ownership
A husband and wife filed for and received a divorce. The wife then tried to sell the property but the ex-husband's name was still on the deed. Which of the following actions would be best in trying to remedy the situation? A » Suit to partition B » Quiet title suit C » Lis pendens D » Notice of lien
B (B) A quiet title suit, court action, would be the best way to clear up title. (A) A suit to partition is court action to force all parties who own a property jointly to sell. (C) A lis pendens is notice of pending legal action. (D) A notice of lien extends a lien into other counties.
A city council zoned a two block area so that only Spanish style homes could be built because of the Spanish heritage in the area. This is usually referred to as which type of zoning? A » Directive zoning B » Aesthetic zoning because of architecture C » Cultural zoning D » Bulk zoning
B (B) Aesthetic zoning occurs when a particular architectural type is mandated. It is often used in tourist areas. (A) Directive, (C) cultural and (D) bulk zoning are terms that do not apply to testing.
An appurtenant easement would BEST be described as an easement that: A » is used primarily by utility companies B » runs with the land C » terminates upon the death of the dominant tenement D » is created by long-term use
B (B) An appurtenance is a right (such as an easement), privilege or improvement that runs with the land. (A) Utility companies are generally associated with gross easements. (C) Appurtenant easements do not terminate upon the death of the dominant tenement (the land benefited by the easement). (D) An easement by prescription is created by long-term use.
When emerging patterns of urban land use are occurring that would allow for the elimination of residential sideyards but require the density to remain the same, we see an example of a(n): A » horizontal land development B » integrated land development C » planned unit development D » exceptional land use
C (C) A planned unit development is where there are diverse uses of the land all in one area. Therefore, everything is more dense, hence the term density zoning is quite often used for PUDs or overlay zoning or cluster zoning. (A) Horizontal, (B) integrated and (D) exception land use are not valid terms.
A visiting dignitary who rented a place to live for two months (June 5th to August 5th) has which of the following property rights? A » Tenancy from period to period B » Estate at will C » Estate for years D » Estate at sufferance
C (C) Any lease than has a definite beginning AND ending date is an estate for years (regardless of how long it lasts). A periodic tenancy (A) is a month-to-month lease that requires notice to terminate. An estate at will (B) is permission to stay but no real lease agreement. Estate at sufferance (D) is when a lessee stays past the end of the lease WITHOUT permission.
Which of the following is NOT an appurtenance that belongs to and passes with the land? A » Right B » Privilege C » Improvement D » Reversion
D Reversion (D) is the right of a granting party to get the property back at a future time (such as the right of the landlord to regain the property when a lease expires or the right of the grantor of a life estate to regain use of the property upon the death of the life tenant. An appurtenance is a right (A), privilege (B) or improvement (C) that passes automatically to the purchaser upon the sale of the land.
A deed would be *presumed* to have been delivered upon the happening of which of the following events? A » It was subrogated B » It was notarized C » It was recorded D » It was signed
C (C) In theory, the deed is signed by the grantor and then delivered to the grantee. The grantee then records it. If recorded, the courts presume that it must have been delivered or it would not have been recorded. Subrogation (A) is the act of signing over the rights in a claim or judgment to an insurance company in return for paying off a claim. A deed could have been signed by the grantor and notarized without it ever having been delivered (B). Just because it was signed doesn't mean it has been delivered (D).
Which of the following terms would MOST likely be included in a title insurance policy? A » Acceleration B » Alienation C » Subrogation D » Subordination
C (C) When the title insurance pays off the claim to a buyer who has lost the property, the buyer subrogates or signs over the claim to the insurance company. Acceleration (A) is a mortgage clause that calls the note due upon default. Alienation (B) is a mortgage clause that calls the note due upon the sale or transfer of the property. Subordination (D) is an agreement by a lienholder to place their prior lien second in priority to a lien recorded later by another.
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150, what was the total value of the property? A » $30,000 B » $82,500 C » $120,000 D » $133,000
C $150 divided by .5% equals an assessed value of $30,000. *$30,000 divided by 25% equals a total value of $120,000.*
A general lien applies to: A » the owner's personal property only B » the owner's real property only C » all the owner's property D » none of the owner's property
C (C) A general lien is a debt against the owner personally and can be applied to all of the owner's property. A general lien would NOT apply to (A) personal property only, (B) real property only or (D) none of the owner's property; rather a general lien would apply to all of an owner's property.
