Chapter 2 review questions
Siblings Rita, Al, and Paul co-own a family restaurant as joint tenants. If Paul dies without a will, his interest will pass to A. his children B. his wife C. the surviving co-owners D. whomever the court designates
C. the surviving co-owners
Opal lives in an apartment that is going co-op. The current residents are given the first option to buy in, and Opal decides to take advantage of the opportunity. Which statement about Opal's new co-op is FALSE? A. Opal can be evicted if she doesn't pay her co-op fees. B. Opal owns shares in the co-op. C. Opal will have a proprietary lease. D. Opal will own the airspace inside her co-op.
D. Opal will own the airspace inside her co-op.
Which statement about a life estate is FALSE? A. An example of a life estate in some states is dower rights B. A life estate cannot be willed C. A life estate ends when the measuring life dies D. People deeding property to someone cannot take a life estate for themselves
D. People deeding property to someone cannot take a life estate for themselves
Jean gives 20 acres to the city of Edgewood but stipulates that the city can use it only to create a nature preserve and park. If the city uses the land for any other purpose, it will revert to Jean's heirs. What kind of estate has Jean created? A. conventional B. fee simple absolute C. pur autre vie D. defeasible fee simple
D. defeasible fee simple
Lenny and Eileen just got married, and she moves into the house Lenny owned in severalty prior to the wedding. Which of these unities is present concerning the ownership of the house? A. interest B. time C. title D. person
D. person
Larry owns his house in severalty. He has a will that leaves the house to his grandson, Sean. When Larry dies, Sean is ________ and his interest was created by ________. A. co-owner / deed B. co-owner / devise C. sole owner / deed D. sole owner / devise
D. sole owner / devise
Pam and Jim are getting divorced and decide to sell their house. Before the house sells, however, the divorce is finalized, and the judge awards the house to Jim as part of the divorce settlement. What is his interest in the house? A. joint tenant B. tenant in common C. tenant by the entirety D. tenant in severalty
D. tenant in severalty
Harold wants to help his grandson, Mike, go to college. Harold transfers ownership of some rental property to the boy's mother, Jan, with instructions to use the income from the property to pay for Mike's tuition, room, and board. Who is the Trustor?
Harold
Harold wants to help his grandson, Mike, go to college. Harold transfers ownership of some rental property to the boy's mother, Jan, with instructions to use the income from the property to pay for Mike's tuition, room, and board. Who is the Trustee?
Jan
Harold wants to help his grandson, Mike, go to college. Harold transfers ownership of some rental property to the boy's mother, Jan, with instructions to use the income from the property to pay for Mike's tuition, room, and board. Who is the Beneficiary?
Mike
Which is NOT a legal right of a life tenant? A. encumbrance on the life estate B. net income produced from the property C. income from cut timber D. estovers for building repairs
C. income from cut timber
Lisa owns a condo, which means she owns in severalty, the interior A. of her unit only. B. of her unit and a prorated percentage of the common elements. C. and exterior of her unit only. D. and exterior of her unit as well as the land it sits on.
A. of her unit only.
Opal lives in a co-op. Her interest in the co-op is A. personal property B. real property C. both personal and real property D. neither personal or real property
A. personal property
Which of these unities is required for there to be a tenancy in common? A. possession B. interest C. time D. title
A. possession
Which transaction does NOT represent an example of an appurtenance? A) Selling fructus industriales from your own land B) Selling natural gas under your house to a utility company C) Selling the space above your farm to a billboard advertiser D) Selling water from your underground spring to a bottling company
A) Selling fructus industriales from your own land
Frank owns a 12 story apartment building along the freeway. He agrees to allow an ad agency to erect a billboard on the roof of his building. He is exercising his ownership rights to the air. A) True B) False
A) True
Marcus owns a cottage on the lake. When he sells it, his littoral rights are automatically transferred to the new owner. A) True B) False
A) True
A landowner needs water. His land has no available water source. His next door neighbor gives him permission to cross his land to run a pipeline from a river to his land. Which right grants this permission? A) Appropriative B) Eminent Domain C) Littoral D) Riparian
A) Appropriative
