RE Questions and Answers

An instrument which usually transfers possession of real property, but does not transfer ownership is: A. A mortgage B. A Sublease C. A Security agreement D. An easement

B. A Sublease

Recorded title to a parcel of real property was vested in Mary Wilson, a single woman. After her marriage to John Roberts, she executed a deed to the property only in the name of Mary Roberts, a married woman. The discrepancy in the grantor's name is: A. Immaterial so long as the property is adequately described B. A defect which may cause a cloud on the title C. Cured after the deed is on freehold for one year D. A defect which could cause separate property of both spouses to become joint tenancy property

B. A defect which may cause a cloud on the title

A lien may be created by recording: A. A notice of non-responsibility B. A mortgage C. An easement D. A restriction

B. A mortgage Lien - trust deed or mortgage (claim for money)

The Johnson's purchased their home from Crow. As Part of the purchasing price, Crow took back the Johnson's note secured by a mortgage on the property. This created: A. An equitable lien B. A specific lien C. A general lien D. An involuntary lien

B. A specific lien Specific lien - trust deed (or Mortgage)

In real property law, alienation has a meaning which is most opposite to: A. Abrogation B. Acquisition C. Avulsion D. Amortization

B. Acquisition

The liquidation of a financial obligation on an installment basis is commonly termed: A. Condemnation B. Amortization C. Acceleration D. Conveyance

B. Amortization Amortization - Liquidation

Which of the following is always required in joint tenancy ownership of property? A. THE CLAUSE, "With right of survivorship" B. Equal shares of interest in the property by each of the joint tenants C. A husband and wife relationship D. All of the above

B. Equal shares of interest in the property by each of the joint tenants

If a person leased a store for only six months, that person would have an: A. Estate from period to period B. Estate for years C. Estate at will D. Estate at sufferance

B. Estate for years

The main purpose of a deed is to: A. Provide evidence of the terms of a real property transaction B. Evidence the change in title or transfer of an interest in real property C. Identify the parties involved in a real property transfer D. Provide a written instrument that can be recorded

B. Evidence the change in title or transfer of an interest in real property

After Mr. Gardner purchased his home, he discovered, by survey, that his neighbor's garage was three feet over on his newly-acquired property. This disturbed him greatly. For remedy, if a friendly settlement cannot be reached, he should bring civil suit against: A. The broker, for failure to disclose the encroachment B. His neighbor C. the real estate commission D. The title company, for failure to show the encumbrance on the standard form title report

B. His neighbor Encroachment - sue neighbor

When financing a home with a long-term loan, if equal monthly payments are made, the amount of each payment applied to the outstanding principal balance will: A. Decrease while the interest payment increases B. Increase while the interest payment decreases C. Increase by a constant amount throughout the life of the loan D. Decrease at a constant rate

B. Increase while the interest payment decreases Level payment - payment applied to principal increases

All of the following would be classified as real property, except: A. Unextracted crude oil B. Leasehold estates in residential properties C. Uncultivated grove of trees D. Easements appurtenant

B. Leasehold estates in residential properties

Which of the following is not required to create a lease for more than one year: A. It must be in writing B. Lessor and Lessee must both sign it always C. A termination date D. The amount of rent and the method of payment

B. Lessor and Lessee must both sign it always

What does the term "quiet enjoyment" in a lease mean: A. Nuisance created by adjacent landowners B. Possession without disturbance from owner of paramount title C. Free from all encumbrances D. None of the above

B. Possession without disturbance from owner of paramount title

Zoning laws are considered legal because of: A. The action of local planning boards B. The police power of governments C. The ease of enforcement D. The fact that they are not affected by intrastate commerce

B. The police power of governments

If five people own property as joint tenants: A. They need not own equal interest in the property B. There is still only one title to the whole property C. And one of the owners dies, his heirs become tenants in common with the surviving co-owners D. Each co-owner has separate legal title to his undivided interest

B. There is still only one title to the whole property

When real property is held by husband and wife as community property an agreement to sell that property which has been signed by only one spouse would be considered to be: A. Illegal B. Unenforceable C. Binding D. A violation of the Statute of Frauds

B. Unenforceable

If there has not been an agreement to the contrary, all of the following would qualify as a negotiable instrument, except: A. An installment note B. A personal check C. A mortgage securing a promissory note D. A bank draft

