CHAPTER 1 -- OWNERSHIP Flashcards
Legally and technically, property is defined as:
(A) that which is capable of involuntary transfer; (B) things with buyers and sellers; (C) rights or interests which a person has in a thing owned; (D) only personal property.
(C) rights or interests which a person has in a thing owned
How can water rights be severed?
- voluntary transfer
- condemnation
- prescription
The owner of land owns riparian rights to water on, under, or adjacent to the land in which of the following?
(A) oceans and bays; (B) rivers or streams; (C) underground caves with water; (D) all of the above.
(B) rivers or streams
When an owner acquires land which includes riparian rights, such riparian rights:
(A) give the owner absolute ownership of the water; (B) must be expressed in the trust deed; (C) may be determined accurately from an examination of public records at the County Recorder’s Office; (D) concern the use of moving water, such as a steam or brook within the watershed.
(D) concern the use of moving water, such as a steam or brook within the watershed
What does M-A-R-I-A stand for in regards to fixtures?
M - Method of attachment A - Agreement between the parties R - Relationship of parties I - Intention of parties A - Adaptability of the object
Are business opportunities real or personal property?
Business opportunities are PERSONAL property.
How is personal property transferred?
With a Bill Of Sale.
Who needs to sign a Bill Of Sale?
The seller must sign a Bill of Sale.
What are the name of crops which must be planted annually (i.e.: they do not produce fruit every year)
Emblements
What is usually considered real property?
(A) Crops which have been harvested; (B) minerals which have been mined; (C) stock in a mutual water company; (D) growing crops which have been sold.
(C) stock in a mutual water company
Which of the following would be considered real property?
(A) a built in refrigerator in a mobile home not attached to a permanent foundation; (B) trade fixtures installed by a tenant but which are removable without damage; (C) a mature grape crop which is under a sales contract and to be harvested later; (D) a load bearing wall in a single-family house.
(D) a load bearing wall in a single-family house
When the owner of a parcel of land cuts down a tree, it becomes personal property by the process of:
(A) Annexation; (B) mobility; (C) severance; (D) fixation
(C) severance
What are the two main types of encumbrances?
Money (liens) and Non-Money encumbrances
Is a homestead an encumbrance?
No. A homestead is not an encumbrance.
What are the two types of money encumbrances (liens)?
Voluntary (loans, trust deeds, mortgages) and In-Voluntary (mechanic’s liens, judgement liens), Specific (having to do with a particular property), General (burdens on any and all property of the owner in the county they are recorded)
What’s another name for a lien?
A charge against the property
What needs to happen for a mechanic’s lien to be valid?
It must be verified and recorded.
How long do you have to submit a Notice of Non-responsibility after obtaining knowledge of an improvement?
10 days
Which of the following is not an encumbrance?
(A) a lease; (B) an easement; (C) a lien; (D) a homestead.
(D) a homestead
An owner employed Super Construction Co. to install a swimming pool at their home. If the pool company was not paid and it was necessary for them to file a lien for payment of the contract, the encumbrance created would be:
(A) a specific lien; (B) a general lien; (C) a voluntary lien; (D) none of the above.
(A) a specific lien
Each of the following are specific liens EXCEPT:
(A) judgement liens; (B) property tax liens; (C) attachment liens; (D) mechanic liens.
(A) judgement liens
Which of the following affect the filing of the mechanics lien?
(A) notice of non-responsibility; (B) date of completion of the project; (C) date of cessation of labor; (D) all of the above.
(D) all of the above
How many days does a contractor have to file a mechanic’s lien if a notice of completion is not recorded?
90 days after completion of the work to the approvement
How long is a lis pendens effective?
(A) 1 year; (B) 2 years; (C) 5 years; (D) as long as the litigation is pending.
(D) as long as the litigation is pending.
Does a lis pendens need to be recorded?
Yes, a lis pendens needs to be recorded.
How is an attachment lien created?
By recording a writ of attachment, which creates a lien on the property.
What is the purpose of an attachment lien?
