Real Estate Exam

1848 US regognized existing land grants of the Mexican people already there

Early system of recording land titles no longer in use

Original conveyances of land from US to citizens

Land that goes with the land including buildings, landscaping, fencing, etc

AKA Chattel

an interest in real property (Ex lease, trust, deed, mortgage)

Things that go with the land

Cultivated crops which can be removed as personal property

• 1. Intent
• 2. Method of attachment
• 3. Adaptability
• 4. Agreement
• 5. Relationship between parties

Fixtures that are industry specific

• Right to:
• 1. Use
• 2. Exclude
• 3. Encumber
• 4. Sell
• 5. Lease

Reasonable use of water flowing through, next to, or under property

Reasonable use of water from an adjacent body of water

Reasonable use of underground percolating water

First user of riparian rights has priority

Build up of land by water

Sudden tearing away of land by water

Land formed by the built up by water

Gradual loss of soil by wind or water

Land formed from receeded water - Waterfront owner keeps the land

Areas covered by water during certian seasons

Water that has no defined course

Water overflowing a limited channel

Covering an area with water

Flat land connecting waters that tends to flood

Storm runnoff not in a water path

Indentations in flat lands where water collects

Statewide water quality control program

Stock held in a water company that is appurtenant to the land

Usually for agricultural areas - a public corporation for municipal use

Chapter 2

Identifies lot by subdivider's description

Identifies lot through clockwise geographical description

easterly/westerly measurement from north/south

Identifies lot from principal surveing lines

East/west government survey lines

North/south government survey lines

horizantal townships in governemental survying

Vertical rows of townships in governmental surveying

Six by six square miles totaling 36 total miles

lines that adjust for the curvature of the earth every 24 miles in governmental surveying.

640

5280

43,560

Aquiring title through use or squatting

• 1. Open occupancy
• 2. Hostile to owner interest
• 3. Claim of right
• 4. Continuous use for 5 years
• 5. Paid real property taxes for 5 years

Joining of property to property

legal proceedure for reallocating real estate of a deceased person

without a will

person to administer estate with a will

person to administer estate without a will

Person who makes the will

amendment to a will

Handwritten will not requiring witnesses

Testors creation of a formal written document

Oral will not vaild in CA

Gift of personal property by will

Gift of real property by will

CA resident leaves property in CA

Out of state resident leaves property in CA

with a will

Law that upon death property goes to heirs

Passes on immediately to surviving spouse

• 1. Spouse/Child = 50/50
• 2. Spouse/Children = 33/66
• 3. Spouse/Parent = 50/50

death with no will and no heirs property goes to the state after 5 years

The taking of property for public use

The taking of land for public health and safety

Gifting of real property to the government for public purpose without strings

Convey interest in real estate

deed transfer of an interest in real property

• 1. Delivery
• 2. Acceptance
• 3. Granting language
• 4. Written
• 5. Description
• 6. Competent grantee
• 7. Actual grantee
• 8. Grantor signature

Clause describing the extent of what was granted

Promise to give a deed

Notorized signature

Financing takes priority over liens

Most common in CA showing grantor has not previously conveyed property and estate is free of encumbrances

Better title acquired after deed, then it is included in title

Grantor gives title without making claims to such title

Not used in CA but grantor garantees title free and clear

Court order for sheriff to sell to satisfy a judgement

Given in exchange for love and affection

Grantor with no recorded interest

and wife

and others

Highest form of ownership with no time limits and can be transfered

Estate of inheritance

Estate for the life of a person

Person with who a life estate reverts back to upon death

Next in line for a life estate

Interest is not perfected until something happens

Life estate granted to one person for the life span of another

Estate can revert back to previous owner if stipulations occur

Fee simple or life estate

Leasee's interest in a property

Seperate ownership by one person

Undivided interest with right of survivorship like the Hodges house

• 1. Time
• 2. One document
• 3. Equal interest
• 4. Equal right of possession

Default undivided interest without the right of survivorship

Claim, liability, or restriction on the use of a property

Encumbrance that benefits the property

Nonpossesory real property interest

Land is using the land of another via easement

Land is being used by or served to another via easement

easements are appurtenant to the property

Right to use someone's land

Prevent the owner from doing something to the land they otherwise would be able to do

Easement holder can take profits (ie crops, minerals, oil)

Purchaser my keep land in natural or agricultural state

• 1. grant
• 2. implication
• 3. necessity
• 4. dedication
• 5. prescription
• 6. eminent domain
• 7. estoppel

Condemnation

Actions by user indicating belief of such easement by the owner

Implied easement from law (ie landlocked, oil well)

When there are no other means of access and at one time the land was one piece.

