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Real Estate
| Term | Definition |
|---|---|
| Affordability index | How many households will be able to afford a median priced home. |
| Net worth | Assets minus liabilities |
| Appreciation | In crease in market value of real estate |
| Inflation | Increase in price of good and services. Or decrease in thr dollars purchasing power |
| Megalopolis | Large densely populated metropolitan area with a large number of urban areas and smaller surrounding cities. |
| California Climate | Mediterranean |
| Capitalism | Economic system where the economy resources are privately owned |
| Housing market | Inventory of available housing. |
| Mortgage interest rates | Interest rates determine the amount of a loan a borrower can get |
| C.A.R. | California Association of Realtors |
| Demographics | Information from a variety of sources used to create a broad profile of a community. |
| Bundle of Rights | Property rights, Use, Posses, transfer, encumber, enjoy |
| UPTEE | Bundle of Rights Use, possess, transfer, enjoy, encumber |
| Personal Property | Also known as Chattel Anything moveable, sold with a bill of sale, trade fixtures, cars, insurance policies are a few examples |
| Real Property | Is the land, anything permanently attached to the land, anything immovable by law. Usually sold or transferred by deed |
| Land | Land is real property and 3 dimensional. Surface rights Air Rights Subsurface Rights |
| Defined channel | Any natural watercourse, even if dry. |
| Types of flood water | Inundation Sheet overflow Ponding |
| Riparian Rights | Property bordering a river or stream, owner has reasonable use of flowing water. |
| Littoral Rights | Owners bordering a lake, generally own to the average water mark or edge of the lake |
| Appropriation | The right to use water for a beneficial use by diverting surface water. |
| Air Rights | The rights an owner has to the airspace above the property to a reasonable height. |
| Subsurface Rights | The land owners rights to the natural resources, minerals, oil, and gas below the surface |
| Minerals | Are owned as real property unless they are fugitive substances. Non-solid migratory minerals. Pg13 |
| Attachments | Items permanently attached to the land and belong to the owner. Examples improvements, fixtures, natural attachments |
| Improvements | Houses, garages, fences, swimming pools, anything resting on the land. |
| Fixtures | Anything attached to real property. |
| Five tests of a fixture | Method of attachment Adaptation Relationship of the parties Intention Agreement of thr parties |
| Relationship of parties | Landlord/tenant, lender- borrower, buyer/seller |
| Trade fixtures | Are items of personal property that are attached to real property to conduct business. Example: commercial ovens, room oartitions, doctor or dental equipment. |
| Natural Attachment | Anything attached by growing roots. |
| Fructus Naturales | Real Proprty that is naturally growing. Example: grass, trees, shrubs. These items will stay with the property when sold. |
| Fructus industriales | Business crops Annual crops produced by human labor to be harvested, once harvested it becomes personal Property |
| Emblements | Annual crops cultivated by tenant farmers or sharecroppers. They lease the land for agricultural use |
| Appurtenances | Anything with the land for its benefit.”belonging to” Example: easements and stock rights in mutual water company. |
| Easement | Interest owned by one person in the land of another person. Example: right if way passing across a parcel of land. |
| Estate | An estate is ownership interest or claim a person has in real property. |
| Freehold Estate | Indefinite duration or measured by the length of a persons life. |
| Nonfreehold estate | Estate with a fixed or determinable duration |
| Fee simple estate | Is a freehold estate, and the greatest ownership Interest in real property Also known as estste in fee |
| Estate of Inheritance | Owner may dispose of it in his/her lifetime or after death by will. |
| Fee simple absolute | If the property is transferred or sold with no conditions or limitations. |
| Fee simple subject | A property owner may impose cconditions, or restrictions when transferring title to property. |
| Life estate | Limited in duration of a measuring life. |
| Pur autre vie | Life estate crested on another persons life |
| Life tenant | The holder of a life estste - has all Rights that go with fee ownership, except disposing nod the estate by will. |
| Estate in Reversion | When owner grants life estate to someone with the provision that upon the death of the life estate holders death the property reverts back to original Owner. |
| Reserving a life estate | Owner sells the property to a “developer” or buyer, reserving the right to live on property until their death when the “developer” buyer will take possession of the property. |
| Estate in remainder | Is a future interest that takes effect upon the expiration of a life estste when the life tenant dies. |
| Tenancy for Years | Fixed term and definite end date. |
| Periodic Tenancy | Estate from period to period, refers to a leasehold interest that is for an indefinite period of time. |
| Tenancy at Will | Tenant obtains possession of the property with the owner's permission, but without a rental agreement. |
| Tenancy at Sufferance | often referred to as a holdover tenancy. |
| Separate Ownership | means by one person or one entity, such a corporation. |
| Ownership in severalty | Also known a separate ownership, sole and separate. |
| Concurrent Ownership | When property is owned by two or more persons or entities at the same time. |
| Tenancy | also refers to a mode or method of ownership or holding title to property. There are 4 types of concurrent ownership 1. Tenancy in common 2. Joint tenancy 3. Community property 4. Tenancy in partnership (business) |
| Tenancy in Common | When two or more persons, whose interests are not necessarily equal, are owners of undivided interests in a single estate. |
| Tenancy in Partnership | Ownership by two or more persons who form a partnership for business purposes. |
| Four Characteristics of Tenants in Common | 1. May take title at different times 2. May take title on separate deeds 3. May have unequal interests 4. Have undivided interest or equal right of possession. |
| The four unities of joint tenancy (TTIP) | Time, title, interest, and possession must exist in order to have joint tenancy. |
| Actual Notice | is a fact, such as seeing the grant deed or knowing that a person inherited a property by will. |
| Priority | means the order in which deeds are recorded. |
| Emblements | Growing crops that are cultivated annually. |
| Encumbrance | An interest in real property that is held by someone who is not the owner. |
