Legal Aspects

English common law

Legal disputes were on a case-to-case basis before a judge.

Spanish civil law

Legal disputes were settled by pre-established statutes.

Legislative, executive, judicial

The federal and state governments are divided.

Police power

The power of the state or local government to protect the public well-being.

Eminent domain

Right of the government to take private property for public use.

The power to tax

The power of the state or the local government to generate revenue and fund state and local government functions under their police power.

Equal protection laws

Covenants, conditions and restrictions (CC&R) which limit subdivision sales to non minorities violate.

Trial courts, appellate courts, and Supreme Court

California has a three-tiered court system.

Venue

Determines the proper physical location of the court which will hear a case.

Choice-of-law clause

Determined in advance which state's law applies in a dispute.

The right to occupy the property, sell the property, lease the property

The right to possess and use property will include.

Immovable

Real estate is characterized.

Soil, rocks, and reasonable airspace above the earth

The first component of real estate is land.

Fixture

Personal property that has become permanently attached to real estate.

Fee estates, life estates, and leasehold estates

The ownership interest in real estate.

Fee estate

The right to possess and control their property indefinitely.

Life estate

An interest in parcel in real estate lasting a lifetime of a named individual, called a controlling life.

Possess

A fee owner's real estate, leasehold estate conveys to a tenant the right

Periodic tenancy

A landlord and tenant agree to successive rental periods of the same length, such as in a month-to-month.

License

Grants its holder a nonexclusive personal privilege to use property.

Tenant improvements

Improvements made to lease property to meet the needs of the occupying property.

Mandatory improvement

An improvement which the tenant is required to make an exchange for a reduction in rent.

Permissive improvement

An improvements which is authorized but not required by the landlord.

Reversion

On expiration of a lease, the passage of real estate fixtures from the tenant to landlord is a conveyance.

Trade fixtures

Improvements unique to the tenant's business which may be removed by the tenant upon expiration of a lease or rental agreement.

Lease agreement

Sets terms of a fixed-term tenancy.

Periodic tenancy

A rental agreement sets the terms.

Holdover tenant

On expiration of a lease, a tenant who remains in possession of a property without an agreement or acceptance of rent by the landlord for the extended occupancy.

Notice or expiration of lease

A tenancy relationship may be changed.

Transient occupant

An occupant of a vacation property, motel or, hotel for less than 30 days.

Lease

An instrument conveying a possessory interest in real estate which allows the tenant to exclusively occupy the premises in exchange for rent.

Irrevocable

When an individual makes substantial expenditures to improve their use of another person's property in reliance on the oral consent of the property owner.

Riparian rights

Landowner's incidental property right to withdraw water from an adjacent river for beneficial use on their riparian land.

Appurtenant

Incidental right attached to the ownership of real estate and the right to use riparian water.

5 years

Similar to appropriation rights, perspective rights may be lost by abandonment after...

5 years

Binding on subsequent owners even if the recorded legal description is different, an agreed boundary which remains in place for more than...

Express agreements

Written or oral agreements on a boundary's location.

Agreed-boundary doctrine

Establish an agreed-to boundary when the true boundary line is uncertain.

30-day

An owner who plans to construct, replace or, maintain a boundary fence needs to provide written notice to the affected adjoining property owners.

Line trees or common boundary trees

Shrubbery or trees whose trunks stand partly on the land of the two adjacent property owners.

Encroachment

An improvement on real estate which extends onto property belonging to another person without that person's consent.

An injunction ordering the removal of the encroachment

Once an encroachment has been determined, the the remedies available for the owner.

Equitable easement

To maintain the improvement on the owner's property, when the continuance of an encroachment on an owner's property is permitted, the encroachment of the neighbor is granted.

3 years

Statute of limitations running from the commencement of the encroachment, an owner seeking to terminate an encroachment or recover their money losses is generally subject to...

Trespass

A wrongful and unauthorized entry onto another's real estate.

Examples of trespass resulting from indirect entry include

Depositing dirt or debris on another's property, diverting a river or surface waters across another's property, leaving toxic waste on another's property.

Misdemeanor

A trespasser who does not leave when requested to commits...

Nuisance

Injurious to health, is offensive to the senses, and obstructs the use of property.

Public nuisance

A nuisance which affects an entire segment of population.

Continuing nuisance

A nuisance which may be reduced or terminated at anytime at a reasonable expense.

Easement

The right of one property owner to use the property of another.

Dominant tenement

The property which benefits from an easement.

Easement in gross

Belongs to an individual and is their personal right.

Solar

Easement restricts an owner's ability to maintain or construct any improvements which interfere with a neighbor's solar energy system.

Conservation easement

A voluntary conveyance of the right to keep land in its natural or historic condition.

Easement by reservation

Has been created when owner conveys a parcel of property but reserves the right to continue using a portion of the conveyed property.

Implied easement

An easement created by conduct without any prior agreement between the owner and the easement user.

Known or obvious to both the prior owner and the buyer, regularly used during the prior owner's ownership, and intent to be permanent

To establish an implied easement, the use by the prior owner needs to be...

