Agent Prep 2024 Vocabulary Study Set California Real
Estate Exam.
Bundle of Rights - ANS Legal rights of the real estate title holder. Includes the right of
possession, the right of control, the right of exclusion, the right of enjoyment and the
right of disposition.
Real Property - ANS Generally immovable. Goes with the real estate.
Personal Property - ANS Generally movable. Goes with the person. It can be
hypothecated, alienated and become real property (a fixture).
Chattel Real - ANS Often merely refers to tangible movable personal property.
Fixture - ANS Personal property that is now real property- for example, a pool covering
or a painting that has been nailed to the wall. The acronym MARIA is a test for whether
or not something is a fixture (Method Adaptability Relationship Intention Agreement).
Trade Fixture - ANS Linked to a business. They are personal property- for example, a
hairdresser's chair or a dentist chair. Although the chair is attached to the ground, it is
not real property- it is personal because when the hairdresser sells her property, the
chair will be going with her as part of her business. The chair is personal because it
belongs with the person, not the land.
Littoral Rights - ANS Land which abuts a body of static water- for example, a lake, sea
or ocean.
Accretion - ANS An increase in actual land due to natural causes- for example, from the
gradual action of the ocean or river waters.
Avulsion - ANS Land is washed away by water- for example, a dam breaks and the
rushing water washes away a strip of land.
Reliction - ANS Gradual recession of water, leaving land permanently uncovered.
Appurtenances - ANS Includes easements, stock in a mutual water company,
covenants, and minerals (still in the ground). They are considered real property and "run
with the land."
Freehold Estate - ANS Estate where ownership is held for an undefined length of time.
Fee Simple Estate - ANS Also known as an "Estate of Inheritance" or "Fee Simple
Absolute", this is a type of freehold estate. It can be sold or inherited, and is not free of
encumbrances (taxes). Fee Simple Absolute is the most interest that one can hold in
land.
,Fee Simple Defeasible - ANS Puts conditions on the use of a property- for example, if
the deed had a condition that no alcohol would be sold on the property and that was
violated, the owner could lose title.
Life Estate - ANS An interest in real property that lasts the length of someone's life. It is
a type of freehold estate because it is indefinite in duration. When the life tenant's life
ends, title reverts to the original owner (reversion) or a remainderman.
Life Estate Pur Autrie Vie - ANS An interest in real property that lasts the length of
someone's life (who is not the life tenant). It is a type of freehold estate because it is
indefinite in duration. When the "measuring life" ends, title reverts to the original owner
(reversion) or a remainderman.
Less Than Freehold Estate - ANS An estate interest held for a defined period of time.
Estate for Years - ANS Estate or tenancy lasting a fixed period of time- for example, a
summer rental lasting from April 5 to September 19.
Periodic Tenancy - ANS Estate where tenancy is renewed periodically- for example,
week to week, month to month or year to year.
Estate at Will - ANS Estate that can be ended at any time by the landlord or the tenant.
Estate at Sufferance - ANS Estate where a tenant continues to occupy a property after
a lease or rental agreement has ended- for example, a deadbeat tenant.
Lease - ANS A contract between a lessor and a lessee which gives possession but not
ownership, to the lessee. Also known as a "Leasehold Estate". The tenant doesn't need
to sign a lease to become a lessee, acting as a lessee is enough. This is NOT real
property, a lease is considered personal property. Think of them as a piece of paper- a
lease is a piece of paper, and you can move a piece of paper, so leases are personal
property.
Percentage Lease - ANS Lease where the amount of rent paid by the lessee is a
percentage of the gross income of the lessee's business- for example, a commercial
parking lot.
Net Lease - ANS Also known as a Triple Net Lease, this is a lease in which the tenant
pays for taxes, insurance and maintenance in addition to other fees like rent and
utilities.
Gross Lease - ANS Lease in which the tenant pays a fixed amount to the landlord- for
example, a standard residential lease.
, Sandwich Lease - ANS A lease in which an existing tenant sub-lets (or leases again)
the property to a third party. The lessee becomes the lessor.
Sale Leaseback - ANS Seller leases the recently-sold building from the new owner. The
Vendor becomes the Lessee. This allows the seller to deduct all future rent payments
as business expenditures.
Tenant Improvement Allowance - ANS The amount a landlord is willing to spend so the
tenant can retrofit or renovate a commercial space.
Abandonment - ANS Voluntarily giving up the rights and responsibilities of possession
of a property.
Subleases - ANS When an existing tenant sub-lets (or leases again) the property to a
third party. The lessee becomes the lessor.
Assignment - ANS When one party passes responsibility on to another.
Surrender - ANS Giving up possession of a property.
Constructive Eviction - ANS When a landlord does something, or fails to do something,
that he or she is legally obligated to do, rendering the property uninhabitable.
Estoppel Statement - ANS A signed statement certifying that certain facts are correct,
which cannot be later contradicted by the signer- for example, that a lease exists or that
rent is paid to a certain date.
Deed - ANS Evidence of property transfer.
Grant Deed - ANS A deed that includes two implied warranties: 1- The grantor has not
already given the title to another person; and 2- The estate has no undisclosed
encumbrances. It is not necessary to record the deed. Grant deeds are considered
officially executed when signed by the grantor.
Quitclaim Deed - ANS A deed that operates as a release. It transfers property quickly,
but without any warranties on the title of any kind.
Warranty Deed - ANS A deed in which a property owner, when transferring the title,
warrants that he owns the property free and clear of all liens.
Special Warranty Deed - ANS A deed in which the grantor warrants only against defects
that occurred during their ownership (the grantor of a special warranty deed does not
provide a warranty or guarantee against any defects in clear title that existed before
their ownership).
