Property Ownership
What may the tenant do with fixtures in an industrial property? (a)remove before moving out (b)leave when moving out (c)remove or leave at the choice of the lessor (d)you cannot attach fixtures
(a)remove before moving out Trade fixtures are pieces of property that a tenant affixes to a leased building or land for the purpose of conducting business. Trade fixtures differ from other fixtures in that they may be removed from the real estate (even if attached) at the end of the tenancy of the business, while ordinary fixtures attached to the real estate become part of the real estate. The business tenant must compensate the owner for any damages due to removal of trade fixtures or repair such damage. Remember, the lessee (tenant) pays rent to the lessor (landlord).
The holder of a life estate can do all of the following EXCEPT: (a)sell it. (b)lease it. (c)will it. (d)borrow against it.
(c)will it. A life estate only exists for the life of its owner or the life of some other designated person.
A property owner intends to build an addition onto the back of his house. He should check: (a) CC&Rs. (b) local building codes. (c) zoning ordinances. (d) all of the above
(d) all of the above.
Private restriction on the use of land may be created by: (a) private land use controls. (b) written agreement. (c) general plan restrictions in subdivisions. (d) all of the above.
(d) all of the above. Private restrictions are created by means of covenants, conditions and restrictions (CC&R's) written into real property instruments such as deeds and leases.
Archer, Baker and Charles hold title to real property in joint tenancy. If Archer were to die: (a)Baker and Charles remain joint tenants. (b)Baker and Charles become tenants in common. (c)Baker and Charles acquire Archer's interest by succession. (d)Baker and Charles become tenants in common with Archer's wife.
(a)Baker and Charles remain joint tenants. Upon the death of Archer, Archer's 1/3 interest passes to Baker and Charles, who are still joint tenants with each holding a 1/2 interest.
A judgment that has been recorded would be a(n): (a)involuntary lien. (b)superior lien. (c)equitablie lien. (d)inferior lien.
(a)involuntary lien. A judgment lien is an involuntary lien.
The liability of a limited partner for business debts is limited to: (a) the same as the general partners. (b) any amount agreed to in the partnership agreement. (c) his/her contribution to the firm. (d) the amount of the debts equally divided among all the partners.
(c) his/her contribution to the firm. Limited partners are not responsible for the firm's debts beyond their investment. At least one partner in such a firm must be a general partner with unlimited liability.
The legal seizure of property for sidewalks by the government is referred to as: (a)zoning. (b)escheat. (c)eminent domain. (d)lis pendens.
(c)eminent domain. Eminent domain is condemnation by government for public purposes, just compensation must be paid. Condemnation is part of the government's right of eminent domain.
The best way to test for radon gas in a building is with a: (a)charcoal radon test kit. (b)radon water test kit. (c)short term radon test. (d)spectrometer.
(d)spectrometer. A spectrometer is a scientific device that detects alpha particles that are emitted by radon gas and is considered to be highly reliable.
The word "percolation" refers to: (a)coffee pots. (b)water mains. (c)smog. (d)water table.
(d)water table. Percolation refers to the returning of water to the land. It results in the recharging of the underground water system called the "water table."
"A" sells a farm to "B". Crops are growing on the farm. "A" wants to harvest the crops. Who owns the crops? (a)A (b)B (c)Both A and B (d)Neither A nor B
(a)A Emblements are regarded as personal property even before harvest thus, a seller or tenant has the right to take the annual crop resulting from his/her labor, even if the harvest does not occur until after the sale or tenancy. Therefore, "A" has the right to re-enter the land to harvest any crops he/she had grown.
In what year did the requirement for disclosure of lead based paint in dwelling units become effective? (a)1976 (b)1980 (c)1996 (d)2000
(c)1996 Lead based paint laws went into effect in 1996. The law applies to owners, lessors, and real estate licensees. This law requires the owner or lessor of dwelling units built before 1978 to provide the buyer or lessee with the federal booklet entitled "Protect Your Family from Lead in Your Home."
Which of the following best describes an estate of inheritance? (a)life estate (b)lease (c)fee simple (d)all of the above
(c)fee simple An estate of inheritance is a fee simple estate handed down by will.
Personal property can never: (a) become real property (b) be hypothecated (c) be alienated (d) none of the above
(d) none of the above Personal property sometimes becomes real property when it is affixed to real property. It can be hypothecated, as when a person borrows on a car and hypothecates the title. It can be alienated or conveyed to someone else.