What kind of study would be best used in trying to determine the feasibility of putting in a septic system on a property? A » Environmental impact study B » Permissable waste emission study C » Percolation test D » Sewage disposal test
C (C) A percolation test (water absorption of the soil) is used in putting in a septic system. (A) An environmental inpact study, (B) permissable waste emission study or (D) sewage disposal test do not deal with putting in a septic system.
Which of the following statements BEST describes Planned Unit Developments (PUD's)? A » A development that has diverse uses of the land B » A development with access to major highway arteries C » A development exclusively used for commercial condominiums D » A form of ownership used in residential condominiums
A (A) A PUD is a type of zoning that overlays residential, commercial and industrial uses in a small area. It may or may not be next to a highway (B). It is not used ONLY in commercial condominiums (C) although commercial condominiums may be a part of a PUD. It is a type of zoning plan, not a form of ownership (D).
The purpose of a percolation test is to determine: A » toxic waste in the soil B » latent defects in the soil C » the water absorption rate in the soil D » erosion and accretion tendencies of the soil
C (C) A percolation test is to measure the water absorption rate in the soil. A percolation test is NOT for (A) toxic waste in the soil, (B) latent (hidden) defects in the soil or (D) erosion and accretion tendencies of the soil.
What do liens and easements have in common? A » Both are encumbrances B » Both must be on the public record to be valid C » Both cannot be done without the consent of the owner D » Both occur following the establishment of a debt
A (A) A lien is a money encumbrance where an easement is a use encumbrance. Although recording is helpful, it is not necessary in some cases (B). Many liens are done without consent (such as tax liens) (C). Although liens are placed after a debt has been incurred, easements usually are not (D).
A farmer leased a property on an annual basis whereby the farmer or the owner could terminate the lease by giving the other party 90 days notice. One half of the crop value would be the annual rent. This type of lease would best be described as a: A » tenancy in common B » periodic estate C » tenancy for years D » tenancy at will
B (B) A periodic estate, such as a month-to-month lease, *requires a notice of termination as there is no specific ending date* in the lease. (A) A tenancy in common is an ownership form whereby if an owner dies, the heirs inherit the rights. (C) A tenancy for years is a lease with a definite beginning and ending date, therefore requiring no notice of termination. (D) A tenancy at will is a situation where there is no written lease, but the tenant has permission to stay due to the landlord accepting the rent.
Howe's property was assessed at $30,000. Rand's property was assessed at $35,000. Which is true? A » The ad valorem tax on Rand's property is higher than Howe's B » The improvement tax on Rand's property is higher than Howe's C » The special assessments on Rand's property are higher than Howe's D » The special assessments on Howe's property are higher than Rand's
A (A) Ad valorem means to tax based on value. Since Rand`s property is higher than Howe's, the ad valorem taxes would be higher. Special assessments (C) & (D) have nothing to do with value of the land. Rather, they are based on the cost of an improvement (i.e. sewers, streets, etc.) and are usually determined based on the "front" feet across the property. There is no such thing as an improvement tax (B).
A woman took over an abandoned farm. She tilled and planted crops on the land. She then notified the owner by certified mail that she was using the property. Would she ever have a good chance of gaining title to the property? A » Yes, if she continued to maintain possession of the farm B » Yes, because she had planted crops on the farm C » No, because agricultural land cannot be claimed through adverse possession D » No, because you cannot claim property through adverse possession if the owner knows you are using the land
A (A) Adverse possession requires someone to use another`s land continuously, openly and notoriously (without permission) for a number of years. The woman had done this. If the owner continued possession of the farm, she could claim it through adverse possession. Just planting crops is not enough (B) as a tenant farmer could have done that. Any land (C) may be claimed through adverse possession. The original owner's knowledge (D) of another's use is not enough to block an adverse claim.
A city took a property through eminent domain so they could build a sports complex and then lease it to four private sports franchises. Would this be allowed? A » Yes, as long as the homeowners were paid compensation for the properties B » Yes, because sports franchises do not fall under federal laws C » No, because land taken by eminent domain cannot be sold or leased to private parties D » No, because this cannot be done within the boundaries of the city
A (A) Eminent domain can be exercised by the government for the public good. However, owners must be paid for the land. Eminent domain is usually based on local or state law (B). Under eminent domain, the government can sell or lease the property to private parties (C). Cities can usually exercise eminent domain anywhere within the city (D).
