California Real Estate Principles Chapters 1-5 Practice Exam

California Real Estate Principles Chapters 1-5 Practice Exam Questions Flashcards Which document does not need to be recorded to be validA deed A deeds a life estate to B; upon B's death, title is to pass to

• This is an example of a

remainder in estate Arnold and Sally are tenants in an apartment. They add temporary shelves in the kitchen. When they move, the shelves will probably be considered Personal property Which of the following is considered LAND and, therefore, is real estate?Reasonable airspace above the land Ownership in severalty refers to holding title as an individual A thirty five year old head of household files a legally declared homestead against a $480,000 home that has a $370,000 loan against the property. A judgment creditor attempts to force the sale of the home. If the home is sold, the judgment creditor is allowed how much from the sale?

$35,000

Ms. Jones was killed in an automobile accident. When the courts were called upon to distribute her property, they found she had died intestate. This means that she died Without a will Which of the following is not considered to be the bundle of rights? The right to Pay taxes An orange tree in a suburban backyard is real property. An orange on the ground that has fallen off the tree is personal property Which of the following is considered appurtenant to the land and upon sale or other transfer stays with the land and is not taken by the former owner?Stock in a mutual water company and an easement Once properly recorded, an abstract of judgment is good for ten years Mortgages and deeds of trust arePersonal property How does an easement by prescription differ from adverse possesion?An easement by prescription is an attempt to obtain the right to travel over the land of another, while adverse possession is an attempt to take title to the land of another.Both require hostile, open, and notorious use for at least five years under a claim of right or color of title, But adverse possession also requires the payment of the property taxes for at least five years, while easement by prescription does not.Which statement regarding deeds is false? Incompetant persons cannot convey title under an assumed name Which of the following is considered to be a less than- freehold estate?Leasehold estate

Unless otherwise noted, mineral rightsTransfers with the land

• A notice of completion should be filed by you within

_______ days after the completion of the home.ten Private deed restrictions are known as CC&R's. The first C stands for Covenant Which of the following statements is false? The right of survivorship is present in a tenancy in common C)After filing your notice of completion, the general contractor has ______ days to file a lien, while the subcontractors have ______ days.sixtythirty At a probate sale for a vacant lot, the initial accepted offer to purchase is $20,000. If you wish to place the next additional bid, what is the minimum you must bid?The basic rule is that the first additional bid over the initial accepted bid must be ten percent of the first $10,000 and five percent of any excess. Therefore $200,000 was the initial bid minus $10,000 times ten percent is equal to $1,000 bringing it to $190,000 times five percent being equal to $9,500 equals to $10,500 $200,000 initial bid plus $10,500 equals $210,500 required for the first additional bid. Any bids after this may be in any amounts at the pleasure of the probate judge.A fourty-five-year-old head of household has correctly filed a formal declaration of homestead. The condominium is worth $300,000 and has a first loan of $125,000 plus a $35,000 homeowner equity second loan. A judgment creditor petitions the court to force the sale of the condominium for the payment of a $25,000 debt. Assuming the court orders the sale of the condominium, how will the proceeds be distributed?$300,000 condo valueminus $125,000 to holder of first loanminus $35,000 to holder of home equity second loanminus $100,000 to owner of home per head of household exemption$40,000 remainder to be applied toward the judgment creditors of $25,000 debt Real Estate Salesperson Ames from Vista Realty is the agent for the sale of the Alvarez home at 123 Main Street, Somewhere, California. Salesperson Jones also works for Vista Realty and brings in an offer on the Alvarez home from Buyer Patel. Explain the agency relationship between Alvarez, Vista Realty, and Patel.Vista Realty is probably a dual agent for Alvarez and Patel because both salespeople work for the same real estate office. Or maybe Patel is completely unrepresented. If Salesperson Ames and Salesperson Jones worked for different real estate companies, Vista Realty could represent just the seller and the other real estate company could represent just the buyer Nguyen and Harris purchased twenty acres as joint tenants. Harris then sold one half of her undivided interest to Battino. Shortly thereafter, Harris dies. What is the legal relationship between Nguyen and Battino, and what percentage interest is owned by each?Nguyen and Battino are tenants in common as they do not have the properties of time, title, or interest. The

percentage of interest in the properties are as folllows:

Nguyen now has his original fifty percent plus Harris's twenty-five percent for a grand total of seventy-five percent interest in the twenty acres. When Harris sold one half to Battino, Harris was still a joint tenant with Nguyen on the remaining one half, and the right of survivorship applies.This illustrates how confusing things can get when joint tenants sell off portions of their interest in real estate.Bill and Sara Belinski, husband and wife , purchase a hom in California as community property. Later Sara's parents

die and left her a five-unit apartment in Los Angeles. The apartments are professionally managed, and all rental proceeds are placed in a separate account under Sara's name alone. Sara uses the rental proceeds to pay tuition for the children, who are still in college. The Belenski's are now in the process of a divorce. What are the community property issues?The community property issues for the court to look at are

as follows: The family home is obviously community

property, but the five-unit apartment is going to be a legal issue. When Sara's parents left her the apartments, the inheritance was her separate property. The placing of the rental money in a seperate account in her name alone showed intent to keep it separate property. But Sara is using the rental income to pay for the children's college tuition may be perceived as using the funds for a community property responsibility and a form of commingiling. Sara's attorney will try to prove the money was a mere gift and not a pledging of the rental proceeds for a community purpose. Bills attorney may take the opposite argument which could creat a nasty situation. The moral of the story, get a competent attorney.If a mechanics lien is filed, it automatically terminates if court action is not instituted within ______ days.ninety The words CHATTEL and CHOSE stand forPersonal property S 1/2 of SW 1/4 of the SW 1/4 of the NW 1/4, and the SW 1/4 of the NW 1/4, and the SW 1/4 of Section 5. How many acres? Using the grid below, shade in the parcel.160 plus 5 equals 165 acres Which of the following is an involuntary lien? Judgment Which group of explorers and colonizers set up presidios and pueblos in the early days of California?Spanish To be valid, all owners must have equal shares, except fortenants in common The state urgently needs a piece of property to complete a project for public use. The owner did not wish to sell. Which method could be used to acquire the property?Eminent Domain Chan owns real property and deeds a life estate to Washington. Upon Washington's death, title is passed to Adams. While holding a life estate Washington leases the property for five years to Santos. Two years later, Adam dies; one year later, Chan and Washington both die. Upon Washington's death, who is entitled to possession of the property?Upon Washington's death, the lease with Santos is canceled since a life tenant cannot lease beyond the life of the designated person in a life estate. Possession will go to the heirs of Adams.You with to have a contractor build a home on your lot. You insist that the contractor be licensed, bonded, and carry adequate workers' compensation insurance and other liability insurance. You are also concerned about the mechanics' lien rules Fill in the correct days for each situation. A) Preliminary notice should be served within _______ days from the first furnishing of labor or materials on your home site.twenty A deeds to B, who does not record the deed or take physical possession of the property. A then deeds to C, who had no notice of the prior deed to B. C records the deed. In a dispute over title between B and C, which rule