Module 3 - Real Estate Law Review
A conflicting land use that predates present zoning and is allowed to remain is a variance. non-conforming use. covenant. spot zone.
non-conforming use.
The holder of a life estate may do all of the following, EXCEPT devise it. mortgage it. sell it. rent it.
devise it. A life estate is an estate of non-inheritance; terminates upon the death of the estate holder; and cannot be willed (devised).
Maksim and Petra recently married and bought a home in Tigard, OR. Although both of their names are on the deed, no mention is made concerning their preference for holding the title. This married couple will automatically hold title to the property as tenants by the entirety. joint tenants. tenants in partnership. tenants in common.
tenants by the entirety.
Which statement is FALSE? The comprehensive plan provides overall guidance for a community's land use, economic development and resource management. Every city and county was required to create a comprehensive plan which had to be approved by the LCDC Local jurisdictions may revise their plan at any time as long as the revisions are in keeping with the land use goals of the LCDC The LCDC created a comprehensive plan for every city and county in the State of Oregon
The LCDC created a comprehensive plan for every city and county in the State of Oregon
Before they were married, Tom and Rita each owned a house. After they got married, they bought a new house as tenants by the entirety. They each kept the houses they owned prior to their marriage, rented them out, and did not change the deeds on either property. Four years after they got married, Rita died without a will but has heirs. The house that Rita owned prior to her marriage will: be inherited by Rita's heirs, which includes Tom. be subject to the rules of escheat. automatically be inherited by Tom. be inherited by Rita's heirs, excluding Tom.
be inherited by Rita's heirs, which includes Tom.
Eminent domain is the State's right to sell the property of an owner who has failed to their pay property taxes. take title to property when a deceased owner has no heirs. take private property without compensation to the owner. take private property with just compensation to the owner.
take private property with just compensation to the owner.
Ethel entered into a three-year lease for an office space. Ethel ignored the expiration date in her lease and continued to occupy the office against the wishes of the landlord. Ethel has a tenancy at sufferance. periodic tenancy. tenancy from year to year estate. tenancy for indefinite period.
tenancy at sufferance.
The right of survivorship is a feature of tenancy of inheritance. tenancy in common. tenancy by the entirety. tenancy in severalty.
tenancy by the entirety.
All of the following are co-tenancies EXCEPT: tenancy in common. tenancy by the entirety. tenancy in severalty. tenancy created under the Erickson doctrine of survivorship.
tenancy in severalty.
A married couple moved to Oregon from California, bought a primary residence, but did not specify how title was to be held. How will this couple take title? tenants in partnership. tenants in common. joint tenants with rights of survivorship. tenants by the entirety.
tenants by the entirety.
A promise to the grantee by the grantor that the grantor has ownership and possession of the property being transferred is the covenant of seisin (seizin). quiet enjoyment. quantum enjoyment. the right to habendum.
the covenant of seisin (seizin).
Which statement about an appurtenant easement is FALSE? the dominant tenement benefits by and the servient tenement is burdened by the easement. the dominant tenement must adjoin the servient tenement on at least two boundary lines. the easement runs with the land. there must be at least two tracts of land under separate ownership.
the dominant tenement must adjoin the servient tenement on at least two boundary lines.
The term "reversion" means: escheat. the real property at the end of a tenancy passes to the grantee's heirs and/or assigns. the real property returns to the grantor. the property is hypothecated.
the real property returns to the grantor.
All of the following are non freehold estates, EXCEPT: a life estate. an estate at sufferance. an estate from period to period. an estate at will.
a life estate.
A section of land is: 5 miles wide. 10 miles wide. ½ mile wide. 1 mile wide.
1 mile wide. A section is 1 mile by 1 mile wide, or 5,280 feet per side.
A deed in Oregon, if not a gift or inheritance, must include which of the following in order to be recorded? 1) acknowledgement 2) the consideration paid 3) the signature of the grantor 4) the signature of the grantee 1, 2, 4 only 1, 2, 3 only 1, 2, 3, and 4 1 only
1, 2, 3 only
The number of townships in an area of 576 square miles is 4 8 16 32
16 A township is 36 square miles. 576 sq. mi ÷ 36 sq. mi = 16
How would the section directly south of Section 16 be numbered? 15 17 21 22
21
In a township, there are 23,040 acres. 26 square miles. 18,000 acres. 32 square miles.
23,040 acres. A township is six miles by six miles or 36 square miles, and contains approximately 23,040 acres.
Which statement is false? All spring water located in Oregon is owned by the general public. A water permit is not required to use ground water to water a lawn or non-commercial garden less than one-half acre in size. A homeowner whose property abuts a river has littoral rights. An Oregon water right may be discontinued if beneficial use of the water is discontinued for five or more consecutive years.
A homeowner whose property abuts a river has littoral rights. A homeowner whose property abuts a river has riparian rights; Oregon does not honor riparian rights.
The biggest exemption to the requirement of a subdivision public report issued by the Real Estate Commissioner before a lot can be sold is A subdivision is exempt if it is located in a city or county which has an acknowledged comprehensive plan A subdivision is exempt if the developer fills out a seller's disclosure statement A subdivision is exempt if all documents are held in a collection escrow until the buyer has finished paying for the property. A subdivision is exempt if it is registered with the Office of Interstate Land Sales Registration
A subdivision is exempt if it is located in a city or county which has an acknowledged comprehensive plan
Under Oregon subdivision law, which of the following is the final thing required of a subdivider before he may sell or transfer a lot in the subdivision? Approval by the city or county of the preliminary plan for the subdivision. Written application for subdivision approval to the city or county having jurisdiction. Acknowledgement and recording of the plat for the subdivision. Submission of the plat for review by the Real Estate Commissioner.
Acknowledgement and recording of the plat for the subdivision.
If a taxpayer is not satisfied with the amount of his property tax assessment, what recourse does he have? There is no recourse available. Appeal to the county board of property tax appeals. Appeal to the Oregon Court of Appeals. Appeal to the County Commissioners.
Appeal to the county board of property tax appeals.
