Real Estate Principles Edition 10, Chapter 5 Quiz

A promise by property owner NOT to do something is called a

Convenant. (A covenant is a promise to do something or to refrain from doing something. Covenants are often used in leases (ex: a tenant might promise to use the property only for a specified purpose). The remedy available when a convenant must be enforced will be an injunction or money damages. pg 116)

Which of the following could NOT file a mechanic's lien?

Home improvement lender. (A mechanic is anyone who performs work on real property or an improvement to real property of furnishes the material used in the work. Persons entitled to a mechanic's lien include all those who work or supply materials at the request of the property owner, or any contractor, subcontractor, architect, builder, or other person placed in charge of all or [art of a project. pg 105)

A notice of nonresponsibility would protect an owner from

a mechanic's lien. (The owner of real estate has protection if unauthorized work is begun on the property by posting a notice of nonresponsibility in a conspicuous place on the land and recording a copy of the notice with the county recorder within ten days of learning of the construction, repair, or other work. The notice must include a property description; the name, address, and property interest of the owner or other person giving notice; and a brief statement that the person giving notice is not responsible for any claims arising from the work.page 107)

The right of an owner of a parcel of land to travel over an adjoining parcel is known as

an easement. (The right of use for a particular purpose or travel over someone else's land is called an easement. An easement usually is the right o owner of parcel of land to travel over an adjoining parcel. pf 110)

When a landowner has the right to travel over the property of an adjoining landowner, the property that benefits from the easements right is called the

dominant domain. (The land benefited by the easement is the dominant tenement. The land over which the easement runs is called the servient tenement. pg 110).

An improvement that extends onto an adjacent property without permission is an

encroachment. (An encroachment occurs when part of an improvement extends over the boundary line between properties without permission. Fences and buildings are typical forms of encroachment. Even the roof eave of a building can be an encroachment if it extends into the airspace of a neighboring lot. page 119)

Liens are classified as

encumbrances. (An encumbrance is anything that has an effect on the fee simple title to real estate or the use of the property. A lien is an encumbrance that makes property security for the payment of a debt or discharge of an obligation. pg 104-105)

A mechanic's lien requires

preliminary notice. (if a mechanic's lien will be filed, preliminary notice of intent to file the lien must be hand-delivered or sent by first-class registered or certified mail to the property owner, general contractor (if any), ad construction lender if any. pg. 106-107

A condition that would prohibit a property owner from transferring title to the property is known as a

restraint on alienation. (A restraint on alienation is any condition that prohibits a property owner from transferring title to the property and is not legally recognized. An example would be a condition that the grantor's consent be obtained before the grantee could sell the property. Such a restraint is void- totally ineffective- and the grantee holds the property free of the restraint. pg 116)

A prohibition in a deed against a property use is known as

restriction. (Any form of restriction is a limitation on the use of land. The most common private restrictions are covenants, conditions, and restrictions found in a deed. Subdivision developers frequently make use of deed restrictions to ensure that the uniform appearance of homes in a subdivision is maintained. pg 117)