CA Real Estate Principles Course » 2021 » Section 9 Unit 1 Exam

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Question #1
When property changes hands, the deed is recorded. There’s a fee for recording. What is the benefit to the grantee of having the deed recorded?
A.   It impacts who owns the property.
B.   It's required by law.
C.   It protects against foreclosure.
D.   It puts the public on notice regarding ownership.
Question #2
What type of involuntary lien is placed on a person’s estate after their death if there are unpaid debts to creditors?
A.   Deceased person's debt lien
B.   Mechanic's lien
C.   Real property tax lien
D.   Estate/ inheritance tax lien
Question #3
How is priority determined in cases where more than one judgment lien is filed against a property?
A.   Whoever is owed the most money has priority.
B.   The government has priority, followed by whoever is owed the most next.
C.   Whoever paid to receive priority service at the county clerk's office.
D.   Whoever filed their claim first receives priority.
Question #4
Which of the following defines the term 'lis pendens'?
A.   A legal term that means "it depends" and requires a certain minimum sales price of the property.
B.   A public listing and notice of foreclosure of a property.
C.   A legal notice that a lawsuit is pending that affects the title of a property
D.   A notice that notifies potential buyers of a pending lease
Question #5
Daisy and her kids loved their new pool, but Daisy wasn’t so happy when she received notice that the general contractor who poured the concrete had placed a lien on her home. Daisy went through her records and discovered that she had never paid the general contractor. What’s true about this situation?
A.   This is a legal mechanic's lien.
B.   This is a legal judgment lien.
C.   Daisy can now place a lien on the general contractor's property.
D.   The lien is illegal.
Question #6
What makes an income tax lien different from a property tax lien?
A.   An income tax lien is placed by the federal government and a property tax lien is placed by the state.
B.   An income tax lien is a general lien and a property tax lien is a specific lien.
C.   An income tax lien has priority over a property tax lien and will be paid first upon foreclosure.
D.   An income tax lien is voluntary and a property tax lien is involuntary.
Question #7
Dorcas and Ralph were married for 15 years. Ralph, an accountant, always took care of the bills and other financial matters for the couple. Then Dorcas discovered that Ralph had failed to pay the property tax on their property for the last three years. Which of these is likely to happen?
A.   The state will place a mortgage lien on their home for the amount of property tax owed.
B.   Dorcas and Ralph will be required to sell their home to the state for the amount of property tax owed.
C.   The state will place a condemnation order on their property so they can't transfer their property until the debt is satisfied.
D.   The state will place a tax lien on their property so it can't be transferred without satisfying the debt.
Question #8
Which of the following is true about ownership or title to a property?
A.   Title isn't finalized until the deed has been recorded.
B.   The last to record has priority.
C.   The seller is responsible for paying for owner's and lender's title insurance.
D.   Constructive notice to the public of real property ownership occurs when the deed is recorded.

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