Easement by necessity

If a property is landlocked, the owner of the property may be able to acquire an...

Perspective easement

Established by the adverse use of another's property for a period over 5 years.

Its historic use and its established purpose

Limitations on an easements used are set by...

Release

Accomplished by the use of a quitclaim or grant deed in favor of the owner of the burdened property, signed by the easement user.

Merger

Occurs when the same person aquifers fee fee titles to both the benefitting and burdened properties.

Forfeiture

If the easement holder places an excessive burden on the property encumbered by the easement.

Prescription

When the burdened property owner permanently interferes with the neighbor's use of the easement.

Covenants, conditions and restrictions (CC&Rc)

Restricted covenants on how parcels of property may be used are contained in a document.

Affirmative covenant

A recorded restriction limiting the use of a property to a specific purpose.

Unreasonably restricts the marketability of a property, prohibits ownership a certain race, or is not uniformly observed, and enforced against all prior violators.

A restriction which is enforceable.

Shared in portion to each property owner's use to the easement

When a written maintenance agreement does not exist between the owners of a burden or benefiting property, maintenance cost are...

Be in writing and identify the grantor and the grantee, contain a granting clause and describe the real estate involved, and be signed by the grantor and accepted by the grantee

A valid deed must?

Specific performance and estoppel

An executed oral agreement for the transfer of real estate ownership will be enforced under the doctrine of...

Possess their civil rights, be sound of mind, and be an adult of at least 18 years of age

At the time of signing the deed, a caple grantor must...

Still a valid conveyance of the real estate

A deed with a misnamed grantee is?

An individual, California limited liability company, or California corporation

May acquire title to California real estate.

Grant deed

Used to pass an ownership interest in real estate from the grantor to another individual, with implied covenants against prior conveyances and undisclosed encumbrances.

Quitclaim deed

Intended to convey whatever interest the grantor may hold in real estate, without warranty that any interest exist.

Buyer only

Implied covenants are for the personal benefit of the...

Must intend to convey title; accept the deed as immediately effective

For a delivery of a grant deed to occur the grantor_, and the grantee must...

Void deed

enforceable at all times and never conveys an interest in real estate.

Abstract of title

A written statement which presents an accurate, factual representation of title to the property being acquired, encumbered, or lease.

Hold harmless, reimbursed, or indemnifies

Title insurance is the means by which a title insurance company_ a person who acquires an interest in real estate against a monetary loss caused by an encumbrance on title.

Encumbrances not listed as excluded or excepted from coverage, and unknown to the insured individual

A title insurance policy will cover monetary losses stemming from?

Schedule A

Title insurance policy identifies the insured, the property, the vesting, dollar amount of coverage, the premium paid, and the recording.

Endorsements

Provisions added to title insurance policies to cover losses due to conditions, covenants and restrictions violations, mechanic's liens and the effects on inflation.

California Land Title Association

Owner's title insurance policy insures only against recorded encumbrances and contains a list of pre-printed policy exceptions.

American Land Title Association

Title insurance policy against recorded encumbrances and off-recorded matters.

Actual, notorious, and open possession

The criteria for perfecting ownership by adverse possession include...

Color of title

An adverse possession claim of ownership based on a written instrument and is held by the individual in possession of the property.

5 years

An adverse possessor must have occupy a property for at least_ before they will be able to acquire title through adverse possession.

Written and recorded

A transmutation must be_ to be effective against persons relying on the record title.

A revocable trust in which in spouse is the named trustee, a power of attorney, and a limited partnership

May be used to authorize one spouse to manage and control community property.

Distributing the owner's estate without resorting to probate proceedings

A revocable inter vivos (living) trust benefits real estate owners by...

Declaration of trust

Required to establish a viable inter vivos (living) trust.

Trust business

A business that acts as an executor, administrator, guardian, or conservator of estates, or as assignee, receiver, depositary, or trustee by the appointment of the court or for any purpose permitted by law.

Corporate

Adverse tax consequences make_ ownership and vesting of rental real estate infrequent.

Equitable ownership of the property

The conveyance of an co-owner's TIC interest to another person conveys...

The interaction and coordination conduct

Of co-owners while managing the investment determines whether a state law partnership relationship exists.

Sale, further encumbrance, and lease for exceeding one year

The alienation of property refers to its?

Tax partnership

When a co-owner of investment real estate of classified by the IRS as a partner, the real estate is considered to be owned by a?

The right of survivorship

The right of surviving joint tenants or a spouse to succeed to the entire interest of the deceased co-owner.

40 days

A surviving spouse with an uncontested claim to sole ownership needs to wait_ before they may clear title in their name and sell, lease or encumber the property.

Interest, title, time and possession

The creation of a joint tenancy traditionally requires the conveyance of the four unities of?

Community property

All property acquired by a couple or by either spouse during marriage is automatically considered_ unless otherwise specified.

sale, lease for more than one year, or encumbrance

Both spouses need to consent to the_ of community property.

