Your FREE California Real Estate Flashcards 2026 – 200+ Cards

Land, everything permanently attached to it (improvements and fixtures), and the bundle of legal rights of ownership.

Movable items not permanently affixed to land; everything that is not real property.

The most complete ownership — absolute, of unlimited duration, and freely transferable by deed or will.

A freehold estate lasting for the lifetime of a named person; it ends at death and cannot be willed.

A tenant's right to possess and use property for a term without owning it.

The rights of ownership: possession, use (enjoyment), exclusion, disposition, and control.

Personal property attached to real property so it becomes part of it and transfers with the land.

Tests for a fixture: Method of attachment, Adaptability, Relationship of parties, Intention, Agreement.

An article a business tenant attaches; it stays personal property and may be removed before the lease ends.

A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.

A use right benefiting an adjacent parcel that runs with the land.

A use right benefiting a person or company (such as a utility), not a parcel of land.

Any claim, lien, charge, or right that limits an owner's title.

An unauthorized intrusion of an improvement onto a neighbor's land, usually revealed by survey.

A monetary claim against property securing a debt; it can force a sale if unpaid.

Covenants, Conditions & Restrictions — private deed restrictions, often enforced by an HOA, that can be stricter than zoning.

Government's authority to regulate land for public health, safety, and welfare — zoning and building codes, with no payment to the owner.

Government's power to take private property for public use through condemnation, paying just compensation.

The reversion of property to the State of California when an owner dies with no will and no heirs.

The four government powers: Police power, Eminent domain, Taxation, Escheat.

Local police-power regulation dividing land into use districts; a variance permits a hardship deviation.

A legal description using distances (metes) and compass directions (bounds) from a point of beginning.

California law giving local governments control over the design and improvement of land subdivisions.

A unit of land area equal to 43,560 square feet.

Property acquired by a married couple or registered domestic partners during marriage, owned equally — a hallmark of California law.

Property a spouse owned before marriage or received during marriage by gift or inheritance.

California vesting combining equal community ownership with automatic transfer to the surviving spouse at death.

Sole ownership of property by one person or entity.

Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.

Co-ownership with no survivorship; each owner holds an undivided, willable share.

The feature by which a deceased co-owner's share passes automatically to the surviving co-owners.

Time, Title, Interest, and Possession — all required to create a valid joint tenancy.

California's usual deed; it carries two implied warranties — no prior conveyance and no undisclosed encumbrances by the grantor.

A deed conveying only whatever interest the grantor has, with no warranties; used to clear a cloud on title.

The party conveying title (typically the seller) who signs the deed.

The party receiving title (typically the buyer); the grantee does not sign the deed.

Title passes only when the grantor delivers the deed and the grantee accepts it — not on recording.

Entering a deed in the county recorder's public record, giving constructive notice and setting lien priority.

Notice the law presumes everyone has because a document is recorded or possession is visible.

Notice a person genuinely has from direct knowledge of a fact.

The recorded history of ownership of a parcel, established by a title search.

A policy protecting the insured against loss from title defects existing before the policy date, such as liens or forgery.

California Land Title Association owner's policy — the standard coverage protecting a buyer's equity.

American Land Title Association extended policy, commonly required by lenders to protect the loan.

A claim or defect that impairs marketable title until it is removed or cleared.

A tenancy-in-common or separate-property interest passes by the owner's will, or by intestate succession if there is no will.

The most probable price a property should bring in a competitive, open market under fair conditions — an opinion of value.

The actual price a property sold for, which may differ from market value.

An impartial, supported opinion of value by a licensed appraiser as of a specific date, following USPAP.

Uniform Standards of Professional Appraisal Practice — the rules an appraiser must follow.

A licensee's estimate of value from recent comparable sales to help price a listing — not an appraisal.

Estimates value by comparing the subject to recently sold similar properties; best for homes.

Land value plus the cost to rebuild improvements new, minus depreciation; best for new or special-use property.

Estimates value as net operating income ÷ capitalization rate; best for income property.

Effective gross income minus operating expenses, before any mortgage payment.

The rate of return on income property: NOI ÷ value. A higher cap rate implies more risk and lower value.

Weighing the three approach indications into one final opinion of value — not averaging them.

The legally permissible, physically possible, financially feasible, and most profitable use of a site.

A buyer pays no more than the cost of an equally desirable substitute property.

Value is maximized when a property fits in with its surroundings.

A modest home's value is supported upward by larger, more valuable nearby homes.

A higher-value home loses value when surrounded by lesser homes.

Value rises when demand exceeds supply and falls when supply exceeds demand.

A loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.

A loss in value from outdated design or features within the property.

A loss in value from negative influences outside the property, such as a nearby nuisance.

A quick value tool: value = monthly (or annual) rent × the gross rent multiplier.

The increase in value from combining adjacent parcels into one larger, more useful site (assemblage).

Mutual consent, consideration, a lawful object, and capable parties — and writing for real estate.

Requires contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.

A contract with no legal effect because it lacks an essential element.

