Property Ownership

Which phrase best explains why two physically similar parcels of real estate might have very different economic values?

(land characteristics and property descriptions) "Location, location, location" refers to area preference, or situs. Situs is an economic term that refers to people's preference for one area over another, even if it's a similar property. The correct answer is: Location, location, location

One house in a large neighborhood stands out because, compared to the others, it is not well maintained. Which concept best explains this single home's impact on the surrounding community?

(land characteristics and property descriptions) A poorly maintained home in a large, well maintained community may actually increase in value due to the concept of immobility--its value is directly affected by its external surroundings. One home is not likely to decrease property values for all other homes in a large community. The correct answer is: The poorly maintained home value may rise due to immobility

A datum is most likely to be:

A point on the surface of a parcel

Which real property right automatically conveys?

A. Surface rights B. Subsurface rights C. Control D. All of the above Feedback Your answer is correct. (classes of property) These are all property rights derived from the "bundle" of legal rights.

To have any legal affect, plats drawn from the lot, block, and subdivision method must:

All the above (Under the lot, block, and subdivision method, the size and location of each block and lot is shown on a plat, which serves as the basic reference point for all subdivision lots. In order to have any legal affect, all plats must be recorded in the public recorder's office, clerk's office, or land records of the locality in which it is situated. Plats must be pre-approved by the governmental section that is in charge of zoning before they can be recorded.)

A prospective buyer wants the seller to include an ornate flagpole attached to the front porch of the house. What should the agent do to best ensure the flagpole conveys?

Include the flag pole in the offer to purchase

An appurtenant easement may be terminated by:

Merger of the dominant and servient estates

What would most accurately describe an irregularly-shaped parcel of land?

Metes and bounds

Which of the following situations is an example of a tenancy at sufferance?

The correct answer is: A farmer who refuses to cede possession upon lease expiration in order to harvest his crops A tenant "at sufferance" is one who remains in possession of leased property after the lease expires. While the farmer retains title to his crops (because they are fructus industriales), he has no rights in the leased premises. A tenant that violates the conditions of her lease before it expires has lawful possession unless or until she is evicted.

Agnes decides to impose a restrictive covenant (a negative covenant or deed restriction) that will apply to any future owners of the property she currently possesses. Agnes must have:

The correct answer is: A fee simple estate (types of ownership) Only the holder of a fee simple estate may encumber the property with a deed restriction. This is one of the sticks (to encumber) included in her bundle of legal rights.

A couple is buying a house with an oddly shaped living room. The seller built a custom-made bookcase to specifically fit into the room. Absent an agreement, the bookcase is most likely:

The correct answer is: A fixture (classes of property) In determining whether an item is a fixture, consider: the method of the object's attachment, whether the object demonstrates adaptation to a unique feature, whether the parties have reached an agreement regarding the object, and the relationship of the parties. In this case, the object was specifically built to fit the unique layout of the room (an adaptation). Therefore, absent an agreement to the contrary, the bookcase is most likely to be a fixture.

Which statement about encumbrances is correct?

The correct answer is: A lease is an example of an encumbrance (encumbrances) An encumbrance is anything that affects the title to real property, which could diminish its value. There are some positive encumbrances, but the limitation dimishes the owner's rights in the property. Encumbrances can be created by either individual or government action. Finally, a lease is an example of an encumbrance.

Which of the following choices is NOT a freehold estate?

The correct answer is: A lease that does not require rent payments (types of ownership) Life estates and present estates are freeholds. Regardless of the term, all leases are leaseholds (non-freehold estates).

Zorba owns property and gladly allows his friend, Young, to use it. To best protect Zorba's interest, he should give Young:

The correct answer is: A license A license is permission to use the land (may be an oral agreement), which is revocable at will. An easement in gross is similar to a license, but must be it written, creates an interest in land, and cannot be revoked outside of the agreed upon termination. A license provides greater flexibility for Zorba, so this would better protect his interests.

Property taxes on cooperative units are assessed in the form of:

The correct answer is: A single tax bill, prorated among individual units (types of ownership) The tax bill is issued to the corporation or owner entity, which is then prorated among the proprietary tenants.

A lease that contains no mention of an occupancy period is most likely to be:

The correct answer is: A tenancy at sufferance A lease may be valid without a specified duration. A month-to-month lease does specify a period of occupancy--at least one month. A lease only falls under the statute of frauds if it is for one year or more. Finally, a tenancy at sufferance exists where someone remains in possession of the rental property after their lease expires, against the wishes of the landlord. Therefore, a tenancy at sufferance specifies no period of occupancy.

The force of water on land is known as:

The correct answer is: Accretion Accretion occurs where natural forces, like water, cause land to move from one parcel to another. Riparian and littoral refer to intangible interests in the use of water.

