Unit 2

Which of the following statements is/are TRUE? i. A condominium owner individually owns only the "airspace" in the unit and no land. ii. A town house owner individually owns the ground under the unit.

Both

According to the North Carolina Time Share Act, a certificate of registration for each time-share project must i. be obtained from the North Carolina Real Estate Commission. ii. be renewed every June.

Both i and ii

T or F regarding the North Carolina Time-Share Act - A purchaser of a new time-share ownership must be given a 10-day rescission period

FALSE

True or false. regarding the North Carolina Time-Share Act - A purchaser of new time-share ownership must be given a 10-day rescission period

False

Oceanfront property ends at the

Mean high water mark

A life estate conveys to the life tenant

Ownership for life

Fee simple estate characteristics

Transferable by deed or will, of indefinite duration, and transferable with or without valuable consideration

Which of the following would NOT be considered in determining if an item is a fixture? A) Method of attachment B) Intent C) Value D) Adaptability

Value

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

a fee estate

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

a fee estate

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

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

A homeowner acquired the ownership of land that was deposited by a river running through her property by

accretion

A trust is

an agreement to hold assets on behalf of another

Each time-share developer must deposit all money received from a purchaser in

an escrow account for 10 days

A property is bordered by a small stream. The property ends

at the center of the stream

The ownership rights to real estate include

easements running with land, buildings on property and air space above property

True or false: a time-share salesperson must provide a public offering statement about the time-share project to a potential buyer prior to showing or sharing project information.

false

true or false: Trustee—the individual who creates the trust

false

A freehold estate in land that will automatically extinguish upon the cessation of a specified condition is called a

fee simple determinable

A property owner wanted to donate to the hospital a vacant lot she owned adjacent to a hospital for expansion purposes. She wanted to make sure the land was used as she intended, so her attorney prepared the deed to convey ownership of the lot to the hospital "so long as it is used for hospital purposes." Upon receipt of the gift, the hospital owned a

fee simple determinable estate

A purchaser of real estate learns that her ownership rights will continue forever and that no other person has any ownership control over the property. This person owns a

fee simple interest

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

fee simple, leasehold, or life estate. not remainder

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

fee simple, life estate, leasehold

Concerning concurrent ownership, which of the following statements is/are TRUE? i. Tenancy in common is not available to a married couple holding title on a property. ii. Joint tenants may hold title to the property with equal, undivided interests.

ii only

The four legal tests of a fixture are

intention, relationship, method of annexation, and adaptation to real estate

The probate process

is required if the party died testate

Is a fee simple estate free of encumbrances

no

A homestead estate is one that

protects land that includes the family home from creditors

A property owner has placed a manufactured home on his lakefront lot. In order to make the home a legal part of the real estate, he must

remove trailer hitch, wheels and axles, cancel the motor vehicle title with an affidavit, and attach the home to a permanent foundation

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

riparian rights

What form of concurrent ownership can only be held by spouses?

tenants by the entirety

One advantage of a trust is

the assets of the trust may be able to pass outside of probate

A seller spent $5,000 to have custom-made awnings installed over her backyard patio. According to the NCBA/NCAR 2-T Offer to Purchase and Contract, what is the status of the awnings?

the awnings are considered real property and must stay

A buyer and a seller/developer executed a purchase contract for a new condominium on May 6 with the buyer giving $5,000 in earnest money. The buyer changed her mind and notified the seller on May 11 that she was rescinding the contract. Which of the following is TRUE?

the buyer can legally cancel the contract and have all the earnest money refunded

Which of the following items would normally convey as a fixture with the property?

the large mirror bolted over the fireplace mantel

A prospective client wishes to list his property with a broker and states that the property is held in a trust. Which party should the real estate broker contact in order to proceed with listing and marketing the property?

the trustee

True or false: the trustee exercises control of the subject party

true

True or false: the trustor creates the trust

true

true or false: Trustee—the fiduciary who exercises control of the subject property

true

true or false: Trustor—grantor or settler

true

true or false: Trustor—the individual who creates the trust

true

The North Carolina owner of a secluded area adjacent to the Atlantic Ocean noticed that people from town walked along the shore in front of this property. The owner learned that the local citizens had been walking along this beach for years. The owner went to court to try to stop people from walking along the water's edge in front of the property. The owner is likely to be

unsuccessful, because the owner's property extends only to the high-water mark and the public can use the land beyond this point