Rockwell Fundamentals Exam
All of the following are requirements for a valid deed:
Adequate legal description, signature of grantor, words of conveyance. Acknowledge meant is NOT A REQUIREMENT.
A property's net operating operating income is $12,000 per year. If an investor wants a 12% rate of return, how much is the property worth to him?
$100,000 Use the capitalization formula- Income/cap rate = value) to find the property's value.
An owner sells a property, and the buyer is going to make a 20% downpayment. The lender requires the buyer to pay two discount points, which turn out to total $1000. What was the purchase price?
$62,500 Find the loan amount. Two discount points is 2% of the loan amount, so divide the value of the discount points by 2% to determine that this was a $50,000 loan. ($1000/2% + $50,000) The 20% downpayment means this is an 80% loan. Use the loan amount and the loan to value ration to find the purchase price. To calculate the purchase price, divide the loan amount by %80. ($50,000/80% = $62,500)
A borrower is purchasing a $300,000 home. She will be using a loan with an LTV of 80%. She will also be paying 3 discount points. What is the total amount of cash that she will need to bring to closing?
$67,200
Which one of the following does NOT need a real estate license?
A building contractor, developer. He is often involved in selling homes he has built and owns himself. As long as he is acting in this capacity, he does not have to have a real estate license.
A defeasance clause:
A defeasance clause is a mortgage provision indicating that the borrower will be given the title to the property once all mortgage payment terms are met.
Which of the following is a primary market lender?
A-Federal Housing Administration B-Mortgage banking company C-Mortgage broker D-veterans administration
Police powers
Include building codes and zoning regulations
The Real Estate Settlement Procedures Act (RESPA) applies to:
RESIDENTIAL TRANSACTIONS
Gerald engages a licensee to list his property and find a buyer for it. In this context, the licensee is acting as a:
Specific Agent. Licensee represents a seller in ONE specific transaction, and is authorized to perform typical duties associated with listing a property, she acts as a special agent.
To avoid tenant problems, a landlord is best off using a standardized lease form that includes:
Specific rules and regulations.
If, at the conclusion of a disciplinary hearing, the Director rules against a licensee and revokes her license, the licensee can appeal to the:
Superior Court. The licensee has 30 days to appeal to superior court.
Allen begins construction services on May 2 and records a construction Lein on May 5. Bart begins providing services on May 3, and records a construction Lein on May 4. On May 10, a judgement lien against the property is recorded. The property's owner also receives notice on May 10 that he is in arrears on his property tax payments. Which lien has the priority.
THE TAX LEIN. Then the first to file.
Which is true about surveys?
They reveal encroachments not of public record.
Which of the following is true regarding an oral agreement for the sale of real property? It is
UNENFORCEABLE. It fails to fulfill the requirements of the statue of frauds, therefore it is unenforceable.
The selling agent must NOT accept a promissory note as an earnest money deposit:
Unless the purchase and sale agreement discloses that the deposit is a note. MUST BE IN WRITING IN THE OFFER.
A borrower might use PMI to:
allow for a smaller downpayment. PMI insurance allows a borrower to buy a house with a relatively lower downpayment, which is an advantage. Without PMI protecting the lender against a borrowers default, the lender would probably require a lower LTV, and larger downpayment.
Meeting of the minds refers to
offer and acceptance.
A property manager will be paid 3% of a property's annual gross rental income. The rent paid is: $24,000 base rent, $12,000 percentage rent, and $8000 maintenance, tases and insurance (Triple net). The commission amount that the manager will receive is:
$1080 In a triple net lease, the tenant pays the operating expenses (maintenance costs, taxes and insurance) in addition to base rent and in some cases percentage rent. First, calculate the rent paid each year. Then calculate the commission amount.
Ajax realty lists a property for a seller at a commission rate of 8%. The multiple listing service provides that a listing brokerage will split commissions at a 50/50 rate. Baron Reality, a cooperating brokerage, finds a buyer for the property, at a price of $300,000. How much will the seller owe Ajax Realty at closing?
$24,000 Under the terms of the listing agreement, the seller will pay the listing form 8% of the sales prices ($300,000 x 8% = $24,000.) The seller is not party to the MLS agreement. It's up to Ajax to share half of the money with Baron Realty in fulfillment of the commission split agreement, the seller owes Ajax the full commission, amount, not half.
Closing is set for August 1. The seller has already paid the property taxes for the year, totaling $6000. How much of that amount is the buyers responsibility?
