Property Disclosures

Question 1

A property that contains asbestos insulation wrapped around pipes would be best remedied by:
A » removing the insulation
B » encapsulation
C » replacing the pipes
D » installing a water filtering system

Answer 1

B » encapsulation

Note: encapsulation is to seal or enclose the insulation. (A) Removing the insulation might make things worse as the asbestos particles could become friable or airborne.

Question 2

An item in a house that is usually easy and inexpensive to remedy is:
A  »  a structural foundation issue
   B  »  a roof replacement
   C  »  major water leaks in a basement
   D  »  radon gas

Answer 2

D » radon gas

Question 3

CERCLA would normally apply to which of the following situations?
A » A residential property with a buried oil tank
B » A buyer who was discriminated against based on race in obtaining a loan from a lender
C » A person was discriminated against in buying property based on national origin
D » A lender was loaning money to a borrower with an excessive high interest rate

Answer 3

A » A residential property with a buried oil tank

Question 4

Define CERCLA

Answer 4

Comprehensive Environmental Response, Compensation, and Liability Act – otherwise known as CERCLA or Superfund – provides a Federal “Superfund” to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment.

Question 5

A property did not abut a waterway. The owner established a beneficiary use through the state under prior appropriation. How could the owner gain access to the water?
A » Apply for an easement by necessity
B » Apply for an easement by prescription
C » Put an underground pipe across the neighbor’s property without permission
D » Go to the neighbor and negotiate an easement

Answer 5

D » Go to the neighbor and negotiate an easement

Note: Prior appropriation gives a right of usage of water. However, an owner would still have to (D) negotiate an easement across a neighbor`s property.

Question 6

Riparian, littoral and prior appropriation all relate to:
A  »  encumbrances
   B  »  easements
   C  »  water rights
   D  »  restrictions

Answer 6

C » water rights

Question 7

With regards to water rights and prior appropriation concepts, which of the following terms might be applicable?
A  »  Survey
   B  »  Estoppel certificate
   C  »  Covenant
   D  »  Avulsion

Answer 7

D » Avulsion

Question 8

Define Avulsion

Answer 8

Sudden transfer; e.g., stream changing channel. With an avulsion, the boundary lines for a property remain the same as they were before the sudden change.

Question 9

Water rights are generally covered under federal guidelines. Some states cover water rights under riparian and littoral laws. In the absence of specific guidelines, water rights are generally governed by:
A  »  eminent domain
   B  »  prior appropriation
   C  »  express reservation
   D  »  police power

Answer 9

B » prior appropriation

Question 10

Define Eminent Domain

Answer 10

The RIGHT of the government to take private property for public good. The property owner is paid compensation for the property.

Question 11

Define Reservation

Answer 11

A form of life estate where the seller sells the property but retains (reserves) a life estate interest in that same property for the seller`s lifetime

Question 12

Define Police Power

Answer 12

Keeping things in order; e.g., zoning and building codes fall under police power

Question 13

Define Prior Appropriation

Answer 13

Prior appropriation is a water law that says first in time is first in rights; the owner has an exclusive right to divert water for specific uses.

Question 14

A person owned a property next to a stream. The owner's rights to use the stream are referred to as:
A  »  dower
   B  »  curtesy
   C  »  riparian
   D  »  navigational

Answer 14

C » riparian

Question 15

Define Riparian

Answer 15

Property bordering a flowing waterway; e.g., river or stream

Question 16

Define Dower

Answer 16

A life estate interest a wife receives in property upon husband`s death, regardless of debts owned on the property

Question 17

Define Curtesy

Answer 17

A life estate interest a husband receives in property upon wife`s death, regardless of debts owned on the property