Legal Aspects of Real Estate

A person with a real estate salesperson license has delinquent child support payments and is an obligor on the California Department of Child Support Services list. If the child support remains unpaid when the salesperson renews his or her license, what type of license will the CalBRE issue?

150 day temporary license

The statute of limitations places a limit on the length of time a plaintiff has to file a lawsuit. What is the time limit to file an action on any written contract?

4 years

James plans to move to Florida and is currently renting an apartment on a weekly basis. When James gives the landlord a notice of termination of tenancy, what is the minimum time for the advance notice?

7 days (must give notice for number of days the lease is renewed)

Jeff and Marian sign a real estate purchase agreement by which Jeff agrees to buy Marian's house. The contract states that Jeff will deposit $1,000 into escrow upon execution of the agreement and that if the parties are unable to conclude the sale for any reason, Marian will retain the $1,000 as liquidated damages, less the escrow costs to that point. If the results of the termite inspection show that there is damage to the property and Jeff cancels the sale as a result, how is a court likely to treat the $1,000?

A court would likely find that the $1,000 payment to Marian is a valid liquidated damages provision.

What are the legal remedies to obtain relief from a private or public nuisance?

Abatement Injunction Money damages

What tests are used to determine whether property is a fixture or personal property?

Adaptation of the property Intent of the parties for the particular property Property's method of attachment

What is another term for a coterminous owner?

Adjoining landowner

Jim is in the market for a new house and visits a listed property owned by Alice. After his tour of the property, he sends her a written offer to buy for a few thousand dollars less than her listing price. Alice looks it over and decides that it is a reasonable offer and mails her acceptance to Jim. When she hears nothing for two weeks, she calls him and he tells her, "I never received your acceptance. And I've decided to revoke my offer to buy your house." Alice, however, has a copy of her letter stating her acceptance and the certified mail receipt. The postal service has no record that the letter was delivered, however, even though Alice can prove she mailed it. Do they have a contract?

Alice's mailed acceptance created a binding contract even though Jim never received it, according to the "mailbox rule."

What's included in the definition of real property?

Anything immovable by law Anything appurtenant to the land Anything permanently attached to the land

Bill wants to allow his friend Robert to use his land occasionally to do such things as hunt or fish. Nevertheless, Bill also wants to be able to revoke Robert's use of the land at any time. What is the best way for him to accomplish this?

Bill should give Robert a license

What is a type of agency law?

Both common law agency and statutory law agency

Who owns navigable non-tidal waters in California?

CA

What is the name for the limitations usually imposed on property in newer subdivisions?

CC&Rs

If the boundary is a road, where is the boundary line situated?

Center of the road

When a salesperson is discharged for a violation of any of the provisions of the Real Estate Law, the employing broker must immediately file a __________ with the Commissioner.

Certified Statement of Facts

Which federal law prohibits race discrimination in the sale of commercial real estate?

Civil Rights Act of 1866

Which of the following, taken together, constitute the Fair Housing Act?

Civil Rights Act of 1968 and the Fair Housing Amendments Act

The Truth in Lending Act is Title 1 of the:

Consumer Credit Protection Act of 1968.

The payment of non-collectable court judgments against licensees who committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction, is assured by the:

Consumer Recovery Account

The characteristic of perpetual succession pertains to a:

Corporation

The formation, operation, and dissolution of partnerships, corporations, limited liability companies, and limited partnerships in the State of California is governed by the California:

Corporations Code

Angela, Bruce, and Caroline buy some property and hold title in joint tenancy. Without Angela's or Caroline's permission, Bruce sells his share to David. What is the status of David's share after the sale?

David is a tenant in common as to the joint tenancy between Angela and Caroline.

Which function of the deposit receipt is described by a buyer and a seller agreeing to mediation by a neutral mediator?

Dispute resolution

According to California policy, what is the highest use of water?

Domestic purposes

What is an uninvited interference with a person's rights in real property?

Encroachment Nuisance Trespass

What is the commonality of unilateral rescission, specific performance, and reformation?

Equitable remedies for breach of contract

The __________ establishes procedures for correcting mistakes on a person's credit record and requires that a consumer's record only be provided for legitimate business needs.

Fair Credit Reporting Act

What is the commonality of accretion, erosion, and reliction?

Gradual changes to the land

Which deed has only two implied warranties of title?

Grant deed

Which of the following is not a recognized method of involuntary alienation in California?

Grant deed

Which will does not require two witnesses?

Holographic Will

Charlotte and Vanessa, both unmarried, enter into a purchase of real estate as joint tenants. Which event would convert that into a tenancy in common?

If either one conveys to herself as a tenant in common.

In which way is an agency not terminated?

Incapacity of the listing salesperson

Intentionally dumping refuse on another person's property is known as an:

Indirect trespass

What is one of the risks of a broker using a net listing?

It creates the potential for a conflict of interest if the offer for the property comes in at or just above the seller's minimum sales price.