A parcel of land known as the servient tenement: (a)is the property benefited by the easement. (b)has an easement appurtenant attached thereto. (c)loses its status upon transfer of title. (d)is the property burdened by the easement.
(d)is the property burdened by the easement The servient tenement is the property burdened by the easement.
Which of the following is considered personal property? (a)land (b)physical improvements (c)growing trees (d)trust deed
(d)trust deed A mortgage or trust deed is personal property (lien).
All of the following are considered less-than-freehold estates EXCEPT: (a) an estate for years. (b) a life estate. (c) a periodic tenancy. (d) an estate at sufferance.
(b) a life estate A life estate is considered a freehold estate.
Which of the following is NOT necessary to establish title by adverse possession? (a)Possession open and notorious for five years (b)Paying taxes for five years (c)Use of the entire property (d)Against the true wishes of the owner
(c)Use of the entire property There are five requirements to acquire title by adverse possession: The possession must be by actual occupation and be open and notoroius. It must be hostile to the true owner's title. It must be under claim of right or color of title. Possession must be continuous and uninterrupted for a period of five years. Claimant must have paid all real property taxes levied and assessed for a period of five years continuously.
Smith and Jones own property as joint tenants. Jones, without Smith's knowledge or consent, encumbers his interest by borrowing $10,000. Before making any payments on the loan, Jones dies. Smith now owns the property: (a)totally, but subject to the $10,000 loan. (b)with the mortgagee as joint tenants. (c)in severalty and without liability for the mortgage. (d)with the mortgagee as tenants in common.
(c)in severalty and without liability for the mortgage. If one joint tenant dies, the surviving joint tenant becomes the sole owner of the property and is not liable to the creditors of the deceased who hold unforeclosed liens on the joint tenant's interest in the property.
The metal used by builders to prevent the seepage of water at certain joints in buildings is known as: (a)guttering. (b)draining. (c)stoving. (d)flashing.
(d)flashing. Flashing serves as protection against water entering the building framework at valleys in the roof and at other critical joints between the roof and wall sections. Flashing is usually made of galvanized steel. (See construction terms)
and therefore, could not be in severalty. 23. In order to find the architectural details of the footing, pier blocks, and sub-floor, a contractor or real estate broker would look at a(n): (a)plot plan. (b)floor plan. (c)elevation plan. (d)foundation plan. Your answer: (b) is not correct. The correct answer is d: A foundation plan provides details concerning size of footings, size and dimensions of piers, and construction measurements with details of sub-floor areas. 24. Which of the following must be recorded to be effective? (a)easement (b)judgment (c)grant deed (d)none of the above Your answer: (b) is correct. Although a judgment is valid when awarded, it is only effective when properly recorded. 25. The most important test of a fixture is: (a)method of attachment. (b)cost of installation. (c)adaptability of the item. (d)intention of the parties. Your answer: (b) is not correct. The correct answer is d: The intention of the parties, particularly the intention of the person attaching it usually governs. 26. Insulation materials are rated by their effectiveness according to their "R-value." The rating system is used to rate the material's: (a)heat replacement rate. (b)energy efficiency. (c)resistance to flow of heat. (d)resistance to moisture. Your answer: (c) is correct. The R-value rating system is used to measure a material's resistance to the flow of heat. 27. Which are specific liens? (a)Mortgage, attachment, tax liens, and mechanic (b)Mortgage, judgment, attachments, and tax liens (c)Mortgage, judgment, tax liens, and mechanic (d)Attachment, corporate bonds, decedent Your answer: (b) is not correct. The correct answer is a: A specific lien affects only a particular property, such as a mortgaged house. General liens apply to all the licenee's real and personal property. Liens can also be statutory or equitable, voluntary or involuntary. 28. A person who held a life estate leased the property for five years and then died. The new owners ordered the lessee to move out. The lease was: (a)valid for the five years. (b)valid until the man died. (c)invalid from the beginning. (d)invalid unless the deceased's executor confirmed it. Your answer: (b) is correct. The holder of the life estate could only lease what he had which was the use of the property until he died. 29. Who of the following may file a valid mechanic's lien? (a)architect (b)truck driver (c)subcontractor (d)all of the above Your answer: (b) is not correct. The correct answer is d: A mechanic's lien exists in favor of every person who contributes to the work of improvement. The Civil Code covers all mechanics (skilled workers), materialmen, contractors, subcontractors, lessors of equipment, artisans, architects, registered engineers, licensed land surveyors, machinists, builders, teamsters, and truck drivers. 