California Real Estate Principles Chapters 1-5
Practice Exam Questions and Answers.
After purchasing a home, the new owner applies for a building permit to add another
bedroom and bath. The city building department requires a $1,000 application fee and
refuses to issue the permit until acceptable plans are submitted showing that the project
meets all construction codes. How does this building department requirement conflict with
the basic bundle of rights? - Correct Answer-Requiring an applications fee and a set of
approved plans infringes on the right to use and the right to enjoy by placing a cost on the
homeowner. On the other hand, requiring that the new addition meets housing codes
ensures that the existing and subsequent owner will have a safer home. As mentioned in
the textbook, the bundle of rights is not absolute or unlimited; these right are subject to the
actions of the government, which in turn is accountable to the people via the election
process.
After the close of the sale, the seller of a home removes a 8" x 10" metal prefab storage
shed from the property. The buyer states that the shed is real property and should stay on
the property as part of the sale . Who is right? How could this have been avoided? -
Correct Answer-In the absence of an agreement to the contrary, all items of personal
property can usually be removed by the seller. If the facts of the case show that the prefab
storage shed merely rested on the ground, it is probably personal property. If it was bolted
down on a cement slab or attached to a foundation, it probably is real property and should
stay with the land. If the issue is too close to call, the courts tend to favor the buyer. This
entire issue could have been avoided if the parties had mentioned the outcome of the
shed in the purchase contract.
How do trade fixtures differ from regular fixtures? - Correct Answer-Trade fixtures are
added by tenants as items needed to run a business, while regular fixtures are added by
tenants for personal use. The presumption is that business tenants are automatically
allowed to remove trade fixtures when they leave. Personal fixtures carry no automatic
removal presumption whether regular fixtures can or cannot be removed depends on
individuals circumstances. In both cases, any legal removal may cause. Once again, any
conflict can be avoided by discussing the issue in the rental contract.
Which group of explorers and colonizers set up presidios and pueblos in the early days of
California? - Correct Answer-Spanish
Which of the following is not considered to be the bundle of rights? The right to - Correct
Answer-Pay taxes
,Which of the following is considered LAND and, therefore, is real estate? - Correct
Answer-Reasonable airspace above the land
The right of the owner of land bordering on a river to use the river water in a reasonable
manner is called? - Correct Answer-Riparian rights
Wall to wall carpeting in a single-family dwelling is usually considered to be - Correct
Answer-A fixture
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? - Correct Answer-Stock
in a mutual water company and an easement
All other things being equal, in a dispute between buyer and a seller over a fixture, the
courts tend to favor - Correct Answer-The buyer
In what year was California granted statehood? - Correct Answer-1850
The main feature of personal property is - Correct Answer-its mobility
Which two terms do not belong together? - Correct Answer-Personal property- easement
An orange tree in a suburban backyard is real property. An orange on the ground that has
fallen off the tree is - Correct Answer-personal property
Unless otherwise noted, mineral rights - Correct Answer-Transfers with the land
Mortgages and deeds of trust are - Correct Answer-Personal property
The right of the state to give permission to a nonriparian owner to take water from a river or
lake is called a - Correct Answer-right of appropriation
Which mineral is not considered capable of absolute or exclusive ownership until reduced
to possession? - Correct Answer-Oil
The words CHATTEL and CHOSE stand for - Correct Answer-Personal property
, Which of the following is not considered a test of fixture? - Correct Answer-Method of
financing
Personal property that is attached to the land in such a manner that it becomes part of the
real property is called a(n) - Correct Answer-Fixture
Arnold and Sally are tenants in an apartment. They add temporary shelves in the kitchen.
When they move, the shelves will probably be considered - Correct Answer-Personal
property
Garcia leases a retail store and operates a jewelry business. When she moves, her
business machines and shelves will probably be considered - Correct Answer-trade
fixtures
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. - Correct
Answer-160 plus 5 equals 165 acres
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? - Correct Answer-
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.
Garcia deeds real property to Williams using a grant deed. Shortly thereafter, the county
abandons an alley easement at the rear of the property. Garcia maintains that the alley
area is his, whereas Williams says that it belongs to her. Based on your knowledge of
grant deeds, who is probably right? - Correct Answer-Williams is probably right because a
grant deed carries after-acquired title, which means that after the grantor deeds the
property , if he or she should later acquire an additional interest in the property, that
interest automatically passes to the grantee.