Which of the following are essential elements of a valid deed? A) Grantee's signature B) Adequate legal description C) Acknowledgment D) Grantor's signature A and B only B and C only B and D only A, B, and D
B and D only
In Oregon, when an apartment building is converted to condominiums: A)all tenants must be notified of the conversion at least 120 days prior to the recording of the declaration, bylaws, and floor plans B)all tenants must be given a 60-day first right of refusal Both A and B B only A only Neither A nor B
Both A and B
Trade fixtures: A) are intended to remain the property of the tenant. B) may be removed at the end of the lease if not prohibited in the terms of the lease. Both A and B B only A only Neither A nor B
Both A and B
Which statement is true about Oregon water rights? A) Oregon is an appropriation doctrine state. B) The water right is appurtenant. A only Both A and B B only Neither A nor B
Both A and B Water rights are an appurtenance; they run with the land. Oregon is an appropriation doctrine state.
A transaction is closed on September 20th of the tax year. The taxes are not yet due and nothing has been paid. How will the tax pro-ration appear on the closing statement? Debit to the buyer and debit to seller. Credit to buyer and credit to seller. Credit to buyer and debit to seller. Credit to the seller and debit to buyer.
Credit to buyer and debit to seller.
If a condominium is sold by a developer, the buyer has the right to cancel the transaction provided the buyer gives the developer written notice at least Three business days from the receipt of all required documents Four calendar days from the date the receipt for required documents was signed Seven days from the receipt of the disclosure statement Five business days from the date the receipt for the required documents is signed by the buyer.
Five business days from the date the receipt for the required documents is signed by the buyer.
Which is not a characteristic of a fee simple estate? It is of indefinite duration It must be free of all encumbrances It must be transferable It must be inheritable
It must be free of all encumbrances A fee simple estate can be inherited, transferred, and is of an indefinite duration. All properties have encumbrances, for example, non-financial encumbrances such as utility line easements.
What is the primary purpose of a building permit? It independently creates land value. It serves as evidence of compliance with municipal rules. It overrides a deed restriction. It allows the builder to receive discounted rates on materials.
It serves as evidence of compliance with municipal rules.
When prorating Oregon real property taxes in a closing statement, what date is used as the beginning of the tax year? November 1 January 1 July 1 April 15
July 1 Oregon's fiscal tax year starts on July 1st and ends on June 30th.
For ad valorem purpose, real property taxes first become a lien as of May 16. July 1. November 15. January 1.
July 1.
Which instrument transfers possession of real property but does not transfer ownership? Deed Mortgage Lease Will
Lease
A plat map is used in which type of legal description? Lot and block Rectangular survey Street and number Metes and bounds
Lot and block Under Oregon law, when a subdivision is created, the developer is required to file and record a plat map, which lays out the organization of the lots in the subdivision. Large subdivisions are broken up into blocks and then each lot is identified.
Amelia Hart bought a house and the taxes were paid in full through June 30, 2012, which was the closing date. If she never pays any taxes, on what date can the county commence foreclosure proceedings? May 16, 2013 May 16, 2014 May 16, 2015 May 16, 2016
May 16, 2016
Zoning ordinances control the use of private land through several kinds of restrictions. Which of the following is NOT a zoning restriction? Setback requirements for buildings Designation of maximum structure lot coverage Building height limitations Non-conforming use
Non-conforming use
Oregon law requires that the tax assessment of residential real property be based on which of the following as of the assessment date? Real market value or maximum assessed value, whichever is lower Last sale price of the property Replacement value Intrinsic value
Real market value or maximum assessed value, whichever is lower Oregon law requires that the tax assessment of residential real property be based on real market value or maximum assessed value, whichever is lower. Each year the MAV and RMV for each property are calculated. The property is then taxed at the lesser value, which is called the Taxable Assessed Value.
Who has the right to terminate an easement appurtenant? An easement appurtenant cannot be terminated. It requires the mutual consent of the dominant and servient tenements. The owner of the servient tenement. The owner of the dominant tenement.
The owner of the dominant tenement.
A revocable personal right to cross the property of another is called a license an easement an option a lease
a license A license is a personal right to use the property of another. Licenses are revocable by the grantor; they are personal right given to the grantee that is not assignable.
If escrow instructions differ from the purchase and sale agreement, and the escrow instructions have been signed by both the seller and buyer, which of the following is correct? The escrow instructions take precedence. The original purchase and sale agreement takes precedence. A new purchase and sale agreement must be written and signed by seller and buyer to match the escrow instructions. There is no transaction due to conflicting instructions.
The escrow instructions take precedence.
What is a grantee? The beneficiary of a trust deed. The same as a vendee. The party receiving the deed. The party giving the deed.
The party receiving the deed.
Which one of the following statements concerning riparian rights is TRUE? They are the exclusive right to use ocean water that touches one's land They are found in the public records They are the right to reasonable use of river water that touches one's land in some jurisdictions They are listed in the warranty deed
They are the right to reasonable use of river water that touches one's land in some jurisdictions
If there is a difference in the degree of restriction between zoning restrictions and deed restrictions on a property, which has priority? Whichever is more restrictive Deed restrictions Zoning restrictions. Neither has priority
Whichever is more restrictive
A grantor owns a vacant lot adjacent to a university, wants to gift it to the university, but wants to have some control over how the university can use the gift. The grantor adds to the deed "I convey ownership in this lot so long as it is used for educational purposes." The university owns a fee simple estate. an easement. a license. a fee simple determinable estate.
a fee simple determinable estate.
A riparian owner refers to the seashore. a person who owns land bordering a river or other waterway. municipal property. a national forest or range land.
a person who owns land bordering a river or other waterway.
All of the following are true regarding Ballot Measure 50 EXCEPT: MAV is allowed to increase each year by not more than three percent. a property must be reappraised every two years to establish the taxable value. limits the amount of property subject to taxation MAV (maximum assessed value). an addition or a major improvement to a property will increase MAV.
a property must be reappraised every two years to establish the taxable value.
