Encumbrances Chapter 3

Question 1

A (BLANK) is a document that uses a property to secure the payment of a debt or the discharge of an obligation. It is money owed for one reason or another on a property.

Answer 1

LIEN

Question 2

Liens are either:

Answer 2

1.Specific
2.General
3.Voluntary
4.Involuntary

Question 3

(BLANK) LIENS are money debts that an owner agrees to pay.

Answer 3

VOLUNTARY

Question 4

(BLANK) LIENS are money obligations that create a burden on a property by government taxes or legal action because of unpaid bills.

Answer 4

INVOLUNTARY

Question 5

(BLANK) LIENS are liens against just one property.

Answer 5

SPECIFIC

Question 6

(BLANK) LIENS are liens on all the properties of the owner, not just one

Answer 6

GENERAL

Question 7

A (BLANK) is a lien that secures real property for the payment of a promissory note(debt). **(BLANKS) **are rarely employed in financing California homes, but because of their wide use in other states, they are emphasized in the real estate licensing examination.

a volunatary ans specifc lien

Answer 7

MORTGAGE

Question 8

(BLANK’S) LIENS are liens that may be filed against a property by a person who was not paid after furnishing labor or materials for construction work on that property.

Answer 8

MECHANIC’S

Question 9

A mechanic’s lien is filed against a property and must be (BLANK) to be valid.

Answer 9

RECORDED

Question 10

A (BLANK) NOTICE is a written notice that must be given before filing a mechanic’s lien and within 20 days of supplying labor or services.

Answer 10

PRELIMINARY

Question 11

A “Notice of (BLANK),” in order to be valid, should be recorded by the owner within 10 days of completion, thereby limiting the general contractor to 60 days to file a claim and subcontractors to 30 days.

mechanic’s liens

Answer 11

COMPLETION

Question 12

A recorded and verified NOTICE OF (BLANK) is posted on the property stating that the owner is not responsible for the work being done.

applies to mechanic’s lien

Answer 12

NON-RESPONSIBILITY

Question 13

Voter approved local improvements are paid by the property owners in a given district through (BLANK). Improvements such as streets, sewers, street lighting, and irrigation projects are generally paid for by the property owners who have benefited from thework. If these (BLANK) are not paid, they become a lien against the property. Most** (BLANK)** are 10- to 30-year bonds.

Answer 13

SPECIAL ASSESSMENTS

Question 14

A (BLANK) is a court decision determining the rights of the parties involved and the amount of compensation.

type of involuntary and general lien

Answer 14

JUDGMENT

Question 15

(BLANK) is a process of the law that creates a lien. It gives custody of real or personal property to the court to assure payment of a pending lawsuit in that county.

Answer 15

ATTACHMENT

Question 16

(BLANK) is the recording of a notice with the county recorder’s office warning all persons that a certain type of lawsuit is pending concerning a particular property.

Answer 16

LIS PENDENS

Question 17

An (BLANK) is a court order which can restrict a party from doing an act such as violating private deed restrictions

Answer 17

INJUNCTION

Question 18

An (BLANK) is an interest in land owned by another person consisting of the right to use or control the land, or an area above or below it, for a specific, limited purpose.

type of encumbrance

Answer 18

EASEMENT

Question 19

What are the 2 types of easements:

Answer 19

1. Easements appurtenant (runs with the land)
2. Easements in gross

Question 20

An EASEMENT (BLANK) is an easement “created for and beneficial to” the owner of adjoining or attached lands.

Answer 20

APPURTENANT

Question 21

The (BLANK) TENEMENT is the land that obtains the benefits of an easement.

Answer 21

DOMINANT

Question 22

A (BLANK) TENEMENT is the land that GIVES the easement (use of the land) forthe benefit of another.

Answer 22

SERVIENT

Question 23

An EASEMENT IN (BLANK) is not attached to any particular land or dominant tenement. It is an easement created for the benefit of others who do not own adjoining or attached lands.

Answer 23

GROSS

Question 24

3 ways to create an easement:

Answer 24

1. Express Grant (in writing)
   2.Implication of Law (implied easement) (necessary for use of land)

3.Long Use (prescription)
Possession for five continuous years can create a prescriptive easement, as long as the use is:
1. Open and notorious,
2. Uninterrupted for five years
3.Under a claim of right or color of title, and
4. Hostile (without permission of the owner)

Question 25

4 ways to terminate an easement:

Answer 25

1. Express release(in writing)
2. Merger of dominant and servient tenement
3. excessive use
4. abandonment/non-use

Question 26

PRIVATE DEED RESTRICTIONS limit the use or occupancy of the land.

Question 27

A (BLANK) is a promise to do or not to do a certain thing.

Answer 27

COVENANT

Question 28

A (BLANK) is a future and uncertain event which must happen to create an obligation to extinguish an existing obligation. The penalty for not following the set conditions is the **reversion **of the property to the grantor.

Answer 28

CONDITION

Question 29

PUBLIC RESTRICTIONS are limits made by governmental agencies, usually by cities and counties, in the form of zoning

Question 30

(BLANK) is the restriction on the use of private property by the local governmentagency.

Answer 30

ZONING

Question 31

AN (BLANK) is the wrongful, unauthorized placement ofimprovements or permanent fixtures on property by a non-owner of that property.

Answer 31

ENCROACHMENT