C. A mortgage securing a promissory note Negotiable instrument - not a mortgage

The term of some real estate loans provide that the interest rate may be increased or decreased depending on money market conditions. We call this type of loan: A. An interim loan B. A loan which is secured by a short term land contract C. A variable interest rate loan D. A fluctuating market condition loan

C. A variable interest rate loan Variable interest - rate can increase or decrease

As used in real property law, "tenancy" most nearly means: A. The landlord-tenant relationship B. The obstinacy of a holdover tenant C. The mode or method of holding title to real property by a lessee or owner D. None of the above

C. The mode or method of holding title to real property by a lessee or owner

Which of the following does not directly affect the level and movement of mortgage interest rates: A. The demand for funds B. The supply of funds C. The rate of unemployment D. The inflation rate

C. The rate of unemployment Interest rates affected by - Not unemployment

"Intestate Succession" occurs when: A. The deceased leaves only a holographic will B. Not all heirs are named in a formal will C. There is no will D. Any of the above situations will result in interstate succession

C. There is no will

Private restrictions on real property can be written either as a condition or as a covenant. Which of the following is most correct concerning such restrictions: A. When recorded, they become public restrictions B. Violation of such restrictions are subject to criminal prosecution C. Violation of a condition can result in penalties which are more severe, and can result in loss of title D. All of the above are true

C. Violation of a condition can result in penalties which are more severe, and can result in loss of title Condition - Penalties are more severe

In the sale of real property which is a part of the estate of a deceased person, which of the following would normally determine the amount of commission to be paid to the broker: A. The administrator or executer of the estate B. The California Real Estate Commission C. Court order D. The board of directors of the local multiple listing service

C. court order

Which of the following would be considered real property? A. A maturing grape crop which is under a sales contract and to be harvested later B. Trade fixtures that a tenant has installed but which are removable without damage C. A refrigerator in a mobile home that is not attached to a permanent foundation D. A bearing wall in a single-family house

D. A bearing wall in a single-family house

A valid deed must contain: A. An acknowledgement B. A recital of consideration C. The grantee's signature D. A granting clause

D. A granting clause

When the rent charged is based on the gross sales of a business, the lease is correctly termed: A. A net lease B. A gross lease C. A voidable lease D. A percentage lease

D. A percentage lease

Which of the following "run with the land": A. Easements appurtenant B. Covenants C. Stock in mutual water company D. All of the above

D. All of the above

Which of the following would be the best and most complete definition of the term "encumbrance": A. The degree, quantity, nature, and extent of interest which a person has in real property B. The use of property by a debtor to offer a creditor security for a debt C. Any action taken relative to property, other than acquiring or transferring title D. Anything which affects or limits the fee simple title to property

D. Anything which affects or limits the fee simple title to property Encumbrances - limits title

When a dam broke, the flow of water cut away a strip of land from the riverbank. This would be known as: A. Accretion B. Alluvion C. Reversion D. Avulsion

D. Avulsion

In order for a grant deed to be effective in transferring title to property, it must: A. Include a document transfer tax statement equal to $.55 per $500 of value B. Be recorded by the county recorder C. Be notarized D. Be delivered and accepted

D. Be delivered and accepted Deed essentials - delivered and accepted

Adams sold his house to Brooks, who did not record the deed, but took up residency there. Adams then sold the same property to Carr, who received county recorder's records, but did not examine the property. Adams gave Carr a deed, which Carr recorded. Which of the following would be true concerning title to the property: A. Carr and Brooks are co-owners of the property B. Carr now owns the property, because he recorded his deed first C. Carr has recourse against Brooks for failure to record D. Brooks maintains title

D. Brooks maintains title First to possess or record gets property

To alienate title to property, one: A. Encumbers the title B. Clouds the title C. Records a homestead D. Conveys title

D. Conveys title

What is the meaning of a quiet title action: A. Purchasing property through a dummy transaction B. An action to quiet a noisy tenant C. Foreclosure action D. Court action to remove a cloud on the title

D. Court action to remove a cloud on the title

A deed: A. When recorded, gives actual notice of its contents B. If recorded, will not give the grantee the usual protection of the recording laws if it is a quitclaim deed C. Can only be recorded in one country D. Does not have to be recorded to transfer title

D. Does not have to be recorded to transfer title

Title to real property can be acquired by an individual by all of the following methods, except: A. Patent B. Prescription C. Succession D. Escheat

