Quiz
Midterm 1
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Questions in this quiz (100)
1Which of the following sources would be the least satisfactory for obtaining a legal description of a parcel of real property?
- ADeeds
- BPreliminary title reports
- CEscrow instructions
- DReal property tax bills
- EA real property tax bill usually identifies the property by the tax assessor's parcel number. While the bill may also include a legal description of the property, that's often an abbreviated description instead of the complete legal description.
2The land description method that makes reference to sections, townships, and ranges is the
- Agovernment survey method
- Brecorded map method
- Cmetes and bounds method
- DTorrens system
3A ranch is 36 miles square. What is the number of townships contained in the ranch?
- A1
- B6
- C36
- D1296
4Which of the following is not considered to be appurtenant to land?
- AWatercourses
- BFences
- CDwellings
- DTrade fixtures
5When a title company issues an ALTA policy, it will extend the risk beyond that which is covered by a standard policy, to include all of the following, except:
- Athe rights of parties in possession
- Bunrecorded easements
- Cthe effect of zoning regulations
- Dunrecorded mechanic's liens
6The right to use and enjoy another person's property that falls short of an estate is a/an:
- Aeasement
- Bleasehold
- Cdeed
- Ddevise
7A seller accepted a proper offer in writing to purchase his property. He then refused to complete the transaction. If the buyer were to bring suit for failure to perform the contract, under the statute of limitations he would need to do so within:
- A1 year
- B2 years
- C3 years
- D4 years
8A city passes a bond issue to improve streets in a particular neighborhood. The properties in that area will be burdened:
- Aaccording to the value of the property
- Baccording to the size of the lot
- Cin proportion to the benefits that the land will receive
- Didentically
9Al willed his property to his three children (Barry, Chris, and Dara) as joint tenants. Barry then died, leaving behind a will stating that his share of the property would pass to his daughter Mary. Dara then sold her portion of the property to her friend Vera. At this point, how is the property owned?
- AMary and Chris own it as joint tenants
- BVera and Chris own it as tenants in common
- CMary, Vera, and Chris own it as tenants in common
- DMary and Chris own their shares as joint tenants, while Vera owns her share as a tenant in common
10A person was judicially declared incompetent and then was willed a parcel of real property by his brother. Can he take title to this property?
- AHe can accept title only if it is placed with a trustee
- BHe can accept title to real property that passes to him by will
- CHe cannot accept title because he is incompetent
- DHe can accept title to personal property but not real property
11Which of the following statements concerning estates is correct?
- AA life estate is a leasehold estate
- BAn estate may be held with another estate in the same property
- CTitle to an estate must pass using a grant deed
- DAn estate always gives the right of immediate possession
12How many acres are in a property that is described as the "S 1/2 of the NW 1/4 of the NE 1/4 of the NE 1/4 of Section 23"?
- A5
- B10
- C20
- D40
13A buyer consented to purchase a property, but his consent was induced by fraudulent statements made by the seller's broker. The buyer's purchase agreement would be:
A. valid- Avalid
- Bvoidable
- Cvoid
- Dillegal
14A reversionary interest would be held by a:
- Astate government under the right of eminent domain
- Bmortgagee in the event of default by the borrower
- Clessor under the terms of a lease
- Dperson who gained title through adverse possession
15A minor who owns property asks a broker to assist in the sale of the property. The broker may not accept a listing from the minor because:
- Aa minor is incapable of appointing an agent
- Bthe minor may be able to disaffirm a real estate contract later
- Ca broker is incapable of a fiduciary relationship with a minor
- Dit is illegal for a minor to enter into any sort of contract
16Which of the following is not a consideration in determining whether or not an item is a fixture?
- ARelationship between parties
- BIntention of annexor
- CManner of annexation
- DTime of annexation
17If the owner of a large parcel of property plans to subdivide it, what is the minimum number of parcels that would make the project subject to the Subdivided Lands Law?
- A2
- B3
- C4
- D5
18A lessee has all of the following, except:
- Aa less-than-freehold estate
- Ba leasehold estate
- Ca chattel real
- Da freehold estate
19What document would be used to convey possessory rights without conveying ownership rights?
