Arizona Real Estate Chapter 2**

Mary, Donna, and Meg now co-own a property as joint tenants. Mary and Meg are killed in a car accident. What is Donna's interest in the property? A. Donna owns the property in severalty. B. Donna is joint tenant with 100% interest. C. Donna still owns 33%, and the rest is split between the heirs of Mary and Meg. D. The estate ends at the death of the majority of the co-owners.

A. Donna owns the property in severalty.

John, Ted, and Alice own property as joint tenants. Alice sells her ownership interest to Sam. What best describes the current ownership of the property? A. John and Ted remain join tenants with Sam as a tenant in common. B. John, Ted, and Same are now joint tenants. C. John, Ted and Sam are tenants in common. D. All hold the property in severalty.

A. John and Ted remain join tenants with Sam as a tenant in common.

John, Ted, and Alice own property as joint tenants. Alice sells her ownership interest to Sam. What best describes the current ownership of the property? A. John and Ted remain joint tenants with Sam as a tenant in common. B. Joh, Ted and Same are now joint tenants. C. John, Ted, and Same are tenants in common. D. All hold the property in severalty.

A. John and Ted remain joint tenants with Sam as a tenant in common.

Michelle and Mike are husband and wife. Michelle inherits a home from her late uncle John and is careful not to commingle it with other property. When Michelle dies, who owns the home she inherited from John? A. Michelle's heirs B. Mike C. John's wife D. This will be determined in probate

A. Michelle's heirs

Conventional life estates are created by the actions of? A. a grantor B. a grantee C. a life tenant D. the allodial system

A. a grantor

Which of the following lease arrangements would a landlord be LEAST LIKELY to use with a retail tenant in a shopping center? A. gross lease B. net lease C. percentage lease D. net-net lease

A. gross lease

Bob and Bill bought an apartment building and took title to the property as joint tenants. Bob died and left a will. Bill now owns the apartment building... A. in severalty B. as tenant in common with Bob's heirs C. as joint tenant with Bob's heirs D. The building would have the be sold upon Bob's death

A. in severalty

Arizona's homestead exemption protects homeowners from general creditors up to what amount? A. $100,000 B. $150,000 C. $200,000 D. $250,000

B. $150,000

Peggy and Paul own a parcel of land. Peggy owns 65% interest, and Paul owns the remainder. How do they hold title? A. Joint tenancy B. Tenants in common C. Community property with right of survivorship D. Tenancy by the entirety

B. Tenants in common

Your roommate from college moves to your town. You let her move in with you while she is looking for a job. What type of leasehold estate is this most likely to be? A. estate at sufferance B. estate at will C. estate for years D. periodic estate

B. estate at will

The term "right of survivorship" is most often associated with a? A. corporation B. joint tenancy C. tenancy in common D. tenancy in severalty

B. joint tenancy

A father owns a house as a fee simple owner and gives his daughter a life estate in the property with a provision that the property will pass to the son after her death. The son has a? A. reversion interest B. remainder interest C. homestead interest D. riparian interest

B. remainder interest

What is the legal proceeding that establishes the validity of a will? A. Inchoate B. Partition C. Probate D. Severalty

C. Probate

Penny formed a joint tenancy with Samuel. Penny is married to Ralph. Penny dies, and one week later Samuel dies. Who owns the property? A. Ralph B. Penny's heirs C. Samuel's heirs D. Ralph's heirs

C. Samuel's heirs

In Arizona, the "state presumption" is, unless stated otherwise, that unmarried couples will take title as? A. Joint tenants B. Community property C. Tenants in Common D. Severalty

C. Tenants in Common

Homeowners purchased a new residence and rented their existing home. Which statement is TRUE? A. They will keep the homestead protection on the home they are now renting, but will not have it on the new home. B. They will have homestead protections on neither home. C. They will have homestead protection on the new home, but not on the one they rented. D. They will have homestead protection on both homes.

C. They will have homestead protection on the new home, but not on the one they rented.

A fee simple property owner deeds title to the property to a church group as long as they run a battered women's shelter on the property. The type of ownership interest held by the church group is? A. fee simple B. life estate C. defeasible fee D. homestead

C. defeasible fee

Sally's apartment lease has expired but the building owner agrees to let her stay in the apartment until the owner's parents, who are in the process of selling their house, are ready to move in. The tenancy held by Sally is a(n)? A. estate at sufferance. B. periodic estate. C. estate at will. D. fee simple.

