Chapter 4 Real Estate exam

Restrictive covenant

A private agreement, usually contained in a deed, that restricts the use and occupancy of real property.

Easement

A property interest that one person has in land owned by another that entitles the holder of the interest to limited use or enjoyment of the others land.

Declaration of restrictions

A statement of all the covenants, conditions and restrictions.

Mechanic's lein

A statutory, specific lien created in favor ion laborers, contractors, and suppliers who have performed work or furnished material in building, renovation or repair of building.

Special assessment

A tax statutory levied against a property proposed improvements, like street or sewer assessments.

Party wall

A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both properties.

A recorded notice of a current lawsuit involving a title to real property is called.. A. A lis pendens B. A writ of execution C. An attachment D. An order to show cause

A. A lis pendens

Which term is used to describe a property being taxed according to its value? A. Ad valorem B. Lis pendes C. Caveat emptor D. Pur autre vie

A. Ad valorem

Which statement is TRUE? A. All liens are encumbrances B. All encumbrances are liens C. Specific liens affect all property of the debtor located in the state D. Judgement are specific lien

A. All liens are encumbrances

A lender wants to ensure the first priority of its lien. The lender should make sure that.. A. All other liens are removed from the title of subordinated from the property being used as collateral B. The borrower has an unconditional fee simple estate with no liens C. The borrower's father has cosigned the note D. The loan is insured

A. All other liens are removed from the title of subordinated from the property being used as collateral

A party wall would be found. A. Along a property line B. Between the dining and living rooms C. Facing the direction from which bad weather usually comes D. Between the upper and lower stores of a structure

A. Along a property line

Encumbrances that are also liens on real estate can be created by.. A. Federal income taxes B. A subdivision declaration of restrictions C. Zoning regulations D. Building permit requirements

A. Federal income taxes

An easement by necessity is MOST appropriate in which one of the following situations? A. Landlocked parcel B. Profit a prendre C. Party wall D. Encroachment

A. Landlocked parcel

Which deed restriction is valid? A. Limitations are placed on materials used or the type of architecture B. The property cannot be sold to persons of a certain race C. Property must not be used for religious purposes D. The restriction must always be the same as the existing zone

A. Limitations are placed on materials used or the type of architecture

A recorded easement may be removed from the records by.. A. Recording a quitclaim deed signed by the owner of the easement (the dominant tenement) B. Instituting a lis pendent action C. Filing a marginal release D. Giving a 3 day notice followed by an Unlawful Detainer Action

A. Recording a quitclaim deed signed by the owner of the easement (the dominant tenement)

The discharge of a certain property from the lien of a judgement, mortgage or claim is a.. A. Release of lien B. Lien binder C. Lien statement D. Tax

A. Release of lien

An easement would MOST likely be involved with.. A. Right-of-way B. Subordination C. Defeasance D. Estoppel

A. Right-of-way

Encumbrances that are considered lean on real estate can be created by.. A. Special assessments and improvement taxes B. Covenants that restrict the use of the property C. Easements D. Personal restrictions

A. Special assessments and improvement taxes

Which statement is TRUE? A. The owner of the servant tenement generally has the rights to subsurface profits B. The owner of the dominant tenement has the right to drill an oil well not he servant property C. The servant estate benefits from an easement D. The servant estate can terminate an easement by abandonment

A. The owner of the servant tenement generally has the rights to subsurface profits.

Which statement is TRUE about restrictive covenants found in deeds? A. They are encumbrances B. They automatically expire upon violation C. If the restriction violates another law, the entire deed is void D. They must be the same as local zoning laws

A. They are encumbrances

A builder built a home for a buyer on a lot owned by the buyer. After completing the home, but before receiving final payment, the builder noticed that the buyer has placed a For Sale sign in the front yard. The builder filed a suit for a on-payment and to prevent the buyer from conveying title on the newly built home. The builder filed what kind of writ? A. Writ of attachment B. Writ of execution C. Writ of habeas D. Writ of redemption

A. Writ of attachment

Encroachment

An unauthorized invasion or intrusion of a fixture or other real property wholly or partly on another's property, thus reducing the size and value of the invaded property.

Encumbrance

Any claim, lien, charge, and liability attached too and binding on real property that may lessen the value of the property but will not necessarily prevent the transfer of title.

