Ch 2 - Nature Of Real Property

Front 1

As California entered the 21st century with a period of record real estate price appreciation, which of the following factors caused that boom to lose momentum?

(a) Severe natural disasters including drought, fires, and earthquakes.

(b) Payment increases caused by resetting adjustable-rate mortgages resulting in a wave of loan foreclosures.

(c) Infrastructure and budgetary collapse caused by unabated illegal immigration.

(d)High energy costs caused primarily by record oil prices.

Back 1

(B) In recent years, the easy credit available to borrowers of even modest means resulted in a boom that finally lost momentum when the payment increases created by resetting adjustable-rate mortgages caused a wave of loan defaults and property foreclosures.

Front 2

Spanish settlement of California began with the establishment of

(a) Military forts.

(b) Maritime ports.

(c) Missions.

(d) Indian reservations.

Back 2

(C) is correct. The major impetus to Spanish settlement of California was the establishment of missions.

Front 3

California real estate law originated from

(a) Calbre regulations.

(b) Spanish law.

(c) English common law.

(d) European law.

Back 3

(C) is correct. In general, California's laws relating to real estate originated from English common law.

Front 4

Which of the following events is arguably the most important single event with respect to the exploration and settlement of the western frontier and California?

(a) The Mexican/American war

(b) The Treaty of Guadalupe Hidalgo

(c) The discovery of gold at Sutter's Mill

(d) The creation and upholding of Mexican land grants

Back 4

(C) is correct. In the midst of the postwar land problems, gold was discovered at Sutter's Mill in 1848. This discovery, coming within weeks of the end of the war, gave new importance to America's westernmost frontier.

Front 5

The diversity of California's population and economy makes the state unique compared to the rest of the country. Which statistic shows the greatest disparity between the state and the nation?

(a) Home values

(b) Household income

(c) Population

(d) Growth

Back 5

(A) is correct. Home value statistics show the greatest disparity between the state and the nation.

Front 6

A large, densely populated metropolitan area, consisting of a number of major urban areas is referred to as a(n)

(a) apex statistical area.

(b) county.

(c) urban region.

(d) megalopolis.

Back 6

(D) is correct. Megalopolis. Imagine a huge pokemon octopus -- with a few too many tentacles... like an unnecessary amount of tentacles. It's the evolved state of Los Angeles, which is the evolved state of San Diego.

Urban development generally has been concentrated in coastal and central valley areas. Eventually, Los Angeles and San Diego will form one continuous urban area, or megalopolis.

Front 7

The five major rights, which can be remembered by the acronym PUEED, are:

Back 7

1. Right of [p]ossession.

3. Right of [e]njoyment of the property.

4. Right to [e]xclude others from the property.

5. Right to [d]ispose of the property.

Front 8

In California, the term real property is synonymous with the term real estate.

The California Civil Code definition of real property includes all of these (4) elements:

Back 8

1. Land. Because fuhcking duh.

2. Fixtures (attachments) to land.

3. Anything incidental or appurtenant to land. I don't see in the contract where you mentioned a detachable garage.

4. Anything immovable by law.

Front 9

Define: Land

Back 9

Basically, take a cone, put it upside down. Fill it half way with soil. The soil beneath it, is mine. The air above it -- all the way up to fuhcking outer space, is mine. And if I get anything fancy underground, like oil, water, gold, fuhcking titanium, fuhcking earthworms made of fuhcking platinum... Lava at the earth's core? I'm sure I own like .000000000001% of it. Don't fuhck with my portion of the core. It's mine. With, like, conditions. But still.

Land is the soil, the material that makes up what is called earth. Land includes the substances beneath the surface that extend to the center of the earth. These include oil, gas, and water, and they may be many times more valuable than the surface itself. Land also includes the airspace above the earth's surface for an indefinite distance upward.

Front 10

Define: Mineral Rights

Back 10

I aint saying I'm a gold digger. But if I was, and there was gold under my land, I can fuhcking dig for gold and Kanye can shut his fuhcking mouth. That includes black gold AKA oil mother fuchkers.