The most predictable element of severance is:

The correct answer is: Agreement You should avoid doubt by putting the severance agreement in writing. A written agreement is the best way to ensure questionable items (like fixtures) transfer.

Which of the following properties may be classified as commercial? A. Apartment buildings B. Vacant lots C. Parking lots D. All of the above

The correct answer is: All of the above (classes of property) Commercial property includes apartment buildings, parking lots, and vacant lots or tracts of land that are suitable and available for a commercial construction.

The right or privilege that one has to use the property of another is: A. A license B. A lease C. An easement D. All of the above

The correct answer is: All of the above (encumbrances) An easement, a lease, and a license create a right to use someone else's property. However, an easement creates a more permanent and secure interest than either a lease or a license.

Mr. Foster owns an automobile, a boat, a house, and a farm. He defaults on the mortgage covering his house. If a judgment lien is entered, which of the following properties could be subject to the judgment lien?

The correct answer is: All of the above (encumbrances) Judgment liens are general liens, which means that they attach to both the real and personal property of a debtor. However, judgment liens only apply to property located in the jurisdiction in which the lien is recorded. A. Car B. Boat C. Home D. All of the above

What is not a valid method to describe real property?

The correct answer is: All of the above are valid methods A street address is NOT a legal method to describe real property because the street name is subject to change. However, while not legally enforceable in a deed, a street address is sufficient to identify property innformally. Note that the question does not ask you to identify LEGAL methods of describing property.

Mrs. Franklin is buying property from Mr. Akin. In order to get to her property, it is necessary to cross property owned by Mr. Travis. In the past, Mr. Travis had granted permission to Mr. Akin for this purpose. Mrs. Franklin wants to protect this privilege. What would best serve Mrs. Franklin's interests?

The correct answer is: An appurtenant easement Mrs. Franklin should ask for an easement from Mr. Travis. The easement could be an appurtenant easement or an easement in gross. Both would give Mrs. Franklin the RIGHT to cross the property. However, an appurtenant easement would transfer to other property owners and survive the death of either owner. An easement in gross would not serve Mrs. Franklin as well as an easement appurtenant because the easement in gross would not survive the death of Mr. Travis. A license would not serve Mrs. Franklin well because it is revocable at the will of Mr. Travis. Therefore, an easement appurtenant would BEST serve Mrs. Franklin.

Which of the following items is not personal property? A. A lease B. A mortgage that secures personal property C. Partnership interests D. An easement

The correct answer is: An easement (classes of property) Leases, mortgages on personal property, and partnership interests are all personal property. Of the listed choices, only an easement is NOT personal property.

Jones owns two tracts of land. One tract has lakefront property. Jones sells the other tract to Smith and gives him the right to cross his property in order to reach the lake. Without the right to cross Jones' property, there is no other way for Smith to reach the lake. Smith's right could be:

The correct answer is: An easement in gross (encumbrances) Smith could either have an appurtenant easement or an easement in gross. However, the question does not specify that the properties are adjoining or that Smith owns a tract without access (i.e. a landlocked piece of land). As such, there is no indication of any necessity. Based on the information given, an easement in gross is the best answer. Easements in gross are personal and will terminate if the servient owner sells his lot or if either party dies.

Which definition is described as a trespass on an improvement?

The correct answer is: An encroachment (encumbrances) To trespass is to be somewhere without the owner's permission. If an improvement encroaches over the property line, it is a trespass.

A condominium could be which of the following descriptions? A. Multi-story building B. Townhouse community C. Industrial office park D. Any of the above

The correct answer is: Any of the above (types of ownership) We commonly think of a condo as an apartment-style building. However, condominium type ownership can be created anywhere, for any type of property. Some residential neighborhoods (consisting of only single-family homes) are under condominium rules and regulations. Each person owns their own home, but shares an interest in common elements like playgrounds, swimming pools, etc. Industrial property COULD be created as a condominium; the tenants would own their own buildings and share ownership in drive ways and parking facilities.

Three people inherit unequal shares of a single piece of property. How could they hold ownership?

The correct answer is: As tenants-in-common First, recognize that all 3 inherit a single piece of property. Now, recognize that the problem does not state that they received an equal interest, which is mandatory for a joint tenancy. Ownership in severalty is ownership by one person only. The law provides that when there is co-ownership (more than one owner), title will default to tenants-in-common unless the deed is specific as to some other form of ownership.

A legal land description must:

The correct answer is: Be sufficient to identify the property (land characteristics and property descriptions) A legal land description need only be sufficient to identify the property.

Which item is personal property? A. Apartment lease B. Business reputation C. Tool shed attached to the brick foundation D. Both A and B

The correct answer is: Both A and B (classes of property) Leases and business reputation are both intangible personal property.

