Reference / Glossary

Glossary

The language of California real estate, from accession to zoning.

251 terms

A

Accounting
Accurately safeguarding, tracking, and reporting money or property entrusted to the agent.
Fiduciary duties and duties to others
Accretion
Gradual addition of soil through natural water action.
Water, environmental hazards, and special lands
Accrued depreciation
The loss in improvement value from all relevant causes as of the appraisal date.
Cost, depreciation, and replacement
Acknowledgment
A formal verification before an authorized officer that the signer executed the instrument.
Deeds, delivery, recording, and vesting
Actual authority
Authority the principal intentionally gives the agent or allows the agent to believe exists.
Agency relationships and authority
Adjustable-rate mortgage
A mortgage whose interest rate changes under a stated index, margin, and adjustment structure.
Loan structures and government programs
Adjusted basis
Tax basis after permitted increases and decreases, such as capital improvements and depreciation.
Transfer taxes, gain, withholding, and prorations
Adjustment
A supported modification to a comparable's price to account for a relevant difference from the subject.
Sales comparison and market evidence
Administrator
A court-appointed personal representative where an executor does not serve.
Probate, court sales, and other transfers
Advance fee
A fee claimed, demanded, charged, received, or collected before fully completing the contracted services within the governing statutory definition.
Listings, buyer representation, and advance fees
Adverse action
A credit decision such as denial that can trigger required notices explaining the decision and related rights.
Credit law and loan origination
Agency confirmation
Identification of the actual representation relationships in a particular transaction.
Agency disclosure, dual agency, and conflicts
Agency coupled with an interest
Agency associated with a legally sufficient interest in the subject of the agency, beyond earning compensation.
Compensation and the end of an agency
Agency disclosure
The statutory explanation of possible representation relationships and associated duties.
Agency disclosure, dual agency, and conflicts
Agent
A person authorized to represent a principal in dealings with third persons.
Agency relationships and authority
Amount realized
The proceeds measure used to determine gain, generally reduced by qualifying selling expenses.
Transfer taxes, gain, withholding, and prorations
Annual percentage rate
A standardized annualized measure of credit cost including interest and specified finance charges.
Loan fundamentals and the mortgage market
Anticipation
The principle that present value reflects expected future benefits.
Value and the principles behind it
Antitrust
Laws protecting competition from prohibited agreements and exclusionary practices.
Ethics, advertising, and technology
Appropriative right
A water use right based on lawful appropriation rather than merely adjoining a watercourse.
Water, environmental hazards, and special lands
Appurtenance
A right or improvement belonging to and ordinarily passing with another property.
Property, rights, and fixtures
As-is sale
A sale addressing the property's condition or repair obligations without eliminating duties to disclose known material facts.
Property disclosures, inspections, and reports
Assessor's parcel number
An identifier used by a county assessor to track property for assessment purposes.
Legal descriptions and land measurement
Assignment
A transfer of contractual rights to another person.
Performance, contingencies, and remedies
Audit trail
A retained record of actions and changes that supports verification of a transaction's history.
Ethics, advertising, and technology
Avulsion
A sudden perceptible change in land or a watercourse caused by water action.
Water, environmental hazards, and special lands

B

Balloon payment
A substantial remaining balance due at maturity after scheduled payments do not fully amortize the debt.
Loan structures and government programs
Base-year value
The property-tax value established under Proposition 13, generally from the 1975 assessment or a later reassessable ownership change or new construction.
Transfer taxes, gain, withholding, and prorations
Beneficiary
The party entitled to the secured obligation under a deed of trust, ordinarily the lender or its successor.
Notes, security instruments, and default
Beneficiary ledger
A separate record showing receipts, disbursements, and balance belonging to an individual owner or transaction.
Trust funds and accountable money handling
Bilateral contract
An agreement formed by an exchange of promises.
Contract formation and enforceability
Blanket loan
A loan secured by more than one parcel or property.
Loan structures and government programs
Blind advertisement
An advertisement that fails to adequately disclose the advertiser's required professional identity.
Ethics, advertising, and technology
Blockbusting
Inducing transactions for profit by exploiting fears about entry of protected groups into an area.
Fair housing and service across communities
Boot
Non-like-kind value received in an exchange that can trigger recognition of gain.
Transfer taxes, gain, withholding, and prorations
Brownfield
Property whose reuse or redevelopment may be complicated by actual or potential contamination.
Water, environmental hazards, and special lands
Bulk sale
A sale outside the ordinary course of business of more than half the seller's inventory and equipment by value, subject to statutory coverage and exclusions.
Commercial property and specialty transactions
Business opportunity
A business enterprise or opportunity whose transfer can involve assets, goodwill, and leasehold rights.
Commercial property and specialty transactions
Buyer-broker representation agreement
A written contract authorizing a brokerage to provide specified licensed services to a buyer.
Listings, buyer representation, and advance fees

