Chapter 2

Rank the priority of these liens on a property from first to last.

1. Property tax lien 2. Mortgage lien created at purchase of the property 3. Second mortgage property created at purchase of the property 4. Judgement lien arising a year after purchase of the property

Elective share has been adopted in about _______ of states in the United States.

50 percent

Joint tenancy

An ancient form of co-tenancy that enabled land holdings to remain intact

Community property

An automatic 50 percent share in all property acquired "out of the fruits of the marriage."

Which of these terms best characterizes the meaning of personal rights?

Freedom

Curtesy

Gives a surviving husband a one-third life estate in the real property ever held by a decedent wife during the marriage.

Elective share

Gives a surviving spouse some automatic ownership of both real and personal property held by a spouse at the time of death.

Dower

Gives a widow an automatic one-third life estate in real property ever owned by a decedent husband during the marriage.

Which of these factors would encourage a tenant to seek a tenancy for years rather than a periodic tenancy?

Greater possible disruption from moving, Greater need for the specific location

Which of these terms is more characteristic of a periodic tenancy than a tenancy for years?

Informal, High risk of misunderstanding

Characteristics of a tenancy for years include which of these?

It must be conveyed in writing (to be enforceable) if longer than a year. It can be virtually any length, up to many decades.

Which of these tenancies has "right of survivorship," such that the death of one co-owner results in the decedent's ownership interest being passed to the surviving owner(s)?

Joint tenancy, Tenancy by the entirety

In which of these freehold estates has the right of disposition been separated from the other rights?

Life estate

Tenancy by the entirety

Marital co-ownership that, at the death on one spouse, enables the surviving spouse to be sole owner of joint property

Which of these liens has priority strictly according to time of creation?

Mechanics' liens, Mortgage liens

Fundamental characteristics of rights include which three of these?

Obligation of government to uphold or protect them. They are non-revocable. They are enduring or permanent.

Which of these items most likely is(are) personal property?

Patio furniture, A very large television, An oriental rug

Which of these items is (are) likely to be a fixture?

Pews that are custom designed for a house of worship, Standard wall-to-wall carpeting

Which of these liens always have the same, equal, senior priority?

Property tax lien, CDD lien, Assessment lien

Which of these land uses can be (and commonly is) based on an easement in gross?

Railroad, Irrigation ditch, Power line

A person who owns a residence as a life estate fails to have which of the basic rights that are elements of property?

Right of disposition

Ability to demolish and replace a structure on your land

Right of disposition

Freedom to sell your property when and for how much you choose

Right of disposition

Freedom to lock your car

Right of exclusive possession

Ability to grow and sell crops on your land

Right of use and enjoyment

Freedom to decorate your house as you choose

Right of use and enjoyment

If you own a condominium where there is a restriction on the color or character of window treatments (drapes or blinds) what aspect of property rights is being curtailed?

Right of use and enjoyment

Which two of these best demonstrate personal rights rather than property rights?

Right to post election campaign signs on your lawn. Right to invite a group into your home.

A vacant lot has existed in an old neighborhood as far back as anyone can remember. Over time the sequence of owners of an adjacent house have fenced it in and used it for a garden. Suddenly another adjacent owner on the opposite side of the lot finds a survey indicating that the lot was purchased by their great great grandfather nearly a century ago. By what aspect of rights must this claim be taken seriously?

Rights are enduring.

You own a single family home with a rather narrow space between your's and your neighbor's house. Your neighbor, who has complained about the narrow space, simply erects a privacy fence partially on your property without your permission. What fundamental characteristic of rights does this violate, if any?

Rights are non-revocable.

Which of these easements would be an easement appurtenant?

Sunlight easement requiring setback of adjacent buildings, Driveway right-of-way across an adjacent parcel

A ten year commercial lease conveys what real property interest?

Tenancy for years

Which of these ownership entities is a form of true co-ownership?

Tenancy in common

Tenancy in common

The default form of co-tenancy, virtually like individual ownership

Questions that arise in clarifying rights to water include

Who has the right to use the surface of a body of water? Who has the right to use groundwater? Who has the right to use the water itself? Who owns the land under a body of water? Who controls use of land under a body of water?

Characteristics of indirect co-ownership include that

a business entity is the actual owner of the property. co-owners hold shares in the business entity that actually owns the property.

Characteristics of an easement appurtenant include that

an easement appurtenant "runs with the land." one parcel receives a benefit at the expense of another other. It involves two adjacent parcels of land.

An example if an easement in gross is

an easement to remove minerals from a parcel.

Home owner associations and condominium associations can invoke a lien for owner assessments. By state law or by provision in the owner documents such a lien often is automatically subordinated to:

any first mortgage lien

Restrictive covenant for a subdivision can be enforced by

any owner of a parcel in the subdivision. any renter in the subdivision. any lender whose loan is secured by a parcel in the subdivision.

In true co-ownership of property, the owners

basically hold the same bundle of rights. cannot meaningfully partition their ownership into separate bundles of rights.

Forms of automatic marital co-ownership include

community property, elective share, dower/curtesy

Entities of indirect ownership by multiple owners include the

corporation, general partnership, limited partnership

Features of elective share include:

covers both real and personal property, commonly give the surviving spouse a 30% share, must be explicitly chosen with a certain time after death of the spouse

Easements vary greatly in the extent of ______ that they impose on the encumbered land.

disruption

An ancient common law concept

dower/curtesy

Conveys only life estates

dower/curtesy

Limited to real property only

dower/curtesy

In contrast to ownership of property by a corporation, in tenancy in common

each owner can separately mortgage or sell their portion of the property. every owner holds the same actual real property interest rather than shares in an owner entity. all co-owners are mutually liable for any liens on the property.

A modern statutorial creation

elective share

Includes both real and personal property

elective share

Provides for a fee simple interest

elective share

Characteristics of time-share or interval ownership include that

it commonly is divided into weekly units. it is mostly associated with resort properties. it may amount to a condominium interest, a leasehold, or a license.

Characteristics of dower/curtesy include that

it includes all real estate ever owned by the decedent spouse during the marriage. it creates a life estate for the surviving spouse. dower is the provision for a surviving wife and curtesy is the provision for a surviving husband.

True features of dower/curtesy are:

it is of common law, English heritage

The governing association of a condominium can do which of the following to its owners?

levy assessments, Set and enforce rules, impose liens

Ownership by tenancy in common, compared to a corporation,

often arises as a default form of co-ownership. Is real property rather than personal property.

The priority of a condominium association lien

often depends on state law.

A lien that always exists on every private property is the

property tax lien.

In true direct co-ownership the owners

share the same bundle of rights

When an owner disposes of an indirect co-ownership interest in real estate, the owner will be conveying to the new owner

shares in a business entity

The most versatile form of direct coownership is

tenancy in common

Your "interest" in real property refers to

the "bundle of rights" you hold.

The nature and specific characteristics of a condominium are defined in

the condominium declaration. the by-laws.

Characteristics of an easement in gross include that

the easement can be conveyed separately from any parcel affected. a single easement can affect many parcels. only servient (diminished) parcels are involved.

The reason a second mortgage lender is at more risk than a first mortgage lender is that in default

the first mortgage lender gets full satisfaction before the second mortgage lender get any.

An example of an easement appurtenant would be

the right of one parcel to restrict building height on an adjacent parcel.

Issues that arise in determining rights to minerals, oil and gas include

whether ownership of minerals involves ownership of the space containing them. whether oil and gas are treated as simply a form of minerals or as flowing substances.