Real Estate: Chapter 4

Front 1

An encumbrance is a ___ on the title, defined as anything which affects or limits the _____ ______ _____ or value of property.

Back 1

1. burden
2. fee simple title

Front 2

There are two types of encumbrances:

1 - Those affecting title

2 - those affecting the ______ condition or use of the property

Back 2

physical

Front 3

a lien is a charge imposed upon a ________ property by which it is made a security for the performance of an ___, typically the payment of a ____

Back 3

1. specific
2. act
3. debt

Front 4

Specific lien:

A charge against a _________ parcel or piece of property.

Back 4

particular

Front 5

General lien:

One which applies to ___ property of an owner, not exempt by law

Back 5

all

Front 6

General vs. Specific:

Mechanics lien

Back 6

specific

Front 7

General vs. specific:

trust deed

Back 7

specific

Front 8

General vs. specific:

Property taxes

Back 8

specific

Front 9

General vs. specific:

attachment

Back 9

specific

Front 10

General vs. specific

judgment

Back 10

general

Front 11

General vs. Specific:

federal/state income taxes

Back 11

general

Front 12

General vs. specific:

IRS liens

Back 12

General

Front 13

Voluntary lien:

Any lien placed on property with consent of, or as a result of, the ________ act of the owner (mortgage or trust deed). They are contractual limitations of ownership. Voluntary liens do not require _________

Back 13

1. voluntary
2. recording

Front 14

Involuntary lien:

A lien imposed against property without _______ of an owner. these include those which he does not wish to ______ and those created by operation of law.

Back 14

1. consent
2. accept

Front 15

Mechanics Liens:

California law permits any persons furnishing labor, material, or services for the improvement of real estate to file a lien on the property if they are not paid, even if the _____ had paid the general contractor

Back 15

owner

Front 16

Persons entitled to a _______lien:

The law protects every class of laborer providing skill or services and furnishing materials including: mechanics, material men, contractors, etc.

Back 16

Mechanics

Front 17

Lien process:

Mechanic's liens are triggered by the _____ __ ____

Priority: the mechanics lien has priority over any other lien except _____ and _______ __________. i.e ______ ___________ bonds

A mechanics lien recorded today has ________ over an unrecorded deed of a week ago.

Back 17

1. start of work

2. taxes
3. special assessments
4. street improvement

5. priority

Front 18

Completion of project:

______ the completion date to the exact day is critical when establishing whether or not a given claim of lien has been filed within the proper time limit fixed by law.

Back 18

fixing

Front 19

any one of the following alternatives is recognized as equivalent to completion:

1. the owner may record a formal notice of ________
2. _________ by the owner.
3. cessation of labor for a continuous period of __ days
4. Cessation of labor for a continuous period of __ days if the owner has filed a notice of cessation

Back 19

completion
Acceptance
60
30

Front 20

filing period of the project:

a mechanic's lien must be verified and ________ in order to be effective

Back 20

recorded

Front 21

when Notice of Completion is recorded:

- the _______ _________ has 60 days to file
- All others have __ days to file, such as subcontractors, not laborers, for wages

Back 21

General contractor

30

Front 22

When no notice of completion is ________, all persons have 90 days following the completion of project to file

Back 22

recorded

Front 23

Notice of non-responsibility:

an owner who did not order the work done on the property, may protect his title against a mechanics lien by recording and posting a notice of non-responsibility. This must be down within ___ days of obtaining knowledge of the construction.

Back 23

10

Front 24

work valued up to $___ does not require a contractor's license

Back 24

500

Front 25

Attachment:

the process by which real or personal property of a defendant in a lawsuit is seized by ___ _____ and held as security for satisfaction of a possible future judgment.

The _______ gets the lien before entry of a judgment
It is valid for a _____ year period and does not terminate upon death
An attachment lien is an ________, ________ lien

Back 25

1. the court

2. Plaintiff
3. three
4. involuntary, specific

Front 26

Judgment:

Abstract of judgment:

Once a certified abstract of judgment is recorded, it becomes a _______ lien on all non-exempt property of the judgment debtor in that county for ten years unless it is extinguished earlier or renewed for another ten years.

Back 26

general

Front 27

Writ of execution:

A court order ______ the sale of a debtor's property to satisfy a ________

Back 27

1. forced
2. judgment

Front 28

lis pendens (pendency of action):

recorded notice by a party to indicate ______ litigation which will affect _____ to property. It clouds title and affects marketability until the lis pendens is removed, the action is dismissed, or final judgment is rendered. It is effective when it is filed.

