. Habendum Clause
    Clause describing the extent of what was granted
  73. Consideration
    Promise to give a deed
  74. Acknolwedgement
    Notorized signature
  75. Purchase-Money Trust Deed
    Financing takes priority over liens
  76. Grant Deed
    Most common in CA showing grantor has not previously conveyed property and estate is free of encumbrances
  77. After-Acquired Title
    Better title acquired after deed, then it is included in title
  78. Quitclaim Deed
    Grantor gives title without making claims to such title
  79. Warantee Deed
    Not used in CA but grantor garantees title free and clear
  80. Sheriff's Deed
    Court order for sheriff to sell to satisfy a judgement
  81. Gift Deed
    Given in exchange for love and affection
  82. Wild Deed
    Grantor with no recorded interest
  83. Et ux
    and wife
  84. Et al
    and others
  85. Fee Simple Absolute Estate
    Highest form of ownership with no time limits and can be transfered
  86. Fee Estate
    Estate of inheritance
  87. Life Estate
    Estate for the life of a person
  88. Reversionary Interest
    Person with who a life estate reverts back to upon death
  89. Remainder Interest
    Next in line for a life estate
  90. Inchoate Interest
    Interest is not perfected until something happens
  91. Pur Autre Vie
    Life estate granted to one person for the life span of another
  92. Defeasible Estate
    Estate can revert back to previous owner if stipulations occur
  93. Freehold Estate
    Fee simple or life estate
  94. Nonfreehold Estate
    Leasee's interest in a property
  95. Tenancy in Severalty
    Seperate ownership by one person
  96. Joint Tenancy
    Undivided interest with right of survivorship like the Hodges house
  97. Joint Tenancy Requirements
    • 1. Time
    • 2. One document
    • 3. Equal interest
    • 4. Equal right of possession
  98. Tenancy in Common
    Default undivided interest without the right of survivorship
  99. Encumbrance
    Claim, liability, or restriction on the use of a property
  100. Beneficial Restriction
    Encumbrance that benefits the property
  101. Easement
    Nonpossesory real property interest
  102. Dominant Tenement
    Land is using the land of another via easement
  103. Servient Tenement
    Land is being used by or served to another via easement
  104. Easement Appurtenant
    easements are appurtenant to the property
  105. Affirmative Easement
    Right to use someone's land
  106. Negitive Easement
    Prevent the owner from doing something to the land they otherwise would be able to do
  107. Profit a Prendre
    Easement holder can take profits (ie crops, minerals, oil)
  108. Conservation Easement
    Purchaser my keep land in natural or agricultural state
  109. Ways of Creating an Easement
    • 1. grant
    • 2. implication
    • 3. necessity
    • 4. dedication
    • 5. prescription
    • 6. eminent domain
    • 7. estoppel
  110. Eminent Domain AKA
  111. Easement by Estoppel
    Actions by user indicating belief of such easement by the owner
  112. Easement by Implication
    Implied easement from law (ie landlocked, oil well)
  113. Easement by Necessity
    When there are no other means of access and at one time the land was one piece.
  114. Easement by Prescription
    Easement by use
  115. Elements of an Easement
    • 1. Open
    • 2. Continuous for 5 years
    • 3. Hostile
    • 4. Claim of right
  116. Tacking on
    For easement by prescription, prior use of a previous owner's years added to the 5 year requirement
  117. Quiet Title Action
    Easement by prescription's offical record of title
  118. Easement in Gross
    Personal right not appurtenent to the land; therefore there is no dominant tenant
  119. Easement Terms
    • Forever except:
    • 1.. Merger
    • 2. Nonuse - prescription only
    • 3. Destruction of servient tenement
    • 4. Particular purpose ends
    • 5. Agreement
    • 7. prescriptive/adverse use by the dominant tenement
  120. License
    Permissive use
  121. CC&Rs
    • Covenants, Conditions, and Restrictions
    • Private deed restrictions not required by law.
