Prohibited Conduct +15California · Real Estate · English

No escrow licensee may disseminate misleading statements or describe as an 'escrow' any transaction not fitting the Financial or Civil Code definition. An escrow holder may not pay fees (including gifts of merchandise or things of value) to brokers or others for referral of business. An escrow holder cannot disburse a broker's commission from escrow proceeds prior to closing. Escrow holders may not accept instructions containing blanks to be filled in after signing, nor permit additions, deletions, or alterations unless initialed by all principals who previously signed.

• ✓Escrow holders may not pay referral fees or gifts to brokers or others for business referrals
• ✓An escrow holder cannot disburse a broker's commission before the escrow closes
• ✓Escrow instructions may not contain blanks filled in after signing, and alterations require all previously signing principals to initial

At execution, escrow holders must deliver a copy of any escrow instruction, amended, or supplemental instruction to all principals executing them. Escrow instructions are privileged and confidential and may not be disclosed to non-principals. A real estate broker may not nominate an escrow holder as a condition precedent to a transaction but may suggest one if requested. The buyer generally selects the escrow holder and title insurance company.

• ✓Escrow holders must deliver copies of instructions to all principals at execution
• ✓Escrow instructions are privileged and confidential and may not be disclosed to non-principals
• ✓A broker may not require a particular escrow holder as a condition of the transaction, but may suggest one if requested; the buyer generally selects

Any provision in a residential lease executed after January 1, 1976, that modifies or waives certain tenant rights is void and unenforceable. These include: security deposit rights (CC 1950.5); limits on landlord entry (CC 1954); the right to assert future causes of action; the right to statutory notice; procedural litigation rights; the right to a habitable premises complying with all laws; and the landlord's duty of care to prevent injury or property damage.

• ✓Waivers of security deposit rights (CC 1950.5) and entry limits (CC 1954) are void
• ✓Waivers of the right to future causes of action and statutory notices are void
• ✓Waivers of habitability rights and the landlord's duty of care are void (post-1/1/1976)

A seller may extend credit to complete the purchase price via a junior purchase money note.

• ✓Seller carry backs are typically at a higher interest rate but subject to the first lender's approval
• ✓A seller carry back is a time-differential payment of the purchase price, not a loan or forbearance, and is by definition a purchase-money deed of trust or mortgage
• ✓Carry-back notes may be sold at a discount based on risk and material loan terms

Since July 1, 1983, the arranger of credit must give specific disclosures to seller and buyer in 1-4 unit carry-back transactions.

• ✓Required disclosures include description of the note/security, senior encumbrance terms, refinancing warnings, negative amortization/variable rate disclosure, and balloon payment details under Civil Code 2966
• ✓Disclosures must address loss payee endorsement, requests for notice of default/delinquency (Civil Code 2924b and 2924e), title insurance, and recording status under Government Code 27280
• ✓Additional disclosures are required if an all-inclusive deed of trust is used; Code of Civil Procedure 580b may limit vendor recovery to net proceeds on foreclosure
• ✓The arranger of credit is a fiduciary of the buyer and owes duties to the seller (Civil Code 2957(a))

Civil Code Section 1090.5 (effective October 5, 2007) prohibits any person with an interest in a real estate transaction from improperly influencing an appraisal through coercion, extortion, or bribery. If a licensee violates the law within the course of their duties, it is deemed a violation of that state licensing law. The DRE listed prohibited practices including withholding payment, threatening future business, promising future business, conditioning fees on valuation, and providing target values.

• ✓Civil Code 1090.5 prohibits improperly influencing an appraisal through coercion, extortion, or bribery
• ✓A licensee's violation within their duties is deemed a violation of their state licensing law
• ✓Withholding or threatening to withhold payment to influence an appraiser is prohibited
• ✓Providing a target value to an appraiser is prohibited (except a sales contract for purchases)
• ✓A second appraisal may only be ordered with a reasonable basis the first was flawed or per a bona fide review process

The Home Valuation Code of Conduct is a joint agreement among Fannie Mae, Freddie Mac, FHFA, and the New York Attorney General to enhance appraisal independence and accuracy. Effective May 1, 2009, Fannie Mae and Freddie Mac no longer purchase residential mortgages from sellers not adopting the Code. FHA/VA insured loans, Section 184 Native American, and Section 502 Rural Housing loans are excluded.

