Property Ownership and Land Use Controls and Regulations

Question 1

Set Backs

Answer 1

These required distances are known as setbacks. Frontage is the distance along a lot’s boundary with the road. A buffer zone is a piece of property situated between two differently zoned properties (i.e., a vacant lot between commercial land and residential land).

Question 2

Less Than Freehold Estate

Answer 2

Real property which houses a business constitutes for the lessee a(n):

Question 3

A section of land legally described as the north one-half of the northwest quarter of the southeast quarter of a section of land, contains:

Answer 3

The section contains 640 acres. Divide 640 by 2, divide that by 4 and divide that by 4 to obtain the total area of land. 20 acres

Question 4

Fee simple Absolute

Answer 4

Fee simple absolute means the owner owns it forever and absolutely, and can do whatever they want with it. Fee simple conditional means the owner owns it forever, so long as they satisfy a condition. A life estate is given only so long as the owner or a specified person lives. A leasehold estate is not a form of land ownership, but rather is a type of interest a tenant holds (i.e., a lease).

Question 5

transferred property with easements

Answer 5

Whether mentioned in the deed or not, the easement automatically passes to Stevens.

Question 6

What do we call the ownership arrangement in which two or more persons, whose interests are not necessarily equal, have no right of survivorship?

Answer 6

Tenancy in Common

Question 7

The open, notorious, hostile, and uninterrupted possession of the property of another under claim or color of title is called:

Answer 7

Adverse possession

Question 8

What do we call the imaginary lines that run north and south under the U.S. government rectangular survey system?

Answer 8

Meridians

Question 9

Vegetation would be best described as:

Answer 9

Real property

Question 10

If a non-riparian owner is given permission by the state to take water from a lake or river, they take it by:

Answer 10

Appropriation : Where excess water is available to non-riparian users, the state appropriates the water and permits these users to take the excess.

Question 11

Which of the following would enhance the value of real property?

Answer 11

Only a two-car garage would increase the economic value of your property. The above-ground pool and the picture are both items of personal property, not real property. A toxic waste dump next door would decrease the value of your property..

Question 12

The local city council decides to reduce the assessment rate for a major corporation relocating to the area and building a manufacturing plant. Such a reduction is termed

Answer 12

Ad valorem means according to valuation. Abatement usually refers to a decrease in the assessed value of an ad valorem tax or in the assessment rate used to compute the ad valorem tax. Amortization refers to payment of debt in regular periodic installments of principal and interest. Assignment refers to transfer of any property, real or personal, or any right therein to another, such as a loan assignment without release of liability.

Question 13

The power of the government to regulate and supervise real estate law is called?

Answer 13

Police Power

Question 14

What is a condition

Answer 14

A condition is a promise to do or not do something, where failure to comply will result in forfeiture and reversion of the title to the grantor. A covenant is similarly a promise to do or not do something, but failure to comply will not result in forfeiture of title. An easement is a transferable right to use another’s property for a particular purpose. A license is revocable, assignable permission to enter another’s land for a particular purpose.

Question 15

What type of legal description would a new residential subdivision developer most likely use?

Answer 15

Lots and Blocks Most states have laws that require the use of lot and block methods to describe real property if newly created parcels are smaller than the minimum required by statute (i.e., a per-lot size of less than five acres). An example of a lot and block description is as follows: “Lot number 16 of Norwich Lake Estates Subdivision, located in the state of Texas, county of Wichita.”

Question 16

The co-owner of an undivided interest in land with no rights of survivorship owns it in:

Answer 16

Tenancy in common : Severalty is ownership by one person or entity. Joint tenancy is co-ownership with the right of survivorship, while tenancy in common is co-ownership without the right of survivorship.

Question 17

The term “appurtenant”:

Answer 17

Something is appurtenant to the property if it runs with the land and stays forever, for example, an easement appurtenant or the bundle of rights. Tenants’ rights in a landlord’s property are called leasehold estates and are not appurtenant as they do not run with the land.

Question 18

If Alfred deeded a ranch to Marley for the life of Cary:

Answer 18

The law allows the duration of a life estate to be based on the life span of a third party (in this case, Cary). When Cary dies, the estate held by Marley will revert to Alfred.

