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Flashcards in Briefing Exam 1 Deck (152):
1

1. California real estate law originated from:

a. BRE regulations
b. Spanish law
c. English common law
d. European law.

c. English common law

In general, California's laws relating to real estate originated from English common law.

2

2. The real estate commissioner's authority to administer and enforce the real estate law is called:

a. the Commissioner's Regulations.
b. state legislation.
c. judicial precedent.
d. the Civil Code.

a. the Commissioner's Regulations.

The real estate commissioner issues regulations (Commissioner's Regulations) to aid in the administration and enforcement of the real estate law.

3

3. The technical definition of real property includes:

a. anything immovable by law.
b. chattel real.
c. method of acquisition.
d. the right to possess and use to the exclusion of others.

a. anything immovable by law.

In the strict legal sense, real property includes land, appurtenances, that which is affixed to the land, and that which by law is immovable.

4

4. The classical definition of property ownership is ownership of:

a. the surface only.
b. horizontal and vertical areas above and below the property..
c. everything below the property in the shape of an inverted pyramid with its apex at the center of the earth and infinite airspace.
d. all that one can perceive.

c. everything below the property in the shape of an inverted pyramid with its apex at the center of the earth and infinite airspace.

This is the classical definition of ownership of land. Modern day, practical theory, prohibits exercising absolute control beyond a reasonable distance above and below the surface of the land.

5

5. Which of the following is considered real property?

a. Land and buildings
b. Artificial items which are immovable by law
c. Easements that convey rights-of-way over adjoining land
d. All of the above

d. All of the above.

Real property includes land, that which is attached to it (physically or legally) and appurtenances (including easements).

6

6. All of the following are considered real property EXCEPT:

a. air space.
b. ground water.
c. growing trees.
d. trade fixtures.

d. trade fixtures.

A trade fixture is an article of personal property annexed of affixed to leased premises by the tenant as a necessary part of the tenant's trade or business.

7

7. Which of the following is considered personal property?

a. Stock in a mutual water company.
b. Covenants made for the benefit of the land.
c. Easements appurtenant.
d. All of these.

d. All of these.

All of these run with the land, including the mutual water company stock which is inseparable.

8

8. Which of the following is considered personal property?

a. land
b. physical improvements
c. growing trees
d. trust deed

d. trust deed

A mortgage or trust deed is personal property (lien).

9

9. Identifying property as "personal" or "real" can be difficult because personal property can:

a. be alienated
b. be transferred.
c. become real property.
d. all of these.

c. become real property.

identifying property as "personal" or "real" is complicated by the fact that personal property can become real property.

10

10. Personal property becomes real property when:

a. transferred.
b. hypothecated.
c. it is fully depreciated.
d. it becomes immovable.

d. it becomes immovable.

Property, whether real or personal, may undergo a change of class, as when personal property readily movable becomes immovable by becoming a permanently affixed to land or improvements.

11

11. Personal property can never:

a. become real property.
b. by hypothecated (mortgagee).
c. be alienated.
d. none of these.

d. none of these.

Personal property sometimes becomes real property when it is affixed to real property. It can be hypothecated, as when a person borrows on a car and hypothecates the title. It can be alienated or conveyed to someone else.

12

12. All of the following are factors considered when determining whether an item of personal property has become real property, EXCEPT:

a. Agreement between the parties
b. Method of attachment
c. Cost of the article
d. Relationship of the parties

c. Cost of the article

Fixtures are items of personal property which have become attached to real property, thus becoming real property. The five tests of a fixture are: Method of attachment, Agreement of the parties, Relationship of the parties, Intention of the person attaching it, Adaptability of the item.
STUDY AID: MARIA

13

13. The most important test of a fixture is:

a. method of attachment.
b. cost of installation.
c. adaptability of the item.
d. intention of the parties.

d. intention of the parties.

The intention of the parties, particularly the intention of the person attaching it usually governs.

14

14. Which of the following is not appurtenant to real estate?

a. growing trees
b. buildings
c. fences
d. trade fixtures

d. trade fixtures

Appurtenant means belonging to; adjunctive; appended or annexed to. For example, the garage is appurtenant to the house, and the common interest in the common elements of a condominium is appurtenant to each apartment. Appurtenant items run with the land when the property is transferred. Trade fixtures do not transfer with the property.

15

15. Property is:

a. real if an estate.
b. personal if a fixture.
c. personal if other than real.
d. all of these.

c. personal if other than real.

One of the most basic definitions of personal property is: "all property is personal if not real."

16

16. Which of the following would be considered real property?

a. A maturing grape crop which under a sales contract to be harvested later.
b. Trade fixtures that a tenant has installed but which are removable without damage.
c. A built-in refrigerator in a mobile home that is not attached to a permanent foundation.
d. A bearing wall in a single-family house.

d. A bearing wall in a single-family house.

Since a bearing wall is part of the structure of a house and the house is real property, the bearing wall would also be real property.

17

17. The doctrine of constructive severance applies to:

a. removal of fixtures.
b. sales of growing crops.
c. removal of trade fixtures.
d. moving of buildings

b. sales of growing crops.

The "doctrine of constructive severance" states that when growing crops are sold, they are legally considered severed.

18

18. Emblements refer to:

a. bushes.
b. crops.
c. fixtures.
d. fences.

b. crops.

Vegetable chattels called "emblements" are the crops of the earth produced annually, not spontaneously, by labor and industry.

19

19. "A" sells a farm to "B". Crops are growing on the farm. "A" wants to harvest the crops. Who owns the crops?

a. "A"
b. "B"
c. Both "A" and "B"
d. Neither "A" nor "B"

a. "A"

Emblements are regarded as personal property even before harvest, thus, a seller or tenant has the right to take the annual crop resulting from his or her labor, even if the harvest does not occur until after the sale or tenancy. Therefore, A has the right to reenter the land to harvest any crops grown by him.

20

20. The word "percolation" refers to:

a. coffee pots.
b. water mains.
c. smog.
d. water table.

d. water table.