Which of the following is NOT both an encumbrance and a lien? A. A mortgage B. A judgement C. A restriction D. A tax

B. A judgement

The right to enter upon the property of another and to fish in the pond on the property is called... A. A trespass B. A license C. A riparian right D. An encroachment

B. A license

A legal right of a creditor to have a debt or charge satisfied from the personal property of the debtor is.. A. A mortgage B. A lien C. A right-of-way D. An escheat

B. A lien

Which of these professionals may NOT file a mechanic's lien after completing work and not being paid? A. A carpenter B. A real estate broker C. An electrician D. An engineer

B. A real estate broker

To the holder of the dominant tenement, an easement is.. A. An encumbrance B. An appurtenance C. A restriction D. A encroachment

B. An appurtenance

After a buyer purchased a property, she had a survey made and found her neighbor through error, recently build an ornamental fence two feet over her land. This is an example of.. A. Party wall B. An encroachment C. An appurtenance D. Adverse possession

B. An encroachment

A deed subject to a restrictive covenant involves.. A. A zoning restriction B. An encumbrance C. A life estate D. A defective title

B. An encumbrance

Which is TRUE regarding an encumbrance on real property.. A. An encumbrance effectively prevents the passing title from the grantor to grantee B. An encumbrance may indicate a lien C. Encumbrances are liens that restrict use of the property D. Encumbrances are restrictions that transfer title to property

B. An encumbrance may indicate a lien

Which of these restrictions is NOT a government restrictions? A. Police power B. Covenant C. Escheat D. Eminent domain

B. Covenant

In what type of easement is there a dominant estate and a servant estate? A. Easement in gross B. Easement appurtenance C. Easement for profit D. Easement by license

B. Easement appurtenance

A laborer on a parcel of a real property can do which of the following if she or he is NOT paid for their work? A. Post a bond B. File a lien C. Start foreclosure proceedings D. Remove his improvements

B. File a lien

A chattel mortgage is a lien on.. A. Real property B. Personal property C. Encumbrances D. Land.

B. Personal property

An easement is MOST commonly terminated by.. A. Abandonment B. Quitclaim deed C. The owner of the servant tenement D. Operation of law

B. Quitclaim deed

An easement appurtenant. A. It is the usual type of easement granted to utility companies to permit them to run electric lines across the property. B. Runs with the land. C. Has only a dominant estate. D. Benefits of the servant estate.

B. Runs with the land.

In distinguishing between an attachment lien and a judgement lien A. An attachment is made after judgement B. An attachment lien applies to all property of the debtor C. A judgement lien is a general lien D. A judgement lien can be obtained prior to a court decision

C. A judgement lien is a general lien

A material-man's lain is superior to.. A. A first mortgage records prior to the time of the visible commencement of work B. A lien for delinquent real property taxes C. A mechanic's lien for brother commission D. Previously recorded judgement liens

C. A mechanic's lien for brother commission

Which of the following does NOT create an easement? A. An express grant B. A prescription C. An assignment D. An implied grant

C. An assignment

The right of a water company to lay and maintain water mains along the rear of a lot is called.. A. An appurtenance B. A riparian right C. An easement in gross D. A right of enroachment

C. An easement in gross

A restriction is considered to be.. A. A lien B. A color of title C. An encumbrance D. An abstract

C. An encumbrance

A property owner, by use of a deed restriction, may NOT.. A. Prohibit a use of property that would be allowed under existing zoning laws. B. Limit the size and shape of the buildings C. Change the zoning of the property D. Limit the placement of dwelling on a lot.

C. Change the zoning of the property.

When an easement exists between two parcels of land that are separately owned, the.. A. Dominant tenement has use of this easement only for ingress and egress B. Servant tenement must have created the easement in writing C. Dominant tenement is benefited by the easement D. Servant tenement may revoke the use of easement by giving the proper notice.

C. Dominant tenement is benefited by the easement

Restrictions in a deed that benefits only the grantor... A. Cannot be removed by the grantor B. Must be more lenient than current zoning laws. C. May be removed by the grantor's issuance of a quitclaim deed. D. May be changed by a subsequent grantee.

