NC Test Prep Unit II - Broker Supervision & Compensation (S)

Which of the following describes an encumbrance?

• A third party’s right to encroach upon a property without the permission of the property owner.

• A third party’s right to claim the sale proceeds of a property that has been mortgaged as collateral for a loan.

• A third party’s interest in a real property that limits the interests of the freehold property owner.

• Another's right to acquire a freehold interest in a property against the property owner's wishes.

Which of the following is true of easements in general?

• They involve the property that contains the easement and a non-owning party.

• They apply to a whole property, not to any specific portion of the property.

• They only involve the legal owner of the property.

• They may require a specific use, but cannot prohibit one.

Mr. King wants to offer 100 acres of his property for sale. Since the property is landlocked, he will have to put in a driveway to the road that will run across his remaining property. What kind of easement will he have to grant?

• An easement in gross.

• A commercial easement.

• A personal easement.

• An easement appurtenant.

If property Alpha has a court-ordered easement across property Beta in order for Alpha to have access to a public road, the easement is a(n)

• easement by prescription.

• personal easement.

• easement by necessity.

• easement in gross.

An encroachment is

• an easement that has not been recorded on the title of the burdened property.

• an unauthorized physical intrusion of one property into another.

• a right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property boundary.

• a structure that does not comply with a zoning ordinance.

A town needs to dig a trench across an owner's property to install a sewer line to a neighboring property, and the owner refuses permission. A property owner sells the front half of a lot and wants to continue using the driveway to access the rear of the lot. A trespasser has been using an owner's property for a certain period with the owner's knowledge but without permission. A property owner wants to prevent the owner of an adjoining property from building an improvement that blocks her view.

• a town needs to dig a trench across an owner's property to install a sewer line to a neighboring property, and the owner refuses permission.

• a property owner sells the front half of a lot and wants to continue using the driveway to access the rear of the lot.

• a trespasser has been using an owner's property for a certain period with the owner's knowledge but without permission.

• a property owner wants to prevent the owner of an adjoining property from building an improvement that blocks her view.

The purpose of a deed restriction is to enable an owner to specify:

• the form of ownership in which a property may be held.

• how long a property must be owned before it can be legally transferred.

• what groups of people are legally excluded from future ownership of a property.

• how a property may be used and what improvements may be built on it.

Melinda purchases a house and finances it. The lender in turn places a lien on Melinda’s title. The lien in this mortgage transaction is:

• evidence of debt incurred by a property owner.

• a promissory note granted by a property owner as security for a debt.

• the creditor's claim against the property as collateral security for the loan.

• the document required to clear clouded title.

In a lien-theory state, what kind of interest does a mortgage lender have in the liened property?

• A possessory interest.

• A tenancy-by-mortgagee interest.

• A legal interest in a pro rata share of the property.

• An equitable interest.

How is a lien terminated?

• Payment of the debt that is the subject of the lien and recording of the satisfaction.

• Transfer of the property that has the lien.

• Recording of another lien that is superior.

• Death of the lienor or lienee.