Ch 1 Property Ownership & Land Use Controls & Regulations

Question 1

The first component of real estate is land, which includes:

a) soil
b) rocks
c) reasonable airspace about the earth
d) all the above

Answer 1

d - land is inclusive of all listed answer choices

Question 2

The northeast 1/4 of a section contains:

a) 160 acres
b) 320 acres
c) 10 acres
d) 40 acres

Answer 2

a - there is 640 acres in a section. 640/4 = 160

Question 3

How many square feet are in three acres of land?

a) 130,680
b) 217,800
c) 143,560
d) 43,560

Answer 3

a - an acre of land contains 43,560 square feet. 3x43,560=130,680

Question 4

All of the following are acceptable means to obtain title, except:

a) grant
b) escheat
c) adverse use
d) descent

Answer 4

b - an individual may not obtain title by escheat. Only state government may acquire title through escheat

Question 5

There are _____ baseline and meridian system in California.

a) 36
b) 12
c) 3
d) infinite

Answer 5

c - the 3 baseline and meridian system in Cali are Humboldt, Mt. Diablo, and San Bernardino

Question 6

Which of the following would be the least desirable reference point for a metes and bounds description?

a) the corner of a section
b) a township line
c) the corner of a quarter section
d) a riverbank

Answer 6

d - a riverbank may shift over time

Question 7

A lot contains 73,000 square yards. How many acres does this equal?

a) 29
b) 14.7
c) 10
d) 15.1

Answer 7

d - the parcel of land is described in square yards.

Question 8

Which of the following statements regarding zoning is true?

a) zoning is never retroactive
b) aesthetic values are not an interest and establishment of zoning
c) Zoning always takes presidents over deed restrictions
d) Zoning laws always keeps commercial and residential property separate

Answer 8

a - zoning cannot apply to existing structures, only structures to be built.

Question 9

Before a new home can be occupied:

a) all construction loans need to be paid off
b) A certificate of occupancy must be issued by the local building department
c) a notice of completion needs to be recorded by the owner
d) offset improvements need to be completed

Answer 9

b - A certificate of occupancy issued by the building department is proof of habitability

Question 10

On a zoning map, M generally indicates:

a) multi use
b) multi-unit
c) manufacturing
d) mobile homes

Answer 10

c - M = manufacturing, C = commercial, R = residential

Question 11

The subdivision map act grants control to use the

a) corporation counsel
b) department of real estate
c) the local government
d) state building inspector

Answer 11

c - The subdivision map act is controlled by local authorities. Subdivided Land Law is controlled by DRE

Question 12

An owner with riparian rights has the rights relating to the use and ownership of water from which of the following sources:

a) rivers, stream and watercourses
b) ocean and bays
c) underground caves and water
d) swimming pools and watering systems

Answer 12

a - Riparian rights apply to all surface waters

Question 13

Individual ownership of a lot and common ownership of other areas in the development constitutes a:

a) fully improved subdivision
b) planned unit development
c) multi-unit apartment project
d) condominium

Answer 13

b - A planned unit development has common areas in addition to individual ownership of a house

Question 14

The real estate commissioner rescinds their approval of a subdivision by:

a) issuing an injunction
b) issuing a writ of prohibition
c) revoking the developers license
d) issuing a desist and refrain order

Answer 14

d - to stop a development, the real estate commissioner files a desist and refrain order against the developer

Question 15

A roof on which all four sides slope to the eaves is classified as a:

a) gambrel roof
b) gable roof
c) mansard roof
d) hip roof

Answer 15

d - a roof with four sides is called a hip. A two-sided roof is a gable.

Question 16

Real property does not include:

a) watercourses
b) improvements
c) fences
d) leasehold estates

Answer 16

d - at leasehold estate

is less than freehold, and therefore not real property

Question 17

Which of the following is regarded as real property?

a) growing crops that have been mortgaged
b) crops that have been sold but have not been harvested
c) riparian rights
d) trade fixtures

Answer 17

c - riparian rights go with the land and are appurtenant to it

Question 18

A primary difference between real and personal property is that real property:

a) can be held in joint ownership
b) is immovable
c) is always subject to depreciation
d) can be willed

Answer 18

b - land is immovable, personal property is not

Question 19

A dispute over ownership rights and interests held in real property may be settled by:

a) a quiet title action
b) a partition action
c) a declaratory relief action
d) a lis pendens

Answer 19

a - quiet title is a quart action to clear clouds on a property‘s title

Question 20

If a person dies without a will and with no identifiable heirs, the state acquires title to their real property through:

a) patent
b) condemnation
c) escheat
d) forfeiture

Answer 20

c - escheat is a state action to revert property to government ownership when an owner dies with no wills or heirs