Percolation refers to the returning of water to the land. It results in the recharging of the underground water system called the "water table."

21

21. When water is returned to the water table by the process known as "percolating," the water belongs to:

a. the people.
b. the state.
c. the local water company.
d. the landowner above the water.

a. the people.

In California, the landowner has only a right in common with other owners to take his/her share of the water for beneficial use.

22

22. Riparian rights are best described as:

a. reasonable use of adjacent water.
b. exclusive use of adjacent water.
c. reasonable use of private water.
d. exclusive use of private water.

a. reasonable use of adjacent water.

Riparian rights are the rights held in common with other riparian owners to make reasonable use of the waters that flow on, under, or adjacent to a property, provided such use does not alter the flow of water or contaminate water.

23

23. The rights of a landowner whose property line touches on a non-navigable river or stream are called:

a. sub-surface rights.
b. high-low water rights.
c. correlative user rights.
d. riparian rights.

d. riparian rights.

Riparian rights are the rights of an abutting owner to his/her fair share of water flowing past the land.

24

24. The sudden tearing away or removal of land by water flowing thorough or over it is called:

a. avulsion.
b. accretion.
c. accession.
d. alluvion

a. avulsion.

Avulsion is the loss of land as a result of its being washed away by a sudden or violent action of nature.

25

25. The building up of new soil adjacent to a river is called:

a. avulsion.
b. reliction.
c. accretion.
d. alluvion.

c. accretion.

Accretion is the process by which fine material, such a s sand or mud, is carried by water and deposited on land. Accretion is the process - alluvium is the material that builds up.

26

26. A non-riparian land owner obtains the right to take water from another property by:

a. percolation.
b. appropriation.
c. allocation.
d. avulsion.

b. appropriation.

Appropriative water rights allow a non-riparian owner to divert water flowing on another owner's land or water flowing on the public domain.

27

27. Before damming or diverting water, a landowner must have permission from:

a. the local flood control district.
b. the state water commission.
c. adjoining land owners.
d. all of these.

a. the local flood control district.

This is for the protection of the general public.

28

28. Potable means:

a. drinkable.
b. water.
c. sewage.
d. land.

a. drinkable.

Potable means drinkable (safely and agreeably used for drinking).

29

29. Which of the following most accurately describes a join tenancy estate?

a. in severalty
b. concurrent co-ownership
c. by husband and wife
d. community property

b. concurrent co-ownership

A joint tenancy estate requires two or more people and therefore could not be in severalty.

30

30. Which of the following forms of ownership consists of an undivided interest with right of survivorship?

a. Severalty
b. Community property
c. Joint tenancy
d. Tenancy-in-common

c. Joint tenancy

The right of survivorship is the main characteristic of a joint tenancy holding.

31

31. Ownership of an undivided interest in land with no right of survivorship is found in:

a. fee simple defeasible estates.
b. tenants in common.
c. severalty.
d. joint tenancy.

b. tenants in common.

The words "undivided interest" couple with "no right of survivorship" refer to tenants in common.

32

32. A property is owned by two persons in joint tenancy. Which of the following actions could destroy the joint tenancy?

a. Foreclosure and sale against one of the parties to the joint tenancy.
b. One of the joint tenants places a deed of trust against his/her interest.
c. One joint tenant wills his/her interest to another.
d. Judgment and writ of execution are awarded.

a. Foreclosure and sale against one of the parties to the joint tenancy.

There are four unities to a joint tenancy. STUDY AID: TTIP

1. TIME: That the co-owners became such at the same time.
2. TITLE: Created by a single will or transfer.
3. INTEREST: Equal shares.
4. POSSESSION: A right to use the whole and share in the profits and costs.

Foreclosure and sale breaks two of the unities: Time and Title.

A judgment against one joint tenant does not sever the joint tenancy, but levying execution against property and having a sale does end the joint tenancy. If the tenant dies prior to the execution of the judgment against the property, the property will pass free and clear of the debt to the surviving joint tenants. A joint tenant can borrow against his or her interest without destroying the joint tenancy.

33

33. the four unities of joint tenancy are:

a. Time, Title, Interest, Possession
b. Time, Interest, Possession, and Liability
c. Title, Interest, Possession, and Ability
d. Time, Possession, Liability, and Interest

a. Time, Title, Interest, Possession

The four unities to a joint tenancy are: Time, Title, Interest, and Possession. "TTIP"

34

34. If three different buyers take title to real property as joint tenants, there would be:

a. one deed.
b. three deeds.
c. separate 1/3 ownerships.
d. no right of survivorship.

a. one deed.

With a joint tenancy ownership, only one title exists.

35

35. Which of the following is always required in joint tenancy ownership of real property?

a. The clause, "With right of survivorship."
b. Equal shares of interest in the property by each of the joint tenants.
c. A husband and wife relationship.
d. All of the above.

b. Equal shares of interest in the property by each of the joint tenants.

The four unities must be present for the existence of a join tenancy: Time, Title, Interest, and Possession.

36

36. Archer, Baker and Charles hold title to real property in joint tenancy. If Archer were to die:

a. Baker and Charles remain joint tenants.
b. Baker and Charles become tenants in common.
c. Baker and Charles acquire Archer's interest by succession.
d. Baker and Charles become tenants in common with Archer's wife.

a. Baker and Charles remain joint tenants.

Upon the death of Archer, Archer's 1/3 interest passes to Baker and Charles, who are still joint tenants with each holding a 1/2 interest.

37

37. A, B, and C are co-owners of real property in joint tenancy. C sells his interest to D and shortly thereafter dies. IF C had also executed a will, leaving all of his property to his sole heir, who we shall call E, title to the property would vest as:

a. A & B as joint tenants together with D as tenants in common.
b. A & B as joint tenants together with E as tenants in common.
c. A, B & D as tenants in common.
d. A & B as joint tenants

a. A & B as joint tenants together with D as tenants in common.

It is the right of any joint tenant to sell his share during ownership. In the example, the sale created a tenancy in common between D and the other joint tenants. The death of C had no effect as he died after the transfer.