C

Capitalization rate
The rate relating one year's net operating income to property value in direct capitalization.
Income, capitalization, and financial analysis
Cash-on-cash return
Annual before-tax cash flow divided by the investor's initial cash investment under the stated convention.
Income, capitalization, and financial analysis
CC&Rs
Covenants, conditions, and restrictions establishing private limits and obligations affecting property.
Public and private land use controls
Chain of title
The sequence of recorded ownership transfers affecting a property.
Title insurance and escrow
Closing Disclosure
The standardized disclosure of final loan terms and costs for covered mortgages before consummation.
Credit law and loan origination
Cloud on title
An apparent claim or defect that creates uncertainty about ownership or its quality.
Title insurance and escrow
Commingling
Improperly mixing entrusted funds with the broker's personal or business funds.
Trust funds and accountable money handling
Commission
Compensation for brokerage services under a negotiated agreement.
Compensation and the end of an agency
Comparable sale
A transaction involving a sufficiently similar property that provides relevant evidence of value.
Sales comparison and market evidence
Concurrent conditions
Obligations intended to be performed at the same time.
Performance, contingencies, and remedies
Condition precedent
An event that must occur before a particular contractual duty becomes due.
Performance, contingencies, and remedies
Conditional use permit
Approval of a use allowed conditionally under the zoning framework when required findings and conditions are satisfied.
Public and private land use controls
Confidentiality
The duty to protect a client's nonpublic information except when disclosure is authorized or legally required.
Fiduciary duties and duties to others
Conforming loan
A loan meeting applicable secondary-market standards, including the relevant loan-size limit.
Loan structures and government programs
Conservation easement
A legally enforceable interest restricting land use to protect identified conservation purposes.
Water, environmental hazards, and special lands
Consideration
A bargained-for legal benefit or detriment supporting a contract.
Contract formation and enforceability
Constructive fraud
A breach of duty in a confidential or fiduciary relationship that can be fraudulent without deliberate dishonesty.
Fiduciary duties and duties to others
Constructive notice
Notice the law attributes to a person, including from properly recorded instruments.
Deeds, delivery, recording, and vesting
Consumer Recovery Account
A statutory source of limited recovery for eligible uncompensated losses caused by licensee fraud or trust fund conversion.
Licensing, supervision, and consumer protection
Continuing education
Approved coursework required for renewal after initial licensing.
Licensing, supervision, and consumer protection
Contribution
The principle that a component's value depends on its effect on the property's total value.
Value and the principles behind it
Control record
The chronological account record of all receipts and disbursements and its running balance.
Trust funds and accountable money handling
Conventional loan
A mortgage not insured or guaranteed by a government mortgage program such as FHA or VA.
Loan structures and government programs
Conversion
Unauthorized use or appropriation of another person's funds or property.
Trust funds and accountable money handling
Cost
The expenditure required to acquire, produce, or construct an asset.
Value and the principles behind it
Counteroffer
A proposed agreement that changes the offered terms and requires acceptance.
Contract formation and enforceability

D

Debt service coverage ratio
Net operating income divided by annual debt service.
Income, capitalization, and financial analysis
Debt-to-income ratio
Qualifying monthly debt obligations divided by qualifying gross monthly income.
Loan fundamentals and the mortgage market
Decedent
A person who has died.
Probate, court sales, and other transfers
Deficiency
Debt remaining after application of foreclosure proceeds, with collection limited by applicable law.
Notes, security instruments, and default
Delivery
The grantor's act manifesting intent that a deed become presently operative.
Deeds, delivery, recording, and vesting
Discount point
A charge equal to one percent of the loan amount, commonly paid to obtain a lower interest rate.
Loan fundamentals and the mortgage market
Documentary transfer tax
A tax imposed under applicable law on specified instruments transferring real property.
Transfer taxes, gain, withholding, and prorations
Dominant tenement
The parcel benefited by an appurtenant easement.
Easements, liens, and encumbrances
Dual agency
Representation of both seller and buyer by the same brokerage in the same transaction.
Agency disclosure, dual agency, and conflicts

