Exam1

Question 1

Question: A fee simple absolute estate would best be defined as:
A: An estate based on a condition subsequent;
B: An estate without encumbrances which can be easily transferred;
C: The highest interest a person can have in real property;
D: An estate which is less-than-freehold.

Answer 1

C

Question 2

A fee simple absolute estate is the highest interest one can own in land. It is not based on a condition or event which subsequently happens, nor is it a less-than-freehold estate. Because it is of indefinite duration, it is a freehold estate.
Question 2 of 150
Question: Of the following, which best defines a fee simple estate:
A: Title in the owner without limitations;
B: An estate for years;
C: A life estate;
D: The most interest that one can hold in land.

Answer 2

D

Question 3

Question: An estate is granted to “A” for the life of “X.” “A” dies while “X” is still living. The estate:
A: Ceases to exist;
B: Reverts to the original grantor;
C: Vests in “X” for his life;
D: Vests in the heirs or devisees of “A.”

Answer 3

D

Question 4

Question 4 of 150
Question: Tyson owns a store building which he leased to Crown for seven years. Crown's estate in the store building is: 
A:  Personal property; 
B:  Estate for years; 
C:  A chattel real; 
D:  All of the above.

Answer 4

D

Question 5

Question: An instrument which usually transfers possession of real property, but does not transfer ownership is: 
A:  A mortgage; 
B:  A sublease; 
C:  A security agreement; 
D:  An easement.

Answer 5

B

Question 6

Question: Which of the following would be considered real property?
A: A maturing grape crop which is under a sales contract and 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.

Answer 6

D

Question 7

Question: Personal property can never:
A:  Become real property;
B:  Be hypothecated;
C:  Be alienated;
D:  None of the above.

Answer 7

D

Question 8

Question: Jones conveyed his ranch to Brown using a land contract. The ranch was serviced by a mutual water company, and Jones was a stockholder in the company. The stock which Jones owned was appurtenant to the land. Does Brown have to enter into a separate contract for the stock of the mutual water company:
A: Yes, since stock is always personal property and therefore not included in land contracts;
B: No, because land in California cannot be sold without water rights;
C: Yes, because real property is not always accompanied by water rights;
D: No, because the stock was appurtenant to the land and therefore part of the real property and part of the land contract.

Answer 8

D

Question 9

Question: The law permits a real estate licensee to act as an agent in the sale of some mobile homes. All of the following acts are grounds for discipline by the Real Estate Commissioner against a real estate salesperson’s license, except:
A: Selling, as agent, a mobile home which is greater than 8 feet in width and 40 feet in length;
B: Failing to provide for the delivery of a properly-endorsed certificate of ownership from the seller to the buyer;
C: Advertising a used mobile home for sale as “new”;
D: Submitting a check to the Department of Housing and Community Development for any fee in connection with the title transfer if the check is thereafter refused payment by the bank.

Answer 9

A

Question 10

Question: 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.

Answer 10

B

Question 11

Question: When a pest control company discovers no evidence of infestation of termites, but discovers conditions which may lead to such infestation, the cost of correcting such conditions is paid by:
A: The seller in all cases;
B: The buyer in all cases;
C: The seller and the buyer, each paying one-half of the cost;
D: The buyer only if he chooses to have the condition corrected.

Answer 11

D

Question 12

Question: To alienate title to property, one:
A:  Encumbers the title;
B:  Clouds the title;
C:  Records a homestead;
D:  Conveys title.

Answer 12

D

Question 13

Question: When real property is sold, a copy of the structural pest control report must be given, if requested, to:
A:  The buyer;
B:  The lender;
C:  The broker;
D:  The escrow company.

Answer 13

A

Question 14

Question: Legally and technically, property is defined as:
A: Freehold estates;
B: Things which buyers and sellers own;
C: Rights or interests which a person has in the thing owned;
D: Only personal property.

Answer 14

C

Question 15

Question: A deed:
A: When recorded, gives actual notice of its contents;
B: If recorded, will not give the grantee the usual protection of the recording laws if it is a quitclaim deed;
C: Can only be recorded in one county;
D: Does not have to be recorded to transfer title.