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38. Truman deeded his farm to his sons, "A", "B" and "C" as joint tenants. "B" sold his interest to "W". "A" died and willed his interest to "S" (his heir). "C" retained inheritance. Ownership of the property would be:

a. "C" and "W" as tenants in common with "C" having 2/3 interest and "W" having 1/3 interest.
b. "W" and "C" as joint tenants.
c. Undecided until probate of "A's" estate has been completed.
d. "S", "W", and "C" as tenants in common, each having 1/3 interest.

a. "C" and "W" as tenants in common with "C" having 2/3 interest and "W" having 1/3 interest.

When "B" sold his interest to "W," "W" became a tenant in common with BOTH "A" & "C." Because "A" &"B" were join tenants, "A" could NOT will his interest. It passed to "C" upon "A's" death. This resulted in "C" & "W" becoming tenants in common.

39

39. Smith and Jones own property as joint tenants. Jones, without Smith's knowledge or consent, encumbers his interest by borrowing $10,000. Before making any payments on the loan, Jones dies. Smith now owns the property:

a. totally, but subject to the $10,000 loan.
b. with the mortgagee as joint tenants.
c. in severalty and without liability for the mortgage.
d. with the mortgagee as tenants in common.

c. in severalty and without liability for the mortgage.

If one joint tenant dies, the surviving joint tenant becomes the sole owner of the property and is not liable to the creditors of the deceased who hold foreclosed liens on the joint tenant's interest in the property.

40

40. Partition action refers to:

a. tract homes.
b. court action to break up joint tenants.
c. subdivisions.
d. all of these.

b. court action to break up joint tenants.

Partition action refers to a court proceeding to divide the interests of con-tenants.

41

41. Tenants in common have equal right of:

a. time
b. title.
c. interest.
d. possession

d. possession

Tenancy in common is a form of concurrent ownership where two or more person hold separate legal tittle in the same property through the unity of possession. This means that each co-owner has an undivided fractional interest in the land and a right to use the whole property.

42

42. To hold real property as tenants in common, the individuals must:

a. be husband and wife
b. hold undivided interests.
c. hold equal interests.
d. arrange for possession.

b. hold undivided interests.

Whenever two or more people hold title to property together, they must hold an undivided interest. If you own 1/3 of the property, you CANNOT designate which 1/3.

43

43. Joint tenancy and tenancy in common both share the unity of:

a. equal interests.
b. survivorship.
c. the right to pass title by will.
d. equal rights of possession.

d. equal rights of possession.

Both tenants in common and joint tenants hold an undivided interest in real property through the unity of possession.

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44. If a client asks how they should take title, the broker should say:

a. as tenants in common.
b. as joint tenants.
c. as community property.
d. ask an attorney.

d. ask an attorney.

The question of how to take title should be referred to an attorney.

45

45. Community property is property owned by:

a. churches.
b. husband and wife.
c. the municipality.
d. the community.

b. husband and wife.

Community property is automatically owned equally by each spouse regardless of whose name record title is held under.

46

46. Community property laws are based upon:

a. English common law.
b. ethical conduct statutes.
c. Spanish law.
d. none of the above.

c. Spanish law.

A holdover from Spanish law is the concept of community property which is property acquired by husband and wife during marriage.

47

47. An agreement to sell community real property, signed by one spouse only is:

a. valid.
b. unenforceable.
c. enforceable.
d. illegal.

b. unenforceable.

Neither spouse alone can sell community real property.

48

48. A husband alone, without his wife's consent, may:

a. give away community property.
b. sell community property.
c. buy real property.
d. sell community personal property.

c. buy real property.

Any real property purchased by husband or wife separately becomes community property.

49

49. A brother and sister CANNOT hold property as:

a. tenants in common.
b. joint tenants.
c. community property.
d. a partnership.

c. community property.

Community property ownership requires marriage.

50

50. A person holding title to property in severalty would most likely have:

a. a life estate
b. an estate for years.
c. ownership in common with others.
d. sole ownership.

d. sole ownership.

Severalty is sole ownership of real property.

51

51. Among the principles involved in the "Bundle of Rights" is the right to:

a. build, tax, destroy, and rebuild.
b. design, plan, implement, and profit.
c. possess, encumber, will, sell.
d. all of the above.

c. possess, encumber, will, sell.

The Bundle of Points theory claims that ownership of a parcel of real estate embraces a great many right, such as the right to possess, encumber, will and sell.

52

52. Rights of ownership include everything EXCEPT:

a. the right to will.
b. the right to gift.
c. the right to encumber.
d. the right of eminent domain.

d. the right of eminent domain.

The rights of ownership include the exclusive right to possess, encumber, will and sell. Also included is the right to give the property away (gift).

53

53. Freehold estate includes:

a. estates for years.
b. leasehold estates.
c. life estates.
d. all of the above

c. life estates.

The distinctive characteristic of the freehold estate is that they endure for an interminable duration. Thus, freehold estates consist of:

1. Estates in fee:
a. Absolute
b. Qualified - by condition or limitation
2. Life Estates

54

54. The word "fee" as used in connection with real estate means:

a. commission
b. advance commission.
c. estate of inheritance.
d. listing price.

c. estate of inheritance.

Fee simple title is sometimes referred to as "the fee" or "fee".

55

55. A lease would be a:

a. freehold estate.
b. fee simple absolute.
c. chattel real.
d. fee estate.

c. chattel real.

A chattel is an item of personal property. The word chattel evolved from the cattle, one of the early important possessions. Chattels real are annexed to real estate, whereas chattels personal are moveable. A lease is an example of a chattel real.

56

56. All of the following area considered less-than-freehold estates EXCEPT:

a. an estate for years.
b. a life estate.
c. a periodic tenancy.
d. an estate at sufferance.

b. a life estate.

A life estate is considered a freehold estate.

57

57. Which of the following is considered a "fee estate"?

a. estate with no limitations
b. life estate
c. estate for years
d. all of these

a. estate with no limitations

A fee simple estate is the greatest degree of ownership recognized by law, also referred to as fee simple absolute.