The right to remove substances from the land, usually from beneath the surface. The term includes solid minerals, such as gold, coal, iron, and gravel from the soil as well as riverbeds.

Mineral rights also include minerals that have a "fugitive or fluid nature, such as oil and gas."

All or some of the minerals may be transferred apart from the rest of the land.

Front 11

Mel Muller owns 100 acres of undeveloped land in San Bernardino County. Hearing that oil might be found in the area, Mel drills a well under his property. He finds nothing, but he thinks he will be successful if he drills a well slanted to reach under his neighbor's ranch. Can Mel do so?

Back 11

No Mel, you sneaky ass mother fuhcker. You can't just go installing fuhcking wells that run through other people's property. Stay on our side of the fuhcking cone.

Mel can take from the earth only what is directly under his own land. Mel can capture a fluid substance, such as oil, only when it is found within the boundaries of his property.

Front 12

The classical definition of property ownership is ownership of

(a) the surface only.

(b) horizontal and vertical areas above and below the property.

(c) everything below the property in the shape of an inverted pyramid with its apex at the center of the earth and infinite airspace.

(d) all that one can perceive.

Back 12

(C) is correct. That's a hella fuhcking fancy way of saying an upside down cone.

This is the classical definition of ownership of land. Modern day practical theory prohibits exercising absolute control beyond a reasonable distance above and below the surface of the land.

Front 13

Define: Riparian Rights

Back 13

If you own land that runs next to a river, or better yet, you're so fuhcking ballin' that the river flows through your land... then, you can do whatever the fuchk you want. Just don't be an ass hole if you also share that river with your neighbors. Don't go taking shihts that run down stream to the Millers just because you hate the mother fuchkers. Don't go throwing eels and shiht in there. Fuhcking piranhas.

Riparian rights are the rights of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land, provided such use does not injure other adjacent land owners.

Front 14

(4) Conditions of Riparian Rights

Back 14

1. Riparian Rights belong to owners of land bordering a river or other flowing stream. Obviously.

2. Owners of riparian rights do not own the water but have the right to reasonable use of it on their own property. So if you piss in your own lake, the government still owns your lake, and your piss with it.

3. If the stream is navigable, the state owns the land under the stream. Is that even necessary though? What if there's gold in that lake?

4. The riparian landowner's property line is the mean high water line of the stream. So pretty much, if a rock falls in it's no longer yours.

Front 15

Define: Littoral Rights

Back 15

Pretty much, if you've got an ocean-front property, you don't own the ocean. The state (those grubby handed mother fuhckers) owns that shiht, and the public is allowed to use it, piss all over it, and you can do NOTHING about it... Your rights pretty much end at the high-water mark.

The rights of a landowner whose land borders a pond, lake or ocean shore-line where the body of water is non-flowing. Littoral rights extend to the mean high watermark of ocean or tidal waters.

Front 16

Underground Water Rights

Back 16

If you're snow white, and like singing by wells, you better not be taking all the fuhcking water. Seriously Snow White, stop making excuses to go fetch water when you really know your thirsty ass is just trying to run into prince Ferdinand. Don't get mad when the state comes over because you keep stealing all the dammed water, and now they've got to keep tabs on how much water everyone's using. So thirsty you fuhcking put the state in a drought.

The correlative theory. The correlative theory provides landowners with equal rights to use underground water for beneficial purposes, as long as they do not seriously deplete the water supply of their neighbors. In the event of a water shortage, courts may apportion the underground water supply among landowners.

Front 17

Define: Percolating Water

Back 17

Surprise, mother fuhckers. There's water chilling underground and no one knows where the fuhck it's coming from.

Underground water that is not confined to a defined stream. The water table (groundwater level) is the upper limit of percolating water below the earth's surface, at a depth of a few feet or hundreds of feet.

Front 18

Define: Correlative Use

Back 18

Um, we've gone over this already. You can use whatever water happens under your property, so long as you don't hog that shiht, or block a stream running underneath it (that shiht exists, I guess) because you're an ass hole and what the Smith's to die of dehydration.

