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213 Cards in this Set
- Front
- Back
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The main historic influence on law in the U.S. |
English Law |
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The primary purpose of most civil lawsuits is to |
Compensate a person who has been harmed |
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When one sues another, the lawsuit is |
A civil action |
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A person who commits a tort |
Someone who has violated the standards of reasonable conduct imposed by law |
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Who would be most likely to issue an ordinance |
A city Council |
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Codification |
Combining scattered piecemeal laws into a comprehensive compendium or (collection) |
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When California legislature adopts a new statute, a new law |
May change rules that were developed in earlier court decisions |
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An example of a question of law |
Was the broker required to put the earnest money in a trust account? |
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Can limit a courts jurisdiction |
Geographical boundaries, subject matter of the case, amount of money at issue in the case |
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A fact witness can |
State her/his opinions while testifying if testimony is helpful |
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The boundaries in metes and bounds description |
Distances, Monuments, Courses |
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In metes and bounds description, the term "courses" refers to |
Compass readings |
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Compass directions are stated in terms of the degree of deviation from |
North or South |
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Another name for the government survey system |
Rectangular survey method |
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Range lines run |
North/South at six mile intervals |
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Township lines run |
East/West |
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The three principal meridians in California are |
Humboldt, San Bernardino, Mt. Diablo |
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Trade Fixtures |
Equipment installed for use in a tenants business |
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The owner of 10 acres of land with a one acre pond running through it has |
riparian water rights |
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Law is |
A system of rights and duties established and enforced by a government. It maintains order, resolves disputes, enforces promises, prevents eploitation |
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Civil Action |
When an injured party sues for compensation |
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Substantive Law |
Defines rights and duties |
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Procedural Law |
Sets out the methods for enforcing substantive rights |
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Contracts, Torts, and Property |
Fundamental concepts of Civil Law |
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Contract Law |
Concerns voluntarily assumed duties |
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Tort Law |
Concerns the duties of reasonable conduct imposed by law |
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Property Law |
Concerns duties inherent in ownership |
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Federal and State constitutions, legislatures, courts, and administrative agencies |
Sources of Law in U.S. |
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Constitutions |
Protect individual rights by limiting government power |
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Administrative and Legislative Agencies |
Issue general rules in the form of statutes, ordinances, and regulations |
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Judges |
Develop case law by interpreting rules and follow established precedents |
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Doctrine of Stare decisis |
Requires judges to follow established precedents so that the law will be evenhanded and predictable |
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Court System |
A Hierarchy of trial courts and appelate courts |
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Res Judicata |
Latin phrase "the thing has been decided" Once a dispute has been tried and a final judgment has been issued, the same dispute cannot be tried again |
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California courts have jurisdiction |
Over all real and personal property within the states boundaries |
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Inadmissable |
Testimony that cannot be used in court becaused it has been considered as unreliable or unfair |
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Judgment Lien |
A lien securing an interest in real property by attaching an abstract of judgment filed with the county recorder |
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Judgment Lien |
May be attached to real property and some personal property (business property) by court order for repayment of a debt |
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Garnishment |
When wages are used in collecting debt in installments |
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Real Property |
Land that is affixed to land; Is incidental or appurtenant to land; is immovable by law |
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Personal Property |
Is moveable, and is defined as every kind of property that is not real property |
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Legal Description |
Determines real property's boundaries |
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Three most commonly used methods for land description |
Metes and Bounds Government survey Lot and Block |
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Monuments |
Used in metes and bounds which may be natural objects such as roads or survey markers |
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Courses |
Metes and bounds description, (description) in the form of compass readings |
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Distances |
Metes and bounds description, measure in any convenient unit of length |
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Metes and Bounds |
Identifies a parcel of land by boundaries including monuments, courses, and distances |
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Government survey |
Divides the land into a series of rectangular grids called principal peridians and baselines |