Land moves by: A. Accretion B. Erosion C. Both A and B D. None of the above because land is immobile

The correct answer is: Both A and B (land characteristics & property descriptions) Accretion happens when soil is washed away by flowing water and deposited elsewhere. Erosion is a natural process that causes a portion of land (soil) to move. Both cause a portion of land to move.

A woman owns an apartment building that is losing money. Her accountant tells her that she could make a profit if she sells the apartment units as condominiums. Which document must she record or provide? A. Condominium instruments B. PUD C. POS D. Both A and C

The correct answer is: Both A and C (types of ownership) While state law provides the specifics, prospective condominium developers must record condominium instruments with a local authority and provide prospective buyers with a Public Offering Statement (POS). A PUD is a planned unit development. A PUD is similar in some ways to a condominium development, but a PUD is not the name of any document that must be filed in order to develop a condominium.

Smith and Brown own abutting property that borders a river. Over the years, soil from Smith's riverbank is washed onto Brown's riverbank. Who owns the soil that was washed from Smith's riverbank to Brown's?

The correct answer is: Brown Accretion occurs where natural forces such as water cause land to move from one parcel to another. Once moved, it belongs to the receiving property owner.

Real property can be changed into personal property:

The correct answer is: By severance Severance describes the analysis to determine whether a fixture may be removed from real property. Appropriation refers to water law doctrine. Capture is a red herring. While land is generally indestructible, other types of real property (improvements/fixtures) can change from real to personal property.

The rights of a condominium owner are defined by the:

The correct answer is: Bylaws and condominium declaration (types of ownership) Condos are governed by their bylaws and their declaration documents.

A metes and bounds survey will most likely identify:

The correct answer is: Certain encumbrances A land survey documents the physical characteristics and boundaries of real property. Some encumbrances (like liens and other clouds on title) cannot be discovered by physically inspecting property--they are best discovered by examining title records. However, an encroachment is also an encumbrance, which is a physical intrusion onto land (tresspass or nuisance). A land survey could identify an encroachment like a fence or an out-building. Therefore, of the choices presented, a metes and bounds survey is most likely to discover certain emcumbrances (encroachments).

A person has fee simple ownership of a unit in a multi-story building. She is also required to pay property taxes on that unit. Which type of common interest ownership could the owner have?

The correct answer is: Condominium ownership (types of ownership) Of the choices, only condominium ownership includes a fee simple interest in the individual unit. A condominium also includes a tenancy in common in the common areas, not a joint tenancy. The owner is required to pay a mortgage payment, taxes, insurance, etc. on her individual unit (and usually, a maintenance fee for common amenities). Meanwhile, a proprietary lease is associated with a cooperative, and the owner doesn't own her unit in fee simple

If a man is considered a "proprietary tenant," he is most likely owns interest in which of the following types of property?

The correct answer is: Cooperative apartment A proprietary tenant is a person who lives in a cooperative apartment. To enter into this type of ownership, the purchaser buys an agreed upon amount of stock in the cooperative (worth the sales price of his particular unit). In exchange, that person is given a proprietary lease on his apartment.

Which of the following items is not an improvement of land?

The correct answer is: Corn crop (land characteristics and property descriptions) Improvements refer to the development of land through the construction of valuable additions. Crops are not improvements since they do not improve the value of land (as emblements or fructus industriales, they are owned by the farmer).

A property owner may:

The correct answer is: Dispose of property, but not destroy it The bundle of legal rights that accompany property ownership are: possess, control, enjoy, exclude, encumber, and dispose. Land cannot be destroyed. Therefore, of the choices given, the best answer is that a property owner cannot destroy the property.

How can an appurtenant easement be terminated?

The correct answer is: Either A or C An appurtenant easement is one of two primary types of easements. The principal difference depends upon whether the easement attaches to a particular person (easement in gross) or a particular parcel of land (appurtenant easement). Either can be created in a variety of ways (express grant, express reservation, necessity, implication, prescription, agreement, or condemnation). Each can also be terminated in a variety of ways (lack of necessity, merger, release, abandonment, destruction, court order). Therefore, the question is tricky, but technically correct. If the appurtenant easement were created by necessity, choice "C" could be correct. If the dominant estate released the easement, choice "A" could be correct. You must always select the "best" answer. Do this by eliminating the choices that CANNOT be true. The only answer that CANNOT be true is "B".

If a husband and wife own property as tenants-in-common, which of the following statements is true?

The correct answer is: Either may dispose of their own interest without approval of the other (types of ownership) Any tenant-in-common may dispose of his/her own interest without obtaining permission from the other owners. The fact that the owners are husband and wife is irrelevant.

