Homework Session 1 Unit 3 - Interests in Real Estate (Scenarios)

A patient died in a nursing home. The deceased left no will and had no heirs. What happens to the deceased's her $250,000 estate? A. It escheats to the state or county. B. The nursing home gets to keep it. C. It will be split between the nursing home and the county. D. It can be paid over to the deceased's church.

A. The answer is - it escheats to the state or county. Because the patient died without a will and there are no heirs, the $250,000 becomes the property of the state or county.

Which of these must exist for an appurtenant easement to exist? A. Two adjacent parcels, different owners B. Two adjacent parcels, one owner C. Landlocked property that requires passage to the street D. Long-time unauthorized usage

A. The answer is - two adjacent parcels, different owners. An easement appurtenant must have two owners and two parcels of land. A landlocked parcel would require an easement by necessity; long-time unauthorized usage would lead to an easement by prescription.

A spouse dies, leaving real estate owned as separate property to the surviving spouse, but with the provision that when the surviving spouse dies, the real estate goes to a specified charity. The surviving spouse owns a bundle of rights but does not own the right to A. will the property. C. lease the property. B. sell the property. D. decorate the property.

A. The answer is - will the property. The surviving spouse owns a life estate, and she has the entire bundle of rights except the right to will the property.

The holder of a life estate is called A. an encumbrance. C. a remainderman. B. a life tenant. D. a successor.

B. The answer is - a life tenant. A life tenant is not a renter like a tenant associated with a lease. A life tenant is entitled to the rights of ownership and can benefit from both possession and ordinary use, just as if the individual were a fee simple owner, but only while the life tenant is still living.

For as long as anyone can remember, neighbor families have used a footpath to get to the river. Recently, the current owner of the footpath erected a fence across the path. Which of these easements might the neighbors claim would require the owner to remove the fence? A. Easement by necessity C. Easement in gross B. Easement by prescription D. Appurtenant easement

B. The answer is - easement by prescription. Long-time unauthorized usage may create legal rights leading to an easement by prescription. An easement in gross is a personal right, often used by utility companies. An easement by necessity could be imposed by court order to provide access to a landlocked property.

The state's authority to enact legislation to protect the public is passed through to municipalities and counties through A. police power. B. enabling acts. C. licensing laws. D. processing papers.

B. The answer is - enabling acts. The state passes police power to local counties and municipalities through enabling acts. Licensing laws are an example of police power.

A property owner conveyed a one-acre parcel of land to a preschool. The deed stated that the property was to be used only as a playground; the property owner reserved a right of reentry. What kind of estate has been granted? A. Leasehold B. Fee simple subject to a condition subsequent C. Fee simple absolute D. Curtesy

B. The answer is - fee simple subject to a condition subsequent. The property owner has granted a fee simple subject to a condition subsequent. If, at some point in the future, the land is not used as a playground, the former owner or the former owner's heirs may exercise the right of re-entry by retaking physical possession of the land.

A resident of Sunny Oaks owned two acres of land, sold one acre, and reserved an easement appurtenant for entrance and exit over that acre to reach the public road. The acre that was sold is A. capable of being cleared of the easement if the woman sells to a third party. B. the servient tenement. C. the dominant tenement. D. subject to an easement in gross.

B. The answer is - the servient tenement. The man's parcel is the dominant tenement and benefits from the easement. The easement runs over the property that was sold, the servient tenement.

A large undeveloped parcel of land on the side of a hill borders a road on its lower edge. The owner of the parcel sells the lower portion of the property to a buyer who builds a home on it. Several years later, the upper-portion of the property is sold to someone else. The upper portion of the property does not border any road. To gain access to the road, the owner of that property has a legally implied right to an easement A. by necessity. B. in gross. C. by prescription. D. by restriction.

A. The answer is - by necessity. An easement by necessity could be created by court order to permit legal access to the second property.