Question 21

All of the following are rights of ownership, except:

a) severance rights
b) eminent domain rights
c) riparian rights
d) reliction rights

Answer 21

b - eminent domain is the government power to seize property written into the US constitution. Reliction refers to an increase in land bordering a body of water due to receding water

Question 22

Basic regulation of the housing and construction industries is performed by:

a) The state housing act
b) local building codes
c) the state contractor’s license law
d) all the above

Answer 22

d - all the above. Each entity plays a role in construction and housing standards

Question 23

The general purpose of local building code is to assure:

a) The most effective utilization of skilled labor
b) compliance with regulatory agencies
c) compliance with minimum construction requirements
d) cost effectiveness in building through uniformity of building standards

Answer 23

c - Local building codes are not concerned with labor, regulation or cost effectiveness

Question 24

Private restrictions on the use of land best created by:

a) verbal agreement
b) ratification
c) constructing a physical barrier around the property
d) recording the restrictions with a county recorder, with the reference made in the deed to each parcel

Answer 24

d- of the answer choices provided, the best way to create a private restriction on the use of land is by recording the restrictions with the county recorder. However, a private restriction may also be created through a developers restriction for a subdivision or through a written agreement

Question 25

“Potable” means:

a) drinkable water
b) sewer system
c) backfill
d) plumbing metal

Answer 25

a- Portable water is suitable for drinking

Question 26

Placing two or more contiguous units under common ownership for the purpose of increasing the value is also known as:

a) dual ownership
b) severally ownership
c) plottage
d) reversion

Answer 26

c- The fact of combining parcels of real estate is referred to as assemblage. The increase of value is referred to as plottage

Question 27

Which of the following is shown on a plot map?

a) thickness of exterior walls
b) topography of the surrounding areas
c) location of the improvement on the lot and its relationship to surrounding features
d) foundation features in construction materials

Answer 27

c- Topography, referencing the lay of the land. Topography is not included on a plot map. 

Question 28

Personal property may not:

a) become real property
b) hypothecated
c) be alienated
d) none of the above

Answer 28

d- A personal property may undergo any of the activities referenced in all of the answer selection, none of the above is correct

Question 29

The physical components of a subdivision are controlled by the:

a) department of real estate
b) city or county planning commission
c) department of architecture
d) division of state lands

Answer 29

b- The subdivision map act controls the physical element of a subdivision which is overseen by local governments

Question 30

Mary held a life estate for her lifetime in a single-family residence. She leased the residence to Martha for a five-year period, but died a few weeks after the lease began. The lease was:

a) Invalid on its face, because the holder of a life estate does not have the right to lease the property
b) continued in effect for the full 5 year term
c) valid only during the life of the lessor (Mary)
d) valid only if Martha was unaware of the life estate when the lease was created

Answer 30

c- when a life estate ends, the ownership of the real estate transfers and therefore existing contracts also end

Question 31

What notice is filed first in regards to a mechanics lien?

a) notice of non-responsibility
b) notice of cessation
c) notice of completion
d) notice to perform or quit

Answer 31

a- an owner may prevent the attachment of a mechanics lien by recording and posting a notice of non-responsibility within 10 days after they become aware of tenant contracted improvements

Question 32

A subcontractor uses a _____ to notify a general contractor or the owner of the right to record and foreclose a mechanics lien against property when they are not paid.

a) notice of default
b) right of first refusal
c) 20 day preliminary notice
d) 30 day notice to vacate

Answer 32

c- Before a subcontractor employed by contractor may record a mechanics lien against real estate and enforce it by foreclosure, they perfect their lien right by serving a 20 day preliminary notice

Question 33

All of the following are examples of specific liens, except:

a) A property tax lien
b) a blanket mortgage
c) a judgment for punitive money damages
d) mechanics lien

Answer 33

c- A judgment for punitive money damages is filed against an individual rather than a specific property

Question 34

Which of the following is a lien?

a) a recorded notice
b) a homestead
c) an easement
d) an attachment

Answer 34

d- a lien always has a dollar value. Therefore, the only correct answer is the attachment

Question 35

If a lien covers all properties of the debtor in the county where it is recorded, it is known as a:

a) lis pendens
b) specific lien
c) general lien
d) mechanics lien

Answer 35

c- as the lien attaches to multiple properties owned by the debtor, versus a specific property, it is referred to as a general lien

Question 36

All of the following are required by an occupant to establish title by adverse possession, except:

a) they have occupy the property in a way which constitutes no notice to the record owner
b) the payment of taxes for five years
c) open and notorious use
d) hostile use

Answer 36

a- all other answer choices are conditions that need to be met to establish title by adverse possession

Question 37

All of the following are appurtenances that go with the land, except:

a) buildings
b) a swimming pool
c) fences
d) a trade fixture

Answer 37

d- trade fixtures are personal property and. It not go with the land

Question 38

Ownership rights and interests in real estate are called:

a. land sales contracts.
b. estates or fees.
c. liens.
d. tenancies.

