RE Chapter 1

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RE Chapter 1
2014-09-11 15:09:17

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  1. Burdens on property, including money and non-money burdens
  2. The rights or interests a person has in the thing owned
  3. All property is either ______ or ________.
    Real; personal
  4. The owner of a property owns a _________.
    Bundle of rights
  5. "That which is immovable by law."
    Real property
  6. Real property includes:
    • Land
    • Anything affixed to the land
    • Appurtenances
  7. Includes reasonable use of surface, mineral, airspace, and water rights
  8. Mineral rights transfer automatically when...
    When land is sold
  9. 3 Ways water rights may be severed
    • -Voluntary transfer
    • -Condemnation
    • -Prescription
  10. Riparian rights refer to
    Moving water (rivers, streams)
  11. When a river or stream is a boundary of a piece of land, the riparian owner owns _____________
    The land to the midpoint of the river or stream
  12. When a river or stream is a navigable waterway, the riparian owner owns __________
    The land up to the water's edge
  13. Can ownership of riparian rights be accurately determined by examining public records?
  14. Littoral rights refer to
    Non-moving water (ponds, lakes, oceans)
  15. When the government gives permission to a non-riparian owner to take water from another landowner or a public waterway, this is called _________
  16. The acquisition of a property by it being added to other property
  17. The process of gradual or imperceptible additions to land bordering a river or stream, that can result in an individual acquiring title to the land
  18. An individual acquires title to land by "natural causes" as a result of a process called __________
  19. Soil deposited by accretion
  20. The sudden violent tearing away of land by the action of water
  21. The gradual wearing away of land by natural forces, resulting in loss of title
  22. An increase in land by the permanent withdrawal of a sea or river
  23. Objects attached to the land, may become real property; defined as "something incorporated into real property"
  24. Examples of ___________ include homes, load-bearing walls, & built-in swimming pools
  25. Acronym for determining if something is a fixture or not
  26. MARIA, used to determine if something is a _____ or not, stands for:
    • Method of Attachment or annexation
    • Agreement between the parties
    • Relationship of the parties
    • Intention of the parties
    • Adaptability of the object
  27. Factors that are NOT considered when determining if something is a fixture (3)
    • Cost
    • Size
    • Time of installment
  28. Things used with the land for its benefit, considered real property
  29. Appurtenances _____ with the land
  30. Vegetation is considered _____ property
  31. Stock in a mutual water company is _____ to the land. It is considered _____ property.
    • Appurtenant
    • Real
  32. Personal property is also known as _______ or _______
    • Chattel
    • Chose
  33. Generally movable property, includes leases, trade fixtures, business opportunities, and mobile homes
    Personal property
  34. Title to personal property ______ (is/is not) generally found by searching the public records
    Is NOT
  35. Can personal property be hypothecated?
  36. Most personal property is transferred with a ________
    Bill of Sale
  37. A bill of sale must be signed by the __________
  38. Borrower retains possession of an item of personal property, securing the debt (like a trust deed, mortgage, or pink slip for a car loan)
  39. Fixture which is attached to leased property by a business tenant specifically for use in his trade or business
    Trade fixture
  40. Trade fixtures are considered _________ property of the tenant
  41. Crops may be __________ property
    Real OR Personal
  42. Crops which replenish themselves and do not require annual planting are usually ______ property
  43. Crops which must be planted annually, known as ______, are usually ________ property and owned by the _______
    • Emblements
    • Personal
    • Person who planted them
  44. All crops when cut, mortgaged, or sold, become _______ property
  45. The act of removing something attached to the land and, by doing so, changing its status from real to personal property
  46. Types of money burdens (liens) - (4)
    • Trust deeds
    • Mortgages
    • Taxes
    • Judgments
  47. Examples of non-money burdens (4)
    • Zoning
    • Easements
    • Deed restrictions
    • Leases
  48. Buyers commonly purchase ________ property
  49. A homestead ______ is/is not an encumbrance
    Is not
  50. Also known as a "charge against property"
  51. Money encumbrances, or liens, are placed against the property either ________ or _______
    • Voluntarily
    • Involuntarily
  52. 4 ways liens are categorized
    • Specific
    • General
    • Voluntary
    • Involuntary
  53. Burdens (liens) on a particular parcel
    Specific liens
  54. Examples of specific liens (MAMPTL)
    • Mechanic's liens
    • Attachment
    • Mortgage
    • Property tax
    • Trust deeds
    • Lis pendens
  55. Burdens (liens) on any and all real property of the owner in the county where they are recorded
    General liens
  56. Examples of general liens (2)
    • Judgment Liens
    • Income tax liens
  57. Examples of voluntary liens (2)
    • Mortgages
    • Trust deeds
  58. Types of involuntary liens (4)
    • Mechanic's lien
    • Lis pendens
    • Attachment lien
    • Judgment lien
  59. Money encumbrances recorded by people who have performed work or furnished materials for the improvement of real property and were not paid for their work
    Mechanic's lien
  60. The only lien type that must be both verified and recorded
    Mechanic's lien
  61. Mechanic's liens take priority…(2)
    • Earlier than the date of recording
    • The day the work began or materials were first furnished
  62. In the case of a mechanic's lien, this is recorded by the owner if someone else (like a tenant or vendee in a land contract) has work done on the owner's property
    Notice of non responsibility
  63. In a mechanic's lien, a notice of non responsibility must be filed within ____ days of obtaining knowledge of the improvement