The parol-evidence rule refers to which of the following?

It is a rule that bars the introduction of most evidence regarding the oral negotiations of the parties that occurred prior to the execution of a written contract.

The court case ______________ prohibits discrimination based on race by upholding the 1866 Civil Rights Act and the 13th Amendment to the U.S. Constitution, which prohibits slavery.

Jones v. Mayer

What are the mandatory elements of a general plan?

Land use, housing, and public safety

Which of the following are among the mandatory elements of a general plan?

Land use, housing, and public safety

What is correct regarding a California landowner's right to sunlight and air circulation or to a view over adjoining lands?

No landowner has an absolute right to sunlight and air circulation or to a view over adjoining lands.

In which court case did the property owner successfully challenge the restrictive conditions on development imposed by the public agency?

Nollan v. California Coastal Commission

If it appears that a tenant has deserted his or her leased property, the manager should follow state laws and issue a:

Notice of Belief of Abandonment

What document should an assignor use to be released entirely from any obligations or secondary liability?

Novation

Oliver made Brad an attractive offer to sell property that Brad was interested in buying. Brad was uncertain whether to accept, so he paid Oliver $100 to keep his offer irrevocable for ten days. What is the arrangement between Brad and Oliver?

Option contract

4 Powers of the Government over private ownership:

P for Police Power E for Eminent Domain T for Taxation E for Escheat

What are emblements?

Personal property of a tenant farmer, even prior to harvest

Trade fixtures used in a trade or business are:

Personal property of the tenant

What is the legal process to determine creditors' claims and beneficiaries' interests in an estate upon the owner's death?

Probate

When a person gains a benefit from a previously unauthorized act of an agent and does not deny the authority to act after learning about it, this constitutes an agency created by:

Ratification

The Real Estate Commissioner appoints a __________ for consultative purposes on issues involving the Bureau of Real Estate.

Real Estate Advisory Commission

Jack has sued Jill and obtained a money judgment against her. In order to obtain a lien on Jill's property, what should Jack do?

Record an abstract of judgment in each county where Jill owns real property.

Martin purchased a parcel of land on which he intends to build a house. Which of the bundle of rights pertains to this activity?

Right of use

Steve, a broker, finds a buyer for a property and convinces the person to buy the property. The listing agreement expires before the sale is completed. However, the buyer whom Steve located eventually does complete the transaction and Steve was entitled to a commission. Which of the following allowed Steve to collect the commission?

Safety clause

A(n) __________ lease involves the original lessor and a new tenant called a sublessee.

Sandwich

Flood hazard boundary maps identify the general flood hazards within a community. On the flood hazard boundary map, what is the name for the area that falls with a 100-year flood boundary?

Special Flood Zone

Which of the following is the best way to describe a property tax lien?

Specific Involuntary Lien

When analyzing whether an agent relied on reasonable skill and competence in a real estate transaction, the courts use __________ to make this determination.

Standard of care

Which state law requires the preparation of a public report for all major subdivisions?

Subdivided Lands Law

The rights to natural resources, such as minerals, oil, and gas, are part of the:

Subsurface rights

What is the measurement of a tract of land with its boundaries, contents, and location relative to other property?

Survey

Paul, Ted, and Donna purchase a parcel of real property. Because Paul contributed $10,000 to the purchase price while Ted and Donna each contributed $5,000 apiece, Paul holds a 50% share while Ted and Donna hold a 25% share apiece. Without knowing anything more, it is clear that they hold title as:

Tenants in common

Why did Congress rely on the Commerce Clause instead of the Fourteenth Amendment as the basis for the Fair Housing Act?

The Fourteenth Amendment has a state action requirement, which means it generally cannot be the basis for legislation against private acts of discrimination.

A lender refuses to make loans to real property in a certain part of a city. Which of the following statutes has the lender likely violated?

The Holden Act

If a seller refused to accept a full-price offer that met all terms of an exclusive authorization and right to sell listing, which of the following legal actions would most likely result from this?

The broker could sue for his or her commission.

What are the three tests used by the Federal Trade Commission to determine if something constitutes an unfair business practice?

The harm of the injury outweighs a countervailing benefit. The practice causes a substantial consumer injury. The consumer could not reasonably avoid the injury.

What is true about a change in zoning that makes a use nonconforming?

The owner will be allowed to continue the use if it is not a nuisance because the nonconforming use was created prior to the new zoning laws.

A real estate salesperson receives a complaint by a former client who is accusing her of misrepresentation of facts when purchasing a home. What could happen?

The real estate salesperson ignores the complaint, resulting in a default judgment

What element does the agreed-boundary doctrine require?

Uncertainty as to the boundary line An agreement between the owners as to the boundary line Five years acceptance of the agreed boundary line

The __________ declares that real estate contracts can be electronically written and signed.

Uniform Electronic Transactions Act

Which of the "four unities" is the only one that a joint tenancy and a tenancy in common both share?