D. Escheat

A promissory note is: A. Used as security for a trust deed B. Always recorded as proof of debt C. Always used when real estate is sold D. Evidence of a debt

D. Evidence of a debt Promissory note - evidence of debt

A quitclaim deed to a parcel of real property conveys only the present interest, right and title of the: A: Property owner B. Occupant C. Grantee D. Grantor

D. Grantor

Mr. James sold his land which had an easement appurtenant for a road. The deed which the buyer received contained an adequate description of the land, but made no reference to the easement. The buyer: A. Has a clouded title B. Takes title to property which is landlocked C. Loses the easement to the servient tenement D. Has the same right to the easement as the seller did

D. Has the same right to the easement as the seller did Appurtenant easements - Buyer has same rights

An easement differs from a license in that a license: A. Must be created by written instrument B. Is of indefinite duration C. May be assigned D. May be revoked

D. May be revoked

A tenant in good standing under a valid five-year lease which makes no mention of assignment of sub-leasing, may legally do which of the following: A. May sublease the property to another, but only with the consent of the lessor B. May assign, but cannot sublease to another C. May sublease to another, but can assign only with the consent of the lessor D. May sublease or assign the leasehold to anyone, since the lease made no mention of any restrictions on such action

D. May sublease or assign the leasehold to anyone, since the lease made no mention of any restrictions on such action

Jones conveyed his ranch to Brown using a land contract. The ranch was serviced by a mutual water company, and Jones was a stockholder in the company. The stock which Jones owned was appurtenant to the land. Does Brown have to enter into a separate contract for the stock of the mutual water company: A. Yes, since stock is always personal property and therefore not included in land contracts B. No, because land in California cannot be sold without water rights C. Yes, because real property is not always accompanied by water rights D. No, because the stock was appurtenant to the land and therefore part of the real property and part of the land contract

D. No, because the stock was appurtenant to the land and therefore part of the real property and part of the land contract

In tenancy in common, there is always a unity of: A. Time B. Title C. Interest D. Possession

D. Possession

Of the following, which best defines a fee simple estate: A. Title in the owner without limitations B. An estate for years C. A life estate D. The most interest that one can hold in land

D. The most interest that one can hold in land

The two requirements which governmental units must observe in the exercise of the power of eminent domain are: A. The proposed use must be both practical and public B. The inconvenience to the owner must be greater than the benefit to the public, and the government must justify the taking C. The proposed use must be practical, and just compensation must be paid to the owner D. The proposed use must be public, and just compensation must be paid to the owner

D. The proposed use must be public, and just compensation must be paid to the owner

A joint tenant can dispose of an interest held in real property by all of the following ways, except: A. Lease B. Sale C. Gift D. Will

D. Will

A real estate broker may have difficulty with personal property because its ownership rights and identification may be difficult to determine. This is because personal property can: A. Be alienated B. Be hypothecated C. Become real property D. All of the above

D. all of the above

Which of the following is not essential to a valid deed: A. Parties which are competent to convey and capable of receiving the property B. A granting clause C. it must be in writing D. it must be acknowledged

D. it must be acknowledged Deed Essentials - Not acknowledged (not notarized)

An easement on real estate would terminate if the holder of the dominant tenement recorded a: A: Deed of reconveyance B. Notice of nonresponsibility C. Defeasance clause D. quitclaim deed

D. quitclaim deed Termination of easements - Dominant tenement records quitclaim deed

The personal, revocable, and un-assigned permission or authority to do one or more acts on the land of another without possessing any interest therein, is the definition of: A. A License B. An easement C. An encroachment D An option

A. A license

When a tenant voluntarily agrees to vacate a rented property, with no intention of honoring obligations on the lease, this is known as: A. Abandonment B. Unlawful detainer C. Notice to quit D. Constructive eviction

A. Abandonment

Unless otherwise specified, the rights to minerals which lie beneath the surface of land: A. Are automatically transferred with the sale of the real property B. Cannot be leased C. Are kept by the original owner D. Cannot be conveyed apart from the real estate surrounding the minerals

A. Are automatically transferred with the sale of the real property

A "GPAM" mortgage loan provides for: A. Deferment of certain payments on the principal during the early period of the loan B. Adjustment of its interest rate as market interest rates change C. Renegotiation of the interest rate on the note D. A long-term loan consisting of a series of short-term notes

