Principles- Unit 3: Encumbrances and Transfer of Ownership Quiz

Card Set Information

Author:
wazhma
ID:
286922
Filename:
Principles- Unit 3: Encumbrances and Transfer of Ownership Quiz
Updated:
2014-10-24 03:58:04
Tags:
Principles Unit
Folders:

Description:
Allied Schools: Principles, Unit 3: Encumbrances and Transfer of Ownership Quiz
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user wazhma on FreezingBlue Flashcards. What would you like to do?


  1. The form of encumbrance that makes specific property the security for the payment of a debt or discharge of an obligation is called a:
    A) fief.
    B) reservation.
    C) lien.
    D) quitclaim.
    C) lien. Hint: A lien creates an obligation on a specific property.
    (this multiple choice question has been scrambled)
  2. When someone dies, leaving a valid will, he or she is known to have died:
    A) by eminent domain.
    B) intestate.
    C) in probate.
    D) testate.
    D) testate. Hint: Testate means that a person died leaving a valid will.
    (this multiple choice question has been scrambled)
  3. A partition action is a court proceeding to clear a cloud on the title of real property.
    False
    True
    • ANSWER: FALSE
    • Hint: Quiet title action is a court proceeding to establish an individual's right to ownership of real property against one or more adverse claimants.
  4. How is constructive notice of a sale given?
    A) By acknowledging the deed
    B) By giving priority to the deed
    C) By recording a deed or by taking possession of the premises
    D) By restricting the deed
    C) By recording a deed or by taking possession of the premises. Hint: After a deed has been acknowledged by the grantor, it may be filed with the county recorder, giving constructive notice of the sale.
    (this multiple choice question has been scrambled)
  5. A grant deed is considered executed when it is:
    A) acknowledged by the grantee.
    B) signed by the grantor.
    C) recorded by the grantee.
    D) delivered by the grantor
    B) signed by the grantor. Hint: One of the requirements for a valid deed is that the deed must be executed (signed) by the grantor.
    (this multiple choice question has been scrambled)
  6. A restriction is a limitation placed on the use of property and may be placed by a private owner, a developer, or the government. Private restrictions are primarily zoning laws that promote public health or general public welfare.
    False
    True
    • ANSWER: FALSE
    • Hint: Private restrictions are created in the deed at the time of sale or in the general plan of a subdivision by the developer. Public restrictions are primarily zoning laws (zoning) which promote public health or general public welfare.
  7. The owner of an apartment building does not declare the income from the rental units. The IRS filed a government tax lien, which would be a:
    A) voluntary general lien.
    B) judgment lien.
    C) involuntary general lien.
    D) involuntary specific lien.
    C) involuntary general lien. Hint: Income tax liens, court judgments, and California Franchise Tax liens are general liens and affect all of the property of the owner in the county where recorded.
    (this multiple choice question has been scrambled)
  8. What is the legal process to prove that a will is valid?
    A) Escheat
    B) Probate
    C) Injunction
    D) Lis Pendens
    B) Probate. Hint: Probate is the legal process to prove a will is valid.
    (this multiple choice question has been scrambled)
  9. Which statement is correct regarding encumbrances?
    A) Financial encumbrances affect the title.
    B) Non-financial encumbrances affect the title.
    C) There are three categories of encumbrances.
    D) Liens are types of non-financial encumbrances.
    A) Financial encumbrances affect the title. Hint: Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances.
    (this multiple choice question has been scrambled)
  10. What is created when a garage, driveway, or fence extends beyond the land of its owner and covers the land of an adjoining property?
    A) A community property
    B) An encroachment
    C) Condition precedent
    D) An encumbrance
    B) An encroachment. Hint: Placing a permanent improvement, such as a fence, wall, driveway or roof, so that it extends over the lot line into adjacent property owned by another, is known as an encroachment.
    (this multiple choice question has been scrambled)
  11. Alienation of title to real property most nearly means to:
    A) convey or transfer title and possession.
    B) cloud the title.
    C) encumber the title.
    D) record a homestead.
    A) convey or transfer title and possession. Hint: The terms alienation, convey, and transfer are used interchangeably when transferring ownership of property from one person to another.[Acquisition & Conveyance of Real Estate]
    (this multiple choice question has been scrambled)
  12. Roger, who owns a ranch, gave Sam who owns no property, a non-revocable right to cross his ranch to fish in the stream. Sam has a(n):
    A) easement appurtenant.
    B) license.
    C) easement in gross.
    D) easement by prescription.