- ALicense
- BMortgage
- CPatent
- DSublease
20A broker misrepresented his principal's property when showing it to a buyer. The actions of the broker may subject his principal to:
- Arescission of the sale by the buyer
- Bcourt action for damages resulting from fraud
- Ccivil liability for the broker's misrepresentations
- DAll of the above
21A salesperson working for a listing broker:
- Aowes fiduciary duties to the seller
- Bowes fiduciary duties to the buyer
- Cis limited by the terms of the power of attorney
- Dis not limited by the broker's scope of authority
22A neighborhood that was originally zoned to allow multiple-unit dwellings was rezoned to allow only single-family dwellings. What effect would this have on an already existing apartment building in the neighborhood?
- AIt would be in violation of the zoning laws
- BIt would have to be demolished immediately
- CIt would need to be issued a variance
- DIt could probably continue as a nonconforming use
23A corporation may not hold title to a property as a joint tenant because:
- Ano corporation may hold title to real property
- Bit is prohibited by Securities and Exchange Commission regulations
- Conly a husband and wife may hold property in joint tenancy
- Da corporation has a potentially perpetual existence
24Which of the following persons would be responsible to her employer for results only?
- AEmployee
- BIndependent contractor
- CPrincipal
- DStockholder
25Adam leased a property from Casey for a five-year term. Casey died, at which point Adam found out that Casey had only a life estate in the property, with Casey's life as the measuring life. The lease is:
- Avalid for the remaining five years
- Bvalid until invalidated by the executor of Casey's estate
- Cvalid only during the life of Casey
- Dinvalid since it is fraudulent and illegal to lease a life estate
26Cities and counties regulate land use by limiting building size, lot size, and setbacks through:
- Athe Subdivided Lands Law
- Bzoning restrictions
- Ccovenants, conditions, and restrictions
- Dcommunity redevelopment agreements
27Chen gave his son a power of attorney to sell his house. Which of the following statements is false?
- AThe power of attorney must describe the property that will be conveyed
- BChen's son may legally deed the property to himself
- CThe attorney in fact may sign the name of his principal
- DThe attorney in fact may encumber the property with a deed of trust where another person is the beneficiary
28Which of the following is a type of lien?
- AAn easement
- BAn attachment
- CA restriction
- DAll of the above
29A builder submitted plans that included several minor deviations from the building standards required by local building codes. If the local building department decided this inconsistency did not constitute a health or safety hazard and permitted construction to continue, it would be known as a/an:
- Aexception
- Bvariance
- Cinfraction
- Dpermit
30Ownership rights to a property are determined through which of the following legal actions?
- AQuiet title
- BInterdiction
- CDeclaratory relief
- DInjunction
31Of the following, which is a means by which a person might gain title to real property?
- ARiparian rights
- BAccession
- CAppurtenance
- DMortgage
32Delia died leaving no known heirs. In her will, she left her real property to her friend Ed. However, at the time of Delia's death, Flora was in possession of the property under the terms of a one-year lease. The probate court then found that Delia's will had not been properly witnessed and was invalid. What happens to Delia's real property?
- AIt passes to Ed, since that was clearly Delia's intent
- BIt passes to Flora, since she is in possession
- CIt is immediately sold at a court auction
- DIt passes according to statutory provisions, overseen by a court of proper jurisdiction
33Proper acknowledgment of a deed may be taken by a notary public who is:
- Athe grantee of the deed
- Ba mortgagee in a mortgage being acknowledged
- Cthe grantor of the deed
- Dan employee of the corporation that is the grantor, if he has no personal interest in the property
34When a document concerning title to real property is recorded, it gives all of the following except:
- Aconstructive notice of the contents of the document
- Bconstructive notice of the rights and interests conveyed in the document
- Cactual notice of the conveyance of title
- DNone of the above
35Tim has been judicially declared incompetent. His best friend then deeds him a parcel of real property. The deed is:
- Ainvalid, as an incompetent grantee cannot take title to real property
- Binvalid, since the title must pass to Tim's guardian or conservator
- Cvalid, since a grantee does not have to be legally competent to receive title
- Dvalid only if placed in trust until such time that Tim is declared competent
36Which would a court disregard in deciding whether an item of personal property has become real property?
