Real Estate Principles: Ch. 1 Nature of Real Property

Luisa owns two parcels of farm property. One is described as the "N 1/2 of the S 1/2 of the E 1/2 of the W 1/2 of the NW 1/4 of Section 3," while the other is the "E 1/2 of the NE 1/4 of the NE 1/4 of Section 4." How many total acres does she own?

A. 30 Acres Start by determining the size of the first parcel. 640 acres ÷ 4 = 160 acres. 160 acres ÷ 2 = 80 acres. 80 acres ÷ 2 = 40 acres. 40 acres ÷ 2 = 20 acres. And 20 acres ÷ 2 = 10 acres. Now, find the area of the second parcel. 640 acres ÷ 4 = 160 acres. 160 acres ÷ 4 = 40 acres. And 40 acres ÷ 2 = 20 acres. Add 10 acres to 20 acres for a total area of 30 acres.

Once coal has been extracted from the earth, it is: A. personal property B. an attachment C. a mineral right D. real property

A. A personal property Like other minerals, coal becomes personal property once it has been extracted from the Earth

Condominium developments are made possible by: A. air rights B. water rights C. constructive severance D. leasehold estates

A. Air rights The ownership of condominium units is only possible because of the ability to separate the ownership of air rights from the ownership of the land

Real property includes: A. anything appurtenant to the land B. anything severed from the land C. chattels D. personalty

A. Anything appurtenant to the land Real property includes the land, appurtenances to the land, and attachments to land

A licensee is allowed to sell a mobile home that is: A. Certified and placed on a permanent foundation B. Less than 2 months old C. Over 30 feet long D. Not registered with the Department of Housing and Community Development

A. Certified and placed in a permanent foundation

In California a landowner whose land does not border a body of water: A. may be granted an appropriation permit B. may use water from the nearest available source C. is a littoral owner D. may divert water from riparian land

A. May be granted an appropriation permit The appropriative rights system (prior appropriation system) allows a non-riparian landowner to obtain water rights by applying for an appropriation permit

If an antenna is permanently attached to the roof of a building, it is: A. real property B. personal property C. an emblement D. a riparian right

A. Real property When an item (such as an antenna) is permanently attached to a permanent structure, it is considered real property

When land is subdivided, a plat is: A. recorded in the county where the property is located B. used instead of title insurance C. submitted to the government survey system D. no longer necessary

A. Recorded in the county where the property is located A plat is recorded in the county where the property is located when land is subdivided

In a conveyance of real property, what is conveyed? A. The land and appurtenances B. The land only C. The land, appurtenances, and personal property D. The land that was described in the purchase agreement

A. The land and appurtenances The land (as it was described in the deed, not the purchase agreement) and it's appurtenances are conveyed. Personal property is generally not conveyed in a real property transaction

To establish _______ water rights, one must apply to the state government for a permit.

Appropriative

What side of a square parcel that measures exactly one acre would be approximately how many feet in length? A. 203 feet B. 208 feet C. 213 ft D. 220 feet

B. 208 ft

A licensee may list or sell: A. A new mobile home B. A registered mobile home C. A mobile home over 32 feet in length Date. Any mobile home, with a deed

B. A registered mobile home A licensee may not list a "new" mobile home. Mobile Home must be registered with the Department of Housing and Community Development first, or else must be permanently attached to real property

Of the following choices, which is largest in area? A.A lot containing 4,047 square yards B.An acre C.A lot 196 feet square D.A parcel containing 41,640 square feet

B. An Acre Conversion A. 36,423 square ft B. 43,560 square ft C. 38,416 square ft D. 41,640 square ft

The distinction between real property and personal property is important in a real estate sale because: A. the legal description depends on this distinction B. anything that is part of the real property is transferred to the buyer, unless otherwise agreed C. the buyer is responsible only for the cost of the real property D. only realty may be transferred in a purchase and sale agreement

B. Anything that is part of the real property is transferred to the buyer, unless otherwise agreed Items that are considered to be part of the real property are transferred to the buyer along with the land, unless otherwise agreed.