58

58. Which of the following is false regarding a "fee estate"?

a. it is freely transferable
b. it is of definite duration
c. it can be inherited
d. non of these

b. it is of definite duration

Fee estates are of indefinite duration.

59

59. Which of the following best describes an estate of inheritance?

a. life estate
b. lease
c. fee simple
d. all of the above

c. fee simple

An estate of inheritance is a fee simple estate handed down by will.

60

60. A grant deed that converts title to real property without limitation is called a:

a. fee simple estate.
b. license.
c. qualified estate.
d. leasehold estate.

a. fee simple estate.

A fee simple estates is the maximum possible estate one can possess in real property. It is the least limited interest and the most complete and absolute ownership.

61

61. All of the following describe a fee simple interest EXCEPT:

a. no encumbrances.
b. inheritable.
c. indefinite duration.
d. freely transferable.

a. no encumbrances.

Fee simple estates are usually encumbered by some kind of voluntary (e.g., mortgage) or involuntary (e.g., property tax) lien.

62

62. One man transferred title to a house with a condition that no alcoholic beverages will be sold on the premises. The estate created is known as a(n):

a. fee simple absolute.
b. estate in forfeiture.
c. fee simple defeasible.
d. estate in reversion.

c. fee simple defeasible.

A fee simple defeasible estate is created to exist only until the occurrence or nonoccurrence of a particular event. This question describes a defeasible estate with a condition subsequent. If the condition is breached, the estate can revert to the grantor either automatically or by court action.

63

63. The best possible estate to have is:

a. life estate.
b. estate for years.
c. fee simple.
d. reversionary.

c. fee simple.

A fee simple estate is the maximum possible, least limited, and most complete ownership.

64

64. Which of the following is considered a "less than freehold estate"?

a. lease
b. freehold estate
c. fee simple estate
d. easement

a. lease

A less than freehold estate is an estate in possession generally referred to as a leasehold. Such interest exist for a definite period of time or successive periods of time until termination by notice.

65

65. Abigail Blake leased an apartment in a recreation area form July 1, 2010 though august 31, 2011. she holds a(n):

a. estate at will.
b. estate in severalty.
c. estate for years.
d. freehold estate.

c. estate for years.

An interest or estate in land for a fixed period of time (a year, month, week) is called an estate for years.

66

66. Under a lease, the leasehold interest lies in the:

a. lessor.
b. lessee.
c. landlord.
d. beneficiary.

b. lessee.

A leasehold interest is the right to exclusive possession and use of real property for a fixed period of time held by the lessee (tenant).

67

67. In real estate the word "tenancy" means:

a. a tenacious person.
b. two or more people joined in a enterprise.
c. a mode or method of holding title to real property.
d. a device.

c. a mode or method of holding title to real property.

Tenancy means a method, mode or means of holding title by a lessee or owner.

68

68. By conveying less than his fee estate, the grantor retains a:

a. reversionary interest.
b. remainder interest.
c. limited interest.
d. future interest.

a. reversionary interest.

Reversion is the estate remaining in the grantor who has conveyed a lesser estate from the original.

69

69. A lessee can remove:

a. fixtures installed by the tenant for manufacture.
b. fixtures installed by the tenant of domestic use.
c. tade fixture.
d. all of the above.

d. all of the above.

Most items affixed to the property by the tenant CAN be removed when the lease expires.

70

70. Brown leases a residence from Baker on a three-month written lease. Upon expiration of the written lease, Brown retains possession of the property without the consent of Baker. Brown now holds a(n):

a. estate at sufferance.
b. estate for years.
c. estate at will.
d. periodic tenancy subject to eviction.

a. estate at sufferance.

An estate at sufferance is defined as one in which a lessee rightfully comes into possession of the land and retains possession after the expiration of the lease.

71

71. "Q" held a fee simple estate and sold it to "A" but retained a life estate in the property and remained in possession. "O" then sold his interest to "B" and gave up possession to "B." When "A" was advised of the sale, he demanded possession. Who is entitled to possession?

a. "A"
b. "B"
c. "O"
d. "A" and "B"

b. "B"

The holder of a life estate may do anything he or she wants within the law. He/she may sell it, give it away, lease it, encumber it, or do nothing at all. Whatever he/she does terminates at death.

72

72. Mark gives a life estate to Charlie. Mark's interest is:

a. personal property
b. reversionary
c. leasehold
d. remainder

b. reversionary

Mark's interest reverts back to him after the death of Charlie.

73

73. Mark enters into an agreement to lease to Steve for 10 years. Four years later Mark dies. Steve then discovers that Mark's interest was a life esteem. Which of the following is correct?

a. The ownership reverts to Steve.
b. The ownership remains with Mark's heirs.
c. The lease is still valid for the full 10 year term.
d. The lease terminates with Mark's death.

d. The lease terminates with Mark's death.

A life tenant (Mark) may not encumber his or her interest beyond the life of its owner of the life of some other designated person.

74

74. As spelled out in her deceased husband's will, Colleen can collect the rents from an apartment building for her lifetime, after which the apartment building goes to their church. Colleen holds a:

a. fee estate.
b. less-than-freehold estate.
c. life estate.
d. none of the above

c. life estate.

Colleen has a life estate with the remainder interest held by the church.

75

75. A person who held a life estate leased the property for five years and then died. The new owners ordered the lessee to move out. The lease was:

a. valid for the five years.
b. valid until the man died.
c. invalid from the beginning.
d. invalid unless the deceased's executor confirmed it.

b. valid until the man died.

The holder of the life estate could only lease what he had which was the use of the property until he died.

76

76. The holder of life estate can do all of the following EXCEPT:

a. sell it.
b. lease it.
c. will it.
d. borrow against it.

c. will it.

A life estate only exists for the life of its owner or the life of some other designated person.

