Real Estate Practice Online Chapter 1 Unit 1-3 Online

A special warranty deed contains the same covenants, expressed or implied, as a ________________, except that the grantor covenants against claims made only for defects of title which arose during the time the grantor possessed title to the property. 1. General Warranty Deed. 2. Bargain and Sale Deed. 3. Quit Claim Deed. 4. Grant Deed.

1

A title insurance commitment: 1. tells the current state of the title and lists what actions must occur for the title insurance company to insure the property. 2. tells the current state of the title and insures the property is free from liens and encumbrances. 3. insures that your client has marketable title to the property. 4. None of the choices is correct.

1

An area where residential density is described overall but the developer is allowed flexibility in placing the residences in groups interspersed with open space is: 1. Cluster Zoning 2. Exclusionary zoning 3. Cumulative zoning 4. Aesthetic zoning

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An easement belonging to the dominant estate personally, not because of land owner status is an: 1. Easement in Gross 2. Easement Dominant 3. Easement in perpetuity 4. Easement

1

Before the planning commission will approve the construction plans for a gas station, they would most likely require: 1. an environmental impact report 2. a conditional performance evaluation 3. a nonconforming spot survey 4. a restrictive specialization permit

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Community property is: 1. Property acquired during a marriage and considered equally owned 2. Common elements in a community 3. Property owned by a cooperative 4. The playground in a PUD

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How many acres are in the SW ¼ of the SW ¼ of Section 5, and the S ½ of the SE ¼ of Section 6? 1. 120 acres 2. 5 acres 3. 40 acres 4. 80 acres

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If a condominium owner is delinquent in the payment of valid association fees, the homeowners association will most likely: 1. Place a lien on the property 2. Give 30 days notice before starting eviction proceedings 3. Hire a broker to sell the property 4. Both #1 and #2 are true

1

If a lawsuit has been filed that may impact the title to the property, there should be a notice of __________ filed in the county records. 1. lis pendens 2. pending suit 3. quiet title action 4. title dispute

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If the seller had work done on the property and didn't pay the vendor, the vendor could file a lien on the property now owned by a new person: 1. If the buyer had extended coverage he would not have to pay 2. If the seller had extended coverage he would not have to pay 3. The buyer has no protection against this 4. The seller can not sell the property

1

In many western states the first person to have used water in a stream for a beneficial purposes cannot be forced by his downstream neighbors to share the water during a drought because of the: 1. Doctrine of Prior Appropriation. 2. Federal Water-Sharing Act of 1968. 3. Doctrine of Riparian Rights. 4. Doctrine of Littoral Rights.

1

It is possible that a general contractor could place a mechanic's lien on your property even though you did not hire him, but rather he was hired by the person from whom you bought the property. 1. True 2. False

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Leon's will gives his neighbor the right to use a well on Leon's land as long as the neighbor is alive. The neighbor's interest in Leon's property is called a: 1. Life estate 2. Fee simple determinable 3. Less-than-freehold estate 4. License

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Mud or soil that is carried by a river or stream and adds to the volume of land over time in a process called: 1. accretion 2. Avulsion 3. Erosion 4. Riparion

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The deed with the broadest level of representation from the seller is a: 1. General Warranty Deed. 2. Special Warranty Deed. 3. Grant Deed. 4. Deed of Trust.

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The rights of a landowner of an adjacent sea or ocean are known as: 1. littoral 2. riparian 3. zoning 4. adjudication

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Utility companies receive: 1. an easement in gross. 2. an appurtenant easement. 3. the right to cross your land from any direction to get to the utility poles. 4. community property rights.

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Water rights may be converted from agricultural to domestic use by: 1. Condemnation 2. Severance 3. Suit for division 4. City council resolution

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What section of a township lies directly northeast of Section 8 in the same township? 1. Section 4 2. Section 5 3. Section 6 4. Section 16

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When a parent gifts a property to a child this is known as: 1. voluntary alienation 2. involuntary alienation 3. descent 4. will

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When title transfers by foreclosure: 1. A lender is part of the transaction 2. The government ends up with title to the property 3. It is known as adverse possession 4. The property owner must be compensated for the value of the property

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Which of the following would be considered a zoning variance? 1. An exception to an existing zoning ordinance 2. Special permission for a conditional use within a zoning area. 3. An actual change in the zoning 4. Confirmation of a legal use that existed previously

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Which of the following would not be considered a fixture in a residential sale? CORRECT ANSWER 1. A garden hose 2. A tomato plant in the garden 3. Telephone wiring 4. A storm door

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A Variance is: 1. An existing use permitted from a previous usage despite zoning changes where the use no longer conforms or is permitted 2. A permanent exception granted by the local zoning office to either build a structure or conduct a use that would not be permitted under the current zoning 3. An isolated use that is not consistent with surrounding use 4. Zoning that prohibits a specific use or zoning that may unintentionally exclude minorities or low-income people

