abandonment acre
TRANSCRIPT
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abandonment A tenant’s unilateral termination by forfeiture delivered by the landlord based on notices from the landlord. [See RPI Form 581]
acre A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.
advance fees
A fee paid in advance of any services rendered. Sometimes unlawfully charged in connection with that illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms.
advertising Communication of marketing materials by licensees, such as property fliers, classified ads or first-contact brochures.
amenities
Satisfaction of enjoyable living to be derived from a home; conditions of agreeable living or a beneficial influence from the location of improvements, not measured in monetary considerations but rather as tangible and intangible benefits attributable to the property, often causing greater pride in ownership.
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Federal regulations prohibiting an employer from discriminating against a qualified person based on a disability.
anti-trust State and federal regulations that are designed to promote fair competition in the marketplace.
arbitration A form of dispute resolution voluntarily agreed to in contracts authorizing a third-party arbitrator to issue a binding award which cannot be reviewed and corrected by a court of law.
assessment The valuation of property for the purpose of levying a tax or the amount of the tax levied. Also, payments made to a common interest subdivision homeowners’ association for maintenance and reserves.
automatic homestead The dollar amount of equity in a homeowner’s principal dwelling the homeowner is automatically qualified to exempt from creditor seizure. Also known as a statutory homestead exemption.
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backfill Previously excavated material used to fill in trenches around a property, such as against its foundation.
bearing wall A wall or partition which supports a part of a building, usually a roof or floor above.
beneficiary statement A document issued by a lender on request noting future payment schedules, interest rates and balances on a mortgage assumed by an equity purchase (EP) investor. [See RPI Form 415]
blockbusting The prohibited practice of a residential landlord inducing or attempting to induce a person to offer, or abstain from offering a dwelling to prevent the entry of certain classes of people into a neighborhood.
breach The breaking of a law, or failure of duty, either by omission or commission.
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bulk sale The transfer of more than one-half the inventory of a business’ materials or goods to a person other than the business’ customers.
business opportunity The assets for an existing business enterprise including its goodwill. As used in the Real Estate Law, the term includes the sale or lease of the business and goodwill of an existing business enterprise or opportunity.
buy-to-let investment Long-term income property investment.
caveat emptor A Latin expression meaning, “Let the buyer beware.”
certificate of clearance A document certifying a property has been cleared of all infestations and all repairs necessary to prevent infestations have been completed.
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Practice of Real Estate and Disclosures
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certificate of sale A certificate issued to the successful bidder on the completion of a judicial sale.
chattels Goods or every species of property movable or immovable which are not real property. Personal property.
closing
(l) Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes the signing and transfer of documents and distribution of funds. (2) Condition in description of real property by courses and distances at the boundary lines where the lines meet to include all the tract of land.
common area An entire common interest subdivision except the separate interests therein.
common area maintenance charge
Property operating expenses incurred by a nonresidential landlord and paid by the tenant as rent additional to the base rent, adjustments and percentages. [See RPI Form 552 §6]
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Practice of Real Estate and Disclosures
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comparative market analysis (CMA)
A worksheet used by an agent to prepare an estimate of a property’s value for review with a property owner for the purpose of a listing presentation. The analysis represents the value of property for sale based on prices recently paid for similar properties.
conservation easement A voluntary conveyance of the right to keep land in its natural or historical condition to a conservation organization or government agency.
constructive notice (landlord/tenant)
To be charged with the knowledge observable or recorded conditions exist on the property. When a tenant occupies a property under a lease agreement, a buyer is charged with constructive notice of the tenant’s leasehold interest by the occupancy.
deferred maintenance Existing but unfulfilled requirements for repairs and rehabilitation. Postponed or delayed maintenance causing decline in a building’s physical condition.
delinquency (landlord/ tenant)
A tenant’s failure to pay the agreed rents on or before the due date or before the expiration of the grace period set forth in the rental or lease agreement.