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Range Lines |
Smaller lines in the large squares of meridians running north/south at 6 mile intervals |
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Township Lines |
East/West lines run at six mile intervals from the correction lines |
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Section |
1X1 Mi. = 640 Acres |
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Township measures |
6x6 Mi. =36 sections Divided into 36 sections (one sq. mile each) 36sections x640 acres = 23,040 acres |
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Lot and Block |
A system of land description by using a map called Final Subdivision Map by showing the dimension and boundaries of each lot |
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Bench Mark |
A point whose position relative to datum has been accurately measured |
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Datum |
An artificial plane of elevation established in reference to sea level |
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Air Rights |
The right to undisbursed use and control of the airspace over a parcel of land, maybe transferred seperately from the land |
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Attachments |
Things growing on the land (trees and shrubs) and things built on the land (houses and fences) are considered to be real property |
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Fructus Naturales |
Fruits of Nature All naturally occurring trees and plants Real Property |
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Fructus Industriales |
Fruits of Industry Are planted and cultivated by people Real Property |
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Doctrine of Emblements |
A special rule applying to crops planted by a tenant farmer. When a pre existing crop was planted prior to termination of lease the farmer may reenter the property to harvest the crops at a later date |
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Attached Fixtures |
Man made attachments that are permanently resting on the land (houses or barns) Affixed to land by roots (trees and shrubs) Embedded in earth (sewer lines, septic tanks) Attached by enduring method (Cement, plaster, nails, bolts or screws) |
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Fixtures |
Man - made attachments |
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Annexiation |
When an item becomes a fixture by being physically attached by the land in a way by forms of gravity or other ways that it cannot be removed without dismantling or tearing down a part of the building |
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Trade Fixtures |
Equipment installed for the use of a tenant in his business |
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Mobile Homes |
May be sold as personal property without a license unless the wheels have been removed and it has been permantly mounted on a foundation |
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Appurtenance |
A right that goes along with real property upon a sale or other transfer |
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Two main types of Water Rights |
Riparian Appropriative |
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Riparian Rights |
Any land that is adjacent to or crossed by water, or contains a body of water within its boundaries |
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Mineral Rights |
Considered to be real property until they are extracted, when they become personal property |
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An interest in real property that is, will be or may become possesory. |
Estate |
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Uncertain duration Indefinite ownership |
Freehold Estate |
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Highest and largest interest that can exist in land Inheritable Transferable Perpetual (right to posses property for an unlimited amount of time) |
Fee Simple Estate |
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Intestate Succession |
When an estate is passed to heirs if there is no will |
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Subject to a condition |
Fee Simple Defeasible |
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No conditions |
Fee Simple Absolute |
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An estate in which the duration of the estate is based on the lifetime of the owner |
Life Estate |
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The person who will earn the interest of the esate upon the death of the life estate |
Estate in Remainder |
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When estate is granted back (reverted) to original grantor at the end of the life estate |
Estate in Reversion |
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A limited interest in property. Someone rents the property for a limited time is in a leasehold estate |
Leasehold Estate |
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Tenancy for a fixed term (estate for years) Periodic tenancy (estate from period to period) Tenancy at will (estate at will) Tenancy at sufferance (estate at sufferance) |
What are the four types of Leasehold Estates |
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A leashold estate for a fixed time period. Does not mean years, could be days, months, etc. With a begining and ending date |
Estate for years |
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No specific term. Goes month to month until one of the parties gives notice of termination |
Periodic Tenancy |
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Tenant occupies property with the owners permission, but without any rental agreement. No specified termination date or rent paid (unless paid by other form that has no reference to period of time) |
Tenancy at will |
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When a tenant remains without the landlord's permission. Eviction must take place if the lanlord wants the tenant removed |
Tenancy at Sufferance |
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Someone who has a claim or right concerning the property but does not have the right to possess the property. Encumber or burden title |
Encumbrances (Non-possessory Interests) |
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A right held by one person to use the real property of another for a particular purpose. |
Easement |
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Burdens one piece of land for the benefit of another piece of land |
Easement Appurtenant |
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The land benefited by an Appurtenant easement |
Dominent Tenement |
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The owner of the Dominent tenement |
Dominent Tenant |
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The land burdened with an easement |
Servient Tenement |