Legally holds real property to ensure it will be available to satisfy a judgement in a lawsuit.
How is a judgement lien created?
An abstract of judgement is recorded.
How long is a judgement lien valid?
A judgement lien is valid for ten years.
How does a court order the sale of a property to satisfy a judgement lien?
With a writ of execution, satisfied by a sheriff’s sale.
What are the three types of non-money encumbrances?
Easements
Encroachments
Restrictions
Which of the following is true concerning a lis pendens?
(A) a lis pendens can only be removed by a court order; (B) a lis pendens can be recorded against real property no matter what type of lawsuit is pending; (C) a lis pendens may affect title to real property based on the results of the lawsuit; (D) none of the above.
(C) a lis pendens may affect title to real property based on the results of the lawsuit
Which of the following would be classified as a lien?
(A) a notice to pay or quit; (B) an attachment; (C) a recorded declaration of homestead; (D) all of the above.
(B) an attachment
All of the following significantly impact the physical use of real property EXCEPT:
(A) an increase in the front setback requirement; (B) CC&Rs; (C) deed restrictions; (D) specific liens.
(D) specific liens
What are the three ways that an easement can be created?
- Express grant (granted by servient tenement)
- Reservation (i.e.: created during creation of subdivision)
- Prescription (5 years open, notorious use)
Can a tenant grant an easement?
Yes, but it will only last for the duration of the lease.
What are the four ways to terminate an easement?
Express release - dominant tenement signs quitclaim deed
Merger - The two properties become one
Non-use of a prescriptive easement for five years (only prescriptive)
Destruction - of the servient tenement
How long does a property owner have to sue a neighbor for an encroachment to have it removed?
3 years
Gregory, who does not own any land in the area, has an easement to cross land owned by another person. This easement can be described as:
(A) an appurtenant easement; (B) an easement in gross; (C) a non-occupied easement; (D) a license.
(B) an easement in gross
All of the following terminate easements, EXCEPT:
(A) destruction of the servient tenement; (B) merger of the dominant and servient tenement; (C) non-use for five years of an easement by express grant; (D) express release by the owner of the dominant tenement.
(C) non-use for five years of an easement by express grant
Upon moving into the home they had recently purchased, Mr. and Mrs. Katz discovered that their neighbor had built a wall which encroached onto their property by three feet. When they purchased the home, they received a standard coverage title insurance policy. If a friendly settlement cannot be negotiated, who will Mr. and Mrs. Katz sue?
(A) the title company; (B) the previous owner in the chain of title; (C) the neighbor, because the encroachment is a trespass; (D) the neighbor, if the encroachment has been in place less than five years.
(C) the neighbor, because the encroachment is a trespass
An occupant violated the CC&Rs of the homeowners association. The remedy for the breach of a condition is:
(A) less severe than the violation of a covenant; (B) more severe than the violation of a covenant; (C) the same as a breach of covenant; (D) not related to the CC&Rs.
(B) more severe than the violation of a covenant
Mr. Hayward has been burning leaves on his front lawn in violation of the CC&Rs of his subdivision. His neighbors have filed a lawsuit and have received a court order, ordering Mr. Hayward to stop burning the leaves. That court order would be called:
(A) a lis pendens; (B) an attachment lien; (C) an injunction; (D) a writ of habeas corpus.
(C) an injunction
An apartment building which was built prior to the enactment of a zoning ordinance prohibiting apartment units within the area where a building is situated is called:
(A) a variance; (B) a violation of the applicable general plan; (C) a non-conforming use; (D) in violation of the zoning law.
(C) a non-conforming use
If zoning conflicts with deed restrictions, what prevails?
The more restrictive of the two controls. “The most restrictive restriction restricts you.”
What is the name of an estate of indeterminable duration?
A freehold estate
What are the two main types of freehold estates?
Fee simple estate and life estate
What are the two types of fee simple estates?