E

Easement appurtenant
An easement benefiting a parcel of land and burdening another parcel.
Easements, liens, and encumbrances
Easement in gross
An easement benefiting a person or entity rather than a dominant parcel.
Easements, liens, and encumbrances
ECOA
The Equal Credit Opportunity Act, prohibiting discrimination in covered credit decisions.
Credit law and loan origination
Economic life
The period during which an improvement contributes value to the property.
Cost, depreciation, and replacement
Effective age
An age estimate reflecting condition and utility rather than merely time since construction.
Cost, depreciation, and replacement
Effective gross income
Potential income less vacancy and collection losses, plus applicable other income.
Income, capitalization, and financial analysis
Eminent domain
The power to acquire private property for public use subject to constitutional compensation requirements.
Public and private land use controls
Encroachment
A physical intrusion over a boundary onto another property.
Easements, liens, and encumbrances
Encumbrance
A claim, right, or burden affecting property that can limit title, use, or value.
Easements, liens, and encumbrances
Escheat
Transfer to the state under applicable law when property has no legally entitled owner or successor.
Public and private land use controls
Escrow
A conditional arrangement in which a third party holds money or instruments for delivery when specified conditions are met.
Title insurance and escrow
Estate
The nature, extent, and duration of a person's interest in real property.
Estates and forms of ownership
Estoppel certificate
A tenant's statement confirming specified lease facts on which a purchaser or lender may rely.
Commercial property and specialty transactions
Exclusive agency listing
A listing giving one broker representation while generally preserving an owner's independent-sale exception.
Listings, buyer representation, and advance fees
Exclusive right to sell
A listing generally providing compensation when a sale occurs during the term regardless of who produces the buyer, subject to its terms.
Listings, buyer representation, and advance fees
Executor
A personal representative nominated by a will and appointed through the required process.
Probate, court sales, and other transfers
External obsolescence
Loss caused by influences outside the property.
Cost, depreciation, and replacement

F

Factored base-year value
A property's base-year value adjusted by the annual California inflation factor, with each annual increase limited to 2 percent.
Transfer taxes, gain, withholding, and prorations
Familial status
Protection involving households with children under 18, pregnancy, and people obtaining custody, subject to applicable law.
Fair housing and service across communities
Fee simple
The broadest ordinarily available ownership estate, potentially unlimited in duration.
Estates and forms of ownership
Fiduciary
A person who must act with heightened loyalty and care for another within a relationship of trust.
Fiduciary duties and duties to others
Fiduciary-transfer exemption
A statutory TDS exemption for specified administration transfers, subject to an exception for certain natural-person trustees of revocable trusts.
Property disclosures, inspections, and reports
Fixture
An item that was personal property and has become part of the real property through attachment and related circumstances.
Property, rights, and fixtures
Functional obsolescence
Loss caused by shortcomings or excesses in design, layout, or utility within the property.
Cost, depreciation, and replacement

G

General agent
An agent authorized to handle a continuing range of activities in a particular business.
Agency relationships and authority
General plan
A local government's comprehensive statement of long-term development policies.
Public and private land use controls
Grant deed
A deed conveying an interest with the limited implied covenants associated with the word grant.
Deeds, delivery, recording, and vesting
Grantee
The person receiving an interest in real property by deed.
Deeds, delivery, recording, and vesting
Grantor
The person conveying an interest in real property by deed.
Deeds, delivery, recording, and vesting
Gross adjustment
The sum of the absolute amounts of adjustments to a comparable.
Sales comparison and market evidence
Gross rent multiplier
A ratio of sale price to gross rent for a specified period.
Income, capitalization, and financial analysis

H

Habitability
The legally required condition of residential premises suitable for human occupancy.
Residential property management
Highest and best use
The reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive.
Value and the principles behind it