2

A _____________ is one of 36 sub-units within a township that is one mile square in the Governmental Survey System. 1. Tier 2. section 3. Quadrangle 4. Range

2

A court action or lawsuit to dissolve co-ownership of property when one (or more) co-owners want to sell a property, but others do not, is called a: 1. Severance 2. Partition 3. Separation 4. Enabling declaration

2

A mortgage is: 1. A type of deed 2. A legal document that secures the repayment of a mortgage note 3. A promise of a property owner to repay a loan 4. Linked to a property by a deed of trust

2

A mortgage lien is considered a general lien. 1. True 2. False

2

A requirement of a defeasible fee whereby the grantee's title depends on a specific condition is known as: 1. Condition feasible 2. Condition subsequent 3. Condition remainder 4. Condition determinable .

2

All other estates are created from a: 1. Non freehold estate 2. Fee simple estate 3. Simple estate 4. Ordinary estate

2

An item or property which might attract curious children to their detriment is known as: 1. A negative attraction 2. An attractive nuisance 3. A problem 4. An owner negligence

2

Give the choice between a Special Warranty Deed and a General Warranty Deed: 1. a buyer would prefer a special warranty deed and the seller would prefer a general warranty deed. 2. a seller would prefer a special warranty deed and the buyer would prefer a general warranty deed. 3. the buyer and seller would prefer a special warranty deed but the title company would prefer a general warranty deed. 4. there would be no preference for either the buyer or the seller.

2

If you actively participate in the management of your personally owned income property, you may: 1. Not deduct your losses from your personal income 2. Deduct your losses from your personal income 3. Deduct your losses only from other like investments 4. Deduct your losses up to the amount of net profit

2

Property deeded to a school "for educational purposes only" conveys: . 1. Fee simple absolute 2. Fee simple determinable 3. A non-freehold estate 4. A life estate

2

The association can sue her for an order to remove four feet of the fence in front and two feet in back. If there were no association with enforcement powers, other homeowners who are bound by the terms of the CC&Rs could sue her directly for the same order. 1. Will remove the fence 2. Can sue her to remove the fence or make it shorter 3. Will replace the fence with a shorter one 4. Can place a lien on her property

2

The manner in which a fixture is will determine whether the item is personal property or real property. 1. Purchased 2. Attached 3. Used 4. Oriented

2

There are thirty-six (36) __________ meridians in the US. 1. Primary 2. Principal 3. Prime 4. Longitude

2

To decrease or stop an activity, an __________ would require removal of a nuisance such as smell or noise. 1. intervention 2. abatement action 3. eviction 4. interruption action

2

When considering a new zoning ordinance, a county Zoning Board would have to consider all of the following EXCEPT: 1. the density of the building lots. 2. the future development obligations. 3. the ratio of homes for low-income buyers. 4. The ratio of open space to residential dwellings.

2

Which of the following characteristics of a cooperative housing development is FALSE? 1. Tenants do NOT hold fee title to their units 2. Co-ops are exempt from local zoning ordinances 3. Tenants occupy their units under a proprietary lease 4. Tenants are shareholders in the corporation that holds title to the property

2

Which of the following is NOT a unity required for a joint tenancy? 1. Unity of interest 2. Unity of ownership 3. Unity of title 4. Unity of possession

2

Which of the following would be considered a fixture? 1. A car in the garage CORRECT ANSWER 2. Keys to the front door 3. Table decoration 4. A painting hanging on a wall

2

Which of the following would be considered community property? 1. Property inherited by a wife during a marriage 2. Income earned by one spouse during the marriage 3. A property gift to a husband during the marriage 4. Income earned from a property acquired before the marriage

2

___________ are areas in a condominium project where all owners share an undivided interest and full possession. 1. Community areas 2. Common elements 3. Coop areas 4. Common interest

2

"Special Assessment" taxes are taxes that: 1. are levied according to your net worth. 2. add value to you property. 3. are levied for local improvements. 4. None of the above.

3

A Real Estate Investment Trust (R.E.I.T.): 1. Is real property 2. Is handled mostly by REALTORS® CORRECT ANSWER 3. Allows small investors to participate in large commercial real estate projects 4. Is a type of partnership

3

A _________ is a detailed map that illustrates the geographic boundaries of individual lots. 1. Survey 2. ILC 3. Plat 4. Boundary map

3

A ______________ is a lien created by statute without any action by the property owner. 1. Mechanic's lien 2. Mortgage 3. Statutory Lien 4. HELOC

3

A business organizational form in which all general partners actively participate in ownership and management and are liable for all debt and actions, is called: 1. An LLC 2. A joint venture 3. A general partnership 4. A franchise .

