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238 terms
tikihouse2003

Broker Property Law

STUDY
PLAY
After attempting to locate the owner or any rightful heirs, the state may acquire ownership of abandoned property through

a) eminent domain
b) adverse possession
c) escheat
d) estoppel
c) Escheat
The government requires a developer to provide off street parking for tenants. The developer will suffer a loss because he may not use the parking area to build additional units as he intended. This is an example of

a) eminent domain
b) inverse condemnation
c) police powers
d) escheat
c) Police powers There is no inverse condemnation because the regulation does not deprive the owner of all economic value from his property, he may develop all but the parking area. It is not eminent domain because the govt. is not taking any property. Is is not escheat because the govt. is not taking ownership. It is a valid condition an approval for a building permit so it is and exercise of police power
Building codes:

a) could be based on national standards
b) are enforced locally
c) involve a certificate of occupancy
d) all of the above
D

Building codes often include national and local or state-wide standards. They are issued and enforced by local authorities, and a certificate of occupancy must be issued to document conformity
A lease where the tenant pays taxes and maintenance costs is:

a) net lease
b) percentage lease
c) ground lease
d) gross lease
A
In a net lease the tenant (lessee) agrees to pay a fixed rental amount along with a pro rate share of the landlord's building costss, including taxes, insurance, utilities and repairs. In a gross lease, the tenant pays a fixed amount and the owner pays his own building expenses. In a percentage lease, the tenant pays a fixed percent of the income earned through the rental space
To be a professional property manager of a large apartment complex, one would need to know about all of the following EXCEPT:

a) property maintenance
b) property insurance
c) human relations
d) appraisal techniques
D) Appraisal techniques
A clause in a deed stating that title would revert to the grantor if the grantee operated a dance hall on the property would be a

a) invalid deed restriction
b) valid public control
c) valid deed restriction
d) enforceable only through zoning laws
C) Valid condition in the deed contained in the granting clause. The grantee would receive a qualified fee (fee simple defensible). The grantor retains a "possibility of a reverter"
Zoning appeals boards are intended to satisfy:

a) equal protection
b) due process
c) takings clause
d) master plans
B (public controls based on police power) in order to satisfy due process, most communities have established zoning appeals boards to hear complaints from individual property owners about local zoning ordinances
The transfer of title from the government to an individual is called:

a) public grant
b) dedication
c) foreclosure
d) accession
A) Public grant
To qualify for a tax free exchange, properties MUST:

a) have the same income
b) have different incomes
c) be of like kind
d) have deeds in corporate names
C. be of like kind
The only way to qualify for a tax free exchange is that the properties exchanged must be of like kind. You could not exchange a rental property for your personal residence. You could exchange rental property for another investment property
Assemblage most often occurs where:

a. demand is high
b. demand is low
c. the whole is more valuable than the parts
d. both a and c
C
regardless of whether demand is high or low, assemblage is usually done when the combined property will be more valuable than the sum of the individual parcels
A property has a deed restriction that prohibits raising livestock. However, local zoning permits livestock on the property in question. May the property owner raise livestock?

a. no, because the owner must follow the deed restriction over the zoning ordinance
b. no, because the deed restriction existed before the zoning ordinance
c. yes, because private agreements cannot overrule a zoning ordinance
d. yes because estoppel will prevent enforcement of the deed restrictions
A
Deed restrictions may always be more restrictive, but never less restrictive than zoning laws. Therefore, the owner must follow a more restrictive (but legal) deed restriction. Being more restrictive is not equivalent to overruling a zoning ordinance- a more restrictive requirement remains consistant
A homeowner who uses a residence only as a home is allowed which of the following deductions for tax purposes?

a. depreciation
b. principal payments
c. interest payments
d. cost of improvements
C
A homeowner may deduct interest paid on a home mortgage loan from his/ her own personal property income tax calculation. Depreciation and cost of improvements may only be deducted if the property is income producing property (rental)
If a broker employs a property manager, an agency relationship is created. This agency is considered:

a. specific
b. general
c. managerial
d. universal
B
A property manager is a textbook example of general agency ie a person empowered to do a number of things for the principal
Zelda wants to move into a subdivision with her giraffe. Which of the following would best determine whether or not she could move into a home and keep her giraffe on the property?

a. the Constitution
b. zoning ordinances
c. deed restrictions
d. both b and c
D
Zoning ordinances determine property uses permitted including the types of animals which may be kept. Deed restrictions could impose similar limitations. Therefore, Zelda must check her zoning ordinances and deed restrictions if any
Condemnation is the exercise of

a. eviction
b. estoppel
c. eminent domain
d. escheat
c
Eminent domain is the power, condemnation is the exercise of that power where a landowner refuses to tender his deed to the state
Deed restrictions are usually imposed by

a. owners
b. zoning
c. neighborhoods
d. governments
a
restrictive covenants (deed restrictions) are imposed in deeds by the owners (which includes developers)
The donation of real estate for public use is:

a. reverse condemnation
b. eminent domain
c. dedication
d. escheat
c dedication
Which of the following must be true of an industrial park?

a. it is surrounded by a buffer
b. it is zoned industrial
c. it is leased from a developer
d. both a and b
b.
An industrial park must be zoned industrial to be subdivided and marketed. The other answers may be true but b must be true
The purpose of a zoning ordinance is:

a. to promote public welfare
b. to promote building conformity
c. to control competition
d. to promote property values
A
The purpose of zoning is to promote the health, welfare, and safety of the public. Building conformity is a result of building codes, not zoning. The correct answer is a restatement of the police power
Private restrictions on the use of land may be created by:

a. deed only
b. written agreement
c. general restrictions on a subdivision's regulation
d. all of the above
D
Private restrictions on the use of land may be created by any of the instruments cited above. These are restrictions that are placed on the property by the owner
A new residential development requires that all single-family houses have brick fronts. This requirement is most likely an example of:

a. local building codes
b. municipal regulations
c. a covenant
d. a zoning ordinance
c
A convenant (promise to keep) is a form of a deed restriction. This type os restriction would be imposed by a developer, not a local government through zoning powers. The restriction described is most likely an aesthetic consideration
Which zoning decision is most likely to be stricken on appeal?

a. spot zoning
b. down zoning
c. special use zoning
d. not enough information to tell
A
Spot zoning rarely survives a legal challenge because it is difficult to fairly implement and often results in arbitrary and discriminatory selection
Paul Property Owner makes significant improvements to a lot he has been holding for seven years. Which of the following is most likely to be true regarding Paul's improvements?