I

Informed consent
Agreement made with knowledge of the material facts and implications requiring consent.
Agency disclosure, dual agency, and conflicts
Interest
The charge for using borrowed money, ordinarily calculated from a rate and outstanding principal.
Loan fundamentals and the mortgage market
Intestate
Dying without a valid will disposing of the property in question.
Probate, court sales, and other transfers

J

Joint tenancy
Concurrent ownership expressly created with equal shares and a right of survivorship, subject to severance.
Estates and forms of ownership
Just cause
A legally recognized reason required for certain tenancy terminations under applicable state or local law.
Residential property management

L

Land sale contract
A financing arrangement in which the seller retains legal title while the buyer performs installment obligations.
Purchase agreements, options, leases, and notes
Latent defect
A defect not readily apparent through ordinary observation.
Property disclosures, inspections, and reports
Leasehold
A possessory interest for a duration or tenancy relationship less than a freehold estate.
Estates and forms of ownership
Legal description
A description sufficient to identify the particular real property involved in an instrument.
Legal descriptions and land measurement
Lender's policy
Title insurance protecting the lender's insured security interest under the policy terms.
Title insurance and escrow
Lender/Purchaser Disclosure Statement
California's disclosure to a covered prospective lender or note purchaser addressing the loan, borrower, collateral, and investment terms.
Credit law and loan origination
Lessee
The party receiving a leasehold right of possession.
Purchase agreements, options, leases, and notes
Lessor
The party granting a leasehold right of possession.
Purchase agreements, options, leases, and notes
Leverage
The use of borrowed funds to acquire or hold an investment, magnifying effects on the owner's equity.
Income, capitalization, and financial analysis
Licensed act
An activity for which California requires a real estate license unless a statutory exemption applies.
Licensing, supervision, and consumer protection
Lien
A financial claim against property that secures an obligation.
Easements, liens, and encumbrances
Life estate
An estate measured by the life of a designated person.
Estates and forms of ownership
Liquidated damages
An agreed amount or measure of damages subject to enforceability requirements.
Performance, contingencies, and remedies
Listing agreement
A contract employing a brokerage to perform specified services for a seller.
Listings, buyer representation, and advance fees
Loan Estimate
The early standardized disclosure of terms and estimated costs for most covered closed-end real-property mortgage loans.
Credit law and loan origination
Loan-to-value ratio
Loan amount divided by the property's applicable value for the lending calculation.
Loan fundamentals and the mortgage market
Loyalty
Putting the principal's interests ahead of the agent's conflicting interests within the agency.
Fiduciary duties and duties to others

M

Management agreement
The contract defining a property manager's authority, duties, compensation, and relationship with the owner.
Residential property management
Market value
An opinion of the probable exchange value under a defined set of market conditions as of a specified date.
Value and the principles behind it
Material amendment
A significant change to a required disclosure that can trigger a buyer's statutory termination opportunity.
Property disclosures, inspections, and reports
Material fact
Information significant to a reasonable person's decision about the property's value or desirability.
Fiduciary duties and duties to others
Metes and bounds
A boundary description using directions, distances, and calls to monuments or other boundaries.
Legal descriptions and land measurement
Misrepresentation
A false or misleading statement of fact that may create liability depending on the circumstances.
Ethics, advertising, and technology
Monument
A natural or artificial reference used to locate a boundary or survey point.
Legal descriptions and land measurement
Mortgage insurance
Insurance protecting the lender against specified losses from borrower default.
Loan structures and government programs
Mortgage Loan Disclosure Statement
California's borrower disclosure for covered broker-arranged real-property loans, including loan costs and broker compensation.
Credit law and loan origination
Mortgage loan originator
A person performing covered residential application or loan-term activities for compensation or gain under applicable law.
Credit law and loan origination