$2500 Buyer is responsible for property taxes for the remains FIVE MONTHS of the year. (includes August.)
A seller wants to net $60,000 from a transaction, but will have to pay off a mortgage and other fees, at a total cost of $181,800. The seller will also need to pay a 7% commission. What will the property need to sell for?
$260,000 Start by adding the desired net and the other costs, including the mortgage. 60,000+181,800= 241,800 Subtract the commission percentage from 100%. (93%), and then divide the total by that percentage.
Rudiger purchases a home for $200,000, and receives an 80% loan from his bank. He has to pay three discount points to receive the loan. He is also responsible for a 1% origination fee and a $300 appraisal. The seller paid a 6% commission to the listing brokerage. What is the amount of the discount points that he paid?
$4800 TO calculate the discount points, first find the loan amount ($200, 000 x 80% = $160,000). Then multiply that by the percentage of the loan represented by the discount points ($160,000 x 3% = $4800). Since the question only specified discount points, you would not include the origination fee in your calculations (and you wouldn't need to know the cost of the appraisal or the commission.)
A tenant has already paid his $1200 rent for the month for a single family property The property's owner sells it to a new buyer, with closing occurring on the 15th of June. The parties decide the seller is entitled to rent for the closing date. On the settlement statement, the prorated rent will appear as a:
$600 credit to the seller, $600 debit to the buyer.
A tenant has already paid his $1200 rent for the month for a single-family property. The property's owner sells it to a new buyer, with closing occurring on the 15th of June. The parties decide the seller is entitled to rent for the closing date. On settlement statement, the prorated rent will appear as a:
$600 debit for the seller and a $600 credit for the buyer. The rent has already been paid to the seller, so the seller will need to give some of that rent to the buyer.
The mortgagee assigns its interest and the assignee records the assignment. The mortgagor now needs to make payments to the: A- Assignee B- Assignor C- beneficiary D- mortgagee
A- Assignee A mortgagee (lender) can sting the mortgage debt to a third party, who is then referred to as the assignee. Since the assignee didn't actually lend money to the borrower, technically the assignee is not a mortgagee.
A homeowner in a recently built subdivision plans to build an extra bedroom extending from the back of his house. Nobody in the subdivision has added on to their houses in a similar manner yet. What would the homeowner need to obtain before he could begin work on this project? A- Building permit B-certificate of occupancy C-conforming use permit D-variance
A- Building permit It doesn't matter that they are in a subdivision, it matters that they have a building permit to do any work on an existing building.
A real estate agent has assisted an investor with the purchase of of a number of commercial properties. The investor will be out of the country for part of the year and asks the agent to manage all aspects of those properties during that time, including advertising and leasing. The real estate agent will be a: A- General agent B- Implied agent C-Special agent D- universal agent
A- General agent A real estate agent acting as a property manager is typically a general agent. A property owner often authorizes a property manager to handle all of the day to day businesses associated with the property.
Which of the following clauses relates to a mortgage loan default and requires immediate payment of the debt?
A-Subordination clause B-Acceleration clause C-Writ clause D-Safety clause
A writ of attachment, an easement in gross, and a special assessment all have what in common?
A-They're court actions B-They're encumbrances C-They're restrictions D-They're taxes
A person takes control of an abandoned farmhouse, and begins to modernize it. She notifies the property's owner of her intention to do so and hears nothing back. Eventually she would be able to take title to this property through:
A-accession B-adverse possession C-escheat D-partition
A homeowner with a mortgage sells his home to a purchaser who agrees to assume the mortgage. The purchaser applies for and obtains the lender's approval, and the seller is released from liability for the mortgage. This is an example of:
A-assignment B-subrogation C-subordination D-novation
Which of the following is the proper method for determining the gross income multiplier?
A-divide monthly income by sales price B-divide annual income by sales price C-divide sales price by gross income D-divide assessed value by gross income
Moe has an appurtenant easement over Ray's land. Ray's land is called a/an:
A-dominant estate B=servient estate C-encroachment D-license
Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are:
Ad Valorem taxes. General real estate taxes are ad valorem taxes, the amount of tax owed is based on the value of the property.
A mortgage often includes a clause requiring the lenders consent before another borrower may assume the mortgage. This clause is called a:
Alienation clause (DUE ON SALE CLAUSE.) An alienation clause prevents assumption without the lenders consent by stipulating that the loan balance is dean payable in full if the property is sold.