- Fee simple absolute (the highest and greatest interest in real propertry)
- Fee simple defeasible (there are conditions/limits on the use of the property)
What are the four other names for a fee simple estate?
estate of inheritance
perpetual estate
estate in fee
fee estate
What is it called when a condition in a deed will cause title to revert back to the grantor if certain acts occur in the future – as in a fee simple defeasible estate?
A condition subsequent
Is the life estate a freehold estate?
Yes, because there is no way to know when the duration of the estate will end.
What is the name of the estate held by the original grantor of a life estate if the property is to revert back to them?
Estate in reversion
The city planning commission recently changed the zoning for a neighborhood from C-1 to R1. This change in zoning can best be described as:
(A) spot zoning; (B) upzoning; (C) downzoning; (D) depressive zoning
(C) downzoning
The zoning for a subdivision said that each lot must contain a minimum of 10,000 square feet. The deed restrictions said that each lot must contain a minimum of 15,000 square feet. Which would control?
(A) the most recent restriction; (B) deed restrictions; (C) zoning; (D)whichever restriction was created first.
(B) deed restrictions
Jack owns a life estate based upon his own life. He leases the property to a tenant on a five year lease. Jack, the life tenant dies two years later. What happens to the lease?
(A) the lease continues in effect for the full five years; (B) the lease terminates; (C) the lease continues in effect, but the tenant must renegotiate the monthly rent with the holder of the estate in reversion; (D) the lease was always null and void, because a life tenant may not lease the life estate.
(B) the lease terminates
What are two other names for a less-than-freehold estate?
Leasehold estate
Chattel real
Is a less-than-freehold estate real or personal property?
A less-than-freehold estate is personal property.
What are the four types of leasehold estates?
Estate for years – must have a termination date
Estate of periodic tenancy – month-to month
Estate at will – occupancy for an indefinite period
Estate at sufferance – tenant retains possession after expiration of the lease term
What are the two parties of a leasehold estate?
Lessor (landlord) and lessee (tenant)
What are the three types of leases?
Gross – Lessee pays a fixed amount
Net – Lessee pays expenses like taxes, insurance, etc.
Percentage – Lessee pays rent based on gross receipts
All of the following are less-than-freehold estates, EXCEPT:
(A) a leasehold estate; (B) an estate for years; (C) a life estate; (D) all of the above are less-than-freehold estates.
(C) a life estate
Real property includes all of the following, EXCEPT:
(A) vegetation; (B) leasehold estates; (C) improvements; (D) minerals.
(B) leasehold estates
When rent is based on a portion of the gross receipts of a business, the lease is called:
(A) a gross lease; (B) a net lease; (C) a percentage lease; (D) a fixed lease.
(C) a percentage lease
What is needed for the creation of a lease?
L - Length of time
A - Amount of rent and method of payment
N - Names of the parties
D - Description of the property
How long must the term of a lease be for in order to necessitate that it must be in writing?
Over 1 year
What is the maximum durations for an agricultural/horticultural leases?
51 years
What is the maximum duration for an urban property lease?
99 years
Who needs to sign a lease?
The landlord only. By taking possession and paying rent, the tenant makes the lease enforceable.
May a tenant assign or sublease without the landlord’s permission?
Yes, unless the lease prohibits it
In a lease whose duration is greater than one year, what is not required?
(A) writing; (B) signatures from both the lessor and lessee; (C) termination date; (C) amount of rent and the method of payment.
(B) signatures from both the lessor and lessee
A sublease is:
(A) the same as an assignment of lease; (B) a transfer of the entire leasehold to the sublessee; (C) a transfer of less than the entire leasehold to the sublessee; (D) limited to a term of 10 years.
(C) a transfer of less than the entire leasehold to the sublessee
When a leaseholder (tenant) signs a valid and enforceable contract with an asignee, the asignee who acquires the leasehold becomes a:
(A) grantor; (B) tenant; (C) sublessee; (D) landlord.
(B) tenant
When a tenant vacates a rental unit, the landlord must return the unused portion of the deposit within how many days?
21 days
What’s the difference between “Surrender” and “Abandonment” when it comes to leasehold estates?
