California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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How can the stock in a mutual water company that is appurtenant to the land be transferred?

May only be transferred with the transfer of the property
Can be sold separately from the property
Is always transferred to the state after the sale
Can be retained by the seller after the property sale

The correct answer is: May only be transferred with the transfer of the property

A mutual water company stock that is appurtenant to the land cannot be transferred separately from the property, as it is tied to that specific property. This means that it cannot be sold or retained separately from the property, and will automatically transfer to the new owner along with the land. Option B is incorrect because it suggests that the stock can be sold separately. Option C is incorrect because it states that the stock will always be transferred to the state, which is not true as it will transfer to the new property owner. Option D is incorrect because it suggests that the seller can retain the stock after the property is sold, which is not possible.