- AAgreement between the parties
- BPermanence of annexation
- CCost of the item
- DRelationship of the parties
37Which of the following is not a necessary element in the formation of a contract?
- AOffer
- BAcceptance
- CPerformance
- DConsideration
38A lis pendens action is effective:
- Aduring the time that an action is pending
- Buntil the action is dismissed
- Cuntil a final judgment is rendered
- DAll of the above
39Most real estate syndicates in California are organized as:
- Acorporations
- Bgeneral partnerships
- Climited partnerships
- Dreal estate investment trusts
40A tenant wants to sublease or assign a leased property. If the lease is silent on this issue, then the:
- Aproperty cannot be sublet or assigned
- Bproperty cannot be sublet or assigned without the landlord's permission
- Ctenant may go ahead and sublease or assign the property
- Dtenant may sublease the property but may not assign it
41Which of the following statements regarding options is correct?
- AIf a lease containing an option to purchase is assigned, the option right will pass along with the lease
- BAn option creates a fiduciary relationship between optionor and optionee much like the relationship between agent and principal
- CAn optionor may give another option to a second optionee before the first option period expires
- DAn option is the same thing as a right of first refusal
42A broker took a listing that did not expressly authorize him to accept a deposit. When the broker found a prospective buyer, the buyer gave him a personal check as the deposit on the property. With regard to the deposit, the broker would be:
- Aagent to the buyer
- Bagent to the seller
- Ca dual agent
- Dagent to the escrow company
43Jaime sold his landlocked property, which had an easement appurtenant for access to the road. The deed he gave the buyer gave an adequate legal description of the property but did not mention the easement. The buyer:
- Ahas a cloud on the title
- Btakes title without the easement but receives a new easement by necessity
- Closes the easement to the servient tenement
- Dhas the same right to the easement that Jaime did
44Which of the following easements runs with the land and is binding on all subsequent owners?
- AEasement appurtenant
- BEasement in gross
- CPrescriptive easement
- DEasement by implication
45Which of the following would be important in the process of filing a mechanic's lien?
- ANotice of nonresponsibility
- BNotice of completion
- CNotice of cessation of labor
- DAll of the above
46A broker takes a listing. The seller accepts an offer from a buyer who's being represented by a salesperson who works for the listing broker. The broker is now classified as a:
- Abuyer's agent
- Bgeneral agent
- Cdual agent
- Dsubagent
47A prospective buyer submitted an offer to Broker Randolph that met the asking price. As Randolph was on his way out of the office to present the offer to the seller, one of Randolph's salespersons brought in another offer on the same property that was $5,000 less. Randolph should:
- Ainform the salesperson that the property already has sold on the seller's terms and conditions
- Bpresent the offers in the order they were received
- Cpresent the two offers at the same time
- Dpresent the second offer only if the first offer is turned down
48When industrial space is rented, the landlord customarily promises that:
- Athe property is up to current code at the time of the lease
- Bthe property was constructed according to code when it was built
- Cthe property shall be in habitable condition
- Dthe property shall be never be subject to condemnation
49The Alquist-Priolo Special Studies Zone Act requires a subdivider to disclose to potential purchasers:
- Aunderground storage tanks
- Blocation in a flood plain
- Cwater quality reports
- Dearthquake fault lines
50Basic responsibility for zoning decisions lies with the:
- Aplanning commission
- Bcity engineer's office
- Ccounty assessor
- Dboard of equalization
51A vacant lot sold for $50,000, with the buyer assuming an existing $30,000 loan as part of this selling price. The documentary transfer tax rate is 55 cents per $500. How much would the documentary transfer tax on this transaction be?
- A$88
- B$22
- C$33
- D$55
52Which of the following is not a way through which an individual can acquire an interest in real property?
- APatent
- BEscheat
- CPrescription
- DAccession
53A grant deed is executed if it has been:
- Asigned by the grantor
- Backnowledged
- Cdelivered to the grantee
- Drecorded
54Which of the following statements regarding the power of eminent domain is true?