Which of the following items would be disclosed by a metes and bounds survey?

The correct answer is: Encroachments The survey should definitely reveal any physical encroachments. Meanwhile, easements may not be obvious and would have to be checked in the county records. Once this is checked, they are indicated on the plat that the surveyor prepares. Depreciation is not something the surveyor considers, nor does he consider the marketability of the property. A surveyor is only concerned with the physical characteristics of the property itself.

What would most likely to be included in the sale of real property?

The correct answer is: Enjoyment (classes of property) Enjoyment refers to one of the legal rights that ALWAYS accompanies property ownership. An easement may not always convey (ex. if it is an easement in gross). Trade fixtures are personal property of the tenant for the operation of business, and will not convey so long as they are timely removed. A kitchen sink could be either a fixture or a trade fixture. As a trade fixture, it would not automatically convey if it were timely removed. As a fixture, it would not automatically convey if there were an agreement to the contrary or severance was otherwise possible. Therefore, enjoyment is the best answer.

A person who rents a property from June 1st to June 30th of the same year most likely has a(n):

The correct answer is: Estate for years (types of ownership) Even though term is only one month, this lease has a definite beginning and end. Therefore, this is an estate for years.

Farmer Pete leases land to grow wheat. In April, Farmer Pete plants his crop, expecting to harvest in October. However, just before harvest time, his landlord successfully evicts him for nonpayment of rent. In October, Farmer Pete attempts to harvest his wheat. The wheat belongs to:

The correct answer is: Farmer Pete, because it is personal property (land characteristics and property descriptions) Growing crops are known as fructus industriales, or emblements. Emblements remain personal property even before harvest, despite the fact that they are attached to the land. Landlords cannot deny tenants the right to enter and harvest crops after a lease terminates.

In relation to lien priority, which of the following statements is incorrect?

The correct answer is: Federal income tax liens have priority over all other liens Real estate tax liens have priority over all others. Federal and State income tax liens must get in line, just like the others. A deed MUST be recorded before property can be pledged. On a related note, remember that property tax liens are specific and not general liens.

The original owner of a condominium unit holds which of the following interests?

The correct answer is: Fee simple absolute in the unit All original condominium owners have fee simple absolute title (ownership) in their individual living unit. Consistent with the condominium form of ownership, all original and subsequent condominium owners have a tenancy in common in the common areas of the project.

Mrs. Heckler bought a unit in a condominium apartment complex directly from the developer. She most likely received a:

The correct answer is: Fee simple absolute interest in her unit Because Mrs. Heckler purchased directly from the developer, we know with reasonable certainty that she is an initial purchaser. As an initial purchaser, we know that Mrs. Heckler received a fee simple absolute interest in her condominium unit and an interest in the common elements (as a tenant-in-common) with all the other unit owners.

The owner of a fee simple absolute estate leaves a will, which only specifies that he will leave a life estate to one party and a remainder estate to another. Upon the death of the life tenant, the remainderman could have a:

The correct answer is: Fee simple estate (types of ownership) The question states that the grantor has a fee simple absolute estate and that his will specifies only two things--that one person gets a life estate and another gets a remainder. This fee simple estate will pass to the remainderman upon the death of the life estate holder because: (i) the life tenant receives any interest that the grantor had; (ii) the remainderman will eventually receive any interest that the life tenant has; and (iii) there are no restrictions specified on the remainder. If the grantor had owned a lesser estate, or decided to place restrictions on the remainder, the estate could have been a fee simple determinable.

What is NOT a physical characteristic of land?

The correct answer is: Fixity (land characteristics & property descriptions) Fixity, or investment permanence, is an economic characteristic of land. Heterogeneity (uniqueness), indestructibility, and immobility are physical characteristics of land.

An adequate metes and bounds description must have all of the following inclusions, EXCEPT:

The correct answer is: Four sides Property does not need to be shaped like a square (or similar to a square) in a metes and bounds description. It can be any shape, with more or less than four sides.

Which of the following is most likely to transfer with real property?

The correct answer is: Fructus naturales (classes of property) Of the items listed, fructus naturales is most likely to transfer with real property. Fructus naturales refers to landscaping, like trees and bushes. Trade fixtures and fructus industriales do not usually transfer with real property. Fructus industriales, or emblements, refers to growing crops. Trade fixtures are installed by a tenant in connection with his trade or business, and they do not convey provided they are timely removed.

Large blocks of land are located in a rural area of a Midwestern state. This would most likely be described by:

The correct answer is: Government rectangular survey (land characteristics and property descriptions) The government survey method, or rectangular survey, is used in more than 30 states--mostly in the mid-west.