30. After paying his general contractor in full, a property owner files a notice of completion. Which of the following is correct? (a)Mechanic's liens may not be filed. (b)A notice of nonresponsibility must be filed to protect the owner. (c)As long as work has not stopped, workers may file mechanic's liens. (d)Unpaid workers can file mechanic's liens up to 30 days after the owner files a notice of completion. Your answer: (b) is not correct. The correct answer is d: A notice of completion is filed to give public notice that a construction job has been completed and that mechanic's liens must be filed within 30 days. 31. When subdividers evaluate the topography of land, (a)hillside topography is highly considered. (b)hillside topography is least considered. (c)hillside topography property is less desirable than flat mainstream property. (d)topography is not a concern. Your answer: (b) is not correct. The correct answer is c: Topography is a graphic representation of the surface features or contour of a place or region on a map, indicating their relative positions and elevations. Flat land is cheaper and easier to build on. The subdivider can build more homes on flat land compared to hillside land. 32. What are the units used to measure the length of a nail? (a)common (b)mil (c)centimeter (d)penny Your answer: (b) is not correct. The correct answer is d: The original system was to measure the nail in relation to a silver penny. Thus, a ten-penny nail weighed as much as ten silver pennies. 33. If land has a servient tenement, it has a(n): (a)encumbrance. (b)flawed title. (c)encroachment. (d)all of the above. Your answer: (b) is not correct. The correct answer is a: A servient estate is land on which an easement or other right exists in favor of an adjacent property (called the dominant tenement). The land subject to the easement (servient tenement) is said to be encumbered. 34. A developer ordered two truckloads of backfill during the construction of a home. He ordered this for the purpose of: (a)foundation stability. (b)landscaping. (c)septic tanks. (d)drainage. Your answer: (b) is not correct. The correct answer is a: Backfill is earth or selected material such as aggregate, usually used to fill in around foundation walls after they are completed. 35. What is the unutilized space between the floor and ground of a structure called? (a)air space (b)belly space (c)crawl space (d)lee space Your answer: (c) is correct. The minimum required crawl space is 18". This is measured from the ground level to the bottom of the floor joists. (See construction terms) 36. Among the principles involved in the "Bundle of Rights" is the right to: (a)build, tax, destroy, and rebuild. (b)design, plan, implement, and profit. (c)possess, encumber, will, and sell. (d)all of the above. Your answer: (b) is not correct. The correct answer is c: The Bundle of Rights theory claims that ownership of a parcel of real estate embraces a great many rights, such as the right to Possess, Encumber, Will and Sell. Study aid: PEWS 37. If a client asks how they should take title, the broker should say: (a)as tenants in common. (b)as joint tenants. (c)as community property. (d)ask an attorney. Your answer: (b) is not correct. The correct answer is d: The question of how to take title should be referred to an attorney. 38. What is a commercial acre? (a)An acre minus space for streets and parking. (b)An acre minus space for warehouse structures. (c)An acre minus space for all housing accommodations. (d)An acre minus space for schools and emergency services. Your answer: (c) is not correct. The correct answer is a: A commercial acre is that portion of an acre of newly subdivided land remaining after dedication for streets, sidewalks, parks and so on. 39. Potable means: (a)drinkable. (b)water. (c)sewage. (d)land. Your answer: (b) is not correct. The correct answer is a: Potable means drinkable (safely and agreeably used for drinking). 40. The water department is a: (a)state governmental agency. (b)local government agency. (c)a quasi-governmental agency. (d)a privately owned agency. Your answer: (b) is not correct. The correct answer is c: A quasi-governmental agency is privately owned and has stock holders but is governmentally regulated. 41. The word "percolation" deals with: (a)coffee pots. (b)water mains. (c)smog. (d)septic tanks. Your answer: (b) is not correct. The correct answer is d: Percolation refers to the returning of water to the land. It is important that a septic tank system has good percolation. Percolation also refers to the recharging of the underground water system (water table). 42. Deed restrictions are: (a)encumbrances. (b)general liens. (c)specific liens. (d)all of the above. Your answer: (b) is not correct. The correct answer is a: CC&R's are encumbrances but not liens. 