  64. Major types of encumbrances (2)
    • Money
    • Non-money
  65. What types of liens usually have priority?
    Government liens
  66. 3 factors that affect the filing of a mechanic's lien
    • Notice of non responsibility
    • Date of project completion
    • Date of labor cessation
  67. In a mechanic's lien, if a notice of completion is not recorded, the claimant has _____ days after completion of the work to file the lien
    90 days
  68. How are the funds from a construction loan typically released?
    In a series of progress payments
  69. When is the last payment of a construction loan typically disbursed?
    After the period to file a mechanic's lien has expired
  70. Notice of pending litigation concerning title or possession of real property that must be recorded and clouds the title
    Lis pendens
  71. A lis pendens is effective as long as _________
    Litigation is pending
  72. A lis pendens is a type of _______ lien
  73. Type of involuntary lien created by recording a writ of attachment, holding real property to ensure it will be available to satisfy judgment in a lawsuit
    Attachment lien
  74. Court-ordered, involuntary general lien upon all real property of the debtor located in the county of recordation
    Judgment lien
  75. Judgment liens are created by ______
    Recording an abstract of judgment
  76. Judgment liens are valid for _____ years and enforced by way of an "_____"
    • 10
    • Execution sale
  77. In a judgment lien, the court orders the sale of the property by a _________ sale to satisfy a judgment with a __________
    • Sheriff's
    • Writ of execution
  78. Easements, encroachments, and restrictions are  types of _____
    Non-money encumbrances
  79. Encumbrances that affect the physical condition or use of the property, and do not include liens
    Non-money encumbrances
  80. The right to enter or use another person's land within definable limits
  81. Easements are _____ during the time limits specified, and all easements are ____ property
    • Irrevocable
    • Real
  82. What is the time limit for an easement?
    Easements can be created for any length of time
  83. The land that gets the benefit of an easement
    Dominant tenement
  84. The land that is crossed by an easement, and thus encumbered (burdened) by it
    Servient tenement
  85. Every easement must have a ______ tenement
  86. An easement that benefits the land of the dominant tenement, as a buyer will automatically receive this and have the same rights as the seller had
    Appurtenant Easement
  87. Do dominant and servient tenements of an appurtenant easement need to touch each other?
  88. An easement that benefits a person or corporation that does not necessarily own land nearby, and involves at least one parcel of land

    e.g. a utility easement for power lines
    Easement in Gross
  89. Ways an easement is created (3)
    • Express Grant
    • Reservation
    • Prescription
  90. Method of creating an easement in which the parties simply agree to use one
    Express grant
  91. Tenant-granted easements may not extend beyond __________
    The term of the tenant's lease
  92. An easement retained by a grantor when conveying property is called _______
  93. Easement created through long-term use of land without the permission of the landowner, must meet similar requirements as adverse possession
    Prescription/Prescriptive Easement
  94. Requirements of an easement by prescription (5) - CHORP
    • Use must be under some claim of right
    • Must be hostile (without permission)
    • Must be open and notorious (apparent to landowner)
    • Must be reasonably continuous for 5+ years
    • Property taxes must ONLY be paid if they are assessed separately against the easement
  95. Property taxes ______ (do/do not) need to be paid to create a prescriptive easement
    Do NOT
  96. Ways of terminating an easement (4) - MEND
    • Merger
    • Express release
    • Non-use for 5 years (for prescriptive easements)
