Property Ownership and Land Use Controls & Regulations 15%

Question 1

Hypothecated

Answer 1

To use property as security for a loan without giving up property

Question 2

Chattel Real

Answer 2

A personal property interest in real property.

• leashold interest
• trust deed
• mortgage

Question 3

What are the units used to measure the length of a nail?

Answer 3

Penny. The original system was to measure the nail in relation to a silver penny. Thus, a ten-penny nail weighed as much as ten silver pennies.

Question 4

Infill

Answer 4

In housing construction, the process of developing open areas within an established area before developing outside the established area. These areas of vacant land may have been bypassed by earlier waves of development and are now largely surrounded by developed land.

Question 5

As a general rule which of the following sources would be least satisfactory in providing a legal description for a parcel of real property?

Answer 5

A legal description is required on all deeds, assignments of lease and mortgages. It is also used in most contracts for deed. The bill for real property tax does not include the legal description. It includes only a parcel number. An owner is taxed according to parcel number.

Question 6

Subdivisions are controlled by:

Answer 6

One of the two major laws that regulate subdivisions in California is the Subdivision Map Act. The purpose of this act is to develop a subdivision filing procedure to be followed at the city or county level and to make sure that subdividers comply with a city’s or county’s master plan. Cities and counties have the legal authority to enact subdivision ordinances. This gives them control over what type and size subdivisions may be built and the physical aspects of the subdivisions such as the streets, sidewalks, sewers, recreational areas, and flood control.

Question 7

Cumulative zoning

Answer 7

permits higher uses (e.g., residential) to exist on land zoned for lower uses (industrial), but lower uses cannot occupy higher-zoned land.

Question 8

Do easements expire, if so which ones?

Answer 8

A granted easement does not “expire” through nonuse, only a prescriptive easement can be lost through nonuse.

Question 9

Injunction

Answer 9

A legal action whereby a court issues a writ or order that forbids a party to a suit or defendant from doing some act. An injunction requires the person to whom it is directed to refrain from doing a particular thing, such as violating deed restrictions or house rules. (See restraining order)

Question 10

Hip roof

Answer 10

A roof which slopes upward from all four sides and joins at the ridge is called a

Question 11

Freehold estate includes:

Answer 11

The distinctive characteristic of the freehold estate is that they endure for an interminable duration. Thus, freehold estates consist of:

(1) Estates in fee:
a. Absolute
b. Qualified-by condition or limitation
(2) Life Estates

Question 12

Joint tenancy

Answer 12

An estate or unit of interest in real estate that is owned by two or more natural persons with rights of survivorship. The basic idea of a joint tenancy is unity of ownership; title is held as though all owners collectively constituted one person. (See four unities)

Question 13

Four “unities”

Answer 13

Four “unities” create joint tenancy:

1) Unity of time - all tenants acquired their interests at the same time;
2) Unity of title - all tenants acquired their interests by the same document.
3) Unity of interest - all tenants hold equal ownership interests;
4) Unity of possession - all tenants hold undivided right to possession;

Question 14

Water Rights

Answer 14

Water rights are the legal right to use water from a water course or body of water on a property. (See littoral rights, right of correlative user, right of prior appropriation, riparian rights)

Question 15

littoral rights

Answer 15

The rights of a landowner whose land borders a pond, lake or ocean shore-line where the body of water is non-flowing. Littoral rights extend to the mean high watermark of ocean or tidal waters.

Question 16

right of correlative user

Answer 16

The right of a landowner to the reasonable use of underground percolating water. (See water rights)

Question 17

right of prior appropriation

Answer 17

A water rights concept in California and other states that the first user of riparian water obtains priority over subsequent users. (See water rights)

Question 18

riparian rights

Answer 18

Riparian rights are the rights of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land, provided such use does not injure other adjacent land owners.

Riparian rights are the rights held in common with other riparian owners to make reasonable use of the waters that flow on, under or adjacent to a property, provided such use does not alter the flow of water or contaminate the water.

Question 19

Fixtures

Answer 19

Fixtures are items of personal property which have become attached to real property, thus becoming real property.