When a valid deed is recorded, what does this actually do? A » It gives constructive notice B » It effectively transfers the title C » It bars any future claims D » It gives actual notice
A (A) Recording gives constructive notice to the public that the property has been transferred. Constructive notice is what the public has if one only cares to check the public record. Title is transferred when the deed is delivered, not recorded (B). It only puts the public on record that the seller has transferred rights to the buyer. It does not bar any future claims (C) such as mechanic`s liens, tax liens, etc. Actual notice (D) is where a party personally is aware of a transaction.
Which of the following statements about an unrecorded deed is correct? A » It is still valid between the two parties in the transaction B » It could never have any assurances for the buyer C » It gives constructive notice of existing encumbrances on the property D » It provides the same level of enforcement against third party claims as a recorded deed
A (A) The deed is still valid between the parties since each has actual notice. So, the buyer is assured that the seller cannot reclaim ownership (B). Constructive notice is what is given the public when something is recorded (C). Third parties are not assumed to have knowledge of unrecorded deeds (D); only recorded deeds.
Which BEST characterizes the difference between zoning laws and building codes? A » Zoning laws deal with use; building codes deal with building materials B » Building codes deal with use; zoning laws deal with building materials C » Building codes deal with construction materials; zoning laws do NOT D » Zoning laws deal with construction materials; building codes do NOT
A (A) Zoning laws mandate a property be used in a specific way. Building codes are used to require builders to use certain types of materials and/or build in a certain way for safety. Building codes do not deal directly with use (B). It is possible for zoning to require certain building materials (such as aesthetic zoning which requires a type of building style) (C). Building codes do deal with construction materials (D).
Ann Carr planted a rose garden on the corner of Mrs. Baird's property. Mrs. Baird was home-bound and never left her house. Mrs. Baird never knew that Ann Carr had planted a rose garden on her property. The statutory period had elapsed and Ann Carr claimed the rose garden. Would Ann Carr have a good chance of getting rights to an easement by prescription? A » Yes, because she had made open use of the property B » Yes, because she made improvements that would not have been made otherwise C » No, because Mrs. Baird did not know of the rose garden D » No, because no improvements had been made to the property
A (A) is correct in that acquiring property either through adverse possession or an easement by prescription requires continuous, open, notorious and hostile use. Here, Ann Carr had made improvements and satisfied these conditions. (B) Making improvements that would not have been made otherwise doesn`t have anything to do with adverse possession laws. (C) The fact that Mrs. Baird did not know of the rose garden doesn't alter Ann Carr's satisfaction of all the requirements. (D) Improvements actually had been made to the property.
An appurtenance would best be defined as: A » a right to make improvements on land B » something that transfers with the sale of property C » an encroachment on a property D » increased value for a property based on location
B (B) An appurtenance is a right, privilege or improvement that is tied to the land, therefore transferring with the sale of property. (A) A right to make improvements on land is not an appurtenance. Once the improvement is made on the land, such as building a house, then the item becomes an appurtenance and transfers with the sale. (C) An encroachment is an improvement that extends beyond the property line, such as a fence built on someone else`s property. (D) Increased value based on location is referred to as situs value.
When one is granted the right to cross over someone else's land in order to be able to bale hay, this would be an: A » appurtenance B » easement C » rescission D » reversion
B (B) An easement is a non-possessory right to cross over another person`s property. (A) An appurtenance is a right, privilege or improvement that transfers with the sale of property. Even though an easement is an appurtenance, it is not the BEST specific answer, such as answer B (easement). (C) Rescission is returning both parties to a contract to the status quo, that is returning to square one. (D) Reversion are rights reverting back to someone, such as when a lease expires, the property reverts to the landlord.
Which of the following terms BEST describes one or more persons' right to use a property to the exclusion of all others? A » Easement B » Ownership (Fee simple) C » Leasehold D » License
B (B) Ownership of a freehold estate indicates sole use of a property. An easement (A) shows that one has the right to use the easement while another still has the possessory rights to the property. In a leasehold (C), a lessee (tenant) has the possessory rights but the owner still has certain rights in the property. A license (D) is where the owner gives permission to another to use a portion of the owner`s property (which may be revoked).
Each of the following covenants would be found in a general warranty deed EXCEPT: A » Seizin B » Restrictive Ownership C » Further Assurance D » Quiet Enjoyment
B (B) Restrictive ownership is NOT a promise found in a general warranty deed. (A) Seizin, an owner promising ownership and the right to sell, (C) further assurance, promising to provide documents in the future to prove ownership if necessary and (D) quiet enjoyment, promising no third party claims on the property are all promises made in a general warranty deed.
