Custom Quick CHapter 3 Flashcards
(122 cards)
1
Q
In the planning and engineering of a tract for subdivision purposes, a "cul-de-sac" is frequently employed. This term is in reference to the installation of A) recreation areas. B) drainage. C) streets. D) sewage disposal.
A
C) streets.
2
Q
Which document is of importance in filing a mechanic's lien? A) Notice of Completion B) Notice of Cessation of Labor C) Notice of Nonresponsibility D) Any of these
A
D) Any of these
3
Q
The sidewalks in a condominium are A) all of these. B) common areas. C) tarmacs. D) made at least four feet wide.
A
B) common areas.
4
Q
Police power is a governmental right and would result in
A) deed restrictions in a subdivision.
B) judgments.
C) the taking of private property for the construction of a highway.
D) zoning standards.
A
D) zoning standards.
The government’s police power is the basis for zoning ordinances. The taking of private property is based on the government’s rights of eminent domain. Judgments result from the power of the judicial branch of government. Deed restrictions are private restrictions.
5
Q
A builder bought a parcel of real estate that had an old home on it. The builder later removed the dilapidated old home, had the lot graded, and immediately obtained a construction loan secured by a deed of trust. During the construction period a painter was unpaid and filed a mechanic’s lien. Which statement is correct?
A) The trust deed takes priority because it was recorded before construction was completed.
B) The mechanic’s lien applies secondarily to the trust deed.
C) Mechanics’ liens always take priority over trust deeds.
D) The mechanic’s lien takes priority over the trust deed because the priority dates back to the time of start of construction.
A
D) The mechanic’s lien takes priority over the trust deed because the priority dates back to the time of start of construction.
Any mechanic’s lien takes its priority as of the date work first started on that project as a whole. Removing an old building from a site is a part of the work required for the construction of a new building. In order for a trust deed to take priority over a mechanic’s lien, the trust deed must be recorded before any work starts on the site.
6
Q
In regard to property taxes, a tax lien would be A) on par with all others. B) superior to mortgages. C) inferior to mortgages. D) inferior to other private parties.
A
B) superior to mortgages.
7
Q
Which is NOT a specific lien? A) Mechanic's lien B) Blanket mortgage C) Judgment lien D) Unrecorded property tax lien delinquent from prior years
A
C) Judgment lien
A judgment lien is a general lien on all property of the debtor not otherwise exempt by law. A property tax lien, a mechanic’s lien, and a blanket mortgage are all specific liens.
8
Q
Davidson has an easement on Parkins's property. If Davidson is not a property owner, her easement is a(n) A) easement in gross. B) nonpossessory encroachment. C) appurtenant easement. D) restrictive easement.
A
A) easement in gross.
Davidson has a personal right to use Parkins’s property (servient tenement). Since Davidson does not own property, and therefore there is no dominant tenement, it is an easement in gross.
9
Q
Real property taxes for the 2005-2006 fiscal year become a lien on A) November 1, 2005. B) December 10, 2005. C) January 1, 2005. D) February 10, 2006.
A
C) January 1, 2005.
10
Q
The right to use and enjoy another's property short of an estate is an example of a(n) A) easement. B) subordination clause. C) leasehold. D) deed.
A
A) easement.
An easement is the right to use another’s property without payment. Although it is an interest in real property, it is not a “possessory” interest and therefore is not an estate.
11
Q
Four people own a property as joint tenants. If two joint tenants die, what would be a TRUE statement?
A) One title will be held by the remaining joint tenants
B) The devisees and heirs could rent the property as tenants in common with the other two
C) Each survivor would own a separate and divided interest
D) A separate legal title to a tenancy in common would be held
A
A) One title will be held by the remaining joint tenants
A characteristic of a joint tenancy is that it is a “single” estate, that is, the original joint tenants, or the surviving joint tenants, own the estate as though they were one person.
12
Q
Which would be LEAST likely to make the title of real property unmarketable?
A) Cloud on title through adverse possession of the property
B) Public restrictions under zoning ordinances and building codes
C) A lis pendens filed by the wife of the owner
D) Private restrictions in a deed
A
D) Private restrictions in a deed
Deed restrictions, as a rule, are initiated for the protection of property owners. They are reasonable limitations on ownership to safeguard property values. An owner is very unlikely to place restrictions on a property that would make the property unmarketable. Zoning is a legally imposed restriction on the use of the site. A site’s highest and best use may not necessarily be any of the uses designated by a zoning ordinance, thereby causing the property to be more unmarketable than in the case of private deed restrictions.
13
Q
The housing and construction industry in California is governed by laws that include the
A) State Housing Law, Local Building Code, and Real Estate Law.
B) Contractor License Law, Local Building Code, and State Housing Act.
C) Health and Safety Code, State Housing Law, and Real Estate Law.
D) Housing and Community Development Act, Real Estate Law, and Health and Safety Code.
A
B) Contractor License Law, Local Building Code, and State Housing Act.
14
Q
Deed restrictions for a subdivision are created by A) the local building commission. B) local building statutes. C) the planning commission. D) the developer or grantor.
A
D) the developer or grantor.
Deed restrictions are created by the grantor in the deed. For a new subdivision this would be the developer.
15
Q
The customary procedure used to enforce private restrictions on real property is A) judgment. B) injunction. C) desist and refrain order. D) indictment.
A
B) injunction.