a. Paul's land will increase in value
b. Paul's land will decrease in value
c. Paul is developing a subdivision
d. either a or b
D
Improvements may have a positive or negative affect on the economic value of the land and the area surrounding it depending in the type of development or improvement
In a typical agreement, the property manager would be authorized to do all of the following except:
a. enter in to a 2 year lease verbally
b. hire and fire new employees
c. collect rents every month
d. furnish owner with a monthly statement of income and expenditures
A
An oral lease for over one years is unenforceable because it violate the statue of frauds. In the best interest of the owner, the property manager would not be permitted to take and oral lease regardless of the time
If the owner of real estate dies and leaves no will and has no heirs, the property will revert to the government through a process known as:
a. eminent domain
b. reversion
c. escheat
d. inverse condemnation
c
Escheat is one of the ownership rights withheld by the govt. the other rights withheld are taxation, eminent domain and police powers. Eminent domain is the power to take property. Inverse condemnation is a defacto taking due to excessive regulation
Desmond owns a 30 acre tract of land along a major river that he plans to build a river front community on. However, just before he applies for his building permit, Desmond learns that the zoning has changed to prohibit residential development. Desmond will likely
a. receive compensation is he sues on the theory of inverse condemnation
b. receive no compensation because the regulation is not pervasive
c. receive just compensation following condemnation
d receive compensation only of the zoning change is for public purpose
B
Desmond's property is not being taken by the govt. However short of a physical taking, a property could be so over regulated that its owner loses all economic value. Inverse condemnation presents a high standard to meet. On these facts there is no indication that the property is useless, only the development prohibited is residential
The legal process of removing a tenant from property is
a. eviction
b. ejection
c. quitting
d. constructive notice
A
Eviction os the legal process to remove a tenant in possession. Ejection is an action by an owner to regain possession from someone who is in possession illegally. Quitting means departing. Constructive notice of ownership can be proved by recording a deed
A restrictive covenant would most likely be enforced by
a. a neighbor
b. a zoning official
c. a police officer
d. a judge
d
Restrictive covenants (deed restrictions) are enforced through injunctions issued by the courts at the request of others (such as a neighbor)
Deed restrictions usually affect
a. the current owner
b. current and subsequent owners
c. subsequent owners only
d. all property owners within local govt. boundaries
B
Valid deed restrictions affect both current and subsequent owners
Which of the following could be an enforceable deed restriction?
a. exterior design
b. building size
c. limitations on the size of trees
d. all of the above
D
A deed restriction on the use of property placed on the property by the owner. It could control and restrict the use of the property for any reasons given. It cannot be a restriction in violation of the law such as fair housing
The difference between an easement and a deed restriction turns on:
a. one can "run with the land" and the other cannot
b.one controls use and the other controls access
c. one is created in a deed and the other is not
d. both require a writing
B
Both easements and deed restrictions can run with the land. However, as an easement allows access to property while a deed restriction limits an owner's use of property. Easements can be created in deeds (by express grant, for example) and deed restrictions are by definition created in deeds. While a deed restriction must be written, an easement may be created by implication
John wants to build a house on his lot. The house will sit 20' from the front line. The city ordinance calls for a minimum setback of 25'. May John build his house in the manner described?
a. no, unless John receives a zoning variance
b. yes, so long as John obtains spot zoning
c. yes, so long as John receives a special use permit
d. either or a or c
A
Conditional use permits/special use permits and variances are similar in function but different in availability. Generally variances can issue to remedy case specific hardships while conditional use permits are used where no hardship exists and the change will benefit the community as a whole. On the face of the question, there appears to be no benefit to the neighborhood as a whole for this individual homeowner's addition
Building codes are enforced by
a. federal authorities
b. state agencies
c. zoning board
d. building permits
D
Building codes are enforced by issuing building permits requiring periodic inspections at certain phases of construction. A final inspection is required before one may receive a certificate of occupancy. Building codes are locally enforced (generally by building departments)
When the owner of real property obtains a new mortgage to pay-off an old mortgage it is known as
a. refinancing
b. foreclosure
c. assumption
d. subordination
A
This is refinancing. If effect the owner is selling the property to himself. He obtains a new loan on his own property and uses the money to pay off his old loan. This is very common during periods of falling interest rates.
A gas station located in an area that is currently zoned residential, is destroyed in a windstorm. Which of the following is most likely?
a. just compensation clause
b. right to privacy
c. rational relationships
d. none of the above
C
Constitutional limitations on the police power are contained in the due process, equal protection, and takings clauses of the Constitution. There is no such thing as the "just compensation clause" The right to privacy has nothing to do with real property. Due process consists of substantive and procedural due process. substantive due process requires that land regulations be rationally related to a legitimate state objective. Therefore government power in this situation is limited by "rational relationships"
Merging adjacent properties is know as
a. annexation
b. abutment
c. marshaling
d. assemblage
C
The government derives its right to control private land use from the US Constitution. Many state constitutions echo the same rights. these rights are known as Police Powers. While this power is delegated to local authorities, it stems (derives) from the constitution
A property management contract is between the property manager and:
a. his or her employees
b. the owner of the property
c. the tenants
d. all of the above
B
A contract to manage property would be between the manager and the owner of the property
A person who owns a fee simple estate could be which of the following controls?
a. zoning and building codes
b. subdivision restrictions
c. escheat
d. all of the above
D
All of these are restrictions on private property. Zoning, building codes, and escheat are rights of the government. Restrictive covenants and subdivisions restrictions are usually private in nature. Even though you own property in fee simple you are subject to all of the restrictions listed
Which of the following is not a government right in privately owned property?
a. escheat
b. taxation
c. encumbrances
d. none of the above
C
Escheat and taxation are governmental rights in privately owned real property. An encumbrance is any lien, easement or restriction on the use of real property which may diminish its value. Although unpaid taxes result in a lien, which is an encumbrance, an encumbrance is not a right in and of itself that the state has in private property
A buffer zone would most likely separate:
a. office space from retail space
b. light industrial fro heavy industrial
c. open space from residential
d. residential from commercial
D
A buffer zone is used to separate two otherwise incompatible land uses. Of the choices, residential and commercial are the most incompatible and therefore the best answer
Deed restrictions are imposed by:
a. developers
b. zoning ordinances
c. neighborhood associations
d. all of the above
A
Deed restrictions are imposed by the owner of the property. Of the choices given, the developer is the only property owner listed. Neighborhood associations can create rules to enforce deed restrictions but these rules must be consistent with the deed restrictions
An area where in which the zoning regulates the specific balance of shopping, business and recreational facilities is an example of:
a. urban renewal
b. mixed zoning
c. PUD
d. commercial condition zoning
C
Planned Unit Development (PUD) are mixed use developments that use zoning ordinances to achieve desired balance
An owner has been using a parcel of land for heavy industry since 1973. Subsequently, the property is zoned for commercial use. The owner's continued industrial use of the property is a/an
a. violation of the existing zoning
b. deviation from the master plan
c. example of zoning variance
d. an illegal non-conforming use
A
This is an example of non-comforming use. The use of the property at one time conformed to the zoning code. However, the zoning has been changed and the continued use for industrial purposes is in violation of current zoning. However since the use existed before the zoning changed, it may continue. Had the use arisen after the zoning change it would be an illegal non-conforming use. Master plans contain general standards of present and future development. We do not know if the change deviated from the master plan
The state decides to widen a highway. It will be necessary to use six feet of private property on each side. The state's power to take this property derives from:
a. the police power
b. zoning power
c. condemnation proceedings
d. non of the above
D
When the state takes property for the good of the public, it does so through the POWER of Eminent Domain. This is separate from the police power. Like all governmental powers, eminent domain is derived from the Constitution. The process through which the state takes property from one who refuses to give it up is condemnation proceeding.
Which of the following does NOT reflect current real estate market conditions?
a. building permits
b. deed recordings
c. mortgage recordings
d. divorce filings
D
An increase or decrease in building permits, deed recordings, and mortgage recordings would indicate an increase or decrease in real estate sales. Divorce filings would have no effect on value
Ms Jones wants to build a porch on the back of her house. The new construction will extend beyond the rear setback restriction. She is most likely to receive permission to build the porch through a:
a. spot zoning permit
b. zoning variance
c. conditional use permit
d. none of the above
B
Conditional use permits and variances are similar in function but different in availability. Generally, variances are usually issued to remedy case specific hardships while conditional use permits are used where no hardship exists and the change will benefit the community. On the face of the question, there appears to be no benefit to the neighborhood as a whole for this individual homeowner's addition. Spot zoning is avoided because it rarely survives legal challenge
Condemnation requires that:
a. the public benefit
b. the owner be paid
c. no other property is available
d. all of the above
D
The government must prove all elements to succeed in condemnation suit
Regulations designed to control density and over-crowding are examples of:
a. buffer zoning
b. a master plan
c. spot zoning
d. bulk zoning
D
Bulk zoning is used to control building density by imposing restrictions on setback lines, building height, and percentage of open areas
A gas station was built in 1938. The area surrounding it was zoned residential in 1960. The gas station is an example of:
a. a non-conforming use
b. planned unit development
c. down zoning
d. gentrification
A
The gas station would be classed as a non-conforming use since it does not conform to present zoning ordinance. However, because the use existed before the zoning change it is a legal non-conforming use
Which of the following is not and enforceable deed restriction?
a. exterior design
b. building size
c. landscaping set back
d. all of the above are enforceable
D
All of the listed restrictions are common and enforceable
The developer of a subdivision requires that if a single family house has a garage, the garage must be attached. This is most likely an example of:
a. local building codes
b. a zoning ordinance
c. a covenant
d. all of the above
C
A negative (or restrictive) covenant is a private restriction on land that may appear in a deed. this type of restriction would be imposed by a developer, not a local government through zoning powers
The State of Order plans to condemn several pieces of property in the inner city to build a sports complex, displacing many poor families. The State then plans to lease the assembled property to three private concerns who will operate the complex. Is this use of eminent domain constant with the constitution?
a. yes, but only if the lots are vacant
b. yes, if just compensation is paid to the land-owners
c. no, because there is no public purpose
d. no, because condemned property cannot benefit private individual
B
The state has the power to so this through its power of eminent domain. The construction of a sports complex could be considered in the public good because it would create taxes and offer employment
Zoning ordinances are established by:
a. the Federal Govt.
b. state govts.
c. city, town, and municipalities
d. all of the above
C
counties and towns establish zoning ordinances. In some cases these decisions may be directed by either State or Federal regulations