A contract one party may rescind, such as one signed by a minor or obtained by fraud.

The standard California Association of REALTORS® form used as the residential purchase contract in most sales.

A buyer's good-faith deposit; in California it is handled as a trust fund.

A condition (financing, inspection, appraisal) that must be satisfied for a contract to move forward.

A response that rejects the original offer and proposes new terms, creating a new offer.

A court remedy compelling a defaulting party to complete the contract because real estate is unique.

A pre-agreed amount (often the deposit) a buyer forfeits on default, limited by California law on residential sales.

A contract employing a broker to find a buyer for the owner's property in exchange for compensation.

The listing broker earns the commission no matter who finds the buyer.

The broker earns the commission unless the owner sells the property themselves.

Only the broker who actually finds the buyer earns a commission.

The broker keeps any amount above the seller's set price — tightly restricted and discouraged in California.

A fiduciary relationship in which an agent represents a principal in dealings with third parties.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.

Representing both buyer and seller; legal in California only with the informed written consent of both parties.

California's required Disclosure Regarding Real Estate Agency Relationships — Disclose, Elect, Confirm.

The agent whose actions set in motion an unbroken chain of events leading to the sale, earning the commission.

The party (client) who hires and is represented by an agent.

A party an agent deals with but does not represent; owed honesty and fair dealing, not full fiduciary duties.

A buyer prepared to purchase on the seller's terms; producing one generally earns the commission.

A written authority making someone an attorney-in-fact to act for another, e.g., to sign documents.

Federal law banning housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.

Race, color, religion, national origin, sex, familial status, and disability.

California law barring business establishments, including brokerages, from discriminating against protected classes.

California law adding housing protections such as marital status, source of income, ancestry, sexual orientation, and gender identity.

California's Housing Financial Discrimination Act, prohibiting discriminatory mortgage lending (redlining).

Illegally guiding buyers toward or away from neighborhoods based on a protected class.

Inducing owners to sell by claiming a protected class is moving in, to profit from turnover — illegal.

A lender's illegal refusal to lend or insure in an area based on its racial or ethnic makeup.

A rule change a housing provider must allow for a person with a disability, such as permitting a service animal.

A physical change to a unit a person with a disability may make for accessibility.

Protection for households with children under 18 and pregnant persons.

Money belonging to others (such as earnest money) that a broker must safeguard separately from personal funds.

A separate account where a broker holds trust funds, with a required ledger and monthly reconciliation.

Improperly mixing a client's trust funds with the broker's own or business funds — a license-law violation.

Actually using a client's trust funds for the broker's own purposes — more serious than commingling.

California requires trust funds to be placed into escrow, the principal, or the broker's trust account generally by the next business day.

Competing brokers may not agree to fix commission rates; rates are always negotiable.

In a lease, the landlord is the lessor and the tenant is the lessee.

A lease in which the landlord pays the property's operating expenses.

A lease in which the tenant pays some or all property expenses in addition to rent.

A retail lease in which rent is tied to the tenant's sales.

A contract making a broker the owner's agent to manage, lease, and maintain a property.

A refundable tenant deposit subject to California limits and accounting and return rules.

Commissioner's Regulations on professional conduct and fair dealing that California licensees must follow.

California's mandatory seller disclosure of a property's condition and known defects for most 1–4 residential units (Civil Code §1102).

The statute requiring the TDS in most California sales of one-to-four residential units.

1984 case creating the agent's duty to conduct a diligent visual inspection and disclose what it reveals — now codified.

The form on which an agent reports the results of their diligent visual inspection of accessible areas.

California disclosure stating whether a property lies in a flood, fire, seismic, or other state hazard zone.

Statutory notice that a public registered-sex-offender database exists; the agent does not research it for the buyer.

Notice of a special tax for a Community Facilities District funding local infrastructure; not capped by Prop 13.

A California earthquake fault zone that must be disclosed, typically through the NHD.

A fact that would affect a reasonable buyer's decision or price; it must be disclosed.

A hidden physical defect not found by ordinary inspection; a known latent defect must be disclosed.

“Let the buyer beware” — now sharply limited in California by mandatory disclosure laws.

A property psychologically impacted by an event; California limits required disclosure of certain stigmas.

Federal rule for pre-1978 housing: disclose known lead paint, give the EPA pamphlet, allow a 10-day test window for sales.

The Residential Lead-Based Paint Hazard Reduction Act that created the federal lead-paint disclosure rule.

An odorless radioactive soil gas; the second-leading cause of lung cancer.

A hazardous fiber in old insulation and flooring; remove or encapsulate to control it.

Grows in damp areas; may require disclosure and remediation.

A tank that can leak and contaminate soil and groundwater, creating cleanup liability.

Federal law imposing liability for cleanup of hazardous-substance contamination.

Foreign Investment in Real Property Tax Act — requires withholding on sales by foreign sellers.

A buyer who receives the TDS after signing generally has a statutory right to cancel within a set period.

California requires disclosure of a death on the property only within the prior three years (with limits).