An appraiser needs to be state certified to perform which of the following appraisals?
Appraisal related to an FHA loan. To be on the roster of appraisers who are allowed to appraise FHA loans, an appraiser must be state certified. Federally related loans (other types) must involved an appraiser who is state certified or state licensed if a loan IS OVER $250,000.
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an: A- acceleration clause B- alienation clause C- defeasance clause D- subordination clause
B- Alienation Clause Aan alienation clause give the lender there gift to accelerate the loan if the borrower sells the property, including by land contract. So, in general, a contract for deed on property subject to an alienation clause would be ill-advised, because most sellers wouldn't have enough money to pay off their mortgage...
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5000 in earnest money within two business days after metal acceptance. The offer is contingent on a feasibility report. On may 5, the seller accepts the offer. On May 11 the soil report is ordered. On May 17 the soil facility report comes back and is approved by the buyer. By what date does the earnest money need to be deposited? A- May 4 B- May 7 C- May 13 D- May 19
B- May 7 Self explanatory read question carefully.
An increasingly common land use pattern allows for subdivisions with smaller lot lines and littler or no setback and sideyard requirements while keeping the same density ratios. There are known as: A- downzoning B- planned unit developments C-horizontal property divisions D- spot zoning
B- Planned unit developments A planned unit development is a subdivision where lot sizes are smaller and dwellings are grouped closer together, and there are signifiant amounts of open space.
Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following statements is true about unrecorded deeds? A- The conveyance is invalid B- The deed is still valid between D and J C- The deed provides constructive notice that Juanis the owner D- The property with the unrecorded deed will escheat to the country where it is located after Juan dies
B- The deed is still valid between D and J But does not provide constructive notice.
Which of the following is a primary market lender: A- FHA B-Mortgage banking company C-Mortgage broker D-Veterans Administration
B-Mortgage Banking company A mortgage banker is a primary market lender, meaning that it originates loans directly to property buyers.
A person takes control of an abandoned farmhouse, and begins to modernize it. She notifies the property's owner of her intention to do so and hears nothing back. Eventually she would be able to take title to this property through: A-accession B-adverse possession C-escheat D-partition
B-adverse possession If a non-owner takes exclusive possession of a property without the owner permission (the "hostile" requirement) in an open and notorious manner, and holds it for the required period of time, she can take title through adverse possession.
A buyer purchases a rental home that is fully furnished. The document is used to transfer title to the furniture is a:
Bill of sale.
An indépendant contract relationship between a real estate brokerage firm and a licensee requires that the:
Brokerage and Licensee must enter into a written agreement. The IRS requires a written agreement that the independent contractor will NOT be treated as an employee for tax purposes. All of the contractors compensation must be based on commission, not on hours worked.
An interent website operated by a licensee displays the properties he has listed. The site must give the:
Brokerage's licensed name. HIS NAME AND FIRMS NAME.
Art sold his house, which was not encumbered with a mortgage. Closing expenses were $5264, and he paid a omission of 7% of the selling price. He received a check at closing for $372316. What did his house sell for?
C- $406,000 Add selling costs to the sale proceeds. $5264+ $372316 = $377580 Use seller's net formula. Divide sales price by the commission rate subtracted from 100. (100%-7% = 93%) $377,580 / .93 = $406,000
When a title to a property is lost, but the boundaries remain the same: A-Acceleration B-Accretion C- Alienation D- Avulsion
C- Alienation Hence, "lost" means that you don't have title anymore; it's the most in close term for all the various ways that you could find yourself without a property you once owned. Loss of title could occur because you voluntarily transferred it, or it was involuntarily transferred...
K buys a piece of landlocked property from L on the condition that L provide an easement across the property for ingress and egress. The easement isn't recorded, K later sells the property. Is the easement still valid for the new owner? A- No, because it wasn't recorded B- No, because it wasn't mentioned in the deed C- Yes, because an easement of this type runs with the land, rather than belonging to an individual D- Yes, because K is the servant tenant and L is the dominant tenant
C- Yes, because easement of this type runs with the land rather than the individual Easements ordinarily need to be in writing and recorded in order to run with the land, but if the use is apparent an easement can run with the land even if it is not recorded. In any case, the owner of the landlocked property is always entitled to an access easement, so C is the best answer here.