Valid restrictive covenants;
a. restrict what an owner can do with his land
b. run with the land
c. may appear in a lease
d. all of the above
D
All of the listed statements are true of valid deed restrictions. To "run with the land" means that the restrictions remain with the property as it passes fro owner to owner
Property management agreements usually represent:
a. general agency
b. special agency
c. dual agency
d. universal agency
A
Property management agreements usually represent general agency agreements
The right of a city government to take title to a private property for public improvements is subject to all of the following except:
a. the ownership interest held by the current owner
b. public purpose
c. economically profitable uses of the land by the owner
d. both a and c
D
The exercise of eminent domain requires just compensation for and the public use of property taken. The ownership interest of the current owner and whether the use is economically viable is irrelevant.
A broker acting as a property manager could be:
a. an employee of the owner
b. a fiduciary
c. the principal in the agreement
d. both a and b
D
A property manager is often controlled by an agency agreement between the property owner (principal) and the broker property manager (agent). The agency relationship makes the property manager a fiduciary of the client ( a position of trust and confidence carrying specified duties) Depending on the terms of the contract and the nature of the relationship, the broker could be an employee or independent contractor of the property owner as well.
Which of the following may be itemized as a personal deduction when paying federal income taxes?
a. the amount of interest paid on a home mortgage
b. the amount of principle paid on a home mortgage
c. the cost of installing a fence around the residence
d. the cost of homeowners insurance
A
When you itemize deductions on your income tax returns, you may not deduct the cost of home improvements or insurance premiums. Only the interest portion of your mortgage payments is deductable
Restrictive (negative) covenants cannot:
a. be based on aesthetic considerations alone
b. restrict the owner's lawful use of the land
c. be enforced over a zoning ordinance unless they are less restrictive than the zoning ordinance
d. be too broad
D
Private restrictions found in restrictive (negative) covenants in a deed must not be too broad or violate the law in order to be enforceable. Deed restrictions may be based on aesthetic considerations alone and do restrict the owner's lawful use of his land. However deed restrictions may never be enforces over zoning ordinances unless they are more restrictive
In terms of management, PUD's most clearly resemble:
a. leasing
b. cooperative ownership
c. condominium ownership
d. time-share ownership
C
Like a condominium. PUD's have associations that manage the common areas and enforce the covenants, conditions, and restrictions of the development
In a residential subdivision, the developer established a central playground that uses four feet of the backyard of each owner. Brynes wants to put an organic garden in his backyard. However, a swing set that sits within the central playground sits on Brynes' backyard. Byrnes plans on moving the swing set to make room for his garden. His neighbor, Yates objects. What can Yates do?
a. nothing so long as Byrnes owns the property
b. ask the court for help
c. nothing if the statutory period for adverse possession has run
d. seek a lis pendens
B
Because it was imposed by the developer, this is most likely to be a deed restriction. Deed restrictions are enforced by private individuals through court ordered injunctions. The injunction orders owners to stop the offending action. Byrnes still enjoys the right to possess the land included in the playground but his use was limited by the developer. A lis pendens is notice that a piece of property is subject to pending lawsuit, Adverse possession is not applicable because the restriction was voluntarily created
Which of the following is not a private limitation on title?
a. liens
b. deed restrictions
c. eminent domain
d. encroachments
C
All listed choices except eminent domain are private limitations on title because they are man-made ie they arise because of actions or omissions of one or more of the parties, whereas eminent domain actions arise pursuant to the application of the law
Which of the following is an example of the police power of government?
a. escheat
b. eminent domain
c. taxation
d. building codes
D
The rights that government withholds from private ownership are escheat, eminent domain, taxation and police powers. However escheat, eminent domain and taxation are powers unto themselves not derived from any other power. Of the listed choices, only zoning and building code restrictions are derived from the police powers of government
One of the principal reasons for zoning is to:
a. restrict business activities
b. effectively plan
c. affect property values
d. generate revenue through taxes
B
Zoning ordinances are the tools city planners use to implement the master plan. A master plan, through zoning, enables effective planning and consistency for a variety of uses.
All of the following are limitations on ownership of property, except:
a. zoning
b. police powers
c. building codes
d. seisin
D
Government rights in land include taxation, eminent domain, police power, and escheat which are limitations on ownership of private property. Zoning and building codes are both examples of police power. Seisin is, by definition, ownership
All of the following are examples of down zoning except:
a. from a single family dwellings to multi-use apartments
b. from agricultural use to single family dwellings
c. from single family dwellings to a conservation area
d. both a and b
C
Down zoning occurs when the zoning regulations are changed from a higher, more active use, to a lower less active use.
The police power includes all of the following except:
a. zoning and building codes
b. condominium covenants rules and regulations
c. government land use regulations
d. real estate licensing laws
B
The police power empowers governments to enact zoning and building codes, land use regulations and real estate licensing laws. Condominium covenants, rules and restrictions are private concerns
A homeowner can claim deductions on his federal tax return for which of the following items relates to his personal residence?
a. Principal payments on the mortgage loan
b. interest payments on the mortgage loan
c. repairs and maintenance on the house
d. improvements made to the property
Of the items listed, the homeowner may deduct only the interest paid on his or her mortgage
As a property manager, your duties would most likely include all of the following except:
a. rent collection
b. hiring and firing of maintenance personnel
c. showing units to prospective renters
d. providing legal assistance to the property owner
D
Licensees who are not licensed attorneys and provide legal advice risk prosecution for practicing law without a license
The governments' right to control private land is limited by:
a. just compensation clause
b. right to privacy
c. rational relationships
d. none of the above
C
Constitutional limitations on the police power are contained in the the due process, equal protection, and takings clauses of the Constitution. There is not such thing as the "just compensation clause" The right to privacy has nothing to do with real property. Due process consists of substantive and procedural due process. Substantive due process requires for instance that land regulations by rationally related to a legitimate state objective or within the scope of the police powers. Therefore govt is limited by rational relationships
Which of the following is not true about title search?
a. it is an examination of public records
b. the purpose is to determine defects in the chain of title
c. the title searcher goes back at least 100 years old
d. it is usually performed by a title company or title abstractor
C
The title search only goes back 40 years
The act of recording a deed in the public office designated for that purpose, results in which of the following?
a. title will pass to the new owner on the date of the recording
b. provides constructive notice.
c. provides actual notice
d. both b and c
B
the act of recording provided constructive notice to the world, regardless of whether anyone looks (actual notice.) The act of recording alone does not create actual notice. Recording the deed has no effect on whether title transfer
All of the following statements are true about valid restrictive covenants except:
a. the covenant runs with the land
b. the covenant may be removed without legal notice
c. the covenant does not need a termination date
d. the covenant may be at variance with Fair Housing laws
D
The federal fair housing law and state laws make it illegal to restrict the sale or lease of property based on a person's race, color, religion, national origin, sex, handicap, or familial status. Any restrictive covenants in deed at variance with Fair Housing laws would be unenforceable
Each closed real estate transaction requires a report to be filed with the IRS on form 1099. Required information includes the seller's name, social security number and:
a. buyers name and social security number
b. the selling price of the property
c. the name of the mortgage lender
d. the legal description of the property
B
The selling price of the property is included in the 1099. This is the amount of income the seller received. At tax reporting time, this sale is subject to adjustments when calculating the actual tax due
Title passes from the grantor to the grantee after the deed is:
a. signed
b. acknowledged
c. delivered
d. recorded
C
Legal title to real property conveys (passes) to a purchaser (grantee) when the deed is delivered by the seller (grantor) and accepted by the grantee. Acceptance is legally presumed in absence of evidence to the contrary
All of the following are examples of insurable title defects except:
a. forged documents
b. undisclosed heirs
c. mental incompetence
d. unrecorded easements
D
All of the listed items, except unrecorded easements are common insured title defects. Unrecorded easements and other rights of parties in possession are generally excluded along with facts that an accurate survey would reveal, taxes, and assessments not yet due or payable and zoning and other government restrictions
To transfer title to property by deed, which of the following is required?
a. the deed must be recorded in the public record
b the deed must be signed by the buyer
c. the deed must be signed by the grantor
d. both b and c
C
The only item on the list of answer options that is required of a valid dee is the signature of the GRANTOR
A deed delivered in escrow is given to:
a. a neutral third party
b. the mortgagee
c. the buyer's attorney
d. the seller's attorney
A
A neutral third party is the textbook definition of an escrow agent
A restrictive covenant in a deed could:
a. prohibit resale of the property
b. override zoning regulations
c. prevent the resale of the property to people with children
d. prevent the use of the property as a bar
D
A restrictive covenant must be legal. Restraints on alienation (resale) are illegal. A restraint on sales to people with children is a violation of Fair Housing. A deed restriction could be more restrictive than zoning laws but cannot be less restrictive than zoning laws. Restricting a special use is not uncommon
The covenant in a deed where the grantor guarantees that she owns the property and has the right to sell it is known as:
a. seisin
b. against encumbrances
c. warranty forever
d. quiet enjoyment
A
A covenant of seisin is an assurance by the grantor to the grantee that the grantor has the degree of ownership that the grantor claims she can convey
Tax assessment of real property according to value is known as
a. appraisal
b. ad valorem
c. replacement cost
d. accretion
B
The question states a text book definition of ad valorem
Which of the following is not true about title insurance?
a. the policy will include a list of exclusions
b. it serves many of the same functions as homeowner's insurance
c. it will insure the owner against losses arising from title defects
d. it will generally include exclusions for unrecorded easements
B
Title insurance (insures against encumbrances) and homeowner's insurance insures against damage to the home are two different things
Who pays excise taxes
a. grantor
b. grantee
c. broker
d. both a and b
D
An excise tax is a tax assessed for a service. For the grantor, excise taxes may include transfer taxes paid at settlement. For the grantee, excise taxes may include recordation taxes
In order to examine a recorded deed, which of the following is necessary?
a. written permission of the owner
b. an inquiry notice
c. a court order
d. none of the above
D
Deeds are part of the public record and any person may go to those records and review them
If a seller deposits a deed with an escrow agent but the seller dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow due to the:
a. parties consent
b. law of contracts
c. parole evidence rule
d. doctrine of relation back
D
The question states the definition of the relation back rule
When the grantor of a deed swears that he is conveying title of his own free will, his action is referred to as:
a. execution
b. acknowledgement
c. novation
d. authentication
B
Swearing that he passes title (in a deed) of his own free will is usually done before a notary public or some other official and is called acknowledgement
Which of the following best describes the process of taxing real estate according to its value?
a. ad valorem
b. assessment
c. appraisal
d. special assessment
A
