A survey shows the neighbor's garage crossing the boundary by 2 feet, and a driveway easement in favor of the property behind. How should the garage intrusion and the driveway right be classified?
Correct Answer
D) The 2-foot garage is an encroachment; the driveway is an easement
D. The garage intrusion is an encroachment; the driveway right is an easement. Distinguish a structure crossing the boundary from a right to use another property. The question expressly identifies the driveway easement; it does not establish a corresponding right for the garage. Scope and exceptions: This classifies the supplied facts; it does not decide removal rights, prescriptive rights or insurance coverage. Source: Glossary: Easement; Encroachment — https://www.dre.ca.gov/files/pdf/refbook/ref27.pdf
Why This Is the Correct Answer
D. The garage intrusion is an encroachment; the driveway right is an easement. Distinguish a structure crossing the boundary from a right to use another property. The question expressly identifies the driveway easement; it does not establish a corresponding right for the garage. Scope and exceptions: This classifies the supplied facts; it does not decide removal rights, prescriptive rights or insurance coverage.
Why the Other Options Are Wrong
Option A: Both are encroachments, since each affects the use of the land
The authorized driveway right is not classified simply as a physical intrusion.
Option B: Both are easements, as each gives a 3rd party a right over the land
The garage intrusion does not by itself establish an easement.
Option C: Neither matters where the lender obtains title insurance on the file
Title insurance does not erase the distinction between the interests.
Exam Tip
A physical condition and a legal use right are different concepts.
More Mortgage Knowledge Questions
In a closing-readiness check, a risk reviewer sees facts tied to TILA Truth in Advertising. What should the file reflect?
In a training scenario, a trainee asks which official source controls FHA single-family origination policy. What action best follows the rule?
A compliance analyst compares the file facts with LTV Ratio Calculation during a licensing team review. Which conclusion is accurate?
A branch manager asks about a loan file because a trainee asks which official source controls FHA single-family origination policy. What should happen?
The loan team compares the file facts with ARM Cap Structures during a borrower follow-up call. Which conclusion is accurate?
A borrower has a 30-year fixed-rate mortgage with monthly principal and interest of $1,450. Property taxes increase, and taxes are paid through escrow. What can happen to the total monthly payment?
A loan has an outstanding principal balance of $240,000 and a 6% annual interest rate. Using simple monthly accrual, how much interest accrues for one month?
An annual escrow analysis for a current borrower shows a $780 shortage. One month's escrow payment is $600. The servicer elects to require repayment over the shortest installment period permitted by Regulation X for this shortage. What schedule is permitted?
What does an amortization schedule show for each scheduled payment?
A monthly principal-and-interest payment is $1,800, of which $1,250 is interest. How much principal is paid that month?
People Also Study
Federal Mortgage-Related Laws
24% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A veteran used $92,000 of entitlement on a home he still owns and rents out. He now wants a VA loan on a new principal residence. Assuming he otherwise qualifies for the new VA loan, how may remaining entitlement be used while the earlier loan remains outstanding?
Next Question
A mortgage file is paused during a secondary-market screen because of Balloon Mortgage Structure. Which answer should avoid a shortcut that would misapply the rule?