A land description that reads "T4S, R3E" is most likely based on the:

The correct answer is: Government survey method The rectangular method (government survey) uses range lines, which are north-south lines in a township. Townships are located by their distance north or south of the base line, and east or west of the primary meridian. Government survey descriptions read like: "Township 4 South, Range 3 East, or T4S, R3E."

The land characteristic that is most likely the basis for a specific performance lawsuit is:

The correct answer is: Heterogeneity (land characteristics and property descriptions) Heterogeneity, or uniqueness, is the legal basis for specific performance lawsuits (lawsuits that seek to force a sale of land as agreed).

Jones, Smith, and Williams own property as joint tenants. Which of the following statements must be true?

The correct answer is: If Jones and Smith die, Williams will own the property in severalty Property held by joint tenants includes rights of survivorship. That is, only the surviving joint tenants continue to own the property. If only one joint tenant remains alive, he owns the property in severalty.

Harry Homeowner takes pride in his property and keeps it well maintained (inside and outside of the home). However, Harry's neighbors are not so conscientious. What concept best explains why Harry's home is losing value?

The correct answer is: Immobility We do not know if Harry's location is preferential or not. However, due to immobility, the value of a piece of real property is directly affected by its external surroundings. Therefore, a well maintained home will lose value if the neighborhood around it declines.

Mary purchased the right to use an apartment for 2 weeks every year. This is an example of:

The correct answer is: Interval ownership Interval ownership (time-share) involves ownership for only a particular time period. Purchasers own the property as tenants-in-common, and rotate possession (use) of the property as agreed upon previously. Time share ownership is most commonly seen in vacation properties.

A condominium association can most likely perform all of the following actions, EXCEPT:

The correct answer is: Interview prospective buyers The condominium association usually elects a Board of Directors to run the condominium. Prospective buyers purchase condominiums directly from individual owners, usually without being interviewed by the condominium association.

Former personal property that automatically conveys:

The correct answer is: Is a fixture When personal property is affixed or attached to land, it can become real property that will convey with the land. This is referred to as a fixture. Trade fixtures are also personal property that can be attached to land. However, trade fixtures are installed by a tenant in connection with her trade or business. Trade fixtures do not become real property, so long as they are timely removed. Chattel is another name for personal property, which may or may not transfer with land.

A building supplier delivers bricks to a job site on July 1st for the construction of a patio. The contractor finished the patio on July 30th and was paid. The contractor files bankruptcy on September 1st. On September 5th, the building supply company filed a mechanics lien against the owner of the property. What is the effective date of the lien?

The correct answer is: July 1st Regardless of when the notice is filed, a mechanics lien takes priority based on the date that the materials were delivered or the date that the work was started to improve the real property.

All of the following statements are true about land, except:

The correct answer is: Land may be depreciated The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. Therefore, it is false to say that land may be depreciated.

How can the extent of an encroachment always be discovered?

The correct answer is: Land survey (encumbrances) A land survey (performed by a professional surveyor) documents property boundaries. A competent surveyor will find and document any physical encroachments.

Sam dies and leaves a valid will. Sam leaves the family farm to his children after the death of his wife, Jane. Several years after Sam's death, Jane sells her interest to Larry. Which of the following statements is true?

The correct answer is: Larry has a life estate pur autre vie (types of ownership) Jane has a life estate and the children are remainderman. Jane may only sell the interest she has. Thus, when she sells the property, the buyer's interest is the same as Jane's--a life estate measured by Jane's life, also known as a life estate pur autre vie.

Which legal instrument could convey a tenancy for years?

The correct answer is: Lease A lease is the instrument of conveyance because a tenancy for years (or estate for years) is a type of leasehold.

The land description that uses a recorded subdivision plat is the: Select one:

The correct answer is: Lot and block system (land characteristics and property descriptions) Recorded subdivision plats are used with the lot, block, and subdivision method of land description.

Three people own a piece of property as tenants-in-common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell:

The correct answer is: May file suit for partition (types of ownership) Joint tenants and tenants-in-common may file suit for partition (a request for a court to divide concurrently owned property). If indivisible, a court might order the sale of the property and then divide the proceeds.

Fred bought a new boat and hired a contractor to build a dock on his lakefront property. Fred did not pay the contractor. In an attempt to get paid, the contractor may file a:

The correct answer is: Mechanics lien against the property (encumbrances) The contractor improved real property by building a dock, and is therefore entitled to file a mechanics lien against the improved property. He cannot file a mechanics lien on the boat because it is personal property. He cannot file a general lien because mechanics liens are specific.

What type of legal description will most accurately describe an irregularly shaped parcel of land?

The correct answer is: Metes and bounds (land characteristics and property descriptions) Metes and bounds is best suited to describe irregularly shaped parcels of land, as one can easily navigate any shape from the point of beginning (POB).

