Unit 1 -4

Escheat

The reverting of property to the State when heirs capable of inheriting are lacking or there are no heirs. Abandoned property.

A section contains how many acres?

640 acres

C.A.R.

California Association of Realtors

Littoral rights

Belong to owners of land bordering a still body of water such as a lake. Right to use reasonable use of water on land.

A licensee must take 45 hours of continuing education in order to renew the license. 45 hours must include:

-Agency Trust Fund Handling -Ethics and Fair Housing -Risk Management and Management Supervision

Most parcels of land in the US are defined by what 3 methods

1. Metes and bounds 2. Rectangular survey system 3. Lot and block

Breakdown of Exam Topics

25%: Practice of real estate and disclosures. 17%: Laws of Agency and Fiduciary Duties 15%: Property Ownership , Land use controls and Regulations 14% Property Valuation and Financial Analysis 12% Contracts 9% Financing 8% Transfer of Property

How many sections are in a township?

36

Trustee's deed

A deed executed by a trustee when p[property is sold at the trustees sale. The trustees deed is a bargain and sale deed, which contains only implied warranties and no express warranties. Generally not insurable deed without separate documentation.

Gift Deed

A deed in which the consideration is love and affection . Such deeds are normally used to make a gift of real property to a relative or friend . Sometimes called a voluntary deed.

Sole Proprietorship

A method of owning a business. One person owns entire business and reports all profits and losses directly to owns taxes

Fictitious name

A names other than that of real estate license. Must get a fictitious business name statement filed with county clerk.

Riparian rights

Belong to owners of land boredering a river or other flowing stream. Do not own water but have the right to make reasonable use of it on their property.

The real estate law allows a business opportunity to be sold A. By a real estate licensee B. By the financial planner C. By a PRLS licensee D. Taking a listing

A. By a real estate licensee

Which statistic shows the greatest disparity between the state and the nation A. Home values B. Household income C. Population D. Growth

A. Home Values

Which of the following has the LEAST influence on California history and the real estate market? A. Natural Hazards B. Cultural Forces C. Political Forces D. Economic Forces

A. Natural Hazards.

There are three principal baselines and meridians in California. The intersection of the Humbolt Baseline and Meridian is in A. Northern California B. Central California C. Southern California D. A state other than California

A. Northern California

The test for a fixture does NOT include A. Origin of manufacturer B. Method of attachment C. Intent of the parties D. Relationship of the parties

A. Origin of the manufacturer

Today more then 50% of California is owned by A. Private Sector B. Federal Government C. Municiples D. State Government

A. Private sector

A system providing for surveying and describing land by reference to principal meridians and base lines is known as the A. Rectangular survey system B. Metes and bounds system C. Property address system D. Lot and block system

A. Rectangular Survey System was established in 1785 by the federal government, providing for surveying and describing land by reference to principle meridians and base lines. Also known as the government survey system.

A holder of which of the following ownership interests can devise her share of the property to someone else? a. Tenancy in Common B. Joint Tenancy C. Tenancy in Partnership CD. Community Property with rights of survivorship

A. Tenancy in common

Something that is used with the land for its benefit, such as a roadway or a waterway, is known as a? A. an appurtenance B. Personal Property C. A fixture D. Emblements

A. an appurtenance

Township

An area of 6 mile square ( 36 square miles)

Mortgage Loan Originator (MLO)

Any individual who, for compensation or gain, takes a residential mortgage loan app or offers or negotiates terms of a residential mortgage loan app must be licensed as

Appurtenances

Anything used with the land for the benefits of its owners, such as a roadway or waterway. "Run with the land" condo parking lot

Fixtures

Anything, including improvements, That is attached or affixed to the land.

Real Estate Commissioner

Appointed by governor and must have practiced real estate broker in last 5 years. In charge of enforcing real estate law.

A document used to transfer legal title from the trustee back to the borrower (trustor) after the debt has been repaid is called a A. Quitclaim deed B. Deed of reconveyance C. Payoff deed D. Deed of confirmation

B

A person who has executed a document can make a declaration, called a(n) __________, that the execution is the persons own act. A. Execution B. Acknowledgement C. Declaration D. Assertion

B.

In order to be valid, a grant deed does NOT require: A. a granting clause B. recording C. signature of the grantor D. a proper writing

B.

She executing a a grant deed, the grantor makes certain assertions about the property that the grantee must assume to be true, or the deed would be meaningless. These assertions are called A. Convenants B. Implied warranties C.Nonverbal assertions D. CC&R's

B.

The right of possession is restricted under a: A. fee simple qualified B. fee simple subject to a power of termination C. Freehold estate D. Life Estate with a right of reversion

B.

Prescription mostly nearly pertains to A. Use B. Easements C. Title D. Conveyance

B. Easements (Darcy driveway story)

Someone who receives real property is known as the: A. Mortgagee B. Grantee C. De visor D. Grantor

B. Grantee

What usually happens to a persons property who died intestate? A. It escheats to the state B. IT is distributed to his/her heirs C. IT is distributed according to will D. None of the above

B. Intestate means died with out a will or leaving a defective will. The intestate decedents property passes to heirs according to the laws of descent in the state where such real property is located.