Ad valorem means according to value which describes the general method of arriving at the real estate tax
Title to real property is conveyed by deed when:
a. signed by the grantor
b. recorded by the grantee
c. delivered and accepted
d. signed by the grantee
C
Once a deed has been delivered and accepted, title passes and the deed then becomes evidence of the fact that title was conveyed
The covenant in a deed where the grantor guarantees that no one has any other interest in the property that will disturb the grantee's possession is known as:
a. the covenant of further assurances
b. the covenant against encumbrances
c. the covenant of quiet enjoyment
d. the covenant of seisin
C
Further assurances means that the grantor will execute any other documents necessary to perfect the title. Encumbrances means there are no outstanding debts, except those stated in the deed. Seisin means ownership
If a deed transferring legal title from one party to another is NOT recorded in the public record, which of the following statements is correct:
a. the deed is valid
b. the grantor gives up all right to the property conveyed
c. both a and b
d. the transfer is not valid
C
Recording the deed is NOT essential for the validity of the deed. It is the wise and prudent thing done by most people. In transferring title, the grantor gives up his rights
Jill agrees to sell Jason a three bedroom ranch. Per the sales agreement, Jill deposited the deed to the ranch in escrow. Subsequently, Jill dies. The ranch will most likely:
a. pass to Jill's heirs provided she left a valid will
b. pass to the state because the escrow terminates
c. pass to Jason, provided he satisfies the terms of the sales agreement
d. pass to Jason if he is an heir of Jill's
C
The doctrine of relation back establishes that the death of the grantor does not terminate the escrow and authorizes the escrow agent to deliver the deed as instructed. Provided Jason satisfies the terms of the sales contract. Jill's death does not affect the transaction
The purpose of a recording act is to:
a. ensure title is marketable
b. raise revenue
c. create a local public record
d. protect property owners
C
Recording acts create local public records that are available for public inspection. This ensures public notice of all recorded information. Choice four is too narrow (creditors are also protected by recording statutes) as compared with choice three
Fees charges for the privilege of buying or selling property in a particular jurisdiction are known as:
a. excise taxes
b. al valorem taxes
c. special assessments
d. none of the above
A
The question states the textbook definition of excise taxes (grantor's tax)
All of the following usually perform title searches except:
a. an examiner
b. an abstractor
c. a real estate person
d. the same company that issues title on the property
C
One who performs a title search is known as a title examiner or abstractor. to promote its own interests, the same company that issues title usually conducts the title search. Real estate persons generally do not perform title searches
Deed restrictions usually apply to:
a. current owners
b. subsequent owners
c. all property owners in a neighborhood
d. both 1 and 2
D
Deed restrictions run with the land and therefore apply to the current owner and any other person who later occupies the property. While other homes in a neighborhood may have similar deed restrictions (developments) each deed restriction applies only to the owner
Which of the following clauses is least likely to be included in a mortgage?
a. acceleration
b. habendum
c. alienation
d. defeasance
B
A habendum clause is found in a deed, not a mortgage. It is the clause that begins with "To have and to hold" and describes how the property will be held by the new owner. All other items listed are generally included in the mortgage
On Sept. 12, 1991, a residential property had the following liens filed against it: a 1st mortgage, a mechanic's lien and a special assessment. On May 20, 1992 a 2nd mechanic lien was filed against the property. Which lien has priority?
a. mortgage
b. 1st mechanic's lien
c. special assessment
d. 2nd mechanic's lien
C
The special assessment would have priority over all the other liens. Special are a form of real property tax and property taxes have priority over other liens
Which of the following deed creates the most liability for a seller?
a. special warranty deed
b. universal warranty deed
c. general warranty deed
d. quitclaim deed
C
The general warranty deed is the most complete of all deeds. It carries all the warranties of title. A quitclaim deed is the least complete in that it warrants nothing. A special warranty deed warrants only against defects arising during the tenure of the grantor's ownership and not against previous defects of title.
Bill and Sue want to purchase a house that is occupied by their grandparents. they want to take title in such a way that will result in the least amount of income tax liability for themselves. How should the real estate agent advise them?
a. take title as tenants in common with their grandparents
b. acquire title as joint tenants with each other
c. take title as tenants in common but with equal interest
d. refer them to a tax advisor or attorney
D
Duh
A condensed history of the documents affecting real property is:
a. an abstract of title
b. the chain of title
c. an affidavit of title
d. an abstract of judgements
A
The condensed history is the abstract. A chain of title is similar but not as complete. An affidavit of title is the swearing that there have been no encumbrances incurred since the title search
Escrow may be used in which of the following situations?
a. when property is purchased and secured by a deed of trust
b. in an exchange of property
c. with a contract for sale
d. all of the above
D
Escrow is the holding of money, documents, etc. by a third party until the conditions of a contract have been satisfied by the principle parties. Escrow is commonly used in most real estate transactions including the closing of a mortgage loans and property exchanges
A court order to remove a cloud from the title is called an action or suit:
a. for specific performance
b. for title insurance
c. to quiet title
of legal injunction
C
A court action for the removal of a defect, cloud or claim against the title of a property is called a suit to quiet title
A house sold for $109,000 with the buyer making a 20% downpayment. The grantor's tax is based on the:
a. down payment
b. loan amount
c. selling price
d. none of the above
C
The grantor's tax is based in the selling price of the property
What should Sally Salesperson do with an earnest money deposit check she received from a buyer?
a. deposit it in her escrow account
b. give it to her broker
c. attach the check to the contract and file it
d. give it to the seller
B
The deposit should be given to the broker as soon as the buyer's offer is accepted by the seller and a contract exists. Remember a salesperson doe not have an escrow account- only the broker does
All of the following would be considered involuntary alienation except:
a. foreclosure
b. eminent domain
c. devise
d. adverse possession
C
Alienation means to transfer property. A devise is a gift of real property through a will which is a voluntary act. Foreclosure, when the lender takes over property, and eminent domain when the government takes over property is involuntary. Adverse possession can only occur without the true owner's permission
Pete purchased a house from Tony. He did not record his deed, but took immediate possession. Tony died a few months later and according to the terms of his will, the property will go to his nephew, Bob. Bob knew his friend angela was interested in buying a house. They inspected the property and angela agreed to but it from Bob. Angela recorded her deed. Who owns the property?
a. Angela because she recorded the deed
b. Bob because Tony died testate
c. Pete because he purchased it from Tony
d. Pete due to the relation of back doctrine
C
A deed does not need to be recorded to effect a transfer of title. Bob and Angela inspected the property thereby having actual notice that Pete was in possession which should have been questioned. Legally the property belongs to Pete. Back doctrine is when the grantor dies while the property is in escrow
In a foreclosure sale, what kind of deed does the mortgagor receive?
a. sheriff's deed
b. executor's deed
c. quitclaim deed
d. none of the above
D
The mortgagor is the person in default. The new buyer, at a foreclosure sale receives a sheriff's deed (or special warranty deed)
Bill sells real property to Betty through an escrow closing. Bill relinquishes control of the deed, but Betty does not receive it. what most likely happened to the deed?
a. it was stolen
b. Bill placed it in a safe deposit box
c. Bill gave it to his wife to hold
d. Bill delivered it to an escrow agent
D
Note the question states this is an escrow closing. In an escrow closing, the deed is placed in escrow, where the grantor relinquishes his control of the deed. the escrow agent delivers the deed to the grantee upon the completion of stated conditions agreed to by the parties (usually stated by the sales contract)
If a deed is delivered in escrow, it is given to:
a. the buyers attorney
b. the sellers attorney
c. a neutral third party
d. the mortgage
C
The trustee (holder of escrow) is a neutral third party to the contract
Which of the following is NOT a cloud on title?
a. a valid first mortgage
b. a recorded contract for deed under which the buyer's rights have been judicially terminated
c. a recorded option contract whose option period has expired
d. a recorded mortgage that has been paid in full but a satisfied has never been recorded
A
The question is intended to turn on the distinction between "cloud on title," "title defect," and "marketable title." It uses the phrase cloud on title as an indication of potential but uncertain defect that may be cleared. A valid first mortgage is certain to be a title defect (encumbrance) that prevents marketable title. However, it is not a cloud because there is no ambiguity, it is certain to establish a defect and prevent marketable title.
Which of the following provides compensation for defects?
a. homeowner's insurance
b. private mortgage insurance (PMI)
c. title insurance
c. B and C
C
Title insurance reimburses the title holder for certain losses incurred due to defects in the title. Homeowners' insurance reimburses the homeowner for damage to the house or property.
A house sold for $140,00 and the buyer made a downpayment of 20%. Assuming a rate of $1.00 per $1,00 the grantor's tax will be
a. $28.00 based on the down payment
b. $112,000 based on the loan amount
c. $140,000 based on the sales price
d. none of the above
C
Grantor's tax is charged on the basis of the selling price of the property, not the loan amount
Larry sells David some property. The deed from Larry to David contains the following covenants: seisin, quiet enjoyment, against encumbrances and further assurances. Following the transfer, David discovers utility poles on the property, which lead to a nearby transformer. Larry failed to list the utility poles in the deed. Larry's failure to identify these encumbrances violates:
a. the covenant of quiet enjoyment
b. the covenant against encumbrances
c. the covenant against grantor's acts
d. none of the above
D
A covenant against encumbrances is the grantor's guarantee that there are no encumbrances against the property except those specifically disclosed. The utility poles are indeed an encumbrance. However, the covenant against encumbrances is not breached by merely failing to list an open and visible encumbrance. Open and visible encumbrances provide actual notice to purchasers and therefore do not need to be listed in the deed
It would not be considered commingling of funds if:
a. the broker holds an ernest money deposit check at the request of the offeror, until acceptance by the offeree.
b. the broker holds an EMD check at the request of the offeror, after acceptance by the offeree
c. the broker holds an EMD in his personal account until the offer is accepted or rejected
d. the broker holds the EMD in his brokerage operating account because the deal is going to be all cash
A
Holding a check at the request of the offeror until acceptance by the offeree is a normal practice and not commingling. Once the offer is accepted, the money must be immediately placed in the escrow account. The broker never puts money, belonging to others in his personal or brokerage account
Which of the following in not prorate between buyer and seller at closing?
a. recording fees
b. real estate taxes
c. rents
d. homeowner's insurance premiums
a
Recording fees are not prorated. Each party pays their own. If insurance premiums have been paid in advance by the seller they would be prorates if the buyer is assuming the insurance policy. However, this is not as common as it once was
A quitclaim deed may be used to:
a.transfer ownership of a fee simple estate
b. transfer interest in a life estate
c. terminate an easement
d. any of the above
D
A quitclaim deed can be used to transfer any interest in real property from one party to another. It is normally used for the transfer of an interest that is less than fee simple
Bob imposes a deed restriction on his property that prohibits the sale of his home to anyone from France. Bob's deed restriction is:
a. voidable
b. void
c. enforceable
d. irrelevant
B
Illegal covenants are void (not voidable- no action need be taken) and unenforceable. Discrimination based on national origin is illegal based on fair housing laws. Therefore Bob's deed restriction is void and unenforceable.
A title insurance policy reimburses the title holder for:
a. loss of property through foreclosure
b. loss as a result of a superior claim
c. damage caused by fire
d. flood damage
b
