Unit 3: Encumbrances and Transfer of Ownership (Quiz)

Which of the following is the best definition of encumbrance?

Anything that affects or limits the fee simple title to or value property. This is DRE's definition of an encumbrance.

To be binding on a buyer and a seller, a deed to transfer real property must be:

Delivered and accepted. Delivery and acceptance are required elements of a valid deed. The deed does not have to be acknowledged or recorded. [Acquisition & Conveyance of Real Estate]

The owner of an apartment building does not declare the income from the rental units. The IRS filed a government tax lien, which could be a:

General Lien. Income tax liens, court judgements, and California Franchise Tax liens are general liens and affect all of the property of the owner in the county where recorded. (encumbrances)

A recorded abstract of judgment is classified as a(n)________lien.

Involuntary. A recorded abstract of judgment creates an involuntary general lien on all property of the debtor that is located in the county where the judgment was recorded.

The personal, revocable, unassignable permission to use the property of another without a possessor interest in it is called a(n):

License. The statement of the question is a good definition of a license. (encumbrances)

A grant deed is considered executed when it is:

Signed by the grantor. One of the requirements for a valid deed is that the deed must be executed (signed) by the grantor [Acquisition & Conveyance of Real Estate]

Effective delivery of a deed depends on:

The intention of the grantor. The grantor must have the intention, during his or her lifetime, that the deed is delivered and title is transferred. [Acquisition & Conveyance of Real Estate]

Alienation of title to real property most nearly means to:

Convey or transfer title and possession. The terms alienation, convey, and transfer are used interchangeably when transferring ownership of property from one person to another. [Acquisition & Conveyance of Real Estate]

Which of the following actions is a quiet title action?

Court action to remove a could on title. A lawsuit to establish or settle title to real property is called a quiet title action or an action to quiet title. [Acquisition & Conveyance of Real Estate]

Roger, who owns a ranch, gave Sam who owns no property, a non revocable right to cross his ranch to fish in the stream. Sam has a(n):

Easement in gross. An easement in gross is a personal easement that is not attached to the land, and cannot be revoked. Sam does not have a license because the right is irrevocable. It is not an easement appurtenant because Sam owns no land and it is not an easement by prescription because Roger gave the easement in gross to Sam.

The form of encumbrance that makes specific property the security for the payment of a debt or discharge of an obligation is called a:

Lien. A lien creates an obligation on a. specific property.

Dana sold a property to Kim, who did not record the deed but did occupy the premises. Dana then sold the same property to Lee, who did not inspect the property but did record the deed. After the second sale, who would have legal title to the property?

The title would remain with Kim. Possession is considered constructive notice, just like recording. If a deed is not recorded, but the buyer moves in, that sale has priority over any later recorded deeds. [Acquisition & Conveyance of Real Estate]

Private restrictions on land can be created by deed:

Zoning. Zoning ordinances are public, not private restrictions. Private restrictions can be created by CC&Rs, deeds, leases and other written agreements.

Recording a lis pendens:

clouds the title and affects marketability. Recording a lis pendens creates a cloud on title and warns parties that they could be involved in a lawsuit if the purchase, which could affect marketability.

An owner of a parcel of real property gave his neighbor a deed conveying an easement for ingress and egress. The easement was not specifically located in the deed. Under the circumstances, the neighbor's right to use the easement is:

enforceable because the location of the easement does not need to be specified. Ingress and egress mean to enter and to exit. An easement may be created by deed or written agreement, which is express grant. An unlocated easement is valid. [Acquisition & Conveyance of Real Estate]