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Flashcards in Custom Quick CHapter 3 Deck (122)
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31

The most distinguishable characteristic of personal property is
A) all of these.
B) being incidental or appurtenant to land.
C) mobility.
D) being affixed to land as a permanent part of the land.

D) being affixed to land as a permanent part of the land.

32

The California sales tax applies to
A) all of these.
B) ad valorem taxation.
C) tangible personal property.
D) real and personal property.

C) tangible personal property.

33

Why is a legal description recommended in a sales contract?
A) The seller may have other properties in the area
B) The lender requests it
C) For the title company to locate the property
D) To help cooperating salespersons to find the property

A) The seller may have other properties in the area
Neither a real estate sales contract or even a deed is required to have a "legal description"—only an "adequate description." A description such as "My home in San Francisco" has been honored by a court when it could be shown that the grantor owned only one property in San Francisco. If the grantor had owned more than one parcel in that city, the court may not have been able to honor the deed. The reason a legal description is recommended is (1) it is the MOST adequate description, and (2) it is the best way to distinguish the specific property from all other properties.

34

Which "runs with the land"?
A) Stock in a mutual water company
B) All of these
C) Appurtenant easements
D) Covenants

B) All of these
All three of the choices given "run with the land." Covenants are encumbrances that remain on the land when the property is transferred. Stock in a mutual water company and appurtenant easements name real property rights that are transferred with the land when property is transferred.

35

The basic legal tool a city will use for a layout plan is
A) exceptions to general land usage.
B) a conditional use permit.
C) a variance.
D) zoning.

D) zoning.
The governing authority of a city has the power to adopt ordinances for the preservation and protection of public health, safety, morals, or general welfare. The basic legal tool a city will use for a layout plan is zoning, an exercise of the police power of government.

36

On or before June 30 each year, property for which owners are delinquent in their taxes is declared in default. This date is important because
A) the power of sale on or before June 30 starts the five-year period of redemption.
B) the occupant of the property must vacate the premises within 90 days.
C) all of these are true.
D) interest on the delinquent taxes will begin from December 10.

A) the power of sale on or before June 30 starts the five-year period of redemption.
Annually, the tax collector publishes a notice of sale of real property for which taxes are delinquent. This is not a sale but a declaration of default denoting the beginning of a five-year redemption period. This declaration of default must be made on or before June 30, usually the last business day of the month.

37

Which is a requirement of joint tenancy?
A) All parties must have equal interests.
B) All parties must have the same right of possession.
C) All of these
D) The words "taken in joint tenancy" must be next to the names of the joint tenants.

C) All of these

38

When there is a gradual build-up of land as the result of action of water, it is termed
A) erosion.
B) accretion.
C) avulsion.
D) dereliction.

B) accretion.
Accretion is the gradual build-up of land as the result of the action of water. Avulsion (opposite) is the sudden tearing away of land by the violent action of a water course. Erosion is gradual wearing away of land by current, wind, or tide. Dereliction is land left uncovered by the receding of water from its former bed. This process also called reliction.

39

Whatever the purpose of a land survey, the resultant description should contain
A) a specific length and direction of the sides of the property.
B) all of these.
C) a definite point of beginning and definite parcel corners.
D) the area in accepted units of measure contained within the described boundaries.

B) all of these.

40

Which would be the best description of a fee simple absolute estate?
A) Estate for years
B) Estate of inheritance
C) Greatest interest held in land
D) Owning property

C) Greatest interest held in land
Fee simple absolute estate: both estate of inheritance and greatest interest held in land apply; however, greatest interest held in land best describes the absolute estate.

41

A city has sold an assessment bond for the improvement of streets in a certain area. Properties within that area are assessed
A) by the area.
B) by the size of the lot.
C) in proportion to services or benefits that the land would receive.
D) by the number of lots in the subdivision.

C) in proportion to services or benefits that the land would receive.
Assessments for bonds sold to finance the improvement of streets are made to each property in accordance with the benefits to be derived by the property owner.

42

Assessed value for property tax purposes in California is the full cash value as of the tax roll for 1975-1976, plus a maximum annual inflationary factor increase up to

2%

43

The words ingress and egress are related to
A) easements.
B) fee title.
C) streams.
D) utilities.

A) easements.

44

What does ad valorem mean?
A) At will
B) According to value
C) To the use and benefit
D) For life

B) According to value

45

Eminent domain and police power are governmental rights established by law. Which action would NOT be considered police power?
A) Condemnation
B) Subdivision development regulations
C) Building regulations
D) Zoning laws

A) Condemnation
The use of the power of eminent domain is often referred to as condemnation. Building regulations, zoning laws, and subdivision development regulations are all examples of police power.