C. estate at will.

Sally asks her parents if she can move back home for a little while after going through a messy divorce. Her parents agree that she can move back home for one year, as long as she pays them $700 a month in rent. What is this an example of? A. estate at sufferance B. tenancy at will C. estate for years D. periodic estate

C. estate for years

Henry buys a retirement home in the mountains. He never really got along with his son Mario, but he really likes Mario's wife, Joan. After Mario gets a divorce, Henry changes his will so that Joan inherits the house when he dies. What type of estate does Henry have? A. conventional life estate B. defeasible fee estate C. fee simple absolute D. life estate pur autre vie

C. fee simple absolute

Homestead exemption protects against? A. voluntary liens B. specific creditors C. personal judgements D. foreclosure

C. personal judgements

Amy grants property to Bill for the life of Charles. After the death of Charles, the property goes back to Amy. What does Amy have? A. life estate pur autre vie B. leasehold estate C. reversionary interest D. freehold estate

C. reversionary interest

Which method of ownership is NOT legal in Arizona? A. joint tenancy WROS B. severalty C. tenancy by the entirety D. tenants in common

C. tenancy by the entirety

Which type of ownership is NOT recognized in Arizona? A. joint tenancy B. severalty C. tenancy by the entirety D. tenancy in common

C. tenancy by the entirety

When a defeasible estate ends, title will pass by all of the following EXCEPT A. to the original grantor B. to the original grantor's heirs C. to a specific third pay D. by the law of decent

C. to a specific third pay

A tenant and a landlord agree on an oral lease for three years. This lease is probably? A. typical of leases B. illegal C. unenforceable D. renewable if in writing

C. unenforceable

How much equity does the homestead exemption protect in a person's Arizona residence? A. $50,000 B. $75,000 C. $100,000 D. $150,000

D. $150,000

Grandpa owned property in fee simple. He granted a life estate to his brother Zach and a remainder estate to his son Joel. The life estate is based on Zach's life. What can Zach NOT do with his life estate? A. He can give his life estate away to his sister B. He can live on the property C. He can sell his life estate to a stranger D. He can will the life estate to his daughter

D. He can will the life estate to his daughter

A person who holds the greatest ownership rights in the property that is allowed by law owns a? A. leasehold estate B. life estate C. defensible estate D. fee simple estate

D. fee simple estate

Of these, which is the ONLY statutory life estate recognized in Arizona? A. curtesy B. dower C. fee tail D. homestead

D. homestead

How do government entities take title to real property? A. as community property B. as joint tenants C. as tenants in common D. in severalty

D. in severalty

Peter leases space for his ice cream shop in Stella's building. He pays her $800 a month in rent plus a portion of his profits. Peter most likely has what kind of lease? A. graduated lease B. ground lease C. index lease D. percentage lease

D. percentage lease

Which of the following would be considered community property? A. property bought by either party before the marriage B. property acquired by gift after the marriage C. property acquired by inheritance after the marriage D. property bought by one of the parties during the marriage

D. property bought by one of the parties during the marriage

Jean gives 20 acres to the city Edgewood but stipulates that the city can use it only to create a nature preserve and park. If the city uses the land for any other purpose, it will revert to Jean's heirs. What kind of estate has Jean created. A. conventional life estate B. fee simple absolute C. life estate pur autre vie D. qualified fee

D. qualified fee

How will corporation hold title? A. community property B. joint tenancy C. tenant in common D. severalty

D. severalty

What is the only form of co-ownership that permits division of property in unequal proportions? A. joint tenancy B. severalty C. tenancy by the entirety D. tenancy in common

D. tenancy in common

Which type of co-ownership is presumed in Arizona? A. community property B. joint tenancy C. tenancy by the entirety D. tenancy in common

D. tenancy in common

Which type of ownership is NOT entitled to a stepped-up tax basis upon the death of an owner? A. community property B. community property with the right of survivorship C. joint tenancy with the right of survivorship D. tenancy in common

D. tenancy in common