Study Guide
Real Property
Instructor: Commissioner (Ret.) Douglas G. Carnahan
Study Guide
- General concept of "property" as a somewhat amorphous term.
- General right of ownership as opposed to "possession."
- Concept of fee simple absolute.
- "Riparian" and "littoral" rights.
- Relationship between tort and contract in realty: tort duties of owners, landlords, sellers.
- Basic forms of ownership (particularly joint tenancy and community property).
- Nature of definitions of "community" and "separate" property; note that California is a community
property state.
- Concept of adverse possession and when it is applied.
- Concept and purposes of zoning ordinances and the fact that they are mainly "citywide" concepts;
principle that zoning ordinances are not encumbrances.
- Concepts of eminent domain and public use; note that "public use" is a shifting concept currently.
- Liens on real property: judgment liens and mechanics' liens (nature); concept of "lis pendens."
- Condominium ownership: what it means to be a condo owner.
- Awareness of "homeowners' associations" in condo governance and how they are organized;
jurisdiction of small claims courts over most condo governance issues (Davis-Sterling Act).
- Concept of easements: types, formation, termination.
- Statute of Frauds.
- General structure of real estate sales contracts - contents, time-is-of-the-essence clauses, duties of seller
to buyer (generally and in terms of disclosures).
- Concept of "liquidated damages" and how and when it is used.
- Recording statutes: types and purposes.
- Deeds: types, requirements.
- Concept of covenants encumbering real property and of "covenants running with the land."
Requirement of notice for grantee to be bound by a covenant.
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- Landlord-tenant issues:
- Concept of title vs. possession.
- Concept of LL-T relationship being both of contract and tort.
- Concept of "mutually dependent covenants."
- Concept of sublease.
- Concept of types of tenancies (e.g., "periodic," "at will," etc.).
- Basics of the eviction process.
- Concepts of habitability and retaliatory eviction.
- Concept of rent control.
- Concept of promissory note secured by deed of trust; concept of assignability of a note to a "holder in
due course."
- Concept and purposes of an escrow in the sale of realty.
- Basic structure of a deed of trust; concept of "senior" and "junior" encumbrances.
- Effect of sale of realty "subject to" a mortgage or DOT.
- Concept of foreclosure; concept of redemption.
- Relationship between real estate lending and federal "truth-in-lending" statute; note existence and
effect of "RESPA."
- Types of real estate loans; concept of "amortization."
- What constitutes unlicensed practice of law. Nature of license held by real estate brokers.
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