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What is a continuous urban corridor joining at least two cities?
What is a continuous urban corridor joining at least two cities?
Megalopolis
What is another term for the term real property?
What is another term for the term real property?
The bundle of rights
What are the rights of a landowner to a river bordering their property called?
What are the rights of a landowner to a river bordering their property called?
Riparian rights
A fixture in a real estate transfer is normally assumed to be included in the transfer.
A fixture in a real estate transfer is normally assumed to be included in the transfer.
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A tenant may take jewelry cases if removal doesn't cause substantial damage.
A tenant may take jewelry cases if removal doesn't cause substantial damage.
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A legal description of property must meet specific criteria.
A legal description of property must meet specific criteria.
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What is the lot and block system also known as?
What is the lot and block system also known as?
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How many acres are in a section of land?
How many acres are in a section of land?
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Which type of ownership provides the most complete bundle of rights?
Which type of ownership provides the most complete bundle of rights?
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What are the interests of a holder of a life estate?
What are the interests of a holder of a life estate?
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The requirement for multiple owners to take title at the same time is characteristic of joint tenancy.
The requirement for multiple owners to take title at the same time is characteristic of joint tenancy.
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Which of the following types of ownership are most similar in terms of how property is inherited?
Which of the following types of ownership are most similar in terms of how property is inherited?
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What is a group of people joining together to invest in real estate called?
What is a group of people joining together to invest in real estate called?
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A landowner is entitled to compensation for zoning changes when denied all practical economic use.
A landowner is entitled to compensation for zoning changes when denied all practical economic use.
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What is a statement of goals for community growth?
What is a statement of goals for community growth?
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What should a landowner seeking relief for physical difficulty in developing property seek?
What should a landowner seeking relief for physical difficulty in developing property seek?
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The Subdivided Lands Law takes effect at the fifth lot.
The Subdivided Lands Law takes effect at the fifth lot.
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What is the primary difference between a common interest subdivision and a standard subdivision?
What is the primary difference between a common interest subdivision and a standard subdivision?
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The state has special control for development in all of the above.
The state has special control for development in all of the above.
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All liens are encumbrances. All encumbrances are limitations.
All liens are encumbrances. All encumbrances are limitations.
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A mechanic's lien creates a cloud on title.
A mechanic's lien creates a cloud on title.
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What is the land benefiting from an easement called?
What is the land benefiting from an easement called?
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A deed restriction prohibiting the sale of property to certain ethnic groups is illegal and unenforceable.
A deed restriction prohibiting the sale of property to certain ethnic groups is illegal and unenforceable.
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A private deed restriction placing a restraint on alienation is all of the above.
A private deed restriction placing a restraint on alienation is all of the above.
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What is the process by which eminent domain occurs called?
What is the process by which eminent domain occurs called?
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An easement is an encumbrance always.
An easement is an encumbrance always.
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What does an agent represent?
What does an agent represent?
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What is another term for an agent entrusted to act on someone's behalf?
What is another term for an agent entrusted to act on someone's behalf?
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The seller of a one-family house is required to disclose to buyers the structural and mechanical condition of the property.
The seller of a one-family house is required to disclose to buyers the structural and mechanical condition of the property.
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Who is commonly referred to as the procuring cause of a sale?
Who is commonly referred to as the procuring cause of a sale?
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Seller B has violated the duty of care.
Seller B has violated the duty of care.
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What type of listing agreement did Seller A sign?
What type of listing agreement did Seller A sign?
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What type of contract exists between Broker A and Seller B?
What type of contract exists between Broker A and Seller B?
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What type of listing agreement is this: Seller A wants $200,000 after expenses. Broker B keeps anything above that.
What type of listing agreement is this: Seller A wants $200,000 after expenses. Broker B keeps anything above that.
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Who may a cooperating broker represent?
Who may a cooperating broker represent?
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Who owes fiduciary responsibility to the buyer?
Who owes fiduciary responsibility to the buyer?
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A real estate salesperson is always considered an employee.
A real estate salesperson is always considered an employee.
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Which of the following is NOT a type of listing agreement?
Which of the following is NOT a type of listing agreement?
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What type of agent is a broker hired to sell a house?
What type of agent is a broker hired to sell a house?
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What is it called when a broker represents both the buyer and seller in a transaction?
What is it called when a broker represents both the buyer and seller in a transaction?
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There are no exceptions to agency agreements for property sale.
There are no exceptions to agency agreements for property sale.
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What is the term for when someone builds on a portion of another person's property without permission?
What is the term for when someone builds on a portion of another person's property without permission?
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What action should an agent take if instructed by the seller to not show the property to certain ethnic groups?
What action should an agent take if instructed by the seller to not show the property to certain ethnic groups?
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In which situation does a listing agreement become void due to external circumstances?
In which situation does a listing agreement become void due to external circumstances?
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Which type of agent has the authority to act on behalf of a principal as outlined in their agreement?
Which type of agent has the authority to act on behalf of a principal as outlined in their agreement?
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What is the main requirement for making an exclusive listing agreement legally binding?
What is the main requirement for making an exclusive listing agreement legally binding?
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Which type of easement allows utility companies to access land for maintenance without running with the land?
Which type of easement allows utility companies to access land for maintenance without running with the land?
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What is the primary consequence of violating a condition in a deed?
What is the primary consequence of violating a condition in a deed?
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In a real estate transaction, what type of agreement ensures that the broker gets paid if the seller successfully sells the property?
In a real estate transaction, what type of agreement ensures that the broker gets paid if the seller successfully sells the property?
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What type of listing agreement allows a seller to sell the property themselves without owing a commission to the broker?
What type of listing agreement allows a seller to sell the property themselves without owing a commission to the broker?
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Which party is typically responsible for showcasing a property to potential buyers?
Which party is typically responsible for showcasing a property to potential buyers?
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Which of the following is prohibited regarding a property's deed restriction?
Which of the following is prohibited regarding a property's deed restriction?
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What defines the highest level of responsibility an agent has to their client?
What defines the highest level of responsibility an agent has to their client?
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What is referred to when a broker represents both the buyer and seller in a transaction?
What is referred to when a broker represents both the buyer and seller in a transaction?
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What is the type of ownership that provides the least amount of rights to the owner?
What is the type of ownership that provides the least amount of rights to the owner?
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Which term describes a property restriction that can make a sale void?
Which term describes a property restriction that can make a sale void?
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What is typically the immediate result of a mechanic's lien being recorded against a property?
What is typically the immediate result of a mechanic's lien being recorded against a property?
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Which characteristic defines a joint tenancy in property ownership?
Which characteristic defines a joint tenancy in property ownership?
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Which of the following options is considered a benefit of owning a life estate?
Which of the following options is considered a benefit of owning a life estate?
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What is a primary consideration when establishing a variance for a property?
What is a primary consideration when establishing a variance for a property?
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What critical role does the dominant tenement play in the context of easements?
What critical role does the dominant tenement play in the context of easements?
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What must a private deed restriction ensure for it to hold legal weight?
What must a private deed restriction ensure for it to hold legal weight?
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What term describes the interest of Owner A's children in his house when he leaves it subject to a life estate for his sister?
What term describes the interest of Owner A's children in his house when he leaves it subject to a life estate for his sister?
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What type of lien is considered the most common voluntary lien?
What type of lien is considered the most common voluntary lien?
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How can Owner B gain access to the road after purchasing a landlocked piece of property from Owner A?
How can Owner B gain access to the road after purchasing a landlocked piece of property from Owner A?
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What happens when lumber delivered to a house becomes a fixture?
What happens when lumber delivered to a house becomes a fixture?
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When Owner A gives a subsurface easement for a sewer line, what is this type of easement described as?
When Owner A gives a subsurface easement for a sewer line, what is this type of easement described as?
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What is true regarding Owner A’s ability to subdivide his 10 acres under a deed restriction?
What is true regarding Owner A’s ability to subdivide his 10 acres under a deed restriction?
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What is the status of ownership when A sells her share in a property owned with B and C as joint tenants?
What is the status of ownership when A sells her share in a property owned with B and C as joint tenants?
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What is the smallest subdivision affected by the Subdivision Map Act?
What is the smallest subdivision affected by the Subdivision Map Act?
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Study Notes
Real Estate Terminology
- Megalopolis: A continuous urban corridor connecting at least two cities.
- Bundle of Rights: Another term for real property.
- Riparian Rights: Landowner's rights to a bordering river.
- Fixture: An item assumed included in a real estate transfer.
- Jewelry Cases: A tenant may remove jewelry cases if removal doesn't significantly damage the property.
- Legal Description of Property: Must meet specific requirements.
- Lot and Block System: Also known as the rectangular survey system.
- Section of Land: Contains 640 acres.
- Fee Simple Absolute: Ownership providing the most complete bundle of rights.
- Life Estate: Ownership, possession, and use rights for the holder's lifetime.
- Joint Tenancy: Multiple owners take title simultaneously, with right of survivorship.
- Joint Tenancy and Community Property with Right of Survivorship: Similar types of property inheritance.
- Syndicate: A group investing in real estate collectively.
- Zoning Changes Compensation: Landowners are entitled to compensation if zoning changes deny all practical economic use.
- General Plan: A statement outlining community growth goals.
- Variance: Relief sought by property owners for development difficulties.
- Subdivided Lands Law: Effective from the fifth lot onward in subdivisions.
- Common Interest Subdivision: Ownership differs from standard subdivisions because of common area ownership.
- State Control for Development: State control over development applies across diverse facets.
- Liens and Encumbrances: All liens are encumbrances, and all encumbrances are limitations.
- Mechanic's Lien: Creates a cloud on title.
- Dominant Tenement: Land benefiting from an easement.
- Deed Restriction: Illegal and unenforceable if prohibiting sales to certain ethnic groups.
- Private Deed Restriction: Restraints on alienation meet various criteria.
- Eminent Domain: The process is called condemnation.
- Easement: Always an encumbrance.
- Agent: Represents a principal.
- Fiduciary: Another term for an agent acting on behalf of someone else.
- Disclosure Requirement (One-Family House): Sellers must disclose the property's structural and mechanical condition.
- Procuring Cause: The agent bringing a ready, willing, and able buyer to a seller.
- Duty of Care (Seller): Seller B has violated this duty.
- Exclusive Agency Listing: The type of listing agreement signed by Seller A.
- Bilateral Express Contract: Exists between Broker A and Seller B.
- Net Listing: Broker B keeps any amount exceeding $200,000.
- Cooperating Broker: Represents various entities; owes fiduciary duty to the buyer.
- Buyer's Agent: Owes fiduciary responsibility to the buyer.
- Real Estate Salesperson: Not always an employee.
- Multiple Listing: Not a type of listing agreement.
- Broker: Hired to sell a house; a special agent.
- Dual Agency: Creating a dual agency relationship.
- Agency Agreements for Property Sale: No exceptions apply to written agreements.
- Express Unilateral Agreement: Seller B pays a commission if Broker A finds a buyer.
- Uncashed Deposit Check: Held until the offer is accepted.
- Highest and Best Use: The most profitable use of a property.
- Characteristic of Value: Change.
- Plottage: Added value, specifically $125,000 in this instance.
- Making Adjustments: Accounting for differences between properties in appraisal.
- Functional Obsolescence: Feature of a property, like having to pass through another bedroom to reach a bedroom.
- Effective Gross Income: Deducted from potential gross income to account for vacancy and collection losses.
- Effective Date: The date of the value estimate in an appraisal.
- Economic Age-Life Method: Assumes even depreciation, used in estimating value.
- Capitalization Rate: Another term used for the rate of return.
- Interim Use of Property: Parking lot transformed into an office building.
- Gross Rent Multiplier Approach: Useful for single-family homes.
- Reconcile the Three Values: Appraisers do this after applying various methods.
- Potential Gross Income: Market rent plus other building income.
- Cost Approach: Approximates land and building value independently, useful for unique properties.
- Ad Valorem: Closely associated with assessed value.
- Percentage of Property Value (Payment): Appraisers are paid a percentage of the property value.
- Principle of Contribution: Improvement impacts value, not necessarily its cost initially.
- Lower Property Values: Increasing mortgage interest can cause lower property value.
- Leverage: Buying with borrowed funds, often for investments.
- One Point on $215,000 Mortgage: $2,150.
- Adjusting the Discount Rate: Affects consumer credit rates directly, set by the Federal Reserve.
- FDIC: Insured deposits after 1989.
- Equity: Value minus debts.
- Promissory Note: Document detailing loan payment terms.
- Amortization: Equal loan payments leading to loan closure.
- Negotiable Instrument: Allows for note transferability.
- Interest on $280,000 Loan: $19,600 at 7% in the first year.
- California Law (Homeowners): Protects homeowners during sale.
- Down Payment Calculation: $66,000 down payment on a $330,000 house (80% LTV).
- Discount Point Effect on Lender: Raises lender's effective yield.
- Equity (Definition): Value minus liens.
- Advertising of Real Estate Loans: Controlled by Regulation Z.
- Regulation Z: Controls mortgage advertising, requiring special handling of taxes and insurance.
- Impound Account: Special account for taxes and insurance, mandated by Regulation Z.
- VA and FHA Loans: Direct lending agencies.
- Graduated Payment Mortgage: Results in negative amortization.
- Purchase Financing: Seller takes possession temporarily, while title transfer delays.
- Discount Rate: Federal Reserve's interest rate used for discounting commercial paper.
- Profit from Property Appreciation: $75,000 profit from appreciation in price.
- Testate/Intestate Succession: No need for intestate laws if a will is involved.
- Accretions and Accession: All accretions are accessions.
- Statutory Dedication: Builder turning over streets to the town.
- Validity of Deed: Grantor's signature required for deed validity.
- Title Insurance: Extra coverage for title problems.
- Escrow: Created by a binding contract, with specific duties for agent.
- Escrow Agent Duties: Independent investigation not a duty.
- Proration: Allocating closing costs, like allocating prepaid taxes.
- Taxes Owed at Closing: Seller's prepayment affects buyer's responsibility.
- Cloud on Title: Opposite situation to marketable title.
- Zoning Changes (Relevant Document): Not covered by ALTA or CLTA policies.
- Ad Valorem (Taxes): Usually associated with property taxes.
- Annual Tax Calculation: $550 for a $55,000 assessed value.
- Commingling: Mixing client funds with broker’s personal funds, a violation.
- Negotiable Check: Most desirable for the seller, immediately negotiable.
- Unruh Civil Rights Act: Antidiscrimination for business establishments.
- Housing Financial Discrimination Act: Prohibits redlining.
- Blind Ads (Real Estate): Not for specific properties; must be for a specific property.
- Mobile Home Ad Withdrawal: Within 48 hours of posting.
- Transaction Record Retention: 3 years after closing.
- Supervisory Responsibility (Broker): Equal for independent contractors.
- Commission Collection Violation: Salesperson directly receiving from homeowner.
- Unlicensed Assistant Duties: Create sales brochures, within limits.
- Department of Real Estate: Administers California real estate law.
- Real Estate Law Penalties: Penalty types. No specifics are given regarding imprisonment for not paying child support.
- Temporary License Type: Not stated in the provided text.
- Real Estate License Exemption: Corporations performing real estate services not exempt.
- California Real Estate Recovery Fund: Funds for financial injury due to fraudulent practices.
- Dual Agency Consent: Required by both California law and NAR rules.
- Salesperson Commission Licensing: Necessary, usually coinciding with the transaction itself.
- Salesperson License Application: One year to acquire a license after exam.
- Salespeople Employment: All salespeople need to work for a broker.
- License Renewal Grace Period: Two years, no practice permitted.
- Maximum Amount on Commercial Property: No maximum amount is stated.
- Who Can Pay for Public Improvements: This is not spelled out.
- Certification of Inspection Completion: The Real Estate Transfer Disclosure Statement.
- Broker's Response to Death Inquiry: Must answer honestly.
- Seller Disclosure (Physical Condition): Disclosure required for mobile home property sale.
- Time Frame for Legal Action (Dispute): Three years from the property transfer.
- Funding Source for Real Estate Recovery Account: Real estate license fees.
- Least Likely Fraudulent Misrepresentation: Listing description.
- When Broker A Must Disclose Interest: All situations where broker has a financial interest in the property.
- Member of the National Association of Realtors: Realtor.
- Homeowner's Guide to Earthquake Safety provision date: January 1, 1960, before the guide was established.
- Non-Material Fact Affecting Property Value: Significant minority population in community.
- Houses Built After 1980 (Sold by Broker): Lead-paint hazard disclosure required.
- State Responsibility Areas Disclosure Focus: Fire hazard, if applicable.
- Ordnance Location Disclosure Concern: Risks from military installations, if applicable.
- Type of Contract for Selling Property Express bilateral contract.
- Contract Involving Burning Down a Building Void.
- Nature of an Option to Purchase Property Express unilateral agreement.
