Chapter 1
There are _________ baseline and meridian systems in California.
3 (The three baseline and meridian systems in California are Humboldt, Mt. Diablo and San Bernardino.)
Which of these is a direct building cost?
Lumber. (Direct building costs are the construction costs incurred for labor and materials. All other expenses are indirect.)
Which of the following action does not constitute constructive eviction under a lease?
The owner evicts the tenant after proper service of a Three-day Notice to Quit. (A constructive eviction occurs when the landlord substantially interferes with the tenant's use and enjoyment of the premises during the term of the tenancy, and the tenant vacates the premises due to the interference.)
Real estate investments may include:
debt and equity funds. (Answer choice C is correct since debt and equity funds are forms of real estate investments. Answer choices A and B may represent the benefits of real estate investments, but are not real estate investments themselves.)
The property which benefits from an easement is referred to as the:
dominant tenement. (A dominant tenement benefits from an easement; a servient tenement suffers from an easement.)
An elevation sheet used in a subdivision plan shows:
drawings of the front and side views of the finished homes. (An elevation sheet is a drawing that depicts the appearance of the front and side of a home to be built. It is used in advertisements, brochures and other point of sale renderings.)
"Potable" means:
drinkable water. (Potable water is suitable for drinking.)
A(n) ________ belongs to an individual and is their personal right.
easement in gross. (Easements generally run with the land and are real property. The only exception is an easement in gross, which is usually held by an individual, typically a public utility company. Encroachment is a form of trespass.)
A sewer district's right to run pipes through a homeowner's property is an example of a(n):
easement in gross. (Utility easements are classified as easements in gross. An easement in gross is an easement which belongs to an individual and is not appurtenant to or transferred with a property.)
An acquired right to use land that is less than an estate is known as a(n):
easement. (An easement is the specific right to use land, but is not an estate. Alternatively, a leasehold is an estate. A remainder in interest will become an estate when realized. Riparian rights do not include the use of land but the water flowing over or under land, and thus are not applicable to this question.)
In a general plan, what is the method of enforcement used by the planning commission?
Zoning. (Enforcement of the general plan by the planning commission is accomplished through zoning laws.)
Before a new home can be occupied:
a certificate of occupancy must be issued by the local building department. (A certificate of occupancy issued by the building department is proof of habitability.)
Appurtenant rights include the right of ingress and ___________ across adjoining properties.
egress (Access rights include both egress and ingress (entering and exiting), such as with a driveway easement.)
If a person dies without a will and with no identifiable heirs, the state acquires title to their real property through:
escheat. (Escheat is a state action to revert property to government ownership when an owner dies with no will or heirs.)
Ownership rights and interests in real estate are called:
estates or fees. Ownership might be a fee title or a life estate. Both are examples of a freehold estate.)
Information about the thickness and material used for the foundation footing of a propertyare contained in:
foundation plans. (The foundation plans speak to questions related to the building foundation in the same manner that a framing plan illustrates the framing of a property.)
If a lien covers all properties of the debtor in that county where it is recorded, it is known as a:
general lien. (As the lien attaches to multiple properties owned by the debtor, versus a specific property, it is referred to as a general lien.)
An easement over real property can be terminated by:
a release signed by the dominant tenement. (An easement is terminated on the release of the dominant tenement (the party that benefits from the easement).)
What is a "gore"?
a. A triangular shaped parcel of land. (A "gore" is a triangular piece of land. This is a question that requires the memorization of an unusual term to earn the point.)
Which of the following is not required for obtaining an easement by prescription?
a. Payment of taxes and assessments for a period of five years. b. A confrontation with the owner. c. Open and notorious use which is continuous for five years. d. Both a. and b. (This is a NOT question. Payment of taxes and assessments are required only in the instance of adverse possession, but are not required for obtaining an easement by prescription. Confronting the owner is never required of either adverse possession or an easement by prescription. Open and notorious use of the easement for five years is all that is required to establish a prescriptive easement.)