Four persons owned a property as tenants in common. One wanted to sell the property but the others did not. Which of the following actions would the one that wanted to sell MOST likely take? A » Rent his/her interest to the others B » File a suit to partition, in order to force the sale of the property C » Force the others to buy his/her interest D » Become a silent partner with the others
B (B) Since it is difficult to sell a partial interest, the court may order the property sold and the proceeds divided between the owners. Although (A) is theoretically possible, the others already have the right to possess the entire property (undivided interest) and it is unlikely they would pay rent for what they can already do free. Persons can NOT be forced to buy an interest (C). Silent (limited) partners (D) are investors in a business where the partnership owns a property. This is owned by individuals, not a partnership.
Which of the following types of ownership is joint tenancy most similar to? A » Severalty B » Tenancy by the entireties C » Tenancy in common D » Community property
B (B) Tenancy by the entireties is similar to joint tenancy in that both require right of survivorship and TTIP (time, title, interest, possession) - same time, same title, equal interest and undivided possession. (A) Severalty is ownership by one person or entity. (C) Tenancy in common is inheritable to the heirs upon the death of an owner. (D) Community property is property acquired during a person`s marriage.
Which of the following BEST describes the term "tax base" in a taxing jurisdiction? A » A percentage of the assessed values B » The total of the assessed values C » A percentage of the revenue needed to fund the budget D » The total revenue needed to fund the budget
B (B) The "tax base" is the total of all the assessed values in an area that are subject to tax. The total money needed to run the government (budget) is then divided by the tax base to determine the tax rate. The tax base is NOT (A) a percentage of assessed values, (C) a percentage of revenue or (D) the total revenue needed to fund the budget.
A lender tried to force a homeowner to sell her home to pay the lender for personal debts incurred by the homeowner. Which of the following could the homeowner claim to stop the sale of her home? A » Curtesy B » Homestead C » Escheat D » Eminent Domain
B (B) The homestead exemption is where a homeowner can keep ownership of the home even when creditors are trying to force the sale. (A) Curtesy refers to a husband`s right in property at the time of a wife's death. (C) Escheat is when a person dies intestate (no will) and has no heirs and the ownership goes to the state government. (D) Eminent domain is the right of the government to take private property for public good.
A manager of a real estate company must keep all of the following records EXCEPT: A » listing contracts B » title insurance policies C » list of company expenses D » list of sales contracts
B (B) Title insurance policies are for the individuals who purchase property, not for the real estate company. (A) listing contracts, (C) company expenses, and (D) sales contracts are all documents that must be kept for three years at the broker`s office.
A person leases a business property and attaches several fixtures. At the end of the lease, which of the following events usually happens to the fixtures? A » They can be taken out unless it will cause material damage to the property B » They can be taken out even if it causes material damage to the property as long as it is repaired by the tenant C » They must be left in the property because it improves the value of the property D » They must be left in the property since this was a commercial and not a residential lease
B (B) Trade fixtures are improvements attached by a commercial tenant and may be removed prior to the termination of the lease. If damage is caused, the tenant must pay for the damages. However, they can still be removed (A). Since the tenant paid for and installed them, the owner has no right to any increased value as a result of the trade fixtures (C). (D) Because it is a commercial lease, the fixtures can be taken as the tenant did the installing.
A farmer leased some farm land from a company. When ready to plant, the farmer discovered that another person was already working the land and was the true owner. The farmer would not have to pay the rent to the company due to which of the following legal doctrines? A » Further assurance B » Quiet enjoyment C » Rent dominance D » Estoppel rights
B (B) When leasing, a lessor gives an implied covenant of quiet enjoyment which states that the lessor has clear title and that the lessee will be able to use the property without being disturbed by others. Further assurance (A) is a deed covenant promising documents in the future if needed. Rent dominance (C) is not a real estate term. Estoppel (D) generally refers to a loan paper signed by a borrower that lists the loan balance and loan terms (used when a lender is selling the note to a 3rd party).
Which of the following items is NOT necessary for a deed to be valid? A » Name and signature of the grantor B » Name and signature of the grantor and grantee C » Words of conveyance D » Property description
B A grantee does not have to sign a deed. The grantor signs the deed (A) which has conveying words in it (C) along with a property description (D). Title passes to the grantee when the deed is delivered to and accepted by the grantee.