An injunction is a court order restraining or requiring performance by a party (e.g., performing acts required by property covenants or refraining from acts restricted by such covenants).
16
Q
Which is the largest parcel of land? A) One mile by two miles B) 5,280′ × 10,560′ C) 1/10 of a township D) Four square miles
A
D) Four square miles
5,280′ × 10,560′: 5,280′ (1 mile) × 10,560′ (2 miles) = 2 sq. mi.
1/10 of a township: 0.10 (1/10th) × 36 sq. mi. (township) = 3.6 sq. mi.
Four square miles: 4 sq. mi.
One mile by two miles: 1 mile × 2 miles = 2 sq. mi.
17
Q
How many square miles is a township?
A
36
18
Q
How many feet are in a mile?
A
5,280
19
Q
A commercial property no longer has a conforming use because it exists in an area where the zoning has been changed. The owner of this property has suffered a hardship because of the zoning change. What could the owner obtain as an exception to this new zoning that would be a benefit to him? A) A conditional use permit B) A variance C) Spot zoning D) Any of these
A
D) Any of these
20
Q
The term potable refers to A) septic tanks. B) trust deeds. C) water. D) earth fill.
A
C) water.
21
Q
Deed restrictions are A) constructive liens. B) all of these. C) general liens. D) encumbrances.
A
D) encumbrances.
22
Q
Escheat is a legal term meaning A) an agent's license has been revoked. B) that a fraud has been committed. C) property under a trust deed may be reconveyed. D) property has reverted to the state.
A
D) property has reverted to the state.
23
Q
The second installment of real property taxes would become due and delinquent on which date? A) November 1 and February 1 B) December 10 and April 10 C) February 1 and April 10 D) December 10 and February 1
A
C) February 1 and April 10
24
Q
In most cases, the least satisfactory place to obtain a legal description of property is A) escrow instructions. B) a deed. C) a preliminary title report. D) a real property tax bill.
A
D) a real property tax bill.
Many counties in California use a description in the tax bill other than a legal description-that is, an “Assessor’s Parcel Number.”
25
What is the difference between real property taxes and assessment bonds?
A) Assessments have superiority over property taxes.
B) Assessments are subordinate to real estate taxes.
C) Special assessments are used for local improvements.
D) Special assessments are levied by special improvement districts only.
C) Special assessments are used for local improvements.
26
```
Mr. Able owned an unencumbered lot and decided to build. On May 2, the lumber company delivered $1,000 worth of lumber to the property. On May 3, he obtained a construction loan for $30,000 from People's Savings and Loan Association. The loan was recorded after the lumber was delivered. In June, more lumber was delivered and the completed structure was painted. In August, Mr. Able moved into the house. The lumber company could not collect its balance of $2,000 and the painter could not collect $4,000 for the painting. They each filed a mechanic's lien. If the property is sold at a foreclosure sale and nets $30,000, the amount received by People's Savings and Loan would be
A) $30,000.
B) $29,000.
C) $24,000.
D) nothing.
```
```
C) $24,000.
$30,000 Net from foreclosure
–6,000 Due materialmen and mechanics*
$24,000 Balance to lender
*Since material was delivered prior to recording of the deed, all lien claimants have priority over the trust deed.
```
27
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The length of distance of a parcel abutting a thoroughfare would be considered the
A) width of a lot.
B) frontage of a lot.
C) taxable width.
D) front foot of a lot.
```
B) frontage of a lot.
28
```
A holder of a life estate can do all of these things with the estate EXCEPT
A) encumber it further.
B) sell it.
C) will it.
D) rent or lease it.
```
C) will it.
The holder of a life estate may do anything with his interest except will it, unless the length of the estate is measured by the life of a third party.
29
Private restrictions placed by a landowner may be in the form of covenants or conditions restricting or limiting the use of the land. Private restrictions may be created by
A) written agreement or zoning ordinance.
B) deed only.
C) deed or written ordinance.
D) deed or written agreement.
D) deed or written agreement.
30
In addition to municipal or county controls imposed through zoning ordinances and the Subdivision Map Act, other government controls are exercised by
A) agencies that insure and guarantee FHA and VA loans.
B) the California Bureau of Real Estate.
C) health, fire, and safety requirements.
D) all of these.
D) all of these.
31
The most distinguishable characteristic of personal property is
A) all of these.
B) being incidental or appurtenant to land.
C) mobility.
D) being affixed to land as a permanent part of the land.
D) being affixed to land as a permanent part of the land.
32
```
The California sales tax applies to
A) all of these.
B) ad valorem taxation.
C) tangible personal property.
D) real and personal property.
```
C) tangible personal property.
33
Why is a legal description recommended in a sales contract?
A) The seller may have other properties in the area
B) The lender requests it
C) For the title company to locate the property
D) To help cooperating salespersons to find the property
A) The seller may have other properties in the area
Neither a real estate sales contract or even a deed is required to have a "legal description"—only an "adequate description." A description such as "My home in San Francisco" has been honored by a court when it could be shown that the grantor owned only one property in San Francisco. If the grantor had owned more than one parcel in that city, the court may not have been able to honor the deed. The reason a legal description is recommended is (1) it is the MOST adequate description, and (2) it is the best way to distinguish the specific property from all other properties.
34
```
Which "runs with the land"?
A) Stock in a mutual water company
B) All of these
C) Appurtenant easements
D) Covenants
```
B) All of these
All three of the choices given "run with the land." Covenants are encumbrances that remain on the land when the property is transferred. Stock in a mutual water company and appurtenant easements name real property rights that are transferred with the land when property is transferred.
