REX 7600 Unit 2

A buyer contracts to purchase real property with the intention of having title transfer to her children upon death. Which of the following is the best way for the buyer to take title to the purchased property?

A fee estate

Fee Simple absolute

A fee simple estate with no restrictions on its use

Total Circumstances Test

A legal test applied by the courts to determine whether an item is a fixture. (IRMA)

Measuring Life

A person whose life determines the length of a life estate, they have no present or future ownership interest

Which of the following statements about the North Carolina Timeshare Act are FALSE?

A purchaser of a new timeshare ownership must be given a 10-day rescission period; The rescission period is 5 days, not 10

In North Carolina, a modular home A. becomes part of the real estate as soon as it is assembled on site. B. has a steel chassis with wheels and axles. C. has a HUD label that is required for transfer of title. D. is constructed per HUD construction standards.

A. becomes part of the real estate as soon as it is assembled on site.

A homestead estate is one that A. protects land that includes the family home from creditors B. has remained in a family's ownership for more than five generations C. was obtained through adverse possession D. exists in all American States and some foreign countries

A. protects land that includes the family home from creditors

Fixtures are A. real property. B. chattels. C. removable by a tenant before the expiration of the lease. D. removable by a tenant after the expiration of the lease.

A. real property.

Fixture

An item of personal property that has been converted to real property by being permanently affixed to the real estate

Riparian Rights

An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.

Fructus industiales/ emblements

Annual crops such as corn, vegetables, wheat

Examples of trade fixtures

Bowling Alleys, store shelves, bars, restaurant equipment

Severance

Changing an item of real estate to personal property by detaching it from the land

A buyer purchases a fee simple estate and has an undivided interest in common elements associated with the property that includes all the land. What form of ownership interest does the buyer hold?

Condominium

Conventional Life Estate

Created by grant from the owner of the fee simple estate. The owner retains a reversionary interest in the property or names a remainderman.

Example of Severance

Cutting down a tree or picking an apple from a tree

Which of the following is considered personal property? A. Masonry fireplace B. Porch and window awnings C. Bathtubs D. Patio furniture

D. Patio furniture

Which of the following is NOT TRUE about condominium ownership? A. It can be mortgaged. B. All the land is owned as part of the common elements. C. The ownership can be left to someone through a valid will. D. The limited common elements can be sold separately.

D. The limited common elements can be sold separately.

A homeowner acquired the ownership of land that was deposited by a river running through her property by A. reliction. B. succession. C. avulsion. D. accretion.

D. accretion.

The land of a common interest community A. is always owned by the owner's association B. cannot be owned by individual unit owners C. is automatically considered to be part of the common area D. may be maintained by the owner's association

D. may be maintained by the owner's association

DEEP C

Disposition, Enjoyment, Exclusion, Possession, Control; The Bundle of Rights

Fee Simple Subject to Condition Subsequent

Estate dictates some action or activity that the new owner must not perform.

Types of Leasehold or nonfreehold estates

Estate for years, estate from year to year, estate at will, estate at sufferance

2 types of defeasible estates

Fee simple subject to a condition subsequent Fee simple determinable

Types of Freehold Estates

Fee simple, defeasible fee estate, pur autre vie, ordinary conventional life estatewith remainder or reversion

3 ways fixture differ from trade fixtures

Fixtures are part of the real property and belong to the property owner, Fixtures are considered a permanent addition to a building, Fixture are legally construed to be real property and included in any sale or mortgage of the property

Which of the following has an indefinite ownership period?

Freehold estate

Reliction

Gradual recession of water or disappearing permanently, acquiring new land

Remainder interest

Grantor names someone other than the grantor to receive title to the property when the life estate terminates

Adaptation to real estate

Has either the item or the property been tailored to facilitate working together? has it been customized or built in to the property?

Method of annexation

How permanent is the method of attachment? Can the item be removed without causing damage to the surrounding property, or can any damage caused by the removal be easily repaired?

Reversionary Interest

If grantor does not name a remainderman, then ownership returns to the grantor when the life estate terminates.

Agricultural Fixtures

In North Carolina, a fixture attached to leased property by a tenant farmer is considered the landowner's real property rather than the tenant's personal property.

4 legal tests of a fixture

Intention, Relationship, Method of Annexation, Adaptation to real estate

IRMA

Intention, Relationship, Method of annexation, Adaptation

Real Property

Land, improvements thereon, and the interests, rights, and benefits of ownership

Manufactured home

Mobile home or trailer home that can be real property or personal property

Two classifications of Estates in land

Nonfreehold estates/leasehold estates (rights or possession) and Freehold estates (rights of ownership)

Marital Life Estate

North Carolina law permits that when someone dies without a will, or dies with a will disinheriting a spouse or leaving him or her very little that the surviving spouse may choose an "elective share" of the estate instead.

Remainderman

One entitled to receive a remainder interest in some estate sometime in the future.

Example of Subjacent Support

Owner of subsurface mineral rights under your property cannot cause the surface of your land to collapse.

A life estate conveys to the life tenant: A. a leasehold for life. B. a reversionary interest. C. an estate pur autre vie. D. ownership for life.