Which of the following would most likely happen in a land contract? A- the vendor pays the property taxes, insurance, repairs and upkeep on the property until the final payment is made B- the vendor finances the property and makes installment payments C-the Vendor retains the title to the property until the final payment is made D-the vendee receives possession and the vendor retains the equitable title
C-The vendor retains the title to the property until the final payment is made The vendor retains legal (not equitable) title The vendee receives passion and equitable title while making installment payments. Vendee is responsible for property taxes, insurance, repairs and upkeep
A right held by one or more persons to use and possess property to the exclusion of others is a/an: A- warranty B-easement C-fee simple estate D- right of equity
C-fee simple estate An easement allows the use of property, but it is not a possessory right. An estate, in contrast, is an interest in land that is or may become possessory. (A fee simple estate is the most common type of estate.)
Which of the following rental transactions would be covered by (not exempt from) the Fair Housing Act even if no real estate agent were involved? A-owner-occupant rents a unit in a four-unit dwelling, using a nondiscriminatory ad B-owner-occupant of a duplex rents to a neighbors son without advertising the unit C-Rental of a unit in a triplex, using no discriminatory advertising D-owner rents out one room in her residence, without using any advertising
C-rental of a unit in a triplex, using no discriminatory advertising Residential rental transaction can be exempt from the FHA only if the property is a single family home and the owner has no more than three such homes, or if the property has no more than four units and the owner is residing on the property. Renting a unit in a triplex, using no discriminatory advertising, does not indicate that the owner is occupying one of the units in the triplex, so the FHS would apply.
A seller wants to net $60,000 from a transaction, but will have to pay off a mortgage and other fees, at a total cost of $181,800. the seller will also need to pay a 7% commission. What will the property sell for?
COMMISSION and NET MEANS PERCENT +/- 100!!!! 181,800+60,000=241800 100%-7%=93% $260,000
On a settlement statement, an earnest money deposit that will be held by the brokerage firm until closing is a:
Credit to the buyer. The earnest money has already been paid and will be applied to the purchase at closing, so it appears as a credit to the buyer.
A tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental period or duration of possession, is called: A- estate in remainder B- estate for years C-periodic estate D- estate at will
D- Estate at Will This is the definition of an estate at will (tenancy at will.) In contrast, a periodic estate is one with a repeating period such as a month to month teensy. And an estate for years is one with a fixed term, such as one year.
A buyer is getting a loan to purchase a fie acre apple farm with no residence on it. The truth in lending act requires: A- a three-day recession period if the borrower changes her mind B- disclosure of all settlement charges on a uniform settlement satement C- disclosure of the finance charge C- No disclosure, because the land is agricultural
D- No disclosure, because the land is agriculture. TILA disclosure requirements do not apply for business, commercial, or agricultural loans.
Which of the following would characterize a tenancy in common? A- Only available to married persons B- Requirement of equal interests C- Right of survivorship D- Tenants can will a partial interest in the property
D- Tenants can will a partial interest in the property Unlike a joint tenant, a tenant in common can will her interest in the property to someone else. There is no right of survivorship, and no requirement of equal interest in a tenancy in common.
Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson already paid the taxes for the entire year, but the Hatchers are assuming responsibility for the taxes as of the closing date. The settlement statement will prorate the taxes as a:
Debit to the buyer, credit to the seller.
A licensee writes a successful transaction while working for Designated Broker X. Before the transaction closes, the licensee starts working for Designated Broker B. How is the licenses commission handled?
Designated Broker X may pay the commission to Designated Broker B, who will pay the licensee.
A homeowner has been sharing with a friendly neighbor the use of a driveway that crosses both of their properties. The neighbor is about to move, and the remaining homeowner would like to make sure that she can continue to sue the driveway even if the new neighbor is not amenable to that. She will request an:
Easement.
Once a contract for deed is signed by the parties, the buyer immediately receives:
Equitable title. When The buyer finishes paying off the contract purchase price then it becomes legal title.
Puffing
Exaggerated or superlative comments or opinions.
An exclusive listing agreement is an example of an:
Express contract. An express contract is one that is stated in words, written or spoken, rather than implied by actions, and a listing agreement is stated in words, it's a written agreement. Unlike an open listing, and exclusive listing agreement is a bilateral contract, not unilateral.
The IRS issues rules that determine when a real estate agent is an employee and when he is an independent contractor. Which of the following statements on that topic is FALSE?
FALSE: The brokerage may require an independent contractor to have a cell phone.
