Encumberances & Transfer Of Ownership

Question 1

An easement that is not appurtenant to any one parcel

Answer 1

Easement in gross

Question 2

Permission to use a property which may be revoked at any time

Answer 2

License

Question 3

The unauthorized placement of permanent improvements that intrude on adjacent property owned by another

Answer 3

Encroachment

Question 4

Status provided to a homeowner’s principal residence that protects the home against judgments up to specified amounts

Answer 4

Homestead

Question 5

A gift of personal property by will

Answer 5

Bequest

Question 6

Dying without leaving a will

Answer 6

Intestate

Question 7

Process by which there is an addition or reduction to property by the efforts of natural forces

Answer 7

Accession

Question 8

Gradual buildup of alluvium by natural causes on property bordering a river, lake, or ocean

Answer 8

Accretion

Question 9

Occurs when land that has been covered by water is exposed by receding of the water

Answer 9

Relicition

Question 10

The act of transferring ownership, title, or interest

Answer 10

Alienate

Question 11

The person receiving the property, or to whom it is being conveyed

Answer 11

Grantee

Question 12

The person conveying or transferring the property

Answer 12

Grantor

Question 13

A document in real estate

Answer 13

Instrument

Question 14

It is a court proceeding to clear a cloud in the title of real property

Answer 14

Quiet title action

Question 15

Notice that indicates pending litigation affecting title in a property

Answer 15

Lis Pender’s

Question 16

Define encumbrance

Answer 16

Anything that affects or limits the fee simple title to or value of property

Question 17

The form of encumbrance that makes specific property the security for the payment of a debt or obligation is called a:

Answer 17

Lien

Question 18

A recorded abstract of a judgment is classified as a(n)__________lien.

Answer 18

Involuntary

Question 19

Recording a lis pendens:

Answer 19

Clouds the title AND affects marketability

Question 20

The owner of an apartment building does not declare the income from the rental units. The IRS filed a government tax lien, which would be a :

Answer 20

General lien

Question 21

The personal, revocable,unassignable permission to use the property of another without a possessory interest in it is called a(n):

Answer 21

License

Because it is revocable, it is a license

Question 22

Rogerl, who owns a ranch, gave Sam who owns no property, a non-revocable right to cross his ranch to fish in the stream. Sam has a(n):

Answer 22

Easement in gross

Question 23

Private restrictions on land can be created by deed:

Answer 23

Or written agreement

Question 24

Alienation of title to real property most nearly means to:

Answer 24

Convey or transfer title and possession

Question 25

To be binding on a buyer and a seller, a deed to transfer real property must be:

Answer 25

Delivered and accepted

Question 26

A grant deed is considered executed when it is:

Answer 26

Delivered by the grantor

Question 27

Effective delivery of a deed depends on:

Answer 27

The intention of the grantor

Question 28

Dana sold a property to Kim, who did not record the deed but did occupy the premises. Dana then sold the same property to Lee, who did not inspect the property but did record the deed. After the second sale, who would have legal title to the property?

Answer 28

The title would remain with Kim

Question 29

An owner of a parcel of real property gave his neighbor a deed conveying an easement for ingress and egress. The easement was not specifically located in the deed. Under the circumstances, the neighbor's right to use the easement is:

Answer 29

Enforceable because the location of the easement does not need to be specified

Question 30

Which of the following actions is a quiet title action?

Answer 30

Court action to remove a cloud on a title

Question 31

Liens are either:

Answer 31

Voluntary Involuntary Specific General

Question 32

Money debts that an owner agrees to pay (in reference to a type of lien):

Answer 32

Voluntary Lien

Question 33

Money obligations that create a burden on a property by government taxes or legal action because of unpaid bills (in reference to a type of lien):

Answer 33

Involuntary Lien

Question 34

Liens against just one property:

Answer 34

Specific lien Example: property taxes assessed against real property automatically become a specific lien on only that property on July 1 on RSG year.

Question 35

Liens on all the properties of the owner, not just one. Federal or state income taxes and judgement liens can become a _____________lien on all your real property.

Answer 35

General lien

Question 36

A written instrument that makes real property collateral for a loan is a (n)______ deed.

Answer 36

Trust deed A trust deed is a security device-voluntary and specific. Trust deeds and mortgages are security devices that make property security for the debt. Trust deeds and mortgages are personal property as well as examples of voluntary liens. A lien is created by recording.