The existence of an encroachment is best determined by a title insurance policy an appraisal a survey a quitclaim deed
a survey
Open, hostile, notorious, and continuous possession are all elements of prescription eviction color of title adverse possession
adverse possession
The phrase chain of title refers to a term relating to a survey of the property. a certificate of title. the list of the heirs named in a will who inherit the property. all of the recorded documents affecting the history of title transfers to a property.
all of the recorded documents affecting the history of title transfers to a property.
Following publication of the foreclosure list for delinquent property taxes, and during the statutory redemption period, Oregon law allows the taxpayer undisturbed occupancy of the property for the whole period. allows the taxpayer to stay in the property for up to 60 days by paying market rent. requires the taxpayer to vacate the property at the time of the sale. gives the taxpayer a statutory 30-days of quiet enjoyment before having to vacate.
allows the taxpayer undisturbed occupancy of the property for the whole period.
Any right or restriction that passes with the title of real property is personal property. an appurtenance. a reservation. an emblement.
an appurtenance.
An illegal intrusion onto the property of another is known as an encroachment. an easement. a prescription. adverse possession.
an encroachment.
The term right of emblement relates to a tenant farmer's farm machinery. an additional provision in a contract. improvements to buildings. annual crops.
annual crops. When the tenancy is for an indefinite period and the tenancy is terminated through no fault of the tenant, the farmer will be given the right to harvest the first crops that mature after termination. This is known as the right of emblement.
A public report from the Real Estate Commissioner is required to be given to a buyer five days prior to closing. anytime before entering into a sale agreement with the buyer. as soon as possible after the buyer expresses an interest in any particular lot. during the buyer's first viewing the property.
anytime before entering into a sale agreement with the buyer.
The phrase "ad valorem" is best defined as meaning a property tax. a unit of tax measured as a milage rate. based on value. value received as consideration.
based on value.
The primary survey line running east and west in the rectangular survey method is called a township line. baseline. principal meridian. range line.
baseline.
The escrow agent represents the principal broker(s) representing the seller and the buyer. the seller only. the buyer only. both buyer and seller.
both buyer and seller.
The eminent domain process by which private property is taken for public use is condemnation. judgment hypotheciation. a lis pendens. by posted notice of public taking.
condemnation
The process of taking private property for public use is called condemnation. compensation. zoning.
condemnation.
On the closing statement, the sales price is a credit to the buyer and a credit to the seller debit to the buyer and a debit to the seller credit to the buyer and a debit to the seller debit to the buyer and a credit to the seller
debit to the buyer and a credit to the seller On the closing statement, the sales price is a debit to (paid by) the buyer and a credit to (paid to) the seller.
The buyer agrees to assume (i.e., take responsibility of) an existing home loan on the seller's single-family home. The loan assumption on the closing statement would be shown as a credit to both the buyer and seller. credit to the seller. debit to the seller and credit to the buyer. debit to the buyer and credit to the seller.
debit to the seller and credit to the buyer.
Until a land sale contract is paid in full, the buyer holds equitable title. ostensible title. legal title. fee simple title.
equitable title.
According to Oregon statute, to create a subdivision means to divide land into two or three lots, as long as no new street is created. two or three lots with a new street to make sure all lots are accessible. four or more lots within a calendar year. four or more lots over a period of more than one calendar year.
four or more lots within a calendar year.
The ALTA extended title insurance policy would not cover unrecorded easements. unrecorded homestead rights. government regulations relating to zoning. unrecorded deeds.
government regulations relating to zoning. Exclusions from coverage under an ALTA extended policy include government exercise of police power or eminent domain, including environmental protection laws and zoning restrictions, and defects of which the insured had actual notice.
Jennifer intends to build a 6 foot fence around her property on the property line. She should check: only the deed restrictions. only the local building and zoning codes. local building and zoning codes, and deed restrictions. she should just build the fence, since it is on her private property.
local building and zoning codes, and deed restrictions.
In a subdivision, the units of land are referred to as parcels. sections. partitions. lots.
lots.
Land description by measure and direction is known as lots and block metes and bounds government survey rectangular survey
metes and bounds
"Littoral" land is located on a hillside. on a seashore. in a valley. on a stream.
on a seashore.
The best way to make sure there are no undiscovered liens is by hiring a lawyer to complete an abstract of title. ordering a title search from a title insurance company. contacting the county assessor's office. taking out a property insurance policy.
ordering a title search from a title insurance company. The ALTA Owner's Standard Title Policy, usually paid for by the seller of a property for the benefit of the buyer, insures against any damages or losses incurred by any defect in a lien or encumbrance against the title.
Zoning is authorized by lis pendens. laches. eminent domain. police power.
police power. Police power is the state's right to regulate an individual's property rights in order to protect the health, safety, welfare, and morals of the community. Common examples of police power are zoning, building codes, and rent control.
Ownership in severalty occurs when property is owned by one person. two or more persons have identical interests in the same property at the same time. a husband and wife share ownership of the same property. two or more persons own the property in any form of title.
property is owned by one person.
Real property taxes that are not paid become a specific involuntary lien general involuntary lien general voluntary lien specific voluntary lien
specific involuntary lien Tax liens are involuntary and specific; they are not given voluntarily by the owner. A mortgage lien, on the other hand, is a voluntary lien; it is given voluntarily by the borrower.
Dividing a tract of contiguous land under single ownership at the beginning of a year into four or more lots within that year results in a final recorded plat. subdivision. major partition. minor partition.
subdivision.
If taxes on real property in Oregon become delinquent and remain unpaid, they become an involuntary lien on the property that is inferior to all voluntary liens inferior to a mechanic's lien superior only to liens recorded after the tax lien superior to all other liens
superior to all other liens
If taxes on Oregon real property become delinquent and remain unpaid, they constitute an involuntary lien on the property that is: superior to all other liens. superior only to liens recorded after the tax lien. inferior to all voluntary liens. inferior to a mechanic's lien.
superior to all other liens.