• ✓The HVCC enhances appraisal independence and accuracy for single-family mortgages
• ✓Effective May 1, 2009, Fannie Mae/Freddie Mac won't purchase mortgages from sellers not adopting the Code
• ✓FHA, VA, Section 184, and Section 502 loans are excluded from HVCC representations

Creditors must provide each borrower entitled to rescind with two copies of the notice of the right to rescind. The notice goes to any borrower with an ownership interest in the principal dwelling, even if not personally liable. For a family trust, occupying beneficiaries are entitled to notice. The notice is a separate document disclosing the security interest, the right to rescind, how to rescind, the effects, and the expiration date.

• ✓Each borrower entitled to rescind must receive two copies of the rescission notice
• ✓Notice goes to any borrower with an ownership interest in the principal dwelling
• ✓Occupying beneficiaries of a family trust are entitled to the rescission notice
• ✓The notice must be a separate document disclosing the security interest, right to rescind, and expiration date

The borrower may rescind until midnight of the third business day after the last to occur of: consummation, delivery of all material TILA disclosures, or delivery of the notice of right to rescind. For rescission, a business day is any calendar day except Sundays and federal legal holidays. If notice or material disclosures are not delivered, the right expires three years after consummation, upon transfer of all interest, or sale, whichever occurs first.

• ✓Rescission runs until midnight of the third business day after the latest of consummation, disclosures, or notice
• ✓Business day for rescission is any calendar day except Sundays and federal legal holidays
• ✓If notice/disclosures are not delivered, the right expires three years after consummation or upon transfer/sale
• ✓Exercise by any one borrower is effective for all borrowers

Rescission applies to consumer credit secured by a lien on the borrower's principal dwelling (only one principal dwelling at a time; includes mobile homes). Exempt: purchase or initial construction loans for the principal dwelling (regardless of lien priority); same-lender refinances with no new money (rescindable only to extent of new money); state agency loans; and loans on non-principal dwellings (vacant lots, vacation/retirement homes).

• ✓Purchase-money and initial construction loans for the principal dwelling are exempt from rescission
• ✓Same-lender refinances with no new money are exempt; new money is rescindable to that extent
• ✓A borrower can have only one principal dwelling at a time
• ✓Loans secured by non-principal dwellings (vacation/retirement homes, vacant lots) are exempt

A borrower may waive the right to rescind for a bona fide personal financial emergency by giving a dated written statement executed by the borrower describing the emergency and specifically waiving the right, preferably handwritten. Preprinted waiver forms are prohibited unless authorized. In a federally declared major disaster area, printed forms may be used, expiring one year after the disaster declaration.

• ✓Rescission waiver requires a dated written statement describing a bona fide personal financial emergency
• ✓Preprinted waiver forms are generally prohibited
• ✓Printed waiver forms are permitted in a federally declared major disaster area, expiring one year after declaration

Upon rescission, the security interest becomes void and the borrower is not liable for any amount including any finance charge. Within 20 calendar days of receiving the rescission notice, the lender must return any money/property and terminate the security interest. The borrower then tenders money/property to the lender. If the lender does not take possession within 20 days of tender, the borrower may keep it without further obligation.

• ✓Upon rescission the security interest becomes void and the borrower is not liable for any finance charge
• ✓The lender must return money/property and terminate the security interest within 20 calendar days
• ✓If the lender does not take possession within 20 days of the borrower's tender, the borrower may keep it

The finance charge is accurate for rescission if understated by no more than 1/2 of 1 percent of the note's face amount or $100 (whichever is greater), or if overstated. For new-lender refinances without new advance/consolidation, the tolerance is 1 percent or $100. After foreclosure initiation, the borrower may rescind if a broker fee was omitted from the finance charge or the proper rescission notice was not given; the foreclosure tolerance for understatement is $35.