An easement may be created for what length of time?
a. Perpetuity. b. An agreed-to period of time. c. The lifetime of a person. d. Any of the above. (There is no limit to the length of time granted for an easement. An easement can be limited to an agreed-to period of time, or exist for perpetuity.)
Which of the following is an example of a subdivision?
a. Six row houses. (A subdivision consists of five or more units, with the exception of timeshares which are twelve or more.)
If a strip of land is washed away by flood, this action is known as:
avulsion. (Answer choices A, B and C are all terms related to riparian rights. Refer to the glossary to become familiar with each.)
The sudden physical loss of land due to a flood is an example of:
avulsion. (Avulsion is the sudden loss (or addition) of land through natural forces. Accretion is the gradual addition to property through the accumulation of layers of soil. Reliction is the gaining of land area.)
All of the following provide constructive notice, except:
b. knowledge of an unrecorded deed to a stranger. (This is an EXCEPT question. Knowledge of an unrecorded deed to a stranger does not constitute constructive notice. Constructive notice is either a recorded document or anything that is clearly observable by inspecting the property, including the existence of a physical feature such as telephone poles (as may be used to indicate the general location of property lines, for example) or a stranger in possession.)
Mineral and water rights are included in the __________ which are transferred with the sale of a property.
bundle of rights. Mineral and water rights are transferred with the sale of a property.)
The general purpose of local building codes is to assure:
compliance with minimum construction requirements. (Local building codes are not concerned with labor, regulation or cost effectiveness.)
Chuck wills the family estate to Matt with the provision that title will transfer when he marries. This is an example of a(n):
condition precedent. (A condition precedent is a provision in an agreement calling for the occurrence of an event or performance of an act before a person is required to further perform or an act is to occur. In the context of this question, the condition precedent is that Matt marries before title to the family estate will transfer to him. A condition subsequent is the opposite, such as a reversionary transfer after a divorce occurs.)
A person who owns an undivided interest in a parcel of real property together with a separate interest in communal space has an interest in a(n):
condominium project. (Condominium ownership combines an undivided interest in the actual condo unit, plus a proportionate interest in the common areas.)
A(n) _____________ is a voluntary conveyance of the right to keep land in its natural or historic condition.
conservation easement. (The correct answer B. conservation easement should be clear based on the question's reference to keeping land in its "natural or historic condition." The remaining answer choices are other types of easements.)
A turnkey project is:
construction of a property from groundbreaking to completion. (The term "turnkey" implies a property is complete and ready for immediate occupancy, requiring nothing more of the property to fulfill its intended purpose.)
A property owner dies testate, leaving a spouse and three children. The owner's estate is distributed:
in accordance with their will. (To die testate is to die with a will. The terms of the will dictate how the inheritance is divided.)
A property owner has been doing car repairs on their driveway in violation of the conditions, covenants and restrictions (CC&Rs) of their subdivision. The homeowners' association (HOA) files a lawsuit and receives a court order requiring the owner to stop. The court order is called a(n):
injunction. (A court ordered injunction requires someone to cease and desist an inappropriate activity. Both choices A. attachment lien and D. mechanic's lien are liens that state a specific amount of money, which is not being sought by the HOA in this scenario. Answer selection D. lis pendens is a recorded document to deliver constructive notice of a pending lawsuit.)
If a deed provides for an easement granting ingress and egress over a neighboring property but fails to locate the easement, the:
servient tenement holder can specify a particular area so long as it is reasonable. (The servient tenement (the owner of the neighboring property burdened by the easement) can define the location of the easement provided it is reasonable.)
Which of the following is regarded as real property?
. Riparian rights. (Riparian rights go with the land and are appurtenant to it.