Statewide land use planning in Oregon is administered by the local planning authorities the Land Conservation and Development Commission the Real Estate Commissioner the Department of Environmental Quality
the Land Conservation and Development Commission
All of the following are true about the LCDC statewide planning goals, EXCEPT: the goals include housing affordability and citizen participation in the planning process. the goals are optional. They serve mainly as guides to county and city planning. the goals are mandatory. the goals include protection of agricultural and forest land.
the goals are optional. They serve mainly as guides to county and city planning.
All of the following are true when an apartment building is converted to a condominium in Oregon EXCEPT: the tenant is entitled to a sixty-day first right of refusal. the tenant must be notified of the conversion at least 120 days prior to the recording of the declaration, bylaws, and floor plans. the owner must offer the tenant the unit he is living in at a discount from that offered to the public for that unit. the tenant is entitled to a separate notice from the conversion notice if the tenancy is to be terminated.
the owner must offer the tenant the unit he is living in at a discount from that offered to the public for that unit.
"Placed in escrow" means the parties to the agreement have designated a neutral third party to hold documents and funds according to the mutual instructions of the parties. the escrow agent is a sub-agent of the principal broker. the broker is no longer involved in the transaction. the transaction is voidable at the option of either buyer or seller.
the parties to the agreement have designated a neutral third party to hold documents and funds according to the mutual instructions of the parties.
If the buyer in a real estate transaction deposits funds in escrow, the escrow agent can pay out the funds in accordance with the written instructions of the principals to the escrow transaction. the seller alone in the event the buyer is unable to perform. the brokers representing the principals to the escrow transaction. the buyer alone in the event the buyer is unable to perform.
the principals to the escrow transaction. A real estate licensee is NOT a principal to the escrow.
If an owner of Oregon real property believes the real assessed value placed on his property by the county assessor is too high, it would be proper to advise him that the burden of proof in determining the valuation of his property rests on the county board of property tax appeals. fee appraiser appointed by the Oregon tax court. the taxpayer himself. Oregon Department of Revenue.
the taxpayer himself.
An owner who buys a condominium receives title in an apartment and tenancy in common of undeveloped land. title in airspace and common interest in common areas. tenancy in common in the building and tenancy in severalty in the common areas. tenancy in common in the building and common interest in all other areas.
title in airspace and common interest in common areas.
Tracing the conveyances and encumbrances of real property is known as chain of title. title search. recordation. cloud on title.
title search.
An ALTA extended policy would not cover unrecorded deeds unrecorded homestead rights unfavorable zoning changes unrecorded easements
unfavorable zoning changes
A deed that has been executed and delivered but not recorded is void. valid. voidable. unenforceable.
valid. Recording the deed does not change its validity. Recording the deed creates a presumption that the document is valid.
A purchaser of a condominium can obtain which of the following on an individual unit? Title insurance A mortgage Homeowner's insurance All of the above
All of the above
Which of the following are true regarding an easement appurtenant? The properties must have different owners It runs with the land It must be a burden on one property and a benefit to another All of the above
All of the above
Which of the following may render a purchase and sale agreement unenforceable? An unmarried 17-year-old grantor An incomplete legal description of the property Undue pressure by the broker to sign the agreement All of the above
All of the above
Which of the following statements concerning the addition or subtraction of land is correct? The sudden tearing away of land is called avulsion. Erosion is the gradual loss of soil. Accretion is the gradual deposit of soil through natural causes. All of the above
All of the above
Which one of the following is NOT a real property description? Lot and block Metes and bounds Allodial system Rectangular survey
Allodial system
Which of the following statements regarding an easement in gross is NOT TRUE? An easement in gross transfers when an owner of a property sells the property to another. Most easements in gross are usually used by a utility company to install service lines over private property. An easement in gross does not have a dominant estate. An easement in gross has a dominant estate.
An easement in gross has a dominant estate.
A water right is subject to cancellation A) after five consecutive years of non-use. B) through a statement of abandonment under oath to Water Resources Commission Both A and B A only B only Neither A nor B
Both A and B
When a developer sells a condominium unit in Oregon on a land sale contract: A) the deed to the unit must be placed in a collection escrow in Oregon with a person or firm authorized to receive escrows. B) a copy of the preliminary title report relating to the unit must be placed in a collection escrow in Oregon with a person or firm authorized to receive escrows B only Both A and B A only Neither A nor B
Both A and B
A water right is granted according to several underlying legal concepts in Oregon. Which of the following is NOT one of these concepts? The priority of the original use will determine the quantity of water allowed to be used. An owner must use the water at least once every five years in order to maintain a water right. The beneficial use of water is the basis, measure, and limit of the water right. A water right permit is appurtenant.
The priority of the original use will determine the quantity of water allowed to be used.
When money is borrowed and secured with a trust deed, the payments are made to the grantor beneficiary trustor trustee
beneficiary The parties to a trust deed are the trustor, beneficiary, and trustee. The beneficiary is the lender who receives the payments made under a trust deed. In some other states, the borrower is sometimes called the grantor instead of the trustor.
Areas planned to provide separation between residential and industrial zones are called spot zoning. buffer zones. protective zoning. set backs.
buffer zones.
In Oregon, state construction standards are addressed by zoning. housing codes. the Comprehensive Plan. building codes.
building codes.
In Oregon, the period of adverse possession is twelve years seven years ten years five years
condition A condition is a private use restriction in a deed that contains a reverter clause as an enforcement device; if the condition is violated, the property reverts to the seller.
Ownership of real estate gets transferred from one party to another upon recording the deed acknowledgement of the deed by the grantor payment of the stated consideration by the grantee delivery and acceptance of the deed
delivery and acceptance of the deed
If Kevin and Kyra hold title to real property as tenants in common, they will have equal rights of possession. have equal ownership interests. have the right of survivorship convert the tenancy to community property if they move to Oregon.
have equal rights of possession.
An electric company acquires the right to erect its poles and run its lines along the rear five feet of a lot. This property right is referred to as an easement by necessity by prescription in gross appurtenant
in gross An easement in gross is an easement that attaches a particular right to an individual or entity rather than to the property itself. Power company easements are examples of an easement in gross.
Appurtenances that do not have a physical, material existence are known as _________ appurtenances. eminent tangible incorporeal
incorporeal
A factor that distinguishes a license from an easement is that a license can be assigned. is revocable. is a permanent right. must be contained in a deed.
is revocable.
In Oregon, married couples who buy property together may hold title to real property under all of the following EXCEPT: joint tenancy. tenants by the entirety. tenancy in partnership. tenants in common.
joint tenancy.
An "estate for years" in real estate can also be called a: fee simple conditional. fee. leasehold. fee simple determinable.
leasehold
According to ORS, to create a subdivision means to divide land into three or more lots within a calendar year. means to divide land into two or more lots within a calendar year means to divide land into four or more lots within a calendar year. means to divide land after filing for escheat.
means to divide land into four or more lots within a calendar year.
The legal description "the Northwest ¼ of the Southwest ¼ of Section 7, Township 2N, Range 3 West" is defective because there is no reference to a boundary line. record of survey. lot number. meridian.
meridian. The government system that describes townships and ranges requires a principal meridian and baseline to reference its location.
The legal description method that uses a point of beginning and descriptive identifiers, such as "John Brown's Barn," is the metes and bounds description. government survey. lot and block description. rectangular survey.
metes and bounds description. A metes and bounds legal description means a property is identified by specifying the shape and boundaries using physical identifiers.
A Quitclaim Deed is mostly used to transfer property within a family or to remove any cloud on title. give notice to the world that an owner has rights in the property. deed any future rights in a certain piece of property. convey fee simple title.
remove any cloud on title.
Merlin owns a jewelry store. His business has grown and he needs to move to a larger location at the expiration of his current lease. He wants to move the display cases he purchased before the lease expires and install them in his new store. Merlin may: not remove the display cases if they are attached to the leased premises. not remove the cases unless he reimburses the landlord for their fair market value. remove the cases only with the written consent of the landlord. remove the cases prior to the expiration of the lease.
remove the cases prior to the expiration of the lease.
John is building a free-standing garage on his property. While John is doing his excavation work, a large section of his neighbor's property has a little slide and shifted towards John's property. John's excavation violated his neighbor's right of emblement. right to quiet enjoyment. right of subjacent support. right of lateral support.
right of lateral support.
If a person dies intestate and no heirs can be found, decedent's estate passes to: the state by reversion. the county by prescription. the state by escheat. the state by estoppel
the state by escheat.
Lisa and Beth hold title to their personal residence through a deed which stated "not as tenants in common, but with the right of survivorship." If Lisa dies before Beth, her interest will pass: to her heirs under the laws of distribution. to the state by escheat. to her heirs under her will. to Beth automatically.
to Beth automatically.
North and south boundaries of townships are created by metes and bounds descriptions. plat numbers. township lines. range lines.
township lines. Range lines run parallel to the principal meridian, creating the east/west borders for townships. Township lines run perpendicular to the principal meridian and create the township's north and south boundary lines.
All of the following instruments transfer title to real property EXCEPT: quitclaim deed. bargain and sale deed. warranty deed. trust deed.
trust deed.
If Athos, Porthos, Aramis, and D'Artagnan hold title as tenants in common, they would be unable to single out a portion of the land to call their own. would have the right of survivorship. could NOT transfer their interest without the consent of the others. must each own a 25% interest.
would be unable to single out a portion of the land to call their own.
Which of the following business organizations can hold title to real property? 1) General Partnership 2) Limited Partnership 3) Sub Chapter S Corporation 4) Limited Liability Company 1, 2, 3, and 4 2 and 4 only 2 and 3 only 1, 2, and 3 only
1, 2, 3, and 4
In Oregon, the time of possession for adverse possession is : 15 years. 10 years 7 years. 5 years.
10 years
How many acres are in the following description: E ½ of SW ¼ of NW ¼ of section 30? 10 acres 160 acres 40 acres 20 acres
20 acres
A township has 36 square miles. more than 10,000 hectares. 640 acres. 640 sections.
36 square miles. A township is 6 miles by 6 miles, or 36 square miles. It contains 36 sections that total 23,040 acres.
Which describes a co-tenancy? A) title vesting in two or more natural persons. B) title vesting in two or more legal persons. C) Tenancy in severalty. A only B only A and B only A, B, and C
A and B only
Which of the following statements concerning a life estate is false? A life estate is a freehold estate. A life estate can never extend beyond the life of the life tenant. A person holding a life estate can sell their life estate. All conveyances for a life estate have to be in writing to be enforceable.
A life estate can never extend beyond the life of the life tenant.
Which of the following best describes the concept of personal property? Any item of property that is not definable as real property. Any item acquired in a fee simple sale transaction Any item that is not naturally affixed to the earth. Any item that is movable and owned outright.
Any item of property that is not definable as real property.
Which one of the following is NOT a means of creating an easement? Implication Assignment Grant or reservation Prescription
Assignment
Voluntary Alienation in real estate could result from which of the following: A) Adverse possession B) Delivery of a deed C) Eminent domain D) Forfeiture A, B, C, and D A and B only B only A, B, and C only
B only
Real property includes A) appurtenances. B) anything that is not personal property. B only Both A and B A only Neither A nor B
Both A and B
Rancher John refused to sell property he owned in Jefferson County to the rural fire district because he felt the price the fire district was offering was insufficient. What proceeding would the fire district pursue to take John's property? Condemnation Escheat Foreclosure Police Power
Condemnation
Appurtenances that have a physical, material existence are which type of appurtenance? Corporeal Possessory Chattel
Corporeal
Which one of the following statements about a tenancy in common is true? Each tenant's interest must be equal. The tenants may have unequal rights of possession. Each party must have acquired their interest at the same time and under the same deed. Each tenant may sell their interest without the consent of the other tenants.
Each tenant may sell their interest without the consent of the other tenants.
Denise owns a piece of property that has an easement appurtenant over an adjoining parcel of land owned by Lisa. Which of the following statements is true? This type of easement can only be created by prescription. The burdened property is owned by Denise. If Denise bought Lisa's property, the easement would be eliminated by merging the two properties under one owner. Denise, as holder of the dominant tenement, could use the easement for any purpose.