• ✓General rescission finance charge tolerance: understated by no more than 1/2 of 1 percent of the note or $100
• ✓New-lender refinance tolerance: understated by no more than 1 percent of the note or $100
• ✓After foreclosure, the finance charge tolerance is understatement by no more than $35
• ✓After foreclosure, an omitted broker fee or defective rescission notice permits rescission

The Taxpayer Relief Act of 1997 and later changes set capital gains rates based on holding period and tax bracket. Short-term gains are taxed as ordinary income; long-term gains receive favorable rates.

• ✓Short-term (one year or less) taxed as ordinary income up to 35%
• ✓Long-term (more than one year): 5% for 10%/15% brackets (zero percent starting 2008)
• ✓Long-term: 15% for 25%, 28%, 33%, 35% brackets
• ✓Depreciation recapture taxed at 25%
• ✓Tax Reform Act of 1986 repealed the 60% long-term capital gain deduction

After the Tax Reform Act of 1986, income is separated into non-passive, portfolio, and passive categories. Passive activity losses (PAL) generally cannot offset non-passive or portfolio income, with exceptions for rental real estate.

• ✓Passive losses generally cannot offset non-passive or portfolio income
• ✓Rental activity is passive regardless of material participation
• ✓Material participation = involvement on a regular, continuous, substantial basis
• ✓Exceptions and phase-in rules apply, including for rental real estate

Depreciation is a deductible periodic charge recovering capital investment over the useful life of income-producing property. Land is not depreciable. Different systems apply based on when property was placed in service.

• ✓Land is NOT depreciable; only improvements are
• ✓Property placed in service after 1986 uses MACRS
• ✓ACRS applies to property acquired Jan 1, 1981 - Aug 1, 1986
• ✓Improvements depreciable if used in business/income production with determinable life over one year
• ✓Even if depreciation not taken, basis is reduced and IRS charges full depreciation allowable upon sale

Rules for deducting mortgage interest depend on the date, amount, and use of the loan. Acquisition debt and home equity debt have distinct limits.

• ✓Loans before October 14, 1987 secured by main/second home: fully deductible
• ✓Acquisition loans after Oct 13, 1987: deductible on first $1 million ($500,000 married filing separately)
• ✓Interest deductible on up to $100,000 of junior/home equity loans
• ✓See IRS Publication 936 for details

At-risk rules limit deductible losses to the amount the taxpayer has at risk in an activity. Extended to real property placed in service after 1986, with exceptions for qualified nonrecourse financing.

• ✓Losses allowed only to extent of amount at risk at end of tax year
• ✓Taxpayer not at risk for nonrecourse financing (not personally liable)
• ✓Exception: qualified nonrecourse debt secured by real property from a qualified lender
• ✓Qualified person = actively/regularly in the money-lending business (e.g., a bank), not seller or related party unless commercially reasonable

State/local governments may issue Mortgage Credit Certificates (MCCs) allowing a borrower to use mortgage interest as a credit against income tax, helping low/moderate-income persons qualify for loans.

• ✓MCC allows mortgage interest to be used as a credit against income tax
• ✓Issued until a total dollar amount set by the government is reached
• ✓Helps low/moderate income persons qualify for acquisition, rehab, or improvement loans

Marketable (merchantable) title has no universally accepted meaning; it is not a perfect title but one free from plausible or reasonable objections, with reasonable assurance as to the rights involved. It must be such that a court would compel a buyer to accept it in a specific performance action.

• ✓Marketable title is free from reasonable/plausible objections, not necessarily perfect
• ✓Title must be such that a court would compel a buyer to accept it
• ✓Establishing marketable title is especially important in sales for consideration and secured loans

A 'chain of paper title' can be traced to the original government conveyance, established by the race/race-notice recording system. Recording is generally not compulsory. Records may be erroneous, fraudulent, or incomplete (e.g., excluded heirs, incompetent grantors), so title depends on both recorded facts and extraneous information.

