46 topics · Updated 2026-09-17
Length conversions to metric: one foot = 0.3048 meter; one yard = 0.9144 meter; one mile = 1.6093 kilometers or 1609 meters; one meter = 39 inches; one kilometer = 3281 feet, .62 miles, or 1000 meters.
Area conversions to metric: one square foot = 0.0929 sq. meter; one square yard = 0.836 sq. meter; one acre = 4068.8 sq. meters; one square mile = 259 hectares or 2.59 sq. km; one square meter = 10.76 sq. feet; one hectare = 2.47 acres or 10,000 sq. meters.
Community property is property owned by husband and wife. Ownership in severalty means sole ownership by one person. Tenancy in common is joint ownership by two or more with undivided interests (not necessarily equal) without right of survivorship.
Taking of private land for public use is accomplished through eminent domain under due process. Governmental land use planning and zoning are exercises of police power. Private restrictions on land may be created by private land use controls, written agreement, and general plan restrictions in subdivisions.
Mechanics' liens are created by statute and can take priority earlier than the date they are recorded (relating back to commencement of work). This distinguishes them from judgment liens.
Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period is deeded to the state.
An encumbrance is anything which affects or limits the title to real property, including liens, easements, and restrictions.
The chief distinguishing characteristic of real estate compared to personal property is that it is immovable.
An interest acquired by prescription is the right to use another's land (an easement), whereas adverse possession results in a possessory title.
When land with an easement appurtenant is sold, the buyer has the same right to the easement as the seller did, even if the deed fails to reference the easement, because the easement runs with the land.
The covenant of quiet enjoyment most directly relates to possession of real property, protecting the tenant or owner's right to undisturbed possession.
A township contains 36 sections numbered 1-36, each a one-mile square. Key figures allow calculation of parcel size within sections.
The system begins with base lines (horizontal) and meridians (vertical), creating a grid of ranges (vertical) and township lines (horizontal) six miles apart. Each square (township) is six miles per side and contains 36 square miles. Guide meridians and standard parallels every 24 miles correct for the earth's curvature (correction lines).
California has three sets of base lines and meridians: Humboldt (northwestern), Mt. Diablo (central), and San Bernardino (southern).
California follows the 'lien' theory, not the 'legal title' theory: a security instrument creates a lien that does not impair the owner's right to use, enjoy, sell, or further encumber the property. The 'Title Period' (1859–1933) treated deeds of trust as transferring legal title; the 'Lien Period' (1933–present) treats them as mortgages with a power of sale.
Bank of Italy II (1933) reversed Koch v. Briggs, holding deeds of trust are functionally mortgages with power of sale. Later cases (Monterey S.P. Partnership 1989; Aviel v. Ng 2008; Cornelison v. Kornbluth 1975) confirm a deed of trust is a lien and title passes to the trustee only as necessary to execute the trust.
A deed has no effect unless delivered, and delivery means more than handing over the document—the grantor must intend to pass title immediately. Legal delivery can occur without physically handing the deed to the grantee if the grantor has the requisite intent. Intent is absent where a grantor tells the grantee not to record until the grantor's death, or in cross-deeds placed in a joint safe-deposit box for the survivor to record.
The law presumes valid delivery if the deed is in the grantee's possession or recorded, but this is rebuttable. A deed may be entrusted to an escrow agent to deliver upon conditions. By statute, a grant cannot be delivered to the grantee conditionally—delivery to the grantee is absolute and any unexpressed condition is discharged. Conditions should be withheld until satisfied, incorporated in the deed, or placed in escrow.
A deed is presumed delivered as of its dated date, which is often different from its recorded date. Ordinarily a deed must be accepted by the grantee to take effect, except when the grantee is a minor or mentally incompetent. Acceptance may be shown by acts, words, or conduct. A deed to a governmental entity must ordinarily contain a certificate of acceptance.
Before closing, the escrow holder audits the file (Cash Reconciliation Statement) and confirms principals complied. The title company or title insurer 'dates down' the seller's title to date, then the escrow holder requests recording provided no change in title occurred since the Preliminary Report. After confirming recording, the escrow holder prepares closing/settlement statements (typically a HUD-1), disburses all funds, and delivers instruments to the parties entitled.
In Southern California, joint/bilateral escrow instructions are typically prepared and submitted after the principals execute the purchase agreement, usually accompanied by an initial earnest money deposit that is conditionally delivered. In Northern California, unilateral instructions are typically prepared a few days before close; the buyer's earnest money is delivered without instructions or conditional delivery, so escrow is not opened until the unilateral instructions are signed and conditional delivery occurs.
For a home purchase, mutual escrow instructions (bilateral or unilateral) should include: purchase price and terms; agreement as to mortgages; how buyer's title is to vest; matters of record subject to which buyer acquires title; inspection reports to be delivered through escrow; proration adjustments; date of buyer's possession; instruments to be signed and recorded; disbursements including fees, costs, charges and who pays/receives them; and the date of closing.
