Terminology Dictionary

Department of Real Estate — California state agency that licenses and regulates real estate agents, brokers, and subdivisions. Enforces the Real Estate Law.

The highest standard of care in law — an agent must place the client's interests above their own in all matters. Includes Loyalty, Confidentiality, Disclosure, Obedience, Reasonable Care, and Accounting (LCDOCA).

One agent or brokerage representing both buyer and seller in the same transaction. Legal in California only with written informed consent from both parties. Creates inherent conflict of interest.

Required California form presented at first substantive contact — discloses to buyer and seller who the agent represents. Must be signed by both parties.

Employment contract between property owner (seller) and a licensed broker granting authority to market and sell the property. Defines commission, duration, price, and scope of authority.

Errors & Omissions insurance — professional liability coverage protecting real estate agents and brokers against claims of negligence, mistakes, or inadequate services.

Relationship where a cooperating broker legally becomes an agent of the listing broker rather than the buyer. Largely obsolete but still legally possible. Creates loyalty to the seller.

Movable items not permanently attached to real property. Also called chattel. Examples: furniture, vehicles, appliances not built-in. Transfers via bill of sale, not deed.

Land plus everything permanently attached to it — buildings, improvements, fixtures, trees, and the rights that go with the land (air rights, mineral rights, water rights).

Personal property permanently attached to real property, legally becoming part of the real estate. Test: MARIA (Method of attachment, Adaptability, Relationship of parties, Intention, Agreement).

The concept that property ownership includes multiple distinct rights: right to use, right to enjoy, right to exclude others, right to dispose (sell/lease), and right to encumber.

The highest, most complete form of property ownership — unconditional, of potentially infinite duration, with no restrictions on use. Owner can use, sell, lease, or will the property freely.

Ownership interest in real property that lasts only for the duration of a specified person's life (the measuring life). When that person dies, property passes to the remainderman.

Co-ownership with equal shares, right of survivorship (deceased owner's share passes to survivors automatically), and the four unities: Time, Title, Interest, Possession.

Co-ownership where each owner holds a separate, undivided interest that can be unequal, sold, mortgaged, or willed independently. No right of survivorship — interests pass to heirs.

California marital property system — all property acquired during marriage belongs equally (50/50) to both spouses regardless of who earned it. Separate property rules apply to pre-marital assets.

California law protecting a portion of primary residence equity from forced sale by unsecured creditors. Provides automatic protection of $300,000-$600,000 depending on county median home price.

A non-possessory right to use another person's land for a specific, limited purpose. Does not give ownership. Common types: utility easements, access easements, drainage easements.

An easement that benefits an adjacent parcel of land (dominant tenement) and burdens the neighboring parcel (servient tenement). Runs with the land — automatically transfers with property sale.

An easement benefiting a specific person or entity (not land). Examples: utility company easements for power lines, cable. Does not run with land. Personal to the holder.

When a structure (fence, building overhang, driveway) physically extends beyond a property's legal boundaries onto a neighbor's property. Can be addressed by survey, agreement, or quiet title action.

Acquiring legal title to land by openly, notoriously, continuously, hostilely possessing another's land for 5 years in California while paying property taxes. Must meet all five elements.

The constitutional power of government to take private property for public use with payment of just (fair market value) compensation. The process is called condemnation.

A private limitation on how property may be used, contained in the deed itself. Also known as CC&Rs (Covenants, Conditions & Restrictions). Runs with the land and binds all future owners.

Government police power regulation controlling land use — divides a jurisdiction into zones (residential, commercial, industrial, agricultural) with rules about density, setbacks, and allowed uses.

Official government permission to deviate from current zoning requirements in a specific case. Granted when strict compliance would cause undue hardship not shared by surrounding properties.

A lien that attaches to ALL of a debtor's property (real and personal) within the jurisdiction. Examples: IRS income tax liens, judgment liens from court cases.

A lien that attaches to ONE specific property. Examples: mortgages, trust deeds, mechanic's liens, property tax liens. Has priority only over that particular property.

A lien on real property filed by contractors, subcontractors, or material suppliers who weren't paid for work or materials. Must be filed within 20-90 days of completion depending on their role.

Most common California deed — grantor warrants they own the property being conveyed and haven't previously conveyed it to others or created undisclosed encumbrances. Less protection than warranty deed.

Transfers whatever interest the grantor has — no warranties of title at all. If grantor has nothing, nothing transfers. Used for family transfers, correcting title errors, and removing unwanted interests.

Filing a deed or other document with the county recorder's office to create constructive (public) notice. Priority is generally determined by recording date. Protects against subsequent claims.

Legal presumption that everyone has notice of information properly recorded in public records. You cannot claim ignorance of recorded documents — the law treats you as knowing.

Direct, firsthand knowledge of a fact — through personal observation, direct communication, or other means. A higher standard than constructive notice. "I personally knew about this."

The chronological sequence of all historical ownership transfers for a specific parcel — from original grant to current owner. A clear, unbroken chain is essential for marketable title.

Any claim, lien, encumbrance, or defect that casts doubt on the validity of ownership. Examples: unsatisfied liens, disputed boundary lines, potential heir claims, recording errors.

Recorded notice of pending litigation affecting title to real property. Creates constructive notice warning buyers and lenders of the lawsuit. Can effectively prevent sale or refinancing.

Court proceeding filed to establish clear, undisputed ownership by removing all adverse claims and clouds on title. The lawsuit "quiets" all competing claims.

Document from the trustee returning legal title to the borrower (trustor) after a trust deed loan is fully repaid. Must be recorded to clear the lien from title.

Insurance protecting against financial loss from defects in title discovered after closing. Owner's policy protects the buyer; lender's policy protects the lender. One-time premium at closing.

Pre-closing report showing the current state of title — ownership, all recorded liens and encumbrances, easements, and conditions that must be cleared before title insurance is issued.

Federal law (1968) prohibiting discrimination in housing based on seven protected classes: race, color, national origin, religion, sex, familial status, and disability (handicap).

Illegal fair housing violation — directing buyers toward or away from certain neighborhoods based on race, national origin, religion, or other protected class characteristics.

Illegal practice of inducing homeowners to sell by warning that members of a minority group are moving into the neighborhood, causing panic selling. Violates Fair Housing Act.

Illegal discriminatory practice of refusing to provide services (loans, insurance) to residents of certain geographic areas based on racial or ethnic composition of those neighborhoods.

California constitutional amendment (1978) limiting property tax to 1% of purchase price and restricting assessment increases to maximum 2% per year until property is sold and reassessed.

Chronological summary of all recorded documents affecting title to a specific property — deeds, mortgages, court judgments, liens. Used by attorneys to examine title in some states.

Professional measurement of property boundaries, location of improvements, and identification of easements and encroachments by a licensed surveyor. Creates a visual map of the parcel.

Recorded map filed with the county showing subdivision of land into lots, blocks, streets, and easements. Creates the legal description system for the subdivision (lot and block system).

Oldest land description system using compass directions (metes) and distances (bounds) from a starting point (POB — Point of Beginning), tracing the property perimeter.

Federal land description system dividing land using principal meridians/base lines into townships (6x6 miles), sections (1 sq. mile = 640 acres), and quarter sections (160 acres).