Ownership for life

Annexation

Permanent improvements on the land such as buying bushes and planting them on the land

Actions required to turn a manufactured home into real property

Remove the hitch, wheels, and axels, attach the home to a permanent foundation, file an affidavit confirming those things were done

Future Interest

Right of reentry and possibility of reversion

Bundle of Rights

Rights of ownership, including right of possession, disposition, enjoyment, control, exclusion

A rancher owns a parcel of land with all subsurface, air, and water rights intact. If oil is discovered on the parcel of land, who owns the oil?

The Rancher

Fee Simple Estate

The complete ownership of a property; may be either absolute or defeasible (conditional).

Estate in land

The degree, quantity, nature, and extent of interest a person has in real property.

Life Tenant

The holder of a life estate.

Reversionary Right

The return of the rights through court proceedings if the condition is broken in a a fee simple subject to condition subsequent or automatically in a fee simple determinable

Subjacent Support

The right to have one's land supported from below.

Modular Home

Units that are constructed in factories off-site according to state building codes. Once assembled on the home site, it is immediately considered to be real property.

Littoral Rights

Unrestricted use of navigable waters but own the land adjacent to the water only up to the mean high-water mark

Intention

Was it intended to be permanent

A person who acquired ownership that can be inherited, with the provision that the land must always be used for recreational purposes, has

a fee simple determinable estate

Life Estate

a freehold estate in land that is limited in duration to the life of the new owner or to the life or lives of some other designated person(s)

Improved land

a land that has a structure on it, such as a house

Homestead

a legal life estate in real estate occupied as the family home

The owner of a condominium unit learns that a neighbor has failed to pay his real estate taxes. If the neighbor does NOT pay the taxes

a lien can be filed against the neighbor's unit

Life Estate Pur Autre Vie

a life estate owned for the lifetime of some named 3rd party called the measuring life

Trade Fixture

an article owned by a tenant and attached to a rented space or building for use in conducting a business

Fee Simple Defeasible

an estate which may be lost ( or defeated) on the occurrence or nonoccurence of a specified event

An elderly couple no longer need their large house, so they decide to sell the house and move into a cooperative apartment building. In a cooperative, they will

become stockholders in a corporation

A business owner rents an empty building to use as an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions

can be legally removed by the tenant at the termination of the lease

An owner of a fee simple estate sells the property with the condition that he will continue to own the entire property until his death. The seller has a

conventional life estate

A man lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, the man owns stock in the corporation and has a lease to his apartment. This type of ownership is called a

cooperative

A decedent left a will giving a neighbor the right to use a well on the decedent's land as long as the neighbor was alive. The neighbor's interest in the property is properly called a(n)

easement in gross.

A portion of a building was built on the neighbor's land. This is called an

encroachment

A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an

estate in remainder.

Freehold Estates

estates of indeterminable length of ownership, such as those existing for a lifetime or forever

Nonfreehold or leasehold estates

exists on the property when the owner has rented the property to a tenant

A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a

fee simple determinable estate

A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a

fee simple determinable estate.

A person who has complete control over a parcel of real estate is said to own a

fee simple estate

Accretion

gradual increase in land resulting from the deposit of soil by the water

Erosion

gradual wearing away of land caused by flowing water that may cause an owner to lose land

A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building

in severalty

Waste

injury to the land or rela estate

If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, the easement

is terminated

Relationship of the annexor

is the person making the attachment the owner?

A property owner conveys the ownership of his apartment building to a nursing home, anticipating that the rental income will help pay for his father's care at the home. When his father dies, the original owner will recapture the ownership of the apartment building. This is an example of a

life estate pur autre vie

An example of a LIMITED common element in a condominium project is a

locked storage unit.

Generally, personal property can be distinguished from real property by its A. size. B. mobility. C. value. D. multiplicity of use.

mobility.

The ownership rights to real estate include all of the following EXCEPT

navigable rivers running through the property; Navigable waters are owned by the government

After construction of a building over a railroad right-of-way, the trains may

operate as usual

Fructus Naturales

plants that do no require annual cultivation; trees &shrubbery

A person currently has the legal right to occupy and use a certain residential structure. The interest in the property could be all of the following EXCEPT

remainder

Fee Simple Determinable

requires that a specified activity or land use continue; if the condition ceases to exist ownership automatically reverts to former owner

Apputenance

right or privilege that goes with the ownership of land, such as an improvement

Lateral Support

right to have adjacent property support the natural boundaries of the land

Subsurface Rights

rights to use the space below ground level and to extract natural resources lying below the lands surface

The rights of the owner of property located along the banks of a small stream are called

riparian rights.

Improved Lot

the certain basic required services necessary to utilize it, such as electricity or water access

Accession

the right of an owner of property to an increase in that property such as when a trade fixture is not removed before the end of the lease

Air Rights

the right to use the air above the land

Surface Rights

the rights to use the surface of the land

Emblements are

the same thing as fructus industriales

An ownership interest that is based on pre-set occupancy periods occurring over five years or more is called

time-share ownership

Doctrine of Prior Appropriation

water rights are determined by priority of beneficial use. This means that the first person to use water or divert water for a beneficial use or purpose can acquire individual rights to the water

Avulsion

when a sudden act of nature removes soil, such as a flood or avalanche