The instrument that would be used to transfer title to personal property is a: A. security agreement B. bill of sale C. mortgage D. bulk transfer notice

B. Bill of sale A bill of sale is used to transfer title to personal property

Growing trees that have not been sold are: A. riparian crops B. natural attachments C. fixtures D. personal property

B. Natural attachments Natural attachments include standing timber that has not yet been sold to another party. Once sold, the timber is considered constructively severed from the land, so it becomes personal property

Which of the following statements is true? A. The rights in an owner's bundle of rights can't be separated from each other. B. Ownership rights can be sold together or separately. C. The bundle of rights refers only to personal property rights. D. Real property rights are sometimes called chattels.

B. Ownership rights can be sold together or separately. A property owner is generally free to sell ownership rights separately from the land itself.

Which of the following statements regarding the government survey method is correct? A. Ranges are numbered north and south from the Baseline B. Township lines run east to west C. Township lines are numbered based on a principal Meridian D. Range lines run east to west

B. Township lines run east to west Range lines are north to south. Township lines are based on Baseline, well range lines are based on a principal Meridian

An instrument used to transfer title to personal property

Bill of sale. A bill of sale is a document used to transfer title to personal property

The instrument used to transfer possession of personal property is a:

Bill of sale. A bill of sale transfers ownership and possession of personal property. A security agreement collateralizes personal property to secure a loan, but does not involve transfer of possession

Green owned stock in a mutual water company. Green then sold his interest in the land to Brown. Under these circumstances: A. A separate contract must be written for the transfer of the stock in the mutual water company B. Property can be purchased in California without water rights C. Nothing additional would have to be done regarding this purchase, because stock in a mutual water company is an appurtenance to the land D. None of the above

C. Green would not need to take additional steps to transfer ownership of the shares in a mutual water company. Shares in a mutual water company are appurtenant to the land and are transferred automatically when the land is sold

Statutes (written law) Define a fixture as an item that has been: A. Alluded to by action but not included in the official contract of sales B. Adapted for Extraordinary use in relation to the land C. Incorporated into the land D. Integrated with a chattel real

C. A fixture is an item that is once personal property but has become attached to and incorporated into the land

Which of the following statements regarding transfer of title to personal property is FALSE? A. Title to personal property can pass simply through transfer of possession B.Personal property is considered, for legal purposes, to be located at the owners domicile (a person's home), regardless of where it actually is C. A study of public records will yield information about the condition of title to personal property, much the same as with real property D. A written instrument may be used to transfer personal property, but usually isn't

C. Information about title to personal property generally isn't available through public records. While a bill of sale may be used to transfer ownership of personal property, title can pass from seller to buyer just by transferring possession, so most transactions don't involve a bill of sale. For instance, at the supermarket, a buyer simply takes possession of groceries and is not given a bill of sale

A ranch is 36 miles square. What is the number of townships contained in the ranch? (Note: miles square is not the same as square miles. A ranch that is 36 miles square would be 36 by 36 miles. A ranch that is 36 square miles would be 6 miles square). A.1 B.6 C.36 D.1,296

C. 36 A township is 6 miles on each side. The ranch, which is 36 miles on each side, is 6 townships wide and 6 townships high.

If you don't make any allowance for streets or sidewalks, how many lots that are 50 feet by 100 feet will fit into one acre? A.5 B.6 C.8 D.11

C. 8 First, calculate the size of each lot: 50 feet by 100 feet is 5,000 square feet. Then, divide that into 43,560 square feet (the number of square feet in an acre). 43,560 ÷ 5,000 = 8.7, so a maximum of eight lots would fit.

