National Ownership Flashcards
Of the wood framing systems used in residential construction today, the most common is
platform-frame.
balloon-frame.
pillar and girder.
post and beam.
platform-frame
Which of the following is required for a legal description to be adequate?
It must be written by a licensed real estate attorney.
It must accurately locate and identify the boundaries of the property and distinguish it from all other properties.
It must be included in a survey of the property conducted by a licensed surveyor.
It must accurately identify property boundaries and locate and describe all improvements on the property.
It must accurately locate and identify the boundaries of the property and distinguish it from all other properties.
To be valid and enforceable, a contract must
include earnest money.
be notarized.
convey legal title.
include valuable consideration.
include valuable consideration.
Legal title to an estate in trust is held by the
trustor.
trustee.
beneficiary.
grantor.
trustee
What is the result of a break in the chain of title to a property?
A quitclaim deed is issued.
Title escheats to the state.
Title reverts to the last owner before the break.
There is a cloud on the title.
There is a cloud on the title.
Zoning ordinances are primarily intended to
prevent urban development from encroaching on rural areas
establish how every parcel in the zoning authority’s area of control can be used.
regulate subdivision expansion.
buffer residential and industrial uses.
establish how every parcel in the zoning authority’s area of control can be used.
A seller accepts an offer without realizing that the buyer has died since making the offer. Which of the following best describes the status of the contract?
The contract requires the buyer’s estate to complete the purchase before the estate is probated.
The contract requires the buyer’s heirs to complete the purchase after the estate is settled.
The offer was terminated by the buyer’s death; there is no contract.
The seller must convey the property to the buyer’s heirs under the terms of the contract as originally accepted.
The offer was terminated by the buyer’s death; there is no contract.
Unlike deed restrictions, declaration restrictions
cannot be extinguished by a quitclaim deed.
do not attach to the property.
focus on construction requirements.
are used only on commercial properties.
cannot be extinguished by a quitclaim deed
The owner of a cooperative owns a(n)
proprietary lease.
estate for years.
commercial lease.
periodic lease.
proprietary lease.
Unlike other property taxes, a special assessment tax
does not create a lien on the property.
applies a reduced tax rate to properties not affected by the project to be funded.
applies only to properties which will directly benefit from the project to be funded.
taxes properties with a higher assessed value at a
proportionately higher rate.
applies only to properties which will directly benefit from the project to be funded.
Eminent domain
is applicable only when the owner agrees with the government’s superior claim.
may be exercised with no obligation to compensate the owner.
may be applied to any privately-owned property and for any purpose whatever, including reselling for a profit.
can take a property from an unwilling property owner by process of condemnation.
can take a property from an unwilling property owner by process of condemnation.
In a tenancy in common, the co-owners
are necessarily married.
own equal shares of the estate.
share an indivisible interest.
acquire their interests at the same time.
share an indivisible interest
In a case of mortgage loan delinquency, it is the ______ that determines when foreclosure proceedings will commence.
law
lender
borrower
investors
lender
One of the unique features of the Torrens System of recording is that
conveyance occurs when it is registered on the certificate.
it requires a complete title search to discover title status.
title insurance is mandatory.
encumbrances are recorded in order of priority.
conveyance occurs when it is registered on the certificate.
A valid contract that conveys an interest in real estate must contain
a novation clause.
a title certificate.
a legal description of the property.
the signature of a member of the state bar association.
a legal description of the property.
Except in a title-theory state, a mortgage lienor has a (an) _________ in the liened property.
security interest
an equitable interest
a pro rata share of a legal interest
a dominant interest
security interest
An estate is transferred with the stipulation that trees on the premises will never be cut down or the seller will take back the property. This kind of estate is a
fee simple defeasible.
fee simple absolute.
pur autre vie.
conventional remainder.
fee simple defeasible.
If ABC Company has the right to build a structure on top of DEF’s existing structure, ABC owns
a dominant tenement.
air rights.
the right to improve.
surface rights.
air rights
Why do taxing entities sometimes use an equalization process when assessing properties?
To level out the unevenness of valuations from one area to another
To tailor millage rates to a wide range of assessed values within the taxing district
To make tax rates equal across all jurisdictions
To make all tax bills equal within the taxing district
To level out the unevenness of valuations from one area to another
Bob signs a six-month apartment lease agreement with John. What kind of lease is this?
Tenancy at sufferance
Estate from period to period
Estate at will
Estate for years
Estate for years
Bob can grant his sister Mary an estate for as long as she lives without the right to pass it to heirs by granting a(n)
ordinary life estate.
estate for years.
legal life estate.
estate pur autre vie.
ordinary life estate.
When no legal heirs can be found for the deceased owner of a property, the laws of descent give the property to
the winning bidder in a sheriff’s sale.
the county or state.
the heirs of the previous owner of record.
a registered charity in the nearest municipality.
the county or state.
What is the purpose of Planned Unit Development zoning?
To regulate the placement of industrial and office parks
To combine multiple zoning categories within a single property boundary
To enable a single building permit to cover every structure in a subdivision
To promote an efficient land use design that maximizes open space when whole tracts are developed
To promote an efficient land use design that maximizes open space when whole tracts are developed
An item associated with an item of real property may be distinguished as real or personal property by determining whether it
is valued at a certain percentage of the value of the associated item.
is physically smaller than the associated item.
is permanently attached to land or structures of the associated item.
was acquired at the same time as the associated item.
is permanently attached to land or structures of the associated item.
