CAS Bar Property Law 1 — Questions and Answers
Question 1: What is California's community property system?
- Property acquired during marriage is presumed equally owned by both spouses (Correct answer)
- All property is separately owned regardless of marriage
- Only real property is community property
- Community property only applies upon divorce
Correct answer: Property acquired during marriage is presumed equally owned by both spouses
California is a community property state where all property acquired during marriage through either spouse's efforts is presumed to be owned equally by both spouses.
Question 2: What disclosures must a seller make when selling residential real property in California?
- A Transfer Disclosure Statement covering known material defects and property conditions (Correct answer)
- No disclosures are required in as-is sales
- Only structural defects must be disclosed
- Disclosures are optional and determined by the listing agent
Correct answer: A Transfer Disclosure Statement covering known material defects and property conditions
California Civil Code requires sellers to provide a Transfer Disclosure Statement (TDS) disclosing known material facts about the property's physical condition, including defects.
Question 3: What is the California Environmental Quality Act (CEQA) and how does it affect real property?
- It requires environmental review before approving development projects that may significantly impact the environment (Correct answer)
- It only applies to federal lands in California
- It exempts residential construction from environmental review
- It applies only to projects in coastal zones
Correct answer: It requires environmental review before approving development projects that may significantly impact the environment
CEQA requires state and local agencies to identify environmental impacts of proposed projects and to avoid or mitigate those impacts before approval.
Question 4: What is Proposition 13's impact on California property taxes?
- It limits property tax to 1% of assessed value and restricts annual assessment increases to 2% (Correct answer)
- It eliminated property taxes entirely
- It doubled property tax rates
- It only applies to commercial properties
Correct answer: It limits property tax to 1% of assessed value and restricts annual assessment increases to 2%
Proposition 13 (1978) caps the property tax rate at 1% of the property's assessed value at time of purchase and limits annual assessment increases to no more than 2%.
Question 5: What is a lis pendens in California real property law?
- A recorded notice that litigation is pending that may affect title to the property (Correct answer)
- A type of property lien
- A zoning change notification
- A foreclosure notice
Correct answer: A recorded notice that litigation is pending that may affect title to the property
A lis pendens is recorded in the county recorder's office to provide public notice that a lawsuit has been filed that involves a claim affecting real property title.
Question 6: Under California law, what rights does a tenant have regarding habitability?
- The right to a dwelling that meets basic health and safety standards, with remedies including rent withholding (Correct answer)
- No right to habitability unless the lease specifically provides it
- Only the right to hot water and electricity
- Habitability rights apply only to tenants with written leases
Correct answer: The right to a dwelling that meets basic health and safety standards, with remedies including rent withholding
California's implied warranty of habitability requires landlords to maintain rental units in livable condition meeting health and safety standards, and tenants may withhold rent or repair and deduct for violations.
CAS Bar Property Law 1
What is California's community property system?