In the rectangular survey system, each township: A. is assigned a government lot number B. is 640 acres C. contains 36 sections D. measures one square mile

C. Contains 36 sections A Township contains 36 sections each section measures 1 square mile.

Which would a court disregard in deciding whether an item of personal property has become real property? A. Agreement between the parties B. Permanence of annexation C. Cost of the item D. Relationship of the parties

C. Cost of the item

The "bundle of rights" does not include the right to: A. lease the property to a tenant B. do nothing to the property C. impede air traffic D. mortgage the property

C. Impede air traffic While air rights are part of the bundle of Rights, a landowner does not have the right to interfere with air traffic

Which of the following would be considered a part of real property? A. Crops that have been sold on contract but not harvested B. Lumber that will be used to build a fence C. Stock in a mutual water company D. A new mobile home offered for sale by a dealer

C. Stock in a mutual water company Stock in a mutual water company is considered appurtenant to the land. Crops that have been sold are considered the personal property of the buyer even before they're harvested. Items that have not yet been attached to real property are still personal property

Which of the following is an example of a government survey description? A. Lot 3, Block 2, Shelton's Addition to the City of Riverside... B. Starting at the southeast corner of the stone wall, thence north 20 degrees west 400 feet, more or less... C. The south half of the northwest quarter of the southwest quarter of Section 22, Township 10 North, Range 7 East of the Mt. Diablo Meridian... D. My property known as Hume's Ranch, Modoc County...

C. The South half of the Northwest quarter of the southwest corner of section 22, Township 10 North, range 7 East of the Mount Diablo Meridian A government survey description describes a piece of property in terms of its location within a particular section, township and range

Which of the following statements regarding fixtures is false? A. Fixtures which are installed after a mortgage becomes effective are subject to the lien of the mortgage B.Trade fixtures installed by a tenant may be removed by the tenant upon his departure C. A water heater installed in an apartment unit is a fixture D. A fence that has been permanently torn down and is now a pile of lumber is considered real property

D. Even though the fence was a fixture, it's removal constitutes a severance and it has become personal property again

A real estate broker may have difficulty identifying personal property, because personal property may: A. Be hypothecated B. Be alienated C. Become real property D. All of the above

D. All of the above Personal property can become real property if it is affixed to the land. It may also be hypothecated, when used as security for a loan, and alienated, which simply means sold. Hypothecation might make it difficult for a broker to determine if a seller has a right to transfer ownership of a given item of personal property during a sale

Air rights, mineral rights, and water rights are all: A. attachments B. freehold estates C. leasehold rights D. appurtenances

D. Appurtenances The rights, mineral rights, and water rights are all types of appurtenances

A stream borders both Peter's and Patty's land. Under the riparian rights system, which of the following correctly describes Peter and Patty's rights? A. They can both use the stream only if it is navigable B. The upstream landowner has priority in regard to water use C. Neither one can use the water without a permit D. Both owners have equal rights to use the water

D. Both owners have equal rights to use the water Riparian land owners who own property adjacent to the same stream share equal rights to use the water

Which of the following is not a consideration in determining whether or not an item is a fixture? A. Relationship between parties B. Intention of annexor C. Manner of annexation D. Time of annexation

D. Time of annexation Annexation is not one of the fixer tests that courts apply. The tests include the relationship of the parties, intention of the annex or, a method of attachment (matter of annexation), along with adaptation of the item to the Realty and written agreement

Which of the following is not considered to be appurtenant to the land? A. Watercourses B. Fences C. Dwellings D. Trade fixtures

D. Trade fixtures Trade fixtures (items installed by a tenant for use in trade or business) are not appurtenant to the land. The tenant is presumed to have installed them with the intention of removing them at the end of the lease, so they remained the tenants personal property

Which of the following is not real property? A. Ceiling fan installed by Builders owner B. Elm tree C. Mobile home permanently affixed to a foundation D. Trade fixtures that the tenant intends to remove

D. Trade fixtures that the tenant intends to remove Fixture installed by a tenant so that she can carry on a trade or business is a trade fixture; they remain personal property and can be removed by the tenant, unless the lease agreement says otherwise

Of the following, the largest land area is contained within: A.two sections B.10% of a township C.5,280' × 10,560' D.four square miles