  122. Private Restrictions
  123. Public Restriction
  124. Restrictions Conflict
    Most restrictive prevails
  125. Covenants
    Promises in deeds that stay with the land
  126. Declaration of Restrictions
    Subdividers recording of restrictions prior to first sale
  127. Condition
    Qualification placed by grantor which upon breach will revert back to grantor - Courts trat as if covenant
  128. Encroachment
    Trespass by building improvements which must be removed within 3 years before permanency
  129. Good Faith Encroacher
    Removes encroachment and pays for damages
  130. Ejectment
    Action to remove a trespasser or encroacher
  131. Abatement Action
    Action to cease a nuisance
  132. Injunction
    Court order of an action
  133. Lien
    money charge, debt, or encumbrance against a property
  134. Voluntary Lien
    Placed against the property by the owner (i.e. mortgage)
  135. Specific Lien
    Lien specific to a property
  136. General Lien
    Lien attached to all properties of an owner
  137. Lien Priority
    Taxes and special assessments take priority
  138. Statutory Liens
    liens specific to the property such as mechanic's liens
  139. Mechanic's Lien Process
    • Completed Work:
    • 1. Delivery of services/goods
    • 2. <20 days preliminary notice
    • 3. 10 days Notice of completion filed
    • 4. Notify General, sub and preliminary notice filer
    • 5. 30 days subcontractors file lien
    • 6. 60 days general contractors file lien
    • 7. 90 days contractors w/o notice of completion file

    • Incomplete Work:
    • 1. 60 days file notice of cessation
    • 2. 30 days subcontractors file
    • 3. 60 days general contractors file
    • 4. 90 days Gen, sub, and no notice file
  140. Notice of Nonresponsibility
    Post 10 days after informed, if work is done without owner's knowledge
  141. Lien Verification
    Statement by lienholder as to the correctness of charges and circumstances regarding the lien
  142. After Lien
    Foreclosure proceedings within 90 days
  143. Stop Notice
    Subcontractor gives to lender to release funds
  144. Lien Release
    Release of disputed mechanic's lien by posting 1 1/2x bond
  145. Lis Pendens
    Notice of pending lawsuit to possible purchaser
  146. Attachment
    Siezing property before a judgement on a lien over 3 years old for business conduct, trade, or profession
  147. Abstract of Judgment
    General lien for debtors who's properties are in multiple counties
  148. Writ of Execution
    Document required to execute judgement for a sherriff's sale
  149. Homestead Declaration
    • Protects the home from forclosure due to unsecured debt settlement
    • 1. $75,000 family unit
    • 2. $150,000 Diabled, Senior Citizen
    • 3. $50,000 evreyone else
  150. Homestead Declaration Requirements
    • 1. Head of household statement
    • 2. Spouse name
    • 3. Residing statement
    • 4. Description
  151. Homestead Pay Out
    • 1. Existing lien holders (mortgage, etc.)
    • 2. Homestead
    • 3. Judgements
    • 4. Owner
  152. Homestead Does Not Protect
    • 1. Judegments filed prior to declaration
    • 2. Mechanic's liens
    • 3. Mortgages & Trust Deeds
    • 4. HOA Assessments
  153. Lost Homestead
    • 1. Filing declaration of abandonment
    • 2. Sale of homesteaded property
  154. Agency
    Contractual agreement where the agent represents the principal
  155. Principal
    Buyer or seller in a RE transaction
  156. Agency Creation:
    • 1) Expressly
    • 2) Implication
    • 3) Ratification
    • 4) Estoppel
    • 5) Emergency
  157. Expressly
    Via written or verbal statement
  158. Implication
    Implied through actions of the parties
  159. Ratification
  160. Pricipal approves a previously unauthroized act
  161. Ostensible Agent
    Agent through estoppel
  162. Express Agent
    Agent through contract
  163. Fiduciary Duties:
  164. 1) Accounting
    • 2) Disclosure
    • 3) Due Care
    • 4) Loyalty
    • 5) Obedience
  165. Tort
    Wrongful injury (physical or financial)
  166. Attorney-in-fact
