Real Estate Exam III

Interest in real property as an owner

Interest in real property as a tenant

• 1) Estate for years
• 2) estate from period to period
• 3) estate at will
• 4) estate at sufference

Tenancy for a specified time span

tenancy for a fixed term

repeated time frame w/o termination date

periodic tenancy

Tenancy can be terminated at any time without notice

Leasee retains possession after expiration of lease

• 1) written
• 2) Name leasor and leasee
• 3) description of property
• 4) Amount of money & manner
• 5) Time duration
• 6) Signed by leasor
• 7) competent persons
• 8) Renewal and extensions in bold

• 1) < 2 mo unfurnished
• 2) < 3 mo furnished
• 3) returned <= 21 days
• 4) never non-refundable

Transfers entire leasehold interest including responsibility to pay

transfers only part of the leasehold interest

Subleasor is sandwhiched between leasor and sublease

• 1) Gross lease
• 2) triple net lease
• 3) percentage lease

tenant pays flat amount, landloard pays taxes, maintenence and ins

Tenant pays flat amount + taxes, ins, maintenence

Net lease

Tenants rent is based on a percentage of gross sale

• 1) extension has same lease, more periods
• 2) Renewal changes terms

If costs inc then LL can raise rents

• 1) Implied right of habitability\
• 2) Advance notice of inspection
• 3) liability for injuries
• 4) No interfere with tenants quiet use & enjoyment
• 5) No discrimination
• 6) Terminate with 30 day notice

• 1) Pay rent
• 2) Not damage
• 3) 30 day notice
• 4) If negligent, responsibility on tenant

Tenant unreasonably bothered by LL and decides to vacate

Offset of 1 mo rent to fix needed repairs

• 1) Written notice & time for LL to fix
• 2) LL refusal
• 3) Tenant sepnds 1 mo to fix
• 4) Limited to 2x/yr

No eviction notice or reaised rent for 180 days

process of legally removing a tenant

• 1) Serve 3/30 day notice
• 2) file unlawful detainer action in court
• 3) LL awarded judgement
• 4) LL asks for writ of posession
• 5) sheriff sends eviction notice
• 6) Sherriff physically removes after 5 days
• 7) impounds posessions

Authorizes sheriff to evict tenant

• OR -
• 1) personal delivery
• 2) leave copy & mail
• 3) Post & mail

• 1) breaks law
• 2) annoys others
• 3) Breaks park rules
• 4) Doesnt pay
• 5) Govt condems
• 6) park usage changes

60 days

16+ units

• 1) Off-site = broker
• 2) On-site = 0

Key employees must be bonded

certified property manager

Chapter 12

Citizens appointed by city council to mae land use recommendations

state requirement for outlining city/county goals and objectives

• 1) Resource analysis
• 2) formulate community goals
• 3) implementation

requires builder to designate low & moderate income housing

Deviation from the zoning regulations for a particular parcel

Division of property into 5+ parcels

Division of lot into 2, 3, or 4 parcels

Division into 2+ lots for sale, lease or financing now or in the future concerned with physical aspects

Divionsion into 5+ lots for sale, lease, or finaning now or in the future conerned with marketing aspects

Right to rescind up to 14 days

developers of 50+ lots out of state advertizing state must provide HUD report

• 1) 2+ lots
• 2) Connected lots
• 3) No 160 acre exemption
• 4) Local offficials administer
• 5) No public report

• 1) 5+lots
• 2) no connected requirement
• 3) 160 + acres exempt
• 4) CA RE Commissioner Administers
• 5) Public report

Common interest development

Planned unit developments

• 1) Condos
• 2) PUDs
• 3) Stock cooperatives
• 4) Commuity Apts

Own land underneath condo

Corp formed for the purpose of holding title to a building

Group jointly purchases undivded interest in apt complex

• 1) legal Docs of CID
• 2) notice of pending liens
• 3) Statement of current owner's assoc

• 1) CC&Rs
• 2) Articles of Inc
• 3) Bylaws
• 4) Governing Docs
• 5) Current Financial Statement

72 hours

Negitive impact report

Environmental impact report

NIR is for minor projects whereas EIR is for major projects

Unlawful to discriminate

Directing a prospective principal to certian neighborhoods

Attempting to create panic by stating minority groups are targeting for purchase

CA Fair housing Act

unlawful to disctiminate

Housing Financial Discrimination Act

fair Housing Federal Law

Applys discriminatory law on federal level

"According to value"

• 1) March 1, 1975
• 2) 1% of cash value
• 3) 2% of inflation compounded yearly

used as date to start 2% yearly collection on improvements

Senior Citizens over 55 can keep base year property tax if transfer in same county

Proposition 60 applies cross countys with board approval

• No Darn Fooling Arounf
• Nov 1, Dec 10, Feb 1, April 10

• 1) June 30th - intent to sale
• 2) 5 year redemption period starts
• 3) Pay in full or payments (so long as current taxes are not delinquent)
• 4)No payment = deeded to state
• 5) So long as state owns, right of redemption

Can get title ins after 1 yr

$7,000 off appraised value for tax purposes

$4,000 but not in conjunction with homeowner's exemption

defer property tax like reverse mortgage

• 1) To install or improve streets
• 2) Pro rata charges
• 3) If city bonds, finance

• 1) Interst deductable
• 2) property taxes deductable
• 3) 250,000 exemption for 2/5 yr residency

• 1) intrest & taxes deductable
• 2) operating expenses deductable
• 3) Depreciation
• 4) 1031 tax exchange
• 5) installment/seller carry

Unlike property received in 1031 tax exchange

foreign investment in real Property Tax Act

10% automatically held for tax purposes

3 1/3% withheld for foreign taxes

Chapter 14

• 1) Single story
• 2) 2 story
• 3) Split level

5+ lots for sale/lease

• 1) New Re license can't sell
• 2) Transportable (hitch and axles)
• 3) RE license responsible for title completion & delivery
• 4) Notification of transfer 10 days before sale
• 5) State fees paid w/in 10 days of sale
• 6) In Lieu Tax
• 7) HUD tax if after 1976

• 1) No delivery of certificate of ownership
• 2) Knowlingly involved in stolen mobile home sale
• 3) Bounced check for mobile home fees

• 1) Building permit
• 2) Permanent foundation
• 3) Certificate of occupancy
• 4) Statement stating appurtunent to land

• 1) Risk
• 2) Liquidity
• 3) Management
• 4) Tax aspects
• 5) Appreciation potential

Chapter 15

National Association of Realtors

Only used by NAR members

CA Association of Realtors

• 1) principal
• 2) Attorney in fact
• 3) Appraiser
• 4) lawyer
• 5) Trustee under deed of trust
• 6) On-site property manager

Licensed by Office of RE Appraisers

Special license allowing to supply w/list of available "for rents"

Sale of business with inventory

• 1) Public notice 12 days before sale
• 2) Recoding notice of intent to sell bulk
• 3) Newspaper

Expectation of continued patronage

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