C. May be removed by the grantor's issuance of a quitclaim deed.

If a subcontractor filed a lien for work done on a new building, what type of lien was MOST likely filed? A. General Lien B. Voluntary Lein C. Mechanic's lein D. Vendor's lein

C. Mechanic's lein

In order to become effective, which of the following must be recorded? A. Quitclaim deed B. Warranty deed C. Mechanic's lien D. Easement

C. Mechanic's lien

Usually, a mechanic's lien is removed from public record by.. A. Court order B. Payment in full C. Recording a release D. Satisfaction of the judgement

C. Recording a release

The MOST practical method of imposing restrictions on all lots in a large new subdivision is by.. A. Publishing the restrictions in a. newspaper of general circulation B. Including the restrictions as covenants in all deeds. C. Recording the restrictions, prior to any sales, in a manner provided by law. D. Posting the restrictions on the property

C. Recording the restrictions, prior to any sales, in a manner provided by law.

After a debtor's property is seized and sold to pay off a judgment, what does the debtor receive? A. Completion certificate B. Execution certificate C. Satisfaction certificate D. Fulfillment certificate

C. Satisfaction certificate

Which of these statements regarding restrictive covenants on real property is FALSE? A. They run with the land B. They are enforceable in court unless contrary to public policy C. They are limited to a specific time period D. They may be removed from the record without legal action

C. They are limited to a specific time period

Which statement about deed restrictions is FALSE? A. They are frequently encountered in residential subdivisions B. They are called restrictive covenants C. They terminate on the death of the grantor D. Once established, they run with the land are limitations on the use of future grantees.

C. They terminate on the death of the grantor

Covenants and conditions

Covenants are promises contained in contracts, the breach of which would entitle a person to damages.

A court-issued order to sell the property to satisfy a judgment is called.. A. An easement B. An encumbrance C. An attachment D. A writ of execution

D. A writ of execution

Restrictive covenants in a deed. A. Must be consistent and not at variance with the zoning. B. Cannot be more strict than the current zoning use C. Are the same as conditions in a deed. D. Are an encumbrance on the property.

D. Are an encumbrance on the property.

Which statement is TRUE? A. When an easement has been created, it reminds in effect even after the dominant and servant properties are merged into one. B. The mere nonuse of an easement right is sufficient evidence to prove abandonment C. An easement is created for the benefit of the servant tenement D. Easement are encumbrances affecting the physical use of land

D. Easement are encumbrances affecting the physical use of land

Which of the following creates deed restrictions? A. Local building inspector B. Authorized authorities C. Planning commission D. Grantor

D. Grantor

When one has permission to use land but has no other rights, one has a .. A. Tenancy in common B. Leasehold estate C. Tenancy at sufferance D. License

D. License

A plumber failed to get paid for work completed in a new house and filed a lawsuit against the contractor. What was recorded that gives special notice that a lawsuit has been filed against the real estate? A. Pur autre vie B. Caveat emptor C. Writ of execution D. Lis pendens

D. Lis pendens

Which encumbrance continues a lien on real property A. Easement B. Encroachment C.Restriction D. Mortgage

D. Mortgage

The priority of a mechanic's lien depends on the date.. A. Of recordation B. Of the contract C. Of completion D. On which work commenced

D. On which work commenced

An easement created by adverse use is said to have been created by... A. Express grant B. Reservation C. Implication of law D. Prescription

D. Prescription

Which lien normally takes priority over all other Liens? A. Judgement lien B. Mortgage lien C. Mechanic's lien D. Real property tax lien

D. Real property tax lien

Which lien will have top priority in the event of foreclosure on the subject property? A. State income tax lien recorded first B. Federal estate tax lien recorded second C. Mechanic's lien for work commenced before any other lien was recorded D. Real property tax lien recorded last

D. Real property tax lien recorded last

Which of these events will NOT terminate an easement? A. When dominant and servant tenements merge B. When the particular purpose for which the easement was created ceases C. Absence of nonuse of the easement for several years D. When the dominant tenement sells the property to the new owner.

D. When the dominant tenement sells the property to the new owner.

Restrictions

Limitations on the use of property.

License

Revocable permission for the use of someone's property.

Running with the land

Right or covenants that bind or benefit successive owners of a property, such as restrictive building covenants in a recorded deed that would affect all future owners of property, are said to run with the land.

Prescription

The acquiring of the right property, usually in the front of an intangible property right.

Adverse Possession

The continuous, open, hostile and adverse use of another property without permission.

Lienor

The creditor has a lien on the property of the debtor.

Easement in gross

The limited right of one person to use another land.

Ad valorem tax

This means "according to value" in Latin and describes the tax levied against a property.

Lienee

To satisfy a claim or debt.