43. Riparian rights are best described as: (a)reasonable use of adjacent water. (b)exclusive use of adjacent water. (c)reasonable use of private water. (d)exclusive use of private water. Your answer: (b) is not correct. The correct answer is a: Riparian rights are the rights held in common with other riparian owners to make reasonable use of the waters that flow on, under or adjacent to a property, provided such use does not alter the flow of water or contaminate the water. 44. A "key lot" is: (a)the most desirable lot on the block. (b)the least desirable lot on the block. (c)the corner lot. (d)the lot which has the best orientation. Your answer: (b) is correct. A key lot is abutted by 3 or more parcels and is considered the least desirable because of loss of privacy and noise. 45. Which of the following is an example of involuntary alienation? (a)sale for unpaid taxes (b)eminent domain (c)foreclosure sale (d)all of the above Your answer: (c) is not correct. The correct answer is d: Involuntary alienation takes place when property is sold against the owner's will. 46. Corn crops are harvested once-a-year. Which theory applies? (a)doctrine of relation back (b)doctrine of constructive severance (c)doctrine of harvest and sale (d)doctrine of fruitful labor Your answer: (c) is not correct. The correct answer is b: The "doctrine of constructive severance" states that when growing crops (emblements) are sold or mortgaged, they are considered separated from the land (severed), even though they have not been severed from the land. If constructively severed, they would not transfer with the sale of the land. 47. 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. Your answer: (b) is not correct. The correct answer is d: Severalty is sole ownership of real property. 48. Property once zoned as commercial is re-zoned as residential. This is referred to as: (a)spot zoning. (b)split zoning. (c)down zoning. (d)up zoning. Your answer: (b) is not correct. The correct answer is c: Downzoning is action taken by local government to reduce the allowable density for a parcel of land, e.g., from commercial to residential. 49. All of the following statements are true about zoning EXCEPT: (a)Violations of zoning ordinances may render title unmarketable. (b)Zoning laws are generally enforced through building permits. (c)Zoning laws are concerned with regulating property values. (d)Zoning is retroactive. Your answer: (b) is not correct. The correct answer is d: Zoning laws are NOT retroactive. 50. A mechanic's lien filed today would undoubtedly take precedence over: (a)a mortgage filed yesterday. (b)an unrecorded deed delivered last week. (c)a tax lien to be filed tomorrow. (d)none of the above. Your answer: (b) is correct. A mechanic's lien dates back to the commencement of work. It does have precedence over deeds whether they are delivered or recorded. 51. Of the following, which lists the events in their proper order? (a)judgment, execution, attachment (b)judgment, attachment, execution (c)execution, judgment, attachment (d)attachment, judgment, execution Your answer: (b) is not correct. The correct answer is d: The plaintiff gets an attachment lien before entry of the judgment, and thus is assured of the availability of the defendant's property for eventual execution in satisifaction of the claim. 52. Which of the following liens covers all the property of a person? (a)specific lien (b)mechanic's lien (c)general lien (d)none of the above Your answer: (b) is not correct. The correct answer is c: General liens apply to all the licenee's real and personal property. 53. Freehold estate includes: (a)estates for years. (b)leasehold estates. (c)life estates. (d)all of the above. Your answer: (b) is not correct. The correct answer is c: The distinctive characteristic of the freehold estate is that they endure for an interminable duration. Thus, freehold estates consist of: (1) Estates in fee:
a. Absolute b. Qualified-by condition or limitation (2) Life Estates 54. Tenants in common have equal right of: (a)time. (b)title. (c)interest. (d)possession. Your answer: (c) is not correct. The correct answer is d: Tenancy in common is a form of concurrent ownership where two or more persons hold separate legal title in the same property through the unity of possession. This means that each co-owner has an undivided fractional interest in the land and a right to use the whole property. 55. A beam placed across openings for doors, windows to support the load from the structure above is called a: (a)sill plate. (b)lintel. (c)joist. (d)frame. Your answer: (b) is correct. A lintel is a horizontal support of timber, stone, concrete, or steel across the top of a door or window to support the load from the structure above. 56. Which of the following is neither a lien nor an encumbrance? (a)judgment (b)easement (c)homestead (d)trust deed Your answer: (b) is not correct. The correct answer is c: An encumbrance is an interest or right in real property which diminishes the value of the fee, but does not prevent conveyance by the owner. A lien is a type of encumbrance that creates a charge against property, whereby the property is used as security for the payment of a debt, referred to as attachment liens (e.g.