BUS 204 Ch. 23: Real and Personal Property

Real property consists of which of the following? Select 3 answers.

1. land 2. fixtures 3. buildings

Your friend just bought a new sports car, and it has to be picked up in Detroit. Your friend asks you to fly to Detroit and drive the car home for him. Because you are such good friends, you agree. On the way home from Detroit, even though you were driving carefully, you have an accident. Your friend has not even had time to get the car insured yet. Who do you think will be responsible for paying to repair the car?

your friend

A new north-south interstate highway was being planned, and the route for the interstate went straight through Roy's property. Roy received a notice from the city stating that his property would be condemned and setting a hearing on the matter. Roy appeared at the hearing to contest the action, saying he had lived in this house for forty years, and strenuously objected to the city taking his property! The probable result is that:

the city may take the property under the principle of eminent domain since it is for a public use, as long as it pays Roy just compensation.

From each of the following bailments, select those in which the bailee will be strictly liable: (Select 2 answers)

1. A hotel which fails to provide a safe for guests 2. A freight moving company carrying goods for a company

Which of the following scenarios represents an example of an involuntary bailment? Select 2 answers.

1. A person forgetting to take home their cooler from their friend's cookout 2. A customer mislaying a phone in a restaurant

Which of the following are common law requirements for transfer of title by adverse possession? Choose 3 answers.

1. Possession must be hostile, against the true owner's wishes. 2. Possession must be actual and exclusive. 3. Possession must be open, visible, and not secret.

Which of the following are requirements for a valid gift? Choose 3 answers.

1. The donee (one receiving the gift) must accept the gift. 2. The giver must intend to make a gift. 3. The gift must be delivered.

In a tenancy in common: (Select 2 answers)

1. co-owners may ask the court for a partition. 2. two or more people own the same piece of property.

One of Jenna's favorite things to do is relax by the lake on her neighbor Brad's property. One day, Jenna is sitting by Brad's lake reading a book when she discovers a diamond ring near the water's edge. Jenna shows the ring to Brad, but Brad doesn't know who the owner is. Jenna and Brad post notices around the small town they live in, hoping someone will come forward to claim the ring. After a reasonable amount of time, if the real owner does not claim the ring:

Brad owns the ring.

In Suzanne's will, she left her home and five acres to her niece, Abrhianna. However, before her death, Suzanne sold the property to Clark, providing a deed in fee simple. At the moment of Suzanne's death, who owns the property?

Clark owns the property.

Which is the correct definition of "marketable title"?

The grantor (seller) of the property has ownership of the property free from undisclosed encumbrances and free from defects.

Which of the following does NOT qualify an object as a fixture?

The object was in or on the property at the time of sale.

What duty of care does a bailee owe a bailor when the bailment is for the sole benefit of the bailee?

The utmost care

Which of the following is true about easements appurtenant?

They "run with the land."

Yvonne and Rolanda are good friends. One day, they are on the way to the market together when they are hit by a car whose driver runs a stop sign. Yvonne is barely injured, but Rolanda sustains life-threatening injuries. In the hospital, just before they wheel Rolanda away to surgery, Rolanda tells Yvonne that she wants Yvonne to have her diamond necklace. Rolanda directs Yvonne to get the diamond necklace out of Rolanda's purse, where they had put it after the accident, so Yvonne does. The surgery is successful, and Rolanda makes a full recovery. If Rolanda asks for her necklace back:

Yvonne must return the necklace to her.

The attribute that distinguishes personal property from real property is:

ability to be moved.

Methods for transferring title to real estate include:

by sale, by gift, through a will, through adverse possession, and through eminent domain.

Which of the following is an example of a fixture?

cabinets attached to the wall of a garage

The process of examining public records to determine if there are any claims on a piece of real property before its ownership is transferred is equivalent to an examination for:

defects of title

In order to form a bailment, the bailor must:

deliver actual possession of personal property to the bailee.

A person in her last days with a terminal illness tells her friend that he can have her car when she dies. This type of gift is called a:

gift causa mortis.

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is:

mislaid.

If an individual owns a piece of property and has the unlimited authority to use and sell the property, they:

own the property in fee simple absolute.

Title to personal property may be transferred through:

sale, gift, possession, or production.

After acquiring three new rental properties, Savannah made improvements to them. In the first property, she installed ceiling fans in each bedroom. In the second, she laid out decorative throw rugs in the living room. In the third, she had a new central air unit installed. Six months later, she decides to sell the properties and is wondering which of these improvements she can remove from the properties and keep for herself. Of the three improvements, Savannah CANNOT remove:

the ceiling fans and central air unit because they would be considered fixtures.

Land burdened by an easement is called:

the servient estate.