- AThe proposed use must be practical and just compensation must be paid
- BThe proposed use must be a public use and just compensation must be paid
- CThe proposed use must be practical and a public use
- DThe government must offer the property owner a property of comparable value and utility
55The government has the authority to enact zoning ordinances because these ordinances:
- Amaintain the quality of building construction
- Bpromote the public health, safety, morals, and welfare
- Cprevent oversupply of certain types of uses
- Dencourage conformity within particular zones
56Who is generally responsible for the installation of the curbs, streets, and public utilities in a new subdivision?
- AThe developer
- BCity or county planning office
- CBonding companies serving the developer
- DImprovement districts formed by lot purchasers
57A mechanic's lien against real property may be filed by:
- Acontractors and subcontractors
- Blandscape architects
- Csuppliers of materials
- DAll of the above
58The police power is the power of the state to:
- Aregulate federal lands for the public good
- Blevy taxes
- Cenact and enforce laws to protect the safety, health, morals, and welfare of the public
- Dtake private land
59The Real Estate Commissioner has primary authority regarding new subdivisions that includes:
- Adrainage and sewage
- Bstreet layout
- Cfinancial arrangements necessary to complete improvements
- DAll of the above
60A possessory ownership right or interest in real property is a/an:
- Alien
- Bencumbrance
- Cfixture
- Destate
61Which of the following instances would not terminate an offer to purchase real property?
- ADeath or insanity of the offeror
- BThe offeror revokes the offer after the offeree has accepted the offer
- CThe offeree does not respond to the offer before a deadline for acceptance
- DThe offeree makes a counteroffer
62Which of the following would not be considered real property?
- ARights to unextracted oil
- BAn easement appurtenant
- CAn uncultivated stand of trees
- DA leasehold estate in a rental house
63When a counteroffer is made:
- Athe offeree becomes the offeror
- Bthe offeror is accepting the terms without modification
- Cthe original offer is amended
- Dthe offeree can later go back and accept the original offer
64Alienation is most nearly the opposite of:
- Aabrogation
- Bacquisition
- Cacceleration
- Damortization
65A contract that is executory is a:
- Abinding written contract
- Bcontract that contains a promise for a promise
- Ccontract that has not yet been fully performed
- Dcontract that has been fully performed
66In some bilateral contracts, the parties exchange a promise for a promise. Each promise would be:
- Apartial performance
- Ban acceptance
- Cconsideration for the contract
- Da novation
67How is the maximum commission rate a broker may charge established?
- AIt is set by the local multiple listing service
- BIt is mandated by the state Real Estate Law
- CIt must be within limits prescribed by real estate professional associations' ethical codes
- DIt is set by agreement between principal and broker
68On Thursday, Angie decided to accept Harry's counteroffer for the purchase of his house, signed the purchase agreement, and placed it in the mail. On Friday, Harry decided that he had asked too low a price for the house, and faxed Angie stating that the offer was withdrawn. On Saturday, Harry received her acceptance in the mail. Under the mailbox rule, which of the following is true?
- AHarry withdrew his offer, so no contract is formed
- BHarry did not withdraw his counteroffer in time, so a contract is formed
- CHarry may not make a counteroffer
- DHarry's withdrawal was ineffective since it was not in writing
69Before the seller's acceptance of an offer has been communicated to a buyer, the buyer may withdraw the offer:
- Aif the offer was not stated to be irrevocable
- Bif the offer was not scheduled to remain open until a particular date
- Cif the offer was not accompanied by a good faith deposit
- Dfor any reason
70An attachment lien is good for:
- A1 year
- B2 years
- C3 years
- D4 years
71In which of the following circumstances would a deed always be void?
- AA forged deed in the hands of a bona fide purchaser
- BA deed signed by an incarcerated convict
- CA deed signed by an unmarried person under age 18
- DA deed that is not supported by consideration
72A broker sells a used mobile home that is subject to registration requirements. The Department of Housing and Community Development must be notified within:
- A3 days
- B7 days
- C10 days
- D20 days
73Which of the following organizations is considered to be an artificial person?