    • Destruction of the servient tenement
  97. A method of terminating an easement in which the holder of the dominant tenement signs a quitclaim deed
    Express release
  98. Method of terminating an easement in which the owner of the easement acquires the servient tenement
  99. Is an unlocated easement still valid?
  100. Non-money encumbrance in which an improvement on a property is wrongfully placed on another property, a type of trespass
  101. An owner is allowed ______ in which to sue his neighbor to have an encroachment removed
    3 years
  102. Type of non-money encumbrance that restricts the free use of land by an owner, either private or public
  103. CC&R's refer to ______
    Covenants, conditions, & restrictions
  104. Restrictions that are created by the grantor or developer in a deed or by written agreement, and do not include zoning laws
    Private restrictions
  105. CC&R's are usually placed in a " ______ "
    Declaration of restrictions
  106. A court order restricting a party from doing an act, such as violating public restrictions
  107. A promise to do or not to a certain thing
  108. A breach of a covenant results in a _____ or ____
    • Court action for damages
    • Injunction
  109. A qualification of an estate held by a grantee
  110. A breach of a condition affects the estate created, and the failure to comply with it may result in ______
    Forfeiture of title
  111. The remedy for the breach of a condition is considered to be _____ serious than breach of a covenant
  112. Which is more serious, breaching a Condition or a Covenant?
    Breaching a Condition
  113. It is (illegal, legal) for a deed restriction to prohibit "For Sale" signs
  114. Most commonly, public restrictions refer to _________
    Zoning laws
  115. Restrictions that are justified for the safety, health and general welfare of the public
    Public restrictions
  116. Type of zoning law that is illegal
    Retroactive zoning law
  117. In regards to public restrictions, an owner may continue to use a nonconforming structure under a ____________
    Grandfather clause
  118. Ways a landowner may petition to use his property in a way that zoning won't allow him to (2)
    • Rezoning (changing zoning in the area)
    • Variance for his land
  119. Process of changing zoning for an area
  120. Type of zoning exemption an owner may get for his land if he can show that unique circumstances exist, and that they do not injure the public
  121. Changing zoning from a high density use to a lower density use
  122. if zoning conflicts with deed restrictions, the ____ (more, less) restrictive of the two controls
  123. "What is owned," defines ownership rights and interests, along with the degree, quality and quantity of interest one has in property
  124. An estate of indeterminable duration
    Freehold estate
  125. Other names for Fee simple estate (4)
    • Perpetual estate
    • Estate of inheritance
    • Estate in fee
    • Fee estate
  126. An estate which is indefinite in duration and can be sold or inherited

    May have encumbrances
    Fee simple estate
  127. The greatest interest one can have in real property, an estate that is not subject to termination
    Fee Simple Absolute
  128. A fee simple estate that is subject to termination if a certain condition isn't met or if a specified event occurs
    Fee Simple Defeasible
  129. Example of a fee simple defeasible estate
    Owner gives title on the condition that there will be no alcohol sold, if alcohol is sold, title is defeated and reverts back to the grantor
  130. When a condition in a deed will cause title to revert back to the grantor if certain acts occur in the future, the condition may be described as  a ______________
    Condition subsequent
  131. A freehold estate limited in duration to someone's life
    Life Estate
  132. Holder of a life estate
    Life tenant
  133. Life tenants _____ (may, may not) sell, lease, or encumber the property
  134. When a life tenant dies, the property (life estate) will ____________
    Revert back to the holder of the estate in reversion and any sale/lease/encumbrance is cut off
  135. Can a life estate be willed?
  136. An estate held by the original grantor if the property is to revert to him
    Estate in reversion
  137. Other names for Less-Than-Freehold Estates (2)
    • Leasehold estate
    • Chattel real
  138. The legal interest in real property held by a tenant who is leasing or renting
  139. Less-than-freehold-estates are ____ property, and considered _________ encumbrances against a property
    • Personal
    • Non-money
  140. Types of leasehold estates (4)
    • Estate for years (lease)
    • Estate of periodic tenancy (month-to-month)
    • Estate at will
    • Estate at sufferance
  141. Type of leasehold estate that must have a termination date
    Estate for years (lease)
  142. Type of leasehold estate that involves occupancy for an indefinite period
    Estate at will
  143. Type of leasehold estate in which the tenant who has rightfully come into possession of rental property retains possession after the expiration of the term
    Estate at sufferance
  144. Parties in a leasehold estate (2)
    • Landlord, or lessor
    • Tenant, or lessee
  145. Party in a leasehold estate that transfers an interest in his estate for a term less than his own, retaining a "reversionary interest," and considering the lease his personal property
  146. Party in a leasehold estate that holds the leasehold estate as his personal property
  147. Types of Leases (3)
    • Gross Lease
    • Net Lease
    • Percentage Lease
  148. Type of lease in which the lessee pays a fixed amount, & the lessor pays expenses
    Gross lease, or flat lease
  149. Type of lease in which the lessee pays expenses such a taxes, insurance, & maintenance, benefiting the landlord by giving him a fixed income
    Net lease
  150. Type of lease in which the lessee pays rent based on a percentage of gross receipts of the lessee's business (i.e. commercial parking lot pays the highest percentage)
    Percentage lease
  151. The following must be included in a lease (LAND)