N

Natural Hazard Disclosure
Disclosure of whether property is within specified mapped hazard areas.
Property disclosures, inspections, and reports
Negligent misrepresentation
An actionable false assertion made without reasonable grounds for believing it true.
Fiduciary duties and duties to others
Net adjustment
The algebraic total of positive and negative adjustments to a comparable.
Sales comparison and market evidence
Net lease
A lease allocating specified property expenses to the tenant in addition to base rent.
Commercial property and specialty transactions
Net listing
An arrangement in which the broker's compensation is the amount above the owner's specified net, subject to fiduciary obligations.
Listings, buyer representation, and advance fees
Net operating income
Property operating income after operating expenses but before debt service and owner income taxes.
Income, capitalization, and financial analysis
Notice of default
The recorded notice that begins California's statutory nonjudicial foreclosure sequence, after applicable pre-recording requirements.
Notes, security instruments, and default
Novation
An agreed substitution of a new obligation or party that discharges the replaced obligation.
Performance, contingencies, and remedies

O

Open listing
A nonexclusive brokerage employment agreement allowing competing brokers and the owner to seek a buyer.
Listings, buyer representation, and advance fees
Optionee
The person holding the choice to exercise an option.
Purchase agreements, options, leases, and notes
Optionor
The person granting another a contractual right to buy or lease on specified terms.
Purchase agreements, options, leases, and notes
Ordinary wear and tear
Deterioration from normal use that is not chargeable to the tenant as damage.
Residential property management
Ostensible authority
Authority a principal causes a third person reasonably to believe the agent possesses.
Agency relationships and authority
Overlying right
A right to reasonable beneficial use of groundwater on land overlying the basin, subject to applicable law.
Water, environmental hazards, and special lands
Owner's policy
Title insurance protecting the named owner's insured interest under the policy terms.
Title insurance and escrow

P

Paired sales analysis
Comparison of sufficiently similar sales to isolate the market effect of a differing feature.
Sales comparison and market evidence
Partition
A proceeding to divide cotenancy property or arrange a sale and distribution of proceeds.
Probate, court sales, and other transfers
Pay-or-quit notice
A notice demanding payment of specified overdue rent or surrender of possession within the applicable statutory period.
Residential property management
Percentage lease
A lease under which rent includes an amount calculated from the tenant's sales under agreed terms.
Commercial property and specialty transactions
Personal property
Property that is not classified as real property, including movable goods and many intangible rights.
Property, rights, and fixtures
Phishing
A deceptive communication designed to obtain credentials, money, or sensitive information.
Ethics, advertising, and technology
Physical deterioration
Loss caused by wear, damage, aging, or decay of physical components.
Cost, depreciation, and replacement
Plottage
An increase in value created by combining parcels beyond their separate aggregate value.
Value and the principles behind it
Point of beginning
The starting location of a described boundary traverse.
Legal descriptions and land measurement
Police power
Government authority to regulate for public health, safety, welfare, and related legitimate purposes.
Public and private land use controls
Potential gross income
The income a property could generate at full occupancy and collection under the stated assumptions.
Income, capitalization, and financial analysis
Power of attorney
An instrument authorizing an attorney-in-fact to act for a principal within stated powers.
Agency relationships and authority
Preliminary title report
An offer to issue a title policy subject to stated requirements, exceptions, and conditions.
Title insurance and escrow
Preventive maintenance
Scheduled work intended to reduce failure, damage, and larger future repairs.
Residential property management
Price
The amount asked, offered, or actually paid in a transaction.
Value and the principles behind it
Principal
A person who authorizes another to act on that person's behalf.
Agency relationships and authority
Probate
The legal process for administering a deceased person's estate and distributing property as required.
Probate, court sales, and other transfers
Procuring cause
The effective cause that produces a transaction, evaluated under the applicable agreement and facts.
Compensation and the end of an agency
Promissory note
The written promise to repay debt under stated terms.
Notes, security instruments, and default
Proration
Allocation of a periodic expense or income between parties according to time or another agreed basis.
Title insurance and escrow
Protection clause
A contract provision that may preserve compensation rights for specified transactions after expiration.
Compensation and the end of an agency
Public report
A DRE disclosure document for a regulated subdivision or timeshare offering, not an investment endorsement.
Commercial property and specialty transactions
Public trust
The doctrine under which certain lands and waters are held for public uses such as navigation, commerce, fishing, and related purposes.
Water, environmental hazards, and special lands
Puffing
Promotional opinion or exaggeration distinguishable from a concrete factual claim.
Ethics, advertising, and technology

Q

Quitclaim deed
A deed transferring whatever present interest the grantor has without grant-deed implied covenants.
Deeds, delivery, recording, and vesting