Doctrine that states that property owners may use a reasonable amount of water from an underground source, but not to the detriment of adjoining property owners.

Front 19

Define: Right of Appropriation

Back 19

Remember the whole definition of "Land" and how you thought you were a bad ass because you own "an infinite amount of airspace" and land, all the way down to the core? Well... because the government owns your fuhcking soul, they can do whatever they need to with your property in order to provide water to the public. They can take, impound (wtf), or divert water apparently.

The right of the government to take, impound, or divert water flowing on the public domain from its natural course for some benefit to the public.

Front 20

Name (2) examples of California using its right of appropriation.

Back 20

The California Water Project and the Central Valley Project are just two examples of the massive developments that have moved water throughout the state.

Front 21

(3) Conditions of Air Rights

Back 21

1. Federal law allows use of airspace by aircraft. The gov'ment doesn't give a f*ck about your airspace.

2. Local laws impose building height restrictions. If I wanted to build a building shaped like my dick, local law would tell me to stop because it's just too high. Get it? My dick is huge.

3. Air rights may be transferable from one property owner to another to allow construction of skyscrapers on limited and expensive ground area. You know what, I'm feeling generous. I'll even let you KEEP the air space.

Front 22

The rights of a landowner whose property line touches on a river or other flowing stream are called

(a) sub-surface rights.

(b) correlative user rights.

(c) high-low water rights.

(d) riparian rights.

Back 22

(D) is correct. Riparian rights mean you get to do whatever the fuhck you want with the water flowing through as long as you're not an ass hole to your neighbors about it.

The rights of an abutting owner to his/her fair share of water flowing past the land.

Front 23

Define: Fixtures

Back 23

A fixture is an article of personal property that has been so affixed to real estate that it has become real property. (See trade fixtures)

I understand you installed the stripper pole, but you apparently cemented it into the ground of the garage. And now my happy ass gets to keep it.

Front 24

Ed's Service Station has two hydraulic lifts in place in the repair bays. If Ed decides to sell the station, will the hydraulic lifts be included?

Back 24

Yes, the hydraulic lifts will be included in a sale of the property (in the absence of an agreement to the contrary). Such fixtures are ordinarily permanent installations. I mean seriously, did you think you were just going to fuhcking pick it up and take it, Ed?

Front 25

Define: Appurtenant

Back 25

Appurtenant items belong to a property. For example, the garage is appurtenant to the house. Appurtenant items run with the land when the property is transferred.

Front 26

Define: Emblements

Back 26

1. Growing crops produced by the labor of the cultivator.

2. The right to the profits from such crops. (See fructus industriales)

Front 27

Define: Fructus Industriales

Back 27

Corn, wheat and other crops that are produced annually by labor and industry, and not spontaneously. They are referred to in Latin as "fructus industriales." (See emblements)

Front 28

Define: Fructus Naturales

Back 28

Fructus naturales are the "natural fruits" of the land where they grow, such as such as timber and wild game. Under common law, fructus naturales are considered part of the real property, and not separate chattels in relation to any legal sale of the property.

Front 29

Which of the following is NOT appurtenant to real estate?

(a) Growing trees

(b) Buildings

(c) Fences

(d) Trade fixtures

Back 29

(D) is correct. Appurtenant means belonging to; adjunctive; appended or annexed to. For example, the garage is appurtenant to the house, and the common interest in the common elements of a condominium is appurtenant to each apartment. Appurtenant items run with the land when the property is transferred. Trade fixtures do not transfer with the property.

Front 30

Define: Trade Fixture

Back 30

An article of personal property affixed to a leased premises by the tenant as a necessary part of the tenant's trade or business.

At the termination of a lease, trade fixtures are removable by the tenant before expiration of the lease. The tenant is responsible for any damages caused by their removal.

Front 31

Define: Personal Property

Back 31

personal property Personal property are things that are tangible and movable; property that is not classified as real property, such as chattels. Title to personal property is transferred by way of a bill of sale, as contrasted with a deed for real property.

Front 32

Give an example of real property that becomes personal property using trees.