    • Length of time
    • Amount of rent and method of payment
    • Names of the parties
    • Description of the property
  152. Leases longer than one year must ___________
    Be writing
  153. A lease for agricultural or horticultural purposes cannot exceed ______ years. A lease for urban property cannot exceed _____ years
    • 51 
    • 99
  154. A written lease must be signed by the _____ only, but is only enforceable if
    • Lessor/landlord
    • The tenant takes possession of the property and pays rent
  155. The sale of a property usually ____ (does, does not) terminate a lease
    Does not
  156. A landlord must return a copy of a written lease or rental agreement to the tenant within __________
    15 days
  157. Money a landlord spends to customize space for the needs of a particular tenant
    Tenant improvement allowance
  158. Ways a leasehold interest can be transferred (2)
    • Sublease
    • Assignment
  159. Type of leasehold transfer in which the original lessee gives up a PORTION of his overall interest
  160. A sublease transfers ________ of the property, but not __________
    • Possession
    • Ownership
  161. A sublease is ______ to the original lease, and the original lessee remains ______
    • Subservient
    • Liable for rent
  162. Type of lease transfer in which the tenant transfers all the rights and interests to a new tenant
  163. When a tenant assigns his lease to someone else, the assignee becomes ______
    The new tenant
  164. The assignment of a tenant's interest ____ (does, does not) relieve the original tenant from liability
    Does not
  165. A tenant may assign or sublease _____ (with, without) the landlord's permission as long as the lease doesn't prohibit it
  166. If a landlord fails to make repairs after notice of problems, and premises become uninhabitable, tenant may make the repairs as long as ____________
    The cost of repairs is not more than one month's rent
  167. If a tenant pays for his own repairs because of owner's failure to do so after notice, tenant can either _____ or ________
    • Deduct expenses of repairs from the rent
    • Terminate the lease
  168. An owner _____ (is, is not) required to give notice to terminate to a tenant at the end of an estate for years
    Is not
  169. When a landlord and tenant mutually agree to terminate a lease, and do not dispute the amount of debt
  170. An agreement to accept something different from (usually less than) what the contract originally called for
    *Different than surrender
    Accord and satisfaction
  171. A tenant voluntarily relinquishes possession of the rented premises without the landlord's consent and with the intent to never return
  172. Security deposits on residential property may not exceed _____ months' rent on unfurnished dwellings or _____ months' rent on furnished dwellings
    • 2
    • 3
  173. When a tenant vacates a rental unit, the landlord must return the unused portion of the security deposit to the tenant within ______
    21 days
  174. Title superior to a tenant's held by the landlord
    Paramount title
  175. Tenants are entitle to the right of _______, meaning they can possess the property without someone claiming _____
    • Quiet enjoyment and possession
    • Paramount title
  176. The personal and nonassignable right to do a particular act on the land of another
    May be revoked, unlike an easement
  177. The power of the government to take private property for public use
    Eminent domain, or condemnation
  178. Eminent domain may be exercised by ____ (3)
    • Governments
    • Public school districts
    • Utilities
  179. The government pays _____ for property taken under eminent domain
    Fair market value
  180. If an owner objects to eminent domain, the government must ______
    Bring a condemnation action in court
  181. Eminent domain is not part of _____ or _____
    • Police power
    • Zoning
  182. Compensation paid for a property taken by eminent domain is known as " _____ "
    Fair and just
  183. When a property is condemned under the _______, no compensation is paid
    Health & Safety Code
  184. If a public work results in damage to property, a private party may bring a court action to force the government to purchase the property
    Inverse condemnation
  185. Example of inverse condemnation
    Airport is built near a property and the home is disturbed by planes & noise
  186. Inverse condemnation is the opposite of ______
    Eminent domain
  187. The right of government to pass and enforce laws for the order, safety, health, morals, and welfare of the public
    Police Power
  188. Police power is simply ______
    Government regulation of property
  189. Examples of police power (3)
    • Rent control
    • Planning & zoning laws
    • Building & subdivision laws
  190. When a person dies leaving no heirs and no will, the state gets the property. This process is known as _______
  191. An individual may never acquire land by _____
  192. When the government transfers land to an individual in a public sale, it uses a ____ to transfer title, not a deed
  193. A court suit to perfect title, usually by removing a cloud on the title
    Quiet title action
  194. Occurs when a person dies without a will, but with heirs. The heir acquires the property through probate court
    Intestate succession
  195. Judicial proceeding that takes place after a person dies, to make sure the debts are paid and assets of the decedent are properly distributed
  196. Commission paid to real estate agents in a probate sale is determined by _______
    Superior judge (court order)
  197. The sale of a property under a writ of execution to satisfy a judgment
    Execution sale
  198. Acquiring title to a property by 5 years of exclusive, open, notorious, continuous possession of the property, contrary to the original owner's best interests, under a claim of right or title, and by paying property taxes
    Adverse possession
  199. Requirements of adverse possession (5)
    • Exclusive possession
    • Open and notorious possession
    • Hostile (against owner's best interests)