A Preliminary Report is ordered from the title company selected by the buyer. The escrow holder (which may be the same entity as the title company) examines it for items not contemplated in the instructions. The seller typically must clear or remove such items, and they must be brought to the buyer for information and instructions. The Preliminary Report, with the principals' and lender's instructions, becomes the basis on which title insurance coverage is issued.
The escrow holder obtains demands or beneficiary statements from lenders of record. A 'Demand for Pay-off' is obtained if an existing loan is to be paid in part or full through escrow. A 'Beneficiary Statement' is obtained if the buyer is purchasing 'subject to' or 'assuming' an existing loan. Purchasing 'subject to' should not occur without the buyer receiving independent professional advice on the consequences.
Structural pest control and other reports (plumbing, roofing) are delivered to the escrow holder, who obtains necessary approvals and holds associated funds for delivery to the proper party. If the buyer requires new financing, the escrow holder obtains the buyer's execution of loan documents and must satisfy lender instructions before using lender funds to close. The escrow holder accepts/delivers fire insurance policies, transfers or establishes coverage, and makes prorations as instructed.
A tenant's rent obligation is generally 'independent' - the tenant must pay even if the landlord fails other obligations. However, breach of a material covenant may abate or terminate rent. In residential leases, breach of the non-waivable implied warranty of habitability allows the tenant to remain and abate rent in proportion to impairment of use.
Rent is consideration for possession, use, and enjoyment. The obligation arises from either the lease's express terms (privity of contract) or mere occupancy where no gift is intended (privity of estate). Through privity of contract, a tenant is bound even if never taking possession. Rent includes 'charges equivalent to rent' and need not be currency.
Absent a course of dealing or lease provision to the contrary, rent is due at the END of each holding period and must be delivered to the demised premises. However, most commercial and residential leases require rent in advance at a specific address.
Payment by check suspends the obligation until presented to the bank. If the tenant knowingly has insufficient funds, the obligation is not suspended and the landlord may sue or evict immediately. A late charge is enforceable only if reasonably related to anticipated administrative costs and lost interest; a late payment alone generally does not justify forfeiture of the lease.
If leased premises are taken by eminent domain, the lease terminates as of the date of taking (unless otherwise provided) and rent ceases. If only a portion is taken and the remainder is still usable, the tenant may still owe rent. Parties may provide for proportional abatement and define what percentage constitutes a complete taking.
A broker owes duties of loyalty and confidentiality and is prohibited from personally profiting from the agency except through agreed compensation. Courts equate the agent's duty to that of a trustee to a beneficiary.
A broker owes fair dealing and full disclosure of all material facts even to the other party to whom the broker owes no fiduciary duty. This includes an affirmative duty to conduct a reasonably competent inspection of residential property.
After Easton, Civil Code § 2079 codified the broker's duty to conduct a diligent visual inspection of 1-4 unit residential property and disclose material facts. The inspection excludes inaccessible areas and off-site/public record matters.
Civil Code §§ 1102-1102.17 require sellers of 1-4 unit residential property to complete and deliver a comprehensive disclosure statement. These provisions are mandatory and cannot be waived; certain exceptions apply (e.g., foreclosure sales).
Licensees participating in discriminatory practices face liability under fair housing statutes. Providing information on a buyer's race, color, sex, religion, ancestry, or national origin—even when requested—violates FEHA.
An agent cannot acquire secret interests adverse to the principal or make secret profits. An agent who conceals interest or misrepresents purchase price to pocket the difference must disgorge secret profits.
Salespersons and broker associates are subject to the same fiduciary duties as the broker. They must disclose all material information affecting the principal's decision. The broker may be disciplined for their acts even without awareness.
A fiduciary must disclose all material facts relating to the agency, including relationships (blood/marital) with buyers that suggest indirect interest. A licensee acting as a principal must disclose licensure.
An agent must use reasonable care and skill (utmost care depending on the situation), obey directions, and render an accounting. The reasonable care standard applies to the party who is not the agent's principal.
California courts impose on the broker the same undivided loyalty as a trustee owes a beneficiary. A broker guilty of violating these principles is not entitled to any profit and may lose expenses too. The duty to counsel extends beyond disclosure.
Insurance Code § 11589.5 prohibits insurers of licensees from excluding coverage for breaches of the disclosure duty under Civil Code § 2079 et seq. Insurers may exclude coverage for dishonest, fraudulent, criminal, or malicious acts.
The Fed uses four basic tools to monitor and control the supply of money and credit.
The Federal Reserve Bank System is the nation's central bank regulating money and credit.
FIRREA reorganized federal supervisory bodies for depository institutions.
Real estate plays four major roles in the national economy.
Residential and commercial values experienced major swings through the mortgage meltdown.
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