Under the Uniform Regulation of Business and Professions Act (URBPA), which of the following actions by a licensee would constitute unprofessional conduct?
Failure to provide a buyer with a completed property disclosure form. Failure to provide a form in a transaction where one is required could be considered incompetence, negligence, malpractice or misrepresentation.
A primary advantage of owning a property in severalty is:
Flexibility. Severe (one person) means the owner can do what they want without needing approval from other investors.
John wants to rent a heated garage and is willing to pay a flat rate of $100 per month. Which type of lease would this be?
Gross lease. A lease where the tenant pays a FIXED FLAT RENT and the landlord pays most or all of the operating expenses is called a gross lease or a fixed lease.
A landowner is negotiating the lease of his land to a developer who wants to build a mall there. They should use a:
Ground lease. A ground lease is used when a tenant leases land and constructs a building on that land. Later, retailers
An appraiser is trying to estimate depreciation when valuing an older residential rental property, but is finding it difficult because no comparables have sold recently. However, the appraiser can find sufficient date on rental rates in the same market, and a cap rate can be supported. Which approach to value should the appraiser use?
Income. If comparable sales aren't available and the accrued depreciation is difficult to estimate (which is generally true for older properties) but the date necessary to use the income approach are available, then it's appropriate to use the income approach.
A homeowner bought his home for $150,000. Ten years later, her refinanced and borrowed $100,000. Which of the following is true for this type of property?
Interest on loans such as this one for the purchase or refinance of a principal residence is deductible. For PRINCIPAL RESIDENCE, interest on a purchase or refinance loan of ONLY 100,000$ would be fully deductible.
Usury laws fix with of the following:
MAXIMUM INTEREST RATES State USURY LAWS set maximum interest rates for certain types of loans.
Under Washington license law, A license may be suspended if she hasn't:
Made timely payments on a federally guaranteed educational loan. WHAT? Irrelevant totally. I guess because they are expecting that with the loan the person will be a contributing member of society.
A licencsee locates what SEEMS TO be a ready and willing buyer. But, the deal falls through at closing because the buyer cannot obtain financing. (ISN'T ABLE.) At the same time, the seller turns out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent?
NO, because there really wasn't a ready, willing and ABLE buyer.
An investor wants to invest $250000 in the development of a strip mall by taking out a loan secured by a residential property that he owns. With the TILA apply to this transaction?
No, TILA only applies to consumer loans. Personal, family or household purposes.
An unlicensed assistant will be compensated when a transaction closes. Is this permissible?
No, because an unlicensed assistant's compensation may not be contingent on sales being completed. Unlicensed assistants may seek to arrange appointments with prospective clients, as long as the assistants compensation is not based on whether the firm is eventually compensation. (NOT SALES COMISSION BASED.)
A potential buyer gives a seller an offer that doesn't meet the sellers demands in the listing. What as the buyer given?
Offer to purchase. An offer to purchase simply must express a willingness to contract, and be certain in it's terms. It does not need to match the sellers listing. Remember that the listing is not an offer, it's an ad. It can't simply be accepted to form a binding contract. So the buyers offer is the first offer in a typical transaction, NOT a counteroffer.
A property manage increases an apartment buildings $3000 monthly income by an additional $500 a month. The cap rate is 8%. What is the increase in the property's value?
P=Wx% Find annual rate- 3000x12= 36000 36000=450000x8% New annual rate- 3500x12= 42000 42000=525000x8% 525000-450000=75000
Which of the following is likeliest to be considered a fixture?
Plumbling It is permanently attached to the real property, and would be difficult to remove without dismantling large parts of the building. Meets the fixture test.
An investor rents a property to a tenant. For tax purposes, the depreciation on this property is based on:
Price, plus capital improvements, minus land value. Adjusted basis is calculated by starting with initial basis (the cost of obtaining the property) adding capital expenditure, and then subtracting depreciation deductions.
An investor rents a property to a tenant. For tax purposes, depreciation on this property is based on:
Price, plus capital improvements, minus the land value. Adjusted basis is calculated by starting with the initial basis (cost of obtaining the property), addicting capital expenditures, and then subtracting depreciation deductions. The value of the land must also be subtracted from what is depreciable, and since land does not wear out, so depreciation doesn't apply.
A promissory note that is sacred by a mortgage is:
Primary evidence of the debt. The note is evidence of the debt. The mortgage is security for the debt.