In a surrender, the landlord and tenant mutually agree to terminate the lease. In abandonment, the tenant gives up possession without the landlord’s consent.
May a landlord enter a rented unit?
Yes, after giving a reasonable notice for the purpose of showing the unit to a buyer for the building.
The hot water heater in an apartment breaks. The tenant has a $1,250 month to month rental agreement. The tenant may:
(A) deduct up to $312.50 to pay for the repair; (B) deduct up to $625 to pay for the repair; (C) deduct up to $1,250 to pay for the repair; (D) deduct up to $3,750 to pay for the repair.
(C) deduct up to $1,250 to pay for the repair
The amount of security deposit a landlord may collect from a prospective tenant is dependent upon:
(A) competition from other apartments in the area; (B) the term of the lease and whether the apartment is furnished or unfurnished; (C) the number of children occupying the unit; (D) the total number of tenants who occupy the premises.
(B) the term of the lease and whether the apartment is furnished or unfurnished
The covenant of quiet enjoyment most directly relates to:
(A) nuisances maintained on adjoining property; (B) possession of real property; (C) title to real property; (D) all of the above.
(B) possession of real property
If a property is condemned under the Health and Safety Code (for example, because the structure is unsafe), is there any compensation paid?
No
All of the following are included in the laws governing the government power of eminent domain, EXCEPT:
(A) fair compensation at fair market value to the owner; (B) condemnation action in court; (C) the right of the government to take property from the owner for a legitimate public use; (D) the exercise of zoning authority
(D) the exercise of zoning authority
A large airport changed the flight pattern, extending the runways and creating excessive noise which made Mrs. Chang’s house unusable. The legal proceeding by which Mrs. Chang may force the authorities to purchase property is called:
(A) inverse condemnation; (B) eminent domain; (C) police power; (D) quiet title action
(A) inverse condemnation
The legitimacy of zoning laws rests upon:
(A) the fact that planning boards are local, and close to the neighborhood they regulate; (B) the government’s police power to pass laws for the order, safety, health, morals, and general welfare of the public; (C) the ease of enforcing them; (D) the fact that their enforcement does not interfere with interstate commerce.
(B) the government’s police power to pass laws for the order, safety, health, morals, and general welfare of the public
For more than three generations, the Corderro family has owned the right to operate a gold mine on land which belonged to a neighbor. One day, the neighbor sold the land and the new owner immediately fenced in the property and padlocked the gate to the entrance. What should the Corderros do?
(A) the Corderros should get a quitclaim deed from the new owner; (B) the Corderros should file a quiet title action in court; (C) the Corderros should give a quitclaim deed to the new owner; (D) the Corderros should do nothing.
(B) the Corderros should file a quiet title action in court
In the sale of real property which is a part of the estate of a deceased person, which of the following normally determines the amount of commission paid to the real estate broker?
(A) the local multiple listing service; (B) the administrator or executor of the estate; (C) a court order; (D) the California Department of Real Estate.
(C) a court order
What is the primary tool used by planning commissions to implement a general plan?
(A) zoning; (B) adverse possession; (C) eminent domain; (D) master plan.
(A) zoning
What is the difference between the Subdivision Map Act and the Subdivided Lands Law?
The Subdivision Map Act grants cities and counties control over the design of a subdivision (four or less parcels). The Subdivided Lands Law was designed to prevent fraud (covers five or more parcels along with the Subdivision Map Act).
How long must the receipt for the final public report given to a buyer be kept on file by the subdivider, or his agent?
A minimum of three years
What must the seller of a condominium give the buyer?
- A copy of the condominium’s bylaws and CC&Rs
- The most recent copy of the homeowner’s association’s financial statement.
What kind of real estate development consists of vacant parcels or dilapidated structures in an urban area targeted for new construction?
In-Fill
What are the three phases of building a single family dwelling?
- Land acquisition
- Development
- Construction
What three things primarily control the housing and construction industry?