Back 32

Trees are real property while they are growing in the ground. When the trees are cut down, they become personal property. Tree logs may be cut into boards and used in the construction of a building that is considered part of the land. Thus, the wood from the tree that began as real property may again become real property.

Front 33

The five tests for a fixture: MARIA

Back 33

1. Method by which the thing is affixed.

2. Adaptability of the thing for the land's ordinary use.

3. Relationship of the parties.

4. Intent in placing the item on the land.

5. Agreement of the parties.

Front 34

Tests for a Fixture: Method

Back 34

Method by which the thing is affixed. The greater the degree of permanence in the attachment, the more likely it is a fixture. A wood gazebo on a concrete foundation is attached permanently; a screened enclosure fastened to the ground with tent stakes is not.

Front 35

Tests for a Fixture: Adaptability

Back 35

Adaptability of the thing for the land's ordinary use. The better adapted, the more likely it will be considered a fixture. A custom-fitted item, such as a swimming pool cover, would fall into this category.

Front 36

Tests for a Fixture: Relationship

Back 36

Relationship of the parties. If a residential tenant attaches something to the premises, there will be a presumption that it is personal property and removable by the tenant. The court favors tenant over landlord and buyer over seller.

Front 37

Tests of a Fixture: Intent

Back 37

Intent in placing the item on the land. This is the most important consideration. The intent may be for reasons of health and safety rather than to improve the property, such as installation of a fire extinguisher.

Front 38

Tests of a Fixture: Agreement

Back 38

Agreement of the parties. If the parties are knowledgeable, they can avoid ambiguities by specifying in writing whether various items are fixtures or personal property and how those items will be affected by the transaction.

Front 39

Mary has remodeled her family room and installed a wood-burning stove. The heavy cast-iron stove sits on a brick base, and the chimney vents through a special opening in the roof. Unexpectedly, Mary is transferred by her company and decides to sell her house. The Nelsons and Mary sign a contract of sale that does not specifically mention the stove but does include "all fixtures" in the sale. Can Mary take the stove with her?

Back 39

No. The installation, permanence, and use of the stove all indicate it is a fixture that should stay with the house. If Mary (or her broker) had thought of it beforehand, she could have stipulated in the contract of sale that the stove would not be included and that Mary would repair any damage caused by its removal. The expense of doing that would probably be greater than the cost of a new stove, however.

Front 40

Fixtures on leased premises

Back 40

Parties to a lease of real property are free to make any agreement as to fixtures. In the absence of an agreement, several laws can be applied. An item attached for use in a trade or business (a trade fixture) or for residential use may be removed. The tenant must repair or pay for any property damage resulting from the removal.

Front 41

All of the following are factors considered when determining whether an item of personal property has become real property, EXCEPT:

(a) agreement between the parties.

(b) method of attachment.

(c) cost of the article.

(d) relationship of the parties.

Back 41

(C) is correct. Fixtures are items of personal property which have become attached to real property, thus becoming real property. The five tests of a fixture are: Method of attachment, Agreement of the parties, Relationship of the parties, Intention of the person attaching it, Adaptability of the item. Study Aid: MARIA

Front 42

While ownership of real property is usually transferred by deed, ownership of personal property usually is transferred by

(a) land contract.

(b) bill of sale.

(c) trust deed.

(d) voucher.

Back 42

(b) bill of sale.

Front 43

Define: Metes and Bounds

Back 43

The legal description of land. It starts with a well marked point and follows the boundaries, using directions and distances around the tract, back to the point of beginning.

Metes literally means measurement of distances. Inches, feet, yards, and even rods. Think fancy ass britts who use "meters" to measure.

Bounds: Using rivers or roads and **** as the boundary. (See legal description, marker)

Front 44

Define: Monuments, Markers

Back 44

Natural or artificial objects used to define a boundary, like rocks, fences, or iron pipes

Front 45

Define: Angle of Measurement

Back 45

Describing a boundary using degrees according to north and south. Like the delicious ******* pie shows below.

The degree of deviation from either north or south, as shown in Figure 2.4.