D. four square miles Conversion A. 1280 acres B. 0.10 Township * 36 sections * 640 acres/section = 2,304 acres C. 1280 acres D. 4 * 640 acres/square mile = 2,560 acres

Which of the following sources would be the least satisfactory for obtaining a legal description of a parcel of real property? A.Deeds B.Preliminary title reports C.Escrow instructions D.Real property tax bills

D.Real property tax bills A real property tax bill usually identifies the property by the tax assessor's parcel number. While the bill may also include a legal description of the property, that's often an abbreviated description instead of the complete legal description. Escrow Instructions contain a legal description.

T/F. Another name for the rectangular Survey System is the geometrical Survey System.

False. Government Survey System

Government survey method

Government survey (rectangular survey) description identifies the property by its position within a particular section, township, and range. The description must also include the name of the principal Meridian.

Metes and Bounds Method

In a Metes and Bounds description, monuments, courses, and distances are used to define the properties boundaries. The description must start at and returns to a point of beginning.

Fixture tests

In the absence of a written agreement between the buyer and seller, for tests are used in deciding whether a disputed item is a fixture. Attachment test, adaptation test, intention test, and relationship test

When a court is trying to decide whether a disputed item is real or personal property this test is usually the most important consideration

Intention test The intention of the installer is the most important consideration when deciding whether an item is a fixture

The support received by a parcel of land from the property adjoining it is called ____ support

Lateral

Property that is bordered by a lake rather than a river or stream is called ________ property

Littoral

Fixtures

Man-made items of personal property become Realty if they are attached to or otherwise closely connected to the land or improvements

Stock in a _____ water company is considered appurtenant to real property

Mutual

Trees, bushes, crops, and other plants growing on land

Natural attachments Plants attached to the land by roots are called natural attachments

Natural attachments

Natural attachments are plants growing on the lam naturally, or plant there by people. They are usually part of the real property

Rule of capture

Oil and gas rights are governed by the rule of capture. Under this rule, a landowner has the right to any oil or natural gas captured by wells on her property.Like other mineral rights, oil and gas rights may be sold separately from the land.

Recorded map method

Property on subdivided land is identified by its lot and block numbers as shown on the plat map that the developer recorded.. Nearly all properties in developed areas can be described for the recorded map method.

This test asks whether an item was installed by a landowner or a tenant

Relationship test. Under the relationship test, if an item is installed by the landowner it is real property; if installed by the tenant it is personal property

Mineral Rights

Solid minerals are part of the real property until they are extracted. A landowner has the right to extract the solid minerals that lie within his property's inverted pyramid. Mineral rights may be sold separately from the land.

Appropriative rights

The appropriative rights system has largely replaced the riparian rights system in California. Under the appropriative rights system, someone who wants to take water from a water source must obtain a permit from the state, even if she owns land beside the water source.

The sections of the township are numbered from 1 to 36. How are they numbered?

The number and starts in the upper right-hand corner, moves left the section 6, then drops down the row and moves right to section 12. It's snakes side to side, going down rows until it reaches the lower right-hand corner of the township.

T/F. Once a plat map has been recorded, a lot with in the subdivision can be described by its lot and block number, the name of the subdivision, and the county or city

True. A detailed description of the lot is already on file in the recorder's office. It may be incorporated into any legal document by reference to the lot number and Subdivision plat

T/F. A metes and Bounds description includes a point of beginning and a series of courses and distances

True. A metes and bounds description starts at the beginning and describes the boundaries by reference to monuments, courses, and distances

T/F. The government Survey System, a section of land that is not exactly one mile Square it's called a government lot.

True. In the government Survey System, a parcel of land that's not a regular sections called a government lot.

T/F. A metes and bounds legal description identifies a property by specifying founders of the parcel

True. The metes and bounds method describes a parcel by specifying the course and distance of each boundary

Doctrine of emblements

Under certain circumstances the doctrine of emblements gives a tenant farmer the right to harvest crops after the lease has expired

Riparian rights

Under the _________ system, a property owner can take water for domestic purposes from a source that touches his land. The water may not be used on a location other than the _______ property.