• ✓The recording system establishes a chain of paper title and priority, but recordation is not generally compulsory
• ✓Records may be erroneous, fraudulent, or incomplete
• ✓Title depends on recorded facts plus off-record information (probate, tax, judgments)

Historically, title specialists prepared an abstract of title (summary of conveyances) reviewed with a lawyer's opinion. Later came the certificate of title (abstract company's statement of vesting subject to encumbrances), then the guarantee of title (written assurances), before the modern policy of title insurance.

• ✓An abstract of title is a summary of successive conveyances with a lawyer's opinion
• ✓A certificate of title assures (does not insure) title and has limited use today
• ✓A guarantee of title provided written assurances, subject to insurance regulation

A purchaser/assignee of a Section 32 loan is subject to all claims and defenses the borrower could assert against the creditor, unless it proves by preponderance that a reasonable person with due diligence could not determine the loan was Section 32. Assignee liability generally extends to Section 35 mortgages. Relief is limited to civil-liability amounts under 1640 for TILA violations, or for other causes the sum of remaining indebtedness plus total amounts paid.

• ✓Assignee of a Section 32 loan is subject to all borrower claims and defenses unless due-diligence defense is proven
• ✓Assignee liability generally extends to Section 35 mortgages
• ✓Damages capped at 1640 amounts for TILA violations, or remaining indebtedness plus total paid for other causes (reduced by 1640 award)

Residual techniques separate net income between land and building. Building Residual (land value known): deduct land income from total NOI, capitalize building income, add to land value. Land Residual (building value known): deduct building income, capitalize the residual land income, add to building value. Components may have different cap rates.

• ✓Building Residual is used when land value is known and building value is unknown
• ✓Land Residual is used when building value is known and land value is unknown
• ✓Land and building components may have different capitalization rates
• ✓Residual techniques have very limited use for special valuation problems

The Building capitalization rate = interest rate (return on) + recapture rate (return of). Recapture rate = 100% ÷ remaining economic life. Alternatively, building cap rate = net income to building ÷ building value.

• ✓Building cap rate = interest rate (return on) + recapture rate (return of)
• ✓Recapture rate = 100% ÷ remaining economic life
• ✓Building cap rate also = building net income ÷ building value

Yield capitalization converts economic benefits to present value by discounting each anticipated benefit at a yield/discount rate. The most common form is discounted cash flow (DCF) analysis. Yield rates include a safe risk-free rate plus premiums for risk, illiquidity, and management burden.

• ✓Discount rate = required rate of return (yield rate)
• ✓Discounting assumes return ON investment plus return OF capital
• ✓Most common form is discounted cash flow (DCF) analysis
• ✓Yield rate includes safe rate plus premiums for risk, illiquidity, and management

Before a final map, a subdivider must file a tax lien certificate and secure improvement agreements with bonds or cash deposits.

• ✓Must file a certificate showing no liens for unpaid taxes/special assessments, with a bond/deposit for taxes not yet payable
• ✓Must improve or agree to improve land for public/private streets, highways, and drainage easements before final map approval
• ✓Improvement agreements must be secured with a bond or cash deposit
• ✓A final map must be prepared and recorded prior to expiration of the tentative map

A final map meeting Map Act and local ordinance requirements is approved at the next meeting and accepted for recordation, requiring a certificate of title.

• ✓Approval occurs at the next meeting after filing unless a time extension is agreed upon
• ✓After approval, the map is accepted for recordation and transmitted to the recorder
• ✓The subdivider must furnish a certificate of title establishing consenting parties have record title interest

A parcel map, prepared by a registered civil engineer or licensed land surveyor, must include boundaries, streets, numbered parcels, and a consent certificate.

• ✓Must be prepared by or under a registered civil engineer or licensed land surveyor
• ✓Must include boundaries, street locations, and each numbered/designated parcel
• ✓Must include a certificate signed and acknowledged by all record title interest holders consenting to recordation
• ✓Must satisfy additional local subdivision ordinance requirements

In addition to accounting records, the DRE requires brokers to maintain all documents prepared or obtained in connection with any real estate transaction handled, matched to each activity.