Question 20

The five tests of a fixture are:

Answer 20

Method of attachment, 
Agreement of the parties, 
Relationship of the parties, 
Intention of the person attaching it, 
Adaptability of the item. 
(Study aid: "MARIA")

Question 21

Mello-Roos Bonds

Answer 21

Based on passage of the Mello-Roos Community Facilities Act of 1982, certain housing tracts may be within what are called “community facilities districts” where special taxes are assessed to finance designated public facilities and/or services. Mell-Roos liens are usually municipal bonds issued to fund streets, sewers and other infrastructure needs before a housing development is built. These special assessments are paid by the seller and will be assumed by the buyer. (See Mello-Roos Community Facilities Act)

Question 22

Failure to give notice of Mello-Roos

Answer 22

Failure to give notice of a Mello-Roos tax before signing of the sales contract permits the buyer or tenant a three-day right of rescission after receipt of the notice.

Question 23

An easement may be created for what length of time?

Answer 23

An easement may be created for what length of time?

-perpetuity, the lifetime of a person or a term of years

Question 24

To hold real property as tenants in common, the individuals must

Answer 24

Whenever two or more people hold title to property together, they must hold an undivided equal interest. If you own 1/3 of the property, you CANNOT designate which 1/3.

Question 25

real property

Answer 25

The earth’s surface, the substances beneath the surface, the airspace above the surface, as well as all appurtenances including buildings, fixtures, and improvements, excluding growing crops are real property. The term real property is synonymous with real estate. (See real estate)

Question 26

real estate

Answer 26

Real estate is physical land at, above and below the earth’s surface with all appurtenances, including any structures. The term real estate is synonymous with real property. (See real property)

Question 27

chattel

Answer 27

The word chattel evolved from the word cattle, one of the early important possessions. Chattels real are annexed to real estate, whereas, chattels personal are moveable. A lease is an example of a chattel real. (See personal property)

Question 28

trust deed

Answer 28

Also called a deed of trust. A legal document in which title to property is transferred to a third-party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary (lender).

Question 29

mortgage

Answer 29

The purpose of the mortgage note is to create a personal liability for payment on the part of the mortgagor to secure the loan.

Question 30

How big on one Acre

Answer 30

One acre contains 43,560 square feet. 43,560 square feet. ( including 264’ x 165’ or 198’ x 220’.)

Question 31

tenancy in common

Answer 31

A form of concurrent ownership of property between two or more persons, in which each has an undivided interest in the whole property. This form is frequently found when the parties acquire title by descent or by will.

Question 32

Footing

Answer 32

The spread part of the foundation below the ground is referred to as the foundation footing.

Question 33

Covenant

Answer 33

A covenant, however, can be imposed at another time by mutual agreement. Both conditions and covenants can “run with the land.”

Question 34

Condition

Answer 34

A condition is a qualification of a grant of estate and can only be imposed at the time of the grant. Both conditions and covenants can “run with the land.”

Question 35

The higher the EER rating

Answer 35

The efficiency rating of an air conditioning unit is called is EER or Energy Efficiency Rating. The higher the EER, the more efficient the unit and the more money saved on cooling bills. With this question, it is correct to say the higher the EER rating, the lower the BTU’s (British Thermal Unit).

Question 36

Notice of Completion

Answer 36

A notice of completion is filed to give public notice that a construction job has been completed and that mechanic’s liens must be filed within 30 days.

A document recorded to give constructive notice that a building job has been completed. (See constructive notice)

Question 37

constructive notice

Answer 37

Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.

Question 38

construction terms

Answer 38

baluster, bearing wall, bracing, building code, building paper, building permit, coping, crawl space, detached garage, downdrain, drywall, , eave, elevations, flashing, header, joist, junction box, masonry, on center, P trap, plot plan

Question 39

Adverse possession and Easement by Perscription

Answer 39

Adverse possession refers to land while prescription is a term usually applied to easements. We speak of title by adverse possession and easements by prescription. An easement by prescription creates a right to use someone else’s land.

Question 40

CC&Rs

Answer 40

Covenants, conditions and restrictions are limitations on land use, which are imposed by deeds, usually when land is subdivided. CC&Rs are a means of regulating building construction, density and use. May be referred to simply as restrictions. (See covenant, condition, restriction, deed restrictions, restrictive covenants)

Question 41

Covenant

Answer 41

deed restrictions and restrictive covenants
Provisions placed in deeds to control future uses of the property. (See covenants, conditions & restrictions, restrictive covenants)

Question 42

Condition

Answer 42

condition subsequent
A fee simple estate, may be qualified by a condition subsequent. This means that the new owner must not perform some action or activity. The former owner retains a right of reentry so that if the condition is broken, the former owner can retake possession of the property through legal action.

