Which of the following sources would be the least satisfactory for obtaining a legal description of a parcel of real property?
Preliminary title reports
Real property tax bills
A 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.
The land description method that makes reference to sections, townships, and ranges is the
government survey method
recorded map method
metes and bounds method
A ranch is 36 miles square. What is the number of townships contained in the ranch?
Which of the following is not considered to be appurtenant to land?
When 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:
the rights of parties in possession
the effect of zoning regulations
unrecorded mechanic's liens
The right to use and enjoy another person's property that falls short of an estate is a/an:
A 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:
A city passes a bond issue to improve streets in a particular neighborhood. The properties in that area will be burdened:
according to the value of the property
according to the size of the lot
in proportion to the benefits that the land will receive
Al 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?
Mary and Chris own it as joint tenants
Vera and Chris own it as tenants in common
Mary, Vera, and Chris own it as tenants in common
Mary and Chris own their shares as joint tenants, while Vera owns her share as a tenant in common
A person was judicially declared incompetent and then was willed a parcel of real property by his brother. Can he take title to this property?
He can accept title only if it is placed with a trustee
He can accept title to real property that passes to him by will
He cannot accept title because he is incompetent
He can accept title to personal property but not real property
Which of the following statements concerning estates is correct?
A life estate is a leasehold estate
An estate may be held with another estate in the same property
Title to an estate must pass using a grant deed
An estate always gives the right of immediate possession
How 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"?
A 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 reversionary interest would be held by a:
state government under the right of eminent domain
mortgagee in the event of default by the borrower
lessor under the terms of a lease
person who gained title through adverse possession
A 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:
a minor is incapable of appointing an agent
the minor may be able to disaffirm a real estate contract later
a broker is incapable of a fiduciary relationship with a minor
it is illegal for a minor to enter into any sort of contract
Which of the following is not a consideration in determining whether or not an item is a fixture?
Relationship between parties
Intention of annexor
Manner of annexation
Time of annexation
If 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?
A lessee has all of the following, except:
a less-than-freehold estate
a leasehold estate
a chattel real
a freehold estate
What document would be used to convey possessory rights without conveying ownership rights?
A broker misrepresented his principal's property when showing it to a buyer. The actions of the broker may subject his principal to:
rescission of the sale by the buyer
court action for damages resulting from fraud
civil liability for the broker's misrepresentations
All of the above
A salesperson working for a listing broker:
owes fiduciary duties to the seller
owes fiduciary duties to the buyer
is limited by the terms of the power of attorney
is not limited by the broker's scope of authority
A 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?
It would be in violation of the zoning laws
It would have to be demolished immediately
It would need to be issued a variance
It could probably continue as a nonconforming use
A corporation may not hold title to a property as a joint tenant because:
no corporation may hold title to real property
it is prohibited by Securities and Exchange Commission regulations
only a husband and wife may hold property in joint tenancy
a corporation has a potentially perpetual existence
Which of the following persons would be responsible to her employer for results only?
Adam 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:
valid for the remaining five years
valid until invalidated by the executor of Casey's estate
valid only during the life of Casey
invalid since it is fraudulent and illegal to lease a life estate
Cities and counties regulate land use by limiting building size, lot size, and setbacks through:
the Subdivided Lands Law
covenants, conditions, and restrictions
community redevelopment agreements
Chen gave his son a power of attorney to sell his house. Which of the following statements is false?
The power of attorney must describe the property that will be conveyed
Chen's son may legally deed the property to himself
The attorney in fact may sign the name of his principal
The attorney in fact may encumber the property with a deed of trust where another person is the beneficiary
Which of the following is a type of lien?
All of the above
A 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:
Ownership rights to a property are determined through which of the following legal actions?
Of the following, which is a means by which a person might gain title to real property?
Delia 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?
It passes to Ed, since that was clearly Delia's intent
It passes to Flora, since she is in possession
It is immediately sold at a court auction
It passes according to statutory provisions, overseen by a court of proper jurisdiction
Proper acknowledgment of a deed may be taken by a notary public who is:
the grantee of the deed
a mortgagee in a mortgage being acknowledged
the grantor of the deed
an employee of the corporation that is the grantor, if he has no personal interest in the property
When a document concerning title to real property is recorded, it gives all of the following except:
constructive notice of the contents of the document
constructive notice of the rights and interests conveyed in the document
actual notice of the conveyance of title
None of the above
Tim has been judicially declared incompetent. His best friend then deeds him a parcel of real property. The deed is:
invalid, as an incompetent grantee cannot take title to real property
invalid, since the title must pass to Tim's guardian or conservator
valid, since a grantee does not have to be legally competent to receive title
valid only if placed in trust until such time that Tim is declared competent
Which would a court disregard in deciding whether an item of personal property has become real property?
Agreement between the parties
Permanence of annexation
Cost of the item
Relationship of the parties
Which of the following is not a necessary element in the formation of a contract?
