Property OwnershipIntermediateCalifornia Exam

What is a 'planned unit development' (PUD)?

AA zoning category for industrial use, as typically recorded in a California deed, under standard California property ownership law, consistent with common law property principles

BA development where owners hold fee simple title to their lot and home, plus membership in a homeowners association that owns common areasCorrect

CA government housing project for low-income residents, consistent with common law property ownership principles, under standard California property ownership law, consistent with common law property principles

DA mixed-use commercial development, per standard California real property conventions, under standard California property ownership law, consistent with common law property principles

Why A development where owners hold fee simple title to their lot and home, plus membership in a homeowners association that owns common areas Is Correct

Answer B: A development where owners hold fee simple title to their lot and home, plus membership in a homeowners association that owns common areas

In a PUD, each owner has fee simple title to their individual lot and dwelling, plus a membership in the HOA, which owns and maintains the common areas (parks, pools, etc.).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

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Key Terms to Know

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

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