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Practice of Real Estate and Disclosures
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depreciation
Loss of value of property brought about by age, physical deterioration or functional or economic obsolescence. The term is also used in accounting to identify the amount of the decrease in value of an asset that is allowed in computing the value of the property for tax purposes.
due diligence The concerted and continuing efforts taken by an agent to meet the objectives of their client.
earnest money Down payment made by a purchaser of real estate as evidence of good faith. A deposit or partial payment.
environmental hazards Noxious or annoying man-made conditions which are injurious to health or interfere with an individual’s sensitivities.
equity purchase transaction A property transaction in which a one-to-four unit residential property in foreclosure, occupied by the owner as their principal residence, is acquired for dealer, investment or security purposes by an investor. [See RPI Form 156]
first tuesday Flash Cards Instructions: Fold lengthwise and cut along the dotted lines. Folded strips can be stapled together to make a study booklet.
Practice of Real Estate and Disclosures
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errors and omissions insurance
An insurance policy protecting brokers and agents from the full cost of defending against a negligence claim made by a client.
escrow The depository process employed to facilitate the gathering of instruments and funds for use to transfer real estate interests between two persons.
estoppel A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
eviction An unlawful detainer action filed to physically remove a tenant from actual possession.
fair housing laws A collection of laws designed to prevent discrimination in the access to housing based on an occupant’s inclusion in a protected class. Title VIII of the 1968 Civil Rights Act.
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fixture Appurtenances attached to the land or improvements, which usually cannot be removed without agreement as they become real property; examples plumbing fixtures, store fixtures built into the property, etc.
flashing Thin pieces of impervious material such as sheet metal installed to prevent water seepage into a structure from a joint.
forfeiture
1) The termination of an easement when the easement holder exceeds their authorized use of the easement by placing an excessive burden on the property encumbered by the easement. 2) Loss of money, rights or anything of value due to failure to perform, a remedy abhorred by the courts.
franchise A license granted by a franchise company to an individual or corporate broker to market their services in a specific territory under the anme and oversight of the franchise company.
grace period The time period following the due date for a payment during which payment received by the lender or landlord is not delinquent and a late charge is not due. [See RPI Form 550 §4.3 and 552 §4.7]
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guarantee An agreement entered into by a person who is not the borrower obligating that person as the guarantor to pay a lender in full under a note if the borrower defaults.
habitable condition The minimum acceptable level of safety and sanitation permitted in a residential rental.
hazardous waste Any products, materials or substances which are toxic, corrosive, ignitable or reactive.
hip roof The roof of a property that slopes on all four sides.
homeowners’ association (HOA)
An organization made up of owners of units within a common interest development (CID) which manages and operates the project through enforcement of conditions, covenants and restrictions (CC&Rs).
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homestead Dollar amount of equity in a homeowner’s principal dwelling the homeowner qualifies to exempt from creditor seizure. [See RPI Form 465]
implied warranty of habitability
An unwritten provision in all residential lease agreements requiring the landlord to provide safe and sanitary conditions in the rental unit.
incurable breach Nonmonetary defaults that cannot be cured by a tenant. [See RPI Form 577]
interpleader A court proceeding initiated by the holder of money or other property, often an escrow company, who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.
intestate A person who dies having made no will, or one which is defective in form, is said to have died intestate, in which case the estate descends to the heirs at law or next of kin.
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inventory Properties available on the market through the multiple listing service.
joint pre-expiration inspection
An inspection conducted by a residential landlord to advise a tenant of the repairs the tenant needs to perform to avoid deductions from the security deposit. [See RPI Form 567-1]
joist A horizontal support running between a property’s foundations, walls, or beams to support its ceiling or floor.
judgment The final determination of a court of competent jurisdiction of a matter presented to it; money judgments provide for the payment of claims presented to the court, or are awarded as damages, etc.
judgment lien A money judgment against a property owner that is recorded and attached to the title of their properties.
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lead-based paint hazard Any condition that causes exposure to lead from lead-contaminated dust, soil or paint which has deteriorated to the point of causing adverse human health effects.
legal description The description used to locate and set boundaries for a parcel of real estate.
leverage The use of debt financing to aquire property to maximize the return on cash invested, the loan- to-value ratio.
license The personal, unassignable right held by an individual to the non-exclusive use of property owned by another.
limited liability company An organization formed for the purpose of group investment. The members of an LLC are not liable for the LLC’s debts and obligations.