A lot map legal description requires all of the following, except: A.city B.county C.lot number D.street address

Under the recorded map method of property description, the street address is not necessary. The description includes a lot number, block number, the city or county, and where the map is recorded.

This overrides the courts tests used to distinguish real from personal property

Written agreement. Regardless of any of the Court-applied test, if the parties agree in writing that an item will or will not be included in the sale of the property, that agreement will be binding

Air rights

- A real property owner has the right to use the airspace above the property. - Are limited by federal aviation law, and may also be affected by zoning and other restrictions. - May be sold separately from the surface property.

Littoral rights

- ________water is standing water, such as a lake or the ocean, as distinguished from riparian water, such as a river. - Under the riparian rights system, an owner of _____ land has essentially the same water rights as an owner of riparian land.

A broker selling used mobile home that is subject to registration requirements. The Department of Housing and Community Development must be notified within how many days?

10

Support Rights

A landowner has the right to lateral and subjacent support, which is the natural support that his land receives from the land on each side and the land underneath.

Legal description

A property legal description enables the location and boundaries of the property to be precisely identified. The three main methods of legal description are metes and Bounds, government survey, and recorded map

T/F. A parcel of land that occupies two sections is larger than a parcel of land that is 4 square miles

A section is equal to 1 square mile. 2 sections is equal to 2 square miles.

The land description method that makes reference to sections, townships, and ranges is the: A. Government survey method B. Recorded Map method C. Metes and Bounds method D. Torrens system

A. The government survey method of land description identifies property by specifying its location in a particular section, township, and range

Two parcels of land are exchanged. The first parcel is the NW ¼ of the SE ¼ of Section 21 and is valued at $800 per acre. The second parcel is the S ½ of the NE ¼ of Section 22 and is valued at $500 per acre. What is the difference in value between the exchanged properties? A.$8,000 B.$8,800 C.$12,000 D.$24,000

A. $8000 First, calculate the area of the first parcel (640 acres ÷ 4 = 160, and 160 acres ÷ 4 = 40 acres). Multiply that by $800 per acre to find that the first parcel is valued at $32,000 (40 × $800). Next, calculate the area of the second parcel (640 acres ÷ 4 = 160, and 160 acres ÷ 2 = 80 acres). Multiply that by $500 per acre to find that the second parcel is valued at $40,000 (80 × $500). Subtract $32,000 from $40,000 to find that the difference is $8,000. Diagramming this kind of problem helps; see a similar illustration in Principles in Figure 1.9 (on p. 13, or check the online course at the related spot).

How many square miles are in one section A. 1 B. 2 C. 6 D. 36

A. 1 Each section of a Township is 1 square mile. Township of 36 sections (6 x 6)

Which of the following items is real property? A. A bearing wall in a single-family home B. Trade fixtures installed by a tenant, removable without damage C. A maturing grape crop to be harvested later under a sale contract D. A refrigerator built into a mobile home that is not on permanent foundation

A. A bearing wall is a permanent property of the real property. The other options are all personal property

A parcel of land measuring 1/2 mile by 1/2 mile is equal to: A.40 acres B.80 acres C.160 acres D.320 acres

C. 160 acres Multiply 1/2 mile by 1/2 mile to find that the area of the land is 1/4 square mile. Since there are 640 acres in a square mile, there are 160 acres in one-quarter of a square mile (640 ÷ 4 = 160).