    Person opperating under the power of attorney
  167. General Power of Attorney
    Allows attorney-in-fact to do anything the pricipal could do
  168. Specific Power of Attorney
    Allows attorney-in-fact to do only specific acts
  169. Equal Dignites Rule
  170. If law requires act in writing then agency relationship must be in writing
  171. RE Transfer Disclosure Statement
    Written discloser of any defects given to buyer
  172. Patent
  173. Latent
    Not discoverable via reasonable inspection
  174. Special Agent
    Agent with authority limited to a specific purpose
  175. General Agent
    Agent authorized to conduct all duties of business
  176. Dual Agency
    Agent representing both buyer and seller
  177. Types of Broker Agency:
  178. 1) Seller's agent
    • 2) Dual agent
    • 3) Buyer's agent
  179. Transaction Brokers
    Facilitators who act as the middleperson to arrange sales
  180. Designated Agency
    Dual agency of two different persons in the same office
  181. Subagency
    Same agency duties to the seller as the listing agent
  182. Cooperating Agents
    Agents working together such as one does buyers and one does sellers
  183. Agency Disclosure Process:
  184. 1) Disclose possible relationships
    • 2) Elect relationship type
    • 3) Confirm in writing
  185. Termination of Agency:
    • 1) Expiration
    • 2) Imposibility of Performance
    • 3) Death
    • 4) Agreement
    • 5) Cancellation
    • 6) Incapacity
  186. Agency Coupled w/an Interest
    Exception to the cancellation of agency
  187. Trust Fund Deposits:
    • 1) Deposited into a trust acct w/in 3 days
    • 2) Given to principal
    • 3) Deposited directly to escrow
  188. Trust Fund Deposit Exceptions:
    • 1) Buyer's written instructions before acceptance
    • 2) Seller's written instructions after acceptance
  189. Trust Account Requirements:
    • 1) Open for inspection
    • 2) Journals for beneficiary and transaction
    • 3) Balanced daily
    • 4) Seperate records for each beneficiary and transaction
    • 5) Reconciled monthly with bank statement
    • 6) Deposits w/in 3 days
  190. Interpleader Action
  191. Courts interjection on a decision
  192. Commingling
    Mixing personal funds with RE deposits
  193. Conversion
  194. Using RE deposits for personal use
  195. Dept of RE
    Part of the Business, Transportation, and Housing Agency
  196. RE Law
    Part of the Business and Professions Code
  197. RE Recovery Fund
    For those who get an unrecoverable judgement against a licensee due to fraud $20,00 per offense; $100.00 max per licensee
  198. Nonlicensed Fines:
  199. 1) $100 give
    2) $10,000 and/or 6mo jail recieve
  200. Sherman Anti-Trust Act Violations:
  201. 1) Price Fixing
    • 2) Market Allocation
    • 3) Group Boycotts
    • 4) Tie-in agreements
  202. Price Fixing
    Agreement to set commission rates
  203. Market Allocation
    Agreement to divide market amongst firms to limit competition
  204. Group Boycotts
    Agreement to refuse to work with another broker
  205. Tie-In Agreements
    Agreement to purchase something in exchange for RE agent services
  206. Contract
    An enforcable promise
  207. Valid Contract Requirements
    • 1) Competent Parties
    • 2) Mutual Agreement
    • 3) Consideration
    • 4) Legal Purpose
  208. Consideration
    Something of value recieved in exchange for something else of value
  209. Voidable Contract
    only one party has the right to void the contract
  210. Voidable Contract Examples:
    • 1) Duress
    • 2) Menace
    • 3) Undue influence
    • 4) Fraud
    • 5) Misrepresentation
  211. Duress
  212. Menace
    Threat of force
  213. Undue Influence
    Influence based on relationship between the patients (ex Doctor-lawyer, etc)
  214. Fraud Includes:
    • 1) Lie
    • 2) False statement without fact
    • 3) Withholding truth
    • 4) Empty promise
    • 5) Other deceitful act
  215. Misrepresentation
    False statement to induce a contract
  216. Inception Fraud
    Voids the contract not making it a voidable contract