77

77. Which of the following is not a lien nor an encumbrance?

a. judgment
b. easement
c. homestead
d. trust deed

c. homestead

An encumbrance is an interest or right in real property which diminishes the value of the fee, but does not prevent conveyance by the owner. A lien is a type of encumbrance that creates a charge against property whereby the property is made security for the payment of a debt, referred to as attachment liens (e.g., trust deeds, taxes, judgments, etc.). Restrictions, easements, and reservations are encumbrances but not liens. Remember, all liens are encumbrances, but not all encumbrances are liens.

78

78. Which of the following liens covers all the property of a person?

a. specific item
b. mechanic's lien
c. general lien
d. none of these

c. general lien

General liens apply to all the lienee's real and personal property.

79

79. Which are specific liens?

a. Mortgage, attachment, tax liens, mechanic's liens
b. Mortgage, judgment, attachments, and tax liens
c. Mortgage, judgment, tax liens, mechanic's liens
d. Attachment, corporate bonds, decedent's debts, tax liens

a. Mortgage, attachment, tax liens, mechanic's liens

A specific lien affects only a particular property, such as a mortgaged house. General liens apply to all the line's real and personal property. Liens can also be statutory or equitable, voluntary or involuntary.

80

80. Taylor was injured while swimming in Smith's new pool. Taylor obtained a $2,500 judgment against Smith and recorded an abstract of judgment with the county recorder. This amounted to:

a. a voluntary lien.
b. a specific lien.
c. a general lien.
d. an equitable lien.

c. a general lien.

A judgment lien is a general lien.

81

81. Which of the following is true regarding encumbrances?

a. Encumbrances never affect value
b. Even beneficial restrictions can be cumbrances
c. All encumbrances are liens
d. noe of the above

b. Even beneficial restrictions can be cumbrances

CC&Rs are an example of a potentially beneficial encumbrance.

82

82. a lien imposed by court action would be:

a. voluntary.
b. general.
c. specific.
d. constructive.

b. general.

A lien imposed by court action is considered a judgment. Once it is recorded, it creates a general lien on all property of the debtor in the county in which it was recorded.

83

83. Easements are:

a. always an encumbrance.
b. always appurtenant.
c. liens.
d. encroachments.

a. always an encumbrance.

An easement is not a lien but would always be considered an encumbrance.

84

84. Land subject to an easement is said to be:

a. appurtenant thereto.
b. encumbered.
c. encroached upon.
d. restricted.

b. encumbered.

Land subject to an easement is said to be burdened or encumbered.

85

85. Which is the most common type of easement on residential property?

a. in gross
b. prescriptive
c. adverse
d. open-end

a. in gross

Normally, the telephone company or electric company has an easement over the back of your property to string wires or place telephone poles. This right is called an easement in gross.

86

86. A water company's right to run a water line through private property would most likely be:

a. riparian rights.
b. correlative rights.
c. an easement in gross.
d. a dominant tenement.

c. an easement in gross.

This is an example of a commercial easement in gross.

87

87. A parcel of land known as the servant tenement:

a. is the property benefited by the easement.
b. has an easement appurtenant attached thereto.
c. loses its status upon transfer of title.
d. is the property burdened by the easement.

d. is the property burdened by the easement.

The servant tenement is the property burdened by the easement.

88

88. If land has a servant tenement, it has a(n):

a. encumbrance.
b. flawed title.
c. appurtenance.
d. all of these.

a. encumbrance.

A servient estate is land on which an easement or other right exists in favor of an adjacent property (called the dominant tenement). The land subject to the easement (servient tenement) is said to be encumbered.

89

89. Ingress and egress apply to:

a. deed restrictions.
b. zoning.
c. easements.
d. homesteads.

c. easements.

The term ingress and egress are associated with the word access. To ingress means to go upon the land and to egress means to exit or leave the land.

90

90. Which of the following does not "go with the land"?

a. easement by necessity
b. easement by prescription
c. all easements
d. easement in gross

d. easement in gross.

An easement in gross attaches personally to the owner, not to the land.

91

91. Prescription most nearly pertains to:

a. enjoyment.
b. easements.
c. title.
d. conveyance.

b. easements.

Prescription is a term usually applied to easements. We refer to easements by prescription.

92

92. To obtain an easement by prescription, one must:

a. use the property.
b. live on the property.
c. maintain the property.
d. pay for the property.

a. use the property.

Prescriptive easements are obtained after using the property for five years. One does not need to occupy the property.

93

93. An easement by prescription may be lost by:

a. nonuse for five years.
b. merger of ownership between the dominant and servant tenements.
c. express release by the hole of the dominant tenement.
d. all of the above.

d. all of the above.

A prescriptive easement may be lost by nonuse for five years, or from express release by quitclaim deed signed by the holder of the dominant tenement, or by mutual agreement of the parties.

94

94. An easement may be created for what length of time?

a. perpetuity
b. the lifetime of a person
c. a term of years
d. any of these

d. any of these

An easement may be created for any length of time.

95

95. An easement differs from a license in that a license:

a. must be created by written instrument.
b. is of indefinite duration.
c. may be assigned.
d. may be revoked.

d. may be revoked.

A license is the personal, revocable, nonassignable permission to do some act on the land of another. An easement cannot be revoked.

96

96. Mr. Coronado has an easement granted by the government to extract minerals on a piece of property. Mr. Smith acquired the adjacent land and put up a fence which blocked Mr. Coronado's access. Regarding Smith's actions:

a. Mr. Coronado could sue for damages
b. Mr Smith and the right to put up the fence
c. Mr. Coronado has no rights
d. Mr. Smith could have Mr. Coronado arrested for trespassing

a. Mr. Coronado could sue for damages

Mr. Coronado had an implied easement to cross the Smith's land to get to his land. Could also be an easement by necessity.

97

97. A judgment will be most effective in the county where the:

a. judgment was originally rendered.
b. defendant resides.
c. plaintiff resides.
d. judgment is recorded.

d. judgment is recorded.

A judgment has no legal effect until recorded, and then only to the extent it is recorded in a county in which the defendant owns real property.

98

98. Which of the following must be regarded to be effective?

a. easement
b. judgment
c. grant deed
d. none of these

b. judgment

Although a judgment is valid when awarded, it is only effective when properly recorded.