Stan’s home undergoes foreclosure. The property has the following liens recorded against it: an unpaid real estate tax bill for the current year; a first mortgage dated ten years earlier; a second mortgage dated three years earlier; and a mechanic’s lien entered for work beginning six months earlier. When the property is sold, the LAST lien to be paid off is the
property tax lien.
first mortgage.
mechanic’s lien.
second mortgage.
mechanic’s lien.
To own an “interest in real estate,” one must own
a deed.
an improvement.
some part of the bundle of rights.
acreage.
some part of the bundle of rights.
A deed in lieu of foreclosure
changes the loan terms.
wipes out all liens.
increases the costs of foreclosure.
avoids public notice of a foreclosure.
avoids public notice of a foreclosure.
What purpose is served by recording a deed?
It clears all encumbrances.
It validates the deed.
It transfers title.
It gives constructive notice of ownership.
It gives constructive notice of ownership.
One day, a nosy visitor finds a deed in the attic of a house. The deed is signed by the grantor, who is deceased, but the grantee is not named. The visitor writes in his own name and attempts to record the deed. However, the deed will probably not hold up because
there was no consideration and no intent to deliver.
the grantor did not sign a transfer certificate and attach it to the deed.
the grantee did not sign the deed in the presence of the grantor.
the grantor was deceased at the time of delivery.
there was no consideration and no intent to deliver.
The primary agents of private land use control are
courts by means of police power.
property owners by means of zoning ordinances.
property owners by means of deed restrictions.
grantees by means of restrictive covenants.
property owners by means of deed restrictions.
A metes and bounds description must
describe the parcel’s boundaries as a complete, closed perimeter.
conform to the standards set for the plat of survey.
use rods and acres to quantify linear and area
measurements.
contain a distinct point of beginning and point of ending.
describe the parcel’s boundaries as a complete, closed perimeter.
Two individuals own a house as tenants by the entireties. They can do this because they
are incorporated.
acquired title at the same time.
are related by blood.
are married.
are married.
A person who owns all ownership interests in real property is said to own
statutory title.
juridical title.
equitable title.
legal title.
legal title.
Restrictive covenants
can never be changed or removed.
are never used for residential properties.
take priority over less restrictive zoning ordinances.
may be discriminatory if established before ownership transfers.
take priority over less restrictive zoning ordinances.
When a contract is revoked,
the non-revoking party has no legal recourse but to accept the revocation.
both parties must agree for the revocation to take effect.
neither party has any further obligations.
the revoking party may still have obligations to the
other party.
the revoking party may still have obligations to the other party.
Plumbing fixtures in a building have a minimum and maximum pressure requirement that is dictated by
the plumbing contractor.
the water company.
the building code.
zoning.
the building code.
What kind of clause in a mortgage or trust deed enables a non-judicial foreclosure to occur?
Power of attorney
Power of sale
Due on sale
Damages
Power of sale
How is the tax base of an area calculated?
Exemptions are added to the sum of assessed values.
The tax levy is subtracted from the budget shortfall.
The millage rate is divided by the tax levy.
Exemptions are subtracted from the sum of assessed values.
Exemptions are subtracted from the sum of assessed values.
Conditions and covenants differ in that
conditions can be created only at the time of
transferring ownership.
conditions can be created at any time.
a breach of covenant causes ownership to be forfeited.
covenants are enforceable in court.
conditions can be created only at the time of transferring ownership.
A court orders Jerry to allow neighbor Loretta to drive across his property because it is the only way Loretta can reach her property from a public road. The easement created is an
easement in gross.
easement by prescription.
easement by personal license.
easement by necessity.
easement by necessity.
What does an owner own if the duration of his or her rights in an estate cannot be determined?
A permanent life estate
A freehold estate
A leasehold estate
A durable leased fee estate
A freehold estate
What is the basis for determining the amount of a condominium owner’s monthly assessment for operations and maintenance?
The unit’s appraised value
The number of shares the owner purchased in the condominium association
The unit’s pro rata ownership share as defined in the declaration
The unit’s pro rata share of total floor space in the building
The unit’s pro rata ownership share as defined in the declaration
Where do the overall guidelines for zoning, building codes, and development requirements in a jurisdiction come from?
The jurisdiction’s master plan
The jurisdiction’s economic development committee
State enabling acts
State court decisions
The jurisdiction’s master plan
Included in the definition of “real estate” are
a mobile home parked temporarily on a rented lot.
fences and roads on a parcel of land.
trees cut down and lying on a parcel of land.
business equipment installed by a tenant on leased property.
fences and roads on a parcel of land.
An encroachment arises when
a property owner grants a neighbor permission to build
a structure that hangs over the property boundary.
an easement is recorded on the title of a property.
one property physically intrudes into another without authorization.
a property owner builds a structure that is at variance with a zoning ordinance.
one property physically intrudes into another without authorization.
A court orders transfer of a mortgaged property to the lender in a ___________ foreclosure.
possessory
judicial
no-fault
strict
strict
In a foundation, the load is transmitted to the soil by the
load exchanger.
footings.
platforms.
lintels.
footings.
Ownership rights, such as those to possess and use a property,
cannot be violated.
are absolute.
vary with the type of property involved.
are subject to what the law allows.
are subject to what the law allows.
When a joint tenant dies, that tenant’s interest
passes to the surviving joint tenants.
passes to the decedent’s heirs as a tenancy in common.
passes to the decedent’s heirs and the surviving tenants as a divided tenancy in common.
passes to the decedent’s heirs as a joint tenancy.
passes to the surviving joint tenants.
At what level of government is the real estate business primarily regulated?
The U.S. Constitution
The federal court system
The U.S. Congress
The state legislature
The state legislature