35
```
The basic legal tool a city will use for a layout plan is
A) exceptions to general land usage.
B) a conditional use permit.
C) a variance.
D) zoning.
```
D) zoning.
The governing authority of a city has the power to adopt ordinances for the preservation and protection of public health, safety, morals, or general welfare. The basic legal tool a city will use for a layout plan is zoning, an exercise of the police power of government.
36
On or before June 30 each year, property for which owners are delinquent in their taxes is declared in default. This date is important because
A) the power of sale on or before June 30 starts the five-year period of redemption.
B) the occupant of the property must vacate the premises within 90 days.
C) all of these are true.
D) interest on the delinquent taxes will begin from December 10.
A) the power of sale on or before June 30 starts the five-year period of redemption.
Annually, the tax collector publishes a notice of sale of real property for which taxes are delinquent. This is not a sale but a declaration of default denoting the beginning of a five-year redemption period. This declaration of default must be made on or before June 30, usually the last business day of the month.
37
Which is a requirement of joint tenancy?
A) All parties must have equal interests.
B) All parties must have the same right of possession.
C) All of these
D) The words "taken in joint tenancy" must be next to the names of the joint tenants.
C) All of these
38
```
When there is a gradual build-up of land as the result of action of water, it is termed
A) erosion.
B) accretion.
C) avulsion.
D) dereliction.
```
B) accretion.
Accretion is the gradual build-up of land as the result of the action of water. Avulsion (opposite) is the sudden tearing away of land by the violent action of a water course. Erosion is gradual wearing away of land by current, wind, or tide. Dereliction is land left uncovered by the receding of water from its former bed. This process also called reliction.
39
Whatever the purpose of a land survey, the resultant description should contain
A) a specific length and direction of the sides of the property.
B) all of these.
C) a definite point of beginning and definite parcel corners.
D) the area in accepted units of measure contained within the described boundaries.
B) all of these.
40
```
Which would be the best description of a fee simple absolute estate?
A) Estate for years
B) Estate of inheritance
C) Greatest interest held in land
D) Owning property
```
C) Greatest interest held in land
Fee simple absolute estate: both estate of inheritance and greatest interest held in land apply; however, greatest interest held in land best describes the absolute estate.
41
A city has sold an assessment bond for the improvement of streets in a certain area. Properties within that area are assessed
A) by the area.
B) by the size of the lot.
C) in proportion to services or benefits that the land would receive.
D) by the number of lots in the subdivision.
C) in proportion to services or benefits that the land would receive.
Assessments for bonds sold to finance the improvement of streets are made to each property in accordance with the benefits to be derived by the property owner.
42
Assessed value for property tax purposes in California is the full cash value as of the tax roll for 1975-1976, plus a maximum annual inflationary factor increase up to
2%
43
```
The words ingress and egress are related to
A) easements.
B) fee title.
C) streams.
D) utilities.
```
A) easements.
44
```
What does ad valorem mean?
A) At will
B) According to value
C) To the use and benefit
D) For life
```
B) According to value
45
```
Eminent domain and police power are governmental rights established by law. Which action would NOT be considered police power?
A) Condemnation
B) Subdivision development regulations
C) Building regulations
D) Zoning laws
```
A) Condemnation
The use of the power of eminent domain is often referred to as condemnation. Building regulations, zoning laws, and subdivision development regulations are all examples of police power.
46
```
Which instrument requires a list of inventory of buildings on real property to be sold, conveyed, or insured?
A) None of these
B) Grant deed
C) Land contract
D) ALTA
```
A) None of these
Neither a land contract, grant deed, nor ALTA policy of title insurance requires a listing of the buildings or improvements. A legal description is all that is required.
47
```
A wife signs an agreement to sell community real property. The contract as it applies to her and her husband is
A) enforceable.
B) void.
C) voidable.
D) illegal.
```
C) voidable.
An agreement to sell would be unenforceable against the marital community if signed by one spouse only. It would be voidable by the nonconsenting spouse for one year. This type of contract is not considered void, because there is consent of one of the parties.
48
```
Which is the highest form of ownership?
A) Incorporeal freehold
B) Fee simple defeasible
C) Tenancy at will
D) Fee simple absolute
```
D) Fee simple absolute
49
```
A quiet-title action is defined as a
A) quitclaim deed.
B) foreclosure by court.
C) result of a "dummy" transaction.
D) procedure through court action to remove cloud on title.
```
D) procedure through court action to remove cloud on title.
50
A recorded notice of lis pendens
A) can be filed on any type of lawsuit.
B) can be removed from the records only by an order of the court.
C) does not directly affect the title to property of a person not directly a party to the court action.
D) would make it difficult to convey title.
D) would make it difficult to convey title.
A notice of lis pendens is a notice recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation, giving constructive notice to the world and thus preserving rights pending litigation. Property identified in a lis pendens would be difficult to sell. Although the general rule is that a person who is not a party to a court action is not affected by any judgment, that is not the case with a lis pendens: a buyer of a property with a lis pendens could lose title depending on the results of the lawsuit. A lis pendens is applicable only to lawsuits affecting the title or possession of real property. A notice of withdrawal of pendency of an action may be recorded by the person who recorded the lis pendens.