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The owner of the land burdened by an easement |
Servient Tenant |
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An easement that burdens another's land, but does not benefit a piece of land. Has a servient tenement but not a dominant tenement. |
Easement in Gross |
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A legal doctrine that prevents a person from asserting rights or making claims that are contrary to his or her previous acts or conduct |
Estoppel |
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Created when someone makes long and continuous use of another's property without permission of the owner |
Easement by prescription |
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Grants permission to enter another's property for a purpose, not an interest in the property. A personal right |
License |
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Financial interest in property |
Lien |
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Proerty owner chooses to have placed against their property, ussually to obtain a loan Mortgages Deeds of Trusts |
Voluntary Lien |
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Arise through operation of law without property owners consent |
Involuntary Lien |
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Attaches to all of the debtors property |
General Lien |
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Attaches only to a particular piece of property |
Specific Lien |
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Deeds of Trust Mortgages Mechanics Judgment Tax |
Most common Liens against Real Estate |
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The Lender |
Mortgagee |
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Borrower |
Mortgagor |
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Borrower |
Trustor |
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Neutral third party |
Trustee |
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Lender |
Beneficiary |
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When a worker or a material supplier is not paid for work they may obtain a Mechanics Lien. It gives them the power to force the sale of the property to collect the debt owed. |
Mechanics Lien |
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The annual ad valorem taxes imposed on real property |
Property Taxes |
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Determining the value of property for tax purposes |
Assessment |
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Tax rate limited to 1% of the assessed value Assessed value = full cash value (unless ownership hasnt changed since March 1975) Property Reassessed on change of ownership Assessed value can't be increased more than 2% a year (unless there is a new owner or improvements) |
Affects of Proposition 13 |
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Have priority over all Liens except special assessment liens |
Property Tax Liens |
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Tax collector publishes a list of properties which have been tax defaulted for five years and will be subject to sell |
Notice of Power and Intent to Sell |
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The dwelling of the property owner or owner's spouse, together with its land and outbuildings |
Homestead |
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Five years from date condition was broken |
A grant deed with conditions regarding use of property which if broken returns title to previous owner or heirs. The previous owner must exercise the power of termination within what period of time |
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A Life Estate Pur Autre Vie |
If a Life Estate is based on someone other than the life tenant, it is called |
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May not use or abuse property in any way that would permanently damage it May not use or abuse it any way in which it would reduce the market value |
A Life Tenant |
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Tenancy at Will |
When someone allows a person to live in their vacated property |
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Easement Appurtenant |
An Easement that burdens one piece of land for the benefit of another |
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2% |
Property taxes cannot be increased each year by more than? |
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1% |
What percent of the assessed value is the tax rate limited |
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Free from most liens or interests that were recorded before the tax lien |
A person who requires title by tax deed purchases the property |
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$75,000 |
A single person owning and occupying a resident has a homestead exemption of |
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10% |
What percent does a property owner have to pay to redeem his property from delequent taxes (Delenquent penalty ) |
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When property is owned by one individual, they hold title as |
Severalty |
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Most basic form of co- ownership Can have unequal shares in property No limit on how many tenants in common |
Tenancy in Common |
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Right of Survivorship and requires four unities: Time Title Interest Possession |
Joint Tenancy |
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Voidable by the non-consenting spouse |
On Community property, an unauthorized transfer by one spouse only is |
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A trust that is effective during the life of the owner |
Revocable Living Trust |
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A seperate interest in his/her unit, plus an undivided interest in the common areas. |
Owner of a condominium has |
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Tenancy in Common |
If A owns an undivided 3/4 interest in property and B owns an undivided 1/4 interest in same property They hold title as |
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A tenant by the entirety |
In California a married person may not hold title to real property as |
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The property is owned by one individual |
When property title is Severalty it means |
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Possession |
The only one requirement unity for tenancy in common is |
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Not if they both agreed that only one living there would not sever the joint tenancy |
If A and B took title as joint tenancy and they agreed only one would live there would this effect joint tenancy? |
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The Right of Survivorship |
