Agent Prep 2024 Vocabulary Study Set
California Real Estate Exam Questions
And Answers With Verified Solutions.
Bundle of Rights - ANSWER✔✔Legal rights of the real estate title holder.
Includes the right of possession, the right of control, the right of exclusion, the
right of enjoyment and the right of disposition.
Real Property - ANSWER✔✔Generally immovable. Goes with the real estate.
Personal Property - ANSWER✔✔Generally movable. Goes with the person. It can
be hypothecated, alienated and become real property (a fixture).
Chattel Real - ANSWER✔✔Often merely refers to tangible movable personal
property.
Fixture - ANSWER✔✔Personal property that is now real property- for example, a
pool covering or a painting that has been nailed to the wall. The acronym MARIA
is a test for whether or not something is a fixture (Method Adaptability
Relationship Intention Agreement).
Trade Fixture - ANSWER✔✔Linked to a business. They are personal property- for
example, a hairdresser's chair or a dentist chair. Although the chair is attached to
the ground, it is not real property- it is personal because when the hairdresser sells
her property, the chair will be going with her as part of her business. The chair is
personal because it belongs with the person, not the land.
Littoral Rights - ANSWER✔✔Land which abuts a body of static water- for
example, a lake, sea or ocean.
,Accretion - ANSWER✔✔An increase in actual land due to natural causes- for
example, from the gradual action of the ocean or river waters.
Avulsion - ANSWER✔✔Land is washed away by water- for example, a dam
breaks and the rushing water washes away a strip of land.
Reliction - ANSWER✔✔Gradual recession of water, leaving land permanently
uncovered.
Appurtenances - ANSWER✔✔Includes easements, stock in a mutual water
company, covenants, and minerals (still in the ground). They are considered real
property and "run with the land."
Freehold Estate - ANSWER✔✔Estate where ownership is held for an undefined
length of time.
Fee Simple Estate - ANSWER✔✔Also known as an "Estate of Inheritance" or
"Fee Simple Absolute", this is a type of freehold estate. It can be sold or inherited,
and is not free of encumbrances (taxes). Fee Simple Absolute is the most interest
that one can hold in land.
Fee Simple Defeasible - ANSWER✔✔Puts conditions on the use of a property- for
example, if the deed had a condition that no alcohol would be sold on the property
and that was violated, the owner could lose title.
Life Estate - ANSWER✔✔An interest in real property that lasts the length of
someone's life. It is a type of freehold estate because it is indefinite in duration.
,When the life tenant's life ends, title reverts to the original owner (reversion) or a
remainderman.
Life Estate Pur Autrie Vie - ANSWER✔✔An interest in real property that lasts the
length of someone's life (who is not the life tenant). It is a type of freehold estate
because it is indefinite in duration. When the "measuring life" ends, title reverts to
the original owner (reversion) or a remainderman.
Less Than Freehold Estate - ANSWER✔✔An estate interest held for a defined
period of time.
Estate for Years - ANSWER✔✔Estate or tenancy lasting a fixed period of time-
for example, a summer rental lasting from April 5 to September 19.
Periodic Tenancy - ANSWER✔✔Estate where tenancy is renewed periodically-
for example, week to week, month to month or year to year.
Estate at Will - ANSWER✔✔Estate that can be ended at any time by the landlord
or the tenant.
Estate at Sufferance - ANSWER✔✔Estate where a tenant continues to occupy a
property after a lease or rental agreement has ended- for example, a deadbeat
tenant.
Lease - ANSWER✔✔A contract between a lessor and a lessee which gives
possession but not ownership, to the lessee. Also known as a "Leasehold Estate".
The tenant doesn't need to sign a lease to become a lessee, acting as a lessee is
enough. This is NOT real property, a lease is considered personal property. Think
, of them as a piece of paper- a lease is a piece of paper, and you can move a piece
of paper, so leases are personal property.
Percentage Lease - ANSWER✔✔Lease where the amount of rent paid by the
lessee is a percentage of the gross income of the lessee's business- for example, a
commercial parking lot.
Net Lease - ANSWER✔✔Also known as a Triple Net Lease, this is a lease in
which the tenant pays for taxes, insurance and maintenance in addition to other
fees like rent and utilities.
Gross Lease - ANSWER✔✔Lease in which the tenant pays a fixed amount to the
landlord- for example, a standard residential lease.
Sandwich Lease - ANSWER✔✔A lease in which an existing tenant sub-lets (or
leases again) the property to a third party. The lessee becomes the lessor.
Sale Leaseback - ANSWER✔✔Seller leases the recently-sold building from the
new owner. The Vendor becomes the Lessee. This allows the seller to deduct all
future rent payments as business expenditures.
Tenant Improvement Allowance - ANSWER✔✔The amount a landlord is willing
to spend so the tenant can retrofit or renovate a commercial space.
Abandonment - ANSWER✔✔Voluntarily giving up the rights and responsibilities
of possession of a property.
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