    C) easement in gross. Hint: An easement in gross is a personal easement that is not attached to the land, and cannot be revoked. Sam does not have a license because the right is irrevocable. It is not an easement appurtenant because Sam owns no land and it is not an easement by prescription because Roger gave the easement in gross to Sam.
    (this multiple choice question has been scrambled)
  13. A recorded abstract of judgment is usually classified as a(n) _________ lien.
    A) equitable
    B) superior
    C) involuntary
    D) inferior
    C) involuntary. Hint: A recorded abstract of judgment creates an involuntary general lien on all real property of the debtor that is located in the county where the judgment was recorded.
    (this multiple choice question has been scrambled)
  14. The gradual buildup of alluvium by natural causes on property bordering a river, lake, or ocean is called erosion.
    True
    False
    • ANSWER: FALSE
    • Hint: Accretion is the gradual and imperceptible addition of land to a parcel by the natural deposition and accumulation of alluvium (or alluvion) upon the bank of a stream or river. Erosion is the gradual wearing away of land by the natural processes of water, wind, or glacial ice. In this context, erosion is the opposite of accretion.
  15. Why is it important to determine the starting date for a mechanic's lien?
    A) The start date is important to the general contractor for scheduling purposes.
    B) Once the start date is determined, sub-contractors must complete their part of the project within 60 days, unless a Notice of Continuance is filed.
    C) Mechanic's liens do not have any special priority, but must be filed in order to be paid.
    D) Mechanic's liens have priority as of the date work began or materials were first furnished for the job.
    D) Mechanic's liens have priority as of the date work began or materials were first furnished for the job. Hint: Mechanic's liens have priority as of the date work began or materials were first furnished for the job. A mechanic's lien has priority over any other liens filed after the commencement of labor or delivery of materials with the exception of government liens (taxes and special assessments).
    (this multiple choice question has been scrambled)
  16. What type of easement is created when a parcel is completely land locked and has no access?
    A) Easement by necessity
    B) Easement by prescription
    C) Easement by implied grant
    D) Easement by express reservation
    A) Easement by necessity. Hint: An easement by necessity is created when a parcel is completely land locked and has no access. It is automatically terminated when another way to enter and leave the property becomes available.
    (this multiple choice question has been scrambled)
  17. A(n) _____ is a court order forcing a person to do or not to do an act, such as violating a private restriction
    A) injunction
    B) covenant
    C) junction
    D) condition
    A) injunction. Hint: An injunction is a court order forcing a person to do or not do an act, such as violating a private restriction.
    (this multiple choice question has been scrambled)
  18. A(n) __________ is a person who makes a will.
    A) probator.
    B) testator.
    C) intestator.
    D) administrator.
    B) testator. Hint: A testator is a person who makes a will.
    (this multiple choice question has been scrambled)
  19. California recognizes three types of wills. Which will is written entirely in the handwriting of the testator (maker) and is dated and signed by the testator?
    A) Holographic will
    B) Administrative will
    C) Witnessed will
    D) Statutory form will
    A) Holographic will. Hint: California recognizes three types of wills: witnessed wills, statutory form wills, and holographic wills. A holographic will is written entirely in the handwriting of the testator (maker) and is dated and signed by the testator.
    (this multiple choice question has been scrambled)
  20. When someone dies, without leaving a will, he or she is known to have died:
    A) in probate.
    B) testate.
    C) intestate.
    D) by eminent domain.
    C) intestate. Hint: If a person died intestate it means the person did not leave a will.
    (this multiple choice question has been scrambled)
  21. In order for a grant deed to be effective:
    A) the deed must be delivered to and accepted by the grantee.
    B) the grantor must record the deed.
    C) the grantee must record the deed.
    D) the grantor must acknowledge its existence.
    A) the deed must be delivered to and accepted by the grantee. Hint: A grant deed is not effective until it is delivered. It must be the intention of the grantor that the deed is delivered and title be transferred during his or her lifetime.
    (this multiple choice question has been scrambled)
  22. Real property can be transferred by __________ grant, which is the transfer of title by the government to a private individual.
    A) public
    B) government
    C) title
    D) private
    A) public. Hint: Real property can be transferred by public grant, which is the transfer of title by the government to a private individual.
    (this multiple choice question has been scrambled)
  23. What is the court proceeding that clears a cloud on the title of real property.
    A) Partition action
    B) Condemnation
    C) Quiet title action
    D) Escheat
    C) Quiet title action. Hint: Quiet title action is a court proceeding to clear a cloud on the title of real property.