California's usual security instrument: the trustor conveys title to a neutral trustee for the lender (beneficiary).

In a deed of trust: the borrower (trustor), the neutral holder of title (trustee), and the lender (beneficiary).

The borrower's written promise to repay the debt that the deed of trust secures.

A two-party loan instrument pledging property as collateral; less common in California than the deed of trust.

Repaying a loan through regular principal-and-interest payments so the balance reaches zero by term's end.

The loan amount divided by the property's value or price; a higher LTV means more lender risk.

Insurance usually required on a conventional loan when the LTV exceeds 80%.

Prepaid interest paid at closing to lower the rate; one point equals 1% of the loan amount.

A loan not insured or guaranteed by the government; PMI applies above 80% LTV.

A loan insured by the Federal Housing Administration, allowing low down payments.

A loan guaranteed by the Department of Veterans Affairs for eligible veterans, often with no down payment.

Lets the lender demand the full balance upon default.

Requires the loan to be paid in full when the property is sold.

Lets the trustee conduct a nonjudicial foreclosure under a deed of trust.

California's common foreclosure by the trustee under a deed of trust's power of sale, without a court.

Federal law requiring settlement-cost disclosures and prohibiting kickbacks on federally related mortgage loans.

Federal Truth in Lending Act requiring disclosure of the cost of credit, including the APR.

Combined RESPA/TILA forms: Loan Estimate within 3 business days of application, Closing Disclosure 3 business days before closing.

A neutral third party that holds documents and funds and closes a California transaction once conditions are met.

Limits on excessive interest, with broad exemptions for licensed lenders and arranged loans.

Commission = sale price × commission rate; a $500,000 sale at 5% = $25,000.

Price = net ÷ (1 − commission rate); a $475,000 net at 5% = $475,000 ÷ 0.95 = $500,000.

LTV = loan amount ÷ value; an 80% LTV on a $500,000 home is a $400,000 loan.

Value = net operating income ÷ capitalization rate; $90,000 ÷ 0.09 = $1,000,000.

Divide square feet by 43,560; 43,560 sq ft = 1 acre, and 1 section = 640 acres.

Base property tax = assessed value × 1%; a $500,000 home = $5,000 a year before local add-ons.

Divide taxes, rent, or interest by days each party owns the property; the seller is usually charged through closing.

Area = length × width; a 150 ft × 290 ft lot = 43,500 square feet.

Percent of profit or loss = gain or loss ÷ the original (not the new) cost.

A county tax on transfers, commonly $1.10 per $1,000 of the sale price (plus any city tax).

The state agency that licenses and regulates California salespersons and brokers under the Real Estate Law.

California's licensing statute in Business & Professions Code Division 4, enforced by the DRE.

The DRE's administrative rules (Title 10, CCR) implementing the Real Estate Law.

The chief officer of the DRE who enforces the Real Estate Law and can discipline licensees.

Lets a person perform real estate acts for compensation only while employed by a responsible licensed broker.

Lets a person operate independently, employ salespersons, and be responsible for trust funds and supervision.

The broker who employs and supervises a salesperson and is accountable for their real estate conduct.

Three 45-hour college-level courses: Real Estate Principles, Real Estate Practice, and one approved elective.

A required 45-hour survey course covering ownership, agency, contracts, financing, and California license law.

A required 45-hour course on brokerage practice; since 2024 it must include fair-housing and implicit-bias content.

The third required 45-hour course — e.g., Appraisal, Property Management, Finance, or Legal Aspects.

150 multiple-choice questions in 3 hours, administered by the DRE.

70% — you must answer at least 105 of the 150 questions correctly.

200 multiple-choice questions over 4 hours; the broker needs more education and experience.

You must be at least 18 years old to be issued a California real estate license.

Electronic fingerprinting and a DRE honesty/criminal-history review required before licensure.

A DRE option to apply for the exam and license together (RE 435).

$100 to take the California salesperson exam — confirm the current amount on the DRE Fees page.

$350 for the original salesperson license — confirm on the DRE Fees page.

California real estate licenses are issued for a four-year term.

DRE-approved coursework a licensee must complete each four-year renewal cycle.

Includes separate 3-hour courses in Ethics, Agency, Fair Housing, Trust Fund Handling, and Risk Management, plus a 2-hour Implicit Bias course.

At least 18 of the 45 renewal hours must be in consumer-protection courses.

A required continuing-education course on recognizing and countering implicit bias in real estate.

A license may be renewed late within a two-year grace period by paying a late fee; otherwise it expires.

Brokers must keep a columnar trust-fund ledger and reconcile the trust account monthly.

A licensee's solicitation materials must include their DRE license identification number.

A separate NMLS endorsement a DRE licensee needs to originate residential mortgage loans.

A DRE-administered fund that can pay victims of certain licensee fraud who cannot collect a judgment.

The Commissioner may suspend or revoke a license for commingling, misrepresentation, or unlicensed activity.

A broker from another office who works with the listing broker, often the buyer's side of a deal.

Active members of the California State Bar are exempt from the pre-license course requirement.