3

A form of co-ownership in which one fee simple title is undivided and shared equally among two or more owners with an automatic right-of-survivorship, is called: 1. In severalty 2. Tenancy in Common 3. Joint Tenancy 4. Tenancy by the Entirety .

3

A method used to control density and overcrowding by restricting setbacks, building height, or ratio of open area is known as: 1. Aesthetic 2. Residential 3. Bulk 4. Commercial

3

A quiet title suit is a lawsuit to: 1. Keep the neighbors quiet 2. Determine who the true heirs in a will are 3. Determine and establish land ownership rights 4. Support a quitclaim deed .

3

A quit claim deed: 1. Is more valuable than a special warranty deed 2. Is more valuable than a general warranty deed 3. may or may not transfer any interest in real estate 4. Is of no value until it is recorded

3

A third party that administers a trust on behalf of the beneficiary and carries out the wishes of the trustor, is the: 1. Bank 2. Mortgage broker 3. Trustee 4. Owner

3

A trust under which property is transferred by a living trustor to a trustee with instructions for management of assets and for distribution of income, is known as a(n): 1. Testamentary trust 2. Conservation trust 3. Inter Vivos Trust 4. Beneficial trust

3

A wood stove insert installed into a fireplace opening becomes real property as a result of: 1. Accretion 2. Apportionment 3. Annexation 4. Assemblage

3

A zoning ordinance which can cause economic segregation by restricting land usage to high-cost, low population density residential development is known as: 1. esthetic zoning 2. combination zoning 3. exclusionary zoning 4. illegal zoning

3

An abstract of title is: 1. A theoretical real estate concept that is similar to the bundle of rights 2. A document which evidences ownership of a parcel of real estate 3. A history of title that contains a statement of all liens and other recorded liabilities and is written 4. More broadly defined than a chain of title

3

An interval ownership interest with an exclusive right of occupancy for a specific period of time is a: 1. Cooperative 2. Leasehold interest CORRECT ANSWER 3. Time share 4. Real Estate Investment Trust .

3

Ellen lives in an apartment building owned by a corporation where each tenant has stock, and one mortgage covers the whole building. This type of ownership is called: 1. Planned unit development 2. Condominium 3. Cooperative 4. Time share

3

Emblements are: 1. Fixtures 2. Flowers in a garden 3. Crops grown for sale 4. Both #1 and #2 are true

3

Escheat, eminent domain, foreclosure, and adverse possession are: 1. types of deeds. 2. potential sections within a deed. 3. types of involuntary alienation. 4. included in all deeds of trust.

3

For a conveyance from 'A' to 'B', for the life of 'B', and then to 'C' if 'C' out lives 'B'; what is 'C's interest in the property at the time of the original conveyance? 1. Fee simple 2. Reversionary interest 3. Contingent remainder interest 4. Vested remainder interest

3

If you have a valid will, you are said to die: 1. Intestate 2. Will less 3. Testate 4. Invalid

3

If you want to only warrant against title defects during your ownership period, you would transfer ownership using a: 1. Limited general warranty deed 2. A quitclaim deed with "if any" crossed out 3. A special warranty deed 4. A grant deed

3

Sections are numbered from 1-36, beginning in which corner of a township? 1. The northwest corner 2. The southwest corner 3. The northeast corner 4. The southeast corner

3

The Governmental Survey System (also known as the rectangular survey system) legally describes where property is located in conjunction with principal meridians and base lines: 1. Identifies a parcel using a lot number within a specific block which lies within a specific track 2. May be described with North 90 degrees East 100 feet, then South 45 degrees West 150 feet, then South 90 degrees East 100 feet 3. Legally describes where property is located in conjunction with principal meridians and base lines 4. Uses the Bearing System

3

The act of appropriating private land for public use upon payment of fair market value under a government's right of eminent domain and through the legal process called condemnation is known as: 1. Transfer 2. Appropriation 3. Taking 4. Valuation

3

The following answer regarding income tax deduction is FALSE: 1. Interest is fully deductible up to a limit of $1 million for a home loan plus one, second home 2. Interest up to $100,000 is deductible on home equity loans 3. Discount points paid by the buyer are not deductible 4. Property taxes are fully deductible

3

The gradual loss of soil due to rainfall is: 1. Accretion 2. Avulsion 3. Erosion 4. Riparion

3

When selling your primary residence: 1. You will not be taxed on the gain 2. There is a one time exemption from taxes on the gain 3. Married couples have no tax consequences if the gain is $500,000 or less 4. There will be no tax consequences unless the gain is over $500,000

3

Which of the following is NOT a test for determining a fixture? 1. Agreement of the parties 2. Method of attachment 3. Exterior dimensions and weight 4. Adaptation of the item to the real estate