- AJoint venture
- BCorporation
- CPartnership
- DAll of the above
74Title will be delivered on a different day than the day the buyer plans to take possession on. The parties should use a/an:
- Ainterim occupancy agreement
- Bquitclaim deed
- Cassignment of rents
- Doption agreement
75A broker is working under an open listing. When prospective buyers are shown the property, the broker should:
- Awithhold disclosure of latent defects
- Bnotify the multiple listing service
- Crequire each prospect to sign an agreement to pay a commission if they purchase the property
- Dnotify the seller of the prospects' names
76A seller accepted an offer on a property and communicated her acceptance to the buyer. However, before the deal went to escrow, the seller received a second, all-cash offer. The seller rescinded the first acceptance in order to accept the second offer. A court would find that:
- Athe broker is not entitled to compensation since the transaction did not go to escrow
- Bthe buyer is entitled to return of the good faith deposit but has no further claim against the seller
- Cthe acceptance of the second offer was void because a contract for the sale of the property already existed
- Dthe broker was entitled to a commission as soon as the first offer was accepted
77If a broker is authorized through an agency agreement to negotiate a sale of property, but the seller strikes the portion of the listing form that provides for the authority to accept a buyer's deposit, then the broker:
- Ais therefore implicitly authorized to accept a buyer's deposit
- Bmay accept a buyer's deposit but becomes the buyer's agent in regard to the deposit
- Cwill violate the Real Estate Law if he accepts a buyer's deposit without the express authority to do so
- Dmust be given express permission by the seller before being able to accept the buyer's deposit
78Which of the following is a requirement for a tenancy in common relationship to exist?
- AThe tenants in common must have the right of survivorship
- BEach tenant in common must have an equal interest
- CThere must be unity of possession
- DEach tenant must take title to the property at the same time
79A land contract was recorded by the seller. The buyer defaulted on the payments. If a quitclaim deed were to be used in order to clear the cloud from the title, it would be executed by:
- Athe buyer
- Bthe seller
- Cboth the buyer and the seller
- Dthe lender
80The payment of a commission to a real estate broker based only on an oral listing is:
- Aillegal
- Bcontrary to public policy
- Cpermissible if the seller elects to do so
- Dprohibited by the Commissioner's regulations
81A seller's agent owes which of the following duties to the buyer?
- AThe duty of confidentiality
- BOnly the duty to disclose latent defects
- CThe duty of honesty and good faith
- DAll of the same fiduciary duties
82With a purchase agreement, the date of formation of the contract is:
- Awhen acceptance is communicated to the offeror
- Bthe date the contract is prepared
- Cthe date the buyer signs
- Dthe date the offer is made
83A buyer and seller of a house initialed a liquidated damages provision in a standard residential purchase agreement. The buyer defaulted. The damages money will usually be:
- Adivided equally between seller and listing agent
- Blimited to 5% of purchase price
- Cretained entirely by the seller
- Dreturned to the buyer, less any seller's expenses
84Which of the following methods would create an easement that would be easiest to terminate for nonuse?
- AExpress reservation
- BImplication
- CPrescription
- DQuitclaim deed
85Broker Stevens listed a property. Broker Yamasaki located a buyer for the property. Under a unilateral offer of subagency, Yamasaki would be a/an:
- Abuyer's agent
- Binadvertent dual agent
- Cagent of Broker Stevens
- Ddual agent
86What is the most common way for a corporation to generate additional funds?
- ASell common stock
- BAuthorize preferred stock
- COrder a bond issue
- DTake on additional limited partners
87How do riparian rights differ from littoral rights?
- ARiparian rights are associated with water; littoral rights are associated with land
- BRiparian rights are only use rights; littoral rights are possessory rights
- CRiparian rights relate to streams and rivers; littoral rights relate to lakes and oceans
- DRiparian rights are appurtenant to the land; littoral rights are not
88Who would be in the weakest position to protect himself against a loss of property to another claimant?
