CP CP Real Property Law 1 — Questions and Answers
Question 1: In California, title to real property held by two unmarried co-owners with equal shares and a right of survivorship is called:
- Tenancy in common
- Joint tenancy (Correct answer)
- Community property
- Tenancy by the entirety
Correct answer: Joint tenancy
Joint tenancy in California conveys equal shares with a right of survivorship, meaning a deceased co-owner's share automatically passes to the surviving co-owner(s).
Question 2: California's primary document used to transfer real property from a seller to a buyer is a:
- Mortgage deed
- Grant deed (Correct answer)
- Promissory note
- Reconveyance deed
Correct answer: Grant deed
A grant deed is the most common instrument for conveying real property in California; it implies covenants of title by the grantor.
Question 3: Under California's homestead exemption, the primary purpose is to:
- Reduce property taxes for senior citizens
- Protect a portion of a homeowner's equity from general creditors in forced sale (Correct answer)
- Allow faster recordation of title documents
- Grant agricultural tax benefits
Correct answer: Protect a portion of a homeowner's equity from general creditors in forced sale
California's homestead exemption (CCP § 704.710 et seq.) protects a specified amount of a debtor's home equity from execution by unsecured creditors.
Question 4: A deed of trust in California differs from a mortgage in that:
- A deed of trust always involves only two parties
- A deed of trust involves three parties (trustor, trustee, beneficiary) and allows non-judicial foreclosure (Correct answer)
- A deed of trust cannot be used for commercial property
- A mortgage provides lower interest rates
Correct answer: A deed of trust involves three parties (trustor, trustee, beneficiary) and allows non-judicial foreclosure
A California deed of trust involves a trustor (borrower), trustee, and beneficiary (lender), and permits non-judicial (trustee's sale) foreclosure under Civil Code § 2924.
Question 5: Which California statute governs residential landlord-tenant relationships, including security deposit limits?
- California Civil Code § 1940 et seq. (Correct answer)
- California Code of Civil Procedure § 1161
- California Health and Safety Code § 17920
- California Business and Professions Code § 10000
Correct answer: California Civil Code § 1940 et seq.
California Civil Code § 1940 et seq. governs residential tenancies, including security deposit limits (generally two months' rent for unfurnished units).
Question 6: In California real estate transactions, escrow closes when:
- The purchase agreement is signed by both parties
- The deed is recorded and funds are disbursed to the seller (Correct answer)
- The buyer obtains loan approval
- The title report is issued
Correct answer: The deed is recorded and funds are disbursed to the seller
Escrow closes in California when the grant deed is recorded and the escrow holder disburses the funds to the seller.
CP CP Real Property Law 1
In California, title to real property held by two unmarried co-owners with equal shares and a right of survivorship is called: