Chapter 8- True or False Practice Guide Exam.

Appurtenant easements will typically run with the land. - correct answer True Explanation- Appurtenant easements exist between two adjacent parcels of land. A personal easement in gross typically runs with the land. - correct answer False Explanation- A commercial easement in gross will run with the land. A personal easement in gross does not run with the land and usually terminates at the death of the easement owner or when the owner of the property subject to the easement transfers title to the property. Construction liens take priority from when the first visible work commenced. - correct answer True Explanation- The effective date of a construction lien relates back to when work began on the site. Contractors must file them no later than six months after the date labor or materials were last furnished. A mortgage lien is both voluntary and general. - correct answer False Explanation- A mortgage lien is voluntary and specific. Encumbrances will lessen the value of a property. - correct answer False Explanation- Encumbrances, such as a judgment, may lessen the value of the property. Encumbrances, such as deed restrictions, do not negatively affect the value and could add value to a property. The transfer fee for conveying a property for $100,000 property is $300. - correct answer True Explanation- $100,000 x .003 = $300 Wisconsin expresses its taxes in the form of a mill rate, which is 1/1000 of a dollar. - correct answer True Explanation- To determine the tax bill using a mill rate, convert the mill rate to a decimal and then multiply by the assessed value. A neighbor's new sunroom addition extends beyond the setback lines. This is encroachment on the neighboring parcel. - correct answer True Explanation- Encroachments exist when a fixture, such as a wall, fence, or roof illegally intrudes onto the property of another. An easement by prescription must be granted when subdividing land to provide ingress and egress. - correct answer False Explanation- A court may grant an easement by prescription if a claimant has made use of another's land when that use has been continuous, exclusive, visible, open, notorious, and hostile for a time, which is usually 20 years. The owner of the easement has ownership rights in the property. - correct answer False Explanation- The owner of the easement has the right to use another's property. The easement owner does not have ownership rights to the property. The WB-11 Residential Offer to Purchase pre-printed terms allow the seller to provide an abstract or title insurance as title evidence. - correct answer False Explanation- The pre-printed terms of the WB-11 Residential Offer to Purchase, lines 340-342, require the seller to provide title insurance to the buyer. Property taxes are calculated by multiplying the market value by the tax rate. - correct answer False Explanation- Property taxes are calculated by multiplying the assessed value by the tax rate. A party must record a deed for a transfer to be valid. - correct answer False Explanation- Parties often record deeds when conveying property but it is not necessary to record a deed for a party to convey property. Recording a deed provides constructive notice of ownership to third parties and it protects a grantee from other parties challenging ownership of a property.