Bobby the Buyer purchases a lot for his dream house. Since he is careful to respect the property boundaries, Bobby inspects an old description of his lot from the city archives. In part, the description states: "Starting from the Tulip Tree on the northwest corner of the Smith Farm, proceed directly due west to the banks of Jeremy's Run. Proceed south to the two Oak trees on the Jeremy Farm. Proceed east to the two large boulders. Finally, proceed north back to the Tulip Tree." This method of land description is:

The correct answer is: Metes and bounds The use of natural monuments is to rely upon naturally occurring physical features of the land, such as those presented in the question. The method of property description that uses monuments (bounds) is the Metes and Bounds method. Therefore, Option A is the best answer.

Boundary markers of land (natural or man-made) are best known as:

The correct answer is: Monuments A monument can be a natural object like a tree, rock, or river. It can also be a permanent, artificial marker like a surveyor's benchmark. However, when used to define the area of a parcel of land, the best choice is "monument" since it covers natural AND man-made boundary markers.

Lionel rents an apartment under a three-year lease. After the first six months, the landlord sells the building. Lionel:

The correct answer is: Need not do anything (types of ownership) The new owner owns the property subject to the existing lease. As such, he or she must honor the rental period and may not significantly alter the terms. Since the lease is Lionel's personal property, he need not do anything.

Land is insurable primarily because of its: A. Uniqueness B. Indestructibility C. Improvement D. None of the above

The correct answer is: None of the above (land characteristics and property descriptions) The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. Therefore, the question states a negative and none of the answers are true.

What is the best description of ownership in severalty?

The correct answer is: One person owns several pieces of real property (types of ownership) When one person alone owns the property, it is owned in severalty. This means that ownersip is severed (separate) from all others.

The right of one party to possess and use real property exclusive of others is:

The correct answer is: Ownership Ownership is the right to possess and use property exclusive of others. This is a textbook definition of the term.

Several people hold property as tenants-in-common. One of the tenants dies. His interest in the property will:

The correct answer is: Pass to his heirs or devisees, if any Upon the death of a tenant-in-common, that interest in the property will pass to his heirs or devisees. An heir is a person that receives property from someone who died without a will (intestate). State laws determine who is a rightful heir and how much they are entitled to (if anything at all). A devisee is a person that receives property from someone who died with a will, which specifically indicates that the person in question will receive said property. Title passes to the other owners when there is joint tenancy, NOT with a tenancy in common.

The unity that exists in both a tenancy in common and a joint tenancy is:

The correct answer is: Possession The "right" of possession is common to both forms of ownership. For joint tenancy to exist, each owner must acquire title from the same source, at the same time, and each owner must have the same percentage of interest. With a tenancy in common, there may be different interests and different sources.

A cooperative owner has exclusive use of her unit by reason of:

The correct answer is: Property lease Cooperatives are a form of ownership composed of single units in a multi-unit development. The title to land and improvements is held by a business entity (corporation). A purchaser receives stock in the business entity and takes a proprietary lease, which provides for exclusive use of a specified unit.

Which of the following items is most likely to be severed?

The correct answer is: Rail fence (classes of property) Severance is the act of removing a fixture. A fixture is an item of real property that was previously considered as personal property. The fence was personal property before it was erected, and became real property when set in the ground. Garden tractors are personal property, but they are not affixed to land. A commercial cooler is real property, but if it is affixed to land, it will most likely be a trade fixture (severance does not apply to trade fixtures). Because only fixtures may be severed, "rail fence" is the best answer.

Industrial property includes all of the following uses except:

The correct answer is: Ranches Note that industrial property includes mines, warehouses, plants, factories, utilities, and vacant land that is suitable for industrial development. A ranch is better classified as agricultural property.

Tommy the Tenant takes over a tattoo parlor from an existing tenant. The parlor came with a comfortable dentist chair, which was perfect for people to sit on while getting their tattoo. One day, the chair breaks. Tommy installs a new dentist chair that he picked up at a flea market. The new chair is:

The correct answer is: Real property, regardless of when it is removed (land characteristics and property descriptions) This one is tricky. The issue is whether the chair is a trade fixture or a replacement fixture. Replacement fixtures are improvements that are installed by a tenant to replace worn out items that were already in place before the start of the lease. Replacement fixtures are classified as real property and belong to the owner. Because Tommy is merely replacing the chair. it is not a trade fixture, but merely a replacement fixture. Therefore, the chair is real property regardless of when or if it is removed (and Tommy cannot remove it without the owner's permission).

Which method of legally property description relies on range lines?

The correct answer is: Rectangular The rectangular method (government survey) uses range lines, which are north-south lines in a township.