51
```
A fee simple estate, held in severalty, is real property in which the tenancy is
A) defeasible.
B) simple and absolute.
C) sole ownership.
D) held in common with others.
```
C) sole ownership.
An interest held in severalty is one that has been severed from all others and is held all alone. An ownership in severalty is a sole ownership. A fee simple estate can be either absolute or defeasible; therefore, these choices are incorrect answers.
52
```
Personal property presents certain problems to a broker. It becomes difficult to ascertain its ownership because it can
A) be alienated.
B) be hypothecated.
C) become real property.
D) do all of these.
```
D) do all of these.
When personal property (movable) becomes affixed to land it becomes real property (for example, fence posts when installed). Personal property may be conveyed (alienated) using a bill of sale, or hypothecated (pledged) as security for a loan.
53
```
A specified charge against real property that is used as security is defined as
A) a lien.
B) an easement.
C) subdivision restrictions.
D) zoning and planning.
```
A) a lien.
54
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"A charge imposed upon real property as security for a specific act" is a definition of
A) lien.
B) easement.
C) restrictive covenant.
D) encumbrance.
```
A) lien.
55
```
All of these are characteristics of a fee simple estate EXCEPT that it is
A) freely transferable.
B) of indefinite duration.
C) free of all encumbrances.
D) freely inheritable.
```
C) free of all encumbrances.
56
Which is a correct statement in respect to encumbrances on real property?
A) It is common practice for a buyer to accept a deed to encumbered property.
B) Title companies will not insure encumbered property.
C) Encumbrances are liens but not all liens are encumbrances.
D) A specific lien is always a voluntary lien.
A) It is common practice for a buyer to accept a deed to encumbered property.
Buyers accept title with some encumbrances, such as tax liens and public or private restrictions. Therefore all title insurance companies insure encumbered titles. All liens are encumbrances, but not all encumbrances are liens. Some specific liens are involuntary, such as property taxes.
57
Real property taxes on a condominium
A) do not include the value of common areas in assessment.
B) are billed to the entire project and prorated by the project manager.
C) are billed to the individual unit owners.
D) are a lien on the individual unit owner, but not on the individual unit.
C) are billed to the individual unit owners.
58
A "title plant" is
A) a collection of instruments affecting real estate ownership that is kept in the county recorder's office.
B) a false document found in title records that is intended to give wrong information.
C) none of these.
D) the ownership and lien records of property maintained by a title company.
D) the ownership and lien records of property maintained by a title company.
A title plant is a collection of records in the title company's office. These records are developed from information recorded at the county recorder's office.
59
```
Which of these are NOT liens?
A) Judgments
B) Private restrictions
C) Trust deeds
D) Taxes
```
B) Private restrictions
60
A money judgment given by a court is effective to create a lien
A) in the county where the judgment is obtained.
B) in the entire state by filing with the clerk of the court.
C) if recorded in the county where the defendant's property is located.
D) anywhere in the United States.
C) if recorded in the county where the defendant's property is located.
61
A joint tenancy can be created by deeds conveying undivided interests by
A) transfer from joint tenants deeding their interests to themselves and others as joint tenants.
B) all of these.
C) transfer from a wife deeding her separate property to herself and husband as joint tenants.
D) transfer from tenants in common deeding to themselves as joint tenants.
B) all of these.
62
```
The Pacific and Great Western Telephone Company has an easement on a property being sold by Broker Root, but is not mentioned in the deed. The easement is a(n)
A) general lien.
B) specific lien.
C) attachment.
D) encumbrance.
```
D) encumbrance.
Utility company easements are considered encumbrances to property. Since they restrict the use of the property and have nothing to do with money, they are not a liens.
63
```
An easement is a(n)
A) specific lien on real property.
B) general lien on real property.
C) encumbrance on real property.
D) equitable restriction on real property.
```
C) encumbrance on real property.
| An easement is an encumbrance, but not a lien or a restriction. Liens and restrictions are other types of encumbrances.
64
```
Which expense on a personal residence may be deducted from ordinary income for tax purposes?
A) Depreciation
B) Wear and tear
C) Property taxes and mortgage interest
D) General upkeep
```
C) Property taxes and mortgage interest
For income tax purposes, property taxes and mortgage interest on a personal residence are deductible from ordinary income. Depreciation, upkeep, and wear and tear are not allowable deductions on a personal residence.
65
```
Percolation refers to the
A) ability of a buyer to qualify for a loan.
B) depth of the foundation.
C) size of the water tank.
D) ability of the soil to absorb water.
```
D) ability of the soil to absorb water.\Percolation is the filtering process that occurs when water seeps through the ground. Water will percolate easily through a porous soil.
66
```
Which is a freehold estate?
A) Estate at will
B) Estate in fee
C) Estate at sufferance
D) Estate for years
```
B) Estate in fee
Freehold estates are either (1) fee simple estates or (2) life estates. The wrong answer choices here are all less-than-freehold estates: (1) estates for years; (2) periodic tenancies; (3) estates at will; and (4) estates at sufferance.
67
Involuntary alienation of an estate means
A) ownership of estates may be transferred by operation of law.
B) no one can be compelled to transfer title without giving consent.
C) the estate cannot be transferred without the consent of the owner.
D) aliens are forbidden to own estates in fee simple in California.
A) ownership of estates may be transferred by operation of law.
68
With respect to easements appurtenant, which statement is correct?
A) An easement always gives the rights of ingress and egress.
