Transfer or Interests

Question 1

The process whereby land becomes attached to another piece of real property is called

(a) Accession
(b) Transfer
(c) Succession
(d) None of the above

Answer 1

(a) Accession

Question 2

Under California’s summary probate provision, a probate is not required if

(a) The property is valued at less than $150,000
(b) 40 days have lapsed since the death of the decedent
(c) The property is held in a living trust
(d) All of the above

Answer 2

(d) All of the above

Question 3

Notice of transfer of title

(a) Is considered “actual” when title is delivered into the hands of the grantee
(b) Is considered “constructive” with recordation of the transfer document
(c) Both a and b
(d) Neither a nor b

Answer 3

Both a and b

Question 4

In California, an emancipated minor is considered to be any of the following except

(a) One who is married
(b) One who is serving on active duty in the U.S. armed forces
(c) One who possesses an emancipation decree from the court
(d) One who is a parent

Answer 4

(d) One who is a parent

Question 5

Grant Deeds

(a) Are the most commonly used deeds in California to transfer title to property
(b) Conveys fee simple title with absolute ownership
(c) Both a and b
(d) Neither a nor b

Answer 5

(c) Both a and b

Question 6

All the following are true regarding deeds of trust except

(a) They are the security instrument that identifies and secures the collateral for the debt
(b) They are signed
(c) They are notarized
(d) They are not recorded

Answer 6

(d) They are not recorded

The deed of trust is the security instrument used almost exclusively by lenders in California. It is signed, notarized, and recorded.

Question 7

In the deed of trust, the lender is referred to as the

(a) The trustor
(b) The trustee
(c) The beneficiary
(d) The mortgagee

Answer 7

(c) The beneficiary

The term beneficiary is used to identify the lender under a deed of trust. In a mortgage, a lender is sometimes called the mortgagee, though this term is seldom if ever used in California.

Question 8

In a transaction in which a seller and buyer agree to have the buyer assume a seller’s existing loan without having the lender approve it is called

(a) Taking title subject to
(b) Assuming title without notice
(c) Taking title without offset
(d) None of the above

Answer 8

(a) Taking title subject to

The escrow holder may be involved in a transaction in which the buyer and the seller agree that the buyer can assume the seller’s existing loan without the buyer actually applying to or being approved by the seller’s lender. Called “taking title subject to” the existing note and deed of trust, this practice carries potential risk to both the buyer and the seller. In this type of transaction, the seller’s lender is not asked to approve the transaction, as it would if the buyer were “formally” assuming the loan.

Question 9

All the following are true regarding the Fictitious Deed of Trust except

(a) It is illegal
(b) It governs and specifies the standard provisions to be contained in a legal deed of trust
(c) It is quite lengthy
(d) Is described in, and considered to have been pre-recorded in California Civil Code 2952

Answer 9

(a) It is illegal

California CC Section 2952 governs and specifies the standard provisions to be contained in a legal deed of trust to be used in California. It is quite lengthy therefore the law allows a deed of trust normally used in actual transactions to contain only certain portions, and to make reference to all others as contained in a document called a “fictitious deed of trust”, This document, described in and considered to have be pre-recorded by CC 2952, contains all the legal terms and conditions referred to in the actual deed of trust signed by the borrower, and which is referred to as a “short form” deed of trust.

Question 10

A land contract is
(a) A purchase agreement for vacant land
(b) A security instrument
(c) A lease agreement for vacant land
(d )A contract which conveys fee title

Answer 10

(b) A security instrument

Question 11

California CC Section 1000 specifies that property in the state of California may be acquired in which of the following five ways?

(a) Occupancy, Accession, Transfer, Will, and Procession
(b) Occupancy, Recession, Transfer, Will, and Succession
(c) Occupancy, Accession, Transfer, Will, and Succession
(d) Accession, Transfer, Will, Succession, and Prevision

Answer 11

(c) Occupancy, Accession, Transfer, Will, and Succession

Question 12

Trust deeds transfer only

(a) dormant title.
(b) dominant title.
(c) both fee title and dominant title.
(d) both fee title and dormant title.

Answer 12

(a) dormant title.

Question 13

Probate is NOT required if title was held as

(a) tenants in common.
(b) partnership.
(c) joint tenants.
(d) joint partners.

Answer 13

(c) joint tenants.

Question 14

Intestate succession applies to one

(a) who died without a will.
(b) who only resided outside California.
(c) who was only unmarried.
(d) all of these.

Answer 14

(a) who died without a will.

Question 15

Transfer of title to real property is called

(a) alienation.
(b) accession.
(c) annexation.
(d) none of these.

Answer 15

(a) alienation.

Question 16

Recording a document provides

(a) destructive notice.
(b) actual notice.
(c) constructive notice.
(d) requested notice.

Answer 16

(c) constructive notice.

Question 17

In order to be valid, deeds must be in writing, include the property description, contain conveying language, identify a grantee, and

(a) be signed by a competent grantor.
(b) be signed by a competent grantee.
(c) both (a) and (b).
(d) no other condition.

Answer 17

(a) be signed by a competent grantor.

Question 18

Grant deed forms include

(a) joint tenancy grant deeds.
(b) community property with no right of survivorship.
(c) interspousal grant deeds.
(d) both (a) and (c).

Answer 18

(d) both (a) and (c).

Question 19

A quitclaim deed

(a) guarantees title protection.
(b) is not valid.
(c) conveys title from the grantor to the grantee with no warranty or guaranty.
(d) may not convey less than the entire interest of the grantor.

Answer 19

(c) conveys title from the grantor to the grantee with no warranty or guaranty.

Question 20

An all-inclusive deed of trust is

(a) typically acceptable to existing lenders.
(b) called a wrap-in deed.
(c) illegal.
(d) a new first deed of trust.

Answer 20

(a) typically acceptable to existing lenders.