- Local building codes
- State housing law (Health and Safety Code)
- Contractors State License Law
After several lots have been sold in a subdivision, the Real Estate Commissioner was informed of misrepresentations being made by the developer. The Commissioner may stop the sale of more lots by:
(A) revoking the final public report; (B) issuing a writ of prohibition; (C) filling an accusation in court; (D) issuing a desist and refrain order.
(D) issuing a desist and refrain order
“In-fill” is a kind of real estate development which consists of:
(A) older, lower density housing, which is targeted for newer higher density housing; (B) vacant parcels or dilapidated parcels in an urban area targeted for new construction; (C) underdeveloped suburban fringe property targeted for small scale commercial development; (D) industrial toxic waste area scheduled to be cleaned up for recreational use.
(B) vacant parcels or dilapidated parcels in an urban area targeted for new construction
Which of the following best identifies the three phases normally involved in building a single-family dwelling?
(A) construction proposal, map approval, and buyer qualification; (B) financing, building and resale; (C) land acquisition, development, and construction; (D) syndication, subdivision, and relocation.
(C) land acquisition, development, and construction
Which sets the highest construction standards – federal, state, or local building codes?
Local building codes
Who issues building permits?
The Department of Building and Safety
Who enforces minimum construction standards?
Inspectors for the Department Of Building and Safety (also known as local building inspectors)
Who is responsible for assuring completion of streets, curbs, sidewalks, and other common areas in a new subdivision?
The developer
Who enforces the regulation of sanitation, sewage and occupancy?
Local health officers
At what point is flooding considered “frequent?”
If it occurs more than once in 10 years.
There are multiple building codes regulating construction. Which code usually sets the highest construction standards?
(A) Local building codes; (B) State building codes; (C) Federal building codes; (D) Uniform building codes.
(A) Local building codes
A “negative declaration” in a discussion of environmental impact means that the proposed subdivision:
(A) has been disapproved by the Real Estate Commissioner for the issuance of a public report, and the developer may not proceed with the construction; (B) will have a negative impact on the environment and create an environmental hazard; (C) will have an insignificant effect upon the environment and the developer will not have to pay for a full environmental impact report; (D) has been disapproved because of other environmental hazards in the neighborhood.
(C) will have an insignificant effect upon the environment and the developer will not have to pay for a full environmental impact report
When the government has granted permission to a non-riparian owner of a ranch to use a nearby lake, the owner has received this right by:
(A) eminent domain; (B) prescription; (C) appropriation; (D) percolation
(C) appropriation
Each of the following factors determine whether an item of personal property has become real property, EXCEPT:
(A) method of annexation or attachment; (B) cost of the item; (C) relationship between the parties; (D) agreement between the parties.
(B) cost of the item
Real property includes:
(A) chattel mortgages; (B) trust deeds; (C) vegetation; (D) chose.
(C) vegetation
In addition to a grant deed, is a separate contract required for the sale of stock in a mutual water company?
(A) yes, stock is always personal property and must be transferred with a bill of sale; (B) no, stock in a mutual water company cannot be sold; (C) yes, because stock in a mutual water company is chattel real; (D) no, water company stock runs with the land.
(D) no, water company stock runs with the land
Which of the following is not a lien?
(A) taxes; (B) restrictions; (C) trust deeds; (D) judgements.
(B) restrictions
A trust deed was recorded against a property on 1/5/12. Work started on remodeling the property’s kitchen on 2/2/12. A mechanic’s lien was recorded on 3/5/12. Which lien has priority?
(A) mechanic’s liens always have priority; (B) the mechanic’s lien has priority if the lender was notified of the remodeling project; (C) the trust deed has priority because it was recorded before the work began; (D) none of the above.
(C) the trust deed has priority because it was recorded before the work began
A subcontractor was hired to install hardwood floors on a home under construction. If the subcontractor had to file a mechanic’s lien to get paid, the mechanic’s lien would take priority as of the date:
(A) the installation of the hardwood floors began; (B) the entire project began; (C) work was completed on the entire project; (D) work was completed on the hardwood floors.
