Briefing Exam 1 Flashcards
- 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.
- 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.
- 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.
- 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.
- 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).
- 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.
- 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.
- 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).
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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.”
- 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.
- 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.
- 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.
- “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.
- 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.”
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Potable means:
a. drinkable.
b. water.
c. sewage.
d. land.
a. drinkable.
Potable means drinkable (safely and agreeably used for drinking).
- 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.
- 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.
- 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.
- 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
- TIME: That the co-owners became such at the same time.
- TITLE: Created by a single will or transfer.
- INTEREST: Equal shares.
- 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.
- 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”
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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).
- 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:
- Estates in fee:
a. Absolute
b. Qualified - by condition or limitation - Life Estates
- 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”.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.