Front 46

Method of Description: Metes and Bounds

Back 46

The most old school way of legally describing land, it starts with a designated point, called "the point of beginning" because old people have NO imagination. It then follows each boundary, defined in its accordance to the point of the ******* beginning. No one really uses this, except Hawaii, because **** changes. Hawaii's all trying to use rivers in their descriptions but rivers can dry up. Trees? Can get removed. Plus it uses some shitty ass language that only a certified surveyor can interpret. Pretty ******* useless. Like, look at this ****:

Beginning at a point on the southerly line of Apple Street, 150 feet westerly of the SW corner of the intersection of Apple and Edith Streets; running thence due south 300 feet to the northerly line of Oak Street; thence westerly along the northerly line of Oak Street, 100 feet; thence northerly and parallel to the first course, 300 feet, to the southerly line of Apple Street; thence easterly along the southerly line of Apple Street, 100 feet, to the point of beginning.

Front 47

Using only a street address to identify real estate can be problematic because

(a) rural, undeveloped land may not have a street address.

(b) street names may change.

(c) a driveway may be moved.

(d) All of the above

Back 47

(D) is correct. Physical characteristics of land and streets can be a problem when identifying real estate. Street names can change; driveways and access points can move; undeveloped land may not even have a physical address.

Front 48

Define: Rectangular Survey System

AKA The Section and Township System

AKA US Government Survey System

Back 48

A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines.

For example, property in the City of Fresno, as shown in Figure 2.6, may be described as ____ miles South and ____ miles East of the Mt. Diablo Baseline and Meridian, or as ____ miles North and ____ miles West of the San Bernardino Baseline and Meridian.

Front 49

Define: Township

Back 49

Townships are part of the rectangular (government) survey system of land description. A township is a division of territory that is six miles square, and contains 36 sections, each of which is one square mile. A township consists of 23,040 acres.

Front 50

Define: Correction Lines

Back 50

The earth is curvy, you know... So this whole, using lines and **** doesn't work too well. To compensate for it's lovely lady lumps, correction lines are measured every six miles.

Correction lines are provisions in the rectangular survey (government survey) system made to compensate for the curvature of the earth's surface. Also called guide meridians.

Front 51

Define: Guide Meridian

Back 51

A line, marked by monuments, running North and South through a section of country between other more carefully established meridians called principal meridians, used for reference in surveying. (See meridians, monuments)

Front 52

Define: Tier

Back 52

A strip of land six miles wide, extending east and west and numbered north and south according to its distance from the base line in therectangular (government) survey system of legal description. Also known as a township strip. (See baseline)

Front 53

Define: Range

Back 53

1. A measure of the difference between the highest and lowest variates.

2. A strip of land six miles wide, extending north and south and numbered east and west according to its distance from the principal meridian in the rectangular (government) survey system of legal description

Front 54

A system providing for surveying and describing land by reference to principal meridians and base lines is known as the

(a) rectangular survey system.

(b) metes and bounds system.

(c) property address system.

(d) lot and block system.

Back 54

(A) is correct. The Rectangular Survey System was established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines. Also known as the government survey system.

Front 55

Method of Description: Rectangular (Government) Survey System

Back 55

The important dimensions of any rectangular survey description are the compass points: north, south, east, and west. The smallest area described is given first and the largest area last, so to find a parcel, you should work backward from the largest area described.

Front 56

A section in Rectangular Survey System contains ____ acres.

(a) 80

(b) 160

(c) 320

(d) 640

Back 56

(D) is correct. One standard section is one square mile, which contains 640 acres.

Front 57

Compute the size of a parcel of land using Method #1: S½ of E½ of NE¼ of NW¼ of Section 1.

Back 57

Multiply the last fraction by the number of acres in a section. Then, working backward, multiply your answer by each of the remaining fractions.

640 acres (x) 1/4 [NW] = 160 acres

160 acres (x) 1/4 [NE] = 40 acres

40 acres (x) 1/2 [E] = 20 acres

20 acres (x) 1/2 [S] = 10 acres

The described parcel has 10 acres.