| Encroachment | The unauthorized placement of permanent improvements that intrude on adjacent property owned by another. |
| Estate in sufferance | A tenancy created when one is in wrongful possession of real estate even though the original possession may been legal. |
| Estoppel | A legal doctrine known as an implied or ostensible agency. |
| Financial Encumbrance | affect the title of the property. Create a legal obligation to pay i.e. liens, such as trust deeds (also known as mortgages), mechanics liens, tax liens, special assessments, attachments, and recorded abstracts of judgement. |
| Non-financial encumbrance | affect the use of the property, such as easements, building restrictions, zoning requirements and encroachments. |
| Voluntary lien | A voluntary lien does not have to be recorded, a lien the owner agrees to pay. Include trust deeds (mortgages) |
| Involuntary lien | Owner does not pay taxes, or debt owed a lien may be placed against the property without permission, such as a mechanics lien, recorded abstracts of judgement, tax liens and attachments. |
| Specific lien | is one that is placed against certain property such as mechanics lien, trust deed, attachment, property tax lien, and lis pendens. |
| General Lien | affects all property of the owner (multiple properties) such as a judgement lien, or federal state income tax liens. |
| Escrow | Neutral third party that protects the integrity of the transaction. |
| Exclusive agency listing | Contract where the seller must pay the listing broker a commission if any broker sells the property. |
| Fee simple determinable | An estate which has been created to exist only until the occurrence or non-occurrence of a particular event, Returns automatically. |
| Fee simple | The greatest possible interest a person can have in real estate. |
| Fee simple absolute | The largest, most complete ownership recognized by law. An estate in fee with no restrictions on its use. Property transferred or sold with no conditions or limitations on its use. |
| Prescriptive easement | An easement obtained by the open, notorious, hostile and continuous use of property belonging to someone else for a statutory period of time. |
| Mechanics Lien | Placed against a property by anyone who supplies labor, services, or materials used for improvements on real property and did not receive payment. |
| Preliminary Notice | Written notice that must be given to the owner within 20 days of first furnishing labor and materials for a job. |
| Notice of completion | Owner records a notice of completion within 10 days after the project is finished. Original contractors have 60 days to file after notice if filed, all others have 30 days after notice is filed to record mechanics lien. |
| No notice of completion | If the owner does not record a notice of completion when work is finished, all claimants have a max of 90 days from day work finished to record s mechanics lien. |
| Foreclosure action | After a mechanic's lien has been recorded, the claimant has 90 days to bring foreclosure action to enforce the lien. If he/she does not bring action, the lien will be terminated and the claimant loses the right to foreclose. |
| Notice of non-responsibility | If the owner discovers unauthorized work on the property, he/she must file and have it recorded and posted on the property to be valid, stating the owner is not responsible. (i.e. tenant hires contractor) |
| Attachment lien | also writ of attachment. The process the court holds the real property of a defendant as security for a possible judgement pending the outcome of a lawsuit. An involuntary lien, valid for3 years, does not terminate on death, can be extended. |
| Easement in Gross | An easement that is not appurtenant to any one parcel; for example public utilities to install power lines. |
| Two easements | Appurtenant easements and easements in gross. |
| Ingress | The right to enter onto a property using an easement. |
| Egress | The right to exit from a property using an easement. |
| Servient tenement | The owner whose land is being used is the one giving the easement. |
| Dominant tenement | The persons land receiving the benefit of the easement (receiving the use) |
| Difference between easement and license | an easement may not be determined arbitrarily, and a license is permission to use property, it can be revoked. |
| Four notices of a Mechanics lien | 1. Preliminary Notice; given to the owner w/in 20 days. 2. Notice of Completion; Owner records within 10 days after the project is finished 3. no notice of completion; If owner does not record notice when work is finished 4.Foreclosure Action |
| How are easements created? | By express grant or reservation in a grant deed, or written agreement between owners of adjoining land. |
| Express Grant | Servient tenement, or the giver of the easement, grants the easement by deed or express agreement. |
| Express Reservation | Seller of a parcel who owns adjoining land reserves an easement or right-of-way over the former property. It is created at the time of the sale with the deed or express agreement. |
| Implied Grant or Reservation | Existence of an easement is obvious and necessary at the time a property is conveyed, even though no mention is made in the deed. |
| Necessity | Easement by necessity is created when a parcel is completely land locked and has no access. It is automatically terminated when another way to enter and leave the property when becomes available. |
| Prescription | The process of acquiring an interest, not ownership, in a certain property. An easement by prescription may be created by continuous and uninterrupted use, by a single party, for a period of 5 years. pg.28 |
| Easement by necessity | Created when a parcel is completely landlocked and has no access. It is automatically terminated when another way to enter and leave the property becomes available. |
| Hypothecation | Allows a borrower to remain in possession of the property while using it to secure the loan (like collateral) |
| Simple Interest | The interest charged on most real estate loans. Interest paid only on the principal owed. |
| Promissory Note | The primary legal financing obligation in which the borrower promises to pay back a sum of money borrowed. |
| Remainderman | The person who has a future interest in a life estate once the present estate terminates. |
| Procuring Cause | The actions by a broker which result in the owner being able to make a sale. |
| Novation | Occurs when the person in a contract, to whom the duty was owed, expressly agrees to substitute the delegate, or new obligor; for consideration, and agrees to discharge the old oligor from the obligations under the contract. |
Created by:
TeresaLatu
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