Lis pendent gives the least protection against a ________ lien

Back 28

1.pending
2. title

3. mechanic's

Front 29

Affirmation: this is a way to make a ______ statement without taking an oath

Back 29

1. public

Front 30

Non-money encumbrances:

Easement - Right to enter and use another's land within _______ limits. An easement is ___ an estate - it is a non-possessory interest only giving the right of use. ___-___ does not affect its validity

Back 30

1. definite
2. not.
3. non-use

Front 31

a unlocated easement is _____

Back 31

valid

Front 32

Dominant v. servient Tenements:

Dominant tenement is land that is ________
Servient tenement is land that is subjected or ________ with the easement. it is serving the needs or __________ the other parcel

Back 32

1. benefited
2. burdened
3. benefiting

Front 33

Appurtenant easement:

those rights, when attached to a dominant tenement, which pass automatically upon the transfer of the dominant tenement. They do ___ have to be mentioned in the deed nor do the properties have to be adjoining to be considered valid

Back 33

1. not

Front 34

Easement in gross:

An easement that is not appurtenant to a specific parcel of land.
- There is no ________ tenement (only servant) - it is a personal right which does not run with the land.

- right of the public utility company to string wires across parcels of land
- This is the most ______ type of easement
- it is an _________ but not appurtenant to the land

Back 34

1. dominant

2. common
3. encumbrance

Front 35

license is a form of permission that can be _______

Back 35

revoked

Front 36

Private restrictions:

created by _______ owners in deeds or by written agreement and usually are either _________ or covenants.

CCR's are a type of private restrictions generally applicable to several ______, such as in subdivisions.

Back 36

1. private
2. conditions

3. owners

Front 37

if a condition of the estate granted is breached, the title _______ to the original grantor or his heirs. It must be _____ and reasonable to be __________. A violation can result in a loss of property.

Back 37

1. reverts
2. legal
3. enforceable

Front 38

conditions always run with the restricted land indefinitely in the future. A breach will result in ______ damages or forced complacence by a court injunction

Back 38

dollar

Front 39

declaration of restrictions:

When creating restrictions on a new subdivision, the ________ records a "declaration", refers to it in each ____, and gives all owners the right to _______ the restriction. The CC&R's are listed in the recorded declaration of restrictions

Back 39

1. subdivider
2. deed
3. enforce

Front 40

Public restrictions (primarily zoning laws):

Limitations on land-use that promote public health or general public welfare.

If Zoning laws conflict with deed restrictions, the more ___________ of the two controls must be adhered to

Back 40

restrictive

Front 41

Encroachments: the building of structure or improvements, partly or wholly on the property of another is a form of trespassing. Encroachment are covered in an ____ owner's extended title policy

Back 41

ALTA

Front 42

Zoning ordinance:

Zoning symbols are not consistent. the following are considered standard:

a) ____ - light industrial or manufacturing
b) ____ - Single family residence
c) ____ - Multiple family

Back 42

a) M-1
b) R-1
c) R-3

Front 43

In terms of zoning, an owner who feels that blanket zoning ordinances are not fair or reasonable may:

Petition to the ________ __________ for rezoning provided there are a number of parcels.

Back 43

planning commission

Front 44

Statutory laws:

The _______ ________ code regulates new construction, remodeling and Demolition

Back 44

uniform building

Front 45

State Housing Laws:

this law provides _______ construction and occupancy requirements for dwellings, apartment houses, and hotels.

a. the city or county may impose more _________ requirements
b. construction requirements are supervised by local ________ __________
c. occupancy and sanitation regulations are enforced by local ______ ________
d. The state housing law applies to unincorporated areas even if the county has a building code

Back 45

1. minimum

2. stringent
3. building inspectors
4. health officers

Front 46

Local building codes:

a. generally, if city, state, or county codes overlap each other, the more _________ code or law which provides the most ______ applies.
b. A building permit from the local building inspector is usually required for ___ construction, demolition and remodeling.

Back 46

1. stringent
2. safety
3. new

Front 47

State contractors license law:

Designed to protect the public against incompetent building contractors and subcontractors, it requires all construction to by done by ________ contractors

Back 47

licensed

Front 48

The three steps in construction are:

1. Land ___________
2. ___ and ____ approval
3. ___________

Back 48

1. acquisition
2. map, plan
3. construction

Front 49

builders are regulated by three things, what are they?