A,B,C owns a piece of land as joint tenants. If A dies then B,C would acquire 1/2 interest each because of |
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If B dies, the lender loses its lien against the property |
A,B,C own a house as joint tenants. B takes out a loan, giving her lender the trust deed on her interest in the property. |
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W and A each own 1/2 interest in property |
H and W were married. They own land as community property. H wills all his property to A. When H dies who owns the land? |
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Corporate officers authorized to sell it by a resolution of the board of directors |
A corp owns some land by severlty. In order to sell the land, who must sign the documents |
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Special Agent |
A real estate agent is considered to be a |
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Both parties agree to end it Agent renounces it Principal revokes it |
Agency is terminated by any of the following ways |
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The broker goes bankrupt |
A real estate agency is terminated by operation of law if |
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Risk Management |
Which course is required in renewing your real estate license first time? |
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3 Years |
Law requires that brokers to keep adequate records of real estate transactions and retain them for how long |
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3 buisness days after receipt |
All trust funds received by a broker must be deposited in a trust account or escrow account within |
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There are written instructions from the parties |
Broker may hold a buyer's earnest money check without depositing it in a trust account if |
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Demand-deposit accounts |
A real estate broker's trust accounts must be |
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By his or her broker |
A Salesperson must be paid a commission |
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Is agreed upon between the broker and the seller |
The amount of commission paid by the broker to the seller |
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Listing Agent |
A person who obtains a listing of the real property acting as an agent for compensation |
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As soon as practicable prior to signing the buyers' offer |
A selling agent must provide the agency disclosure form to the buyer |
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In purchase contract or separate writing |
Real Estate agents must confirm their agency relationships |
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A reasonably competent and diligent visual inspection of the property |
An agent has a duty to disclose material facts based on an inspection that includes |
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Must always be completed by the seller |
Transfer Disclosure Statement |
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Does require a Transfer Disclosure Statement |
Residential property that is sold "as is" |
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A Transfer Disclosure Statement is NOT required |
If a married person transfers their half of interest to their spouse |
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2 years for negligent inspection 3 years for intentional fraud |
The statute of limitations for a lawsuit brought against a broker is |
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An agreement to do or not do a certain thing |
Contract |
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Express Contract |
A contract that has been made in words, whether spoken or written |
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A contract that has not been put into words. Instead the agreement is implied from the actions of the parties |
Implied Contract |
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A contract that exists when each party makes a binding promise to the other. Formed by the exchange of promises. |
Bi-lateral Contract |
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A contract that exists when one party promises something if the other party performs a certain action, but the other party does not promise to perform it. |
Uni-lateral Contract |
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A contract that has been fully performed |
Executed Contract |
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A Contract where something remains to be done by one party |
Executory Contract |
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A Contract that meets all the legal requirements for contract formation |
Valid Contract |
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When one does not fulfill his side of the bargain in the contract |
Breach |
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When one or more of the requirements in the contract is not met. |
Void |
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A contract that may be valid in all respects except that it cannot be enforced in a court of law |
Unenforceable Contract |
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Capacity to contract Mutual consent Consideration Lawful purpose |
4 Essential elements in a valid contract |
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Be in writing to be enforceable |
Real Estate Contract must |
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A minor who has been appointed by the courts that they may have the capacity to buy, sell, lease, encumber, exchange, or transfer an interest in real property |
Emancipation |
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The Inability of a person to make or carry out important decisions regarding his/her affairs |
Mental Incompetence |
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A contract must have this to be binding. It is achieved through Offer and Acceptance |
Mutual Consent |
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If a contract is to vague it will not be a binding contract. It must have this |
Definite Terms |
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Death or insanity Destruction of property Impossibility of performance Illegality of performance |
Offers Terminated by Operation of Law |
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Revocation by the offeror before the offer is accepted Rejection of any part of the offer by the offeree Counter offer by the offeree Lapse of time where " too much" time has passed |
Termination by parties |
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An offeror revokes the offer before it is accepted |
Revocation |
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When offer is not accepted by oferee |
Rejection |