A. Deferment of certain payments on the principal during the early period of the loan GPAM Loan - Defers some principal payments

Which of the following is not a characteristic of a fee simple title: A. It is always free of encumbrances B. It is of indefinite duration C. It is transferable with or without consideration D. It is transferable by will or intestate

A. It is always free of encumbrances

In which of the following ways does real property differ from personal property: A. It is immovable by law B. In the method conveyed C. In the acquisition and transfer of title D. In the type of loan instrument

A. It is immovable by law

Which of the following would cause a grant deed to be invalid at its inception: A. Legal incompetence of the grantor B. Failing to insert the clause "to his heirs and assigns" following the name of the grantee C. It was signed and dated on a legal holiday D. None of the above

A. Legal incompetence of the grantor

A grant deed is deemed by law to be executed at the time it is: A. Signed by the grantor B. Delivered to the grantee C. Recorded D. Delivered to escrow

A. Signed by the grantor

May owned a life estate in a home measured on her own life. She leased the property to Rees for five years. Shortly after she executed the lease, May died. The lease was: A. Valid for as long as May lived B. Valid for the full five years C. Invalid because May could not lease the property since she only owned a life estate D. None of the above

A. Valid for as long as May lived

James sold Blackacre to woods. At the time, Blackacre had an appurtenant easement across Whiteacre, which was owned by Sommers. When woods tried to use the easements, Sommers protested. Which of the following is correct? A. Sommers owns the servient tenement and his consent must be obtained for woods to use the easement B. An appurtenant easement always passes when the property is sold C. James owns the dominant tenement and the easement upon it D. James owns the easement and can give it to anyone

B. An appurtenant easement always passes when the property is sold Appurtenant easements - Buyer has same rights

Accretion would result in the acquisition of title to real land by which of the following: A. An adverse possessor B. An owner who acquired land by natural causes C. The country government following a condemnation action D. None of the above

B. An owner who acquired land by natural causes

If the purchasers of real property have the title to the property placed in the name if Charles Green and Bonnie Green, husband and wife, it is presumed that they hold title to the property as: A. Joint tenants B. Community property C. Tenants in common D. Severally

B. Community property

The recording of an instrument gives: A. Actual notice B. Constructive Notice C. Positive Notice D. Passive Notice

B. Constructive Notice Constructive notice - Given by recording

When a judgement is duly recorded, subsequent buyers and innocent purchasers who are ignorant of the recording have received: A. Actual notice B. Constructive notice C. Voidable notice D. Contingent notice

B. Constructive notice Constructive notice - given by recording

Following proper action by the authorities, the zoning on a vacant lot was changed from "commercial" to "residential." Such an action is called: A. Retroactive zoning B. Down zoning C. Spot zoning D. Blended zoning

B. Down zoning Commercial to residential zoning - down zoning

The five items to determine if something is a fixture are: A. method, acceptability, relationship, intention, and agreement B. Method, adaptability, relationship, intention, and agreement C. Method, acceptability, reaction, intention, and agreement D. Measured, adaptability, relationship, intention, and agreement

B. Method, adaptability, relationship, intention, and agreement (MARIA)

The owner of a single lot is trying to show that exceptional circumstances concerning an intended use of the property are applicable to his property. The owner is also trying to show that the exception is not detrimental to the public. The owner would probably petition the planning commission for: A. Redevelopment B. Variance C. Building permit D. Rezoning

B. Variance One lot - variance

When renting residential property, the amount of a security deposit which a lessor may legally charge from a lessee is determined in part by which of the following: A. The number of square feet in the building B. Whether the unit is furnished or not C. The number of children or pets D. The number of adults who will reside in the unit

B. Whether the unit is furnished or not

An acknowledgment may be taken by a notary public who is: A. The grantee is a deed which is being acknowledged B. The mortgagee in a mortgage being acknowledged C. An employee of a corporation who has executed an instrument being acknowledged, if he is not personally interested D. The grantor in a deed being acknowledged

C. An employee of a corporation who has executed an instrument being acknowledged, if he is not personally interested Acknowledgement - employee without interest

Mr. Donaldson owns real property in severalty. This term is used to legally describe ownership by: A. Several tenants in common B. Remainderman C. An individual D. Co-tenants

C. An individual

When owners of real property hold title as tenants in common A. The one who lives the longest always winds up as the sole owner B. The individual owners give up their right to will their interest in the property C. Each of the co-owners' interest may be conveyed separately D. All co-owners must own an equal interest in the property