If the property title is set to pass to someone other than the grantor upon termination of an estate, the interest held by the person who will receive the property is:

The correct answer is: Remainder If the interest given goes back to the grantor, then the grantor's interest is reversionary. Meanwhile, if the interest goes to someone else, the interest is a remainder estate

Mr. and Mrs. Jones sold their home to a church, but retained the right to occupy the property as long as they lived. The interest of the church is that of a:

The correct answer is: Remainder estate (types of ownership) Mr. and Mrs. Jones deeded their home to the church, but reserved a life estate for themselves. Therefore, the church has a future estate and the Jones' are life tenants. Future estates include both remainder estates and reversion estates. A reversion estate is created where the grantor conveys less than a fee simple estate and retains a future interest for herself. A remainder estate is created where the grantor conveys less than a fee simple estate (here, the grantor conveyed a full fee simple) and creates a future interest for a third party.

Jean transfers a fee simple interest in property to her daughter, Lisa, but reserves a life estate for herself. During Jean's lifetime, Lisa holds a:

The correct answer is: Remainder interest Lisa holds a remainder interest in the property until Jean dies. Then, Lisa will own the property in fee simple

Which of the following circumstances would diminish a fee simple estate?

The correct answer is: Rental of the property (types of ownership) If the owner dies or sells property, he has nothing to diminish. If the owner rents his property, he gives up his right of possession, thereby reducing his rights of ownership.

A landlord's right to re-enter or regain possession of the premises upon expiration of a lease is known as:

The correct answer is: Reversion (types of ownership) When the landlord leased the property, he gave up his right of possession. Upon termination of the lease agreement, the right of possession REVERTS to the landlord.

Residential property may be composed of:

The correct answer is: Single-family homes and cooperatives Residential property is primarily composed of single-family homes, but can include smaller multi-family units (like condominiums and cooperatives).

All of the following terms are physical characteristics of land except:

The correct answer is: Situs Situs is an economic characteristic of land. Heterogeneity refers to uniqueness, which is a physical characteristic of land.

All of the following choices are considered as legal descriptions of real property EXCEPT: A. Lot and block B. Metes and bounds C. Street address D. Government survey

The correct answer is: Street address The street address is a valid method to describe property in documents like sales contracts. However, a street address is never a valid LEGAL description.

What is NOT considered to be a legal description of property?

The correct answer is: Taxpayer federal ID number (land characteristics and property descriptions) All choices are valid methods of legal description, except for a taxpayer's federal identification number.

A property has three owners. These parties own 10%, 20%, and 70% interest, respectively. What type of ownership do they have?

The correct answer is: Tenancy in common (types of ownership) A joint tenancy requires that each tenant have a unity of interest (an identical interest in the property). A tenancy in common does not contain a unity of interest (which allows each tenant to have a different amount of interest). A tenancy by the entireties ONLY applies to a husband and wife (which you cannot legally have with three people). Severalty refers to sole ownership. Therefore, of the choices, the owner must have a tenancy in common.

A group intends to buy real property jointly, as follows: Person A contributes $11,000; Person B, $10,000; Person C, $5,000; and Person D, $6,000. Each desires to protect their heirs' share of the property. How could they take title?

The correct answer is: Tenancy-in-Common

A person enters into a lease agreement for 1 year. At the end of a year, the lease expires, but the tenant does not vacate the property. The tenant would be considered a:

The correct answer is: Tenant at sufferance, because the tenant is breaking the law A tenant at sufference is a person who remains on the property after his lease expires. The tenant at sufferance only exists where a tenant's lawful rights to occupy the premises have expired. This estate is the lowest and most encumbered estate that exists.

Of the terms listed below, which do NOT fit together?

The correct answer is: Testate --- Escheat All items match except "testate" and "escheat." The term testate means that someone died with a will. The term escheat describes the government power to receive property where the owner dies without a will and without any lawful heirs. A. Survivorship --- Joint tenancy B. Fee simple --- Forever C. Testate --- Escheat D. Tenants-in-Common --- Undivided interest

What is NOT true about metes and bounds?

The correct answer is: The distances shown in the deed will prevail over the actual distances measured (land characteristics and property descriptions) Note that if there is a difference between the distances shown in the deed and the actual distances measured by survey, the data in the survey will prevail over the data contained in the deed.

Mary has a life estate and her daughter has been named as the remainderman. Mary leases the property to Susan for 5 years. One year later, Mary dies. Mary's daughter serves notice to Susan to vacate the property. Which of the following statements is correct?