Question 19

Mechanics Lien

Answer 19

A mechanic’s lien is filed by a contractor, laborer, or materials supplier whose work or materials enhanced the value of real property. A creditor may obtain a deficiency judgment if a foreclosure action fails to raise enough proceeds to cover the original lien. An estoppel certificate is a document used by a mortgagee to stop the mortgagor from inserting a defense of an amount claimed due and owing under a mortgage.

Question 20

In a leasehold estate, the possessory interest in the real property is held by the:

Answer 20

The lessee (tenant) has the right of possession.

Question 21

The term “ad valorem” refers to:

Answer 21

Ad valorem refers according to valuation; an ad valorum tax is based on a property’s value. A clause in a mortgage that allows the property to be pledged as security for repayment of a debt is called a hypothecation clause. A clause in a mortgage that allows the lender to call the loan due and payable immediately is called an acceleration clause. The decrease in assessed property for tax computation purposes is called abatement.

Question 22

A lease on real estate is a(n):

Answer 22

A lease for even one month is an estate for years. A leasehold is a less than freehold estate.

Question 23

To find out whether there is an encroachment on a property, a person should purchase:

Answer 23

A survey would show any physical encroachments upon the property. Title insurance ensures that ownership of the property is vested in the name of the purchaser. Homeowners insurance provides against theft and hazardous losses.

Question 24

Which is not a limited common area?

Answer 24

The foyer in a unit is a part of (a room in) the unit and therefore owned by the unit owner only. Assigned parking, the patio, and the open garage are owned by all but limited to the use of a specific owner or owners.

Question 25

A receives a life estate for the life of X. A dies before X. The estate:

Answer 25

The estate vests in the heirs of A until X dies, at which time the estate will revert to the original grantor.

Question 26

Which of the following runs with the land?

Answer 26

Upon the sale of a property, any appurtenances, usually an easement, go with the sale.

Question 27

The area owned together by all owners of a condominium project and available for all owners' use is termed:

Answer 27

Common areas are owned by and may be used by all of the condo owners. A limited common element is property owned by all the unit owners of a condominium but may be used by only one of the owners, i.e., a designated parking space. Community property is accumulated by husband and wife by the efforts of either during their marriage and is subject to division at time of divorce or dissolution.

Question 28

An estate of inheritance or perpetual estates are referred to as a(n):

Answer 28

The most complete form of ownership is a fee simple estate. Since an owner may dispose of a fee simple during their lifetime or after death by will, it is also known as an estate of inheritance or a perpetual estate.

Question 29

The addition of soil to property by the gradual operation of natural causes is termed:

Answer 29

Accretion is the opposite of erosion. Erosion is the gradual wearing away by natural causes; accretion is the natural increase of property. Alluvium is another name for the silt that is suspended in the water and carried downstream. Ad valorem is Latin, meaning "according to valuation" as used in estimating real property taxes.

Question 30

A parcel of land that separates two other parcels (i.e., a parcel between a residential and commercial strip of land) is called :

Answer 30

Buffer Zone

Question 31

John dies and leaves the township 10 acres to use as it wishes, but not on Sundays. If the land is used for any purpose on a Sunday, ownership will pass to his son, Bill. Which of the following describes the interests of the township and Bill respectively?

Answer 31

A fee simple defeasible estate is terminated and the property reverts to the grantor or to their heir(s) upon the occurrence of the triggering event or condition. The beneficiary of the reversion is said to have a reversionary interest. (Note that this type of estate, in which the property reverts automatically when the condition is breached, is no longer recognized in California.) A fee simple conditional estate, upon the occurrence of the limiting condition, may or may not be terminated, at the option of the grantor. A fee simple absolute freehold estate would have no conditions as to use. Estates for years and periodic tenancies describe leasehold estates. A life estate implies exclusive use, which Bill did not have.

Question 32

Which would a court disregard in deciding whether an item of personal property has become real property?

Answer 32

Cost of the item is not a consideration in determining whether an item is a fixture.

Question 33

Joint tenancy is severed when:

Answer 33

Joint tenancy allows an owner to sell their interest, ending the joint tenancy between that owner and the remaining joint tenants (who retain a joint tenancy relationship). Neither owner disability nor bankruptcy will sever joint tenancy. Leasehold estates are not ownership interests.