A lis pendens action is effective:
during the time that an action is pending
until the action is dismissed
until a final judgment is rendered
All of the above
Most real estate syndicates in California are organized as:
real estate investment trusts
A tenant wants to sublease or assign a leased property. If the lease is silent on this issue, then the:
property cannot be sublet or assigned
property cannot be sublet or assigned without the landlord's permission
tenant may go ahead and sublease or assign the property
tenant may sublease the property but may not assign it
Which of the following statements regarding options is correct?
If a lease containing an option to purchase is assigned, the option right will pass along with the lease
An option creates a fiduciary relationship between optionor and optionee much like the relationship between agent and principal
An optionor may give another option to a second optionee before the first option period expires
An option is the same thing as a right of first refusal
A 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:
agent to the buyer
agent to the seller
a dual agent
agent to the escrow company
Jaime 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:
has a cloud on the title
takes title without the easement but receives a new easement by necessity
loses the easement to the servient tenement
has the same right to the easement that Jaime did
Which of the following easements runs with the land and is binding on all subsequent owners?
Easement in gross
Easement by implication
Which of the following would be important in the process of filing a mechanic's lien?
Notice of nonresponsibility
Notice of completion
Notice of cessation of labor
All of the above
A 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:
A 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:
inform the salesperson that the property already has sold on the seller's terms and conditions
present the offers in the order they were received
present the two offers at the same time
present the second offer only if the first offer is turned down
When industrial space is rented, the landlord customarily promises that:
the property is up to current code at the time of the lease
the property was constructed according to code when it was built
the property shall be in habitable condition
the property shall be never be subject to condemnation
The Alquist-Priolo Special Studies Zone Act requires a subdivider to disclose to potential purchasers:
underground storage tanks
location in a flood plain
water quality reports
earthquake fault lines
Basic responsibility for zoning decisions lies with the:
city engineer's office
board of equalization
A 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?
Which of the following is not a way through which an individual can acquire an interest in real property?
A grant deed is executed if it has been:
signed by the grantor
delivered to the grantee
Which of the following statements regarding the power of eminent domain is true?
The proposed use must be practical and just compensation must be paid
The proposed use must be a public use and just compensation must be paid
The proposed use must be practical and a public use
The government must offer the property owner a property of comparable value and utility
The government has the authority to enact zoning ordinances because these ordinances:
maintain the quality of building construction
promote the public health, safety, morals, and welfare
prevent oversupply of certain types of uses
encourage conformity within particular zones
Who is generally responsible for the installation of the curbs, streets, and public utilities in a new subdivision?
City or county planning office
Bonding companies serving the developer
Improvement districts formed by lot purchasers
A mechanic's lien against real property may be filed by:
contractors and subcontractors
suppliers of materials
All of the above
The police power is the power of the state to:
regulate federal lands for the public good
enact and enforce laws to protect the safety, health, morals, and welfare of the public
take private land
The Real Estate Commissioner has primary authority regarding new subdivisions that includes:
drainage and sewage
financial arrangements necessary to complete improvements
All of the above
A possessory ownership right or interest in real property is a/an:
Which of the following instances would not terminate an offer to purchase real property?
Death or insanity of the offeror
The offeror revokes the offer after the offeree has accepted the offer
The offeree does not respond to the offer before a deadline for acceptance
The offeree makes a counteroffer
Which of the following would not be considered real property?
Rights to unextracted oil
An easement appurtenant
An uncultivated stand of trees
A leasehold estate in a rental house
When a counteroffer is made:
the offeree becomes the offeror
the offeror is accepting the terms without modification
the original offer is amended
the offeree can later go back and accept the original offer
Alienation is most nearly the opposite of:
A contract that is executory is a:
binding written contract
contract that contains a promise for a promise
contract that has not yet been fully performed
contract that has been fully performed
In some bilateral contracts, the parties exchange a promise for a promise. Each promise would be:
consideration for the contract
How is the maximum commission rate a broker may charge established?
It is set by the local multiple listing service
It is mandated by the state Real Estate Law
It must be within limits prescribed by real estate professional associations' ethical codes
It is set by agreement between principal and broker
On 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?
Harry withdrew his offer, so no contract is formed
Harry did not withdraw his counteroffer in time, so a contract is formed
Harry may not make a counteroffer
Harry's withdrawal was ineffective since it was not in writing
Before the seller's acceptance of an offer has been communicated to a buyer, the buyer may withdraw the offer:
if the offer was not stated to be irrevocable
if the offer was not scheduled to remain open until a particular date
if the offer was not accompanied by a good faith deposit
for any reason
An attachment lien is good for:
In which of the following circumstances would a deed always be void?
A forged deed in the hands of a bona fide purchaser
A deed signed by an incarcerated convict
A deed signed by an unmarried person under age 18
A deed that is not supported by consideration
A broker sells a used mobile home that is subject to registration requirements. The Department of Housing and Community Development must be notified within:
Which of the following organizations is considered to be an artificial person?
