CGA CGA Legal Concepts & Property Rights 2

Question 1

In appraisal, which concept describes the right to use a property in any lawful manner?

Accepted Answer

Bundle of rights

Answer

The 'bundle of rights' concept includes the rights to use, sell, lease, mortgage, and exclude others from a property, representing the full scope of ownership.

Question 2

What is a 'deed restriction' (or restrictive covenant)?

Accepted Answer

A private limitation on property use recorded in the deed that runs with the land

Answer

Deed restrictions are private agreements recorded in the chain of title that impose limitations on land use and are binding on future owners.

Question 3

Which type of ownership allows two or more people to hold title with right of survivorship?

Accepted Answer

Joint tenancy

Answer

Joint tenancy includes the right of survivorship, meaning a deceased owner's interest automatically passes to the surviving joint tenant(s) rather than through probate.

Question 4

What is an 'encumbrance' as it applies to real property?

Accepted Answer

Any claim, lien, charge, or liability that affects or limits the fee simple title to a property

Answer

An encumbrance is a legal claim or burden on real property, such as a lien, easement, or deed restriction, that may limit the owner's use or transfer of the property.

Question 5

What does 'police power' allow government entities to do in relation to real property?

Accepted Answer

Regulate the use of private property to protect the public health, safety, morals, and general welfare

Answer

Police power is the government's authority to regulate property use through zoning, building codes, and environmental laws without compensating the owner, as long as it doesn't constitute a taking.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA CGA Legal Concepts & Property Rights 2