Question 37

A lien that secures real property for the payment of a promissory note (debt) is a :

Answer 37

Mortgage (security device - voluntary, specific) Mortgages are rarely employed in financing CA homes but are widely used in other states. In CA, many people use the term mortgage to mean a property loan, but usually are talking about trust deeds

Question 38

The recording of a notice with the county recorder's office warning all persons that a lawsuit is pending concerning a particular property.

Answer 38

Lis Pendens ("Lawsuit is Pending") A property is not marketable until the lis pendens is removed.

Question 39

A court order to sell property to satisfy a judgment is a:

Answer 39

Writ of execution

Question 40

The forced sale of a debtor's property to satisfy a judgment under a writ of execution is called a:

Answer 40

Sheriff's Sale. If a person refuses to pay off a judgment the sheriff's Sale is the next step.

Question 41

Proceeds from a sheriff's Sale are distributed in the following order:

Answer 41

Taxes and assessment liens Mechanic's liens and any previously recorded judgments First trust deed Second trust deed and any subsequent liens

Question 42

A court order to stop doing something is an:

Answer 42

Injunction

Question 43

Non-financial encumbrances that limit the physical use of a property are:

Answer 43

``` Easements Building restrictions Zoning Encroachments Leases ```

Question 44

True or False: | An easement is not a lien.

Answer 44

True

Question 45

An interest in another's land that is also considered to be a right is called an:

Answer 45

Easement

Question 46

Easements are of two types:

Answer 46

Easements appurtenant Easements in gross

Question 47

True or False: All liens are encumbrances but not all encumbrances are liens.

Answer 47

True

Question 48

A voluntary lien placed over more than one property, and usually has a release clause for one or more of the parcels:

Answer 48

Blanket encumbrance

Question 49

A right, limited to a specific use, that one party has in the land of another :

Answer 49

Easement

Question 50

Anything that affects or limits the fee simple title to, or value of, property, mortgages or easements:

Answer 50

Encumbrance

Question 51

The process by which real or personal property is seized by the court for the purpose of assuring payment :

Answer 51

Attachment

Question 52

A form of encumbrance that usually makes specific property security for the payment of a debt:

Answer 52

Lien

Question 53

Discharge of a mortgage or trust deed from the records upon payment of the debt. Make sure you receive a Deed of Reconveyance to prove that you paid off the deed of trust.

Answer 53

Satisfaction

Question 54

A promise to do or not to do a particular thing

Answer 54

Covenants

Question 55

A limiting restriction stating that upon the happening or not happening of some stated event, the estate shall be changed in some manner.

Answer 55

Conditions

Question 56

A legal document by which a borrower pleases certain real property as collateral for the repayment of a loan. In addition to the buyer and seller, there is a third party to the transaction known as a trustee.

Answer 56

Trust Deed

Question 57

A lien usually a trust deed in CA, covering more than one property of the borrower/

Answer 57

Blanket encumbrance

Question 58

An easement for the benefit of the owner of an adjacent parcel of land.

Answer 58

Easement appurtenant

Question 59

A writ to carry out a court order, usually arising from a judgment:

Answer 59

A writ of execution

Question 60

A property that is burdened by an easement :

Answer 60

Servient tenement

Question 61

A document using property to secure the payment of debt is called a:

Answer 61

Lien

Question 62

A non-possessory interest in real property that is held by someone who is not the owner.

Answer 62

Encumbrance

Question 63

Anything that burdens or affects the title or the use of the property is referred to as an:

Answer 63

Encumbrance

Question 64

A property is _______________when it is burdened with legal obligations against the title.

Answer 64

Encumbered

Question 65

True or False. Most buyers purchase encumbered property.

Answer 65

True

Question 66

Encumbrances fall into two categories: | Those that affect title and those that affect the use of the property. These two categories of encumbrances are:

Answer 66

Financial encumbrances | And non-financial encumbrances

Question 67

An obligation to pay a financial encumbrance that may be voluntary or involuntary is referred to as a:

Answer 67

Lien

Question 68

True or False. A voluntary lien does not have to be recorded.

Answer 68

True

Question 69

True or False. A mechanics lien must be verified and recorded.

Answer 69

True