50 California recall prompts

Money or other things of value received by a broker on behalf of another person in a transaction requiring a real estate license.

Commingling: Commingling is mixing trust money with the broker's own money. It is a violation even if nothing is spent.

Conversion: Conversion is an unauthorized use of trust money. It is more serious than commingling because the holder has exercised control inconsistent with the owner's rights.

Mixing a client's trust funds with the broker's own funds.

Using trust funds for a purpose other than the one for which they were entrusted.

The statutory form on which a seller of one to four residential units discloses the property's known condition.

Natural Hazard Disclosure Statement: The NHD reports six mapped statutory zones. The TDS reports the condition of the property itself.

The form disclosing whether a property sits in any of six mapped statutory hazard zones.

A fact that would affect a reasonable buyer's decision to buy or the price they would pay.

Property affected by an event, such as a death, that has no physical effect on the structure.

California's fund of last resort for direct losses caused by a licensee's intentional fraud or conversion of trust funds in licensed activity.

Inducing owners to sell by representing that people of a protected class are moving into the area.

Steering: Steering directs a buyer. Blockbusting frightens a seller.

Redlining: Redlining is discriminatory restriction of lending or insurance based on an area's protected-group composition, not lawful property-risk underwriting.

Directing prospective buyers toward or away from neighborhoods based on a protected characteristic.

Denying or discouraging lending, insurance, or housing services because of an area's protected-group composition rather than lawful risk factors.

A physical change to premises that a landlord must permit for a person with a disability, normally at the tenant's expense.

Reasonable accommodation: An accommodation changes a rule. A modification changes the building.

The duty of trust and confidence an agent owes a principal.

One broker representing both buyer and seller in the same transaction.

California's process for providing the agency form, disclosing actual representation, obtaining required consent, and confirming the relationship in writing.

Agency created when a principal intentionally or carelessly causes a third party reasonably to believe another person is the principal's agent.

Express agency: Express agency comes from an actual agreement, written or oral.

An agent with ongoing authority across a continuing series of transactions within a defined scope.

The broker whose continuous efforts set in motion the chain of events resulting in the sale.

A listing provision entitling the broker to a commission if the property sells after expiry to a buyer the broker introduced.

Co-ownership in equal shares with right of survivorship. The traditional four unities are time, title, interest and possession, subject to California statutory creation rules.

Tenancy in common: No survivorship, shares may be unequal, and the interest passes by will or intestate succession.

Community property with right of survivorship: Available to spouses and combines community-property character with survivorship. Its potential federal basis treatment differs from ordinary joint tenancy and depends on the governing tax rules and facts.

Co-ownership with no right of survivorship, permitting unequal shares.

Property generally presumed to belong to both spouses or registered domestic partners when acquired during the relationship while domiciled in California, subject to separate-property exceptions.

A non-possessory right to use another's land for a specified purpose.

License: A license is permission to use land, ordinarily revocable, rather than an estate or easement. Reliance or an interest coupled with the license can affect revocability.

Encroachment: An encroachment is an unauthorized physical intrusion, not a right.

Any claim, lien, charge or liability attached to and binding on real property.

A lien securing payment for labor or materials furnished to improve real property.

Acquiring title through actual, open, notorious, hostile, continuous possession under claim of right for five years while paying the required property taxes.

The government power to take private property for public use on payment of just compensation.

The government power to regulate land use for public health, safety, morals, and general welfare, ordinarily without compensation.

Administrative permission to deviate from a zoning requirement because of a hardship unique to the parcel.

Nonconforming use: A nonconforming use existed lawfully before the ordinance changed. A variance is permission granted after.

California law prohibiting construction of structures for human occupancy across the trace of an active fault.

Water-use rights ordinarily accompanying qualifying land bordering a natural lake, river, stream, or creek.

The gradual deposit of soil along a watercourse, adding to the owner's land.

The California statute governing the design, improvement, and mapping process when land is divided for sale, lease, or financing.

Subdivided Lands Act: A DRE consumer protection statute requiring the public report, not a local mapping control.

Personal property attached to real property in a way that makes it part of the realty.

The most probable price a property should bring in a competitive and open market, with buyer and seller each acting prudently and neither under duress.

The legally permissible, physically possible, financially feasible use that produces the highest value.

Annual net operating income divided by property value, expressed as a percentage. A cap rate is not total investment return.

Gross rent multiplier: GRM uses gross income and a price, with no deduction for vacancy or expenses.

Cash-on-cash return: Cash-on-cash divides cash flow after debt service by the cash invested, so it depends on financing. Cap rate ignores financing.

Effective gross income less operating expenses, before debt service and before depreciation.

Sale price divided by gross income, used as a quick comparison measure.

Loss in value from a design or utility deficiency within the property, such as an outdated floor plan.

Loss in value caused by an influence outside the property.

The maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute.

The value of a superior property is dragged down by inferior surrounding properties.

The rule requiring certain contracts to be in writing to be enforceable.

A void contract never had legal effect. A voidable contract is valid until the party with the power to escape elects to disaffirm it.

A contract clause fixing in advance the amount recoverable on breach.

A court order compelling a party to complete the contract rather than pay damages.

Substituting a new party or a new obligation, releasing the original party from liability.

A unilateral contract giving the holder the right, but not the obligation, to buy on stated terms during a stated period.

Compensation claimed, demanded, charged, received, or collected before the licensed services covered by the fee have been fully completed.