Easement by use

• 1. Open
• 2. Continuous for 5 years
• 3. Hostile
• 4. Claim of right

For easement by prescription, prior use of a previous owner's years added to the 5 year requirement

Easement by prescription's offical record of title

Personal right not appurtenent to the land; therefore there is no dominant tenant

• Forever except:
• 1.. Merger
• 2. Nonuse - prescription only
• 3. Destruction of servient tenement
• 4. Particular purpose ends
• 5. Agreement
• 7. prescriptive/adverse use by the dominant tenement

Permissive use

• Covenants, Conditions, and Restrictions
• Private deed restrictions not required by law.

CC&Rs

Zoning

Most restrictive prevails

Promises in deeds that stay with the land

Subdividers recording of restrictions prior to first sale

Qualification placed by grantor which upon breach will revert back to grantor - Courts trat as if covenant

Trespass by building improvements which must be removed within 3 years before permanency

Removes encroachment and pays for damages

Action to remove a trespasser or encroacher

Action to cease a nuisance

Court order of an action

money charge, debt, or encumbrance against a property

Placed against the property by the owner (i.e. mortgage)

Lien specific to a property

Lien attached to all properties of an owner

Taxes and special assessments take priority

liens specific to the property such as mechanic's liens

• Completed Work:
• 1. Delivery of services/goods
• 2. <20 days preliminary notice
• 3. 10 days Notice of completion filed
• 4. Notify General, sub and preliminary notice filer
• 5. 30 days subcontractors file lien
• 6. 60 days general contractors file lien
• 7. 90 days contractors w/o notice of completion file

• Incomplete Work:
• 1. 60 days file notice of cessation
• 2. 30 days subcontractors file
• 3. 60 days general contractors file
• 4. 90 days Gen, sub, and no notice file

Post 10 days after informed, if work is done without owner's knowledge

Statement by lienholder as to the correctness of charges and circumstances regarding the lien

Foreclosure proceedings within 90 days

Subcontractor gives to lender to release funds

Release of disputed mechanic's lien by posting 1 1/2x bond

Notice of pending lawsuit to possible purchaser

Siezing property before a judgement on a lien over 3 years old for business conduct, trade, or profession

General lien for debtors who's properties are in multiple counties

Document required to execute judgement for a sherriff's sale

• Protects the home from forclosure due to unsecured debt settlement
• 1. $75,000 family unit
• 2. $150,000 Diabled, Senior Citizen
• 3. $50,000 evreyone else

• 1. Head of household statement
• 2. Spouse name
• 3. Residing statement
• 4. Description

• 1. Existing lien holders (mortgage, etc.)
• 2. Homestead
• 3. Judgements
• 4. Owner

• 1. Judegments filed prior to declaration
• 2. Mechanic's liens
• 3. Mortgages & Trust Deeds
• 4. HOA Assessments

• 1. Filing declaration of abandonment
• 2. Sale of homesteaded property

Contractual agreement where the agent represents the principal

Buyer or seller in a RE transaction

• 1) Expressly
• 2) Implication
• 3) Ratification
• 4) Estoppel
• 5) Emergency

Via written or verbal statement

Implied through actions of the parties

Pricipal approves a previously unauthroized act

Agent through estoppel

Agent through contract

• 1) Accounting
• 2) Disclosure
• 3) Due Care
• 4) Loyalty
• 5) Obedience

Wrongful injury (physical or financial)

Person opperating under the power of attorney

Allows attorney-in-fact to do anything the pricipal could do

Allows attorney-in-fact to do only specific acts

If law requires act in writing then agency relationship must be in writing

Written discloser of any defects given to buyer

Obvious

Not discoverable via reasonable inspection

Agent with authority limited to a specific purpose

Agent authorized to conduct all duties of business

Agent representing both buyer and seller

• 1) Seller's agent
• 2) Dual agent
• 3) Buyer's agent

Facilitators who act as the middleperson to arrange sales

Dual agency of two different persons in the same office

Same agency duties to the seller as the listing agent

Agents working together such as one does buyers and one does sellers

• 2) Elect relationship type
• 3) Confirm in writing

• 1) Expiration
• 2) Imposibility of Performance
• 3) Death
• 4) Agreement
• 5) Cancellation
• 6) Incapacity