B) If the grantor conveys title to property, the easement passes automatically with the land.
C) The dominant tenement is the land burdened and benefited by the easement.
D) All encumbrances are liens but all liens are not encumbrances.
B) If the grantor conveys title to property, the easement passes automatically with the land.
Easements pass automatically upon transfer of the dominant tenement. The first statement is incorrect, as the dominant tenement is benefited, not burdened, by the easement. The second statement is incorrect, as an easement can include, besides rights-of-way, the right of receiving air, light, or heat; the right of using a wall as a party wall; or the right of flooding land, among other things. The third statement is incorrect, as an easement is an encumbrance but not a lien.
69
The lien of a recorded deed of trust is removed from the records
A) by posting of a surety bond.
B) when final payment has been made by the trustor.
C) by recordation of a grant deed.
D) when a reconveyance deed is recorded.
D) when a reconveyance deed is recorded.
70
The Subdivision Map Act provides primary responsibility for the physical aspects of the subdivision to the
A) State Department of Public Health.
B) real estate commissioner.
C) governing bodies of cities and counties.
D) state land commissioner.
C) governing bodies of cities and counties.
71
Which lien would most likely have had priority?
A) A trust deed executed March 27, 1998 and recorded March 29, 2004
B) A trust deed executed and recorded March 28, 2004
C) A mechanic's lien resulting from work started March 27, 2004
D) A public improvement assessment created April 15, 2004
D) A public improvement assessment created April 15, 2004
Assessment liens and real estate taxes will take priority over any other type of lien. This is true even though the assessment liens may be created subsequent to a recorded lien.
72
What is a difference between a mechanic's lien and a judgment lien?
A) Mechanics' liens may take priority before the recording date.
B) Judgment liens are involuntary liens.
C) Mechanics' liens are created by statute.
D) Judgment liens are not effective until recorded.
C) Mechanics' liens are created by statute.
Whereas mechanic's liens are created by statute, judgment liens are created by court decisions. Both may take priority before the recording date. Neither is effective as a lien until recorded. Both are involuntary liens.
73
Under the 1911 Street Improvement Act, funds may be raised by the local government, benefiting a subdivider, for all these purposes EXCEPT
A) payment for streets, walks, and curbs.
B) payment for sewers and water mains.
C) purchase of land for development.
D) payment for a drainage system.
C) purchase of land for development.
74
```
State-enabling legislation gives cities and counties various controls over real property. The enabling legislation gives to cities and counties all but
A) local planning and zoning ordinances.
B) lien and attachment laws.
C) subdivision and land-use regulations.
D) rent control and city codes.
```
B) lien and attachment laws.
The lien and attachment laws are created by the legislative bodies of the state. A state-enabling act gives legislative powers to local governing authorities, such as city councils and county boards of supervisors, to enact local ordinances.
75
```
What is always considered real property?
A) Grapes on vines sold under contract
B) Stock in a mutual water company
C) Cultivated crops sold but not yet harvested
D) Extracted minerals
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B) Stock in a mutual water company
Real property consists of (1) land, (2) things affixed to the land, (3) appurtenances, and (4) that which is immovable by law. Two examples of appurtenances are (1) easements appurtenant and (2) stock in a mutual water company. According to the Civil Code, cultivated crops would be personal property if already sold, mortgaged, or growing on leased land (emblements).
76
All of these statements are true regarding an appurtenant easement EXCEPT
A) the easement would run with the land.
B) there must be at least two tracts of land under separate ownership.
C) the dominant tenement would benefit and the servient tenement would be burdened.
D) the dominant tenement must abut the servient tenement at the border.
D) the dominant tenement must abut the servient tenement at the border.
The dominant tenement may have the right to cross over three or four lots in one tract and not all of the servient tenements would be immediately adjacent (contiguous) to the dominant tenement.
77
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In a subdivision, what is considered an "offsite" improvement?
A) Septic tank
B) Barn
C) Streets and curbs
D) Private well
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C) Streets and curbs
78
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A deed to an unlocated easement is
A) void.
B) void for lack of certainty.
C) valid.
D) invalid.
```
C) valid.
A deed conveying the fee title to an indefinite parcel of land would be void because of uncertainty of description, but a deed to an unlocated easement is valid because the exact location could be determined later. Unlocated means not visually apparent.
79
```
What does NOT affect the physical nature or use of real property?
A) Conditions that benefit the property
B) Covenants
C) A specific lien
D) Restrictions
```
C) A specific lien
A lien is a charge on property for the payment of a debt or obligation, and does not affect the physical nature or use of the property. Conditions, covenants, and restrictions (often called CC&Rs) all provide for or limit the use of real property.
80
```
The S ½ of the NW ¼ of the NE ¼ of Section 11 was listed for sale at $350 per acre with the broker to get a 10% commission. The broker brought in an offer of $6,100 for the property. The owner said he would accept it if the buyer would pay the broker's commission based on 10% of the offered amount. If the buyer were to agree, the difference between the original price and the amount as paid by the buyer would be
A) $670.
B) $295.
C) $900.
D) $290.
```
```
D) $290.
(1) Determine Listing Price
$350/Acre × 20 Acres* = $7,000
*S ½ of NW ¼ of the NE ¼ of Section 11
20 40 160 640
(2) Determine Buyer's Payment
$6,100 offer + **$610 Commission = 6,710
**10% × $6,100 Offer
(3) Determine difference
$7,000 (List Price) Less $6,710 (Accepted Price) = $ 290
```
81
An easement may be terminated by all of these EXCEPT
A) revocation by the owner of the servient tenement.