A father deeded some land to his son. There was a deed restriction on the property restricting the use of the land to agricultural only. Years later, the city rezoned the property to light industrial use. Can the property now be used for light industrial? A » Yes, if the son is able to obtain a variance B » Yes, as long as the son agrees to remove the deed restriction C » No, because the deed restriction is still valid D » No, because once a restriction is placed on property, it cannot be removed
C (C) When a deed restriction disagrees with zoning laws, the most restrictive will take precedence. Therefore, since the deed restriction is still valid and is more restrictive, the property must still be used for agricultural use only. A variance is obtained in trying to change the use after the zoning change (A). The grantor can remove a deed restriction, not the grantee (son) (B). A deed restriction can be removed by the grantor (D).
A person bought a house and wanted to bring along a pet cougar to keep in the backyard. Which of the following governmental rights would MOST likely prohibit this? A » Police power because the police have authority over types of animals for pets B » Urban development regulations as they list allowable animals for the properties C » Zoning ordinances because sometimes these contain what animals may be kept D » Building codes as they would contain the most restrictions for city dwellings
C (C) Zoning ordinances usually prohibit exotic animals unless the property is zoned as a zoo. Although zoning comes from the police power of the government, (A) implies that it is the police who have authority over pets. Urban development regulations (B) are standards that developers must maintain when developing an area. Building codes (D) also deal with types of buildings.
A situation whereby a person loses land but the boundary lines remain the same would be an example of: A » accretion B » erosion C » avulsion D » a cloudy title
C (C) is correct as an avulsion is a sudden washing away of soil by nature whereby the riparian owner has a right to regain the soil; the boundary lines do not change. (A) and (b) are incorrect as a riparian owner does lose rights to the soil if it is deemed to be erosion; a gradual wearing of soil. Accretion is a gradual build up of soil. The (D) answer refers to some type of problem concerning the title, such as ownership disputes, etc.
Which of the following activities would be associated with riparian rights? A » Mining B » New construction C » Irrigation D » Landscaping
C *irrigation: is the supply of water to land or crops to help growth, typically by means of channels.* (C) Riparian refers to water rights. In this case, the water is used for irrigation. (A) Mining, (B) new construction and (D) landscaping have nothing to do with water rights.
An heirloom chandelier in a house would be considered: A » chattel B » personal property C » a fixture D » a trade fixture
C Since a chandelier was at one time movable or personal property but is now attached to the house, it would be considered a fixture (C) or real property. (A) and (B) are both incorrect as the chandelier is real property, not personal property or chattel. (D) is incorrect as a trade fixture is an item installed by a commercial tenant.
A person sold their property and then reserved the right to stay on that same property as long as the person remained alive. This would be referred to as: A » pur autre vie B » remainder C » a life estate D » reversion
C This question is referring to a life estate (C) known as reservation. (A) means based on another`s life, (B) is incorrect as a life estate in remainder goes to a third party upon the death of a life tenant, and (D) is incorrect as reversion refers to deeding a property to someone for a person's lifetime, and when the life tenant dies, the property reverts back to the grantor.
Two building lots were for sale. One was zoned for multi-family and the other for commercial. A builder wanted to buy the lots and have them rezoned for single family homes. Which of the following best describes the situation? A » Conformity B » Variance C » Substitution D » Down zoning
D (D) Down zoning is going from a more intensive use to a less intensive use, such as multi-family to single family. (A) Conformity is a valuation principle stating that properties should conform to the neighborhood to maintain the best value. (B) A variance is a minor deviation from the current zoning law in the building or use of property. (C) Substitution is a valuation principle stating that a property is only worth what one can get another similar property for just like it.
Which of the following items would NOT be considered real property? A » House B » Mineral rights C » Air rights D » Trade fixtures
D "Trade fixtures" are improvements attached by a commercial tenant. They are personal" property and may be removed prior to termination of the lease. Improvements such as a house (A), mineral rights (B) and air rights (C) are all considered appurtenant to the land and would pass to the purchaser upon sale.
An owner buys a house and puts in a new furnace and air conditioning unit. These items would be considered a(n): A » trade fixture B » chattel C » personal property D » appurtenance
D (D) A new furnace and air conditioning unit would be considered fixtures (real estate) which therefore would be an appurtenance (right, privilege or improvement that belong to and pass with the sale of property). (A) A trade fixture is an item installed by a commercial tenant for business and is considered to be personal property. (B) Chattel is another word for personal property. (C) A new furnace and air conditioning unit would be real property, not personal property.