Conrad wills the family estate to his first son Michael with the provision that if Michael were to divorce in the future, title will pass to Conrad's second son, Bret. This is an example of a(n):
. condition subsequent. (A future divorce is a condition subsequent. The two conditions - precedent and subsequent - refer to actions that alienate title. A condition precedent is how one gains title (unless and until completion of a specified act or event); a condition subsequent is how one loses title (the failure or non-performance of a condition).)
A roof on which all four sides slope to the eaves is classified as a
. hip roof. (A roof with four sides is called hip. A two-sided roof is gable.)
The right to use, enjoy and alienate real estate to the exclusion of all others most accurately describes:
. ownership. (To alienate is to transfer an interest in real estate from one person to another. Thus, while a tenancy, possessory right and an estate for years may grant the right to use and enjoy property, they do not grant the right to alienate real estate.)
How many square feet are in three acres of land?
130,680. An acre of land contains 43,560 square feet. Thus, three acres of land equals 130,680 square feet. The conversion of acreage to square feet is the most common type of math question on the state exam.)
The northeast 1/4 of a section contains:
160 acres. (There are 640 acres in a section. Divide this by four to find the area of a quarter section, 160 acres.)
Dale bought a home for $300,000. Since then, the property appreciates 10% each year. What is the value of Dale's property after three years?
399300. (The calculation requires adding 10% to the value after each year: $300,000 + 30,000 = $330,000 (yr.1); $330,000 + $33,000 = $363,000 (yr. 2); $363,000 + $36,300 = $399,300 (yr. 3).)
Which of the following is not an encumbrance?
A homestead. (This is a NOT question. A homestead declaration protects a portion of the owner's equity in the property from seizure from creditors. An encumbrance is something that reduces the property owner's rights or equity.)
Which of the following is an example of a freehold estate?
A life estate. (A life estate is an example of a freehold estate.)
Which of the following would be the least desirable reference point for a metes and bounds description?
A riverbank (A riverbank may shift over time.)
Appurtenances go with the land. Which of the following is not an appurtenance?
A trade fixture. (This is a NOT question. Trade fixtures belong to a commercial tenant and are to be removed at the end of their tenancy, and thus are not an appurtenance. Appurtenances run with the land and are transferred with it on its sale.)
Appurtenances go with the land. Which of the following is not an appurtenance?
A trade fixture. (This is another question phrased in the negative. Trade fixtures are personal property and do not go with the land.)
Accretion results in the acquisition of title to real estate by which of the following methods?
Acquisition through natural causes. (Accretion is the acquisition of property through natural causes such as a change in a watercourse. This terminology is related to riparian rights.)
Which of the following is not a true statement about easements?
An easement in gross is a right in another's land created for the benefit of adjacent land. (This is a NOT question. Answer selection B is not true since an easement in gross is not for the benefit of an adjacent property owner, but frequently for a utility company.)
A lender who finances 100% of a property without government guarantees depends on what to function as security for the loan?
Appreciation of the value of the property. (Lending 100% of the value of a property without government guarantees requires property appreciation to overcome the risk of loan default. Thus, this type of no down payment loan is highly uncommon.)
Which of the following is not a lien?
Conditions, covenants and restrictions (CC&Rs). (This is a NOT question. All liens have a specific dollar value. Of the answer choices, only A. conditions, covenants, and restrictions (CC&Rs) has no dollar value.)
What type of notice is given by recording a deed?
Constructive notice. (Constructive notice is a matter of recording a document or something that is visually obvious. Actual notice requires personal delivery by mail or in person.)
Which of the following normally installs conduits over the course of their professional practice?
Electricians. (As conduits house electrical wiring, electricians generally install conduits over the course of their professional practice.)
Which of these rights of ownership do individuals not have?
Eminent domain rights. (Eminent domain is the government power to seize property written into the U.S. constitution. Reliction refers to an increase in land bordering a body of water due to receding water.)