B) destruction of the servient tenement.
C) nonuse of a prescriptive easement for five years.
D) written release by the owner of the dominant tenement.
A) revocation by the owner of the servient tenement.
The owner of the servient tenement cannot revoke the easement. The owner of the dominant tenement, the parcel receiving the benefit, may terminate by giving a written release of the easement. Destruction of the servient tenement, by its very nature, would terminate the easement on such a parcel. An easement gained through prescription can be lost through nonuse for five years.
82
```
Which are considered artificial monuments?
A) Trees and fences
B) Fences and rock
C) Canals and streets
D) Streets and trees
```
C) Canals and streets
Both canals and streets are humanmade and would be considered artificial monuments. Trees and rocks, although they can be moved by humans, normally are considered natural marking points.
83
George Nordling subdivided a large section of a hillside location. In the deeds to individual lots, he placed a restriction requiring a 15,000-square-feet minimum lot size. Subsequently, the local authorities succeeded in reducing the requirements of the zoning laws to a minimum requirement of a 10,000-square-feet minimum lot size. Which requirement for minimum lot size takes precedence?
A) Precedence would require arbitration by local planning commission.
B) The subdivider would be compelled to amend his restriction to conform to zoning laws.
C) Zoning laws take precedence because they are based on police power.
D) The original deed restriction takes precedence.
D) The original deed restriction takes precedence.
| Where there is a conflict between deed restrictions and zoning restrictions, the more stringent of the two would apply.
84
```
Which criterion has the LEAST effect in determining whether an item is personal property?
A) Intention of the parties
B) Manner of annexation
C) Time of annexation
D) Relationship between the parties
```
```
C) Time of annexation
"Time of annexation" is not a test of whether an item is a fixture of real property or personal property. The acronym MARIA lists which tests are:
Method of attachment;
Adaptability;
Relationship between the parties;
Intention of the parties;
Agreement of the parties.
```
85
In ridding an area of nonconforming uses, rezoning ordinances may require that certain conditions be met. These would include all of these EXCEPT
A) allowing a reasonable time (amortized period) within which the abuses may be eliminated.
B) prohibition of rebuilding.
C) retroactive zoning ordinances.
D) prohibition of expansion.
C) retroactive zoning ordinances.
n most cases, laws (including zoning ordinances) cannot be enacted which are retroactive. In ridding an area of nonconforming uses of the land, the courts and zoning authorities, in order to satisfy the policy of gradual and eventual elimination of such nonconforming uses, employ the methods of prohibition of rebuilding, prohibition of expansion, and allowing a reasonable time (amortization period) within which the abuses may be eliminated.
86
```
Less-than-freehold estates consist of estates owned by
A) grantees of life estates.
B) beneficiaries of trust deeds.
C) lessees.
D) holders of easements.
```
C) lessees.
87
Mr. Green owned stock in a mutual water company. This interest was appurtenant to the land. Green sold his property to Smith. Under these circumstances,
A) none of these are true.
B) a separate contract must be written for the purchase of the stock.
C) nothing additional would have to be done regarding this purchase because stock in a mutual water company is an appurtenance to the land.
D) property cannot be purchased in California without water rights.
C) nothing additional would have to be done regarding this purchase because stock in a mutual water company is an appurtenance to the land.
Stock in a mutual water company is a real property interest that is appurtenant to the land and runs with land. When the ownership of the land is transferred, the ownership interest in the mutual water company is also transferred without any further documentation. This is not to be confused with a stock certificate one would buy and sell on the open market.
88
Under a tenancy in common relationship,
A) each has equal half interest.
B) tenants have same rights of survivorship as in joint tenancy.
C) if one leases her half, she must pay rent to the other.
D) there must be a unity of possession.
D) there must be a unity of possession.
Under a tenancy in common relationship, each tenant has the equal right of possession of the entire property and cannot be restricted to any specific portion of it.
89
Which statement is correct with regard to an estate?
A) An estate cannot be created by a lease.
B) A life estate is a less-than-freehold estate.
C) Title to an estate must be transferred by deed.
D) More than one estate can exist in the same property.
D) More than one estate can exist in the same property.
More than one estate can exist in the same property; for example, a lessor has a leased fee estate and a lessee has a less-than-freehold estate. Title can be transferred by patents, wills, accession, or involuntary alienation. A life estate is a form of ownership. A less-than-freehold estate is created by a lease.
90
What would be included in local building codes?
A) Protecting the health and safety of the city
B) All of these
C) The establishment of building materials that may be used and the costs of materials
D) Architectural design of buildings as well as size and height
B) All of these
91
```
Local zoning ordinances determining use of land and building may also determine
A) all of these.
B) setbacks.
C) size.
D) location of buildings.
```
A) all of these.
92
A zoning designation that allowed multiple dwellings was changed. What effect would this have on an existing apartment building in the area?
A) It would be a nonconforming use.
B) It would be in violation of the zoning law.
C) It would be violation of the zoning law with regard to municipal and local ordinances.
D) It would be a variance.
A) It would be a nonconforming use.
This change in zoning would cause the existing apartment building to become a nonconforming use. The structure may be maintained but enlarging or rebuilding is generally disallowed.
