Real Estate Principles 101

Common address

Address posted on the property

Relationship of the parties, method of attachment & intent of the parties

all a test to determine whether an item is a fixture

Which system may be used for legal description purposes?

U.S. Goverment survey, metes and bounds & lot, block and tract

How many sections are in a township?

36

Methods of creating a real property

bolt it down, cement it down & nail it down

a section consists of how many acres?

640

the term bill of sale is commonly associated with

personal property

personal property that is permanently affixed to real property is called

a fixture

the united states goverment survey system has to do with

sections & townships

an area that is 36 miles square contains how many townships

36

real property

immovable

approximately how many acres are there in a lot 1/2 mile by 1/2 mile

160

a farm 6 miles square has how many townships

1

a deed transfers title to

real property

appurtenant means the ownership of the item

runs with the land

emmblements are usually

growing crops, cultivated annually & on leased land by tenant farmers

trade fixtures

removable, forms of business furniture & personal property

one acre equals

43,560 sq ft. or 4,840 sq. yds.

joint tenancy

type of ownership has definite rights of survivorship. Time, title, interest and possesion are the four essentials

escheat

the only way a woman cannot receive title to real property

deed

a written instrument that conveys and evidences title

what distinguishes a will from other types of property transfers

only effective at death

In california, a notice to vacate an "estate at will" rental agreement, requires how many days notice

30

community property

property acquired by a husband and wife during marriage and is split 50/50

accretion

a property owner living on a river bank acquires land due to shifting of the river.

in a real estate transaction the grantor is the

seller

through the process of escheat, the deceased's property passes to

the state

prescription

using another person's land continuously without paying any property taxes, might qualify to obtain an easement or legal right to use land.

holographic

type of will that requires no witnesses unless signed with an X

A deed does not take effect until it is

delivered

life estate

limited to the life of any designated person or persons

sphere of influence

list of potential clients that an agent contacts on a regular basis

errors and omissions insurance is meant to protect whom from liability

brokers and agents

a salesperson who receives all of the commission earned from a real estate transaction

has a 100% commission arrangement with their broker.

how many brokers can a salesperson work for at a time

one

a person whose physical conduct is not subject to the control of another, and who sells results rather than time is

an independent contractor

cold calling

soliciting potential clients by telephoning people you don't know

all commissions are negotiable between a seller and listing broker, and determined

when the listing agreement is signed.

an open house is a prospecting tool for finding

both buyers and sellers

sources of listings may include

acquaintances, "for sale by owner" ads and foreclosures

A-I-D-A

attention, interest, desire and action

Regulation Z

rules for regulating real estate advertising under the Truth in Lending Act

FSBO

For sale by owner

brokers should examine the call log book regularly to determine

the impact of any advertising campaign

the bulk of the typical residential brokers advertising budget is spent on

classified ads

exclusive right to sell listing

type of listing in which the owners would be obligated to pay a commission to the broker even if the owners sell the property themselves during the listed period

amount of commission payable to the real estate broker is based on

agreement of the parties

to earn a commission, a broker must produce a buyer who is

ready, willing and able

if an owner enters into an exclusive agency listing and thereafter sells the property through his or her won effors

no commission is payable

net listing

the type of listing that is most likely to give rise to charges of misrepresentation or fraud

curb appeal

how a house looks to a passerby when compared to the rest of the neighborhood

lock box

in order for agents to gain access to the house keys are often placed here

the real estate commissioner requires that all agreements prepared by salespeople

be approved by their designated broker or sales manage and be approved within a reasonable amount of time.

to earn commission guaranteed by a safety clause, the original listing broker must provide the seller with a list of prospects who were showing or made offers on the property within

3 calendar days of the expiration of the original listing

copies of the listing agreement must be given to the signing parties

at the time signatures are obtained

Transfer disclosure statement

the buyer must also receive a copy of this form

FRPTA

Sellers affidavit of nonforeign status and/or CA withhholding exemption

market value

the amount of cash or cah quivalent that is most likelty to be paid for a property on a given date in a fair and reasonable open market sale

CMA

competitive market analysis

most property owners move on an average of every

6-8 years

economic obsolescence

also known as social obsolescence and loss of value due to the conditions outside the property itself.

advantages of home ownershup

appreciation, tax benefits and equity buildup

when selling real estate, the most effective form of communication is

direct contact (face-to-face)

an incoming call register is a useful tool for

record keeping, controlling ad revenue and expenses and following up with inquiries

floortime

the time assigned to individual agents to answer the company telephone

character, capacity and capital are called the three C's of

credit

California residential purchase agreement and joint escrow instructions form

the most commonly used purchase contract in california

if there is a contradiction in the purchase agreement form

the handwritten or types in words supersed the printed words

liquidated damages

paid for not fulfilling a cluase or condition in the contract and agreed to in advance and stated in a contract

CE+3

the buyer will take possession 3 days after close of escrow

the seller must provide the buyer with a lead-based paint notice as an attachment to the purchase contract if the residential property was constructed

prior to 1978

disclosure regarding real estate agency relationship

must be given to buyers and sellers before entering in to any contract with a broker

Estimated buyers costs

form with total cost of the purchase, including monthly payments

if there are two counter offers, an agent/broker should

start from scratch and rewrite the contract

buyers affidavit

involves the foreign investment in real property tax act (FIRPTA), property for use as residence and property with a sales price that does not exceed 300,000.

Verification of property inspection waiver

During the final walk through

mortgagee and mortgagor

mortgages only

beneficiary

in a trust deed, the party who is lending the money

loan origination fee

compensation for processing the loan and setting it up on the books, which is based on the loan amount

APR

annual percentage rate

prepayment penalty

charge to the borrower for paying off all or part of a loan balance before the due date

subprime borrower

lenders reference to a borrower with a low FICO score and alimited ability to cover family living expenses

PMI

Private mortgage insurance

an escrow holder can be

a corporation, an attorney or a real estate broker acting as the agent in a transaction

Valid escrow

signed escrow instructions, neutral third party as an escrow comapany and conditional deliver of funds and documents

economic life

The period in which a structure is worth more than tearing it down is called

leverage

Buying a property with a minimum down payment

inflationary

An increase in the marginal propensity to consume

economic return for the use of land and improvements

highest and best use

The Federal Reserve would sell government securities

take money out of circulation.

expansionary policy

budget surplus is returned to taxpayers in the form of tax reductions

conforming loan

A loan that meets Freddie Mac purchase guidelines

majority of escrows in northern cali are handled by

escrow departments of title insurance companies

death does not cancel escrow because

it is binding on the heirs and of the prior agreed-to correct

two rules of proration

date the item is paid and date escrow closes

perliminary title report

a report showing the condition of title before a sale or loan transaction

lenders extended coveragfe policy

ALTA

ad valorem tax is a tax charged

in proportion to the value of the property

county tax collector

county officer who collects real property taxes

Proposition 13

rollback or california tax to 1% of the selling price, plus 2% cumulative interest every year

no darn fooling around

important property tax dates