Question 34

Developer Lenny purchased 20 acres and had an engineer/land planner survey it and draw up a plan subdividing the land into 20 residential lots and two streets. The plan indicates the dimensions and number of each lot, the required setbacks, and the location of easements for utilities. What is this document commonly called

Answer 34

A plat is a detailed survey map of a subdivision showing boundaries of lots, streets, easements, etc., which, upon approval, is recorded and becomes the basis for transfer of title of the individual lots. A topographic survey shows the elevations and contours of land. A deed is evidence of the transfer of title. A PUD, or planned unit development, may combine different zoning uses in one development.

Question 35

Government regulations that specify minimum construction and building standards to protect the health, safety, and welfare of the public are known as:

Answer 35

QUESTION RATIONALE Building codes are government regulations specifying minimum construction and building standards. A buffer zone is a parcel of land that separates two differently zoned parcels. Deed restrictions are private controls placed upon the use of property by an individual, not the government.

Question 36

The highest and best form of ownership in real property is called:

Answer 36

Fee simple absolute is the highest and best way to own property. It includes the entire bundle of rights.

Question 37

Which of the following would be considered a chattel?

Answer 37

Chattels are personal property, goods, or other items of property, moveable or immovable, which are not real property.

Question 38

Which of the following deeds is most preferential from the point of view of the seller?

Answer 38

A seller wishes to give a deed that has absolutely no warranties in it, so the seller is subject to the least liability. The general warranty deed is the deed that the buyer would most desire, as it contains the five basic warranties of ownership. The limited warranty deed and special warranty deed give very limited or special warranties to the buyer for the time period during which the seller owned the property.

Question 39

Mr. Green gives a life estate to Sandra. Upon Sandra's death the estate is to go to Mr. Blue. Mr. Blue's interest is known as:

Answer 39

Remainder means going forward to someone else. Reversionary means going back to original grantor. A leasehold is temporary right to possession without a title of ownership. Contract for deed is another name for a land contract.

Question 40

Fee simple title to a designated unit of air space plus a percentage ownership of common elements in the property is called a:

Answer 40

QUESTION RATIONALE A condominium is the co-ownership of real property with common dominion of common elements. A cooperative is not an ownership of real estate at all, but rather is an ownership in stock and a lease of property.

Question 41

Landowner A buys a tract of land and receives an easement to cross the neighbor's property to access a community lake. Owner A is benefiting from the easement and thus has:

Answer 41

QUESTION RATIONALE Owner A has the dominant estate. Owner B's property would be the servient estate, as it serves the dominant one.

Question 42

According to the laws of homesteads, a homestead would be invalidated by:

Answer 42

QUESTION RATIONALE A person can only have one homestead at a time. There are three ways to remove a homestead: 1) Sell the property. 2) Record a homestead on another property. 3) File a form called Abandonment of Homestead.

Question 43

A legal description of property based on lines of longitude and latitude, townships, and sections is described as:

Answer 43

The government rectangular system consists of townships, which are drawn according to parallel lines of longitude and latitude. The townships are then divided into sections which are further divided into quarters, halves of quarters, quarters of quarters, etc. The recorded plat method and the lot and block method are the same, and are usually used in residential subdivisions. The metes and bounds legal description is based on points of beginning distances, directions, and degrees.

Question 44

A legal description of a property based upon points of beginnings, distances, directions, and degrees is:

Answer 44

A metes and bounds legal description must start at the point of beginning, sometimes using natural monuments as markers, and end at the same point of beginning. It is based upon metes, distances and bounds, degrees, and directions. The government rectangular survey method is based upon townships and sections. The lot and block and recorded plat are two different names for the same type of legal description.

Question 44

The personal, revocable, and unassignable permission or authority to do one or more acts on the property of another, without possessing any interest therein, is the definition of a(n):

Answer 44

License

Question 45

Which would a court disregard in deciding whether an item of personal property has become real property?

Answer 45

Cost of the item is not a consideration in determining whether an item is a fixture.