• ✓Purchase deposits require a signed real estate purchase contract and receipt for deposit; rents require collection receipts
• ✓Deposits require bank deposit slips; returning buyer checks requires a copy signed and dated by the buyer
• ✓Collecting management fees requires property management agreements and, if one check covers multiple owners, a schedule showing each charge

Under B&P Code Section 10142, a licensee must deliver a copy of any agreement authorizing services requiring a license to the person signing it at the time the signature is obtained.

• ✓Copy must be delivered at the time the signature is obtained
• ✓Applies to listing agreements, purchase contracts, addenda, and property management agreements

Under B&P Code Section 17900, a fictitious business name is one not including the individual's surname or one suggesting additional owners. A fictitious business name statement must be filed with the county clerk not later than 40 days after commencing business, published once weekly for four successive weeks within 30 days after filing, and an affidavit of publication filed within 30 days after publication completes. The statement expires five years from December 31 of the filing year.

• ✓Fictitious business name statement must be filed with the county clerk not later than 40 days after commencing business
• ✓Within 30 days after filing, publish once a week for four successive weeks in a newspaper of general circulation
• ✓An affidavit of publication must be filed with the county clerk within 30 days after publication is completed
• ✓The statement expires at the end of five years from December 31 of the year filed unless abandoned earlier
• ✓Words like 'Company,' '& Son,' '& Sons,' '& Associates,' and 'Brothers' suggest additional owners making a name fictitious

A subdivision is a legally defined division of real property for sale, lease, or financing regulated by law. The Subdivision Map Act requires subdividers to submit a tentative map to the local planning commission before a final map.

• ✓Subdivision divisions are regulated by law (B&P Code 11000 et seq.)
• ✓Subdivision Map Act requires a tentative map submitted to the planning commission
• ✓A final map incorporating requested changes must then be filed

A planned development is a subdivision with separately owned parcels plus membership in an association owning common area. A planned unit development (PUD) permits clustering differing from conventional zoning.

• ✓Planned development combines separate parcels with common-area association membership
• ✓PUD allows clustering and characteristics differing from normal zoning

A time-share estate is a right of occupancy in a time-share project coupled with an estate in the real property. A time-share use is a license or membership right of occupancy not coupled with an estate.

• ✓Time-share estate is coupled with an estate in real property
• ✓Time-share use is NOT coupled with an estate in real property
• ✓Time-share project provides recurrent exclusive occupancy for specified periods

A special assessment is a legal charge against real estate by a public authority to pay for public improvements (street lights, sidewalks, street improvements), or in a CID an extra charge for unanticipated repairs.

• ✓Public special assessment funds public improvements
• ✓CID special assessment covers unanticipated repairs or capital improvements
• ✓Levied in addition to regular assessments in a CID

NAREB classes include Member Boards, Local Board Members, Individual Broker Members, Associate Members, Allied Associate Members, Individual Members, Allied Members, Honorary Members, Subscribers, Corporate Members, and Life Members. Individual Broker Members have one full vote; Associate and Allied Associate Members have one-half vote; Allied Members have one-quarter vote; Honorary, Subscriber, and Corporate Members have no voting power.

• ✓Individual Broker Member has one (1) full vote
• ✓Associate and Allied Associate Members have one-half (1/2) vote
• ✓Allied Members have one-quarter (1/4) vote
• ✓Honorary, Corporate, and Subscriber members have no voting power
• ✓Subscribers are not bound by the NAREB Code of Ethics and may not use the term Realtist

Individual Members are elected to direct membership by the Board of Directors, may exist outside local/state territory, and hold membership until six months after acceptance of a Member Board in the same territory. Allied Members include those in allied businesses such as mortgage bankers and appraisers. Life Members are granted for distinguished service, with voting rights varying by designation.

• ✓Individual Members are elected to direct membership by the Board of Directors
• ✓Individual Member status expires 6 months after a Member Board is accepted in the same territory
• ✓Life Members are granted for distinguished service, voting rights varying by designation

Title insurance was developed as the culmination of assuring marketable title and compensating for losses from incorrect assurances. Unlike prior methods, it uniquely protects against risks outside the public records (forgery, incompetence, non-delivery), in addition to record risks, using a title plant to search records.