Matt gives a life estate to Charlie. Matt's interest is A. Personal Property B. Revisionary C. Leasehold D. Remainder

B. Matt's interest reverts back to him after the death of Charlie

A method of land description where each parcel in a subdivision is identified by tract, lot, and block numbers is called? A. a plat mat b. lot and block c. metes and bounds d. a government survey

B. Plot and Block is a description of real property that identifies a parcel of land by reference to lot and block numbers appearing on maps and plats of recorded subdivided land.

All of the following are true about the professional trade organizations EXCEPT A. They help shape the law and the industry by establishing and enforcing standards of practice B. They enforce the real estate law much like the real estate commissioner C. They provide sources of information, training, and contact with other professionals. D. They provide an effective lobbying voice for their members.

B. Professional trade organizations have nothing to do with enforcing real estate laws.

The right if the future holder of what is current;y a life estate is a: A. fee simple defesible B. Remainder C. Fee simple conditional D. Life Property

B. Remainder

Four Unities of Joint Tenancy do NOT include: A. time B. severance C. interest D. Possession

B. Severance

California qualifies as the __________ largest economy in the world. A. Fourth B. Sixth C. Fifth D. Seventh

B. Sixth. Following the United States, china, Japan, Germany and the United Kingdom

While ownership of real property is usually transferred by deed, ownership of personal property usually is transferred by A. Land contract B bill of sale C. Trust deed D. voucher

B. Transfer of personal property is accomplished with a bill of sale

Spanish settlement of California began with the establishment of A. Military Forts B. Maritime Ports C. Missions D. Indian Reservations

C. Missions The major impetus to Spanish settlement of california was the establishment of missions

Accretion is the process of accumulating new soil A. next to a lake B. adjacent to the ocean C. Along a flowing body of water D. Close to baseline

C.

Free hold Estate includes: A. Estate for years B. LEasehold estates C. Life Estates D. All of the above

C.

Ownership in Severalty is: A. Concurrent ownership B. a joint tenancy C. a separate ownership D;. a community property

C.

A valid deed must contain A. Evidence of recordation B. A date C. A granting clause D.the signature of the grantee

C. A valid red must have a granting clause or some words tp indicate that the grantor wishes to transfer the property to the grantee. ( I hereby grant )

Personal property is usually transferred by a A. Will B. Deed C. Bill of Sale D. Purchase Contract

C. Bill of Sale

All of the following are factors considered when determining whether an item of personal property has become real property. EXCEPT A. Agreement between the parties B. Method of attachment C. Cost of the article D. Relationship of the parties

C. Fixtures are items of personal property which have become attached to real property, thus becoming real property.

The transfer of property by private grant is also called a A. Note B. Lien C. Grant Deed. D. Gift

C. Grant Deed

Under Spanish rule, land was owned primarily by the A. Missions. B Peasants C. King D. Conquistadors

C. King

A real estate brokers license may be obtained by any of the following except a A. Sole Proprietorship B. Corporation C. Limited Liability Company (LLC) D. Partnership

C. Limited Liability Company

The rectangular survey system is also known as the A. Metes and bounds system B. Torrents system C. Lot, Block and tract system D. US Goverment survey system

D US government survey system

Every real estate broker must be licensed by the department of A. Cooperation B. State C. Real Estate D. Housing

C. Real Estate

The term real estate means the same thing as A. Personal property B. Real Property C. Ownership D. Intangible personal property

C. Real Property

which of the following events is arguably the most important single event with the respect to the exploration and settlement of the western frontier and california? A. The Mexican/American War B. The treaty of Guadalupe Hidalgo C. The discovery of gold at Sutter's Mill D. The creation and upholding of Mexican law grants

C. The discovery of gold at Sutter's Mill Discovered in 1848 brought a new importance to America's westernmost frontier

the classical definition of property ownership is ownership of A. The surface only B. Horizontal and vertical areas above and below the property C. Everything below the property in the shape of an inverted pyramid with its apex at the center of the earth and infinite airspace D. All that one can perceive

C. This is the classical definition of land. Modern day practical theory prohibits exercising absolute control beyond a reasonable distance above and below the service of the land.

Which of the following deeds is a security instrument A. Quitclaim deed B. Grant Deed C. Trust Deed D. Sheriff's Deed

C. Trust Deed

After California became a state, the legislature redefined what was necessary to evidence transfer of california land. The modern evidence of transfer of ownership is: A. a physical aspect of the land (I.e. twig, dirt) stored at the county recorders office B. a date stamped photograph of the subject property filed at the county recorders office. C. a deed that is filed in the county recorder's office to show a transfer of ownership D. A physical possession

C. a deed that is filed in the county recorder's office to show a transfer of ownership

The highest form of modern land ownership oils known as: A. A life estate B. a real estate trust C. A fee simple absolute D. an estate for years

C. a fee simple absolute

CMBA

California Mortgage Bankers Association

If owner devotes land to public use, such as a roadway, a transfer occurs by

Common Law dedication

Emblements

Cultivated crops are call emblements. They are considered part of the land until time that they are harvested and then they become personal property

There is no requirement that a deed A. Be witnessed B. That the grantors signature be verified by a third person. C. Be supported by consideration D. All of the above

D

A court order directing the the county sheriff or another officer to satisfy a judgement out of the debtors property is called a A. Sheriffs sale B. Community sale C. Foreclosure D. Writ of execution

D.