The correct answer is: The lease was valid only during Mary's lifetime because it was one of the sticks in the bundle (types of ownership) The life tenant (Mary) only has an interest in the property during her lifetime. However, she can convey a lesser interest because property ownership always carries certain rights (remember the bundle of legal rights--possess, control, enjoy, exclude, encumber, dispose). Any interest that Mary conveys will terminate upon her death because she cannot convey an interest greater than what she actually holds. While the lease is personal property, it is limited by Mary's life estate. In addition, Mary cannot commit waste, but leasing the premises is not considered waste. Finally, because the leasehold is for longer than one year, it must be written according to the statute of frauds. However, the facts do not indicate that the lease was not in writing. Therefore, Choice C is the best choice.

A tenant and landlord enter into a six month lease on July 1, 2016, to expire on December 31, 2016. Which of the following statements is correct?

The correct answer is: The lease will terminate on December 31, 2016 (types of ownership) This question describes an estate for years because there is a definite beginning and ending date. Estates for years do not require any notice to terminate because the end is already specified. Therefore, the lease will terminate on December 31, 2016

When a metes and bounds survey is used to describe property, the word "metes" refers to:

The correct answer is: The length in inches, feet, or yards of a property line (land characteristics & property descriptions) Metes is the length of a property line in inches, feet, yards, rods, or any linear measurement. Bounds are the monuments used to identify the boundary of the property.

Harry hired a contractor to paint the interior and exterior of his rental property. Harry did not pay, and the contractor filed a mechanics lien. Which of the following statements is true regarding the lien?

The correct answer is: The lien only applies to Harry's rental property (encumbrances) A mechanics lien only applies to the real property that was improved (in this instance, painted). Further, the lien can only apply to the cost of materials and labor.

Zorba leases a restaurant. He installs ovens, booths, and counters. Which of the following statements is true?

The correct answer is: The ovens, booths, and counters can be removed by Zorba at any time before Zorba's lease expires Items used in a trade are trade fixtures, and are the personal property of the tenant regardless of whether they are attached to land. They may be removed before the lease expires, but any damage to the real property caused by the removal must be repaired. If not removed before expiration of the lease, they become the property of the owner.

Dave had a bad year. In February, he defaulted on his mortgage. In March, a carpenter built a deck on Dave's house. In April, that carpenter secured a mechanic's lien for work and materials since Dave wasn't able to pay his bill. In June, a judge signed a judgment lien against Dave and all of his real and personal property. Finally, Dave realized that he forgot to pay his property taxes, which should have been due in August. Which of the following liens has priority after a court-ordered foreclosure of Dave's home?

The correct answer is: The real estate tax lien Real estate tax liens have priority over all other liens, including mortgages.

A husband and wife own property as tenants by the entirety. The husband dies, leaving all his property to their son. Which of the following statements is true?

The correct answer is: The wife owns the property in severalty. Tenancy by the entireties is a form of joint ownership with rights of survivorship. When the husband dies, he CANNOT will his portion to his son; it automatically goes to his wife.

Real property does not include:

The correct answer is: Trade fixtures Trade fixtures remain the personal property of a tenant, so long as they are timely removed. All other choices describe real property. Therefore, only trade fixtures are NOT real property.

What distinguishes an easement in gross from an appurtenant easement?

The correct answer is: Whether the benefit runs with the land An easement appurtenant attaches to and runs with the land, while an easement in gross is a personal right which would terminate upon the death of either the grantor or grantee. An easement in gross also terminates with the sale of the property. Therefore, an easement in gross does not run with the land. However, an easement appurtenant does run with the land. Both easements could involve adjacent properties.

A joint tenant wants to sell his interest without consent from the other joint tenants. Can he do this?

The correct answer is: Yes, because each joint tenant may sell independently of the others One joint tenant may sell his or her interest independently of the others and without their consent, but could NOT sell the whole. Anyone who buys that interest will become a tenant-in-common with the others, not a joint tenant.

Six months after Brady bought his home, he installed custom-made storm windows and doors. If Brady subsequently transfers title to someone else, will the storm windows and doors automatically transfer as well?

The correct answer is: Yes, unless the parties agree that they will be removed before the sale has advanced Storm windows and doors that are "custom made" for a property are fixtures since they were adapted to the property. As fixtures, they will automatically transfer with the property unless they can be severed (removed) legally. Determining whether an item may be severed is a common source of dispute. As such, the best answer is Choice A since an agreement will always settle the issue.

Once created and properly recorded, may a subdivision plat be altered?

Yes, so long as new plats are created and recorded which reflect the changes to the original plat

Jon purchased a 640 acre tract of land. Which method of legal property description would work best for Jon?

land characteristics and property descriptions) Geodetic and government survey are best suited to identify large tracts of land. Under this system, there are townships and sections. One section is one square mile, or 640 acres. The correct answer is: Geodetic