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61

A joint tenancy can be created by deeds conveying undivided interests by
A) transfer from joint tenants deeding their interests to themselves and others as joint tenants.
B) all of these.
C) transfer from a wife deeding her separate property to herself and husband as joint tenants.
D) transfer from tenants in common deeding to themselves as joint tenants.

B) all of these.

62

The Pacific and Great Western Telephone Company has an easement on a property being sold by Broker Root, but is not mentioned in the deed. The easement is a(n)
A) general lien.
B) specific lien.
C) attachment.
D) encumbrance.

D) encumbrance.
Utility company easements are considered encumbrances to property. Since they restrict the use of the property and have nothing to do with money, they are not a liens.

63

An easement is a(n)
A) specific lien on real property.
B) general lien on real property.
C) encumbrance on real property.
D) equitable restriction on real property.

C) encumbrance on real property.
An easement is an encumbrance, but not a lien or a restriction. Liens and restrictions are other types of encumbrances.

64

Which expense on a personal residence may be deducted from ordinary income for tax purposes?
A) Depreciation
B) Wear and tear
C) Property taxes and mortgage interest
D) General upkeep

C) Property taxes and mortgage interest
For income tax purposes, property taxes and mortgage interest on a personal residence are deductible from ordinary income. Depreciation, upkeep, and wear and tear are not allowable deductions on a personal residence.

65

Percolation refers to the
A) ability of a buyer to qualify for a loan.
B) depth of the foundation.
C) size of the water tank.
D) ability of the soil to absorb water.

D) ability of the soil to absorb water.\Percolation is the filtering process that occurs when water seeps through the ground. Water will percolate easily through a porous soil.

66

Which is a freehold estate?
A) Estate at will
B) Estate in fee
C) Estate at sufferance
D) Estate for years

B) Estate in fee
Freehold estates are either (1) fee simple estates or (2) life estates. The wrong answer choices here are all less-than-freehold estates: (1) estates for years; (2) periodic tenancies; (3) estates at will; and (4) estates at sufferance.

67

Involuntary alienation of an estate means
A) ownership of estates may be transferred by operation of law.
B) no one can be compelled to transfer title without giving consent.
C) the estate cannot be transferred without the consent of the owner.
D) aliens are forbidden to own estates in fee simple in California.

A) ownership of estates may be transferred by operation of law.

68

With respect to easements appurtenant, which statement is correct?
A) An easement always gives the rights of ingress and egress.
B) If the grantor conveys title to property, the easement passes automatically with the land.
C) The dominant tenement is the land burdened and benefited by the easement.
D) All encumbrances are liens but all liens are not encumbrances.

B) If the grantor conveys title to property, the easement passes automatically with the land.
Easements pass automatically upon transfer of the dominant tenement. The first statement is incorrect, as the dominant tenement is benefited, not burdened, by the easement. The second statement is incorrect, as an easement can include, besides rights-of-way, the right of receiving air, light, or heat; the right of using a wall as a party wall; or the right of flooding land, among other things. The third statement is incorrect, as an easement is an encumbrance but not a lien.

69

The lien of a recorded deed of trust is removed from the records
A) by posting of a surety bond.
B) when final payment has been made by the trustor.
C) by recordation of a grant deed.
D) when a reconveyance deed is recorded.

D) when a reconveyance deed is recorded.

70

The Subdivision Map Act provides primary responsibility for the physical aspects of the subdivision to the
A) State Department of Public Health.
B) real estate commissioner.
C) governing bodies of cities and counties.
D) state land commissioner.

C) governing bodies of cities and counties.

71

Which lien would most likely have had priority?
A) A trust deed executed March 27, 1998 and recorded March 29, 2004
B) A trust deed executed and recorded March 28, 2004
C) A mechanic's lien resulting from work started March 27, 2004
D) A public improvement assessment created April 15, 2004

D) A public improvement assessment created April 15, 2004
Assessment liens and real estate taxes will take priority over any other type of lien. This is true even though the assessment liens may be created subsequent to a recorded lien.

72

What is a difference between a mechanic's lien and a judgment lien?
A) Mechanics' liens may take priority before the recording date.
B) Judgment liens are involuntary liens.
C) Mechanics' liens are created by statute.
D) Judgment liens are not effective until recorded.