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lis pendens A notice filed or recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation; literally suit pending; usually recorded so as to give constructive notice of pending litigation.
marketing package A property information package handed to prospective buyers containing disclosures compiled on the listed property by the seller’s agent.
material breach Failure to pay rent or perform other significant obligations called for in the rental or lease agreement. [See RPI Form 577]
material defect Information about a property which might affect the price and terms a prudent buyer is willing to pay for a property.
material fact A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his or her consent to the agent to enter into the particular transaction on the specified terms.
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mechanic’s lien A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.
mediation An informal, non-binding dispute resolution voluntarily agreed to in which a third-party mediator works to bring the disputing parties to their own decision to resolve their dispute.
metes and bounds
A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description is often used when a great deal of accuracy is required.
multiple listing service (MLS) An association of real estate agents providing for a pooling of listings and the sharing of commissions on a specified basis.
Natural Hazard Disclosure Statement
A report provided by a local agency or NHD vendor and used by sellers and seller’s agents to disclose natural hazards which exist on a property held out for sale.
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negligence Failure to correct a known dangerous condition when under a duty to others to do so.
notice of entry A written document giving a tenant advance notice of a landlord’s intent to enter a tenant’s unit to perform maintenance, make repairs or inspect. [See RPI Form 567]
notice of nonresponsibility A notice used by a landlord to declare that they are not responsible for any claim arising out of the improvement being constructed on their property. [See RPI Form 597]
notice to pay rent or quit A notice served on a tenant by the landlord which states the amount of delinquent rent and any other delinquent amounts owed the landlord. [See RPI Form 575 and 575-1]
notice to perform or quit A notice requiring a tenant to perform an action to remedy a curable nonmonetary breach of the lease agreement. [See RPI Form 576]
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notice to quit A notice to vacate served on a tenant for an incurable breach of a rental or lease agreement or due to a statutory breach. [See RPI Form 577]
notice to vacate A written document used by a tenant or a landlord to terminate a periodic tenancy. [See RPI Form 569 and 569-1]
novation An agreement entered into by a lender, buyer and seller shifting responsibility for a mortgage obligation to the buyer (an assumption) and releasing the seller of liability.
nuisance An action which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property. [See RPI Form 550 §6.7 and 552 §7.3]
nuisance per se Any activity specifically declared by statute to be a nuisance, such as fences of excessive height or the illegal sale of controlled substances.
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obsolescence
Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. May be functional or economic.
operating expenses The total annual cost incurred to maintain and operate a property for one year. [See RPI Form 352 §3.21]
option A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.
orientation Placing a structure on its lot with regard to its exposure to the rays of the sun, prevailing winds, privacy from the street and protection from outside noises.
panic selling
As with blockbusting, the prohibited discriminatory practice of a real estate licensee inducing a property owner to list a property for sale by suggesting that a change in neighborhood demographics will cause a loss in property values.
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parcel A three-dimensional portion of real estate identified by a legal description.
patent Conveyance of title to government land.
percentage lease A nonresidential lease agreement for a retail operation that sets the total amount of rent the tenant will pay as a percentage of the tenant’s gross sales. [See RPI Form 552-4]
periodic tenancy A leasehold interest which lasts for automatic successive rental periods of the same length of time, terminating upon notice from either party. [See RPI 551 and 552-5]
personal property Moveable property which is not classified as real estate, such as trade fixtures.
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planned unit development (PUD)
A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.
plottage A term used in appraising to designate the increased value of two or more contiguous lots when they are joined under single ownership and available for use as a larger single lot. Also called assemblage.
prefabricated house A house manufactured and sometimes partly assembled before delivery to building site.
pro rata In proportion; according to a certain percentage or proportion of a whole.
procuring cause
That cause originating from a series of events that, without break in continuity, results in the prime object of an agent’s employment producing a final buyer; the real estate agent who first procures a ready, willing, and able buyer for the agreed upon price and terms and is entitled to the commission.
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property
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is classified into two groups, personal property and real property.
property management A branch of the real estate business involving the marketing, operation, maintenance and day-to- day financing of rental properties.