Title insurance reimburses the policy holder for specified losses caused by title defects the arose before the effective date of the policy.
Recording a document creates:
a. constructive notice
b. actual notice
c. record notice
d. both a and b
A
Recording a document provides constructive notice of its existence, as mandated by the recording acts. Inspecting recorded documents creates actual notice.
Smith is interested in purchasing a parcel of land but wants to first examine any recorded documents relating to the parcel. Smith must have authorization from:
a. the current owner
b. the civil court having jurisdiction
c. a magistrate
d. no one
D
All recorded documents pertaining to land are public information. Therefore, no permission is required to gain access
In the event of any conflict, which clause would best state the extent of ownership?
a. premises
b. testimonium
c. habendum
d. all of the above
A
While both premises and habendum clauses could state the event of ownership being transferred, the premises clause controls in the event of a conflict.
When a property sells, who pays to record the satisfaction or release of the existing deed of trust?
a. buyer
b. seller
c. lender
d. broker
B
The buyer pays to have his new deed recorded. The seller pays to have his existing deed of trust released
All of the following persons may act as escrow agents except:
a. brokers
b. neutral third persons
c. salespersons
d. attorneys
C
Brokers and attorneys can and do act as escrow agents. Both may be neutral third parties which is the basic requirement for an escrow agent. However most states do not allow sales persons to be escrow agents, although they may accept money and documents for escrow on behalf of their employing broker
A real estate broker wishes to deposit an ernest money check into his business operating account until settlement so the purchaser can earn a higher rate of interest on her funds. Should he do this?
a. yes, if the purchaser receives a comparison of available interest rates
b. yes, if the broker promises to insure such funds will be available at closing
c. no, these funds must be kept in a separate escrow account
d. no the broker cannot guarantee a higher interest rate
C
All funds held for others must be deposited into a separate escrow account, not in the business acount
Quincy sold Ralph a piece of property and transferred title to Ralph by quitclaim deed. Later a court determined that Quincy do not own the property. Which is true?
a. Ralph owns the property because court action was after title transferred
b. Ralph has no interest in the property
c. Ralph has a good claim against Quincy for misrepresentation
d. both b and c
B
With a quitclaim deed the grantor is conveying only the interest he has, if any, without guarantees. Because Quincy has no interest, he had nothing to sell and Ralph has no interest in the property. On these facts, Ralph has no basis for a suit because Quincy, through the quitclaim deed, never asserted ha had any interest at all
A written instrument or something of value given to a disinterested third party to hold, but which is to be turned over to a party upon satisfaction of specified conditions is an example of:
a. a bond
b. a deed of trust
c. an escrow
d. an assignment
C
The question describes an escrow closing. In an escrow closing (used by some states) documents (deeds, mortgages, etc.) and funds are held by a third party (not the buyer or seller) until closing is complete. Upon completing closing,(as specified by the purchase agreement), the escrow agent turns over the deed and funds to the proper parties
A property owner obtains a building permit to add a bedroom to her house. Her neighbors notice that the addition will result in a violation of the setback restrictions in the owner's deed. which of the following is the best course of action for any affected neighbors?
a. sue for damages due to the violation
b. nothing because the county sanctioned the addition by issuing a building permit
c. seek an injunction forcing the owner to tear it down
d. ask the county to revoke the building permit
c.
The setback restrictions described are deed restrictions, not zoning restrictions. The neighbors would sue for an injunction against the owner, either preventing the addition from being built or requiring that it be removed. Building permits do not override valid deed restrictions
A deed in which the grantor covenants only against claims that arise during the time that the grantor owned the property is referred to as a:
a. quitclaim deed
b. bargin and sale deed
c. general warranty deed
d. special (limited) warranty deed
D
In a special warranty deed, the grantor warrants only against title defects and claims which occurred during the time the grantor held title to the property, but not before that time. Bargain and sale deed and quitclaim deeds offer no warranty to the grantee regarding the status of title. General warranty deeds warrant against title defects and claims which occurred both before and during the time the grantor held title
Which of he following deed clauses is most likely to state the names of the parties?
a. premises
b. habendum
c. testimonium
d. none of the above
A
The premises clause contains the words of conveyance and often states the names of the parties.
One house in a large neighborhood stands out because it is not well maintained compared to the others. Which concept best explains this single home's impact on the surrounding community?
a. the poorly maintained home's value may rise due to immobility
b.the value of all other homes in the neighborhood will decrease due to immobility
c. the poorly maintained home's value would increase if it were assembled with another lot
d. the value of other homes in the neighborhood would decrease due to situs
A
A poorly maintained home in a large and well maintained community may actually increase in value due to the concept of immobility-it's value is directly affected by its external surroundings. One home is not likely to decrease property values for all other homes in a large community
Bobby purchases a lot for his dream home. A description of his lot states, " Starting from the tulip tree at the northeast corner of the Smith farm, proceed directly due west to the banks of Jeremy's Run, proceed south to the two Oak trees, proceed east to two large boulders, proceed north to the tulip tree" This method of land description is:
a. Metes and bounds
b. Rectangular
c. Prior Recorded Documents
d. Monument
D
Monument system relies on naturally occurring physical features of the land physical features of the land, such as those presented in the question.
Large blocks of land located in a rural area of a Midwestern state would most likely be described by:
a. government rectangular survey
b, lot,block and subdivision
c. metes and bounds
d. reference to other documents
A
the government survey method, or rectangular survey, is used in more that 30 states, mostly in the mid-west
The unity that exists in both a tenancy in common and joint tenancy is:
a. time
b. title
c. possession
d. none of the above
C
The "right" of possession is common to both forms of ownership. For joint tenancy to exist, each owner must acquire title from the same source, at the same time,and each owner must have the same percentage of interest. With a tenancy in common, there may be different interests and different sources
Which type of legal description will most accurately describe an irregular shaped parcel of land?
a. lot and block
b. metes and bounds
c. recorded plat of subdivision
d. government survey
B
Metes and bounds (and arguably monument, which is not a choice) is best suited to describe irregularly shaped parcels of land because one can easily navigate any shape from the point of beginning (POB)
Residential property may be composed of:
a. single family homes
b. single family homes and cooperatives
c. commercial buildings that may have the landlord's private apartment
d.a cattle ranch with a bedroom in the barn
b
Residential property is primarily composed of single family homes but can also include smaller multi- family units such as condominiums and cooperatives
Which of the following is not personal property?
a. a lease
b. a mortgage that secures personal property
c. partnership interests
d. an easement
D
Leases, mortgages on personal property and partnership interests are all personal property. Of the listed choices only easements are not personal property
Mary purchased the right to use an apartment weeks every year. this is an example of:
a. time share ownership
b. ownership as a tenant in common
c. cooperative ownership
d. a limited partnership
A
Time sharing (interval ownership) involves ownership only for a particular time period
Once created and properly recorded, may a subdivision plat be altered?
a. no, because all descriptions will retain the historical reference to the original subdivision
b. yes, so long as new plat are created and recorded that reflect the changes to the original plat
c. no because a change would render all prior descriptions based o the original invalid
d.yes, so long as permission is obtained from the local zoning board
B
Subdivisions may e further subdivided or altered after the initial plat is recorded. This requires creating and recording new plats. If this occurs, the legal description may need to refer to all plats reflecting the history of the description of the parcel at issue
Sam dies leaving a valid will. Sam leaves his children the family farm after the death of his wife, Jane. Several years after Sam's death, Jane sells her interest to Larry. Which of the following is true?
a. Larry has no interest but may cancel the contract due to Jane's fraud
b. Larry has no interest because Jane did not get the children's permission to sell farm
c. Larry has a life estate per autre vie
d. none of the above
c
Jane has a life estate and the children are remainderman. Jane may only sell the type of interest she has. Thus when she sells the property, the buyer's interest is the same as Jane's life estate measured by Jane's life, also known as lfe estate per autre vie
The right or privilege that one has to use the property of another is
a. a license
b. a lease
c. and easement
d. all of the above
An easement, lease, and license create a right to use someone else's property. However, an easement creates a more permanent and secure interest than either a license or a lease
A condominium could be which of the following
a. multi-story building
b. townhouse community
c. industrial office park
d. any of the above
D
Condominium type ownership can be created anywhere for any type of property
Three people own a piece of property as tenants in common. Two of the owners want to sell the property but the third party does not. The two owners that want to sell:
a. cannot sell because all three must agree
b. may file suit for partition
c. may seek detachment
d. may severe the third parties interest
b
Both joint tenants and tenants in common may file suit for partition, which is a request to a court to divide property owned concurrently. If, the court could order the sale of the property and divide the proceeds
Which of the following is an example of a tenancy at sufferance?
a. a farmer who refuses to give up possession of property when his lease expires in order to harvest his growing crops
b. a person who leases a store and renews her lease on a month to month basis
c. a tenant who installed trade fixtures, but did not remove them when the leases expired
d.a tenant that uses the premises in violation of her lease
A
A tenant in sufferance is a person who remains in possession of leased property after his or her lease expires. while a farmer retains title to his crops, he has no rights to the leased premises. A tenant that violate the conditions of her lease before it expires still has lawful possession unless she is evicted
Which of the following is not an improvement of land?
a. building
b. sidewalk
c. corn crop
d. flower bed
C
Improvements refer to the development of land through the construction of valuable additions. Crops are not improvements, as they do not improve the value of the land (as emblements or fructus industriales, they are owned by the farmer
Physical characteristics of the land include all but which of the following:
a. heterogeneity
b. indestructibility
c. immobility
d. fixity
D
Fixity or investment permanence is an economic characteristic of land. Heterogeneity (uniqueness), indestructibility, and immobility are physical characteristics of land
The most predictable element of severance is:
a.attachment
b. intent
c. agreement
d. adaptation
C
Always avoid doubt by reducing an agreement to writing. The written agreement is the best way to ensure questionable items like fixtures transfer
A land description that reads "T4S,R3E" is most likely based on the:
a. monument method
b. government survey method
c. metes and bounds method
d. recorded plat method
B
The rectangular or government survey method uses range lines, which are north south lines in a township. Townships are located by their distance north or south of the base line and east or west of the primary meridian. Government survey descriptions read "Township 4 South, Range 3 East" or "T4S.R3S"
Which statement about encumbrances is correct?
a. an encumbrance could increase real property value
b. a lease is an example of an encumbrance
c. encumbrance can only be created by an owner of real property
d. both a and c
B
an encumbrance is anything that affects the title to real property and diminishes its value. there are some positive encumbrances, but if there is an encumbrance on the property is diminishes the owner's rights. Encumbrances can be created by either individual or government action. Finally a lease is an example of an encumbrance
An adequate metes and bounds description will have all of the following except:
a. a definite point of beginning
b.four sides
c. closure
d. linear measurements and compass directions
B
Property does not need to be shaped like a square. It an be any shape with ore or less than four sides
Jones owns two tracts of land. One is a lakefront property. Jones sells one tract to Smith and gives Smith the right of way to cross his property to reach the lake. But for the right to cross Jones' property, there is no other way for Smith to reach the lake. Smith's right could be:
a. an easement by necessity
b. an easement in gross
c. created by operation of law
d. all of the above
B
Smith could have either an appurtenant easement or an easement in gross. However, the question does not specify that the properties are adjoining, or the Smith owns a tract without access. there is no indication of any necessity. therefore, an easement in gross is the best answer. Easements in gross are personal and will terminate if the servient owner sells his lot or if either party dies
Which of the following best describes ownership in severalty?
a. several persons own one piece of real property
b. one person owns several pieces of land
c. limited to a corporate ownership
d. property owned by several members of the same family
B
When one person alone owns property, it is owned in severalty. It means severed from all others
Which phrase best explains why two physically similar parcels of real estate can have very different economic values?
a. The supply of land on earth is fixed
b. land cannot be created or destroyed
c. location, location, location
d. land cannot be moved from one place to another
C
Area preference or situs. situs os an economic term that refers to people's preference for one area over another
Jon purchased a 640 acre tract of land in Virginia. Which method of legally describing property would work best for Jon?
a. Monument
b. metes and bounds
c. recorded plat
d. geodetic
D
Geodetic or government survey is best suited to identify land tracts of land. Under this system there are townships and sections. One section is one square mile, or 640 acres
Which of the following is not a freehold estate?
a. a future interest in land
b. a lease which does not require rent payments
c. a life estate
d. all of the above
b
Life estates and future estates are freeholds. All leases, regardless of the term, are leaseholds, or non-freehold estates
All of the following are considered legal descriptions of real property except:
a. lot and block
b. metes and bounds
c. street address
d. government survey
C
Street address is a valid method to describe property in documents such as sales contracts. However, street addresses are never valid legal descriptions
The trespass of an improvement defines:
a. an easement
b. a license
c. an encroachment
d. none of the above
C
To trespass is to be someplace without the owner's permission. If an improvement encroaches on a property line, it is a trespass
The following property rights automatically convey:
a. surface rights
b. subsurface rights
c. control
d. all of the above
d
These are all property rights derived from the bundle of legal rights
The rights of a condominium owner are defined by the:
a. management agreement
b. bylaws and condominium declaration
c. bylaws and the corporate charter
d. Public Offering Statement
B
Condos are governed by their bylaws and their declaration documents
Which of the following distinguishes an easement in gross from an appurtenant easement?
a. whether the benefit runs with the land
b. whether there are adjacent properties
c. whether the use is regularly exercised
d. whether the purpose is legal
A
An easement appurtenant attaches to and runs with the land while an easement in gross is a personal right which would terminate with the death of either the grantor or the grantee. An easement in gross also terminates with the sale of the property. Therefore and easement in gross does not run with the land.
A cooperative owner has exclusive use of her unit by reason of:
a. general partnership
b. proprietary lease
c. fee simple title
d. license
b
Cooperatives are a form of ownership composed of single units in a multi-unit development. Title to land and improvements is held by a business entity (corporation), which holds title. A purchaser receives stock in the business entity and takes a proprietary lease, which provides for exclusive use of a specified unit
If a man is considered a proprietary tenant, he most likely is the owner of an interest in which of the following?
a. condominium apartment
b. apartment house
c. cooperative apartment
d. office building
C
A person who lives in a cooperative apartment does so because he owns stock in the cooperative and is given a proprietary lease on his apartment
All of the following are true about land except:
a. land exists forever
b. real estate is immobile
c. land cannot be insured
d.land may be depreciated
D
The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it
Harry takes pride in his home by keeping it well maintained. However, Harry's neighbors are not so conscientious. What concept best explains why Harry's home is losing value?
a. immobility
b. uniqueness
c. scarcity
d. situs
A
We do not know if Harry's location is preferential or not. However, due to immobility, the value of a piece of real property is directly affected by its external surroundings. Therefore, a well maintained home will lose value if the neighborhood around it declines
Fred bought a new boat. He hired a contractor to build a dock on his property. Fred did not pay the contractor. In an attempt to get paid, the contractor may file :
a. a mechanic's lien against the boat
b. a mechanic's lien against the property
c. general lien against Fred
d. all of the above
the contractor improved real property by building a dock and is therefore entitled to file a mechanic's lien against the property which was improved. He cannot file a mechanic's lien on the boat which is personal property and he cannot file a general lien because mechanic's liens are specific
A joint tenant wants to sell his interest without the consent of the other joint tenants. Can he do this?
a. yes, because each joint tenant may sell independently of the others
b. yes, because survivorship is present in joint tenancy
c. no, because all members must first agree to sever the tenancy
d. no, because the unity of interest in a joint tenancy protects the other co-owners
a
One joint tenant may sell his or her interest independently of the others and without their consent, but could not sell the whole. Anyone who buys that interest will become a tenant in common with the others not a joint tenant
Which of the following is personal property?
a. apartment lease
b. business reputation
c. tool shed attached to the brick foundation
d. both a and b
D
Leases and business reputation are both intangible personal property
Land is insurable due largely to its:
a. uniqueness
b. indestructibility
c. improvements
d. none of the above
D
The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. therefore, the question states a negative and none of the answers are true
Real property can be changed into personal property:
a. by right of appropriation
b. by severance
c. by the law of capture
d. never, land is indestructible
B
Severance describes the analysis one undergoes to determine whether a fixture may be removed from real property. Appropriation refers to water law doctrine. Capture is a red herring. While land is generally indestructible, it can change from real to personal property and vice versa
Which of the following would diminish a fee simple estate?
a. death of the owner
b. sale of the property
c. rental of the property
d. all of the above
c
If the owner dies or sells the property, he has nothing to diminish. If the owner rents his property, he gives up his right of possession, thereby reducing his right of ownership
Of the items listed below, which does not match?
a. survivorship...joint tenancy
b. fee simple......forever
c. testate.....escheat
d. tenants in common....undivided interest
C
all items match except testate which means that someone died with a will and escheat which describes the government power to receive property where the owner dies and leaves no will and without any lawful heirs.
A tenant and landlord enter into a six month lease on July 1,1991, to expire on December 31, 1991. which of the following statements is correct?
a. the landlord must serve notice to quit 30 days prior to expiration of the lease will renew
b. the tenant must serve notice to quit at least 30 days before expiration or the lease will renew
c. if neither party provides proper notice to quit, the lease will renew for another 6 months
d. the lease will terminate on Dec. 31, 1991
D
This question describes an estate for years because there is a definite beginning and ending date. Estates for years do not require any notice to terminate because an end is specified. Therefore the lease will terminate on Dec. 31, 1991
If title to real property will pass to someone other than the grantor upon termination of an estate, the interest held by the person who will receive the property is:
a. revisionary
b. a remainder
c. equitable
d. ostensible
B
If the interest goes back to the grantor's interest is revisionary. When the interest goes back to someone else, the interest is remainder
Boundary markers of land, either natural or man-made, are best known as:
a. benchmarks
b. monuments
c. stakes
d. metes
B
Monuments can be a natural object such as a tree, a rock or a river. They can also be permanent artificial markers. A surveyor's benchmark is an example of an artificial monument, but when used to define the area of a parcel of land, it is considered a monument
Commercial property may consist of the following except:
a. apartment buildings
b. vacant lots
c. parking lots
d. factories
D
Commercial property includes apartment building, paring lots, and vacant lots and tracts of land suitable and available for construction of commercial uses. Factories are classified as an industrial use.
Property taxes on cooperative buildings are assessed in the form of:
a. individual tax bills for each unit
b. a single tax bill prorated among individual units
c. annual tax bills based on the type of unit
d. biannual tax bill based on the type of unit
B
The tax bill is issued to the corporation or owner entity and then is prorated among the proprietary tenants
Industrial property includes all of the following uses except:
a. mines
b. warehouses
c. ranches
d. vacant lots
C
Industrial property includes mines, warehouses, plants, factories, utilities, and vacant land suitable for industrial development
The right of a landlord to reenter or regain possession of the premises upon expiration of a lease is known as:
a. redemption
b. reversion
c. remainder
d. recovery
B
When the landlord leased the property, he gave up his right of possession. Upon termination of the lease agreement, the right of possession REVERTS to the landlord.
Tommy takes over a tattoo parlor from an existing tenant. The parlor rented with a comfortable dentist chair. One day the chair break. tommy installs a new dentists chair. The new chair is:
a. personal property regardless of when it is removed
b. real property if not timely removed
c. personal property so long as it is timely removed
d. real property regardless of when it is removed
D
Replacement fixtures are improvements that are installed by a tenant to replace worn out or broken items that were in place before the start of the lease. Replacement fixtures are properly classified as real property and belong to the owner. Because tommy is merely replacing the chair, it is not a trade fixture, it is a replacement fixture. Therefore the chair is real property regardless of when or if it is removed. (Tommy cannot remove it)
If a husband and a wife own property as Tenants in common, which of the following statements is true?
a. either may dispose of their own interest without approval of the other
b. title to the property is in the marital unit
c. both must agree to dispose of their interest
d. non of the above
A
A tenant in common may dispose of his or her own interest without permission of the other owners. The fact that the owners are husband and wife is irrelevant
Real Property does not include:
a. air rights
b. trade fixtures
c. improvements
d. mineral rights
B
Trade fixtures remain the property of a tenant so long as they are timely removed. All other choices describe real property.
Which of the following is not considered a legal description of property?
a. metes and bound
b. lot and block
c. rectangular survey system
d. taxpayer federal ID number
D
All choices are valid methods of legal land description except a taxpayers ID number
One who is to rent a property from June 1 to June 30 of the same year most likely has:
a. an estate for years
b. a periodic estate
c. tenancy at will
d. a license
A
Even though the lease period is only one month, the lease has a definite beginning and ending and is therefore and estate for years
There are three owners of a property. they own 10%, 20% and 70% respectively. What type of ownership do they have?
a. joint tenancy
b. tenancy in common
c. tenancy by the entireties
d. either a or b
B
A joint tenancy requires that each tenant have a unity of interest (an identical interest in the property). A tenancy in common does not contain a unity of interest (permits each tenant to have a different percentage of interest) A tenancy by the entireties applies only to a husband and wife.
Which method of legally describing land relies on range lines?
a. vertical
b. lot, block, and subdivision
c. rectangular
d. monument
C
the rectangular or government survey method uses range lines, which are north south lines in a township
Lionel rents an apartment under a three year lease. After the first six months, the landlord sells the building. Lionel:
a. must renegotiate the lease with the new owner or vacate the premises
b. need not do anything if the owner fails to renegotiate the lease within 60 days
c. need not do anything but the new owner may terminate the lease at any time
d. need not do anything
D
The new owner owns the property subject to the existing lease, he must honor the rental period and may not significantly alter the terms. Therefore, because the lease is Lionel's personal property, he need not do anything
Farmer Pete leases land to grow wheat. In April, Farmer Pete plants his crop, expecting to harvest in October. However in September, just before harvest, Farmer Pete's landlord successfully evicts Farmer Pete for nonpayment of rents. In October, Farmer Pete attempts to harvest his wheat. The wheat belongs to:
Farmer Pete because it is his personal property.
Growing crops is known as fructus industriales or emblements. Emblements remain personal property even before the harvest despite the fact that they are attached to the land. Landlords cannot deny tenants the right to enter and harvest crops even after the lease terminates
A real property owner may:
a. possess property but not dispose of it
b. enjoy property but not encumber it
c. dispose of property but not destroy it
d. control property but not exclude others
C
The bundle of legal rights that accompany property ownership are: possess, control, enjoy, exclude, encumber, and dispose. Real property cannot be destroyed
If someone has fee simple ownership of one unit in a multi-storied building and pays property taxes on their unit, what type of ownership could they have?
a. proprietary lease
b. cooperative ownership
c. condominium ownership
d. joint tenancy in the common area
C
Of the choices, only condominium ownership includes a fee simple interest in the individual unit. A condominium also includes joint tenancy in common (not a joint tenancy) with other unit owners in common areas. The owner pays a mortgage payment, taxes, insurance, etc. on his individual unit only. A proprietary lease is associated with a cooperative, where an owner does not own the unit fee simple
Former personal property that automatically conveys:
a. is a trade fixture
b. is a fixture
c. occurs only by agreement
d. is a chattel
B
When personal property is affixed to land it can become real property that will convey with land. this is known as a fixture. Trade fixtures are also personal property that can be attached to land. However trade fixtures are installed by a tenant in connection with their trade or business and do not become real property unless they are not timely removed. Chattel is another name for personal property
Which of the following would be disclosed by a metes and bounds survey?
a. easements
b. marketability
c. encroachments
d. both b and c
C
The survey would reveal any physical encroachments. Easements would not be obvious and would have to be checked in the county records. Once this is checked, they are indicated on the plat the surveyor prepares. Depreciation is not something the surveyor considers, nor is the marketability of the property. He is only concerned with the physical characteristics of the land
Three people inherit unequal shares of a piece of property. How could they hold ownership?
a. as tenants in severalty
b. as tenants in common
c. as joint tenants
d. as either b or c
B
First, all three inherit a single piece of property. They each inherit a different percentage of the property which eliminates joint tenants. Owners ship in severalty is ownership by one person only. the law provides that when there is co-ownership, title will default to tenants in common unless the deed is specific to come other form of ownership
The land characteristic most likely to be the basis of a law suit for specific performance is:
a. immobility
b. heterogeneity
c. situs
d. improvements
B
Heterogeneity, or uniqueness is the legal basis for specific performance lawsuits, or lawsuits that seek to force a sale of land as agreed upon
A husband and wife own property as tenants by the entireties. The husband dies leaving all his property to their son. Which of the following is true?
a. the wife owns the property in severalty
b. the son is a tenant in common with the wife
c. the son will automatically inherit the property when the wife dies
d. the son has a life estate per autre vie
A
Tenancy by the entireties is a form of joint ownership with rights of survivorship. When the husband dies, he cannot will his portion to his son. It automatically goes to the wife
Which of the following is most likely to be severed?
a. garden tractor
b. commercial cooler
c. rail fence
d. either b or c
C
Severance is the act of removing a fixture. A fixture is an item of real property that was previously personal property. the fence was personal property before it was erected and when set it became real property. Garden tractors are personal property but the are not affixed to land. a commercial cooler is real property but if it is affixed to land it is most likely a trade fixture (severance does not apply to trade fixtures)
How may an appurtenant easement be terminated?
a. if the easement is released by the dominant estate
b. when the dominant estate owner dies
c. if the necessity no longer exists
d. either a or c
D
An appurtenant easement is one of two primary types of easements. The principle difference between these two types turns on whether the easement attaches to a particular person (easement in gross) or a particular parcel of land (appurtenant easement)
Mrs. Franklin is buying property from Mr. Akin. In order to get to the property, it is necessary to cross property owned by Mr. Travis. In the past, Mr Travis has granted permission to Mr. Akin. Mrs.Franklin wants to protect this privilege. What is the best way to protect this privilege?
a. an easement in gross
b. a license
c. an appurtenant easement
d. either a or c
C
An easement would give Mrs. Franklin the right to cross the property however an appurtenant easement would transfer to other property owners and survive the death of either owner. A license is revocable at the will of Mr. Travis
Which of the following is most likely to be automatically included in the sale of real property?
a. an easement
b. enjoyment
c. trade fixtures
d. a kitchen sink
B
Enjoyment refers to one of the sticks in the bundle of legal rights that always accompanies property ownership. An easement may not always convey, if for example, it is an easement in gross. Trade fixtures are personal property of the tenant who installed them unless they are not timely removed. A kitchen sink could be a fixture or a trade fixture.
A condominium association may do all of the following except:
a. elect a board of Directors
b. interview prospective buyers
c. award contracts to tradesmen
d. assess unit owners a fee to cover the cost of maintenance and repairs
B
The condominium association usually elects a Board of Directors. Prospective buyers buy condominiums directly from individual owners without being interviewed by the condominium association
Land moves by:
a. accretion
b. erosion
c. both a and b
d. none of the above because land is immobile
C
Accretion happens when soil is washed away by flowing water and deposited elsewhere. Erosion is the natural process that causes a portion of soil to move.
Which of the following statements, relative to lien priority, is incorrect?
a. a recorded deed has priority over a recorded mortgage
b. federal income tax liens have priority over all other liens
c. mechanics liens apply on the date that work began or material was supplied
d. the date of recording determines the priority of private liens
B
Real estate tax liens have priority over all others. Federal and State income tax liens must get in line just like all the others. A deed must be recorded before property can be pledged.
When a metes and bounds survey is used to describe property, the word metes refers to:
a. monuments
b. areas twenty four miles square
c. parallel lines that run north and south
d. the length in inches, feet, or yards for a property line
D
Metes is the length of a property line in inched, feet, and yards, rods or any linear measurements. Bounds are the monuments used to identify the boundary of the property
Which of the following is not a valid method of describing real property?
a. metes and bounds
b. street address
c. government method of survey
d. all of the above are valid methods
D
A street address is not a legal method to describe property because the street name is subject to change. However, while not legally enforceable in a deed, a street address can be sufficient to identify the subject of a sales contract.
Mr. and Mrs. Jones sold their home to a church but retained the right to occupy the property as long as they lived. The interest of the church is that of a:
a. life estate
b. remainder estate
c. trustee
d. reversion estate
B
Mr. and Mrs. Jones deeded their home to the church, but reserved a life estate for themselves. The church has a future estate and the Jones' are life tenants. Future estates include both the remainder and reversion estates. A reversion estate is created when the grantor conveys less than a fee simple estate and retains future interest for himself. A remainder estate os where the grantor conveys less than a fee simple estate and creates a future interest for a third party
An owner of a fee simple absolute estate leaves a will specifying that he will leave a life estate to one party and a remainder estate to another. Upon the death of the life tenant, the remainderman could have a:
a. fee simple estate
b. life estate
c. leasehold estate
d. fee simple determinable estate
A
The question states the grantor has a fee simple absolute estate and that his will specifies only two things, that one person get a life estate and another get a remainder . Because the life tenant gets the interest the grantor had and the remainder will receive the interest the life tenant has and because there are no restrictions on the remainder, a fee simple estate will pass. Had the grantor put restrictions on the remainder estate, the estate could have been a fee simple determinable.
Harry hired a contractor to paint the interior and exterior of his rental property. Harry did not pay and the contractor filed a mechanic's lien. What of the following is true about the lien?
a. the lien can only be for the cost of the materials used
b. the lien applies to all of Harry's real property
c. the lien applies to all Harry's real and personal property
d. the lien applies only to Harry's rental property
D
Mechanic's liens apply only to the real property and only to the property improved. the lien can apply to the cost of both materials and labor
A person enteres into a lease agreement for 1 year. At the end of the year, the lease expires, but the tenant does not vacate the property. The tenant would be considered a:
a. periodic tenant because the lease automatically renews
b. tenant at will because no additional time period was specified
c. tenant at sufferance because the tenant is breaking the law
d. feehold tenant because the landlord failed to act
C
A person who remains on a property after his lease has expired is a tenant at sufferance. The tenant at sufferance exists only where a tenant's lawful rights to occupy the premises have expired. This estate is the lowest and most encumbered estate that exists
Which of the following is not true about metes and bounds?
a. the metes and bounds survey ends at the point of beginning
b. the distances shown in the deed will prevail over the actual distances numbered
c. the length of metes in the survey can be measured to one hundredth of a foot
d. the monument at the point of beginning should be a permanent as possible
B
If there is any difference between the distances shown in the deed and the actual distances measured by the survey, the data in the survey will prevail over the data contained in the deed
The original owner of a condominium unit holds which of the following interests?
a. a fee simple absolute in the unit
b. joint tenancy in the common areas
c. joint tenancy with the other owners of the common walls
d. all of the above
A
All original owners have fee simple absolute ownership in their individual living unit. Consistent with eh condominium form of ownership, all original and subsequent owner are tenants in common with with all other unit owners in the common areas of the project
Mary has a life estate and her daughter has been named remainderman. Mary leases the property to Susan for 5 years. One year later, Mary dies. Mary's daughter serves notice on Susan to vacate the property. Which of the following is correct?
a. the lease is valid for four more years because it is Susan's private property
b. the lease was valid from the beginning because the tenant did not commit waste
c. the lease was valid only during Mary's lifetime because it was one of the sticks in the bundle
d. the lease was invalid because it violates the statue of frauds
C
The life tenant has an interest in the property only during her lifetime. However, she can convey a lesser interest because property ownership always carries certain rights. But any interest Mary has in the property will terminate upon her death because she cannot convey a greater interest than the interest she holds. While the lease is Susan's private property, it is limited by Mary's life estate
Mr. foster owns an automobile, a boat, a house, and a farm. He defaults on the mortgage covering his house. If a judgement lien is entered, which of the following property could be subject to the judgement lien?
a. car
b. boat
c. home
d. all of the above
D
Judgement liens are general liens, which means that they attach to both the real and personal property of the debtor. However, judgement liens apply only to property located in the jurisdiction in which the lien is recorded