46

Which instrument requires a list of inventory of buildings on real property to be sold, conveyed, or insured?
A) None of these
B) Grant deed
C) Land contract
D) ALTA

A) None of these
Neither a land contract, grant deed, nor ALTA policy of title insurance requires a listing of the buildings or improvements. A legal description is all that is required.

47

A wife signs an agreement to sell community real property. The contract as it applies to her and her husband is
A) enforceable.
B) void.
C) voidable.
D) illegal.

C) voidable.
An agreement to sell would be unenforceable against the marital community if signed by one spouse only. It would be voidable by the nonconsenting spouse for one year. This type of contract is not considered void, because there is consent of one of the parties.

48

Which is the highest form of ownership?
A) Incorporeal freehold
B) Fee simple defeasible
C) Tenancy at will
D) Fee simple absolute

D) Fee simple absolute

49

A quiet-title action is defined as a
A) quitclaim deed.
B) foreclosure by court.
C) result of a "dummy" transaction.
D) procedure through court action to remove cloud on title.

D) procedure through court action to remove cloud on title.

50

A recorded notice of lis pendens
A) can be filed on any type of lawsuit.
B) can be removed from the records only by an order of the court.
C) does not directly affect the title to property of a person not directly a party to the court action.
D) would make it difficult to convey title.

D) would make it difficult to convey title.
A notice of lis pendens is a notice recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation, giving constructive notice to the world and thus preserving rights pending litigation. Property identified in a lis pendens would be difficult to sell. Although the general rule is that a person who is not a party to a court action is not affected by any judgment, that is not the case with a lis pendens: a buyer of a property with a lis pendens could lose title depending on the results of the lawsuit. A lis pendens is applicable only to lawsuits affecting the title or possession of real property. A notice of withdrawal of pendency of an action may be recorded by the person who recorded the lis pendens.

51

A fee simple estate, held in severalty, is real property in which the tenancy is
A) defeasible.
B) simple and absolute.
C) sole ownership.
D) held in common with others.

C) sole ownership.
An interest held in severalty is one that has been severed from all others and is held all alone. An ownership in severalty is a sole ownership. A fee simple estate can be either absolute or defeasible; therefore, these choices are incorrect answers.

52

Personal property presents certain problems to a broker. It becomes difficult to ascertain its ownership because it can
A) be alienated.
B) be hypothecated.
C) become real property.
D) do all of these.

D) do all of these.
When personal property (movable) becomes affixed to land it becomes real property (for example, fence posts when installed). Personal property may be conveyed (alienated) using a bill of sale, or hypothecated (pledged) as security for a loan.

53

A specified charge against real property that is used as security is defined as
A) a lien.
B) an easement.
C) subdivision restrictions.
D) zoning and planning.

A) a lien.

54

"A charge imposed upon real property as security for a specific act" is a definition of
A) lien.
B) easement.
C) restrictive covenant.
D) encumbrance.

A) lien.

55

All of these are characteristics of a fee simple estate EXCEPT that it is
A) freely transferable.
B) of indefinite duration.
C) free of all encumbrances.
D) freely inheritable.

C) free of all encumbrances.

56

Which is a correct statement in respect to encumbrances on real property?
A) It is common practice for a buyer to accept a deed to encumbered property.
B) Title companies will not insure encumbered property.
C) Encumbrances are liens but not all liens are encumbrances.
D) A specific lien is always a voluntary lien.

A) It is common practice for a buyer to accept a deed to encumbered property.
Buyers accept title with some encumbrances, such as tax liens and public or private restrictions. Therefore all title insurance companies insure encumbered titles. All liens are encumbrances, but not all encumbrances are liens. Some specific liens are involuntary, such as property taxes.

57

Real property taxes on a condominium
A) do not include the value of common areas in assessment.
B) are billed to the entire project and prorated by the project manager.
C) are billed to the individual unit owners.
D) are a lien on the individual unit owner, but not on the individual unit.

C) are billed to the individual unit owners.

58

A "title plant" is
A) a collection of instruments affecting real estate ownership that is kept in the county recorder's office.
B) a false document found in title records that is intended to give wrong information.
C) none of these.
D) the ownership and lien records of property maintained by a title company.

D) the ownership and lien records of property maintained by a title company.
A title plant is a collection of records in the title company's office. These records are developed from information recorded at the county recorder's office.

59

Which of these are NOT liens?
A) Judgments
B) Private restrictions
C) Trust deeds
D) Taxes

B) Private restrictions

60

A money judgment given by a court is effective to create a lien
A) in the county where the judgment is obtained.
B) in the entire state by filing with the clerk of the court.
C) if recorded in the county where the defendant's property is located.
D) anywhere in the United States.

C) if recorded in the county where the defendant's property is located.