Proposition 13 A 1979 California state constitutional amendment restricting property tax increases in years following acquisition by limiting annual increases in assessed value of real estate to no more than 2%, or the rate of consumer inflation if less.
puffing An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.
pure-net lease A commercial lease in which a tenant assumes absolutely all ownership duties. [See RPI Form 552-2 and 552-3]
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quiet enjoyment Right of an owner or tenant to the use of the property without interference of possession.
quiet title A court action to establish title to a property or remove a cloud from title.
radon gas A naturally occurring gas which accumulates in confined areas and poses a health risk to occupants.
ratification The adoption or approval of an act performed on behalf of a person without previous authorization, such as the approval by a principal of previously unauthorized acts of an agent, after the acts have been performed.
ready, willing and able buyer
One who is fully prepared to enter into the contract, really wants to buy, and unquestionably meets the financing requirements of purchase.
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real estate Land and anything permanently affixed or appurtenant to it.
real estate investment trust A security traded on the stock market made up of investments in income generating property, trust deeds and government securities.
Real Estate Law A collection of 29 codes in California civil law governing real estate practice licensed under the Business and Professions Code and in the Government Code.
real property Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land.
red flag A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.
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rent skimming When a speculator purchases a single family residence (SFR), and collects and keeps rent without making payments on the underlying loan.
restoration The return of funds and documents on a rescission of a purchase agreement sufficient to place all the parties in the position they held before entering into the agreement.
right of first refusal A pre-emptive right to buy a property if the owner decides to sell. [See RPI Form 579]
security Collateral for a loan in the form of a lien imposed on the property.
security deposit Security for the tenant’s default on obligations agreed to in the rental or lease agreement. [See RPI Form 550 §2.1 and 552 §1.2]
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single family residence
A housing structure maintained and used as a single dwelling unit. A single family residence may share walls with another dwelling unit, provided it has direct access to a street and does not share an essential facility or service with any other dwelling unit.
slander of title False and malicious statements disparaging an owner s title to property and resulting in actual pecuniary damage to the owner.
specific performance An action to compel performance of an agreement, e.g., sale of land as an alternative to damages or rescission.
statement of deficiencies A document a residential landlord presents to a vacating tenant specifying any repairs or cleaning to be completed by the tenant to avoid deductions from the security deposit. [See RPI Form 567-3]
statute of frauds A state law, based on an old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g.. contracts for the sale of real property, contracts not be performed within one year.
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statute of limitations A period of time establishing the deadline for filing a lawsuit to resolve a dispute.
sublease A leasehold interest subject to the terms of a master lease.
subrogation
Replacing one person with another in regard to a legal right or obligation. The substitution of another person in place of the creditor, to whose rights he or she succeeds in relation to the debt. The doctrine is used very often where one person agrees to stand surety for the performance of a contract by another person.
surrender A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises. [See RPI Form 587]
tenant improvements Improvements made to a rented property to meet the needs of the occupying tenant. [See RPI Form 552 §11]
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termination The cancellation of a transaction before escrow has closed.
trade fixtures Fixtures used to render services or make products for the trade or business of a tenant.
Transfer Disclosure Statement
A mandatory disclosure prepared by a seller- in-foreclosure and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure. [See RPI Form 304]
trespass Any wrongful and unauthorized entry onto real estate in the possession of another.
unlawful detainer The unlawful possession of a property. [See RPI Form 575-578]
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unlicensed activities Activities performed by unlicensed assistants, such as clerical work which does not relate to the communication of information such as price and terms of a sale with potential buyers and sellers.
utilities Refers to services rendered by public utility companies, such as - water, gas, electricity, telephone.
void To have no force or effect; that which is unenforceable.
waive To relinquish, or abandon; to forego a right to enforce or require anything.
waste The intentional destruction or neglect of property which diminishes its value. [See RPI Form 550 §6.8 and 552 §7.4]
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Practice of Real Estate and Disclosures
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abandonment A tenant’s unilateral termination by forfeiture delivered by the landlord based on notices from the landlord. [See RPI Form 581]
acre A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.
advance fees
A fee paid in advance of any services rendered. Sometimes unlawfully charged in connection with that illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms.
advertising Communication of marketing materials by licensees, such as property fliers, classified ads or first-contact brochures.
amenities
Satisfaction of enjoyable living to be derived from a home; conditions of agreeable living or a beneficial influence from the location of improvements, not measured in monetary considerations but rather as tangible and intangible benefits attributable to the property, often causing greater pride in ownership.