93
A husband and wife hold title to some real property as community property. They wish to change their title to a mode that will provide the right of survivorship. To achieve this objective they could deed the property to themselves to hold in
A) severalty.
B) joint tenancy.
C) either community property with right of survivorship or joint tenancy.
D) community property with right of survivorship.
C) either community property with right of survivorship or joint tenancy.
California has two ways of holding title as community property. One has the right of survivorship and the other does not. If you select community property with the right of survivorship, you waive the right to will your share and it automatically passes to the other tenant at death. Joint tenancy also has the right of survivorship, but does not require the parties to be married to hold title this way, although married people may select it. The way you hold title has significant tax and legal consequences so legal advice is suggested before you change vesting.
94
```
Which is NOT a type of soil or soil condition?
A) Alkaline
B) Deciduous
C) Adobe
D) Expansive
```
B) Deciduous
Deciduous is the term used to identify the type of tree that sheds its leaves annually. The other three choices refer to types of soil or soil condition.
95
Which is NOT a characteristic of a fee simple estate?
A) Can be transferred with or without consideration
B) Generally free of all encumbrances
C) Indefinite duration
D) Transferable by will or intestacy
B) Generally free of all encumbrances
96
```
An owner believes that his property has been overassessed. He can appeal the assessment to the
A) county tax collector's office.
B) Assessor's Appeals Board.
C) Board of Supervisors.
D) Bureau of Real Estate.
```
B) Assessor's Appeals Board.
97
```
An easement on real property may be terminated by the owner of the dominant tenement by filing a
A) deed of reconveyance.
B) quitclaim deed.
C) defeasance clause.
D) statement of nonresponsibility.
```
B) quitclaim deed.
A quitclaim deed releases any present interest held by the grantor. This would include the right to use the real property of another.
98
A corporation cannot hold title to real property as a joint tenant because
A) it is difficult to list all stockholders in the deed.
B) it is a violation of the Securities Act.
C) of its perpetual existence.
D) a corporation cannot convey title to real property.
C) of its perpetual existence.
Since a corporation does not die, there can never be a right of survivorship. Because of this, the law does not permit a corporation to hold title in joint tenancy.
99
```
The most common way for local planners to designate zoning for multiple residential units is
A) M-3.
B) C-3.
C) A-3.
D) R-3.
```
D) R-3.
| The R-3 designation generally means residential property with more than one unit (e.g., a duplex is zoned R-3).
100
```
An easement could be terminated by
A) prescription.
B) abandonment.
C) both abandonment and nonuse.
D) nonuse.
```
C) both abandonment and nonuse.
101
```
Which would NEVER be a way an individual could acquire an interest or estate in real property?
A) Accession
B) Prescription
C) Escheat
D) Succession
```
C) Escheat
102
```
A man who owned a large tract of land wanted to subdivide it. Into how many interests would he have to divide the land before the subdivision comes under the Subdivision Map Act?
A) One
B) Five
C) Three
D) Two
```
D) Two
| The Subdivision Map Act applies to subdivisions of two or more parcels or units.
103
Andrew purchased Bliss's ranch on May 1, 2006. The real property taxes for 2006-2007 are
A) added to the purchase price for Andrew.
B) a personal obligation of Bliss.
C) a personal obligation of Andrew.
D) a lien on the ranch.
D) a lien on the ranch.
Taxes become a lien on real property on January 1 prior to the beginning of the fiscal tax year (July 1 to June 30). Property taxes are liens on property, not personal obligations.
104
```
Jones is using Smith's swimming pool and suffers an injury. If Jones instituted court action and obtained a judgment against Smith for $2,500, it would be a(n)
A) voluntary lien.
B) specific lien.
C) abstract lien.
D) general lien.
```
D) general lien.
105
```
With what type of estate is the phrase "of indefinite duration" most usually associated?
A) Estate for years
B) Estate of inheritance
C) Less-than-freehold estate
D) Estate from period-to-period
```
B) Estate of inheritance
106
With regard to local building codes (for example in Los Angeles) versus the Federal Uniform Building Code, which would prevail?
A) Local building codes always take precedence over the Federal Uniform Building Code.
B) Federal codes always take precedence.
C) The Federal Uniform Building Code applies only to general codes while local codes are more specific.
D) Whichever has the higher standards of health and safety will prevail.
D) Whichever has the higher standards of health and safety will prevail.
107
With regard to a limited partnership, which statement is NOT correct?
A) A limited partner's liability is limited to the debts of the partnership.
B) It must consist of one or more limited partners and one or more general partners.
C) A limited partner can lose all she invested in the partnership.
D) A limited partner cannot make decisions affecting management policies.
A) A limited partner's liability is limited to the debts of the partnership.
The first option is the false statement. The liability of a limited partner is the amount of the limited partner's investment paid in or pledged. It may or may not go as high as the debts of the partnership.
108
```
A document deposited with the county recorder to indicate pending litigation is a
A) trust deed.
B) pending deed.
C) promissory note.
D) lis pendens.
```
D) lis pendens.
109
Zoning regulations are legally enforceable because
A) of the ease of enforcement.
B) of local planning agencies.
C) of the police power of government.
D) they do not affect interstate commerce.
C) of the police power of government.
110
John Jones is a proprietary lessee in a stock cooperative apartment and makes monthly payments that include principal, interest, taxes, insurance, maintenance, and association fees. Which statement is correct?
A) If other lessees fail to make payments, the owner can lose his equity through a foreclosure sale.