If the deed restrictions disagree with the zoning laws, which would take precedence? A » Deed restrictions as they are more restrictive than zoning laws B » Zoning laws as they are more restrictive than deed restrictions C » Public zoning laws always supersede private deed restrictions D » The most restrictive would take precedence
D (D) If they disagree, the MORE RESTRICTIVE of the private restrictions or the public zoning must be followed. Deed restrictions are not always more restrictive than zoning (A) nor is zoning always more restrictive than deed restrictions (B). Zoning laws do not automatically override private restrictions (C).
Carr bought a property from Dole. Two years later Carr got a letter from Dole's brother stating that Dole was legally incompetent at the time of the sale. Carr sent a registered letter stating an unwillingness to abandon the property. Carr stayed there, continued paying taxes and satisfied the adverse possession period. Would Carr have legal title to the property? A » No, Carr stayed there against the owner's wishes thus being a holdover tenant B » No, because Dole was incompetent at the time of the sale C » Yes, because Carr had a signed sales contract D » Yes, because Carr made continuous, open, notorious and hostile use
D (D) Since the seller was incompetent, the deed did not transfer clear title. But, Carr`s use (without permission) did transfer title through adverse possession. Holdover tenants (A) are renters/lessees who stays beyond the term of the lease without permission. Dole's incompetency (B) made the deed void (thus mandating the adverse possession claim). The sales contract (C) is also void since Dole was incompentent.
A person bought 5 acres of ground. The 5 acres as well as the surrounding area was zoned low density residential. The buyer was able to change the zoning on the 5 acres to light industrial. This is best referred to as: A » a non-conforming use B » a dedication C » down zoning D » spot zoning
D (D) Spot zoning is zoning one specific piece of property different than all the surrounding pieces of ground. (A) A non-conforming use is similar to a grandfather clause in that one is allowed to continue the current use of property that is different than the current zoning law as the person was there using the land before the zoning change. (B) A dedication is normally where a developer gives land to the government. (C) Down zoning is going from a more intensive use to a less intensive use.
One of two co-owners of a piece of land sold it to a buyer giving a general warranty deed with only the one co-owner's name on it. The buyer later found that another person co-owned the property. Which is true regarding the general warranty deed? A » The buyer has no legal recourse because the law of caveat emptor applies before the laws governing general warranty deeds B » The general warranty deed only covers the time that the one co-owner owned property C » All co-owners rights are transferred when a general warranty deed is signed D » The general warranty deed did NOT transfer the other co-owner's rights
D (D) The other co-owner still has his/her rights. The buyer may sue the seller for any loss (A). A general warranty deed covers all past claims (B). A special warranty deed limits the claim to only the time period covered by the owner. One co-owner cannot sign away the other co-owner`s rights (C), even with a general warranty deed.
An owner listed a home telling the broker that the microwave oven would pass along with the home. However, the home was rented and the oven had been purchased by a tenant. Upon sale, would the microwave oven pass to the buyer of the home? A » Yes, as a microwave oven is automatically deemed to be a fixture, regardless of who originally purchased the oven B » Yes, since the owner listed it with the broker along with the home C » No, since the oven is the renter's real property D » No, since the owner had no legal right to tell the broker it would pass along with the home
D (D) The owner did not own the oven, so the owner had no legal right to sell it. (A) A microwave oven is not automatically a fixture. (B) The owner had no right to list the oven along with the home. (C) The oven is the tenant`s personal property.
Which is NOT an economic characteristic of land? A » Location B » Scarcity C » Ability to improve D » Immobility
D Immobility is a "physical" characteristic of land; i.e. it cannot be moved. "Economic" characteristics are items dealing with value of land. The value of land is affected by the location (A), scarcity (limited supply) (B), and how it is improved (C).
Which is NOT true about a mechanic's lien? A » It can only be filed for the value of the cost of the improvement B » It must be filed within a specified time period C » It would have to be enforced by the court D » Its priority rights are determined by the date of recording
D Mechanic`s liens take priority based on the date the work was performed, not the date of recording (like most liens). Mechanic's liens have to be based on the cost of the improvement (A) and must be recorded within a certain time period after the work was completed (the time period varies from state to state). Although no court judgment is necessary to record the lien, enforcement (court ordered sale) would have to be done by the court.