Exception to the cancellation of agency

• 1) Deposited into a trust acct w/in 3 days
• 2) Given to principal
• 3) Deposited directly to escrow

• 1) Buyer's written instructions before acceptance
• 2) Seller's written instructions after acceptance

• 1) Open for inspection
• 2) Journals for beneficiary and transaction
• 3) Balanced daily
• 4) Seperate records for each beneficiary and transaction
• 5) Reconciled monthly with bank statement
• 6) Deposits w/in 3 days

Courts interjection on a decision

Mixing personal funds with RE deposits

Part of the Business, Transportation, and Housing Agency

Part of the Business and Professions Code

For those who get an unrecoverable judgement against a licensee due to fraud $20,00 per offense; $100.00 max per licensee

2) $10,000 and/or 6mo jail recieve

• 1) Price Fixing
• 2) Market Allocation
• 3) Group Boycotts
• 4) Tie-in agreements

Agreement to set commission rates

Agreement to divide market amongst firms to limit competition

Agreement to refuse to work with another broker

Agreement to purchase something in exchange for RE agent services

An enforcable promise

• 1) Competent Parties
• 2) Mutual Agreement
• 3) Consideration
• 4) Legal Purpose

Something of value recieved in exchange for something else of value

only one party has the right to void the contract

• 1) Duress
• 2) Menace
• 3) Undue influence
• 4) Fraud
• 5) Misrepresentation

Force

Threat of force

Influence based on relationship between the patients (ex Doctor-lawyer, etc)

• 1) Lie
• 2) False statement without fact
• 3) Withholding truth
• 4) Empty promise
• 5) Other deceitful act

False statement to induce a contract

Voids the contract not making it a voidable contract

Statement of opinion; not a basis to void contract

Promise for a promise

Promise for an act

Fully performed contract

Yet to be preformed contrtact

Terms written or stated and specifically agreed to

Contract resulting from conduct of parties

Not a contract until accepted

Substituting a new contract for an old one

Agreement to accept different consideration than previously agreed upon

Tend against the person drafting, newer contract, handwritten

Subcontracting

• In writing if:
• 1) length >1yr
• 2) exectution time >1yr
• 3) Pay other's debt
• 4) Sale of personal propery >$500

Oral evidence no good if complete contract; only to clarify

Prevented from using statute of frauds if other party made improvements based on promise to sell

Delay for action causes another to act to their own detriment

• 1) Written action <4yrs
• 2) Verbal <2yrs
• 3) Judgements <10yrs

• 1) Compensatory Damages
• 2) Specific Performance
• 3) Punitive or Exemplary Damages
• 4) Nominal Damages
• 5) Liquidated Damages
• 6) Reformation
• 7) Waiver
• 8) Resission
• 9) Declaratory Relief Action
• 10) Injunction

Cash loss

Specifys action

Damages awarded above cash value because damages were on purpose

Stated or menial amount

Damages agreed to prior to breech

Court rewrite of contract

Release of noncompliance if sole beneficiary (leave where they are)

Relase of all parties (leave where they were)

Court determined rights before breach

• 1) Residential Listing Agreement (Exclusive Right to Sell)
• 2) Exclusive Acency liting
• 3) open listing
• 4) Net listing
• 5) Buyer Listing

Exclusive Right to Sell Listing

Broker is entitled to comission no matter who sales

3 days after listing expires sale entered, then commission is paid to broker

Broker gets comission unless owner sells

Unilateral Contract awarded to broker who 1st furnishes a buyer ready, willing, and able

Broker gets all over a specified amount

Contract to purchase

States who was responsible for the sale

Kept for 3 years after closing or from listing if unsold

Contract to make a contract

Owner who gives the option

Person who gets the option

Deposit Receipt

Seller changes the terms of an offer

Fair to buyer only if patent or disclosed

Purchaser of owner's interest

• 1) Special Flood Hazard Are
• 2) Areas of Potential Flooding
• 3) Very High Fire Severity Zone
• 4) State Fire Responsibility Area
• 5) Wildland Area
• 6) Alquist-Priolo Special Studies Zone Act
• 7) Seismic Hazard Zone

Areas prone to landslides and liquification

Units built before 1960

States all known defects of a property