Zorba leases a restaurant. He installs ovens, booths and counters. Which os the following is true?
a. the ovens, booths and counters cannot be removed by Zorba
b. the ovens, booths and counters can be removed by Zorba at any time
c. the ovens, counters and booths can be removed by Zorba at any time before Zorba's lease expires
d. Zorba is not responsible for any damage caused by removing the ovens, booths and counters
C
Items used in trade are trade fixtures and are personal property of the tenant regardless of whether they are attached to the land. the may be removed before the lease expires, but any damage to the real property caused by the removal must be repaired. If not removed before the expiration of the lease, they become the property of the owner
To have any legal effect, plats drawn from the lot, block, and subdivision method must:
a. include a plat
b. be pre-approved by the county or city before recordation
c. be recorded
d. all of the above
D
Under the lot, block and subdivision method the size and location of each block and lot is shown on a plat which serves as the basic reference point for all subdivision lots. In order to have any legal effect, all plats must be recorded in the public recorder's office, clerk's office or land records of the locality in which it is situated. Plans must be pre-approved by the governmental section that is in charge of zoning before they can be recorded
Six months after Brady bought his home, he installed custom made storm windows and doors. If Brady subsequently transfers title to another, will the storm windows and doors automatically transfer as well?
a. yes, unless in advance of the sale, the parties agree they will be removed
b. yes, because the storm doors and windows are fixtures
c. no, because the storm doors and windows can be easily removed
d. no, so long and Brady reinstalls the original windows and doors
A
Storm doors and windows that are "custom made" for a property are considered fixtures because they have been adapted to the property. As fixtures they will transfer with the property unless they may be severed. Fixtures may be severed from property among other reasons if the parties agree before the sale.
Jean transfers a fee simple interest in her property to her daughter Lisa, but reserves a life estate for herself. During Jean's life time Lise holds a:
a. life interest per autre vie
b. remainder interest
c. reversionary interest
d. life estate
B
Lisa holds a remainder interest in the property until Jean dies then Lisa will own the property fee simple.
The force of water on land is known as:
a. accretion
b. riparian
c. littoral
d. annexation
A
Accretion occurs where natural forces such as water cause land to move from one parcel to another. Riparian and littoral refer to intangible interests in the use of water
Zorba owns property and gladly allows his friend Young to use it. To best protect Zorba's interest, he should give Young a:
a. easement in gross
b. right of way
c. appurtenant easement
d. license
D
A license is permission to use the land that may be oral and is revocable at will. An easement in gross is similar but must be written, creates an interest in land, and cannot be revoked outside of agreed upon termination.. A license provides greater flexibility for Zorba than and easement in gross
Which of the following methods of legal description most accurately describes an irregularly shaped parcel of land
a. metes and bounds
b. government survey
c. subdivision, lot and block
d. all of the above are equally accurate
A
Several persons hold real property as tenants in common. One of the tenants dies. His interest in the property will:
a. pass to his heirs or devises, if any
b. pass to the remainderman
c. be equally divided among the other owners
d. be divided between the other owners in proportion to their ownership interest
A
Upon the death of a tenant in common, his interest in the property passes to his heirs or devises. An heir is someone who receives property from a deceased person who has no will. A devise is a person who receives property from someone who has a will. Title passes to the other owners when there is joint tenancy not when there are tenants in common
A couple is buying a house with an odd shaped living room. The seller built custom made freestanding bookcases to fit in the room. Absent an agreement, the bookcase most likely:
a. a fixture
b. the buyer's personal property
c. a replacement fixture
d. the seller's personal property
D
In determining whether an item is a fixture, consider the method of the object's attachment, whether the object demonstrates adaptation to a unique feature, weather the parties have reached an agreement regarding the object and the relation of the parties. In this case, the object is not attached to the property in any permanent manner. Therefore, absent an agreement to the contrary, the bookcase most likely remains the personal property of the seller
Dave defaulted on his mortgage in February, In April a carpenter secured a mechanic's lein for work done on the house in March. A judge signed a judgement creating a lien against Dave and all of his real and personal property in June. Dave failed to pay his property taxes due in August. Which takes priority following a court ordered foreclosure of Dave's home?
a. the lien of his mortgage
b. the real estate tax lien
c. the judgement lien
d. the mechanic's lien
B
Real estate tax liens always take priority over all other liens, including mortgages
A building supplier delivers bricks to a job sit on July 1 to construct a patio. The contractor finished the patio on July 30 and was paid. The contractor files bankruptcy on Sept 1. On Sept 5, the building supply company files a lien against the property. what is the effective date of the lien?
a. Sept 5
b. Sept 1
C. July 30
d. July 1
D
A mechanic's lien regardless of when the notice was filed, takes priority based on the date that the materials were delivered or the date the work was begun to improve the real property
Smith and Brown own abutting property that borders a river. Over the years, soil from Smith's riverbank is washed onto Brown's riverbank. Who owns the soil that was washed from Smith's to Brown's property?
a. Smith
b. Brown
c. the state
d. none of the above because all riverbank owners have riparian rights
B
Accretion occurs where natural forces such as water cause land to move from one parcel to another. Once moved, it belongs to the receiving property owner
A lease that contains to mention of a period of occupancy is most likely to be
a. invalid
b. month to month lease
c. covered by the statute of frauds
d. a tenancy at sufferance
D
A lease may be valid without specified duration. A month to month lease does specify a period of occupancy- at least one month. Only if the lease is for one year or more does it fall under the statute of frauds. Finally, a tenancy at sufferance exists where someone remains in possession of the rental property after their lease expires, against the wishes of the landlord. Therefore a tenancy at sufferance specifies no period of occupancy
A legal land description must:
a. be sufficient to identify the property
b. carry measurements to the nearest inch
c. show the area of the and being described
d. contain an informal reference
A
A legal land description need only be sufficient to identify the property
A metes and bounds survey will most likely identify:
a. certain encumbrances
b. all title defects
c. marketable title
d. liens
A
a land survey documents the physical characteristics and boundaries of real property. An encroachment is an encumbrance which is a physical intrusion onto land land (trespass or nuisance).. A land survey could identify an encroachment like a fence or an outbuilding
A, B, C, and D intend to buy real property jointly contributing different amounts to the purchase. Each desires to protect heir heir's share of the inheritance. How can they take title?
a. joint tenancy
b. tenancy in common
c. tenancy by the entireties
d. either a or b
B
There is no choice but to take title as tenants in common. Joint tenancy requires that each owner hold the same percentage of interest and prohibits transfers by will (inheritance). They cannot be husband and wife because there are four people involved so is cannot be tenancy by the entirety
How can the extent of an encroachment always be discovered?
a. physical observation
b. land survey
c. title search
d. quit claim deed
B
A land survey done by a professional surveyor documents property boundaries. A competent surveyor will find and document any physical encroachments.
A prospective buyer wants the seller to include an ornate flagpole attached to the front porch of the house. What should the agent do to ensure the flagpole conveys?
a. nothing, because the pole is attached to the house
b. call the seller and advise them the buyer wants the pole
c. include the flag pole in the offer to purchase
d. photograph the flag pole as evidence of attachment
C
The best way to avoid a fixture dispute is always by agreement. By placing the flag pole in the offer, the buyer is attempting to reach an agreement with the seller.
The right of one party to posses and use real property exclusive of others is:
a. hypothecation
b. partition
c. ownership
d. all of the above
C
Textbook definition
The land description that uses a recorded subdivision plat is the:
a. geodetic survey method
b. rectangular survey method
c. lot and block system
d. metes and bounds survey method
C
Recorded subdivision plats are used with the lot, block and subdivision method of land description
An appurtenant easement may be terminated by:
a. merger of the dominant and servient estates
b. condemnation of the servient estate through eminent domain
c. abandonment of the servient estate
d. all of the above
A
An appurtenant easement could be terminated by merging both estates under one owner, where the owner of the dominant estate releases the easement on the servient estate, or when the owner of the dominant estate does not use the easement for a period of time (determined by statute) with an intent to abandon. If the servient estate is acquired by the govt. through eminent domain, the easement remains. Abandonment by the servient estate does not terminate the easement-abandonment must be by the dominant estate
Jones, Smith and Williams own property as joint tenants. Which of the following is true?
a. if Smith and Jones die, Williams will own the property as joint tenants with the heirs of Smith and Jones
b. if Jones dies, Smith and Williams will own the property as tenants in common
c. if Jones and Smith die, Williams will own the property in severalty
d. if any one of the owners die, the property goes to the heirs of the deceased owners
C
Property held by joint tenants includes right of survivorship. That is, only the surviving joint tenants continue to own the property. If only one joint tenant remains alive, he owns the property in severalty
A datum is most likely to be:
a. a point on the surface of a parcel
b. used in the govt. survey method of property description
c. used in the metes and bounds method of property description
d. a point below the surface of a parcel
A
A datum is used to develop a legal description of the air rights associated with a property. A datum is used to develop a legal description of the air rights associated with a property. a datum is the point, line, or surface from which a vertical height or depth is measured in the vertical land description method. The datum is often assigned to the surface of a lot, and distance above or below the datum are described accordingly
A woman owns an apartment building that is losing money. Her accountant tells her she could make a profit if she sells the apartments as condominiums. What documents must she record or provide?
a. condominium instruments
b. PUD
c. POS
d. both a and c
D
While state law provides the specifics, prospective condominium developers must record condo instruments with a local authority and provide prospective buyers with a public offering statement (POS). A PUD is a planned unit development. A PUD is similar in some ways to a condominium development, but a PUD is not the name of any instrument the must be file in order to develop a condominium
Mrs. Heckler bought a unit in a condominium unit directly across from the developer. She most likely received a:
a. proprietary interest in the development
b. fee simple interest in her unit
c. divisible fee simple interest in the common areas
d. all of the above
B
Because Mrs. Heckler purchased directly from the developer we know with reasonable certainty the she is an initial purchaser. As an initial purchaser, we know that Mrs. Heckler received a fee simple absolute interest in her condominium unit and an interest in the common elements, as tenant in common, with all the other unit owners
Agnes decides to impose a restrictive covenant (negative deed restriction) that will apply to any future owners of the property she is currently in possession of. Agnes must have:
a. a lease
b. a fee simple estate
c. an easement
d. either a or b
B
Only the holder of a fee simple estate may encumber the property with a dee restriction. this is one of the sticks (encumber) included in her bundle of rights
Which of the following is most likely to transfer with real property:
a. fructus naturales
b. portable kitchen appliances
c. fructus industriales
d. trade fixtures
A
Of the items listed, fructus naturales is most likely to transfer with real property. Fructus naturales refer to landscaping such as trees and bushes.
All of the following are physical characteristics of land except:
a. situs
b. immobility
c. heterogeneity
d. indestructibility
A
Situs is an economic characteristic of land. Heterogeneity refers to uniqueness, which is a physical characteristic of land
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