    • Under a claim of right or color of title
    • Pay property taxes for 5 years
  200. Used to perfect title when property is acquired through adverse possession
    Quiet title action
  201. Grants cities and counties control over the design of a subdivision (streets, sewers, etc.)
    Subdivision map act
  202. Under the Subdivision Map Act, cities and counties develop a ______ showing the location of streets, freeways, commercial districts, seismic activity zones, etc.
    Master Plan
  203. The primary tool used by the planning commission is ________
  204. Master plans are implemented by ________
    Zoning laws
  205. A subdivision of ______ parcels is only regulated by the Subdivision Map Act
    4 or less
  206. Law designed to prevent fraud, regulated by the RE State Commissioner
    Subdivided Lands Law
  207. To stop violations of the Subdivided Lands Law, the Real Estate Commissioner issues a ________
    Desist & Refrain order
  208. A subdivision of _____ parcels is regulated by both the Subdivision Map Act and the Subdivided Lands Law
    5 or more
  209. To comply with the Subdivided Lands Law, a subdivider submits important info to the Commissioner, including:
    • Financial arrangements to assure completion of the facilities
    • Contracts, maps, and finance docs
  210. In regards to the Subdivided Lands Law, when there is a blanket encumbrance, the RE commissioner may require ______ to protect the buyer's purchase money
    An impound account
  211. Issues by the RE Commissioner when all of his requirements have been met according to the Subdivided Lands Law
    Final Public Report
  212. A Final Public Report may be obtained by ______. A copy must be given to ____, and subdividers must get _____ in return before entering into a binding contract
    • Anyone who requests it
    • Buyers
    • A receipt
  213. A receipt for the Final Public Report must be kept on file by the ______ for a minimum of _____
    • Subdivider
    • 3 years
  214. A subdivision common, undivided interest in a parcel of real property, together with a separate interest in the airspace in a particular unit
  215. A condominium may be ______, _______, or even a ______ building
    • Residential
    • Industrial
    • Commercial
  216. Common area of condominiums include ______
  217. In a condominium sale, the seller must give the buyer copies of: (3)
    • Condo's bylaws
    • CC&Rs
    • HOA financial statement
  218. Each unit in a condo subdivision is assessed ______, and the owners of each unit receive their own _____
    • Separately
    • Property tax bill
  219. Any area or tract of land where 2 or more lots are rented or leased to accommodate manufactured home, mobile homes, or RVs
    Mobilehome Park
  220. A kind of real estate development which consists of vacant parcels or dilapidated structure in an urban area targeted for new construction
  221. The 3 phases involved in building a single family dwelling
    • Land acquisition
    • Development
    • Construction
  222. Vital element to consider in planning a subdivision
    Comprehensive market analysis
  223. The housing & construction industry is controlled primarily by: (3)
    • Local building codes
    • State housing law
    • Contractors state license law
  224. When an owner sells apartment units to tenants and the tenants own the parking areas, halls, walks, etc. in common, it can be described as a _______
  225. The purpose of the State Housing Law is to _________, and is required to be substantially the same as the _______
    • Set minimum construction standards
    • Uniform Building Code
  226. When comparing federal, state, and local building codes, _____ usually set the highest construction standards
    Local building codes
  227. Dept of Building & Safety issues ___________, & minimum construction standards are enforced by enforced by _____
    • Building permits
    • Building inspectors
  228. Sanitation, sewage, & occupancy regulations are enforced by ___________
    Local health officers
  229. Flooding is considered "frequent" if it occurs on average more than once in _____
    10 years
  230. According the the _______, a negative declaration indicates that the subdivision does NOT harm the environment; therefore, a negative declaration is ____
    • Environmental Quality Act
    • Good
  231. Act that allows the conversion of existing rental units to condominium
    Environmental Quality Act
  232. An urban planning and transportation theory that concentrates growth in compact walkable urban centers to avoid sprawl
    Smart Growth