A lease is most likely to be a net lease if a tenant is required to pay:
Property taxes. Net leases require the tenant to pay some or all of a property operating taxes, insurance and maintenance. A net lease also requires a tenant to pay utilities. A gross lease, will never require a tenant to pay property taxes.
An investor is interested in purchasing a multi-family dwelling. He would most likely want to look for a:
Property where the rents are similar to comparable properties in the same area. An investors market analysis will determine the rents charged by comparable properties. Investors want to buy properties that compete effectively with other properties in the same market.
A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the title, he should file a:
Quiet title action. This is a lawsuit that is used to remove clouds from title to real property, by settling questions about the property's ownership or the legitimacy of other claims against it. A quitclaim deed will also clear a cloud, but ash requires the cooperation of whoever would need to sign the deed.
A deed that states there is a conveyance of interest, if any, is the:
Quitclaim deed. When signing a quitclaim deed, the grantor is saying, I hereby quitclaim, remise and release whatever interest I have in the property, if any.
A seller listed a property for $95,000. Assuming that their listing agreement is typical, the broker would not be entitled to a commission if the seller:
Rejected a $90,000 offer from a financially qualified buyer. If an offer meets the seller's terms and the buyer is financially able to buy, the broker is entitled to a commission theater the seller accepts the offer or not. However, a broker is NOT entitled to a commission if the seller rejects an offer that doesn't meet the terms of the listing agreement.
Net listings are strongly discouraged because they are likely to be unfair to the:
SELLER! Net listing is where a seller agrees to a certain amount and the listing broker receives any surplus beyond that are unfair to sellers. The broker could end up earning a far larger commission than a typical percentage and the seller could also be manipulated into listing their home for a very low cost.
A former mansion has been divided into three apartments. The best approach to finding the property's value is:
Sales comparison. Not income, income approach is used for properties that are oriented toward generating income for the property's owner.
The market price of a property would be best defined as:
The amount paid to obtain the property. Market price is simply the price that someone paid in an actual transaction- IT'S NOT AN ESTIMATE OF VALUE.
Which of the following statements regarding the RESPA act is true?
The borrower is entitled to a loan estimate showing settlement costs within three days of submitting an application. Commercial transactions and seller financed transactions are not covered by RESPA.
A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally incompetent. The buyers guardian contracts the seller and says that he can continue to make the buyers payments as agreed. Which of the following is true:
The buyer can finish out the contract as the buyers guardian has proposed, because the person was not incompetent when the contract was signed.
At what minimum point must an INACTIVE license take a 30 hour clock course in order to reactivate her license?
Three years.
A life estate will last:
Until the death of the tenant, a life estate lasts until the death of the measuring life. (Typically the tenant.)
To erect a sign higher than an ordinance allows, the Morgans must ask for a:
Variance. A variance is a minor deviation from zoning requirements. It will be allowed if the neighborhoods character will not be changed and if the Morgans will suffer undue hardship without it.
A judgement Lein:
When paid off, a satisfaction of judgement should be recorded in order to clear the record. The Lein has been released.
A movie theatre was built ten years ago. If the neighborhood is now zoned entirely residential, the movie theatre:
Will be allowed to continue since it was built before the new zoning law went into effect.
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property interest:
Will be automatically transferred (conveyed) to Kim and Diane. Joint tenancy includes the right of survivorship, so when one tenant dies, titles passes to the remaining tenants automatically.
Ben recieves a life estate in a property, with is nephew . Will is designated the remainder man. When Ben dies, what kind of interest does Will have?
Will has a Fee Simple Estate. T The interest that passes to a designated person upon the death of a life tenant is a fee simple estate.
An apartment building is right where a new city park is going to be built. The city condemns it. Can the city terminate the leases of the buildings tenants?
Yes, if notice is provided to the tenants and they receive relocation assistance. According to the Uniform Relocation Act, tenants whose leases terminate because of the condemnation of their residence are entitled to at least 90 days notice and assistance with relocation. (It's not compensation because a leasehold tenant interest is unlikely to have any financial value.)
Sam takes possession of an unused farm and begins growing crops. He sends the farms owner a litter describing his actions. Can Same ever become owner of the farm?
Yes. As long as he maintains possession. Although, he may need to file a quiet title action to perfect title. The owner does not need to know about the possession, but the possession must be obvious enough to put an average owner on notice that her interest in the property is threatened. Sams letter satisfies that requirement.