If the dominant estate merges with the servient estate, which of these is TRUE? A. The easement remains in effect for the entire parcel. B. The easement is suspended but cannot be terminated. C. The easement is terminated. D. The new owner must bring a suit seeking severance of the easement from the combined properties.

C. (note the word TRUE in the question) The answer is - the easement is terminated. If the owner of the dominant tenement also becomes owner of the servient tenement (or vice versa), the easement terminates. Because the same person owns both properties, there is no need for the easement to exist.

The homestead exemption in a town is $15,000. Four years ago, a resident purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the man's property is purchased for $60,000. If the resident has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption? A. $640 C. $15,000 B. $2,140 D. $16,500

C. The answer is - $15,000. The homestead exemption is $15,000. So, when the property is sold for $60,000, the mortgage of $35,000 is paid and $15,000 is reserved, leaving $10,000 for the credit card debt.

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of A. escheat. C. eminent domain. B. reverter. D. defeasance.

C. The answer is - eminent domain. The right of the state to acquire private property for public use is eminent domain. The court action is called condemnation. Property escheats back to the state when it becomes ownerless; that is, the owner dies leaving no heirs and no will.

What are deed restrictions? A. Public land restrictions B. Illegal land restrictions C. Private agreements affecting the use of the land D. Informal agreements between neighbors

C. The answer is - private agreements affecting the use of the land. Deed restrictions are private agreements written into a deed and are privately enforced. Examples of public restrictions include zoning and building codes.

Every workday for the past 20 years, an accountant has paid to park in a specific place in a nearby parking garage. Today the accountant receives a notice that the garage will be replaced by an office building. Can the property owners do this after all the years the accountant parked there?

C. The answer is - yes, because the accountant only had a license. A license is a personal right to enter the property for a specific purpose. There is no buildup of rights.

The state requires enough land to build a four-lane highway. For the state to acquire the needed land from a property owner, the state must do all of these EXCEPT A. demonstrate that the taking of the land is for the public good. B. pay a fair and just compensation to the owner. C. allow the property owner the right to appeal any decision. D. reimburse the property owner for the amount that the property owner paid for the land.

D. (note the word EXCEPT in the question) The answer is - reimburse the property owner for the amount that the property owner paid for the land. To acquire private property through eminent domain, the state must prove that the purchase is for the public good, pay a fair price, and allow the property owner full rights to appeal. The price may or may not reflect what the owner paid for the property.

A property owner gave land to a school "so long as the land is used for only academic and recreational purposes." The ownership interest granted here is called A. an easement by prescription. B. an encumbrance. C. a bundle of rights. D. a fee simple determinable.

D. The answer is - a fee simple determinable. The terms so long as, while, and during generally indicate creation of a fee simple determinable interest. The school obtains the full bundle of rights of a property owner, but one of the "sticks" in that bundle has a special feature.

There is notice in the public record of pending litigation affecting the title to a property. The notice reflects which of the following? A. Fee simple determinable B. Police power C. An encroachment D. A lis pendens

D. The answer is - a lis pendens. A lis pendens is a notice filed in the public record affecting the title to property or a claimed ownership interest in it.

In some states, a husband could not sell his property unless his wife also signed the deed. The wife's interest was called A. personal property. C. curtesy. B. homestead. D. dower.

D. The answer is - dower. Historically, a wife's interest in her deceased husband's property was dower, a husband's interest was curtesy. Protection of some part of the family home is called homestead.

The electric company has the right to extend its wires over 50 parcels of land. What right does the electric company have? A. Appurtenant easement C. Easement by prescription B. Easement by necessity D. Easement in gross

D. The answer is - easement in gross. Commercial easements such as this are called easements in gross. There are not attached or appurtenant to a property right.

Which of these is defined as a claim, charge, or liability that attaches to real estate? A. Lien C. Deed restriction B. Easement D. Encumbrance

D. The answer is - encumbrance. An encumbrance is any claim, charge, or liability that attaches to real estate. Liens, easements, and deed restrictions are all types of encumbrances.