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Federal regulations prohibiting an employer from discriminating against a qualified person based on a disability.
anti-trust State and federal regulations that are designed to promote fair competition in the marketplace.
arbitration A form of dispute resolution voluntarily agreed to in contracts authorizing a third-party arbitrator to issue a binding award which cannot be reviewed and corrected by a court of law.
assessment The valuation of property for the purpose of levying a tax or the amount of the tax levied. Also, payments made to a common interest subdivision homeowners’ association for maintenance and reserves.
automatic homestead The dollar amount of equity in a homeowner’s principal dwelling the homeowner is automatically qualified to exempt from creditor seizure. Also known as a statutory homestead exemption.
first tuesday Flash Cards Instructions: Fold lengthwise and cut along the dotted lines. Folded strips can be stapled together to make a study booklet.
Practice of Real Estate and Disclosures
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backfill Previously excavated material used to fill in trenches around a property, such as against its foundation.
bearing wall A wall or partition which supports a part of a building, usually a roof or floor above.
beneficiary statement A document issued by a lender on request noting future payment schedules, interest rates and balances on a mortgage assumed by an equity purchase (EP) investor. [See RPI Form 415]
blockbusting The prohibited practice of a residential landlord inducing or attempting to induce a person to offer, or abstain from offering a dwelling to prevent the entry of certain classes of people into a neighborhood.
breach The breaking of a law, or failure of duty, either by omission or commission.
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Practice of Real Estate and Disclosures
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bulk sale The transfer of more than one-half the inventory of a business’ materials or goods to a person other than the business’ customers.
business opportunity The assets for an existing business enterprise including its goodwill. As used in the Real Estate Law, the term includes the sale or lease of the business and goodwill of an existing business enterprise or opportunity.
buy-to-let investment Long-term income property investment.
caveat emptor A Latin expression meaning, “Let the buyer beware.”
certificate of clearance A document certifying a property has been cleared of all infestations and all repairs necessary to prevent infestations have been completed.
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Practice of Real Estate and Disclosures
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certificate of sale A certificate issued to the successful bidder on the completion of a judicial sale.
chattels Goods or every species of property movable or immovable which are not real property. Personal property.
closing
(l) Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes the signing and transfer of documents and distribution of funds. (2) Condition in description of real property by courses and distances at the boundary lines where the lines meet to include all the tract of land.
common area An entire common interest subdivision except the separate interests therein.
common area maintenance charge
Property operating expenses incurred by a nonresidential landlord and paid by the tenant as rent additional to the base rent, adjustments and percentages. [See RPI Form 552 §6]
first tuesday Flash Cards Instructions: Fold lengthwise and cut along the dotted lines. Folded strips can be stapled together to make a study booklet.
Practice of Real Estate and Disclosures
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comparative market analysis (CMA)
A worksheet used by an agent to prepare an estimate of a property’s value for review with a property owner for the purpose of a listing presentation. The analysis represents the value of property for sale based on prices recently paid for similar properties.
conservation easement A voluntary conveyance of the right to keep land in its natural or historical condition to a conservation organization or government agency.
constructive notice (landlord/tenant)
To be charged with the knowledge observable or recorded conditions exist on the property. When a tenant occupies a property under a lease agreement, a buyer is charged with constructive notice of the tenant’s leasehold interest by the occupancy.
deferred maintenance Existing but unfulfilled requirements for repairs and rehabilitation. Postponed or delayed maintenance causing decline in a building’s physical condition.
delinquency (landlord/ tenant)
A tenant’s failure to pay the agreed rents on or before the due date or before the expiration of the grace period set forth in the rental or lease agreement.