Unless accepted from the agreement, which of the following are implicitly included in a transfer of real property? A.A building constructed on land B. Mineral deposits underneath the land C. Riparian rights appurtenant to the land D. All of the above

D. A building constructed on land is a man-made attachment (a fixture and parentheses. So it is considered part of their real property. That means it is implicitly included in the transfer when the land is sold, unless the parties have explicitly agreed that it will be excluded. Appurtenant rights, including mineral rights and riparian rights, are also part of the real property and included in the transfer unless otherwise agreed

Sarah sold agriculture property to Ben through a land contract. The property was serviced by a mutual water company, in which Sarah was a stockholder. The stock was appurtenant to the land. Must Sarah and Ben contract separately for the stock in the mutual water company? A. Yes; the stock is personal property and would not automatically be included in a real estate sales contract B.Yes; water rights are not ordinarily conveyed with a real property C. No; the sale of land in California must always include water rights D. No; the stock and the mutual water company was appurtenant to the land and is therefore part of the real property

D. Stock in mutual water company is considered appurtenant to the land. Appurtenances are part of the real property and therefore would be included in the land contract

How many whole townships could fit into a parcel of land that is 28 miles square? Select your answer below: A.28 B.22 C.19 D.16

D. 16 Remember that a township is six miles on each side. If a parcel is 28 miles square (in other words, 28 miles long on each side), you could fit four townships along the length and four townships along the width of the parcel. (The parcel isn't big enough to fit five along each side.) Multiply four by four to find that 16 townships fit in the parcel.

A large rural property is 36 square miles. How many sections does this land cover? A. 36 B. 18 C. 24 D. 1296

D. 36 36 square miles is equivalent to 6 miles squared. Each side of the property is 6 miles in length. A Township is 6 miles long and 6 miles wide, and those contains six sections on each side. A section is 1 square mile. 6 x 6 = 36 sections.

How many square feet is in an acre? A. 208 B. 640 C. 5280 D. 43, 560

D. 43, 560

Personal property is: A. chattels B. personalty C. usually movable D. All of the above

D. All of the above Personal property is usually movable, and they also be called personalty or chattels

The method of legal description that involves courses, distances, and a point of beginning is the: A. government survey method B. rectangular survey method C. lot and block method D. metes and bounds method

D. Metes and Bounds method The metes and bounds method of land description uses courses, distances, and a point of beginning to describe a parcel of property

The rule that permits of tenant farmer to re-enter the land to harvest crops if the lease terminated before the crops were ready to harvest

Doctrine of emblements. The doctrine of emblements is the legal rule that gives an agricultural tenant the right to enter the land to harvest crops after thesethe lease ends

T/F. In the government Survey System, the main north-south line in a particular grid is called the base line.

False. The principal Meridian is the north-south line, and the base line is the east-west line

T/F. A section of land consists of 36 townships

False. Township consists of 36 sections.

An article that was once personal property but has become incorporated into real estate

Fixture. A fixture is personal property that has been attached to real estate in such a way that has legally become part of the real property

Items of personal property that become real property once they are attached to real property are known as:

Fixtures.A man-made attachment that has been incorporated into real property is called a fixture.

Water beneath the surface of the Earth is called ____ water

Ground or subsurface

Property adjacent to a stream or river is called _____ property

Riparian

The support provided to the surface of the underlying Earth is called _____ support

Subjacent

Attachments

Things attached or a fixed to the land are called attachments, and they are part of the real property unless otherwise agreed. Attachments are classified as natural or man-made. Man-made attachments are called FIXTURES.

Articles of personal property affixed to lease The Land by a commercial tenant

Trade fixtures A trade fixture is something installed by a commercial tenant for use in their business or trade

T/F. One-half of a Township equals 18 square miles.

True. A township is 36 square miles; therefor half of a Township is 18 square miles

T/F. Intersection of Township tear in the government Survey System is called a Township

True. Ranges are North - South columns, and Township tiers are East - West rows. A Township is the parcel formed by the intersection of a range and a Township tier.

Appurtenance

is something that goes with or pertains to ownership of a piece of real property, but isn't necessarily a physical part of the property.Air rights, water rights, mineral rights, and support rights are appurtenances.

Water rights

- the right to use water in connection with real property. - Maybe governed by the riparian rights system or the appropriative rights system.