Peter sold his home to Matt. Matt didn't record the grant deed, but moved into the house. Peter then sold the same property to Isabella, who reviewed the county recorder's records but did not look at the house. Peter gave Isabella a deed, which she recorded. Which of the following is true concerning title to the property?
Matt maintains title. (Since Isabella failed to look at the property and determine whether it was occupied, Matt retains title. Constructive notice requires that the buyer (Isabella) look at the property as well as the county records.)
May a street address be used as a legal description on documents used in a real estate sale transaction?
No, a street address is not a legal description of the property. (A street address is not a legal description and thus cannot be used in lieu of a more specific legal description. A legal description of a property is either a lot, block and tract description based on a recorded subdivision map, or a metes and bounds description that states the measurement and angles of the perimeter of the property.)
Personal property may not:
None of the above. a. become real property. b. be hypothecated. c. be alienated. d. None of the above. (Beware of question construction phrased in the negative, "may not." Here, you need to identify the answer selection that does not correctly complete the question. As personal property may undergo any of the activities referenced in all of the answer selections, None of the above is correct.)
Which of the following zoning designations is suitable for land used as the site of multi- family residential developments?
R-4. (Residential use zoning is labeled with an R. Multiple units will have a number following the R other than 1, the precise number determined by each city or county.)
Insulation values are rated as "R". What does this represent?
Resistance to heat flow. (Insulation is designed to avoid the transfer of heat. The higher the insulation's R factor, the greater the resistance to heat loss.)
Blake sold his home to Frank but remained in possession and negotiated a two-year leaseback. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home?
Sam, because he recorded his deed. (Sam is the owner since he recorded the deed. Constructive notice can be either the recorded deed or possession. Since Blake retained possession, Sam had no way of knowing that Frank previously purchased the house. This makes Sam a bona fide buyer.)
The Real Estate Commissioner, under the Subdivided Lands Law, is initially concerned with which court:
Superior. (The Subdivided Lands Law is controlled by the California Bureau of Real Estate. Since this is a state entity, the process of elimination excludes the Small Claims, Federal Supreme and Appellate courts, leaving the Superior Court as initially handling real estate disputes.)
In the instance of condominium ownership, which of the following may be held in fee title?
a. The outside yard. b. The public hallways. c. The individual units. d. All of the above. (In a condominium complex, an individual owner owns their own condo as well as a proportional share of all common areas. They can own both in fee title.)
Appurtenant rights include the right of _________ across adjoining properties.
a. ingress. b. egress. c. Both a. and b. (Appurtenant rights include the ability to access property. The legal terminology for this is ingress and egress (enter and exit).)
Basic regulation of the housing and construction industries is performed by:
a. the State Housing Act. b. local building codes. c. the state Contractor's License Law. d. All the above. (All the above. Each entity plays a role in construction and housing standards.)
To establish title by adverse possession, an occupant must show all these except:
a. they have occupied the property in a way which constitutes no notice to the record owner. (This question is phrased in the negative. All other answer choices are conditions that need to be met to establish title by adverse possession. Tip: the answer choices in this question may provide the answer for later exam questions on this topic.) b. the payment of taxes for five years. c. open and notorious use. d. hostile use.
Real property that is acquired by a neighbor through natural processes such as erosion is an example of:
accretion. (Acquiring land through natural forces, such as the accumulation of sediment on a coastal property, is accretion. Answer choices A. and B. are types of legal ownership whereas D is a loss of land, generally resulting from a change in course of a body of water. Only accretion represents a gain of property.)
An unearned incremental increase in the value of real property does not result from:
added amenities to the property. (This is a NOT question. An unearned incremental increase does not come from any direct action by the owner, such as adding an amenity to the property. An unearned incremental increase is an increase in value that results from factors off the property and out of the owner's control.)
An easement may be acquired by prescription in a manner similar to acquisition of land by
adverse possession. (The answer selection that is most similar to acquisition of an easement by prescription is adverse possession as both involve the adverse use of a property. None of the other answer selections relate to this premise.)
