California Real Estate Exam Vocab 2024 Flashcards

California Real Estate Exam Vocab 2024 Flashcards emblemsannual crops produced by cultivation legally belonging to the tenant with the implied rate for its harvest.chattel mortgagea mortgage on personal property given as security for the payment of an obligation final acceptanceIs the owners acceptance of the project from the contractor after the entire work is completed, tested, and inspected in accordance with the contract requirements.estate from period to periodA leasehold, which is automatically renewed for the same term as in the original lease; also referred to as a periodic tenancy or an estate from period to period. Month to month rental. Notice needed to terminate.refinanceTo revise a loan agreement to make the terms of payment more suitable to a borrower's present income and ability torepay.1031 exchangeWay to defer capital gains tax; property owner must re-invest profits from the sale of an investment property into another investment property within 6 months chain of titleA history of the ownership affecting title to a parcel of land.nominal rateinterest rates or rates of return that have not been adjusted for inflation subordination clausestates that the current claim on any debts will take priority over any other claims formed in other agreements made in the future.permits a mortgage recorded more recently to take priority over a loan recorded earlier, when both loans place liens on the same property.domination. this loan takes priority over any loan no matter the price or date compound interestinterest earned on both the principal amount and any interest already earned net leaseA lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.title insurancea type of insurance that protects the buyer if problems with the title are found laterprotects real estate owners and lenders from financial loss and legal expenses caused by defects in a title quitclaim deedtransfer's a person's interest in real property, often between family members.commonly used for transferring real estate without a traditional sale; doesn't prove ownership.often used to transfer interest in an inherited property into an individual's trust.

life estateAn interest in land that exists only for the duration of the life of some person, usually the holder of the estate.estate at willA lease that can be terminated by either party without notice bona fide offerAn offer made in good faith, authentic, and without intent to defraud.sale-leaseback-buy-backA sale and leaseback transaction in which the leaseholder has the option to buy back the original property after a specified period of time.kickbackthe return of a portion of the money received in a sale or contract, often secretly or illegally, in exchange for favors eminent domainPower of a government to take private property for public use.abuttingneighboring land with a common boundary (common boarder) trust deedAn instrument held by a third party as security for the payment of a note. Unlike a mortgage, a trust deed has a power of sale, allowing the trustee to foreclose non-judiciary.chattel realAn estate related to real estate, such as a lease on real property.security agreementa legal document that gives a lender a security interest in a property or asset that is used as collateral for a loan What is the relationship of indivisible service and complete loyalty?trustee- beneficiary income approachThe method that adds all the income generated by the production of final goods and services to measure the gross domestic product.tenantA person who pays for the right to live in a residence owned by someone else defeasible feeSometimes called a base fee or qualified fee; a fee simple absolute interest in land that is capable of being defeated or terminated upon the happening of a specified event.mello-roos taxcreated to circumvent legislation that put restrictions on

increasing property taxes.ex: contributes to the general

cost of a residential district: infrastructure improvements,

police and fire services, schools, parks, and childcare facilities.capitilizationthe rate of return that is expected to be generated on a real estate investment property accretionAccession by natural forces, e.g., alluvium.percentage leaseA lease, commonly used for commercial property, whose rental is based on the tenant's gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount.

right of rescissionUnder the provisions of the Truth-in-Lending Act, the borrower's right, on certain kinds of loans, to cancel the loan within three days of signing a mortgage.reversionthe right to regain ownership or possession of a property after a specified amount of time or events have occurred.

Ex: leasehold estate which the lessee has the right to use

and occupy the property for a specified amount of time.lienThe right to take hold or sell the property of a debtor as security or payment for a debt, mortgage.a legal claim against a property that can be used as collateral to repay a debt remainderA future interest in real estate that allows someone to own and use a property after the current owner dies or a certain number of years pass chattel realAn item of personal property which is connected to real estate, for example a lease.leasehold estatea legal term for a property lease or rental freehold estateAn estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.earnest money deposita sum of money that a buyer pays to a seller to show that they are serious about purchasing a property.paid after the buyer's offer has been accepted by the seller, and the buyer has signed the real estate purchase agreement.acceleration clausea contract provision that allows a lender to require a borrower to repay all of an outstanding loan if payments are not being made or there is a breach of contract.general contractorTerm used to describe someone whose main responsibility is the construction, improvement, or renovation of a property or project.grantorThe person transferring title to or an interest in real property to a grantee mortgage yieldInterest returns a lender gets from a mortgage.simple interestinterest paid on the principal alone.cost of borrowing

money without the compounding interestex: car loans,

amortized monthly, retailer installment loans neutral escrow depositoryan escrow business run by someone who is licensed under the financial code grant deedTransfer of real property from one person or entity to another person or entity. Each party transferring an interest in the property is required to sign it.delinquent mortgagewhen homeowners are at least 30 days overdue on making at least one mortgage payment.AbandonmentThe failure to occupy and use property, which may result in a loss of rights.

estate for lifeA freehold estate that lasts only as long as a specified person lives. That person is referred to as the measuring life.types of liens that can directly affect personal propertymortgage, judgment, attachment, estate tax, federal tax, bail bond, municipal utility, and vender's.unadjusted cost basisOriginal price of a property. Used to calculate capital gains.It is usually just the purchase price.life estateA freehold estate in land that is limited in duration to the life of the owner or to the life or lives of some other designated person or persons.gross operating incomeThe total income generated by the operations of a property before payment of operating expenses. It is calculated from potential rental income, plus other income affected by vacancy, less vacancy and credit losses, plus other income not affected by vacancy.estate at sufferanceTenant remains on the property, without the landlord's permission, after the lease has expired chattelspersonal property estate for yearsA conveyance of realty for a definite stated period of time.The term may be one year, one month, one week or even one day. No notice needed to terminate.amortized loana loan that is repaid in equal payments over its life covenantan agreement between two or more parties about how a

piece of property can be usedex: two most common

types:affirmative- require the borrower to take specific

actions or meet set requirementsnegative- restrict the actions of the borrower economic rentthe additional income earned from a resource, such as land

or propertyex: two properties have the same features

except for location, if one location is more desirable, the owner will receive higher payment without doing any additional work.reinstatementthe act of restoring a delinquent mortgage to a current status assumptionseller assigns all the rights, obligations, and responsibilties of the loan to the buyer. seller relieved of all responsibilities for the repayment of the loan. allows third party to take over the loan of the property's seller alienation clauseA provision in a mortgage requiring full payment of the debt upon the transfer of title to the property, due on sale.Prevents loan assumptions.requires a borrower to pay off the remaining balance of their mortgage loan before a new buyer can take ownership of the property."OUCH"Open and notoriousUninterrupted use for 5 yearsClaim of rightHostile to the owners intent4 required elements to gain