99

99. A judgment that has been recorded would be a(n):

a. involuntary lien.
b. superior lien.
c. equitable lien.
d. inferior lien.

a. involuntary lien.

A judgment lien is an involuntary lien.

100

100. A court order prohibiting an act from being done is a(n):

a. injunction.
b. judgment.
c. attachment.
d. estoppel.

a. injunction.

An injunction is an order or decree of a court of equity prohibiting some act, or compelling an act to be done.

101

101. The seizure of property prior to a judgment is known as:

a. excessive force.
b. an attachment.
c. a seizure execution.
d. serving the judgment.

b. an attachment.

An attachment is the process by which real or personal property of a defendant in a lawsuit is seized and retained in the custody of the law for satisfaction of the judgment.

102

102. An attachment is:

a. a judgment.
b. an addition.
c. a lien.
d. a fixture.

c. a lien.

An attachment is classified as a lien.

103

103. An attachment lien is good:

a. forever.
b. for two years.
c. for three years from the date of levy.
d. for five years.

c. for three years from the date of levy.

An attachment lien is good for three years from the date of levy, and may be renewed.

104

104. Of the following, which lists the events in their proper order?

a. judgment, execution, attachment
b. judgment, attachment, execution
c. execution, judgment, attachment
d. attachment, judgment, execution

d. attachment, judgment, execution

The plaintiff gets an attachment lien before entry of the judgment, and thus is assured of the availability of the defendant's property for eventual execution in satisfaction of the claim.

105

105. The Statute of Limitations on action for renewal of an encroachment is:

a. one year.
b. two years.
c. three years.
d. five years.

c. three years.

The party being encroached upon must bring legal action for removal within three years of the discovery of the encroachment.

106

106. The eave of your neighbor's new house hangs six inches over your land. This describes a(n):

a. encroachment.
b. easement.
c. private nuisance.
d. encumbrance.

a. encroachment.

An encroachment is an unauthorized invasion or intrusion of an improvement of other real property onto another's property.

107

107. Which of the following may file a valid mechanic's lien:

a. architect
b. truck driver
c. subcontractor
d. all of these

d. all of these

A mechanic's lien exists in favor of every person who contributes to the work of improvement. The Civil Code covers all mechanics (skilled workers), material men, contractors, subcontractors, lessors of equipment, artisans, architects, registered engineers, licensed land surveyors, machinists, builders, teamsters, and draymen (truck drivers).

108

108. Mechanic's liens are based upon:

a. specific liens.
b. genreal liens.
c. voluntary liens.
d. none of the above.

a. specific liens.

A mechanic's lien only affects the property of the party against whom the lien filed.

109

109. Mechanic's liens are based upon:

a. English common law
b. the California Civil Code.
c. the Business and Professions Code.
d. Federal mechanic's lien law.

b. the California Civil Code.

Mechanic's lien law is statutory law contained in the California Civil Code.

110

110. A mechanic's lien has advantages over other types of liens in that:

a. it has priority over recorded trust deeds.
b. it has priority over certain other types of liens.
c. its effective date is the date work commenced.
d. its effective date would normally be prior to the recording date.

c. its effective date is the date work commenced.

The effective date of a mechanic's lien is the date of commencement of work rather than the filing date. This would give them priority over subsequently recorded liens.

111

111. In new construction financing, when does the lender usually release the final payment to the borrower?

a. When work is completed
b. When the owner accepts the property
c. When the lien period expires
d. When the Notice of Completion is recorded

c. When the lien period expires

The lender will not release final payment until the lien period has expired.

112

112. A completion bond would be for the protection of the:

a. subdivider.
b. contractor.
c. purchaser.
d. lender.

d. lender.

Some lenders require an owner to provide a completion bond assuring the lender that the development will be completed whether or not the owner pays the contractor.

113

113. After paying his general contractor in full, a property owner files a notice of completion. Which of the following is correct?

a. Mechanic's liens may not be filed.
b. A notice of non responsibility must be filed to protect the owner.
c. As long as work has not stopped, workers may file mechanic's liens.
d. Unpaid workers can file mechanic's liens up to 30 days after the owner files a notice of completion.

d. Unpaid workers can file mechanic's liens up to 30 days after the owner files a notice of completion.

A notice of completion is filed to give public notice that a construction job has been completed and that mechanics' liens must be filed with 30 days.

114

114. A property owner would post a notice of non responsibility to:

a. perfect a security instrument.
b. protect against unauthorized work.
c. protect against judgments.
d. all of these.

b. protect against unauthorized work.

A "notice of non responsibility" is designed to relive a property owner from responsibility for the cost of unauthorized work done on their property or materials furnished for such a project.

115

115. A mechanic's lien filed today would undoubtedly take precedence over:

a. a mortgage filed yesterday.
b. an unrecorded deed delivered last week.
c. a tax lien filed tomorrow.
d. none of the above.

b. an unrecorded deed delivered last week.

A mechanic's lien dates back to the commencement of work. It does have precedence over deeds, whether they are delivered or recorded.

116

116. the difference between a judgment lien and a mechanic's lien is:

a. mechanic's liens may take priority earlier than the date they are recorded.
b. judgment liens are involuntary liens.
c. judgment liens are not enforceable until recorded.
d. mechanic's liens are crated by statute.

a. mechanic's liens may take priority earlier than the date they are recorded.

The effective date of a mechanic's lien is the date the work began on the property. A judgment becomes effective and takes priority when it is recorded.

117

117. Mr. Friedman purchased real property on which there was an old home. He removed the run down home and had the lot graded.He immediately obtained a construction loan secured by a deed of trust. During the construction period, a painter who had not been paid filed a mechanic's lien. Which of the following is correct?

a. The mechanic's lien takes priority over the trust deed because the priority dates back to when the construction actually began.
b. The trust deed takes priority because it was recorded before completion of construction.
c. The trust deed takes priority because it was recorded prior to the mechanic's lien.
d. Mechanic's liens always take priority over trust deeds.

a. The mechanic's lien takes priority over the trust deed because the priority dates back to when the construction actually began.