C) Mechanics' liens are created by statute.
Whereas mechanic's liens are created by statute, judgment liens are created by court decisions. Both may take priority before the recording date. Neither is effective as a lien until recorded. Both are involuntary liens.

73

Under the 1911 Street Improvement Act, funds may be raised by the local government, benefiting a subdivider, for all these purposes EXCEPT
A) payment for streets, walks, and curbs.
B) payment for sewers and water mains.
C) purchase of land for development.
D) payment for a drainage system.

C) purchase of land for development.

74

State-enabling legislation gives cities and counties various controls over real property. The enabling legislation gives to cities and counties all but
A) local planning and zoning ordinances.
B) lien and attachment laws.
C) subdivision and land-use regulations.
D) rent control and city codes.

B) lien and attachment laws.
The lien and attachment laws are created by the legislative bodies of the state. A state-enabling act gives legislative powers to local governing authorities, such as city councils and county boards of supervisors, to enact local ordinances.

75

What is always considered real property?
A) Grapes on vines sold under contract
B) Stock in a mutual water company
C) Cultivated crops sold but not yet harvested
D) Extracted minerals

B) Stock in a mutual water company
Real property consists of (1) land, (2) things affixed to the land, (3) appurtenances, and (4) that which is immovable by law. Two examples of appurtenances are (1) easements appurtenant and (2) stock in a mutual water company. According to the Civil Code, cultivated crops would be personal property if already sold, mortgaged, or growing on leased land (emblements).

76

All of these statements are true regarding an appurtenant easement EXCEPT
A) the easement would run with the land.
B) there must be at least two tracts of land under separate ownership.
C) the dominant tenement would benefit and the servient tenement would be burdened.
D) the dominant tenement must abut the servient tenement at the border.

D) the dominant tenement must abut the servient tenement at the border.
The dominant tenement may have the right to cross over three or four lots in one tract and not all of the servient tenements would be immediately adjacent (contiguous) to the dominant tenement.

77

In a subdivision, what is considered an "offsite" improvement?
A) Septic tank
B) Barn
C) Streets and curbs
D) Private well

C) Streets and curbs

78

A deed to an unlocated easement is
A) void.
B) void for lack of certainty.
C) valid.
D) invalid.

C) valid.
A deed conveying the fee title to an indefinite parcel of land would be void because of uncertainty of description, but a deed to an unlocated easement is valid because the exact location could be determined later. Unlocated means not visually apparent.

79

What does NOT affect the physical nature or use of real property?
A) Conditions that benefit the property
B) Covenants
C) A specific lien
D) Restrictions

C) A specific lien
A lien is a charge on property for the payment of a debt or obligation, and does not affect the physical nature or use of the property. Conditions, covenants, and restrictions (often called CC&Rs) all provide for or limit the use of real property.

80

The S ½ of the NW ¼ of the NE ¼ of Section 11 was listed for sale at $350 per acre with the broker to get a 10% commission. The broker brought in an offer of $6,100 for the property. The owner said he would accept it if the buyer would pay the broker's commission based on 10% of the offered amount. If the buyer were to agree, the difference between the original price and the amount as paid by the buyer would be
A) $670.
B) $295.
C) $900.
D) $290.

D) $290.
(1) Determine Listing Price
$350/Acre × 20 Acres* = $7,000
*S ½ of NW ¼ of the NE ¼ of Section 11
20 40 160 640
(2) Determine Buyer's Payment
$6,100 offer + **$610 Commission = 6,710
**10% × $6,100 Offer
(3) Determine difference
$7,000 (List Price) Less $6,710 (Accepted Price) = $ 290

81

An easement may be terminated by all of these EXCEPT
A) revocation by the owner of the servient tenement.
B) destruction of the servient tenement.
C) nonuse of a prescriptive easement for five years.
D) written release by the owner of the dominant tenement.

A) revocation by the owner of the servient tenement.
The owner of the servient tenement cannot revoke the easement. The owner of the dominant tenement, the parcel receiving the benefit, may terminate by giving a written release of the easement. Destruction of the servient tenement, by its very nature, would terminate the easement on such a parcel. An easement gained through prescription can be lost through nonuse for five years.