R

Ratification
A principal's informed adoption of a previously unauthorized act.
Agency relationships and authority
Ready, willing, and able buyer
A buyer prepared to agree to the seller's authorized terms and financially capable of performing.
Compensation and the end of an agency
Real property
Land, things affixed to it, appurtenant rights, and items classified as immovable by law.
Property, rights, and fixtures
Realized gain
The excess of amount realized over adjusted basis.
Transfer taxes, gain, withholding, and prorations
Reasonable accommodation
A necessary and reasonable change to a policy, practice, rule, or service to provide equal housing opportunity to a person with a disability.
Fair housing and service across communities
Reasonable modification
A necessary physical alteration that enables a person with a disability to use and enjoy housing.
Fair housing and service across communities
Recognized gain
Gain included in taxable income after applicable exclusions or deferrals.
Transfer taxes, gain, withholding, and prorations
Reconciliation
Evaluation of the reliability and relevance of value indications to reach a final conclusion.
Sales comparison and market evidence
Reconveyance
The release of a deed-of-trust security interest through the applicable document and procedure.
Notes, security instruments, and default
Redlining
Discriminatory denial or restriction of housing-related credit or services based on an area's protected-group composition.
Fair housing and service across communities
Reinstatement
Curing specified defaults and costs to restore the loan without paying the entire accelerated principal.
Notes, security instruments, and default
Remainder
A future estate in another person that becomes possessory after the preceding estate ends.
Estates and forms of ownership
Rent roll
A schedule of rental units or spaces, tenants, lease terms, rents, and related occupancy information.
Commercial property and specialty transactions
Renunciation
An agent's withdrawal from the agency.
Compensation and the end of an agency
Replacement cost
Current cost of a substitute improvement with equivalent utility using contemporary materials and methods.
Cost, depreciation, and replacement
Reproduction cost
Current cost of constructing a duplicate of the existing improvement.
Cost, depreciation, and replacement
Rescission
A statutory right to cancel certain consumer credit transactions within the applicable period.
Credit law and loan origination
RESPA
The Real Estate Settlement Procedures Act, governing covered settlement practices, referrals, and servicing matters.
Credit law and loan origination
Responsible broker
The broker accountable for supervising affiliated salespersons and brokerage activities.
Licensing, supervision, and consumer protection
Restricted license
A license whose exercise is limited by conditions imposed by DRE.
Licensing, supervision, and consumer protection
Reverse mortgage
A loan allowing qualifying borrowers to access equity with repayment generally deferred until specified events.
Loan structures and government programs
Revocation
A principal's withdrawal of an agent's authority.
Compensation and the end of an agency
Right of first refusal
A right to an opportunity to purchase on stated terms if a specified sale trigger occurs.
Purchase agreements, options, leases, and notes
Riparian right
A right associated with qualifying land adjoining a natural watercourse to reasonable use of its natural flow.
Water, environmental hazards, and special lands
Roomer or boarder
A person living within a household; California's specified owner-occupied single-family exception is limited to no more than one such person.
Fair housing and service across communities