If Denise bought Lisa's property, the easement would be eliminated by merging the two properties under one owner.
Margaret leased her life estate in the family home to her grandson, Jeff, for six years. Margaret, the governing life of the life estate, died prior to the expiration of the six-year lease. Upon Margaret's death, what is the status of Jeff's lease? Still valid until the expiration date, and Jeff will continue to make the lease payments to Margaret's estate. Still valid until the expiration of date of the lease, but Jeff must begin paying the rent to the remainderman. Invalid unless ratified by the administrator of Margaret's estate. Invalid because Margaret, also the governing life, died.
Invalid because Margaret, also the governing life, died.
Which of the following statements is true about an easement appurtenant? It can be terminated by the servient tenement. It cannot be terminated. It will be terminated if abandoned by the servient tenement. It can be terminated by the dominant tenement.
It can be terminated by the dominant tenement.
Which of the following is not real estate? Lessee's interest under a year-to-year lease Coal in the ground Air rights Growing trees
Lessee's interest under a year-to-year lease
Which is a freehold estate? Estate for years Life estate Estate at will Leasehold estate
Life estate
Five friends purchased a property as tenants in common. Which of the following apply? A) All of the owners must have equal interests. B) If one of the tenants dies, the remaining tenants automatically receive equal interests of the deceased tenant's share. Both A and B A only B only Neither A nor B
Neither A nor B
Regarding water rights in Oregon, which one of the following statements is TRUE? Oregon follows the Doctrine of Prior Appropriation Both the Doctrine of Riparian Right and the Doctrine of Prior Appropriation have been abolished in Oregon and they have been replaced with special statutes covering water rights. The Doctrine of Prior Appropriation in those counties which lie east of the Cascade Range and the Doctrine of Riparian Right applies in those counties west of the Cascade Range. Oregon follows the Doctrine of Riparian Right with modifying statutes.
Oregon follows the Doctrine of Prior Appropriation
In which of the following would you be least likely to find a full legal description of the property? Preliminary title report Deed Policy of title insurance Property tax statement
Property tax statement tax statement will most likely use a street address.
How would the section directly south of Section 16 be numbered? 15 17 21 22
Section numbering begins in the northeast corner of the township, then count westward by 6 until the end of the section, then move south by 1 section and starts counting east. The section directly south of Section 16 is Section 21.
The greatest estate that a person can hold in land is a life estate. an estate for years. a fee simple estate. an easement.
a fee simple estate.
The greatest interest an individual can have in real property is: a fee simple estate. a life estate. an estate for years. a leasehold estate.
a fee simple estate.
Gaining land by any natural or man-made cause is: reliction. accretion. avulsion. accession.
accession.
John is renting Wayne's house in Cannon Beach for 60 days. This is: a month-to-month tenancy. a periodic tenancy. an estate at sufferance. an estate for years.
an estate for years.
A possessory right or ownership interest in real estate is called an ad valorem. a lis pendens. an abstract of title. an estate.
an estate.
Recording a deed gives private notice. actual notice. presumptive notice. constructive notice.
constructive notice.
Farmer Brown owns 145 acres that include a house and barn. Farmer Brown's barn is a personal appurtenance. chattel real appurtenance. corporeal appurtenance.
corporeal appurtenance.
If the landowner refuses to allow a public utility company an easement, the government can seek to acquire the easement through eminent domain. partition action. escheat. police power.
eminent domain.
The City of Portland is planning on widening a street from two to four lanes. Joshua, a homeowner on this street, received a letter in the mail notifying him that the city will take 20 feet of his property for the street improvement. The city will appropriate Joshua's property and pay him for it though the process of possessory right. eminent domain. public power.
eminent domain.
Buffy and Xander are unmarried and own property together as tenants in common. Buffy has a will so her death during Xander's lifetime will result in her interest passing to her heirs or the persons designated in her will. her interest in the property passing automatically to Xander. Xander automatically owning the property as a tenant in severalty. Xander having to file a lawsuit to claim his interest in the property.
er interest passing to her heirs or the persons designated in her will.
The return of property to the state when its owner dies intestate and without heirs capable of inheriting is known as eminent domain. sovereign transfer. reversionary interest. escheat.
escheat.
Xander dies without a will or heirs so his property is life estated. escheated. allodial.
escheated.
Jenn Hudson willed a piece of property to Willamette University for so long as the property was used for educational purposes. Ten years after Jenn's death and the transfer of the property to the university, the land became very valuable and the university sold the property to a developer who built an arcade on the property.Jenn's heirs challenged the legality of the transfer and sued. As a result, the development company was found to have: no interest at all in the property. a tenancy in common with Hudson's heirs in the property. a fee simple interest in the property. a reversionary interest in the property.
no interest at all in the property.
Ownership in severalty means co-ownership by two or more natural or legal persons. ownership by one person. ownership by several natural persons. joint tenancy.
ownership by one person.
In a tenancy in common, the co-owners share survivorship. unity of interest. equality of interest. possession.
possession.
A deed that is NOT acknowledged is voidable. valid between the parties and will be accepted for recording by the county clerk. valid between the parties but will NOT be accepted for recording by the county clerk. void.
valid between the parties but will NOT be accepted for recording by the county clerk.
As far as its validity between grantor and grantee is concerned, a deed that is not dated, acknowledged, or recorded is: void. invalid because of the omissions. revocable by the grantor. valid despite these omissions.
valid despite these omissions.
A deed that is signed by the grantor and delivered to and accepted by the grantee, but that is not recorded is void. unenforceable. voidable. valid.
valid.
An estate was granted "To Margaret for the life of Jeff and then remainder to the City of Tigard Parks Department." Margaret has since passed away but Jeff is still living. The life estate vests in the heirs or devisees of Margaret. escheated. transferred to the City of Tigard, Parks Department. reverted to Jeff.
vests in the heirs or devisees of Margaret.
