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CA Real Estate Principles Exam
Prepping for State Exam using Principles.
Terms in this set (76)
Measures to 43,560 square feet, or 160 rods.
Type of system where individuals own land
Type of system where the government/monarchy owns land
Treaty of Guadalupe Hidalgo (1848)
Signed by Mexico giving California to the USA.
California was admitted to the Union
Metes and Bounds
Describes property by its perimeters and uses a starting point, distance, and direction. (Ex: 30 ft right from large rock)
US Goverment Survey
Created by Congress in 1785 to standardize land descriptions. Uses Section and Township Method
imaginary lines that run east/west. Also called Township lines
imaginary lines run north/south. Also called range lines
3 Main Base/Meridian Lines
Humboldt, Mt. Diablo, San Bernadino
Run every 24 miles
Consists of 36 sections.
A square mile
Consists of 640 acres
A section (in a township)
consists of 1 square mile
Lot, Block, and Tract Systems
A type of property description using approved subdivision maps.
Includes Land, Mineral Rights, Lateral Support Rights, Airspace Rights, and Riparian Rights
The right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land provided such use does not injure other riparian owners.
Gradual addition of sediment to the shore by flowing water
The land/sediment added to a shore by flowing water
The addition of land by the removal of water. Ex: a dried pond
the right of landowners on a shore of an ocean or a large lake to use the water. Key: water that does not 'flow'.
Belonging to; adjunct; appended or annexed to. Appurtenant items pass with the land when the property is transferred.
Physical Characteristics of Land
Permanence. Each parcel is indestructible.
Immobility. Each parcel has a location that cannot be changed.
Non-Homgeneous. Each Parcel is unique
Economic Characteristics of Land
Scarcity. There is a finite commodity of parcels.
Modification. Each parcel can have value affected by modification.
Fixity of Location. Capital and Labor Improvements affect each parcel.
Situs. Each parcel is unique physically.
Growing crops. Switches from real property while growing to personal property once cut.
items of personal property that are attached to the land and become part of the real estate.
M- Method of Attachment (How was it installed?)
A- Adaptability for ordinary use (Custom for house?)
R- Relationship of Parties (Buyers usually prevail over sellers)
I- Intention of Owner (during the installation. Was it meant forever?)
A- Agreement (if any between the properties to include)
Commercial personal property. Stays personal property.
Bundle of Rights
Use & Quiet Enjoyment
Dispose of it
Exclude others from using it.
Rights are Severable & Dvisible.
Choses in Action
Intangible personal property (i.e. stock)
Chosess in Possession
Tangible personal property (i.e. furniture).
Ownership stake of business owned by one individual
Ownership stake of business with two+ people conducting business for profit.
Equal possession but not necessarily equal shares.
Ownership stake for business where partners are more like silent partners. They have very nominal part in mgmt and no liability for debt.
Ownership stake for business where 2+ people join for a single project.
Ownership stake for business which must have a charter from the state. Treated as a person by law.
Aarrangement in which property is held by one party for the benefit of another.
Gives the property to the trust.
The person benefiting from the trust.
Holds the property in the trust for the benefit of another.
REIT (Real Estate Investment Trusts)
Special Trust for RE Investment where investors buy shares and a trustee invests. Has special criteria including dispersement of 95% of the ordinary income
Type of Ownership estate. Has an indeterminate duration.
Estate in Fee
Type of ownership. Also known as Fee Simple Absolute. Owner has property without any qualifications attached.
Fee Simple Qualified
Type of ownership. Owner has a condition attached to ownership rights which if broken, causes termination or revocation.
A conditional event that must occur before the transference of ownership. (Ex: City builds a park, then owner gives parcel)
A conditional event that occurs after property is transferred. (Ex: owner agrees to give parcel on condition it is only used as a park)
Another word for personal property.
Type of ownership. Ownership interest limited to the duration of a designated person's lifetime.
Less than Freehold Estates
Also known as Leases. The right to use real property for a period of time.
Estate for years
Type of lease that has a fixed duration agreed upon by lessor and leasee. Max for agricultural lease is 51 years.
Estate from period to period
Type of lease with no fixed duration and continuously renews, like a month-to-month.
Estate at will
Type of lease that has no fixed duration and can be terminated at will by giving a notice.
Estate at sufferance
Type of "lease" created when a lessee wrongfully retains possession after the lease term has ended.
Elements of a lease
1. Identification of parties & capacity to contract
2. Adequate description
3. Agreement of parties
4. Stated consideration and duration
5. Rights and obligations
6. Legal purpose
7. Lessor must execute
Sole ownership in a property.
includes all types of ownership that are two or more persons.
A court process by which property may be seized and held as security for a possible future judgement.
Also means "suit pending". Gives constructive notice of pending litigation.
Covenants Conditions, and Restrictions. The basic rules for a condo or subdivision
anything that affects or limits the title or value of property. Ex: Mortgages or easements
A right, privilege, or interested for one person to have in the land of another. A non-money encumbrance.
Type of easement attached to a specific parcel of land.
Easements in Gross
Type of easement that affects multiple parcels, such as utility lines.
- Allows for the protection of the homeowner's equity with certain exceptions.
- Max for single people: $50,000.
- Married people or head of household: $75,000
- 65+ or people with low income/mentally disabled: $150,000
CLTA Title Insurance Policy
Also referred to as standard title insurance coverage, named for the company that insures it: California Land Title Association.
ALTA Title Insurance Policy
Type of Title Insurance that covers the "extended coverage" and named after the company that insures it: American Land Title Association. Includes unrecorded liens, off record easements, rights of parties in physical possession, and rights/claims which would be revealed with an actual inspection.
The agent's authority to do anything and everything for the principal in a particular area over more than one transaction (Ex: Salesperson's a general agent of their employing broker or a property manager for a building owner)
The agent's authority for a specific act or business matter for the principal (Ex: the salesperson to find a home for a buyer)
replacing one person with another in regards to a legal right or obligation.
doctrine under which a person's acts or failure to act prevents her from seeking legal relief, although she would have been entitled to relief otherwise
The substitution of a new obligation or contract for an old one by the mutual agreement of the parties. Ex: a counter offer.
Delay or negligence asserting one's legal rights.
"Going to the State". The process that should a property be abandoned, it reverts back to the state.
An owner who dies with a valid will in place.
An owner who dies without a valid will in place. The property would then escheat to the state.
Part of the Mortgage Licensing Act of 2008. (Federal Secure and Fair Enforcement)
THIS SET IS OFTEN IN FOLDERS WITH...
California Real Estate - State Test Prep
California Real Estate Exam Questions
CA Real Estate Exam
CA Real Estate Principles Book
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