Estate Exam.
Bundle of Rights - ANS Legal rights of the real estate title holder. Includes the right of
possession, the right of control, the right of exclusion, the right of enjoyment and the
right of disposition.
Real Property - ANS Generally immovable. Goes with the real estate.
Personal Property - ANS Generally movable. Goes with the person. It can be
hypothecated, alienated and become real property (a fixture).
Chattel Real - ANS Often merely refers to tangible movable personal property.
Fixture - ANS Personal property that is now real property- for example, a pool covering
or a painting that has been nailed to the wall. The acronym MARIA is a test for whether
or not something is a fixture (Method Adaptability Relationship Intention Agreement).
Trade Fixture - ANS Linked to a business. They are personal property- for example, a
hairdresser's chair or a dentist chair. Although the chair is attached to the ground, it is
not real property- it is personal because when the hairdresser sells her property, the
chair will be going with her as part of her business. The chair is personal because it
belongs with the person, not the land.
Littoral Rights - ANS Land which abuts a body of static water- for example, a lake, sea
or ocean.
Accretion - ANS An increase in actual land due to natural causes- for example, from the
gradual action of the ocean or river waters.
Avulsion - ANS Land is washed away by water- for example, a dam breaks and the
rushing water washes away a strip of land.
Reliction - ANS Gradual recession of water, leaving land permanently uncovered.
Appurtenances - ANS Includes easements, stock in a mutual water company,
covenants, and minerals (still in the ground). They are considered real property and "run
with the land."
Freehold Estate - ANS Estate where ownership is held for an undefined length of time.
Fee Simple Estate - ANS Also known as an "Estate of Inheritance" or "Fee Simple
Absolute", this is a type of freehold estate. It can be sold or inherited, and is not free of
encumbrances (taxes). Fee Simple Absolute is the most interest that one can hold in
land.
,Fee Simple Defeasible - ANS Puts conditions on the use of a property- for example, if
the deed had a condition that no alcohol would be sold on the property and that was
violated, the owner could lose title.
Life Estate - ANS An interest in real property that lasts the length of someone's life. It is
a type of freehold estate because it is indefinite in duration. When the life tenant's life
ends, title reverts to the original owner (reversion) or a remainderman.
Life Estate Pur Autrie Vie - ANS An interest in real property that lasts the length of
someone's life (who is not the life tenant). It is a type of freehold estate because it is
indefinite in duration. When the "measuring life" ends, title reverts to the original owner
(reversion) or a remainderman.
Less Than Freehold Estate - ANS An estate interest held for a defined period of time.
Estate for Years - ANS Estate or tenancy lasting a fixed period of time- for example, a
summer rental lasting from April 5 to September 19.
Periodic Tenancy - ANS Estate where tenancy is renewed periodically- for example,
week to week, month to month or year to year.
Estate at Will - ANS Estate that can be ended at any time by the landlord or the tenant.
Estate at Sufferance - ANS Estate where a tenant continues to occupy a property after
a lease or rental agreement has ended- for example, a deadbeat tenant.
Lease - ANS A contract between a lessor and a lessee which gives possession but not
ownership, to the lessee. Also known as a "Leasehold Estate". The tenant doesn't need
to sign a lease to become a lessee, acting as a lessee is enough. This is NOT real
property, a lease is considered personal property. Think of them as a piece of paper- a
lease is a piece of paper, and you can move a piece of paper, so leases are personal
property.
Percentage Lease - ANS Lease where the amount of rent paid by the lessee is a
percentage of the gross income of the lessee's business- for example, a commercial
parking lot.
Net Lease - ANS Also known as a Triple Net Lease, this is a lease in which the tenant
pays for taxes, insurance and maintenance in addition to other fees like rent and
utilities.
Gross Lease - ANS Lease in which the tenant pays a fixed amount to the landlord- for
example, a standard residential lease.
, Sandwich Lease - ANS A lease in which an existing tenant sub-lets (or leases again)
the property to a third party. The lessee becomes the lessor.
Sale Leaseback - ANS Seller leases the recently-sold building from the new owner. The
Vendor becomes the Lessee. This allows the seller to deduct all future rent payments
as business expenditures.
Tenant Improvement Allowance - ANS The amount a landlord is willing to spend so the
tenant can retrofit or renovate a commercial space.
Abandonment - ANS Voluntarily giving up the rights and responsibilities of possession
of a property.
Subleases - ANS When an existing tenant sub-lets (or leases again) the property to a
third party. The lessee becomes the lessor.
Assignment - ANS When one party passes responsibility on to another.
Surrender - ANS Giving up possession of a property.
Constructive Eviction - ANS When a landlord does something, or fails to do something,
that he or she is legally obligated to do, rendering the property uninhabitable.
Estoppel Statement - ANS A signed statement certifying that certain facts are correct,
which cannot be later contradicted by the signer- for example, that a lease exists or that
rent is paid to a certain date.
Deed - ANS Evidence of property transfer.
Grant Deed - ANS A deed that includes two implied warranties: 1- The grantor has not
already given the title to another person; and 2- The estate has no undisclosed
encumbrances. It is not necessary to record the deed. Grant deeds are considered
officially executed when signed by the grantor.
Quitclaim Deed - ANS A deed that operates as a release. It transfers property quickly,
but without any warranties on the title of any kind.
Warranty Deed - ANS A deed in which a property owner, when transferring the title,
warrants that he owns the property free and clear of all liens.
Special Warranty Deed - ANS A deed in which the grantor warrants only against defects
that occurred during their ownership (the grantor of a special warranty deed does not
provide a warranty or guarantee against any defects in clear title that existed before
their ownership).