82

Which are considered artificial monuments?
A) Trees and fences
B) Fences and rock
C) Canals and streets
D) Streets and trees

C) Canals and streets
Both canals and streets are humanmade and would be considered artificial monuments. Trees and rocks, although they can be moved by humans, normally are considered natural marking points.

83

George Nordling subdivided a large section of a hillside location. In the deeds to individual lots, he placed a restriction requiring a 15,000-square-feet minimum lot size. Subsequently, the local authorities succeeded in reducing the requirements of the zoning laws to a minimum requirement of a 10,000-square-feet minimum lot size. Which requirement for minimum lot size takes precedence?
A) Precedence would require arbitration by local planning commission.
B) The subdivider would be compelled to amend his restriction to conform to zoning laws.
C) Zoning laws take precedence because they are based on police power.
D) The original deed restriction takes precedence.

D) The original deed restriction takes precedence.
Where there is a conflict between deed restrictions and zoning restrictions, the more stringent of the two would apply.

84

Which criterion has the LEAST effect in determining whether an item is personal property?
A) Intention of the parties
B) Manner of annexation
C) Time of annexation
D) Relationship between the parties

C) Time of annexation
"Time of annexation" is not a test of whether an item is a fixture of real property or personal property. The acronym MARIA lists which tests are:
Method of attachment;
Adaptability;
Relationship between the parties;
Intention of the parties;
Agreement of the parties.

85

In ridding an area of nonconforming uses, rezoning ordinances may require that certain conditions be met. These would include all of these EXCEPT
A) allowing a reasonable time (amortized period) within which the abuses may be eliminated.
B) prohibition of rebuilding.
C) retroactive zoning ordinances.
D) prohibition of expansion.

C) retroactive zoning ordinances.
n most cases, laws (including zoning ordinances) cannot be enacted which are retroactive. In ridding an area of nonconforming uses of the land, the courts and zoning authorities, in order to satisfy the policy of gradual and eventual elimination of such nonconforming uses, employ the methods of prohibition of rebuilding, prohibition of expansion, and allowing a reasonable time (amortization period) within which the abuses may be eliminated.

86

Less-than-freehold estates consist of estates owned by
A) grantees of life estates.
B) beneficiaries of trust deeds.
C) lessees.
D) holders of easements.

C) lessees.

87

Mr. Green owned stock in a mutual water company. This interest was appurtenant to the land. Green sold his property to Smith. Under these circumstances,
A) none of these are true.
B) a separate contract must be written for the purchase of the stock.
C) nothing additional would have to be done regarding this purchase because stock in a mutual water company is an appurtenance to the land.
D) property cannot be purchased in California without water rights.

C) nothing additional would have to be done regarding this purchase because stock in a mutual water company is an appurtenance to the land.
Stock in a mutual water company is a real property interest that is appurtenant to the land and runs with land. When the ownership of the land is transferred, the ownership interest in the mutual water company is also transferred without any further documentation. This is not to be confused with a stock certificate one would buy and sell on the open market.

88

Under a tenancy in common relationship,
A) each has equal half interest.
B) tenants have same rights of survivorship as in joint tenancy.
C) if one leases her half, she must pay rent to the other.
D) there must be a unity of possession.

D) there must be a unity of possession.
Under a tenancy in common relationship, each tenant has the equal right of possession of the entire property and cannot be restricted to any specific portion of it.

89

Which statement is correct with regard to an estate?
A) An estate cannot be created by a lease.
B) A life estate is a less-than-freehold estate.
C) Title to an estate must be transferred by deed.
D) More than one estate can exist in the same property.

D) More than one estate can exist in the same property.
More than one estate can exist in the same property; for example, a lessor has a leased fee estate and a lessee has a less-than-freehold estate. Title can be transferred by patents, wills, accession, or involuntary alienation. A life estate is a form of ownership. A less-than-freehold estate is created by a lease.

90

What would be included in local building codes?
A) Protecting the health and safety of the city
B) All of these
C) The establishment of building materials that may be used and the costs of materials
D) Architectural design of buildings as well as size and height

B) All of these