1 year

If a spouse sells, leases or encumbers real estate without the consent of the other spouse, the nonconsenting spouse has_ from the recording to set aside the transaction.

The amount of payments made on the purchase price

A purchaser's lien may include...

An equitable ownership interest

The moment a buyer enters into a purchase agreement with a seller to acquire property, the buyer has_ in the seller's property.

Relation back theory

The priority of a purchaser's lien on title is set as of the date the buyer is given possession under the purchase agreement.

If their breach is excused due to wrongful actions by the seller

A buyer who defaults on a purchase agreement may only obtain a purchaser's lien.

20-day preliminary notice

A subcontractor needs to serve a_ on the appropriate parties to perfect their right to file a mechanic's lien.

90 days

A mechanic's lien becomes void if a foreclosure action is not filed within_ after the mechanic's lien is recorded.

notice of nonresponsibility

An owner may prevent a mechanic's lien from attaching to their fee interest in the property by recording and posting a_ within ten days after they become aware of tenant-contracted improvements.

Only enforceable if it is a waiver and release signed by the contractor in exchange for partial or full payment of the amounts due

The waiver of a subcontractor's mechanic's lien rights is?

Recorded instrument

A signed and notarized release of_ is used to document a judgment lienholder's release of a lien against a residence.

Pending litigation

Lis pendens means?

Affect title or the right to possession of real estate

Recording a lis pendens is permitted in lawsuits which...

A constructive trust

An involuntary, court-created trust imposed on the ownership of property held by an owner who acquired it through a wrongful act.

Identify the parties to the lawsuit and give an adequate description of the real estate

To record a lis pendens, the lis pendens needs to...

Expunging

An order_ a lis pendens removes any restrictions sought to be imposed on title to a property.

Personal property

Membership in a limited liability company (LLC)

Foreclosing on the member's ownership interest in the LLC

A money judgment against a member of a limited liability company (LLC) which does not also name the LLC as a judgment debtor can be satisfied by?

Charging order

A creditor uses a_ to place lien on a limited liability company (LLC) member's ownership interest in the LLC to satisfy a judgment.

declared homestead

Is recorded

Trust deeds, mechanic's liens, and Internal Revenue Service (IRS) tax liens

Liens with priority over the homestead exemptions include...

Declared homestead

Coupled with a quiet title action, allows a homeowner to remove judgment liens attached to their title.

Until the homeowner abandons their home or records a new declaration of homestead on another residence

A recorded declaration of homestead lasts...

Be published, be untrue and disparaging to the owner's property interest, and be made without privilege

To constitute slander of title, the oral or written statement must cause money losses and?

Privileged publication

A statement made about a real estate interest as part of a_ does not subject the person making the statements to liability for slander of title.

Punitive damages

An owner can recover _ if they can show slanderous statements were made about their property with actual malice.

Partition action

A lawsuit to sever or sell real estate which is co-owned.

Fee estate, leasehold estate, and life estate

A real estate interest which is subject to a partition suit.

Owelty

When real estate cannot be divided equally in a partition action, _ is the money paid to even the distribution.

20 days

A notice of sale must be given to all parties named in a partition action at least _ before the sale date.

A quiet title action

A judicial procedure employed to determine claims to nonpossessory rights in disputes over title to real estate.

Restitution

An accounting between a buyer and seller which results in a refund to the buyer in exchange for the return of the property to the seller.

Declaratory action relief

An action seeking a judicial declaration of the rights and obligations of parties to a disputed transaction.

Reservation of rights

Agreement allows opposing parties in a declaratory relief action to preserve their respective claims so they may later pursue them.

Anticipatory breach

Occurs when a buyer or seller somehow acts to repudiate the purchase agreement before the time for closing arrives.

An actual controversy exists and future litigation is likely to result if the dispute is not resolved

A declaratory judgment will only be granted if?

Five or more

An investor who rent skims from _ parcels they took title to during any two-year period may be held liable for multiple acts of rent skimming.

Security deposit, moving expenses, and attorney fees

A tenant's recovery from an investor who engages in rent skimming includes?

One-year imprisonment

An investor is subject to _ for one charge of multiple rent skimming.

Use the money to pay medical expenses within 30 days of collecting the rent, and no other funds were available to pay the expenses

A rent-skimming investor avoids both criminal and civil rent skimming when they?

Attorney fees provision

A provision in an agreement permitting the prevailing party in a dispute to receive attorney fees when litigations arises due to the agreement.

Contracts

The reciprocal fee statute applies to actions regarding?

Receives the greater money damages award, receives the requested equitable relief, or successfully defends against the plaintiff's claim and the plaintiff obtains no relief.

When the court enters its final judgment in a case, the prevailing party is the individual who?

Any excess financial benefit received by the prevailing party from the non-prevailing party

The amount of attorney fees the non-prevailing party owes to the prevailing party is offset by?

$1,ooo

Fee agreements for attorney services must be in writing when it is known the fees will exceed?

10 days

An attorney must provide an itemized billing within _ following a broker's request for the billing statement.