3

A ______________ use is a use that was legally built under previous regulations but does not meet existing standards. 1. Grandfather zoning 2. Variance zoning 3. Contract zoning 4. Legal nonconforming zoning

4

A benchmark: 1. Is a visible marker, either natural or artificial 2. Is a reference point or marker placed by a surveyor and used to establish elevations and altitudes 3. Can be an iron stake used as a reference point 4. All of the above

4

A property that is co-owned without the right of survivorship but has undivided interests is an example of: 1. A joint tenancy 2. Community property 3. Tenancy by the entirety 4. Tenancy in common

4

An easement presumed by implication of law to be granted to the purchaser of land which is landlocked by seller's property is an: 1. Easement by Implication 2. Easement in Gross 3. Easement by Perscription 4. Easement by Necessity

4

An estate in real property consisting in an individual interest in airspace within a unit and an undivided common interest in the common areas is known as ownership. 1. Coop 2. Property 3. Homestead 4. Condominium

4

An owner has purchased a cabin in a development where he can park his boat for most of the year and has a fee simple interest in the cabin along with 5 percent of the swimming beach, boat ramp, parking lot, and laundry room. What type of ownership interest it this? 1. A time share estate 2. A camping membership 3. A standard subdivision 4. A condominium unit

4

How many acres are in the NE 1/4 of the NW 1/4 of the SE 1/4 of Section 2, T1N R2W of the 6th Prime Meridian? 1. 320 acres 2. 160 acres 3. 5 acres 4. 10 acres

4

If a city determines that it needs some of Farmer Joe's water for its citizens: 1. The city may have the right via eminent domain to pay the farmer and take his position for the right to use the water 2. The city must first go through the legal condemnation process for approval 3. The city does not have the right to take Farmer Joe's water since he was using it first 4. Both (1) and (2) are correct

4

In a condominium, which of the following could be common elements? YOUR ANSWER 1. Parking spaces 2. Landscaped areas 3. The unit owned by the association and provided to the caretaker 4. All of the above

4

In a general warranty deed, the covenant that there are no liens against the property is the: 1. Covenant of further assurance 2. Covenant of warranty forever 3. Covenant of seizin 4. Covenant against encumbrances

4

In some states, when a wife must also sign a deed in order for the husband to sell his property, the wife's interest is called: 1. Lifetime homestead 2. Pur autre vie 3. Courtesy rights 4. Dower rights

4

John is searching for a site to locate a hobby shop. He should start by researching: 1. subdivision covenants. 2. environmental impact statements. 3. building codes. 4. zoning ordinances.

4

Markers used as points of beginning or other corners in metes and bounds descriptions may be: 1. Artificial 2. Iron stakes 3. Trees 4. All of the above

4

One of the requirements of a valid deed is: 1. Actual notice 2. Inquiry notice 3. Constructive (legal) notice 4. Advanced notice

4

P.U.D.: 1. Stands for Planned Unit Development 2. Is usually a zoning term 3. Is a planned community with a variety of individual ownership interests 4. All of the above

4

Recording documents to give notice to the public of ownership is known as: 1. Race Notice 2. Announced Notice 3. Inquiry Notice 4. Constructive Notice

4

Standard established by local or state government to protect the public by regulating building and construction methods, including plumbing, electrical and fire is a ________. 1. Ordinance 2. Variance 3. Zoning law 4. Building code

4

The Taxpayer Relief Act of 1997 provides that: 1. Residential property shall be treated the same as all other investments 2. A single homeowner who has lived in a principle residence for one of the past five years may sell and owe no income taxes on up to $250,000 of gain 3. Unmarried co-owners can each claim the $500,000 exemption 4. A married couple, having lived in a principle residence for two of the past five years, may sell and will owe no income tax on up to $500,000 of gain

4

The Torrens title system is all of the following EXCEPT: 1. Requires governmental registration and a certificate 2. Is used to verify ownership and encumbrances 3. Is not commonly used in the U.S 4. Is the same as title insurance

4

Which of the following is required in a tenancy in common relationship? 1. Each tenant must own 50% of the whole property 2. Tenants in common must obtain their interest by the same deed 3. Tenants will have the same rights of survivorship as in a joint tenancy 4. The unity of possession

4

You can transfer all your ownership in a property: 1. by signing a general warranty deed. 2. by signing a quitclaim deed. 3. by signing a special warranty deed 4. all of the above are true.

4

Your neighbor wants to pay you $1000 to have access across your property to the ocean. You write up an agreement which you both sign, saying he can create a five foot pathway along the north side of the property. Which of the following are true statements? 1. You have created an easement. 2. Your neighbor is the dominant estate. 3. You are the servient estate. 4. All of the above are true.

4

Zoning that requires that new structures to match an existing architectural style is called: 1. Exclusionary zoning 2. Inclusionary zoning 3. Cumulative zoning 4. Aesthetic zoning

4