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Practice of Real Estate and Disclosures
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depreciation
Loss of value of property brought about by age, physical deterioration or functional or economic obsolescence. The term is also used in accounting to identify the amount of the decrease in value of an asset that is allowed in computing the value of the property for tax purposes.
due diligence The concerted and continuing efforts taken by an agent to meet the objectives of their client.
earnest money Down payment made by a purchaser of real estate as evidence of good faith. A deposit or partial payment.
environmental hazards Noxious or annoying man-made conditions which are injurious to health or interfere with an individual’s sensitivities.
equity purchase transaction A property transaction in which a one-to-four unit residential property in foreclosure, occupied by the owner as their principal residence, is acquired for dealer, investment or security purposes by an investor. [See RPI Form 156]
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Practice of Real Estate and Disclosures
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errors and omissions insurance
An insurance policy protecting brokers and agents from the full cost of defending against a negligence claim made by a client.
escrow The depository process employed to facilitate the gathering of instruments and funds for use to transfer real estate interests between two persons.
estoppel A legal theory under which a person is barred from asserting or denying a fact because of the person’s previous acts or words.
eviction An unlawful detainer action filed to physically remove a tenant from actual possession.
fair housing laws A collection of laws designed to prevent discrimination in the access to housing based on an occupant’s inclusion in a protected class. Title VIII of the 1968 Civil Rights Act.
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fixture Appurtenances attached to the land or improvements, which usually cannot be removed without agreement as they become real property; examples plumbing fixtures, store fixtures built into the property, etc.
flashing Thin pieces of impervious material such as sheet metal installed to prevent water seepage into a structure from a joint.
forfeiture
1) The termination of an easement when the easement holder exceeds their authorized use of the easement by placing an excessive burden on the property encumbered by the easement. 2) Loss of money, rights or anything of value due to failure to perform, a remedy abhorred by the courts.
franchise A license granted by a franchise company to an individual or corporate broker to market their services in a specific territory under the anme and oversight of the franchise company.
grace period The time period following the due date for a payment during which payment received by the lender or landlord is not delinquent and a late charge is not due. [See RPI Form 550 §4.3 and 552 §4.7]
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guarantee An agreement entered into by a person who is not the borrower obligating that person as the guarantor to pay a lender in full under a note if the borrower defaults.
habitable condition The minimum acceptable level of safety and sanitation permitted in a residential rental.
hazardous waste Any products, materials or substances which are toxic, corrosive, ignitable or reactive.
hip roof The roof of a property that slopes on all four sides.
homeowners’ association (HOA)
An organization made up of owners of units within a common interest development (CID) which manages and operates the project through enforcement of conditions, covenants and restrictions (CC&Rs).
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homestead Dollar amount of equity in a homeowner’s principal dwelling the homeowner qualifies to exempt from creditor seizure. [See RPI Form 465]
implied warranty of habitability
An unwritten provision in all residential lease agreements requiring the landlord to provide safe and sanitary conditions in the rental unit.
incurable breach Nonmonetary defaults that cannot be cured by a tenant. [See RPI Form 577]
interpleader A court proceeding initiated by the holder of money or other property, often an escrow company, who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.
intestate A person who dies having made no will, or one which is defective in form, is said to have died intestate, in which case the estate descends to the heirs at law or next of kin.
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inventory Properties available on the market through the multiple listing service.
joint pre-expiration inspection
An inspection conducted by a residential landlord to advise a tenant of the repairs the tenant needs to perform to avoid deductions from the security deposit. [See RPI Form 567-1]
joist A horizontal support running between a property’s foundations, walls, or beams to support its ceiling or floor.
judgment The final determination of a court of competent jurisdiction of a matter presented to it; money judgments provide for the payment of claims presented to the court, or are awarded as damages, etc.
judgment lien A money judgment against a property owner that is recorded and attached to the title of their properties.
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lead-based paint hazard Any condition that causes exposure to lead from lead-contaminated dust, soil or paint which has deteriorated to the point of causing adverse human health effects.
legal description The description used to locate and set boundaries for a parcel of real estate.
leverage The use of debt financing to aquire property to maximize the return on cash invested, the loan- to-value ratio.
license The personal, unassignable right held by an individual to the non-exclusive use of property owned by another.
limited liability company An organization formed for the purpose of group investment. The members of an LLC are not liable for the LLC’s debts and obligations.