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 -
Correct Answer-Without a will
Practice Exam Questions and Answers.
After purchasing a home, the new owner applies for a building permit to add another
bedroom and bath. The city building department requires a $1,000 application fee and
refuses to issue the permit until acceptable plans are submitted showing that the project
meets all construction codes. How does this building department requirement conflict with
the basic bundle of rights? - Correct Answer-Requiring an applications fee and a set of
approved plans infringes on the right to use and the right to enjoy by placing a cost on the
homeowner. On the other hand, requiring that the new addition meets housing codes
ensures that the existing and subsequent owner will have a safer home. As mentioned in
the textbook, the bundle of rights is not absolute or unlimited; these right are subject to the
actions of the government, which in turn is accountable to the people via the election
process.
After the close of the sale, the seller of a home removes a 8" x 10" metal prefab storage
shed from the property. The buyer states that the shed is real property and should stay on
the property as part of the sale . Who is right? How could this have been avoided? -
Correct Answer-In the absence of an agreement to the contrary, all items of personal
property can usually be removed by the seller. If the facts of the case show that the prefab
storage shed merely rested on the ground, it is probably personal property. If it was bolted
down on a cement slab or attached to a foundation, it probably is real property and should
stay with the land. If the issue is too close to call, the courts tend to favor the buyer. This
entire issue could have been avoided if the parties had mentioned the outcome of the
shed in the purchase contract.
How do trade fixtures differ from regular fixtures? - Correct Answer-Trade fixtures are
added by tenants as items needed to run a business, while regular fixtures are added by
tenants for personal use. The presumption is that business tenants are automatically
allowed to remove trade fixtures when they leave. Personal fixtures carry no automatic
removal presumption whether regular fixtures can or cannot be removed depends on
individuals circumstances. In both cases, any legal removal may cause. Once again, any
conflict can be avoided by discussing the issue in the rental contract.
Which group of explorers and colonizers set up presidios and pueblos in the early days of
California? - Correct Answer-Spanish
Which of the following is not considered to be the bundle of rights? The right to - Correct
Answer-Pay taxes
,Which of the following is considered LAND and, therefore, is real estate? - Correct
Answer-Reasonable airspace above the land
The right of the owner of land bordering on a river to use the river water in a reasonable
manner is called? - Correct Answer-Riparian rights
Wall to wall carpeting in a single-family dwelling is usually considered to be - Correct
Answer-A fixture
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? - Correct Answer-Stock
in a mutual water company and an easement
All other things being equal, in a dispute between buyer and a seller over a fixture, the
courts tend to favor - Correct Answer-The buyer
In what year was California granted statehood? - Correct Answer-1850
The main feature of personal property is - Correct Answer-its mobility
Which two terms do not belong together? - Correct Answer-Personal property- easement
An orange tree in a suburban backyard is real property. An orange on the ground that has
fallen off the tree is - Correct Answer-personal property
Unless otherwise noted, mineral rights - Correct Answer-Transfers with the land
Mortgages and deeds of trust are - Correct Answer-Personal property
The right of the state to give permission to a nonriparian owner to take water from a river or
lake is called a - Correct Answer-right of appropriation
Which mineral is not considered capable of absolute or exclusive ownership until reduced
to possession? - Correct Answer-Oil
The words CHATTEL and CHOSE stand for - Correct Answer-Personal property
, Which of the following is not considered a test of fixture? - Correct Answer-Method of
financing
Personal property that is attached to the land in such a manner that it becomes part of the
real property is called a(n) - Correct Answer-Fixture
Arnold and Sally are tenants in an apartment. They add temporary shelves in the kitchen.
When they move, the shelves will probably be considered - Correct Answer-Personal
property
Garcia leases a retail store and operates a jewelry business. When she moves, her
business machines and shelves will probably be considered - Correct Answer-trade
fixtures
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. - Correct
Answer-160 plus 5 equals 165 acres
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? - Correct Answer-
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.
Garcia deeds real property to Williams using a grant deed. Shortly thereafter, the county
abandons an alley easement at the rear of the property. Garcia maintains that the alley
area is his, whereas Williams says that it belongs to her. Based on your knowledge of
grant deeds, who is probably right? - Correct Answer-Williams is probably right because a
grant deed carries after-acquired title, which means that after the grantor deeds the
property , if he or she should later acquire an additional interest in the property, that
interest automatically passes to the grantee.
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 -
Correct Answer-Without a will