Question 46

According to the laws of homesteads, a homestead would be invalidated by:

Answer 46

A person can only have one homestead at a time. There are three ways to remove a homestead: 1) Sell the property. 2) Record a homestead on another property. 3) File a form called Abandonment of Homestead.

Question 47

Joint tenancy is severed when:

Answer 47

Joint tenancy allows an owner to sell their interest, ending the joint tenancy between that owner and the remaining joint tenants (who retain a joint tenancy relationship). Neither owner disability nor bankruptcy will sever joint tenancy. Leasehold estates are not ownership interests.

Question 47

An estate in real property for a specific period of time, in exchange for payment of rent, is known as a(n):

Answer 47

Estate in years

Question 48

For buyers of homes located in subdivisions, the Final Subdivision Public Report provides assurances of all of the following EXCEPT:

Answer 48

The Subdivided Lands Law does not prevent developers from selling homes for more than their market value. To obtain a final public report, however, the developer must demonstrate that improvements will be completed, adequate utilities will be available, and liens will be lifted.

Question 49

Government regulations that specify minimum construction and building standards to protect the health, safety, and welfare of the public are known as:

Answer 49

Building Codes

Question 50

Which of the following would enhance the value of real property?

Answer 50

Only a two-car garage would increase the economic value of your property. The above-ground pool and the picture are both items of personal property, not real property. A toxic waste dump next door would decrease the value of your property..

Question 51

An estate of inheritance or perpetual estates are referred to as a(n):

Answer 51

The most complete form of ownership is a fee simple estate. Since an owner may dispose of a fee simple during their lifetime or after death by will, it is also known as an estate of inheritance or a perpetual estate.

Question 52

A parcel of land that separates two other parcels (i.e., a parcel between a residential and commercial strip of land) is called :

Answer 52

buffer zone

Question 53

Which of the following would be considered a chattel?

Answer 53

Chattels are personal property, goods, or other items of property, moveable or immovable, which are not real property.

Question 54

A property description that uses natural monuments and markers and has a beginning and ending point at the same point is legally described as:

Answer 54

A metes and bounds legal description must have a definite beginning point and a description of the property's boundaries which returns to the point of beginning. It uses natural monuments such as trees, rocks, and streams as markers. The government rectangular survey system uses townships and sections (i.e., SW 1/4, SW 1/4, NW 1/4 of section 13). Recorded plat and lot and block are used to describe property in residential subdivisions.

Question 55

A receives a life estate for the life of X. A dies before X. The estate:

Answer 55

The estate vests in the heirs of A until X dies, at which time the estate will revert to the original grantor.

Question 56

Landowner A buys a tract of land and receives an easement to cross the neighbor's property to access a community lake. Owner A is benefiting from the easement and thus has:

Answer 56

Dominant

Question 57

John dies and leaves the township 10 acres to use as it wishes, but not on Sundays. If the land is used for any purpose on a Sunday, ownership will pass to his son, Bill. Which of the following describes the interests of the township and Bill respectively?

Answer 57

A fee simple defeasible estate is terminated and the property reverts to the grantor or to their heir(s) upon the occurrence of the triggering event or condition. The beneficiary of the reversion is said to have a reversionary interest. (Note that this type of estate, in which the property reverts automatically when the condition is breached, is no longer recognized in California.) A fee simple conditional estate, upon the occurrence of the limiting condition, may or may not be terminated, at the option of the grantor. A fee simple absolute freehold estate would have no conditions as to use. Estates for years and periodic tenancies describe leasehold estates. A life estate implies exclusive use, which Bill did not have.

Question 58

Developer Lenny purchased 20 acres and had an engineer/land planner survey it and draw up a plan subdividing the land into 20 residential lots and two streets. The plan indicates the dimensions and number of each lot, the required setbacks, and the location of easements for utilities. What is this document commonly called?

Answer 58

A plat is a detailed survey map of a subdivision showing boundaries of lots, streets, easements, etc., which, upon approval, is recorded and becomes the basis for transfer of title of the individual lots. A topographic survey shows the elevations and contours of land. A deed is evidence of the transfer of title. A PUD, or planned unit development, may combine different zoning uses in one development.

Question 59

Fee simple title to a designated unit of air space plus a percentage ownership of common elements in the property is called a:

Answer 59

Condo