• ✓Title insurance covers record risks AND certain off-record risks depending on policy type
• ✓Its unique contribution is protection against risks outside the public records
• ✓Insurers use a 'title plant' to search records

A preliminary report is a commitment/binder—an offer to issue a title policy subject to stated exceptions. It is NOT an abstract of title and does not represent the condition of title. It merely states the terms and conditions on which the insurer will issue a policy (Insurance Code 1234.11).

• ✓A preliminary report is an offer to issue a policy, not a representation of the condition of title
• ✓It is not an abstract of title and carries none of the abstract's duties
• ✓It sets forth the exceptions and conditions under which the insurer will issue coverage

The standard policy protects against off-record hazards (forgery, impersonation, lack of capacity), non-delivered deeds, federal estate tax liens, and defense costs. It does NOT cover defects known to the insured, unrecorded easements/liens, rights of parties in possession, matters shown by inspection or survey, mining claims, water rights, or zoning.

• ✓Standard policy covers forgery, impersonation, lack of capacity, and defense costs
• ✓It does not cover matters known to the insured, unrecorded interests, or rights of parties in possession
• ✓It does not cover matters discoverable by inspection/survey, mining claims, water rights, or zoning

The ALTA (lender) policy expands coverage to include rights of parties in possession, patent reservations, and unmarketable title—developed for out-of-state lenders unable to inspect. ALTA/CLTA owner's extended policies give owners similar protection. Homeowner's policies (1998, revised) offer extended coverage with maximums and small deductibles.

• ✓The ALTA lender policy covers parties in possession, patent reservations, and unmarketable title
• ✓Extended owner's/homeowner's policies expand protection with maximums and deductibles
• ✓CLTA homeowner policy provides Subdivision Map coverage; ALTA makes Map Act coverage optional

Title insurers must charge for preliminary reports and make sincere efforts to collect (1967 legislation). They may furnish the owner of record and record description (a 'property profile') without charge. The law prohibits paying any commission or rebate as an inducement for title business (Ins. Code 12404; B&P 10177.4).

• ✓Title companies must charge for preliminary reports and try to collect
• ✓A 'property profile' (owner of record and record description) may be provided free
• ✓Direct or indirect rebates/commissions as inducements for title business are prohibited (B&P 10177.4)

A California title insurer must have at least $500,000 paid-in capital (Ins. Code 12359), deposit a $100,000 guarantee fund with the Commissioner (12350), and set aside a title insurance surplus fund of 10% of premiums annually until it reaches the lesser of 25% of paid-in capital or $1,000,000.

• ✓Minimum $500,000 paid-in capital and $100,000 guarantee fund required
• ✓Annual surplus fund of 10% of premiums until reaching the lesser of 25% of capital or $1,000,000
• ✓CLTA standardized forms are almost universally used in California

Occupancy includes abandonment, prescription, and adverse possession. Adverse possession requires: actual occupation; open and notorious use; hostile to the true owner's title; claim of right or color of title; continuous and uninterrupted for five years; and payment of all property taxes for five years. Such title is not marketable/insurable until perfected by court decree and usually cannot be acquired against a public body.

• ✓Adverse possession requires five years of continuous possession
• ✓It requires payment of all property taxes for five years
• ✓Possession must be actual, open, notorious, hostile, and under claim of right
• ✓Title by adverse possession is not marketable until perfected by court decree

The Civil Code lists nine ways to acquire property: will; succession; accession; occupancy; transfer; marriage; escheat; eminent domain; and equitable estoppel. Transfer includes private grant, public grant, gift/dedication, and alienation by operation of law or court action.

• ✓The nine methods are will, succession, accession, occupancy, transfer, marriage, escheat, eminent domain, and equitable estoppel
• ✓Transfer includes private grant, public grant, gift, and court action

A will disposes of property at death, becoming effective only at death (unlike deeds and contracts). Types are the witnessed (formal) will, holographic will, statutory will, and statutory will with trust. A holographic will is entirely written, dated, and signed in the testator's handwriting. On death, title passes to beneficiaries or heirs but is not marketable/insurable due to probate control.