Which of the following is NOT considered concurrent ownership: A. joint tenancy B. tenancy in common C. Community property D. Ownership in severalty

D.

Private land can be conveyed for public use or ownership by all of these methods EXCEPT A. Deed B. Statutory Dedication C. Common Law Dedication D. Adverse possession

D. Adverse Posession

California's real estate law is found in the A. Civil Code B. Financial Code C. Government Code D. Business and Professional Code

D. Business and professional code

Real Estate Licenses are renewable for a period of A. One year B. Two years C. Three years D. Four years

D. Four years

A large, deadly populated metropolitan area, consisting of a number of major urban areas is referred to as a(n) A. Apex statistical area B. County C. Urban religion D. Megalopolis

D. Megalopolis

A person holding title to property in severalty would most likely have A. a life estate B. an estate for years C. Ownership in common with others. D. sole ownership

D. Sole Ownership; Severalty is sole ownership of real property

Using only a street address to identify real estate can be problematic because A. Rural, undeveloped land my not have a street address. B. Street names may change C. A driveway may be moved. D. All of the above

D. Street names can change; driveways and access points can move; underdeveloped land may not even have a physical address.

Which of the following is NOT appurtenant to real estate? A. Growing trees B. Buildings C. Fences D. Trade fixtures

D. Trade fixtures

The transfer of property owned land to the public under approval of the MAP act is called

Dedication

Statutory Dedication

Dedication of an easement for public use under the provisions of the California Subdivision Map Act.

DRE

Department of Real Estate

The transfer of title to real estate by will is called?

Devise

Baseline runs

East- west

Federal and state government have the right to acquire property by

Eminent domain

California Real estate law originated from

English common law

Partnership

Every partner who performs activities that require a license must be licensed as a broker but there can be only 1 broker partner of record.

What happens when a salesperson changes brokers?

Former broker must notify DRE, must return salespersons license certificate w/I 3 days of termination and sign sales change. R/E form must be completed by sales person and new employer w/I 5 days.

Grant Deed

Grantor warrants to the grantee, that he has not previously conveyed the estate, that he has not encumbered the property and that he will convey any title to the property that he may later acquire.

Fee Simple Estate

Is what may be termed a "present possessory interest." It carries the maximum bundle of rights. The owner of a fee simple estate has the right to use property right now and indefinite period in the future.

accretion

Land area increased by force of nature. Land adjacent to a flowing body of water accumulates new soil.

Small Business

Less then 1 Million in annual sales and no more then 250 employees.

rectangular survey system/ Section and township system

Method used by the US Surveyor General to survey public lands. System bases descriptions of land on its distance from a baseline that runs east-west and meridian that runs north-south from reference point.

NAREB

National Association of Real Estate Brokers

May a broker - salesperson agreement transfer responsibility for all brokerage activities to the salesperson?

No, the broker cannot delegate primary responsibility for all brokerage activity, which must be lawfully authorized.

Meridian runs

North- South

A broker wanted to operate under the fictitious name MLB Realty. Before operating under the fictitious name the broker must

Obtain a DRE license bearing the fictitious name

Real estate Corp

One officer must be licensed broker and designated the responsible broker officer.

Equitable Estoppel

Prevents fraud by the present owner of a property and prohibits their refusal to transfer the property

Which type of deed would be used when purchaser pays off a loan secured by the real estate?

Reconveyance deed

The five major rights , which can be remembered by the acronym PUEDE, are known as the following

Right of POSSESSION Right of the property's USE Right of ENJOYMENT of the property Right to DISPOSE of the property Right to EXCLUDE others from the property

A holographic will does not have to be?

Witnessed

Granting Clause

Words in a deed of conveyance that state the grantor's intention to convey the property at the present time. This clause is generally worded as "convey and warrant"; "grant"; "grant, bargain, and sell"; or the like.

Warranty Deed

a deed that expressly warrants that the title is clear, without undisclosed claims or encumbrances and that the grantor has the legal ability to transfer the realty described. - Makes grantor liable for flaws.

Sheriff's Deed

document given to purchaser of foreclosed property

The right of government agency to take private property for public use is called

eminent domain

Writ of Execution

order of the court directing the sheriff to confiscate property of the defendant

Quitclaim Deed

transfers only whatever interest the grantor has in the property and does not warrant that the grantor has any interest

Reconveyance Deed

used by a trustee to return title to the trustor

Trust Deed

used when property serves as security for a debt