ch4&5

Question 1

The process of transferring real property from one individual to another is known as:

Answer 1

alienation.

Alienation is the transfer of real property from one person to another.

Question 2

In Nevada, the most common document used to transfer title to real property is a:

Answer 2

grant, bargain and sale deed

Question 3

The government transfers title of government-owned lands to private owners by way of a:

Answer 3

land patent.

A government entity would transfer property in fee simple through the use of a document known as a land patent.

Question 4

A cloud on a title is often removed by the execution of a:

Answer 4

quitclaim deed.

While a suit for quiet title may be filed to remove the cloud, the most often used method of removal is by execution of a quitclaim deed.

Question 5

Which one of the following deeds will be used for a court-ordered foreclosure?

Answer 5

Sheriff’s

A sheriff’s deed is used to transfer property to the highest bidder at a court-ordered foreclosure sale.

Question 6

The words required to convey title are known as the:

Answer 6

granting clause.

In order to convey title to real property, every deed must have a granting clause. The granting clause contains the actual words of conveyance.

Question 7

The transfer of real property must include:

Answer 7

a valid deed.

delivery and acceptance of the deed.

Transfer of real property must include a valid deed that has been delivered and accepted. A deed does not have to be recorded in order for the transfer to be effected.

Question 8

The purchaser who acquires clear title from the seller is the:

Answer 8

grantee.

Question 9

The right of the government to take private property for public use is known as:

Answer 9

eminent domain.

Question 10

A person who dies without a valid will is said to have died:

Answer 10

intestate.

A person who dies without a valid will is said to have died intestate. To die with a valid will is to die testate.

Question 11

Which one of the following statements best describes a cloud on title?

Answer 11

Any condition or defect that will affect the ability to convey clear title.

A cloud on title is any condition or defect that will affect the ability to convey the property with clear title.

Question 12

A listing of all owners of record for a particular parcel of real property is known as:

Answer 12

a chain of title.

A complete listing of all interests in a property is called a chain of title. A condensed version is known as an abstract of title.

Question 13

In Nevada, a successful adverse possession lawsuit requires all of the following, EXCEPT:

Answer 13

the adverse possessor must NOT have paid any property taxes on the property adversely possessed during the period of possession.

One element of a successful suit for adverse possession is that the adverse possessor must have paid property taxes on the property adversely possessed.

Question 14

The gradual and imperceptible addition of soil to a riparian or littoral property is known as:

Answer 14

accretion.

Question 15

The gradual increase in riparian or littoral land by the recession of water is known as:

Answer 15

reliction.

Question 16

Which one of the following gives constructive notice of an interest in real property?

Answer 16

Recording

Recording gives constructive notice of an interest in the real property. Actual notice refers to an individual’s actual knowledge of an unrecorded interest.

Question 17

Which one of the following will NOT transfer an interest in real property?

Answer 17

Bill of Sale

A Bill of Sale transfers ownership of personal property, not real property.

Question 18

If no heirs can be found, the property of an intestate person will:

Answer 18

escheat to the state.

Question 19

The servient estate in an easement appurtenant is the property:

Answer 19

upon which the easement is placed.

With an easement appurtenant, the property upon which the easement is placed is the servient estate. The property benefiting from the easement is the dominant estate.

Question 20

An easement is:

Answer 20

an encumbrance on real property.

An easement is a nonpossessory use right in another’s real property and is therefore an encumbrance.

Question 21

The phrase “running with the land” is often used when describing:

Answer 21

an easement appurtenant.

“Running with the land” is often used when describing an easement appurtenant. In other words, an appurtenant easement will normally transfer with the property.

Question 22

Right of way easements, such as those acquired by public utilities, are:

Answer 22

easements in gross.

An easement in gross can be personal or commercial and benefits that person or company rather than an adjoining parcel of land. An easement in gross gives the owner of the easement the right to use real property for a particular purpose, but does not attach to or benefit a parcel of land.

Question 23

A distinguishing factor between a license and an easement is that a license:

Answer 23

can be revoked.

A license gives someone a right to make use of the property of another. A license is usually oral and can be revoked “at will” by the landowner giving the license.

Question 24

The homestead exemption will exempt the residence from attachment and execution or a forced sale for unpaid debts. It is only extended to the amount of equity in the property that does not exceed:

Answer 24

the equity as established by the market value of the property, minus all senior liens and encumbrances, not to exceed $605,000.

In Nevada, the homeowner exemption exempts the residence from attachment and execution or forced sale resulting from unpaid debts of the homeowner, and extends only to that amount of equity in the property held by the owner not in excess of $605,000.

Question 25

A lien is a type of:

Answer 25

financial encumbrance. A lien is a financial encumbrance upon the property. A lien may be voluntary or involuntary, specific or general.

Question 26

A person who provides labor, material, or professional services for the improvement of real property may be entitled to file a ___________ against the property.

Answer 26

mechanic's lien A mechanic's lien is a statutory lien on a specific property for labor, materials, or professional services rendered.

Question 27

Hypothecated is best defined as:

Answer 27

the property interest was pledged as security to a creditor To hypothecate is to pledge property as security to a creditor without delivering possession of the property, regardless of the purpose of the debt.

Question 28

A lien for property taxes is an involuntary, _________ lien against the property.

Answer 28

specific Property taxes are involuntary, specific liens against real estate.

Question 29

What document is issued by the court to order the sale of real estate to satisfy a debt?

Answer 29

Writ of Execution A Writ of Execution is the document executed by a court ordering a property be sold to satisfy a debt.

Question 30

When the easement in gross is commercial, it can be:

Answer 30

assigned. An easement in gross that is commercial is assignable. For example, when a cable company is purchased by another cable company, any easements in gross will be assigned to the purchasing cable company.

Question 31

The right to sever or take something from land belonging to someone else is known as:

Answer 31

a profit. The difference between a profit and an easement is that an easement creates a right of use and a profit allows the removal of something from the land, such as timber.

Question 32

A noxious odor or unsightly condition on a neighboring property that interferes with a property owner's reasonable use and enjoyment of his or her property is known as:

Answer 32

a nuisance. A nuisance is not an encumbrance to real property, rather it is a violation of an owner's possessory rights.

Question 33

Which one of the following is a provision in a deed that limits the use of private property?

Answer 33

Deed restriction Deed restrictions are limitations of use of private property imposed by some previous owner. Most subdivision developers will impose a list of restrictions contained within the CC&Rs, thereby binding all owners within the subdivision to comply with certain rules relating to the type of structures allowed, property maintenance requirements, prevented activities, etc.

Question 34

When a portion of a property is sold to another and is found to be landlocked, the property owner will most likely:

Answer 34

get an easement by necessity over the adjoining property. An easement by necessity, also called an easement by implication, occurs when a property is divided and the grantor neglects to reserve an easement for the benefit of the property conveyed.

Question 35

A deed of trust is:

Answer 35

a security instrument similar to a mortgage. A deed of trust is the security instrument (similar to a mortgage) deeding or giving a trustee (third party) one of the sticks in the bundle of rights, that of the right to sell the property for the beneficiary-lender in the event of trustor (borrower) default.

Question 36

Generally, lien priority is determined by:

Answer 36

the date the lien is recorded. Generally, the lien that was recorded first will be paid first.

Question 37

In Nevada, special lien priority is given to:

Answer 37

property tax liens. special assessment liens. In Nevada, property tax liens and special assessment liens have first priority over all other liens. Mechanic's liens also enjoy a special exception, but their priority is determined by the date that the work began, rather than the date the lien was recorded.