Since the improvements began prior to recordation of the trust deed, all materials and labor contributors have priority over the trust deed.

118

118. Conditions differ from covenants in which of the following ways?

a. Only conditions "run with the land."
b. Covenants cannot be created by grant.
c. Conditions can only be created by grant.
d. Only covenants restrict the use of the land

c. Conditions can only be created by grant.

A condition is a qualification of a grant of estate and can only be imposed at the time of the grant. A covenant, however, can be imposed at another time by mutual agreement. Both conditions and covenants can "run with the land."

119

119. Which of the following statements concerning deed restrictions is correct?

a. A covenant includes conditions and equitable servitudes.
b. A violation of a condition can result in forfeiture of title to real property.
c. Private restrictions must be for public health, safety, and general welfare.
d. Covenants are more restrictive and costly for the owner than conditions.

b. A violation of a condition can result in forfeiture of title to real property.

A condition is any fact or event which, if it occurs or fails to occur, automatically creates or extinguishes a legal obligation. If a condition is violated, the owner may be forced to forfeit the tittle. A covenant is only a promise. If a person fails to adhere to a covenant, it will result in a cause of action for damages, but will not automatically extinguish the owner tittle.

120

120. Deed restrictions:

a. encumbrances.
b. general liens.
c. specific liens.
d. all of these.

a. encumbrances.

CC&R's are encumbrances but not liens.

121

121. A covenant in Johnson's deed states that he may not operate a dog kennel on the property. Johnson proceeds to build a commercial dog kennel. Adjoining land owners would have recourse by:

a. taking Johnson's property.
b. suing Johnson for damages.
c. seeking an injunction.
d. filing criminal charges.

c. seeking an injunction.

An injunction would compel Mr. Johnson to close the kennel.

122

122. CC&R's are most likely to be found in:

a. deeds.
b. notes.
c. title policies.
d. loan documents.

a. deeds.

CC&R's are found in deeds.

123

123. Deed restrictions are created by:

a. governments.
b. grantors.
c. cities and counties.
d. all of those.

b. grantors.

Deed restrictions (CC&R's) are created by grantors in their deeds.

124

124. Deed restrictions based upon race are:

a. illegal.
b. voidable.
c. valid.
d. void.

d. void.

Deed restrictions based upon race have no effect whatsoever.

125

125. All of the following may use the power of eminent domain EXCEPT:

a. railroads
b. power companies
c. sanitation districts
d. Bureau of Real Estate

d. Bureau of Real Estate

Eminent domain is the right of government (both state and federal), public corporations (school districts, sanitation districts), public entities, and public service corporation (railroads, power companies) to take private property for a necessary public use. The Bureau of Real Estate (BRE) does not have this power.

126

126. When a government body takes private land for public use, it is accomplished through the right of:

a. rescission.
b. police power.
c. eminent domain.
d. reversion.

c. eminent domain.

Eminent domain is the right of the government (such as a city or county), to take private property for necessary public use, with just compensation paid to the owner.

127

127. Which of the following is an example of police power?

a. zoning
b. building codes.
c. health and safety codes.
d. all of these

d. all of these

Police power is the authority of the state to adopt and enforce laws and regulation to promote and support the public health, safety, morals and general welfare.

128

128. A power granted by an enabling act refers to:

a. zoning.
b. eminent domain.
c. fair housing laws.
d. all of these.

a. zoning

Zoning is the regulation of structures and uses of property within designated district or zones. Zoning regulates and affects such things as use of the land, lot sizes, types of structure permitted, building heights, setbacks and density. Counties and/or municipalities generally enact their own zoning ordinances pursuant to an enabling act of the state.

129

129. Which of the following is an example of involuntary alienation?

a. sale for unpaid taxes
b. eminent domain
c. foreclosure sale
d. all of these

d. all of these

Involuntary alienation takes place when property is sold against the owner's will.

130

130. A property owner, whose house is located next to the landing strip of a small airport, successfully sued and received judgment against the airport, forcing them to buy his house. This known as:

a. equitable severance.
b. inverse condemnation.
c. condemnation.
d. eminent domain.

b. inverse condemnation.

Inverse condemnation is an action brought by a person whose property has been effectively taken, substantially interfered with, or taken without just compensation.

131

131. A property owner's petition for rezoning is rejected by the city planning commission. He/she:

a. may appeal to the county planning commission.
b. may appeal to the municipal court claiming an unjust ruling.
c. may appeal to the city council.
d. has no recourse and may not apply again later.

c. may appeal to the city council.

An appeals is available through the city council. Legal action would be the next step.

132

132. The city's master plan would include:

a. access to water, drainage and sewage.
b. subdivision design.
c. future freeways.
d. all of these.

d. all of these.

The city's master plan is comprehensive plan to guide the long-term physical development of a particular area.

133

133. When the local building authority permits an inconsistency to the construction, systems or standards within applicable building codes, it is referred to as a(n):
a. infraction.
b. exemption.
c. permit.
d. variance.

d. variance.

A variance is an exception to the zoning law.

134

134. Property once zoned as commercial is re-zoned as residential. this is referred to as:

a. spot zoning.
b. split zoning.
c. down zoning.
d. up zoning.

c. down zoning.

Down zoning is action taken by local government to reduce the allowable density for a parcel of land, for example, from commercial to residential.

135

135. A negative declaration would indicate:

a. a negative influence of the development on the environment.
b. no significant influence of the development on the environment.
c. greater operating expenses than income.
d. a developer's poor financial status to protect purchasers.

b. no significant influence of the development on the environment.

Environmental Impact Reports (EIR) may be required by local government prior to approval of the map for a subdivision. If it is determined that the proposal will NOT have a potentially significant adverse affect, the city or county prepares a negative declaration prior to making a decision on the development.

136

136. The designation "M" on a zoning map would stand for:

a. multiple units.
b. massive population.
c. manufacturing.
d. mobile homes.

c. manufacturing.