B) The tax collector will always issue a separate tax bill to each owner.
C) The city will divide the cost of an assessment bond against the property among the owners.
D) The owner may not deduct the amount of his property tax on his income tax return.
A) If other lessees fail to make payments, the owner can lose his equity through a foreclosure sale.
Cooperative ownership of an apartment unit means that the owner has purchased shares in the corporation that holds title to the entire apartment building. With his stock in the corporation, the owner receives a proprietary lease entitling him to occupancy of a specific unit in the building. If other owners default on mortgage or tax payments, the other shareholders must cure the default or risk having the entire project sold for taxes or foreclosed. By special arrangement, the tax collector may issue a separate tax bill to each owner, but will not do so unless specifically requested.
111
```
Which constitutes a lien?
A) Easement
B) Mortgage
C) All of these
D) Homestead
```
B) Mortgage
112
Items that a landlord-owned apartment building and a condominium project would have in common would be
A) separate tax bills sent to each tenant.
B) occupants of both have estates in real property.
C) occupants of both have a fee interest.
D) after development of five units both would come under the subdivision law.
B) occupants of both have estates in real property.
An "estate" in real property is a possessory interest. The tenants in apartment buildings have leasehold estates, regardless of the ownership of the buildings.
113
An appurtenant easement involves two parcels of land. The owner of the dominant tenement may
A) not retain easement rights with the transfer of the parcel.
B) retain the benefits and the burdens of the easement.
C) transfer the interest independently of the land.
D) have ingress and egress only.
A) not retain easement rights with the transfer of the parcel.
With an appurtenant easement the easement goes with the property, not the individual that receives the benefit of the easement, and transfers with the property.
114
```
An order by a court directing an officer to sell real property to satisfy a judgment is a(n)
A) writ of execution.
B) injunction.
C) abstract of judgment.
D) deficiency judgment.
```
A) writ of execution.
115
```
Which does NOT constitute an estate in real property?
A) Reversion
B) Leasehold
C) Deed of trust
D) Remainder
```
C) Deed of trust
116
```
Which type of estate represents the greatest interest a person can have in real property?
A) Less-than-freehold estate
B) Fee simple estate
C) Easement
D) Life estate
```
B) Fee simple estate
117
With regard to general and specific liens, which group of words does NOT contain any general liens?
A) Judgment, trust deed, attachment, taxes
B) Inheritance taxes, mortgages, assessment, mechanic's lien
C) Mortgage, attachment, judgment, corporation tax lien
D) Attachment, mechanic's lien, mortgage, property taxes
D) Attachment, mechanic's lien, mortgage, property taxes
Attachment, mechanic's lien, mortgage, and property taxes are all specific liens. A judgment lien would be a general lien, as would inheritance taxes. Specific liens are attached to a specific property, and general liens are attached to a person's name.
118
Mr. Jones owned two pieces of property and sold the front property to Mr. Smith, reserving an easement in the deed for access to the rear property. Jones was gone for 31 years. When he returned, Smith claimed Jones no longer had an easement because of nonuse. The easement is
A) invalid because of nonuse for over 30 years.
B) invalid because of nonuse for over 20 years.
C) valid because easements created by deed do not terminate.
D) invalid because an owner cannot grant himself an easement.
C) valid because easements created by deed do not terminate.
119
```
The highest member of the frame in a conventionally constructed home is the
A) girder.
B) rafter.
C) ridge board.
D) collar beam.
```
C) ridge board.
120
```
A property in which the owner was delinquent in the real estate taxes will become a tax defaulted property as of
A) April 10.
B) January 1.
C) July 1.
D) December 10.
```
C) July 1.
Property for which taxes remain unpaid at 12:01 AM on July 1 becomes tax-defaulted land. Property that is tax-defaulted after five years becomes subject to the county tax collector's power to sell that property in order to satisfy the defaulted taxes. This five-year period is called a period of redemption.
121
A farm where a crop of corn was growing was sold. During the entire transaction, neither the buyer nor seller discussed who was going to harvest the corn. The man who purchased the property assumed that the corn was his but the seller had plans to harvest the crop at a later time. Under these circumstances,
A) if the buyer wanted the corn, he should have specified this in the sales agreement.
B) the corn is considered real property; therefore the seller had no right to it.
C) the seller does not have a right to harvest the corn because he left the property even though his intentions were there.
D) the seller has the right to harvest the corn because his intention is the controlling factor.
B) the corn is considered real property; therefore the seller had no right to it.
As between buyer and seller, strict interpretation of "real property" is given if there is no specific agreement otherwise. Until the corn is sold, harvested, or mortgaged, it is real property on the land of a seller who cultivated it. (On leased land, the lessee has the right to the crop.) Growing crops are part of the second category of real property: things attached to land.
122
Three persons hold undivided interests in real property as tenants in common. This most likely means that they
A) hold equal shares.
B) cannot locate their particular interests in the property.
C) hold unequal shares.
D) took title at the same time.
B) cannot locate their particular interests in the property.
Undivided interest means that owners cannot locate their particular interests in a property. All owners have access to every portion of the property. For example, an owner with a 10% share owns 10% of every inch of the property, not an identifiable 10% section of the property. The incorrect answer choices relate to tenants in common. Tenants in common may or may not have equal shares, and they are not required to take title at the same time. Equal shares and a unity of title are requirements of a joint tenancy.