The Energy Efficient Ratio (EER) rating concerns:
air conditioning and heating units. (The Energy Efficient Ratio (ERR) rating is listed on newer heating and air conditioning units. Superior ratings earn the product an energy star label.)
An encroachment is:
an improvement on real estate, such as a building, fence, driveway or tree, which extends onto a neighbor's real estate. (Encroachment is an example of trespass.)
When population growth causes real estate values to increase, this is classified as:
an unearned incremental increase. (Appreciation through population increase is considered an unearned incremental increase as it is obtained without any expenditure on the part of the owner. While answer selection B. economic advantage is potentially correct, it is not the answer selection which best addresses the question.)
A(n) _____________ belongs to and benefits an adjacent property and is said to run with the land as an interest the adjacent property holds in the burdened real estate.
appurtenant easement. (Appurtenant easements are owned by adjoining properties and are often for purposes of ingress and egress. An easement in gross is typically owned by a utility company. It has no specific location and is personal property. An encroachment is a trespass and will not run with the land as an interest in another property.)
A primary difference between real and personal property is that real property:
is immovable.
The Real Estate Commissioner rescinds their approval of a subdivision by:
issuing a desist and refrain order. (To stop a development, the Real Estate Commissioner files a desist and refrain order against the developer.)
The parallel wooden beams used to support ceiling loads and floors in home construction are called:
joists-are horizontal wooden beams which support floors and ceilings. Headers are above windows and doors. Studs are vertical elements. Rafters are diagonal beams reaching to the roof beam. This question provides a good opportunity to become familiar with framing terminology.)
The organization responsible for the enforcement of proper sewage and sanitation construction practices in a subdivision is the:
local health department. (Neither the Real Estate Commissioner nor the federal Department of Housing and Urban Development (HUD) have a direct concern with local sewage management. Further, there is no state sewage department. Thus, by elimination, that leaves only answer selection C. local health department.)
On a zoning map, "M" generally indicates:
manufacturing. (M = manufacturing, C = commercial, R = residential.)
The term "Realtor" denotes:
membership in a real estate trade organization.
A violation of a condition in a homeowners' association's (HOA's) conditions, covenants and restrictions (CC&Rs) is:
more severe than the violation of a covenant. (The violation of a condition in a homeowners' association's (HOA's) conditions, covenants and restrictions (CC&Rs) is considered more serious than a violation of a covenant. The violation of a condition may result in the loss of title whereas a covenant is simply a promise, the breaking of which will not result in the loss of title.)
Upon moving into the home he had just purchased, Lewis discovered his neighbor's garage encroached four feet over onto his property. lf a friendly settlement cannot be negotiated, Lewis may sue:
neighbor, since the encroachment is a trespass. (the neighbor, since the encroachment is a trespass. (The neighbor is the one who is trespassing and is the party the owner may sue.)
Wainscoting can be found:
on the lower three or four feet of an interior wall when finished differently from the rest of the wall. (Wainscoting is a traditional style of wall covering in which a chair rail divides the lower portion of the wall from the upper portion which is generally of a different material.)
The placement of a house upon the lot is referred to as its:
orientation. (The placement of a house on its lot is called its orientation. This is also used to describe a direction such as "oriented toward the southern exposure." Other than location, the alternative answer selections can be easily eliminated.)
The property taxes for a condominium unit are paid by the:
owner of the condominium. (In the condominium form of ownership, each individual unit is owned separately and the taxes are paid by the individual owner.)
Individual ownership of a lot and common ownership of other areas in the development constitutes a:
planned unit development (PUD). (A planned unit development (PUD) has common areas in addition to individual ownership of a house.)
Placing two or more contiguous units under common ownership for the purpose of increasing the value is known as:
plottage. (The act of combining parcels of real estate is referred to as assemblage. The increase of value is referred to as plottage.)