(B) the entire project began
When the project of improvement on real property has been completed and the owner has not filed a “notice of completion” how many days do claimants have to file mechanic’s liens?
(A) 30 days; (B) 60 days; (C) 90 days; (D) unlimited.
(C) 90 days
All of the following are required for the existence of an appurtenant easement, EXCEPT:
(A) two parcels of land owned by two different persons; (B) the dominant tenement and the servient tenement must physically abut each other; (C) the easement is transferred with the transfer of the dominent tenement; (D) the easement benefits the one tenement and burdens the other.
(B) the dominant tenement and the servient tenement must physically abut each other
The grant of an unlocated easement in a transfer of real property is:
(A) void for lack of certainty; (B) valid; (C) invalid because an easement must be specifically located; (D) voidable because a deed cannot be used to create an easement.
(B) valid
Clyde purchased one of 40 lots in a subdivision and signed a contract which stated, “No owner of a lot in this subdivision shall put a ‘for sale’ sign on his lot until all of the lots owned by the subdivider are sold.” If Clyde wants to sell his lot before the subdivider has sold all of his lots, he may:
(A) not use a “for sale” sign because of the statement in the contract; (B) use a reasonably sized “for sale” sign because the statement in the contract is illegal; (C) use a “for sale” sign of any size if he pays a fee to the developer; (D) may be sent to jail for violation of the contract.
(B) use a reasonably sized “for sale” sign because the statement in the contract is illegal
The method by which a local planning commission permits an inconsistency to the construction, systems, or standards within applicable building codes is best known as:
(A) a variance; (B) an exemption; (C) a permit; (D) spot zoning.
(A) a variance
John gave Mary a grant deed transferring title to Mary “upon condition that” the title would be forfeited and revert back to John if alcoholic beverages were ever consumed on the premises. The title held by Mary can be described as:
(A) an estate in jeaopardy; (B) a fee simple estate; (C) a less than freehold estate; (D) a fee simple defeasible.
(D) a fee simple defeasible
When a condition in a deed will cause title to revert back to the grantor if certain acts occur in the future, the condition may be described as a:
(A) condition precedent; (B) condition subsequent; (C) null condition; (D) none of the above.
(B) condition subsequent
In the usual percentage lease, rent is calculated as a percentage of:
(A) the assets of the lessee’s business; (B) the net sales of the lessee’s business; (C) the gross sales of the lessee’s business; (D) the net taxable income of the lessee’s business.
(C) the gross sales of the lessee’s business
When a lessee assigned his lease to someone else, the lessee:
(A) is no longer obligated for the rent only; (B) is no longer obligated under the lease; (C) is no longer obligated for the maintenance fee; (D) may be obligated to pay the rent and maintenance.
(D) may be obligated to pay the rent and maintenance
When leasing an unfurnished apartment, a lessor may not take a security deposit exceeding:
(A) $1,000; (B) one month’s rent; (C) two months’ rent; (D) three months’ rent
(C) two months’ rent
Title to real property can be acquired by an individual by all of the following ways, EXCEPT:
(A) prescription; (B) patent; (C) intestate succession; (D) escheat.
(D) escheat
The court action used to settle ownership issues related to ownership of a parcel of real property is called:
(A) a partition action; (B) an interdiction; (C) a quiet title action; (D) a lis pendens.
(C) a quiet title action
How is title perfected by someone who has met the requirements to take property by adverse possession?
(A) by a quiet title action in court; (B) by recording a writ of execution; (C) by prescription; (D) by paying the current year’s property taxes.
(A) by a quiet title action in court
The law which gives cities and counties control over the physical design of subdivisions is:
(A) Subdivison Map Act; (B) Architecture Control Act; (C) the City and County Act; (D) Subdivided Land Law.
(A) Subdivison Map Act
The regulation of the housing and construction industries is accomplised by:
(A) local building codes; (B) State housing act; (C) the Contractor’s State License Law; (D) all of the above.
(D) all of the above