Which types of ownership are evident in a condominium community? A. Co-tenancy and fee simple B. Defeasible fee and joint tenancy C. Fee simple determinable and severalty D. Tenancy by the entirety and pur autre vie
A. Co-tenancy and fee simple
Derrick purchased a fee simple interest in a house on the lake with an 8% interest in the parking area, recreation center, laundry room, and docks. What kind of ownership interest did Derrick buy? A. Condo B. Co-op C. Timeshare D. Trust
A. Condo
Matilda wants to know that her granddaughter Rose will inherit her house when she dies. So, she deeds her house to her granddaughter but creates a situation where Matilda can still live in the house until she dies. When Matilda dies, Rose will own the house. What kind of estate is this? A. Conventional B. Fee simple absolute C. Fee simple defeasible D. Pur autre vie
A. Conventional
Of these, which estate is NOT inheritable? A. Conventional life estate B. Fee simple absolute C. Fee simple defeasible D. Life estate pur autre vie
A. Conventional life estate
Which type of co-ownership requires ONLY the unities of possession, interest, time, and title? A. Joint tenancy B. Tenancy by the entirety C. Tenancy in common D. Tenancy in severalty
A. Joint Tenancy
Gary and his brother Steve buy a comic book store as joint tenants, accepting the deed at closing. That deed LEAST LIKELY represents the unity of A. Person B. Possession C. Time D. Title
A. Person
Owner-occupants of a high-rise condominium unit have an air lot. A. True B. False
A. True
When a condo unit is sold, an undivided interest in common areas and membership in the owners association are automatically transferred to the new owner. A. True B. False
A. True
Which is LEAST LIKELY to be an example of a common area in a condominium? A. balcony B. land C. laundromat D. swimming pool
A. balcony
Karen and her sister Sue buy a $200,000 house together. Karen puts up $150,000, and Sue puts up $50,000. The deed simply indicates that the grantees are Karen and Sue as tenants in common. Sue's interest in the house is MOST LIKELY A. 25% B. 50% C. 100% D. Whatever they negotiate
B. 50%
Ron sells his old house. He and wife Deb take title to a new house. The deed does not indicate this ownership specifically as a tenancy by the entirety, however. What percentage of the interest in the new house does Deb own? A. 50% B. 100% C. Whatever % corresponds to the amount she contributed to the sale price D. Whatever percentage is indicated in the deed
B. 100%
Mary, Donna, Ralph, and Lou co-own a property as joint tenants. Ralph dies. What is Mary's interest in the property? A. 25% B. 33 1/3% C. 50% D. Whatever % is left after discharging Ralph's will
B. 33 1/3%
Encroachment refers to a physical intrusion of land by another person without any lawful right to enter it A) True B) False
B) False
When Steven sells his house to Lois, the built-in bookcase transfers as part of the transaction. The bookcase is an appurtenance. A) True B) False
B) False
You live on the shores of a commercial lake. You are a ___________ owner, which means you _________ own the land under the water. A) Littoral, Do B) Littoral, Don't C) Riparian, Do D) Riparian, Don't
B) Littoral, Don't
If you purchase a home next to an airport and you become annoyed when planes take off from the airport in early morning hours, do you think you may be able to recover damages from the airport for infringing on your air rights? A) Yes B) No
B) No
Which is an example of an appurtenance? A) The right to hunt on your own property B) The right to lease the space over your land for a billboard C) The right to sell your property to a willing buyer D) The right to plant apple trees on your land
B) The right to lease the space over your land for a billboard
Helen has lived in her home for 30 years with her sister-in-law Amy. Helen has one daughter, Erin. If Helen dies before Amy, Helen wants to make sure that Amy is still allowed to live in the home, so she grants Amy a life estate. Helen dies. After ten years, Amy also dies. Which statement is TRUE? A. Amy has a life estate where she is the life tenant and Helen is the measuring life. Erin is the remainderman. B. Amy is both the life tenant and the measuring life for the estate; Erin has a reversionary interest. C. Amy is the measuring life of this life estate and Erin is the life tenant with a reversionary interest. D. Amy's life estate ends when Helen dies, at which point Erin will take possession of the property as reversioner.
B. Amy is both the life tenant and the measuring life for the estate; Erin has a reversionary interest.
Which of these estates is NOT inheritable? A. Alice owns the mineral rights on a ranch in Wyoming. B. Bart is the life tenant of a conventional life estate. C. Carl is the life tenant of a life estate where Don is the measuring life. D. Eunice owns a 10-acre parcel that she is prohibited from subdividing, according to the deed.