If a life tenant causes damage to occur to a property, either by willful or negligent acts, this would be an example of: violation of the covenant of seizen. unlawful trespass. waste. a violation of the covenant of quiet enjoyment.
waste.
Dedication is when a private party makes a voluntary gift of land to the public. the right of the government to expropriate private property for public use. the result of an adverse possession suit to gain title. when the government transfers land to a private party.
when a private party makes a voluntary gift of land to the public.
In a trust deed foreclosure A) the borrower can cure the default any time up to five days prior to the sale B) the borrower has a one-year right of redemption A only Both A and B B only Neither A nor B
A only
The Maximum Assessed Value (MAV) is allowed to increase each year by not more than __________ percent. 2 3 4 5
3
A township contains 36 sections. 6 square miles. 24 sections. 640 acres.
36 sections.
Which one of the following is least likely to be considered a fixture? A fireplace grate and andirons custom made for a fireplace. A set of fireplace tools for a built-in fireplace. Custom made storm doors. A built-in kitchen range.
A set of fireplace tools for a built-in fireplace.
An owner can defeat a claim of adverse possession by A) Evicting the adverse claimant within the statutory time period B) Resuming actual possession within the statutory period. C) Claiming consent being given for use, not ownership. A and B A only A, B, C B only
A, B, C
The land and all the improvements on it can be called A) realty. B) real estate. C) real property. A, B, and C B only A and C only A and B only
A, B, and C
Which statement is FALSE? Escrow agents must act as fiduciaries until escrow is closed Escrow agents should fill in the empty blanks in a preprinted sale agreement. Escrow agents are to act impartially toward the parties to the escrow. Escrow agents must follow escrow instructions.
Escrow agents should fill in the empty blanks in a preprinted sale agreement.
Pedro wants to upgrade the electrical panel in his house from a fuse system to a circuit breaker system. Which statement is FALSE? As the homeowner, Pedro can do the electrical work himself and without an electrical permit. A circuit breaker system is superior to a fuse system Changing from a fuse system to a circuit breaker requires a permit If Pedro gets a permit, an inspector will inspect the work to ensure compliance with the electrical code.
As the homeowner, Pedro can do the electrical work himself and without an electrical permit.
An owner of a cooperative apartment has A) title as community property B) an ownership interest in the one entity that must pay taxes, mortgage insurance and principal, and operating expenses C)a proprietary long term lease List all that apply
B & C Oregon is not a community property state.
Which of the following about encumbrances is true? An income tax levy may become a lien but it is not an encumbrance Title insurance is not generally available for encumbered property Buyers commonly accept deeds to property which is encumbered All specific liens are voluntary liens
Buyers commonly accept deeds to property which is encumbered
A standard coverage title policy insures against A) building code changes. B) unrecorded easements. C) forged recorded deeds. D) lack of capacity of the grantor. A, B, and C only A and B only B only C and D only
C and D only A standard coverage title policy insures against title problems that might already exist, such as forged record deeds and a lack of capacity on part of the grantor, to name a few. Although problems with title are rare, they can be catastrophic.
Who normally puts deed restrictions on property in a subdivision? Zoning Commission. Developer. Real Estate Commissioner. Planning Commission.
Developer.
Which of the following legal descriptions typically uses a principal meridian? Government survey Lot and block Metes and bounds All of the above
Government survey
The tax year for real property in Oregon is from November 16 through the following November 15. October 1 through the following September 30. January 1 through the following December 31. July 1 through the following June 30.
July 1 through the following June 30. The tax year for real property in Oregon is from July 1 through the following June 30. It is based on an annual budget for each fiscal year. Each taxing district that is subject to Oregon's Local Budget Law must collect an amount of taxes to support their budget. This budget is based on the fiscal year starting July 1st and ending on June 30th.
Which one of the following is NOT a duty or responsibility of an escrow agent? Follow the written escrow instructions of the seller and buyer Review the purchase agreement and insert any missing clauses Act impartially for both the seller and buyer Act as a fiduciary until escrow is closed
Review the purchase agreement and insert any missing clauses
In what corner of a township would you find Section 1? Southwest corner Northwest corner Southeast corner Northeast corner
Northeast corner
A buyer has located a parcel of land to purchase but is concerned that there may be encroachments on the property. What should the buyer do to verify that there are no encroachments? Order a survey Obtain a warranty deed from the seller Order an abstract Obtain a standard title insurance policy
Order a survey
Involuntary alienation means an estate cannot be transferred without the consent of the owner ownership is transferred by operation of law against the owner's consent. no one can be compelled to relinquish title without consent aliens are forbidden ownership in fee simple
Ownership is transferred by operation of law against the owner's consent. Involuntary alienation would be the forced transfer of title from one owner to another party.
Which of the following deeds has the least number of warranties? General warranty deed Bargain and sale deed Special warranty deed Quitclaim deed
Quitclaim deed
Which is NOT a warranty found in the Warranty Deed? The grantor will reimburse the grantee if the structure is defective. The estate is free of all encumbrances except as stated in the deed. The grantor will defend the title against all lawful claims except as stated in the deed. The grantor is the owner of the property.
The grantor will reimburse the grantee if the structure is defective.
A Quitclaim Deed conveys a first lien on the property. a fee title to the property. an existing interest in the property. an after acquired interest in the property.
an existing interest in the property.
A standard title insurance policy does NOT protect against loss resulting from the grantor's lack of capacity. failure to deliver an earlier recorded deed. forgery in the chain of title. encroachments on the property.
encroachments on the property. The five exceptions (i.e., not covered) by a standard title insurance policy are 1) taxes and assessments that do not appear as a lien, 2) any interests or claims not shown on the public record but could be discovered by a simple visual observation or conversation with the property owner, 3) easements and encumbrances not shown on the public record, 4) other liens, such as workers' compensation or construction liens, that are not on the public record, and 5) discrepancies or boundary line disputes that a land survey would correct.