Back 49

1. state housing law
2. local building code
3. state contractors license law

Front 50

The Subdivision Map Act:

This act gives _____ governments direct control over the types of subdivision desired by the community and the kind and quality of physical ____________ necessary within a subdivision. The governing body of each city and county has the authority to enforce the provisions of the Map Act. This power may however, be delegated to the local planning commission, who also develops ______ ___________

Back 50

1. local
2. improvements
3. zoning regulations

Front 51

Definition of the Map Act:

1. Applies to ___ or more lots or parcels
2. Applies to any subdivision defined as any ____ property, improved or unimproved, divided for the purpose of sale, lease, or financing, into ____ or more parcels whether for use now or in the future

Back 51

1. two
2. five

Front 52

Map preparation and filing procedures: a subdivider must:

1. Prepare:
a) a parcel map for two to ____ parcels
b) A tentative map for five or more parcels showing the design of the subdivision
3. Post a ___________ bond with the city or county or deposit funds into ______ to certify easements and the improvements of streets. The _________ is responsible for putting in the improvements. The city or county insures that they are built to ____

Back 52

1. four

2. performance
3. escrow
4. code

Front 53

California subdivided lands law:

This is a ________ protection law whose basic purpose is to protect California purchasers of new subdivided land from fraud, deceit or misrepresentation regardless of the property location. This law applies to __- _____ and ___-__-_____ subdivisions which are sold in California

Back 53

1. consumer
2. in-state
3. out-of-state

Front 54

A subdivision is a :

a) Division of land into ____ or more parcels for the purpose of sale, lease, or financing, whether now or __ ___ ______. This excludes divided parcels of 160 acres or more and industrial and commercial subdivisions.

b) A time-share project of ______ or more time-share estates

Back 54

1. five
2. in the future
3. twelve

Front 55

The Subdivided lands law is directly administered by the real estate ___________

Back 55

commissioner

Front 56

Preliminary public report (the "pink"):

Issued by the commissioner when a requirement has ___ ____ ________ but can be expected to be completed. This expires in ___ ____, upon issuance of the _____ report or if a material change occurs.

a) can only accept ____________. (no _____ to be made or contracts entered into, but the subdivider may give a listing to a broker

Back 56

1. not been fulfilled
2. one year
3. final

4. reservations
5. sales

Front 57

Final public report (the "white"):

Issued when the subdivision is ________ by the commissioner.

a) The purchaser must sign a ________ receipt stating he has received and read a copy of the public report before purchasing. Receipt must be on a form approved by the real estate commissioner and retained for _____ years

Back 57

1. approved
2. separate
3. 3

Front 58

A final public report can be issued without a __________ report

Back 58

preliminary

Front 59

A final public report is valid for ____ years from date of issuance

Back 59

5

Front 60

Conditional public report: Allows a subdivider to enter into a contract with a buyer, with a refundable deposit. valid for ___ months

Back 60

6

Front 61

Types of subdivisions: Standard Subdivision:

____ key subdivision is completed and ready for _________

Back 61

1. turn

2. occupancy

Front 62

Types of Subdivisions: Condominium Conversion:

Existing tenants get _____ right to purchase their own unit.

- Tenants must be given ___ days advance notice of a condo conversion

- The ________ may avoid filing an environmental impact report (EIR). It states the impact of the development on the environment.

- A negative declaration means no ________ influence on the environment due to the development.

Back 62

1. first

2. 180

3. developer

4. negative

Front 63

Condominium project: Definitions:

- A unit is an area not owned in common and includes air space, partitions, and interior wall surface

- Common areas are areas owned in common: Bearing walls (____ ________), sidewalks, elevators, central air conditioning system.

Back 63

real property

Front 64

Condominium project: A purchaser usually owns:

- In ___ ______, the air space in his unit

- an _________ interest in common to certain other defined sections of the whole property

Back 64

fee simple

undivided

Front 65

Types of Subdivisions:
Condominium project: Homeowner's association:

May raise dues by 20% and budget for repairs by 5% _______ prior consent for each fiscal year

Back 65

without

Front 66

Types of subdivisions:
Community Apartment project: A buyer receives _________ interest in property coupled with the right to occupy a certain unity or apartment

a) All owners usually are tenants in ______
b)Only _ loan and _ tax bill is placed on the ______ property. Failure to pay by one owner affects all interests

Back 66

1. undivided
2. common

3. 1,1
4. entire

Front 67

Types of Subdivisions:
Stock Cooperative Project: A _________ holds title.

a) right of occupancy must be transferred with a _____ __ _____
b) There is is only one ___ bill and one ___ on the entire project

Back 67

1. Corporation
2. Share of stock
3. tax, loan

Front 68

Types of subdivisions:
Planned unit Development project (PUD):
there is a _______ land ownership under each townhouse in a PUD

Back 68

1. separate

Front 69

Note regarding different types of subdivisions:

All fill-in development develops ______ land in existing urban and suburban neighborhoods i.e. land and a tear down outside an urban area.

Back 69

1. vacant

Front 70

A _________ is a contaminated abandoned commercial or industrial site

Back 70

brownfield.