• ✓A will becomes effective only at death
• ✓A holographic will is entirely handwritten, dated, and signed by the testator
• ✓A witnessed will requires at least two witnesses
• ✓Title after death is not marketable until probate is completed

Probate begins with a petition for probate of a will or letters of administration. A representative (executor/administrator) is appointed. Notice to creditors gives four months to file claims. An inventory and appraisement is filed. Estate property may be sold subject to court approval. Small estates may be exempt or use summary procedures.

• ✓Creditors have four months to file claims after notice
• ✓Estate property sales require court approval
• ✓Small estates may be exempt from full probate administration

When a person dies without a will, intestate succession governs disposition based on property character and next of kin. Separate property may split between spouse and children. One-half of community property belongs to the surviving spouse; the other half is subject to the will, and passes to the surviving spouse if there is no will.

• ✓Intestate succession applies when there is no valid will
• ✓One-half of community property belongs to the surviving spouse
• ✓The decedent's half of community property goes to the surviving spouse if there is no will

By accession, title extends to improvements or additions. Accretion adds land by gradual sediment build-up (alluvion) to riparian/littoral owners. Reliction is the gradual recession of water leaving dry land. Avulsion is rapid washing away. Fixtures affixed without permission belong to the landowner. A good-faith mistaken improver may remove improvements upon paying damages (Civil Code 1013.5).

• ✓Alluvion is land gradually added by accretion of sediment
• ✓Reliction is land exposed by gradual water recession; avulsion is rapid loss
• ✓Fixtures affixed without permission belong to the landowner
• ✓Civil Code 1013.5 allows a good-faith improver to remove improvements upon paying damages

A prescriptive easement is analogous to adverse possession but results only in the right to use another's land, not full title. Abandonment is voluntary surrender of possession with intent to terminate interest without assigning it; mere non-use is not abandonment. If a lessee abandons, the landlord reacquires possession and control.

• ✓A prescriptive easement grants only a right to use, not full title
• ✓Abandonment requires intent to terminate; mere non-use is not abandonment

Transfer occurs when title conveys by act of the owner or law. Private grant conveys title for consideration. A gift is voluntary transfer without consideration, normally by deed for real property. Public dedication acquires property for public use by common law dedication (intent plus public acceptance), statutory dedication (Subdivision Map Act), or deed (often for fee title).

• ✓A private grant conveys title for consideration; a gift is without consideration
• ✓Common law dedication requires landowner intent and public acceptance
• ✓Statutory dedication occurs under the Subdivision Map Act by recording a map

Courts establish title regardless of owner desires via: quiet-title action (clearing tax titles, adverse possession, forfeited contracts); partition action (severing co-owner interests, possibly by ordered sale); foreclosure action (lien holder ordering sale for unpaid balance); and declaratory relief action (determining rights under a written instrument).

• ✓A quiet-title action clears adverse claims to real property
• ✓A partition action severs co-owner interests, often by court-ordered sale
• ✓A foreclosure action orders sale to satisfy a delinquent lien

A money judgment creditor may obtain a writ of execution directing the officer to seize and sell the debtor's non-exempt real property at auction. The buyer receives a certificate of sale; if no redemption within the statutory period (usually 12 months), the officer delivers a deed. Forfeiture occurs when a condition subsequent is breached or a special limitation event occurs, allowing the grantor to reacquire title without consideration.

• ✓A writ of execution directs seizure and sale of the debtor's non-exempt property
• ✓The redemption period after an execution sale is usually 12 months
• ✓Breach of a condition subsequent lets the grantor terminate the estate

Marriage does not transfer title, but earnings and acquisitions during marriage (not separate) are community property with equal spousal interests. Escheat vests title in the state for lack of heirs (not automatic). Eminent domain takes private property for public use with fair market value compensation. Equitable estoppel bars a former owner from denying an innocent claimant's title, and grantees receive after-acquired title.

• ✓Property acquired during marriage that is not separate is community property
• ✓Escheat vests title in the state for lack of heirs and is not automatic
• ✓Eminent domain requires payment of fair market value compensation
• ✓After-acquired title passes to the grantee by estoppel