Baron and Sam own a ranch outside of Bend as tenants in common. Each has an undivided one-half interest in the property. Baron operates the ranch and is in sole possession of the property. Baron is NOT liable to Sam for: money received for the minerals extracted from the land. rents received from third parties for the use of a portion of the land. payments of rent to Sam for his possession of the land. payments Sam makes on the mortgage executed by Baron and Sam.
payments of rent to Sam for his possession of the land.
"Chattels" refers to the right of supplementation. the right to continue to graze livestock after the lease expires. personalty. the tenancy of a wife in the estate of her deceased husband.
personalty. Personal property
Land owned by an individual is categorized as escheat. public property. private property.
private property.
The primary justification for a zoning ordinance is to: protect the public health, safety, and general welfare of an area. prevent an over-supply of specified types of business enterprises within a zoned area. control the quality of building construction. maintain conformity in the physical requirements of a building in a zoned area.
protect the public health, safety, and general welfare of an area.
The escrow agent in a real estate sales transaction is a sub-agent of the brokers. acts only on express written instructions from the brokers. serves as an attorney for the parties to the transaction. protects the interests of each party as a neutral agent.
protects the interests of each party as a neutral agent.
A tenant's rental agreement provides that the lessor guarantees the right to use the property without interference. This is known as the covenant of: quiet enjoyment. title. seizen. against interference.
quiet enjoyment.
Land and anything permanently affixed to the land is known as real property. chattel real. personal property.
real property.
"Police power" is the government's right to acquire privately held real estate for public use. regulate the use of real property in the public interest; to zone property. to forcefully take privately held real property and return it to the state. levy taxes on real property.
regulate the use of real property in the public interest; to zone property.
Brian and Mary accumulated real property as tenants in severalty while single. After they married, their properties automatically revert to a tenancy in common. remain as tenancies in severalty. automatically become joint tenancy properties. automatically become tenancies by the entirety.
remain as tenancies in severalty.
John's property taxes for the year July 1, 2011, through June 30, 2012, are calculated at $4,200. That is simply too much for him to afford. How many years does he have until his property is subject to foreclosure? 2 3 4 5
3 The property is subject to foreclosure when taxes are three years delinquent or on May 16th of the third year.
Subdivision restrictions may include which of the following? (check all that apply) A) Prohibitions against the parking of disabled automobiles in the driveways or streets within the subdivision B) Prohibitions against the sale of properties in the subdivision to members of a minority race C) Prohibitions against an incompatible use of the property within the subdivision
A & C
Which statement about a nonconforming use is FALSE? If a nonconforming use is destroyed by fire, it cannot be replaced by another nonconforming use. The owner of a nonconforming use property cannot make structural changes to the property to expand the nonconforming use. A jurisdiction can terminate a preexisting nonconforming use under its police power. A preexisting use of a property may not conform to current zoning laws and is a "grandfathered" permitted use.
A jurisdiction can terminate a preexisting nonconforming use under its police power.
With an easement appurtenant, the servient tenement A) is burdened by the easement. B) can terminate the easement if the easement causes the owner great inconvenience. B only A only Both A and B Neither A nor B
A only The servient tenement is the party granting the benefit or suffering the burden. The servient tenement CANNOT terminate the easement because of inconvenience.
Ellen and Porsche own their personal residence as tenants by the entirety. Which of the following statements is true? A) If Ellen dies, Porsche will automatically become the owner of the property. B) Ellen can transfer her interest by will upon her death. C) Ellen and Porsche are spouses. D) Neither Ellen nor Porsche can transfer their interest by will upon their death. D only A, C and D A only B and C
A, C and D
Which statement is TRUE? Homestead laws do not protect the family against losing their home to general creditors. A homestead can be a property held for investment. Homestead laws are NOT applicable in Oregon. Homestead laws generally provide that the homestead interest cannot be conveyed by one spouse.
Homestead laws generally provide that the homestead interest cannot be conveyed by one spouse. A homestead is one's principal residence and a homestead interest cannot be conveyed by one spouse. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts. Homestead laws generally provide that the homestead interest cannot be conveyed by one spouse; both spouses must sign the deed conveying homestead property.
Which statement does NOT apply to condominium ownership? Individuals are responsible only for mortgage indebtedness and taxes involving their unit and a proportionate share of the property held in common. Individual take title to their units and an interest in commonly held property. Each owner receives a tax bill which covers the value of his unit. Liens against individual units or individual unit owners are liens against the other owners interest in the common elements.
Liens against individual units or individual unit owners are liens against the other owners interest in the common elements.
Michael purchased a condominium unit in the Eagle Rock complex. The complex includes a number of common facilities such as an outdoor swimming pool, recreation center, tennis courts, and walking trails. Under the typical condominium arrangement, these common elements are owned by Michael and the owners of the other units in the condominium in the form of divided interests. Michael and the owners of the units in the condominium in the form of undivided percentage interest. a corporation in which Michael and the owners of the other units in the condominium own stock. the association of homeowners in the condominium.
Michael and the owners of the units in the condominium in the form of undivided percentage interest. The common areas are defined as the entire development, less the units.
Which statement about a tenancy in common is FALSE? Each co-owner has the right of undivided possession to the entire property. Each co-owner can sell his interest in the property without the consent of the other co-owners. The interest of a deceased co-owner is divided among the surviving co-owners. Any co-owner can file suit to partition the property.
The interest of a deceased co-owner is divided among the surviving co-owners.
Which statement is true? Congress has declared that it has exclusive jurisdiction over all water rights within the United States. The ownership and use of water in states where water is scarce is often determined by the doctrine of prior appropriation. Water located on the surface of the earth, such as lakes, rivers, and streams, is called ground water. All states subscribe to the common law doctrine of riparian rights.
The ownership and use of water in states where water is scarce is often determined by the doctrine of prior appropriation.
Jeff added custom storm windows on his house to fit its uniquely shaped windows. The storm windows may best be described as personal property. f ructus industrials. a fixture. chattel.
a fixture.
Saeed conveys his property to Terri but retains a life estate for himself as the life tenant and governing life. Terri has a dower-limited estate. a remainder interest. a reversionary estate. a life tenant estate.
a remainder interest.