    (this multiple choice question has been scrambled)
  24. A forced sale of property in order to satisfy a judgment for money or foreclosure of a mortgage is a(n):
    A) sheriff's sale.
    B) trustee's sale.
    C) estate sale.
    D) execution sale.
    D) execution sale. Hint: An execution sale is a forced sale of property under a writ of execution with the proceeds used to satisfy a money judgment.
    (this multiple choice question has been scrambled)
  25. A court action to divide a property held by co-owners is called:
    A) partition action.
    B) a lis pendens.
    C) an abstract of title.
    D) writ of execution.
    A) partition action. Hint: Partition action is a court proceeding to settle a dispute between co-owners (joint tenants or tenants in common) about dividing their interests in real property.
    (this multiple choice question has been scrambled)
  26. Effective delivery of a deed depends on:
    A) recording the deed.
    B) acknowledgement of the grantor's signature before a Notary Public.
    C) the intention of the grantor.
    D) knowledge of its existence by the grantee.
    C) the intention of the grantor. Hint: The grantor must have the intention, during his or her lifetime, that the deed is delivered and title is transferred.
    (this multiple choice question has been scrambled)
  27. Dana sold a property to Kim, who did not record the deed but did occupy the premises. Dana then sold the same property to Lee, who did not inspect the property but did record the deed. After the second sale, who would have legal title to the property?
    A) The title would revert to Dana as the remainderman.
    B) The title would remain with Kim.
    C) Lee would be able to sue Kim for his failure to record his deed.
    D) The title would be Lee's due to Kim's failure to record his deed.
    B) The title would remain with Kim. Hint: Possession is considered constructive notice, just like recording. If a deed is not recorded, but the buyer moves in, that sale has priority over any later recorded deeds.
    (this multiple choice question has been scrambled)
  28. Encumbrances fall into two categories:
    A) financial and non-financial encumbrances.
    B) real and personal encumbrances.
    C) conventional and non-conventional encumbrances.
    D) typical and atypical encumbrances.
    A) financial and non-financial encumbrances. Hint: Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances.
    (this multiple choice question has been scrambled)
  29. A person can obtain title to property by occupying it for a statutory time period without the permission of the owner and paying the property taxes through:
    A) adverse possession.
    B) succession.
    C) alienation.
    D) accession.
    A) adverse possession. Hint: Adverse possession is the ability to obtain title by occupying land for a statutory time period without the permission of the owner.
    (this multiple choice question has been scrambled)
  30. A holographic will is written entirely in the handwriting of the testator (maker) and is dated and signed by the testator.
    True
    False
    • ANSWER: TRUE
    • Hint: A holographic will is written entirely in the handwriting of the testator (maker) and is dated and signed by the testator.
  31. Which of the following is the best definition of encumbrance?
    A) The use of property as security for a debt.
    B) Any action regarding property, other than acquiring or transferring title.
    C) Anything that affects or limits the fee simple title to or value of property.
    D) The degree, quantity, and extent of interest a person has in real property.
    C) Anything that affects or limits the fee simple title to or value of property. Hint: This is the CalBRE's definition of an encumbrance.
    (this multiple choice question has been scrambled)
  32. Private restrictions on land can be created by:
    A) deed or written agreement.
    B) deed or zoning ordinance.
    C) deed only.
    D) deed, written agreement, or zoning ordinance
    A) deed or written agreement. Hint: Zoning ordinances are public, not private restrictions. Private restrictions can be created by CC&Rs, deeds, leases, and other written agreements. [Encumbrances]
    (this multiple choice question has been scrambled)
  33. There are two kinds of easements—appurtenant easements and easements in gross. An easement appurtenant has a servient and a dominant tenement.
    True
    False
    • ANSWER: TRUE
    • Hint: An easement appurtenant has a servient and a dominant tenement.
  34. There are two kinds of easements—appurtenant easements and easements in gross. An easement in gross is an easement that is not appurtenant to any one parcel.
    False
    True
    • ANSWER: TRUE
    • Hint: An easement in gross is an easement that is not appurtenant to any one parcel.
  35. The 2 steps that must be followed exactly to create a valid mechanic's lien are: (1) the preliminary notice and (2) no notice of completion.
    True
    False
    • ANSWER: FALSE
    • Hint: The 4 steps that must be followed exactly if the mechanic's lien is to be valid are: (1) the preliminary notice, (2) the notice of completion, (3) no notice of completion, and (4) foreclosure action.
  36. The land of an adjoining property is covered by a garage, driveway, or fence that extends beyond the land of its owner. This is known as:
    A) an encroachment.
    B) common amenities.