The zoning designation "M" most likely stand for manufacturing.

137

137. In the event of a conflict between local building codes and the Health and Safety Code, which would prevail?

a. Health & Safety Code
b. local building code
c. the more stringent of the two.
d. the one selected after a hearing.

c. the more stringent of the two.

This is always the rule.

138

138, All the following statements are true about zoning EXCEPT:

a. Violations of zoning ordinances may render title unmarketable.
b. Zoning laws are generally enforced through building permits.
c. Zoning laws are concerned with regulating property values.
d. Zoning is retroactive.

d. Zoning is retroactive.

Zoning laws are NOT retroactive.

139

139. Zoning that allows residential property to exist on land zoned for industrial use is called:

a. bulk zoning.
b. incentive zoning.
c. cumulative zoning.
d. directive zoning.

c. cumulative zoning.

Cumulative zoning permits higher uses (e.g., residential) to exist on land zoned for lower uses (industrial), but lower uses cannot occupy higher-zoned land.

140

140. California's housing and construction are regulated by:

a. local building codes.
b. State Contractor's license laws.
c. the State Housing Act.
d. all of the these.

d. all of these.

The State Contractor's license law, State Housing Act, and local building codes are all tools use to enforce California housing and construction.

141

141. A property owner intends to build an addition onto the back of his house. He should check:

a. CC&R's.
b. local building codes.
c. zoning ordinances.
d. all of these.

d. all of these.

A property owner should check all of these.

142

142. What is a commercial acre?

a. An acre minus space of streets and parking.
b. An acre minus space for warehouse structures.
c. An acre minus space for all housing accommodations.
d. An acre minus space for schools and emergency services.

a. An acre minus space for streets and parking.

A commercial acre is that portion of an acre of newly subdivided land remaining after dedication for streets, sidewalks, parks and so on.

143

143. Which of the following zoning classifications would permit the construction of a three story residential dwelling?

a. A-4
b. C-4
c. R-3
d. M-3

c. R-3

A three story residential dwelling would be classified as "multi-family residential," R-3. "A" designated agricultural zoning. You may see another question using "trip-plex" which is still R-3.

144

144. Jack leases a single family dwelling property from Mr. Michaels. After the lease agreement is signed and jack moves in, Mr. Michaels insists that Jack sign a contract agreeing to make substantial capital improvements to the property. This requirement by the lessor would render the lease contract:

a. valid.
b. voidable by the lessor.
c. voidable by there lessee.
d. void.

c. voidable by the lessee.

This contract would be voidable on the part of the lessee, not the lessor. The lessor cannot change or add to the lease contract after it is signed.

145

145. A general contractor hired a subcontractor to install the hardwood floors in a home under construction. If the subcontractor had to file a mechanic's lien in order to get paid, the mechanic's lien would date back to the date: (relocate)

a. work began on the house.
b. work began on the hardwood floors.
c. work ended on the house.
d. work was completed on the hardwood floors.

a. work began on the house.

A mechanic's lien dates back in priority to the beginning of any work on the project; not the date the individual mechanic performs his labor.

146

146. Which of the following are ways in which the government has control over real property?

a. VA and FHA agencies
b. Real estate commissioner
c. Building and zoning
d. All of the above

d. All of the above

There are many government controls (i.e., building codes, zoning, Subdivision Map Act). The VA and FHA exert control by requiring minimum property requirements before guaranteeing or insuring loans. The real estate commissioner has the authority to approve new subdivisions.

147

147. Steve has an old building where he runs his business. The city has just condemned the property through eminent domain. In this case:

a. The city pays only just compensation.
b. The city pays compensation of the property and separate compensation for his stock-in-state.
c. The city must pay compensation for the property, stock-in-trade and cost of moving.
d. The city does not need to pay compensation.

a. The city pays only just compensation.

When a city condemns a property by means of eminent domain, it is required to pay just compensation for the property only. "Just compensation" is usually the fair market value of the property.

148

148. Joan Black owned property in severalty as a single woman. She later married and owned the property under her marriage name, Joan Redding. This may be confusing in the future because:

a. it will create a cloud on the title.
b. it may cause the property to automatically become community property.
c. it automatically creates a joint tenancy.
d. it may jeopardize her ownership rights.

a. it will create a cloud on the tittle.

this creates a cloud on the tittle. It can be cleared by Joan producing her marriage certificate or other proof that she is the same person.

149

149. An owner of a property which was located near an airport was constantly bothered by the noise of low flying aircraft. He wanted to bring court action and force the city to condemn the property because of the noise. This would be an example of:

a. Condemnation
b. Inverse condemnation
c. Escheat
d. Eminent domain

b. Inverse condemnation

Inverse condemnation: An action for just compensation brought by a person whose property has been effectively taken, substantially interfered with, or taken without just compensation. For example, when a governmental authority announces it will condemn an owner's property and then unduly delays in taking the property, the owner can bring legal action to force a condemnation and payment for the taking.

150

150. If you were granted the right to purchase a business with ready product, business plans, development plans and marketing plans, this would be a(n):

a. Business Opportunity
b. Franchise
c. Grant Deed
d. Estate for Years

b. Franchise

A franchise agreement is an agreement between a franchisor and franchisee whereby the franchisee is given the right to distribute goods and services under a marketing plan prescribed by the franchisor.

151

151. If you went to the city/county and wanted to change the electrical requirements, specific to the structure, from the standard normal requirements, this would be a(n):

a. Variance
b. Exception
c. Estoppel
d. Emblement

a. Variance

If the city or county allows you to do something on your property which differs from the building codes, it is called variance.

152

152. Where there is a conflict between local building codes and the State Housing Act, which will prevail?

a. Local building codes in unincorporated areas.
b. Local building codes, since they are more specific than the State Housing Act.
c. The one with the highest safety standards.
d. State law has precedence.

c. The one with the highest safety standards.

Usually when there is a conflict, you must follow the most restrictive. Since you cannot tell which is more restrictive, you must follow the law with highest safety standards.