CA DRE EXAM VOCAB Questions and Answers

OR rule - ANSWER-Implying Giving EE rule - ANSWER-implying receiving Bundle of Rights - ANSWER-The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property. Real Property - ANSWER-physical property such as land and buildings, generally immovable Personal Property - ANSWER-possessions such as jewelry, furniture, and boats Chattel Real - ANSWER-personal property fixture - ANSWER-incorporated into the land, real property Trade Fixtures - ANSWER-business office, personal property Riparian Rights - ANSWER-moving body of water, ex. a river Littoral Rights - ANSWER-not moving water, ex. a lake accretion - ANSWER-increasing the size of property Avulsion - ANSWER-The sudden tearing away of land Reliction - ANSWER-water recedes so new land is acquired appurtenances - ANSWER-run with the land Freehold Estate - ANSWER-unlimited in duration/ ownership fee simple estate - ANSWER-Absolute ownership, not free from encumbrances, IE. taxes Fee Simple Defeasible - ANSWER-ownership of property that has a condition that can cause loss of title Life Estate - ANSWER-ownership based upon the life of another holder of life estate - ANSWER-entitled to use property that is held in a life estate Estate in Reversion - ANSWER-An estate that comes back to the original grantor Estate in Remainder - ANSWER-Estate transferred to someone other then the grantor Less than Freehold Estate - ANSWER-limited in duration ex. leases Estate for years - ANSWER-defined period of time and termination date, ex. summer rental Periodic Tenancy - ANSWER-from period to period, month to month, week to week Estate at will - ANSWER-ends at any time Estate at Sufferance - ANSWER-Tenant remains on the property, without the landlord's permission, after the lease has expired Percentage Lease - ANSWER-percentage of gross receipts Net Lease - ANSWER-taxes, insurance, maintenance, ex. triple net lease gross lease - ANSWER-set fee Sandwich Lease - ANSWER-Primary party is lessee and a lessor Sublease - ANSWER-The transfer of part of the term of a lease, but not the remainder of it, to someone else. Tenant Improvement Allowance - ANSWER-agreement of landlord to compensate for all or part of construction of commercial space Abandonment - ANSWER-release of responsibility/ ownership assignment - ANSWER-giving responsibility/ ownership surrender - ANSWER-release of responsibilty/ ownership Constructive Eviction - ANSWER-Landlord either does something or fails to do something that he has a legal duty to provide. Estoppel Statement - ANSWER-A "signed statement by a party certifying for another's benefit that certain facts are correct, it defines each party's responsibilities deeds - ANSWER-Evidence of transfer Quitclaim Deed - ANSWER-immediate transfer of ownership Warranty Deed - ANSWER-The grantor guarantees that the title is good, free, and clear of all liens and encumbrances Special Warranty Deed - ANSWER-guarantees clear title for the duration of previous owner General Warranty Deed - ANSWER-guarantees clear title for the life of the property title - ANSWER-ownership legal title - ANSWER-right to sell Equitable Title - ANSWER-right to gain equity Chain of Title - ANSWER-History of ownership which shows conveyances and encumbrances Abstract of Title - ANSWER-Summary of title Cloud on Title - ANSWER-Defect on title ex. single women married Alienation of Title - ANSWER-a change in ownership of any kind Severalty - ANSWER-sole ownership Concurrent Estates - ANSWER-two or more people owning property at the same time Joint Tenancy - ANSWER-unity of time, title, interest and possession, (TTIP) Tenancy in Common - ANSWER-form of co-ownership in which the shares may be unequal and there is no right of survivorship encumbrance - ANSWER-anything that limits the property Easment - ANSWER-right to cross another persons land Dominant Tenement - ANSWER-property with the right of crossing Servient Tenement - ANSWER-the property that is being crossed Easment by Prescription - ANSWER-implied easement granted after the dominant estate has used the property Appurtenant Easement - ANSWER-easement that transfer with the transfer of title Easement in Gross - ANSWER-No dominant tenement Government Powers (PETE) - ANSWER-Police Power, Eminent Domain, Taxation, Escheat police power - ANSWER-regulations implemented for public health, and general welfare R3 - ANSWER-multi family residential Variance - ANSWER-granted exception to rule Down Zoning - ANSWER-Commercial to residential Nonconforming use - ANSWER-use that was allowed under prior zoning regulations granfather clause - ANSWER-old rule that continues to apply Escheat - ANSWER-goes to the state when somebody dies without will or without heirs Intestate - ANSWER-no will Testate - ANSWER-has will Holographic Will - ANSWER-handwritten will Probate - ANSWER-process of allocating assets of deceased boot - ANSWER-cash or other property added to and exchange to make value equal ad valorem - ANSWER-according to value eminent domain - ANSWER-Power of a government to take private property for public use. condemnation - ANSWER-process of paying when property taken by eminent domain Inverse Condemnation - ANSWER-Suing the government for just compensation when property is taken encroachment - ANSWER-property crossing another property line Liens - ANSWER-Money owed General liens - ANSWER-Lien against all personal property specific liens - ANSWER-A lien affecting or attaching only to a certain, specific parcel of land or piece of property. Voluntary Lien - ANSWER-A lien placed on property with the knowledge and consent of the property owner. Mechanic's Lien - ANSWER-A statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building. Judgment Lien - ANSWER-a court-ordered lien placed against property when the homeowner fails to pay a debt. Lis Pendis - ANSWER-law suit pending injunctions - ANSWER-court order to stop Constructive Notice - ANSWER-a person should have known, as a reasonable person would have acknowledgement - ANSWER-authentic legal instruments legal validity a credit - ANSWER-money received short rate - ANSWER-Penalty for not fulfilling contract Impounds - ANSWER-method of collecting debt that take priority over loan RESPA - ANSWER-Real Estate Settlement Procedures Act - disclosure of settlement costs and eliminate abusive practices TILA - ANSWER-Truth in Lending Act - provide disclosure of lending fees and practices Fair housing act - ANSWER-1968, prevents discrimination Sherman Anti-Trust - ANSWER-Promotes free market competition Americans with Disabilities Act - ANSWER-All public property must be accessible to everyone material fact - ANSWER-something a reasonable Pearson would recognize Steering - ANSWER-Discriminatory acts against buyers. Blockbusting - ANSWER-Inducing panic selling based on prejudice Redling - ANSWER-choosing who to loan money to based upon race Conversion - ANSWER-using clients money Puffing - ANSWER-Exaggerating caveat emptor - ANSWER-buyer beware Contract Essentials - ANSWER-Competent parties Mutual agreement Lawful objective Consideration Void Contract - ANSWER-Lacks one of the 4 essential elements Voidable Contract - ANSWER-Option to rescind Bilateral Contract - ANSWER-two promises Unilateral Contract - ANSWER-one promise Executed Contract - ANSWER-all terms of contract have been fulfilled executory contract - ANSWER-a contract yet ti be completed Statute of Frauds - ANSWER-requires certain contracts to be in writing statute if limitations - ANSWER-what the necessary time duration are Novation - ANSWER-a new contract codicil - ANSWER-an amendment to a will agency - ANSWER-ACOLD, accountability, confidentiality, obedience, loyalty, disclosure Fiduciary - ANSWER-loyalty Actual Authority - ANSWER-power conferred upon the agent by actual consent manifested by the principal to the agent dual agent - ANSWER-Represents both the buyer and seller Universal Agent - ANSWER-Broad authority to act on behalf of principle for unlimited amount of time