Real Estate Key Terms

What describes personal property?

Movable

What are three categories of real property?

Land, Fixture, Appurtenances

What is the key to water rights?

Reasonable Use

What is the most important test of a fixture?

Agreement of the parties

What are the 4 sovereign rights (govt)

Police power, eminent domain, taxation, escheat

What are the two types of estates?

Freehold and Less than Freehold

What are the two types of freehold estates?

Fee and Life

What instrument must be recorded

Involuntary transfers (ie Sheriffs deed)

What gives constructive notice

Recording or possession

What are 3 types of legal description

Recorded Map, Metes and Bounds, & US Government Survey

What is the most common method of conveying title (CA)

Grand Deed

Who signs a deed

Grantor (owner)

What type of deed does not have a warrant

Quitclaim Deed

What are 3 security devices in CA

Mortgage, trust deed and sales contract

How long are mechanics liens effective

90 days

What is the limit on the tax rate under Prop 13

1%

What is a homeowner's exemption amount

$7000

When is the First installment due, and delinquent (taxes)

November 1 and Decmeber 10th

When is the Second installment due, and delinquent (taxes)

February 1 and April 10th

How long is a judgement lien effective

10 years

What is the current homestead exemption amount for a family

$75,000

What instrument is the promise to pay

Promissory Note

What secures a promissory note

Trust deed or Mortgage

Who are the parties to a trust deed?

Trustor, trustee and beneficiary

Who are the parties to a mortgage

Mortgager (giver) and mortgagee (receiver)

Who gives the mortgage to a lender

Mortgagor (borrower)

How long does a trustees sale take

4 months

What is the minimum time to notify a trustor that a balloon payment is due

90 days

Under the Broker's loan law, what is the maximum charge for closing costs?

$700

Under the Broker's loan law, what is the maximum commission

15%

How many districts are in the federal reserve

12

How much is a point

1%

How much interest will a point offset?

1/8%

What is the usury limit for non-exempt transactions

10%

What is usury

practice of charging an unlawfully high or excessively unfair rate of interest on a loan

What are the essential elements of value

Utility, scarcity, demand, transferability

What are the 4 agents in production income

Labor, management, capital and land

What is the 1st step in the appraisal process

Define the problem

What are the 3 methods of appraisal

Cost, Sales approach, and income approach

Were appraisers grandfathered into new licensing

No

What is the minimum educational requirement to get an appraisers license

90 hours

What is the capitalization formula

I/R = V

What is the gross rent multiplier formula

V/I = F

What are the essential elements of a contract

Capacity, mutual consent, consideration, lawful objective

What kind of contract do you have if one element is missing

Void

Can a void contract ever be enforced

No

what 2 statues make a contract unenforceable

Statute of Frauds or limitations

What is the court action to regain possession from a tenant

Unlawful Detainer

How much security deposit can a landlord get for an unfurnished house

2 months

What is the maximum term for an agricultural lease

51 years

How long is a final public record valid

5 years

How many non-exempt parcels can you create and avoid the lands act

4

What required disclosure from sellers to buyers of non-exempt residential property is called

Transfer Disclosure Statement

What is the bracket rate called on the last dollar earned

Marginal

What is the overall rate called

Effective

Return ON investment

Profit

Return OF investment

Recapture

Your actual gain

Realized Gain

Your taxable gain

Recognized gain

The difference between realized and recognized gain is

Deffered gain

How many personal residences can you have

no limit

How many principal residences can you have

One

Deductions are subtracted from

Adjusted Gross Income

Tax credits are subtracted from

Tax Amount

Basis is

Cost, plus capital improvements, less depreciation taken

2 required characteristics for depreciable property

Limited Life and Produces Income

What type of property is for a 1031 exchange

Investment, Income, Trade or Business

What is another method of deferred tax

Installment sale

How long must a broker keep records

3 years

Recovery accounts limit

$20,000 and $100,000

Where can a broker place a trust fund

Trust Account, Escrow or principal

Who is responsible for UCC Filing

Vendee

Who is responsible for Certificate of Clearance

Vendee

What is the limit on sale of a liquor license

$6000

Feet in a Mile

5280

Square Feet in an acre

43,560

Acres in a section

640

Number of Acres in a 1/4 1/4 section

40