UNIT 3 REVIEW

Which of the following is the best definition of encumbrance?

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

How is constructive notice of a sale given?

By recording a deed or by taking possession of the premises

Which of the following actions is a quiet title action?

Court action to remove a cloud 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]

What type of easement is created when a parcel is completely land locked and has no access?

Easement by necessity

Which statement is correct regarding encumbrances

Financial encumbrances affect the title. Hint = Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances. LO = 3A3 identify types of encumbrances.

California recognizes three types of wills. Which will is written entirely in the handwriting of the testator (maker) and is dated and signed by the testator

Holographic will

Why is it important to determine the starting date for a mechanic's lien?

Mechanic's liens have priority as of the date work began or materials were first furnished for the job.

What is the court proceeding that clears a cloud on the title of real property.

Quiet title action

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]

The difference between an easement and a license to use property is

a license may be canceled.

All of the following are non-financial encumbrances except:

an easement. a building restriction. a lien. an encroachment.

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 the property, which could affect marketability. [Encumbrances]

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]

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]

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. [Encumbrances]

All of the following are financial encumbrances with the exception of a(n):

easement.

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]

Encumbrances fall into two categories:

financial and non-financial encumbrances.

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

general lien. Income tax liens, court judgments, and California Franchise Tax liens are general liens and affect all of the property of the owner in the county where recorded. [Encumbrances]

When someone dies, without leaving a will, he or she is known to have died:

intestate

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

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

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

license. The statement of the question is a good definition of a license. [Encumbrances]

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. [Encumbrances]

Private restrictions on land can be created by deed:

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

An encumbrance is a non-possessory interest in real property that is held by someone who is not the:

owner. Hint = An encumbrance is a non-possessory interest in real property that is held by someone who is not the owner. Anything that burdens or affects the title or the use of the property is an encumbrance. LO = 3A3 identify types of encumbrances.

Real property can be transferred by __________ grant, which is the transfer of title by the government to a private individual.

public

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]

A(n) __________ is a person who makes a will.

testator.

In order for a grant deed to be effective:

the deed must be delivered to and accepted by the grantee Hint = A grant deed is not effective until it is delivered. It must be the intention of the grantor that the deed is delivered and title be transferred during his or her lifetime. LO = 3B3 determine how title to real estate is acquired or conveyed.

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]