California Real Estate Principles - Chapter 5

Security Instrument

A contract whereby a debtor agrees to use property as security or collateral for the repayment of debt.

Lien

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation (ex: judgments, taxes, mortgages, deeds of trust, etc..). Using property as collateral.

D. Specific Lien

A lien that attaches to one specific property only is known as a...? A.General Lien B. Involuntary Lien C.Voluntary Lien D. Specific Lien

Easement in Gross

A right of use in the land of another without the requirement that the holder of the right own adjoining land.

B. Seller

A vendor is also known as the...? A.Customer B.Seller C.Buyer D.Bank

C.Buyer

The vendee refers to the...? A.Bank B.Seller C.Buyer D.Customer

Vendor

A seller.

A.Mechanic's Lien

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as...? A.Mechanic's Lien B.Voluntary Lien C.Judgment Lien D. General Lien

A. Encumbrance

Anything which affects or limits the fee simple title to, or value of property, is known as a...? A. Encumbrance B.Deed C.Judgment D.Lien

Debt

That which is due from one person or another; obligation, liability.

A. (True)

The effective date of a mechanic's lien is the date the work began or the date the materials were provided...? A. (True) B. (False)

D. Hypothecate

To pledge a thing as security without the necessity of giving up possession of it is known as...? A. Secure B. Deed C. Foreclosure D. Hypothecate

Mortgage

A contract whereby a mortgagor agrees to use real property as security for the repayment of debt.

C.Deed in Lieu of Foreclosure

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as...? A.Deed of Trust B.Relinquish of Deed C.Deed in Lieu of Foreclosure D.Forfeit of Deed

Deed in Lieu of Foreclosure

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.

B. Lien

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation is known as a...? A. Deed B. Lien C. Hypothecation D. Security Instrument

B. Blanket Encumbrance

A general lien is also called a...? A. Easement B. Blanket Encumbrance C. Mechanic's Lien D. Legal Encumbrance

Easement by Voluntary Grant

A grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress.

Specific Lien

A lien that attaches to one specific property only.

B. Easement Appurtenance

A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement is known as a/an...? A. Easement by Voluntary Grant B. Easement Appurtenance C. Easement in Gross D. Easement by Prescription

Real Property Sales Contract

An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract.

A. (True)

Encumbrances can be monetary or non-monetary...? A (True) B (False)

A. Benefit

Equitable title equals...? A. Benefit B. Ownership C. Control D. Debt

Easement by Necessity

Exists when a landowner has no access to roads and is landlocked.

Promissory Note

Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its payment. The evidence of the debt.

Easement by Prescription

Obtained by use of the land of another for the legally prescribed length of time.

Trustor

One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.

B. Trustee

One who holds property in trust for another to secure the performance of an obligation is known as a...? A. Escrow B. Trustee C. Owner D. Trustor

Trustee

One who holds property in trust for another to secure the performance of an obligation. Third party under a deed of trust.

D. Trustee

The following is a third party under a deed of trust...? A. Escrow B. Trustor C. Attorney D. Trustee

Hypothecate

To pledge a thing as security without the necessity of giving up possession of it. when a borrower keeps possession and use of the property while using it as collateral. Not always, a prime example is a pawn shop where you give up use of personal property until you repay debt.

Involuntary Lien

A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal income tax liens, etc..).

B. (False)

A lien is an example of a non-monetary encumbrance...? A. (True) B. (False)

A. General Lien

A lien on all the property of a debtor is known as a...? A. General Lien B. Specific Lien C. Mechanic's Lien D. Voluntary Lien

A. Easement

The right to use the property of another generally for ingress and egress is known as a/an...? A. Easement B. Lien C. Shared Property D. Joint Tenancy

Mechanic's Lien

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

C. Easement in Gross

A right of use in the land of another without the requirement that the holder of the right own adjoining land is known as...? A. Easement by Prescription B. Easement by Voluntary Grant C. Easement in Gross D. Easement Appurtenance

Easement

A right, privilege or interest limited to a specific purpose which one party has in the land of another.

C. Voluntary Lien

Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is known as a...? A. Encumbrance B. Involuntary Lien C. Voluntary Lien D. Judgment

D. Adverse Possession

This is a form of involuntary alienation of title...? A. Easement by Necessity B. Easement Appurtenance C. Easement in Gross D. Adverse Possession

B. Easement by Prescription

This is obtained by use of the land of another for the legally prescribed length of time...? A. Easement by Necessity B. Easement by Prescription C. Easement in Gross D. Easement Appurtenance

Voluntary Lien

Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.

A. Easement by Necessity

This exists when a landowner has no access to roads and is landlocked...? A. Easement by Necessity B. Easement in Gross C. Easement by Prescription D. Easement by Voluntary Grant

A. (True)

An easement in gross is also known as a utility easement...? A. (True) B. (False)

Judgment Lien

A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.

C. Involuntary Lien

A mechanic's lien is an example of a/an...? A. Judgment Lien B. Voluntary Lien C. Involuntary Lien D. General Lien

Adverse Possession

A method of acquiring title to real property by conforming to statutory requirements; a form of involuntary alienation of title.

Vendee

A purchaser, buyer.

Easement Appurtenance

A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.

Package Loan

A type of loan used in home financing covering real property, improvements, and movable equipment/appliances.

Servient Tenement

Land encumbered by an easement.

D. Control

Legal title equals...? A. Debt B. Ownership C. Benefit D. Control

A. Dominant Tenement

The land benefiting from an easement appurtenant is referred to as the...? A. Dominant Tenement B. Vendor C. Servient Tenement D. Vendee

D. Servient Tenement

The land encumbered by an easement is referred to as the...? A. Vendee B. Dominant Tenement C. Vendor D. Servient Tenement

C. Easement by Voluntary Grant

This occurs when a grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress...? A. Easement in Gross B. Adverse Possession C. Easement by Voluntary Grant D. Easement by Prescription

Dominant Tenement

Land benefiting from an easement appurtenant.

A.Real Property Sales Contract

An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract is known as...? A.Real Property Sales Contract B.Conveyance C.Transfer of Title D. Deed in Lieu of Foreclosure

Foreclosure

Procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms.

Encumbrance

Any charge, claim, right, burden (otherwise called a cloud on title), and/or interest in real property other than the owners, including but not limited to, any restriction upon the title to real property, affecting and/or limiting any interests or its USE. TWO TYPES: -Monetary encumbrance- also known as lien -Non-Monetary encumbrance- Not related to debt or the repayment of debt but rather the physical use of the property.

General Lien

A lien on all the property of a debtor.