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lis pendens A notice filed or recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation; literally suit pending; usually recorded so as to give constructive notice of pending litigation.
marketing package A property information package handed to prospective buyers containing disclosures compiled on the listed property by the seller’s agent.
material breach Failure to pay rent or perform other significant obligations called for in the rental or lease agreement. [See RPI Form 577]
material defect Information about a property which might affect the price and terms a prudent buyer is willing to pay for a property.
material fact A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his or her consent to the agent to enter into the particular transaction on the specified terms.
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mechanic’s lien A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.
mediation An informal, non-binding dispute resolution voluntarily agreed to in which a third-party mediator works to bring the disputing parties to their own decision to resolve their dispute.
metes and bounds
A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description is often used when a great deal of accuracy is required.
multiple listing service (MLS) An association of real estate agents providing for a pooling of listings and the sharing of commissions on a specified basis.
Natural Hazard Disclosure Statement
A report provided by a local agency or NHD vendor and used by sellers and seller’s agents to disclose natural hazards which exist on a property held out for sale.
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negligence Failure to correct a known dangerous condition when under a duty to others to do so.
notice of entry A written document giving a tenant advance notice of a landlord’s intent to enter a tenant’s unit to perform maintenance, make repairs or inspect. [See RPI Form 567]
notice of nonresponsibility A notice used by a landlord to declare that they are not responsible for any claim arising out of the improvement being constructed on their property. [See RPI Form 597]
notice to pay rent or quit A notice served on a tenant by the landlord which states the amount of delinquent rent and any other delinquent amounts owed the landlord. [See RPI Form 575 and 575-1]
notice to perform or quit A notice requiring a tenant to perform an action to remedy a curable nonmonetary breach of the lease agreement. [See RPI Form 576]
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notice to quit A notice to vacate served on a tenant for an incurable breach of a rental or lease agreement or due to a statutory breach. [See RPI Form 577]
notice to vacate A written document used by a tenant or a landlord to terminate a periodic tenancy. [See RPI Form 569 and 569-1]
novation An agreement entered into by a lender, buyer and seller shifting responsibility for a mortgage obligation to the buyer (an assumption) and releasing the seller of liability.
nuisance An action which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property. [See RPI Form 550 §6.7 and 552 §7.3]
nuisance per se Any activity specifically declared by statute to be a nuisance, such as fences of excessive height or the illegal sale of controlled substances.
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obsolescence
Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. May be functional or economic.
operating expenses The total annual cost incurred to maintain and operate a property for one year. [See RPI Form 352 §3.21]
option A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.
orientation Placing a structure on its lot with regard to its exposure to the rays of the sun, prevailing winds, privacy from the street and protection from outside noises.
panic selling
As with blockbusting, the prohibited discriminatory practice of a real estate licensee inducing a property owner to list a property for sale by suggesting that a change in neighborhood demographics will cause a loss in property values.
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parcel A three-dimensional portion of real estate identified by a legal description.
patent Conveyance of title to government land.
percentage lease A nonresidential lease agreement for a retail operation that sets the total amount of rent the tenant will pay as a percentage of the tenant’s gross sales. [See RPI Form 552-4]
periodic tenancy A leasehold interest which lasts for automatic successive rental periods of the same length of time, terminating upon notice from either party. [See RPI 551 and 552-5]
personal property Moveable property which is not classified as real estate, such as trade fixtures.
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planned unit development (PUD)
A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.
plottage A term used in appraising to designate the increased value of two or more contiguous lots when they are joined under single ownership and available for use as a larger single lot. Also called assemblage.
prefabricated house A house manufactured and sometimes partly assembled before delivery to building site.
pro rata In proportion; according to a certain percentage or proportion of a whole.
procuring cause
That cause originating from a series of events that, without break in continuity, results in the prime object of an agent’s employment producing a final buyer; the real estate agent who first procures a ready, willing, and able buyer for the agreed upon price and terms and is entitled to the commission.