  217. Puffing
    Statement of opinion; not a basis to void contract
  218. Bilateral Contract
    Promise for a promise
  219. Unilateral Contract
    Promise for an act
  220. Executed Contract
    Fully performed contract
  221. Executory Contract
    Yet to be preformed contrtact
  222. Express Contract
    Terms written or stated and specifically agreed to
  223. Implied Contract
    Contract resulting from conduct of parties
  224. Offers
    Not a contract until accepted
  225. Novation
    Substituting a new contract for an old one
  226. Accord and Satisfaction
    Agreement to accept different consideration than previously agreed upon
  227. Interpretation of Contracts
    Tend against the person drafting, newer contract, handwritten
  228. Assignment
  229. Statute of Frauds
    • In writing if:
    • 1) length >1yr
    • 2) exectution time >1yr
    • 3) Pay other's debt
    • 4) Sale of personal propery >$500
  230. Parol Evidence Rule
    Oral evidence no good if complete contract; only to clarify
  231. Estoppel and Statute of Frauds
    Prevented from using statute of frauds if other party made improvements based on promise to sell
  232. Laches
    Delay for action causes another to act to their own detriment
  233. Statute of limitations:
    • 1) Written action <4yrs
    • 2) Verbal <2yrs
    • 3) Judgements <10yrs
  234. Contractual Remedies:
    • 1) Compensatory Damages
    • 2) Specific Performance
    • 3) Punitive or Exemplary Damages
    • 4) Nominal Damages
    • 5) Liquidated Damages
    • 6) Reformation
    • 7) Waiver
    • 8) Resission
    • 9) Declaratory Relief Action
    • 10) Injunction
  235. Compensatory Damages
    Cash loss
  236. Specific Performance
    Specifys action
  237. Punitive or Exemplary Damages
    Damages awarded above cash value because damages were on purpose
  238. Nominal Damages
    Stated or menial amount
  239. Liquidated Damages
    Damages agreed to prior to breech
  240. Reformation
    Court rewrite of contract
  241. Waiver
    Release of noncompliance if sole beneficiary (leave where they are)
  242. Rescission
    Relase of all parties (leave where they were)
  243. Declaratory Relief Action
    Court determined rights before breach
  244. Listing Agreements:
    • 1) Residential Listing Agreement (Exclusive Right to Sell)
    • 2) Exclusive Acency liting
    • 3) open listing
    • 4) Net listing
    • 5) Buyer Listing
  245. Residential Listing Agreement AKA
    Exclusive Right to Sell Listing
  246. Residential Listing Agreements
    Broker is entitled to comission no matter who sales
  247. Safety Clause
    3 days after listing expires sale entered, then commission is paid to broker
  248. Exclusive Agency Listing
    Broker gets comission unless owner sells
  249. Open Listing
    Unilateral Contract awarded to broker who 1st furnishes a buyer ready, willing, and able
  250. Net Listing
    Broker gets all over a specified amount
  251. Buyer Listing
    Contract to purchase
  252. Procuring Clause
    States who was responsible for the sale
  253. Retention of Records
    Kept for 3 years after closing or from listing if unsold
  254. Option
    Contract to make a contract
  255. Optionor
    Owner who gives the option
  256. Optionee
    Person who gets the option
  257. RE Purchase Contract AKA
    Deposit Receipt
  258. Counteroffer
    Seller changes the terms of an offer
  259. As Is Provisions
    Fair to buyer only if patent or disclosed
  260. Equity Purchaser
    Purchaser of owner's interest
  261. Natural Hazards Disclosures:
    • 1) Special Flood Hazard Are
    • 2) Areas of Potential Flooding
    • 3) Very High Fire Severity Zone
    • 4) State Fire Responsibility Area
    • 5) Wildland Area
    • 6) Alquist-Priolo Special Studies Zone Act
    • 7) Seismic Hazard Zone
  262. Seismic Hazard Zone
    Areas prone to landslides and liquification
  263. Homeowners Guide to Earthquake Safety
    Units built before 1960
  264. RE Transfer Disclosure Statement
    States all known defects of a property