Front 58

Compute the size of a parcel of land using Method #2: S½ of E½ of NE¼ of NW¼ of Section 1.

Back 58

Method #2 — Multiply the fractions, then multiply that number by the number of acres in a section.

(1/2 x 1/2 x 1/4 x 1/4) x 640 acres = size of parcel

1/64 x 640 acres = size of parcel

640/64 acres = 10 acres

The described parcel has 10 acres.

Front 59

The S 1/2 of the NW 1/4 of the SE 1/4 contains

(a) 40 acres.

(b) 20 acres.

(c) 10 acres.

(d) 5 acres.

Back 59

(B) is correct.

Go backwards:

First: Find the SE 1/4.

Second: Find the NW 1/4 of the first area.

Third: Find the S 1/2 of the second area.

This area contains 20 acres.

Front 60

Define: Lock and Block System

Back 60

A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat map.

Front 61

Define: Plat Map

Back 61

A plat map is a map of a town, section or subdivision indicating the location and boundaries of individual properties.

Front 62

Developer Richard Tice and his wife, Rose, sold Gary Hize a house located at 491 Rose Avenue, which is lot 28 of block 15 of the Tice Elms Subdivision, Walnut Creek, Contra Costa County, California. The subdivision map was recorded August 16, 1968, and can be found in book 38, on page 106. How would the property be described by the developer and in the deed to the buyer?

Back 62

n a lot and block legal description, it is usually sufficient to give the city name, county name, tract name and number, and block and lot numbers. It is a better practice to give the book and page number in the county recorder's office where the map appears, as well as the date the map was recorded.

Richard would describe the property as 491 Rose Avenue, Tice Elms Subdivision, Walnut Creek, Lot 28, Block 15, Contra Costa County, California, as shown in Book 38, Page 106, recorded 08-16-1968. The deed Gary received described his property as Lot 28 Block 15, Tice Elms Subdivision (as recorded August 16, 1968, Book 38, Page 106 of maps), City of Walnut Creek, County of Contra Costa, State of California.

Front 63

A method of land description where each parcel in a subdivision is identified by tract, lot, and block numbers is called

(a) plat map.

(b) lot and block.

(c) metes and bounds.

(d) government survey.

Back 63

(B) is correct. Lot and Block is a description of real property that identifies a parcel of land by reference to lot and block numbers appearing on maps and plats of recorded subdivided land.

Front 64

Define: Community Property

Back 64

Community property is a system of property ownership based on the theory that each spouse has an equal interest in property acquired by the efforts of either spouse during marriage.

Front 65

A subdivision map is:

(a) rarely accurate.

(b) good only to describe the entire subdivision.

(c) never required.

(d) a good reference for a legal description.

Back 65

(d)a good reference for a legal description.

Front 66

The most useful method of describing a subdivision parcel is probably the:

(a) lot and block system.

(b) rectangular survey system.

(c) metes and bounds system.

(d) U.S. government survey system.

Back 66

(a)lot and block system.

Front 67

A township consists of how many sections?

(a) 12

(b) 18

(c) 4

(d) 36

Back 67

(d)36

Front 68

The Treaty of Guadalupe Hidalgo ended:

(a) the gold rush.

(b) Spanish rule.

(c) the war with Mexico.

(d) the missions.

Back 68

(c) the war with Mexico.

Front 69

California has how many principal baselines?

(a) One

(b) Two

(c) Three

(d) Four

Back 69

(c) Three

Front 70

Section 22 lies in what direction from section 17 of a township?

(a) Northeast

(b) Northwest

(c) Southeast

(d) Southwest

Back 70

(c) Southeast.

Front 71

In California, the Uniform Commercial Code governs sales transactions involving:

(a) real estate.

(b) bulk sales of goods.

(c) fixtures to real estate.

(d) riparian rights.

Back 71

(b) bulk sales of goods.

Front 72

The sale of personal property generally is governed by the laws of:

(a) the state where the personal property is located.

(b) the state where the owner of the property resides.

(c) any of the states.

(d) the federal government.

Back 72

(b) the state where the owner of the property resides.