Question 43

restriction

Answer 43

A limitation on the use of real property; public restrictions imposed by government include zoning ordinances; private restrictions imposed by deed may require the grantee to do or refrain from doing some action. (See CC&R)

Question 44

Lead based paint laws

Answer 44

Lead based paint laws went into effect in 1996. The law applies to owners, lessors, and real estate licensees. This law requires the owner or lessor of dwelling units built before 1978 to provide the buyer or lessee with the federal booklet entitled “Protect Your Family from Lead in Your Home.”

Question 45

Rights of ownership

Answer 45

The rights of ownership include the exclusive right to possess, encumber, will and sell. Also included is the right to give the property away (gift).

Question 46

Attachment

Answer 46

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 47

life estate

Answer 47

Any estate in real or personal property that is limited in duration to the life of its owner or the life of some other designated person.

The holder of the life estate could only lease what he had until he died.

Question 48

Flood Hazard

Answer 48

A flood hazard is an area which floods more than twice in ten years.

Question 49

A contract for the sale of rural property requires a:

Answer 49

Some property, such as rural, undeveloped land cannot be identified by a street address. The best practice is to use a complete legal description. Most parcels of land are defined by one of three methods of legal description: lot and block, rectangular survey system, and metes and bounds.

Question 50

legal description

Answer 50

A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it. (See government survey system, lot and block system, metes and bounds system)

Question 51

lot-and-block (recorded plat) system

Answer 51

A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat map.

Question 52

rectangular (government) survey system

Answer 52

A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines. Also known as the government survey system. (See baselines, meridians)

Question 53

Baselines

Answer 53

Baselines are one of a set of imaginary lines running east and west used by surveyors for reference in locating and describing land under the government survey method of property description.

Question 54

metes-and-bounds description

Answer 54

Metes-and-bounds is a legal description of a parcel of land that begins at a well marked point and follows the boundaries, using directions and distances around the tract, back to the point of beginning. (See legal description, marker)

Question 55

Studs and Sole Plate

Answer 55

The vertical structural support members (studs) are nailed to the horizontal plate (sole plate) which is attached to the subfloor.

Question 56

Condominium ownership

Answer 56

Condominium ownership is an estate in real property consisting of an individual interest in an apartment or commercial unit and an undivided common interest in the common areas in the condo project such as the land, parking areas, elevators, stairways, exterior structure, and so on.

Question 57

By law, all cities must have:

Answer 57

The correct answer is c: Every city, by law, must have a planning commission. From this comes a general plan.

Question 58

general plan

Answer 58

Every city and county is required by state law to develop a general plan of comprehensive zoning. (See comprehensive zoning, master plan, regional planning)

Question 59

Elevation sheet

Answer 59

Elevations show the exterior sides of a building as it appears after all structural work has been completed. Views are often identified as front, rear, left, and right elevation. Symbols on elevation drawings indicate the kind of exterior materials, their placement and the height of their construction.

Question 60

cloud on title

Answer 60

Any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful: usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.

Question 61

Real property

Answer 61

Real property includes land, that which is attached to it (physically or legally), and appurtenances (including easements).

Question 62

One Acre

Answer 62

One acre is 43,560 square feet in area (L x W = Area)

Question 63

Leasehold Estates

Answer 63

There are four main types of leasehold estate, each having specific characteristics as to the lease period and the relationship between the landlord and tenant.

(1) estate for years, (definite termination date)
(2) estate from period to period or periodic tenancy (year to year or month to month, after termination date tenant can lease longer if they want)
(3) estate at will (usually occurs in the absence of a lease, or where the tenancy is not for consideration.)
(4) estate at sufferance (similar to adverse possession but for a lease)

Question 64

Mechanics Lien Deadlines

Answer 64

Must be filed within 60 days from filing of Notice of Completion or Cessation, or if neither are filed, within 90 days from completion of the work. Action to enforce due 90 days after recording of claim. Lien priority begins when work commenced on the house.