- Listing Agreement Not Requiring Writing Agent representing landlord, if per-room rent.
- Who a Real Estate Broker Represents Buyer and/or seller.
- When a Real Estate Commission Is Generally Earned Mutual agreement, or fulfillment of contract terms.
- Offeree and Offeror Example Seller B (offeror), Buyer A (offeree).
- Minimum Age for a Married Person: No minimum age required for married individuals to enter a contract in California.
- Consideration in an Option Agreement The consideration is the amount paid for the right to purchase the property.
- Nature of an Exclusive Authorization and Right-to-Sell Agreement: Express bilateral contract.
- Tenant Staying After Lease Expiration: Estate at sufferance.
- Tenant's Interest in Property: Leasehold considered personal property
- Creating a Periodic Tenancy: From either A or B.
- Requirement for Commission Payment Enforcement: The agreement must be in writing.
- Broker A's Action With Two Offers: Present both to the seller immediately, per guidelines.
- Coverage of Mobilehome Residency Law: Mobilehome Residency Law covers agreements for both A and B.
- Charging Interest Above Statutory Maximum Rate: Usury
- Primary Documents Dealing With Loan Payment: Mortgage/deed of trust; and promissory note.
- Requirement for Owner A Selling Property: Owner A must reserve an easement appurtenant for himself.
- Covenant vs. Condition in a Deed: Violation of condition can result in forfeiture.
- Changing Deed Restriction: Voluntary agreement by all homeowners.
- Demography: The study of characteristics of human populations.
- Real Property: Land, structures, and fixtures.
- Fee Simple Condition Subsequent: Title reverts to the seller if a condition isn't met.
- Remainder Interest: Children's interest after the life estate ends.
- Tenants in Severalty: Ownership by one person.
- Trust Title Holder: Trustee holds title for the benefit of another.
- Homestead Exclusion Reinvestment Period: Six months to reinvest protected equity.
- Mortgage Lien: Primary voluntary lien.
- Easement by Necessity: Access obtained due to landlocked property.
- Land Sold by Owner A: Northwest quarter of a section (160 acres).
- Fixture Definition: Lumber becomes a fixture when the deck is complete.
- Common Unity in Ownership: Joint tenants and tenants in common share possession.
- Correlative Term (Water Rights): Underground water rights.
- Government Survey: Legal description system based on surveying.
- New Ownership Status: A, B, and C change to joint tenants, with D as tenant in common.
- Cloud on Title (Zoning): Pending zoning changes can't result in a cloud.
- Easement in Gross by Grant: Easement for a general purpose across real estate.
- Termination of Easement: Merger with dominant tenement.
- Smallest Subdivision Affected: Two or more parcels, per guidelines.
- Environmental Impact Report Requirement: Required for subdivisions with substantial impact.
- Deed Restriction on Subdivision: Owner A can't subdivide per restriction..
- First Debt to Be Paid (Default): Tax liens.
- Encroachment: Structure encroaches slightly onto another parcel.
- Selling Air Rights: Owning a building and potential utilization of airspace.
- General Agent: Handles various affairs and duties, not only property.
- Exclusive Listing Agreement Validity: Legally valid agreement with definitive termination date..
- Eminent Domain Effects on Listing: The listing agreement terminated by the state's action.
- Disclosure of Agency Representation: Written disclosure required.
- Implied Agency: Agency implied by actions.
- Actual Authority: Agent's power by agreement.
- Commingling Violation: Mixing buyer funds and broker funds, which is a violation.
- Listing Agreements Compensation: Specific criteria to decide whether payment required.
- Agent's Confidentiality Duty: Confidentiality is an essential duty.
- Principle of Loyalty: Agent should prioritize client's interests.
- Undisclosed Dual Agency Problem: Broker's failure to reveal relationship to both parties.
- Option Listing: Broker can act as principal and agent.
- Duty of Obedience: Agent has a duty to obey legitimate principal instructions, within bounds.
Key Laws and Regulations
- Unruh Civil Rights Act: Extends antidiscrimination to business establishments.
- Housing Financial Discrimination Act: Prohibits redlining.
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Description
Test your knowledge of essential real estate terminology with this quiz. From understanding legal descriptions to property rights, this quiz covers key concepts that every real estate professional should know. Enhance your vocabulary and comprehension in the field of real estate.
