Encumbrances to Real Estate

Question 1

Since an encumbrance can limit the transferability or use of property, it may affect the property’s

(a) title.
(b) equity.
(c) structure.
(d) value.

Answer 1

(d)value.

Because it can limit the transferability or use of property, an encumbrance may affect the property’s value.

Question 2

Which of the following liens covers all the property of a person?

(a) Specific lien
(b) Mechanic’s lien
(c) General lien
(d) None of the above

Answer 2

(c)General lien

A general lien is on more than one property of a debtor as opposed to a specific lien which is a lien on a single property of a debtor.

Question 3

Which of the following may file a valid mechanic’s lien?

(a) Architect
(b) Truck driver
(c) Subcontractor
(d) All of the above

Answer 3

(d)All of the above

Question 4

A property owner would post a notice of nonresponsibility to

(a) perfect a security instrument.
(b) protect against unauthorized work.
(c) protect against judgments.
(d) All of the above

Answer 4

(b)protect against unauthorized work.

Question 5

The seizure of property prior to a judgment is known as

(a) excessive force.
(b) an attachment.
(c) a seizure execution.
(d) serving the judgment.

Answer 5

(b)an attachment.

An attachment is the process by which real or personal property of a defendant in a lawsuit is seized and retained in the custody of the law for satisfaction of the judgment.

Question 6

In a Chapter 7 bankruptcy liquidation, the court takes possession of the assets of the debtor and

(a) reduces the total debt to a manageable level.
(b) sells the assets to pay off creditors on a pro rata basis.
(c) reorganizes debtor’s personal financial situation to the satisfaction of creditors.
(d) forgives all debt that existed at the time of filing.

Answer 6

(b)sells the assets to pay off creditors on a pro rata basis

Question 7

A water company’s right to run a water line through private property would most likely be

(a) riparian rights.
(b) correlative rights.
(c) an easement in gross.
(d) a dominant tenement.

Answer 7

(c)an easement in gross.

This is an example of a commercial easement in gross.

Question 8

A water company’s right to run a water line through private property would most likely be

(a) riparian rights.
(b) correlative rights.
(c) an easement in gross.
(d) a dominant tenement.

Answer 8

(c)an easement in gross.

Question 9

If a tract is landlocked — that is, there is no road access to any part of it, the owner of such tract has a(n)

(a) easement by prescription.
(b) easement by necessity.
(c) easement in gross.
(d) appurtenant easement.

Answer 9

(b)easement by necessity.

Question 10

All of the following are ways to terminate an easement EXCEPT

(a) Abandonment of a prescriptive easement
(b) Merger of the easement with the servient tenement
(c) Destruction of the servient tenement
(d) Unilateral action by the dominant tenement

Answer 10

(d)Unilateral action by the dominant tenement

The owner of the dominant tenement cannot take unilateral action to terminate an easement.

Question 11

An easement differs from a license in that a license

(a) must be created by written instrument.
(b) is of indefinite duration.
(c) may be assigned.
(d) may be revoked.

Answer 11

(d)may be revoked.

A license is the personal, revocable, nonassignable permission to do some act on the land of another. An easement cannot be revoked.

Question 12

Who usually creates deed restrictions?

(a) Developer
(b) Cities and counties
(c) State government
(d) Federal government

Answer 12

(a)Developer

Question 13

Which of the following statements concerning deed restrictions is correct?

(a) A covenant includes conditions and equitable servitudes.
(b) A violation of a condition can result in forfeiture of title to real property.
(c) Private restrictions must be for public health, safety, and general welfare.
(d) Covenants are more restrictive and costly for the owner than conditions.

Answer 13

(b)A violation of a condition can result in forfeiture of title to real property.

Question 14

A covenant in Johnson’s deed states that he may not operate a dog kennel on the property. Johnson proceeds to build a commercial dog kennel. Adjoining land owners would have recourse by

(a) taking Johnson’s property.
(b) suing Johnson for damages.
(c) seeking an injunction.
(d) filing criminal charges.

Answer 14

(c)seeking an injunction.

Question 15

Deed restrictions based upon race are

(a) enforceable.
(b) voidable.
(c) valid.
(d) void.

Answer 15

(d)void.

Question 16

The eave of your neighbor’s new house hangs six inches over your land. This describes a(n)

(a) encroachment.
(b) easement.
(c) private nuisance.
(d) encumbrance.

Answer 16

(a)encroachment.

Question 17

The eave of your neighbor’s new house hangs six inches over your land. This describes a(n)

(a) encroachment.
(b) easement.
(c) private nuisance.
(d) encumbrance.

Answer 17

(a)encroachment.

Question 18

A member of a family unit of two or more persons qualifies a homeowner for a

(a) $50,000 homestead exemption.
(b) $75,000 homestead exemption.
(c) $100,000 homestead exemption.
(d) $150,000 homestead exemption.

Answer 18

(c)$100,000 homestead exemption.

Being a member of a family unit of two or more persons qualifies a homeowner for a $100,000 exemption. At least one member of the family unit must own no interest in the property or the interest must be a community property interest with the person claiming the exemption.

Question 19

A member of a family unit of two or more persons qualifies a homeowner for a

(a) $50,000 homestead exemption.
(b) $75,000 homestead exemption.
(c) $100,000 homestead exemption.
(d) $150,000 homestead exemption.

Answer 19

(c)$100,000 homestead exemption.

Being a member of a family unit of two or more persons qualifies a homeowner for a $100,000 exemption. At least one member of the family unit must own no interest in the property or the interest must be a community property interest with the person claiming the exemption.

Question 20

Liens are classified as:

	(a) writs of attachment.
	(b) encumbrances.
	(c) easements.
	(d) encroachments.

Answer 20

(b) encumbrances.

Question 21

Which of the following could NOT file a mechanic’s lien?

	(a) Contractor
	(b) Equipment lessor
	(c) Architect
	(d) Home improvement lender

Answer 21

(d) Home improvement lender

Question 22

A mechanic’s lien requires:

	(a) a deed.
	(b) a promissory note.
	(c) preliminary notice.
	(d) a servient tenement.

Answer 22

(c) preliminary notice.

Question 23

A notice of nonresponsibility would protect an owner from:

	(a) a foreclosure.
	(b) an eviction.
	(c) a mechanic's lien.
	(d) trespassers.

Answer 23

(c) a mechanic’s lien.

Question 24

The right of an owner of a parcel of land to travel over an adjoining parcel of land is known as:

	(a) a restriction.
	(b) an easement.
	(c) a covenant.
	(d) an encroachment.

Answer 24

(b) an easement.

Question 25

When a landowner has the right to travel over the property of an adjoining landowner, the property that benefits from the easement right is called the:

	(a) dominant tenement.
	(b) servient tenement.
	(c) life tenant.
	(d) tenant at will.

Answer 25

(a) dominant tenement.

Question 26

A promise by a property owner NOT to do something is called a:

	(a) covenant.
	(b) prescription.
	(c) restriction.
	(d) restraint on alienation.

Answer 26

(a) covenant.

Question 27

A condition that would prohibit a property owner from transferring title to the property is known as a:

	(a) restraint on alienation.
	(b) writ of attachment.
	(c) restriction.
	(d) judgement.

Answer 27

(a) restraint on alienation.

Question 28

A prohibition in a deed against a property use is known as:

	(a) a restriction.
	(b) an easement.
	(c) a condition.
	(d) an encroachment.

Answer 28

(a) a restriction.

Question 29

An improvement that extends onto an adjacent property without permission is an:

	(a) easement.
	(b) avulsion.
	(c) encumbrance.
	(d) encroachment.

Answer 29

(d) encroachment.