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property
Everything capable of being owned and acquired lawfully. The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is classified into two groups, personal property and real property.
property management A branch of the real estate business involving the marketing, operation, maintenance and day-to- day financing of rental properties.
Proposition 13 A 1979 California state constitutional amendment restricting property tax increases in years following acquisition by limiting annual increases in assessed value of real estate to no more than 2%, or the rate of consumer inflation if less.
puffing An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.
pure-net lease A commercial lease in which a tenant assumes absolutely all ownership duties. [See RPI Form 552-2 and 552-3]
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quiet enjoyment Right of an owner or tenant to the use of the property without interference of possession.
quiet title A court action to establish title to a property or remove a cloud from title.
radon gas A naturally occurring gas which accumulates in confined areas and poses a health risk to occupants.
ratification The adoption or approval of an act performed on behalf of a person without previous authorization, such as the approval by a principal of previously unauthorized acts of an agent, after the acts have been performed.
ready, willing and able buyer
One who is fully prepared to enter into the contract, really wants to buy, and unquestionably meets the financing requirements of purchase.
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real estate Land and anything permanently affixed or appurtenant to it.
real estate investment trust A security traded on the stock market made up of investments in income generating property, trust deeds and government securities.
Real Estate Law A collection of 29 codes in California civil law governing real estate practice licensed under the Business and Professions Code and in the Government Code.
real property Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land.
red flag A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.
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rent skimming When a speculator purchases a single family residence (SFR), and collects and keeps rent without making payments on the underlying loan.
restoration The return of funds and documents on a rescission of a purchase agreement sufficient to place all the parties in the position they held before entering into the agreement.
right of first refusal A pre-emptive right to buy a property if the owner decides to sell. [See RPI Form 579]
security Collateral for a loan in the form of a lien imposed on the property.
security deposit Security for the tenant’s default on obligations agreed to in the rental or lease agreement. [See RPI Form 550 §2.1 and 552 §1.2]
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single family residence
A housing structure maintained and used as a single dwelling unit. A single family residence may share walls with another dwelling unit, provided it has direct access to a street and does not share an essential facility or service with any other dwelling unit.
slander of title False and malicious statements disparaging an owner s title to property and resulting in actual pecuniary damage to the owner.
specific performance An action to compel performance of an agreement, e.g., sale of land as an alternative to damages or rescission.
statement of deficiencies A document a residential landlord presents to a vacating tenant specifying any repairs or cleaning to be completed by the tenant to avoid deductions from the security deposit. [See RPI Form 567-3]
statute of frauds A state law, based on an old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g.. contracts for the sale of real property, contracts not be performed within one year.
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statute of limitations A period of time establishing the deadline for filing a lawsuit to resolve a dispute.
sublease A leasehold interest subject to the terms of a master lease.
subrogation
Replacing one person with another in regard to a legal right or obligation. The substitution of another person in place of the creditor, to whose rights he or she succeeds in relation to the debt. The doctrine is used very often where one person agrees to stand surety for the performance of a contract by another person.
surrender A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises. [See RPI Form 587]
tenant improvements Improvements made to a rented property to meet the needs of the occupying tenant. [See RPI Form 552 §11]
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termination The cancellation of a transaction before escrow has closed.
trade fixtures Fixtures used to render services or make products for the trade or business of a tenant.
Transfer Disclosure Statement
A mandatory disclosure prepared by a seller- in-foreclosure and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure. [See RPI Form 304]
trespass Any wrongful and unauthorized entry onto real estate in the possession of another.
unlawful detainer The unlawful possession of a property. [See RPI Form 575-578]
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unlicensed activities Activities performed by unlicensed assistants, such as clerical work which does not relate to the communication of information such as price and terms of a sale with potential buyers and sellers.
utilities Refers to services rendered by public utility companies, such as - water, gas, electricity, telephone.
void To have no force or effect; that which is unenforceable.
waive To relinquish, or abandon; to forego a right to enforce or require anything.
waste The intentional destruction or neglect of property which diminishes its value. [See RPI Form 550 §6.8 and 552 §7.4]
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