S

Secondary mortgage market
The market in which existing mortgages or mortgage-backed interests are bought and sold.
Loan fundamentals and the mortgage market
Secret profit
An undisclosed benefit an agent obtains through the agency in conflict with the principal's interests.
Agency disclosure, dual agency, and conflicts
Section
A nominal one-square-mile survey unit containing 640 acres before irregularities.
Legal descriptions and land measurement
Security agreement
An agreement creating a security interest in identified collateral, commonly personal property.
Purchase agreements, options, leases, and notes
Security deposit
Tenant money held for legally permitted obligations, regardless of the label used for the charge.
Residential property management
Self-dealing
An agent's participation in a transaction for the agent's own benefit while owing duties to a principal.
Agency disclosure, dual agency, and conflicts
Servient tenement
The parcel burdened by an easement.
Easements, liens, and encumbrances
Severalty
Ownership by one person or legal entity rather than concurrent owners.
Estates and forms of ownership
Severance
Detachment that changes an item from real property to personal property.
Property, rights, and fixtures
Single agency
Representation of one principal in a transaction rather than opposing principals.
Agency disclosure, dual agency, and conflicts
Situs
A property's location and the economic advantages or disadvantages associated with it.
Property, rights, and fixtures
Source of income
A protected characteristic under California law that includes qualifying public rental assistance.
Fair housing and service across communities
Special agent
An agent appointed for a particular transaction or narrowly defined purpose.
Agency relationships and authority
Specific performance
A court order requiring a party to perform the contractual promise.
Performance, contingencies, and remedies
Statute of frauds
Rules requiring specified agreements to be evidenced by a sufficient signed writing.
Contract formation and enforceability
Statutory redemption
A post-sale right to recover property by the required payment, available for specified judicial foreclosures but not an ordinary completed nonjudicial trustee sale.
Notes, security instruments, and default
Steering
Directing a person's housing choices based on protected characteristics rather than that person's stated needs.
Fair housing and service across communities
Subject property
The property interest being valued.
Sales comparison and market evidence
Subordinate assistance loan
A junior loan used for eligible acquisition costs with repayment terms set by the assistance program.
Loan structures and government programs
Subordination
An agreement or legal result placing one interest behind another in priority.
Easements, liens, and encumbrances
Substituted disclosure
Qualifying expert information used to satisfy specified disclosure content under statutory conditions.
Property disclosures, inspections, and reports
Substitution
The principle that comparable alternatives constrain what an informed buyer will pay.
Value and the principles behind it
Successor liability
A buyer's potential responsibility for specified obligations of a prior business owner, including tax amounts that should have been withheld from the purchase price.
Commercial property and specialty transactions
Supplemental assessment
An assessment reflecting a qualifying change in taxable property value between regular assessment cycles.
Transfer taxes, gain, withholding, and prorations

T

Tax clearance
An agency's confirmation addressing specified tax obligations, distinct from a private creditor's lien release or a bulk-sale notice.
Commercial property and specialty transactions
Tenancy in common
Concurrent ownership with undivided interests and no inherent right of survivorship.
Estates and forms of ownership
Tenant improvement
An alteration or buildout that adapts leased premises for a tenant's use.
Commercial property and specialty transactions
Tender
An offer to perform an obligation in accordance with its terms.
Performance, contingencies, and remedies
Testate
Dying with a valid will governing the property in question.
Probate, court sales, and other transfers
TILA
The Truth in Lending Act, a federal law governing disclosure of consumer credit costs and other credit protections.
Credit law and loan origination
Township
In the rectangular survey system, a nominal six-mile-square area containing 36 sections.
Legal descriptions and land measurement
Trade fixture
An item a tenant installs for a business purpose that may remain removable under applicable law and the lease.
Property, rights, and fixtures
Transfer Disclosure Statement
The statutory California form disclosing property condition in covered residential transfers.
Property disclosures, inspections, and reports
Trust funds
Money or other value received by a licensee on behalf of another in a licensed transaction.
Trust funds and accountable money handling
Trust shortage
A condition in which available entrusted funds are insufficient to satisfy amounts owed to their owners.
Trust funds and accountable money handling
Trustee
The party holding the limited powers conveyed by a deed of trust, including authorized reconveyance or sale.
Notes, security instruments, and default
Trustor
The borrower or property owner who gives a deed of trust as security.
Notes, security instruments, and default

U

Unenforceable
Not judicially enforceable because of a legal defense or unmet requirement.
Contract formation and enforceability
Unilateral contract
An agreement accepted by the requested performance rather than a return promise.
Contract formation and enforceability
Unlawful detainer
A court proceeding used to recover possession when the legal requirements for eviction are met.
Residential property management
Unlicensed assistant
A worker limited to permitted support activities who cannot perform work requiring a license.
Licensing, supervision, and consumer protection

V

Variance
Authorized relief from a zoning restriction based on qualifying property-specific circumstances.
Public and private land use controls
Vesting
The manner in which title is held by its owner or owners.
Deeds, delivery, recording, and vesting
Visual inspection
The reasonably competent and diligent observation required of agents in covered transactions, within its statutory scope.
Property disclosures, inspections, and reports
Void
Having no legal force from inception.
Contract formation and enforceability
Voidable
Subject to avoidance by a party whom the law protects.
Contract formation and enforceability

W

Withholding
A tax prepayment collected and remitted as required, distinct from final tax liability.
Transfer taxes, gain, withholding, and prorations