All of the above
Title will be delivered on a different day than the day the buyer plans to take possession on. The parties should use a/an:
interim occupancy agreement
assignment of rents
A broker is working under an open listing. When prospective buyers are shown the property, the broker should:
withhold disclosure of latent defects
notify the multiple listing service
require each prospect to sign an agreement to pay a commission if they purchase the property
notify the seller of the prospects' names
A 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:
the broker is not entitled to compensation since the transaction did not go to escrow
the buyer is entitled to return of the good faith deposit but has no further claim against the seller
the acceptance of the second offer was void because a contract for the sale of the property already existed
the broker was entitled to a commission as soon as the first offer was accepted
If 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:
is therefore implicitly authorized to accept a buyer's deposit
may accept a buyer's deposit but becomes the buyer's agent in regard to the deposit
will violate the Real Estate Law if he accepts a buyer's deposit without the express authority to do so
must be given express permission by the seller before being able to accept the buyer's deposit
Which of the following is a requirement for a tenancy in common relationship to exist?
The tenants in common must have the right of survivorship
Each tenant in common must have an equal interest
There must be unity of possession
Each tenant must take title to the property at the same time
A 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:
both the buyer and the seller
The payment of a commission to a real estate broker based only on an oral listing is:
contrary to public policy
permissible if the seller elects to do so
prohibited by the Commissioner's regulations
A seller's agent owes which of the following duties to the buyer?
The duty of confidentiality
Only the duty to disclose latent defects
The duty of honesty and good faith
All of the same fiduciary duties
With a purchase agreement, the date of formation of the contract is:
when acceptance is communicated to the offeror
the date the contract is prepared
the date the buyer signs
the date the offer is made
A 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:
divided equally between seller and listing agent
limited to 5% of purchase price
retained entirely by the seller
returned to the buyer, less any seller's expenses
Which of the following methods would create an easement that would be easiest to terminate for nonuse?
Broker Stevens listed a property. Broker Yamasaki located a buyer for the property. Under a unilateral offer of subagency, Yamasaki would be a/an:
inadvertent dual agent
agent of Broker Stevens
What is the most common way for a corporation to generate additional funds?
Sell common stock
Authorize preferred stock
Order a bond issue
Take on additional limited partners
How do riparian rights differ from littoral rights?
Riparian rights are associated with water; littoral rights are associated with land
Riparian rights are only use rights; littoral rights are possessory rights
Riparian rights relate to streams and rivers; littoral rights relate to lakes and oceans
Riparian rights are appurtenant to the land; littoral rights are not
Who would be in the weakest position to protect himself against a loss of property to another claimant?
A holder of a recorded deed who rents the property out
A holder of an unrecorded deed who occupies the property
A holder of a certificate of title issued by a title company
A holder of an unrecorded quitclaim deed who does not occupy the property
Leo 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?
A broker could not list it since the land is not being sold with it
A broker could not sell it without a mobile home sales permit from the DMV
A broker could arrange a sale of the home and a sublease of the land
A broker could list the mobile home only if it has been registered for more than one year
An appurtenant easement is:
a possessory interest in another person's land
a right held by condominium owners to use property owned in common
an interest in land capable of being transferred by the owner of the easement
incapable of being sold because it is intangible
On 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?
Valid, since an option may be assigned, but Sharon will need to purchase the property before April 30
Valid, since Sharon will purchase within 30 days after the exercise of the option
Invalid, since an option may not be assigned
Invalid, since the purchase date will be after the option has expired
A buyer's agent has a fiduciary duty to:
advise the buyer on how best to take title
use utmost care when dealing with the buyer
instruct the buyer which title insurance company to use
disclose to the seller the maximum the buyer will pay for the property
A 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:
the corn is real property, so the buyer is entitled to it
the seller receives the corn because it has been constructively severed from the land
the seller may return to harvest the corn under the doctrine of emblements
the seller may harvest the corn because his intention is the controlling factor
The 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:
None of the above
Barry 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?
Barry and Carrie are both liable for commissions
Barry is liable for a commission
Carrie is liable for a commission
Neither party may be liable for a commission
How can a homestead recorded under California law be invalidated?
Destruction of the improvements on the property by fire
A declaration of homestead is filed on another property
Moving to another property
Moving to another state
Broker 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?
Bates would not be able to collect because of the open listing
Bates would not be able to collect because verbal commission split agreements are unenforceable
The matter would be referred to the Real Estate Commissioner for arbitration
Bates would be able to file a civil action and collect his commission
An 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?
If an owner obtains riparian rights to a property:
he may take as much water from the stream as he likes
he may use the water only with a government permit
he has absolute ownership of the stream
the riparian rights apply only to the property that is adjacent to the stream and that is located within the watershed
In which of the following ways are joint tenancy and community property similar?
Both are limited to husband and wife
Both require that the property be owned by no more than two parties
Both involve equal ownership interests
Both require the signature of all parties to sell any interest in the property