Unity of Possession

Henry and Wanda are married and hold the property as husband and wife. Unbeknownst to Wanda, Henry leaves "all my property" to Sheryl in his will. When Henry dies, what will happen to the property?

Wanda and Sheryl will each own a ½ interest as tenants in common.

Gayle is a senior citizen who has lived in her neighborhood for over 40 years. Unfortunately, the neighborhood has deteriorated over the years. Gayle's next-door neighbor uses his house to manufacture and sell methamphetamine drugs, which has resulted in several arrests. However, Gayle's house has never been used to sell or manufacture any controlled substances. There have been several incidents involving drug users, for which Gayle has had to call the authorities to deal with undesirable people causing a disturbance. When selling her home, does Gayle have any obligations to disclose on the Transfer Disclosure Statement (TDS) what she knows about her neighbor?

Yes, because the police activity and violence are facts that could reasonably be material to a potential buyer.

Alain is a French citizen who resides in California. He owns a home that he wishes to sell to his son, Francois, who was born here and is a U.S. citizen. He intends to sell the home to his son at fair market value, which is currently $785,000. Do Alain and Francois have any special considerations because of their respective citizenships?

Yes, under FIRPTA, a portion of the sale will be diverted to the state and federal tax agencies.

A security instrument is best defined as:

a document that is given by the borrower to hypothecate (pledge) the property to the lender as collateral for the loan.

The statute of frauds requires that contracts for the sale of real estate must:

be in writing.

Proposed legislation that undergoes debate and is voted on by the House of Representatives and the Senate is called a:

bill

The Civil Rights Act of 1968 expanded protected classes to include not only race, but also:

color, national origin, religion, and sex.

Many areas of the law, such as agency law, property law, and tort law, are governed extensively by _________ law.

common

The commonality of party walls, division fences, and line trees is that they are considered:

common boundary improvements.

The Comprehensive Environmental Response, Compensation, and Liability Act is also known as the Superfund because it:

consists of two trust funds used for cleaning up properties.

A broker can violate the antitrust laws relating to real estate, by participating in any of the following:

dividing the market. group boycotting. price fixing.

What is the intentional misrepresentation or concealment of a material fact to persuade someone to take action?

fraud

What could defeat an adverse possessor?

giving the adverse possessor a license Fencing the property and keeping gates locked Posting a notice at 200-foot intervals along the perimeter pursuant to Civil Code Section 1008

coterminous

having the same boundaries or extent in space, time, or meaning.

After giving proper notice, a tenant vacated the apartment. There was no unpaid rent or damage other than normal wear and tear. The security deposit:

must be returned within 21 days, with any deductions accounted for.

A federal agency that wants to undertake an activity on federally-owned property in California:

must comply with the procedures under the National Environmental Policy Act.

A statutory nonemployee is considered self-employed and receives compensation for the:

number of sales closed and commissions earned.

Under the per stirpes distribution provided for under California law, the children:

of a deceased person have the right to receive a portion of an estate by right of representation.

A creditor with a recorded abstract of judgment can force the sale of a homestead property to satisfy a money judgment:

only if the equity exceeds the homestead exemption.

Patrick wants to change the use of a property he owns, so he will have to go through the CEQA process. The city planning department's staff report for his project concludes that there will be no environmental impacts from the changed use. Patrick will probably:

receive a negative declaration for the changed use and proceed with the project

The following legal description was found in a deed: "Lot 17, Block 5, Citrus Acres, County of Orange, State of California." This is an example of a(n) __________ description.

recorded plat

Under the Fair Housing Act, lenders are prohibited from:

refusing to make a mortgage loan. imposing different terms or conditions on a loan. setting different terms or conditions for purchasing a loan.

Under a __________ power of attorney, the agent has authorization to perform specific tasks.

special

What is an implied contract?

the agreement is demonstrated by conduct rather than by words

What is an express contract?

the parties declare the terms of the agreement and put their intentions in words, either orally or in writing

A person holding only a salesperson's license who inserts complicated clauses that require legal expertise to form contracts might well be committing:

the unauthorized practice of law.

Most real estate transactions in California use a grant deed rather than a general warranty deed because:

title insurance is almost universally used for real estate transactions in California.

If a licensee causes damage due to negligence, it is considered a(n):

unintentional tort

Linda is a resident of a mobilehome park. She is outspoken on various issues that have arisen with the park management over the years, such as how much landscaping should be done and noise from other units in the park. Linda is not behind in rent and she has not violated any of the park's rules or the rental agreement, but the park manager, tired of Linda's personality, has served her with a 60-day notice to terminate her tenancy. The park manager's action is:

unlawful because a lessor who manages a mobilehome park cannot give a tenant a notice of termination unless the tenant has violated a park rule, is behind on the rent, or has violated a term of the rental agreement.

Voidable means:

valid unless set aside by one of the parties.