    C) an encumbrance.
    D) community property.
    A) an encroachment. Hint: An encroachment occurs when the permanent improvement is placed so that it extends over the lot line into adjacent property owned by another.
    (this multiple choice question has been scrambled)
  37. Recording a lis pendens:
    A) clouds the title but does not affect marketability.
    B) clouds the title and affects marketability.
    C) does not affect the title.
    D) affects the current owner but not a subsequent owner.
    B) clouds the title and affects marketability. Hint: Recording a lis pendens creates a cloud on title and warns parties that they could be involved in a lawsuit if the purchase the property, which could affect marketability.
    (this multiple choice question has been scrambled)
  38. As part of the mechanic's lien process, what notice must be given to the owner within 20 days of first furnishing labor or materials for a job by anyone eligible to file a mechanic's lien.
    A) Foreclosure notice
    B) Preliminary notice
    C) Notice of non-responsibility
    D) Notice of completion
    B) Preliminary notice. Hint: A preliminary notice is a written notice that must be given to the owner within 20 days of first furnishing labor or materials for a job by anyone eligible to file a mechanic's lien. This document gives owners notice that their property may have a lien placed on it if they do not pay for work completed.
    (this multiple choice question has been scrambled)
  39. Dying without leaving a will is described by the term, intestate.
    False
    True
    • ANSWER: TRUE
    • Hint: If a person died testate, it means the person left a valid will. If a person died intestate, it means the person did not leave a will.
  40. Inverse condemnation is a legal process in which property reverts to the state because the deceased owner left no will and has no legal heirs.
    True
    False
    • ANSWER: FALSE
    • Hint: Escheat is a legal process in which property reverts to the state because the deceased owner left no will and has no legal heirs.
  41. Succession is the legal transfer of a person's interests in real and personal property under the laws of descent and distribution
    True
    False
    • ANSWER: TRUE
    • Hint: Succession is the legal transfer of a person's interests in real and personal property under the laws of descent and distribution.
  42. What is the commonality of accretion, reliction, and avulsion?
    A) Accession
    B) Succession
    C) Alienation
    D) Adverse possession
    A) Accession. Hint: Accession is a process by which there is an addition or reduction to property by the efforts of natural forces. The land itself can be enlarged or reduced by natural forces—gradually through accretion and reliction or quickly through avulsion.
    (this multiple choice question has been scrambled)
  43. A lis pendens is a recorded notice that indicates pending litigation affecting title on a property.
    True
    False
    • ANSWER: TRUE
    • Hint: A lis pendens is a recorded notice that indicates pending litigation affecting title on a property.
  44. An instrument is a formal legal document such as a contract, deed or will.
    False
    True
    • ANSWER: TRUE
    • Hint: An instrument is a formal legal document such as a contract, deed or will.
  45. Sometimes property is transferred by the operation of law. The court proceeding to relieve a person's or company's financial insolvency is called foreclosure.
    True
    False
    • ANSWER: FALSE
    • Hint: The court proceeding to relieve a person's or company's financial insolvency is called bankruptcy.
  46. A gift of personal property by will is a devise.
    False
    True
    • ANSWER: FALSE
    • Hint: A gift of real property by will is a devise, while a gift of money or personal property by will is a bequest or legacy.
  47. A lien may be specific or general. A specific lien affects all property of the owner such as a judgment lien or federal or state income tax liens.
    False
    True
    • ANSWER: FALSE
    • Hint: A general lien affects all property of the owner such as a judgment lien or federal or state income tax liens.
  48. A lien is an obligation to pay a financial encumbrance that may be voluntary or involuntary. Voluntary liens include mechanic's liens, recorded abstracts of judgment, tax liens, and attachments.
    False
    True
    • ANSWER: FALSE
    • Hint: Involuntary liens include mechanic's liens, recorded abstracts of judgment, tax liens, and attachments.
  49. The personal, revocable, unassignable permission to use the property of another without a possessory interest in it is called a(n):
    A) encroachment.
    B) license.
    C) option.
    D) easement.
    B) license. Hint: The statement of the question is a good definition of a license.
    (this multiple choice question has been scrambled)
  50. The difference between an easement and a license to use property is:
    a) consideration is paid for a license.
    b) consideration is paid for an easement.
    c) an easement conveys ownership.
    d) a license may be canceled.
    • d) a license may be canceled.
    • Hint: A license is permission to use property. However, a license to use may be revoked at any time.
  51. What is the legal process in which property reverts to the state because the deceased owner left no will and has no legal heirs?