A residence that has 6" x 6" posts set four feet apart instead of 2" x 4" studs is an example of _____________ construction.
post and beam (Post and beam construction is the correct answer choice. Note the use of the word "posts" in the question as it matches the correct answer choice.)
Condominium ownership is least applicable to:
properties built prior to 1978. (Condominium is a form of ownership, not a building style or purpose. It has no relation to when a property was built. A condominium is an estate in real property in which an owner holds an undivided interest in common in a portion of real property, coupled with a separate interest in their individual space. One can create condominiums in industrial and commercial buildings, as well as residential properties.)
Private restrictions on the use of land are best created by:
recording the restrictions with the county recorder, with reference made in the deed to each parcel. (Of the answer choices provided, the best way to create a private restriction on the use of land is by recording the restrictions with the county recorder. However, a private restriction may also be created through a developer's restrictions for a subdivision or through a written agreement.)
All of the following terminate an easement, except:
release by the owner of the servient tenement. (This is an EXCEPT question. The termination of an easement may occur for any of the reasons cited in the answer selections, except the release by the servient tenement. The servient tenement is the party burdened by the easement and they cannot unilaterally terminate the easement.)
Land created by a river or lake that recedes permanently belongs to the owner of the bank or shore through the process of:
reliction. (Reliction is the exposure of land that has been covered by water which occurs when the water recedes. Answer selections A. alluvium and C. appropriation also relate to water and water rights, but are different from the process described in the question. Answer selection D. escheat is an unrelated topic.)
Property is defined as:
rights or interests which a person has in a thing owned. (Property is broadly defined as rights or interest which a person has in a thing owned. Property may be classified as real or personal. Answer selections B and C are both false as trade fixtures are personal property and all other fixtures are real property.)
Property is best defined as:
rights or interests which a person has in the thing owned. (Both personal and real property are owned and convey to the owner certain rights and interests.)
An owner with riparian rights has rights relating to the use and ownership of water from which of the following sources:
rivers, streams and watercourses. (Riparian rights apply to all surface waters.)
Frank leased a property to Chester. Chester gave Mark an easement over the property. At the end of the lease term:
the easement may not extend beyond the term of Chester's lease. (If an easement is given by a lessee, it ends when the lease is terminated.)
A fee simple absolute estate is defined as:
the highest interest one can have in real property. (Fee title to real estate which occurs in a fee simple absolute estate is held in perpetuity and affords the owner full, absolute ownership of property free from any limitations or conditions. Thus, it is the highest interest in real property.)
If an appraiser finds the interior walls and the inside of the exterior walls have a similar temperature, this indicates:
the insulation is sufficient.
The word "tenancy" in real property law most nearly means:
the method or mode of holding interest to real property by the lessee or owner. As with the term "estate," both the owner's position as well as the lessee's may be described as a "tenancy.")
Upon moving into the home he had just purchased, Lewis discovered his neighbor's garage encroached four feet over onto his property. lf a friendly settlement cannot be negotiated,
the neighbor since the encroachment is a trespass. (Encroachment is a form of trespass. If a settlement cannot be reached between an owner and a neighbor who encroaches on their property, the owner is to sue the neighbor and allow the judicial system to resolve the matter. The escrow company and title company have no liability under normal conditions. The seller's agent is liable only if they knew or ought to have known the encroachment existed.)
A plot plan is drawn by an architect to show:
the placement of construction and related land improvements. (A plot plan shows where a building and other site improvements will be located. Alternatively, a plat map shows the shape and size of a parcel of land and how it relates to other parcels in the immediate area.)
An easement that does not specify a location is:
valid. (An easement does not need to specify a location in order to be valid. For example, an easement in gross held by a utility company does not specify a location.)
Open roof sheathing is a component of a(n):
wood shake roof. (Wood shake roofs feature open roof sheathing to allow air to circulate. None of the other answer selections share this design.)