C. Each of the co-owners' interest may be conveyed separately

When a governmental body takes private real property for necessary public use, certain legal processes must be followed. Such a taking is an exercise of the right of: A. Police power B. Escheat C. Eminent domain D. None of the above

C. Eminent domain

Another name for an estate of inheritance is: A. Fee simple defensible B. Estate at sufferance C. Estate in fee D. Probate estate

C. Estate in fee

For more than one hundred years, the Schnabel family has owned and operated a gold mine on federal land. The only access to their mining claim is across an adjoining parcel. That parcel is sold to a new owner, who fences off the parcel and padlocks the gate across the access road. The Schnabel's would be best advised to: A. Do nothing, for the new owner is within his rights to prevent their use B. Grant a quitclaim deed to the new owners C. File a quiet title suit against the new owner to protect their rights D. Continue to use the road, even though this might be viewed as trespass

C. File a quiet title suit against the new owner to protect their rights Easements - confirmed by - quiet title suit

A brother and sister held title to a duplex as joint tenants. Other than this property, their business and personal affairs were conducted separately. When the brother dies, he was insolvent, and owed several creditors substantial unsecured amounts of money. Title to the duplex would be held by the sister: A. Subject to the processes of probate B. Subject to the claims of the creditors C. Free of the debts of the brother D. As tenants in common with the lessees of the duplex

C. Free of the debts of the brother

The law defines a fixture as an item which has been: A. Made part of a chattel real B. Referred to by actions but not referred to in the sales contract C. Incorporated into the land D. Used in an extraordinary way with the land

C. Incorporated into the land (now its part of the land)

When the required payments on a real estate loan are sufficient to pay the interest due, the result is: A. Increased principal payments B. A reduced term of the loan C. Negative amortization D. A greater down payment

C. Negative amortization Negative amortization - payments do not cover interest

Which of the following methods of creating an easement would result in an easement which could most easily be terminated for non-use: A. Express reservation in a deed B. A valid quitclaim deed from the current owner C. Prescriptive use D. Implication of law

C. Prescriptive use Prescriptive easements - easily terminated for non-use

The primary justification for zoning ordinances is to: A. Maintain physical conformity of buildings in a zoned area B. Prevent an oversupply of certain types of business enterprises within a zoned area C. Promote the public health, safety, morals, and general welfare D. Control the quality of building construction within a zoned area

C. Promote the public health, safety, morals, and general welfare Public restrictions - Public health, safety, etc.

Which of the following deeds would least likely contain implied covenants by the grantor: A. Grant deed B. Warranty deed C. Quitclaim deed D. Gift deed

C. Quitclaim deed

Legally and technically, property is defined as: A. Freehold estates B. Things which buyers and sellers own C. Rights or interests which a person has in the thing owned D. Only personal property

C. Rights or interests which a person has in the thing owned

Who usually sets deed restrictions on a subdivision development: A. State and local ordinances B. Federal Housing Administration C. The developer D. The permanent lender

C. The developer Private restrictions - grantor or developer

Which of the following statements, if any, is correct concerning the relationship between an effective interest rate and a nominal interest rate: A. The effective rate is the rate the buyer will pay; the nominal rate is the rate named in the loan application B. The effective interest rate is always lower because the nominal interest rate includes charges other than interest C. The effective interest rate is the rate actually paid by the borrower for the use of the money; the nominal interest rate is the rate specified in the note D. None of the above is correct

C. The effective interest rate is the rate actually paid by the borrower for the use of the money; the nominal interest rate is the rate specified in the note Effective interest rate = Rate paid Nominal interest rate = rate specified in Note

Tyson owns a store building which he leased to Crown for seven years. Crown's estate in the store building is: A. Personal Property B. Estate for years C. A Chattel real D. All of the above

D. All of the above -Personal Property -Estate for years -A Chattel real

A change in a zoning ordinance could be initiated by: A. A subdivider/developer B. A local government agency C. The owner of a property D. All of the above

D. All of the above Zoning ordinance changes initiated by - owner, subdivider, government

A Family rents a vacation home from September 1, 2014 to January 1, 2015. Their tenancy would probably be classified as: A. Month-to-month B. A periodic tenancy C. A fee simple estate D. An estate for years

D. An estate for years