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A new offer made in rejection of an offer from a buyer/seller with different terms from the original offer. A counter offer terminates a original offer |
Counter offer |
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A new contract |
Novation |
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An alternative to the court system |
Arbitration |
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4 yours after the breach occurred |
What is the Statute of Limitations for a written contract lawsuit? |
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Court awarded remedy for a breach of contract |
Damages |
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Where parties agree that if there is a breach, the damages are set at a specified sum or calculated according to a specified formula |
Liquidated Damages |
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A court order directing a person to do or refrain from doing something |
Injunction |
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Fraud Undue influence Duress Menace Mistake |
When a contract is voidable |
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Real Estate Purchase Contracts Leases for more than one year Listing agreements Powers of attorney Trust Deed Assumptions |
Statute of Frauds requires certain contracts to be in writing and signed by the party to be charged, these are |
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New consideration in a contract. May be oral unless the original contract stated that it could only be modified in writing. Or the statute of frauds applies to the contract as modified. |
Contract modification |
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Assignment Novation Accord Satisfaction |
Specific types of Contract modifications |
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When one party to a contract makes the mistake |
Uni-lateral Mistake |
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Sets a period of time in which a lawsuit may be brought |
Statute of Limitations |
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Awarded in cases involving a TORT ( such as fraud) and not for breach of contract |
Punitive Damages |
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3% |
California theres a presumption that a contracts liquidated damage provision is valid if the percent of the purchase price provisional is |
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Does not come into court |
Parol Evidence Rule |
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A condition |
When an obligation in a contract involves an occurrence of a particular event, then that obligation is subject to |
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A Contract must be signed by person being sued |
Technically, with regard to Statute of Frauds |
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A signed writing by the client that indicates the fact of employment Listing agreement should state the terms of sale the seller is willing to accept and should specify when the broker will be entitled to the commission. |
What must a Real Estate Broker have to sue for a commission |
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A document that sets forth all the terms of the agreement between the buyer and seller. Most contain contingents. |
Purchase Agreement |
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Insures that the document being signed represents the final expression of the bargain, and any future modification must be in writing |
Integration Clause |
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Not an option; the holder has a right to purchase the property only if the owner decides to sell |
A right of preemption (right of first refusal) |
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Real Estate Commissioner's Regulations require this by a broker and has to be a written employment agreement with each licensee who works for him or her. Must be signed by both parties and it should state the terms of employment relationship, such as duties, supervision, compensation and termination |
Employment form |
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Employment contract between seller and broker. Does not have to be a legal document to be enforceable. It must however be in writing and signed by both parties. It is also important that the facts of employment are included. |
Listing Agreement |
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Offer to purchase real property Completed contract when accepted and signed by the buyer and seller A receipt for the good faith earnest money Joint Escrow instructions Sellers agreement to pay listing brokers compensation Mediation and Arbitration agreement Confirmation of the agency relationship Irrevocable assignment of compensation to brokers |
Residential Purchase Agreement and Joint Escrow instructions is a multi-functional form and contains ? |
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3 days of completion |
The Purchase agreement should be delivered to the escrow company within |
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If buyer defaults the broker is entitled to half the damages the seller receives, but is not allowed to receive more money than the commissions he may have made. |
Compensation Provision of Car |
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Five working days |
How many days does a broker have to review, sign, initial, and date a salespersons documents after they were prepared or before closing (whichever occurs first) |
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Integration Clause |
What clause in a contract that states this written document is the entire contract agreement between parties is referred to as |
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Before the seller signs the listing agreement |
The broker must provide seller with an agency disclosure form when |
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Exclusive Agency Exclusive Right to Sell Agency |
Which Listings must contain a termination date? |
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3 years |
Broker should keep on file an exclusive right to sell listing for how many years? |
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Both buyer and seller must initial arbitration provision |
California Association of Realtors purchase agreement; in order to arbitrate a dispute |
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Mediation provision is binding whether it is initialed or not |
In regards to the California Association of Realtors purchase agreement, in order to mediate any dispute the |
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A provision in a purchase contract which establishes the dollar amount in the event of a breach of contract by the buyer is called |
Liquidated Damages Clause |
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The right of preemption is also |
Right of first refusal |