    A) Condemnation
    B) Eminent domain
    C) Inverse condemnation
    D) Escheat
    D) Escheat. Hint: Escheat is a legal process in which property reverts to the state because the deceased owner left no will and has no legal heirs.
    (this multiple choice question has been scrambled)
  52. Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances.
    False
    True
    • ANSWER: TRUE
    • Hint: Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances.
  53. The person receiving the property, or to whom it is being conveyed is called the grantee.
    True
    False
    • ANSWER: TRUE
    • Hint: The grantor is the person conveying the property, and the grantee is the person receiving the property or to whom it is being conveyed.
  54. A homestead is the status provided to a homeowner's principal residence that protects the home against judgments up to specified amounts.
    False
    True
    • ANSWER: TRUE
    • Hint: A homestead is the status provided to a homeowner's principal residence that protects the home against judgments up to specified amounts.
  55. Easements are created in various ways—commonly by express grant or reservation in a grant deed or by a written agreement between owners of adjoining land.
    False
    True
    • ANSWER: TRUE
    • Hint: Easements are created in various ways—commonly by express grant or reservation in a grant deed or by a written agreement between owners of adjoining land.
  56. Which statement is correct regarding a lis pendens?
    A) It is a recorded notice indicating the priority of a lender's deed of trust.
    B) It is a recorded notice indicating the title on a property is accurate.
    C) It prevents anyone from buying the property.
    D) It clouds the title of a property.
    D) It clouds the title of a property. Hint: A lis pendens is a recorded notice that indicates pending litigation affecting the title on a property. It clouds the title and gives notice to prospective lenders or buyers that title to the property is disputed. It also does not actually prevent anyone from buying the property, but it warns parties that they could be involved in a lawsuit if they do.
    (this multiple choice question has been scrambled)
  57. Which of the following actions is a quiet title action?
    A) Police action to quiet a noisy neighbor
    B) Court action to foreclose
    C) Court action in ejectment
    D) Court action to remove a cloud on title
    D) Court action to remove a cloud on title. Hint: A lawsuit to establish or settle title to real property is called a quiet title actionor an action to quiet title.
    (this multiple choice question has been scrambled)
  58. Regarding liens, which statement is incorrect?
    A) A lien uses real property as security for the payment of a debt.
    B) All encumbrances are liens.
    C) A lien may be specific or general.
    D) A lien may be voluntary or involuntary.
    B) All encumbrances are liens. Hint: All liens are encumbrances but not all encumbrances are liens.
    (this multiple choice question has been scrambled)
  59. All of the following are non-financial encumbrances except:
    A) a lien.
    B) an easement.
    C) an encroachment.
    D) a building restriction.
    A) a lien. Hint: Encumbrances fall into two categories: those that affect the title, known as financial encumbrances, and those that affect the use of the property, known as non-financial encumbrances. Common types of financial encumbrances are trust deeds and mortgages, mechanic's liens, tax liens, special assessments, attachments, and recorded abstracts of judgment.
    (this multiple choice question has been scrambled)
  60. Avulsion is the process by which the action of water causes a sudden, perceptible loss of or addition to land.
    True
    False
    • ANSWER: TRUE
    • Hint: Avulsion is the process by which the action of water causes a sudden, perceptible loss of or addition to land.
  61. In which way is an easement created?
    A) Destruction of the servient tenement
    B) Abandonment
    C) Express release
    D) Express grant
    D) Express grant. Hint: Easements are created in various ways—commonly by express grant or reservation in a grant deed or by a written agreement between owners of adjoining land. The other choices given are ways easements are terminated.
    (this multiple choice question has been scrambled)
  62. An owner of a parcel of real property gave his neighbor a deed conveying an easement for ingress and egress. The easement was not specifically located in the deed. Under the circumstances, the neighbor's right to use the easement is:
    A) enforceable because the location of the easement does not need to be specified.
    B) enforceable only if the easement is an easement in gross.
    C) unenforceable because the location of the easement must be specified.
    D) unenforceable because easements are never created by deed, only by written agreement.
    A) enforceable because the location of the easement does not need to be specified. Hint: Ingress and egress mean to enter and to exit. An easement may be created by deed or written agreement, which is express grant. An unlocated easement is valid.
    (this multiple choice question has been scrambled)
  63. An encroachment is the unauthorized placement of permanent improvements that intrude on adjacent property owned by another.
    True
    False
    • ANSWER: TRUE
    • Hint: An encroachment is the unauthorized placement of permanent improvements that intrude on adjacent property owned by another.

What would you like to do?

Home > Flashcards > Print Preview