Answer 15

D

Question 16

Question: Of the following types of deeds, which one would contain no warranties, expressed or implied:
A:  A wild deed;
B:  A quitclaim deed;
C:  A bargain and sale deed;
D:  A grant deed.

Answer 16

B

Question 17

Question: The main purpose of a deed is to:
A: Provide evidence of the terms of a real property transaction;
B: Evidence the change in title or transfer of an interest in real property;
C: Identify the parties involved in a real property transfer;
D: Provide a written instrument that can be recorded.

Answer 17

B

Question 18

Question: When a valid grant deed is prepared, title passes when it is:
A:  Acknowledged;
B:  Delivered;
C:  Signed;
D:  Recorded.

Answer 18

B

Question 19

Question: Which of the following persons would usually be in the weakest position against loss of property due to a claim of title by an outside person:
A: The holder of a recorded deed who rents the property;
B: The holder of a certificate of title to property issued by a title company;
C: The holder of an unrecorded deed who occupies the property;
D: The holder of an unrecorded quitclaim deed who does not occupy the property.

Answer 19

D

Question 20

Question: An easement could be created for what length of time:
A:  Perpetuity;
B:  The lifetime of a person;
C:  A term of years;
D:  Any of the above.

Answer 20

D

Question 21

Question 21 of 150
Question: The land that is benefitted by an easement is called the:
A:  Defeasible fee;
B:  Subjective property;
C:  Dominant tenement;
D:  Servient tenement.

Answer 21

C

Question 22

Question: The requisites of a grant deed when compared to a land contract of sale may differ with respect to:
A:  Interest conveyed;
B:  Signatures of the principal parties;
C:  Designation of purchase price;
D:  All of the above.

Answer 22

D

Question 23

Question: Land that is subject to an easement is said to be:
A:  Appurtenant thereto;
B:  Encroached upon;
C:  Encumbered;
D:  Restricted.

Answer 23

C

Question 24

Question: Mr. and Mrs. Winters hired the Superb Construction Company to install a swimming pool on their residential premises. In the event the construction company was unpaid 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.

Answer 24

A

Question 25

Question: If there has not been an agreement to the contrary, all of the following would qualify as a negotiable instrument, except:
A: An installment note;
B: A personal check;
C: A mortgage securing a promissory note;
D: A bank draft.

Answer 25

C

Question 26

Question: A straight note, same term and interest rate, would:
A: Involve more interest than an installment note;
B: Involve less interest than an installment note including interest;
C: Involve less interest than a joint and several installment note that is payable plus interest;
D: Involve the same amount of interest as an installment note plus interest.

Answer 26

A

Question 27

Question: Which of the following is not a true statement about easements:
A: An easement in gross is a right in another’s land created for the benefit of adjacent land;
B: An easement is a non-possessory interest;
C: An owner cannot have an easement in his own land;
D: Because of an easement, one may be restricted in the use of his own land.

Answer 27

A

Question 28

Question: An easement in gross:
A:  Benefits dominant land;
B:  Burdens servient land;
C:  Cannot be owned separately from an interest in land;
D:  Burdens dominant land.

Answer 28

B

Question 29

Question: Easements are terminated by all of the following, except:
A: Prescription by the owner of the servient tenement;
B: Merger of the dominant and servient tenement;
C: Revocation by the owner of the servient tenement;
D: Release by the owner of the dominant tenement.

Answer 29

C

Question 30

Question: A tenant in good standing under a valid five-year lease which makes no mention of assignment or sub-leasing, may legally do which of the following:
A: May sublease the property to another, but only with the consent of the lessor;
B: May assign, but cannot sublease to another;
C: May sublease to another, but can assign only with the consent of the lessor;
D: May sublease or assign the leasehold to anyone, since the lease made no mention of any restrictions on such action.

Answer 30

D

Question 31

Question: A formal declaration, not an oath, that a statement is true or that the declarer will tell the truth is:
A:  An affidavit;
B:  An acknowledgment;
C:  Verification;
D:  An affirmation.

Answer 31

D