- AA holder of a recorded deed who rents the property out
- BA holder of an unrecorded deed who occupies the property
- CA holder of a certificate of title issued by a title company
- DA holder of an unrecorded quitclaim deed who does not occupy the property
89Leo purchased a mobile home, which is now located in a mobile home park and properly registered. He wants to hire a broker to list the home. Which of the following is true?
- AA broker could not list it since the land is not being sold with it
- BA broker could not sell it without a mobile home sales permit from the DMV
- CA broker could arrange a sale of the home and a sublease of the land
- DA broker could list the mobile home only if it has been registered for more than one year
90An appurtenant easement is:
- Aa possessory interest in another person's land
- Ba right held by condominium owners to use property owned in common
- Can interest in land capable of being transferred by the owner of the easement
- Dincapable of being sold because it is intangible
91On March 1, Craig paid $100 for a 60-day option to purchase a property. The option stated, "Upon exercise of option, optionee is to purchase within 30 days." On March 15, he sold and assigned the option to Sharon for $10,000. On April 20, Sharon informed the seller that she intended to purchase the property on May 15. What is the status of the option?
- AValid, since an option may be assigned, but Sharon will need to purchase the property before April 30
- BValid, since Sharon will purchase within 30 days after the exercise of the option
- CInvalid, since an option may not be assigned
- DInvalid, since the purchase date will be after the option has expired
92A buyer's agent has a fiduciary duty to:
- Aadvise the buyer on how best to take title
- Buse utmost care when dealing with the buyer
- Cinstruct the buyer which title insurance company to use
- Ddisclose to the seller the maximum the buyer will pay for the property
93A farm was sold where a field of corn was growing; there was no discussion between buyer and seller as to who would own the corn. If there was a dispute as to who could harvest the corn, a court would find:
- Athe corn is real property, so the buyer is entitled to it
- Bthe seller receives the corn because it has been constructively severed from the land
- Cthe seller may return to harvest the corn under the doctrine of emblements
- Dthe seller may harvest the corn because his intention is the controlling factor
94The Springers hired a contractor to build a swimming pool for their house. If the Springers did not pay for the construction and the contractor filed a lien, the resulting encumbrance would be a:
- Ageneral lien
- Bspecific lien
- Cvoluntary lien
- DNone of the above
95Barry hired Broker Teri to find a warehouse to lease. Carrie hired Teri to find a lessee for her warehouse. Each party agreed to pay Teri a commission. Teri negotiated a lease between the two parties. Barry knew Teri also represented Carrie, but Carrie didn't know that Teri represented Barry. Which of the following is correct?
- ABarry and Carrie are both liable for commissions
- BBarry is liable for a commission
- CCarrie is liable for a commission
- DNeither party may be liable for a commission
96How can a homestead recorded under California law be invalidated?
- ADestruction of the improvements on the property by fire
- BA declaration of homestead is filed on another property
- CMoving to another property
- DMoving to another state
97Broker Arbogast had an open listing on a residential property. He verbally agreed to pay one-half of any commission to Broker Bates if Bates found a buyer. Bates succeeded in arranging a sale of the property, but Arbogast refused to pay half of his commission to Bates. How would a court decide this case?
- ABates would not be able to collect because of the open listing
- BBates would not be able to collect because verbal commission split agreements are unenforceable
- CThe matter would be referred to the Real Estate Commissioner for arbitration
- DBates would be able to file a civil action and collect his commission
98An agent fails to do a visual inspection of a house as required by law. How many years after occupying the property can the buyer bring an action against the agent for failure to inspect the property?
- A1 year
- B2 years
- C5 years
- D7 years
99If an owner obtains riparian rights to a property:
- Ahe may take as much water from the stream as he likes
- Bhe may use the water only with a government permit
- Che has absolute ownership of the stream
- Dthe riparian rights apply only to the property that is adjacent to the stream and that is located within the watershed
100In which of the following ways are joint tenancy and community property similar?
- ABoth are limited to husband and wife
- BBoth require that the property be owned by no more than two parties
- CBoth involve equal ownership interests
- DBoth require the signature of all parties to sell any interest in the property
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- Mid Term FIN 365 Quiz on Midterm 1, created by nvelazco on 04/03/2016.
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