Answer 38

b — Ownership might be a fee title or a life estate. Both are examples of a freehold estate.

Question 39

Which of the following is an example of a freehold estate?

a. Beneficiary interest.
b. An estate at sufferance.
c. A life estate.
d. An estate at will.

Answer 39

c — A life estate is an example of a freehold estate

Question 40

All of the following are less-than-freehold estates, except:

a. An estate for years.
b. Leasehold interest.
c. A life estate.
d. An estate at sufferance.

Answer 40

c — Freehold is ownership. Less-than-freehold is a leasehold.

Question 41

Which of the following best describes an estate of indefinite duration?

a. Estate for years.
b. Life estate.
c. Periodic tenancy.
d. Estate of inheritance.

Answer 41

d — An estate of inheritance is a fee title. Therefore, it lasts in perpetuity — an indefinite
time.

Question 42

In what way is a tenant in an apartment like an owner of a condominium?
a. Both hold a fee interest.
b. The owner of the condominium and the tenant of the apartment each have an estate
in real property.
c. The local tax assessor needs to assess each property separately.
d. Both have ownership of an individual unit.

Answer 42

b — The question asks for what the owner and a tenant have in common. Both interests held
by an owner and tenant are described as an estate.

Question 43

Which of the following best describes an estate of indefinite duration?

a. Estate for years.
b. Life estate.
c. Periodic tenancy.
d. Estate of inheritance.

Answer 43

b — As with the term “estate,” both the owner’s position as well as the lessee’s may be described
as a “tenancy.”

Question 44

Appurtenant rights include the right of ingress and ___________ across adjoining properties.

a. trespass
b. traversal
c. egress
d. pro rata

Answer 44

c — Access rights include both egress and ingress (entering and exiting), such as with a
driveway easement.

Question 45

Easements which restrict an owner’s ability to maintain or construct improvements interfering with a neighbor’s solar energy system are known as easements.

a. airborne
b. solar
c. galactic
d. greenway

Answer 45

b — Solar panels are generally located on the roof of a structure. A solar easement prohibits
the blocking of those panels from exposure to the sun.

Question 46

The Real Estate Commissioner, under the Subdivided Lands Law, is initially concerned with which court:

a. Small Claims.
b. Superior.
c. Federal Supreme.
d. State Appeals.

Answer 46

b — The Subdivided Lands Law is controlled by the Department of Real Estate. Since this
is a state entity, the process of elimination excludes the Small Claims, Federal Supreme and
Appellate courts, leaving the Superior Court as initially handling real estate disputes.

Question 47

An encroachment is:
a. a fence built on an owner’s property for security and privacy purposes.
b. an improvement on real estate, such as a building, fence, driveway or tree, which
extends onto a neighbor’s real estate.
c. a doctrine used by property owners to establish boundary lines.
d. an exclusive right-to-use easement.

Answer 47

b — Encroachment is an example of trespass.

Question 48

Upon moving into the home they had just purchased, the owner discovered their neighbor’s
garage encroached four feet over his property line. lf a friendly settlement cannot be negotiated,
the owner may sue the:
a. escrow company.
b. title company.
c. agent, for failure to disclose the encroachment.
d. neighbor, since the encroachment is a trespass.

Answer 48

d — The neighbor is the one who is trespassing and is the party the owner may sue

Question 49

Lead-based paint was banned by the Federal Consumer Product Safety Commission in:

a. 1940.
b. 1973.
c. 1978.
d. 1996.

Answer 49

c — Under federal law, a lead-based paint disclosure is required on all single family
residential property built prior to 1978.

Question 50

Environmental hazards located on a property which pose a direct health threat to occupants
include toxic mold and:
a. building materials containing asbestos.
b. recent seismic activity.
c. carbon dioxide gas.
d. very high fire hazard severity zones.

Answer 50

a — Building materials containing asbestos pose a direct health threat to occupants. Seismic
activity and very high fire hazard severity zones are natural hazards occurring off of a
property and are not man-made environmental hazards. Carbon dioxide gas is formed dur

Question 51

The Williamson Act provides property tax relief for owners of farmland and open, undeveloped
land in exchange for a __________ that the land will not converted to another use.
a. two-year agreement
b. five-year agreement
c. ten-year agreement
d. twenty-year agreement

Answer 51

c — The Williamson Act, also known California Land Conservation Act of 1965, provides property tax relief to owners of farmland and open-space land in exchange for a ten-year agreement the land will not be developed or converted to another use.