B. Bart is the life tenant of a conventional life estate.
Oscar is looking to buy a low maintenance residence. Which option will NOT give Oscar ownership of real property? A. Condo B. Co-op C. Deeded timeshare D. Townhome
B. Co-op
Co-op owners receive a deed to their individual unit. A. True B. False
B. False
Colin is setting up a trust for his grandchildren. He is the trustor and his grandchildren are trustees. A. True B. False
B. False
Dower and curtesy rights apply in the state of North Carolina. A. True B. False
B. False
Like a lien, an easement is a nonpossessory interest in real property and is a financial encumbrance. A. True B. False
B. False
Marcia, Jan, and Cindy own a 12-acre lot as joint tenants. They agree to partition the lot into three separate lots. Now each woman owns an undivided interest in four acres. A. True B. False
B. False
Opal lives in a co-op, and she does not pay her the required assessment. The other owners in the co-op can put a lien on her unit. A. True B. False
B. False
Opal lives in a co-op. Since her interest in the co-op is personal property, she cannot deduct real estate taxes and loan interest from her federal income tax. A. True B. False
B. False
Property tax on a cooperative building is levied against individual unit owners. A. True B. False
B. False
Sue creates a life estate for her brother Dave. When Dave dies, the estate will go to Sue's sister Tina. Dave is known as the "remainderman." A. True B. False
B. False
When comparing freehold estates and nonfreehold estates, nonfreehold estates have a lifetime ownership interest. A. True B. False
B. False
Ann and Bob each own a one-third interest in a property as joint tenants. Dave owns a one-third interest in the property as a tenant in common with Ann and Bob. When Bob dies, what happens to his interest in the property? A. It is split equally, so Ann and Dave each have a 50% interest. B. It goes to Ann, who now has a two-thirds interest. C. It goes to his heirs, leaving Ann and Dave with their one-third interest. D. It must go to probate court for a determination.
B. It goes to Ann, who now has a two-thirds interest.
Trustor Harold makes daughter Jan the trustee of some rental property for the benefit of grandson Mike. Who holds title to the property? A. Harold B. Jan C. Mike
B. Jan
Of these, which is an example of fee simple subject to condition precedent? A. Fred will automatically regain ownership of a property if the son to whom he's giving it does not comply with the conditions. B. Jodi will transfer title to a property to her granddaughter, Mindy, if and when Mindy graduates from college. C. Laurie will be able to live in the house as a life tenant as long as her father is alive. D. Mike can go to court to reclaim ownership of the property he gave to his sister if she ever tears down the barn.
B. Jodi will transfer title to a property to her granddaughter, Mindy, if and when Mindy graduates from college.
Karen and Sue's deed indicates that Karen owns a 75% interest, and Sue owns a 25% interest. Which unity is NOT present in this arrangement? A. Possession B. interest C. time D. title
B. interest
John owns property on a small pond, which gives him A) Accretion rights B) Appropriative rights C) Littoral rights D) Riparian rights
C) Littoral rights
Lenny owns a home within the city limits. In a corner of his property, he has an elaborate garden where he likes to sit quietly. He gets new neighbors who have a teenager. The teen is in a band, which practices in the garage right next to Lenny's garden most evenings until late. What activity is happening, and what right is being infringed upon? A) This is encroachment, which is infringing on Lenny's right of enjoyment. B) This is nuisance, which is infringing on Lenny's right of control. C) This is nuisance, which is infringing on Lenny's right of enjoyment. D) This is trespassing, which is infringing on Lenny's right of enjoyment.
C) This is nuisance, which is infringing on Lenny's right of enjoyment.
Jack and friend Jill buy a $250,000 house together as tenants in common. Jack puts up $200,000, and Jill puts up $50,000. The deed indicates that Jack owns 80% interest, and Jill owns 20% interest. How much of that property can Jill occupy? A. 25% B. 50% C. 100% D. Whatever is agreed upon
C. 100%
Karen and Sue buy a $200,000 house together. Karen puts up $150,000, and Sue puts up $50,000. The deed indicates that Karen owns a 75% interest, and Sue owns a 25% interest. How much of that property can Sue occupy? A. 25% B. 50% C. 100% D. Whatever they negotiate
C. 100%
Mary, Donna, Ralph, and Lou co-own a property as joint tenants. What is Ralph's interest in the property? A. 100% B. 50% C. 25% D. Whatever % is indicated in the deed
C. 25%
Henry buys a retirement home in the mountains. He never really got along with his son Mario, but he really likes Mario's wife, Joan. After Mario gets a divorce, Henry changes his will so that Joan inherits the house when he dies. What type of estate does Henry have? A. Conventional B. Defeasible fee C. Fee simple absolute D. Pur autre vie
C. Fee simple absolute
Which type of community interest ownership takes title for a specified time period each calendar year? A. Condo unit B. Co-op C. Time-share D. townhome
C. Time-share
Which is not considered real property? A) Wild berry bushes that grow in your backyard B) Tulips planted in a backyard, which bloom every year C) Magnolia trees D) Irises planted in a flower box on your deck
D) Irises planted in a flower box on your deck
Which of these are not included in the Bundle of right's that goes along with the ownership of real property? A) Control B) Disposition C) Exclusion D) Severance
D) Severance