Chapter 4, Unit 3 Quiz

Which of the following is NOT an example of an interest in real estate? a. A real estate agent's right to advertise a property for sale. b. A lender's right to file a lien against a property. c. A power company's right to enter a property to service equipment. d. A tenant's right to exclude others.

a. A real estate agent's right to advertise a property for sale.

What are the two types of fee simple estate? a. Absolute and defeasible. b. Absolut and Smirnoff. c. Absolved and Repentant. d. Abseil and Climb.

a. Absolute and defeasible.

If a tenant occupies a leased property without the consent of the landlord after a lease expires, the type of estate that results is called a. an estate at sufferance. b. a holdover estate. c. an adverse leasehold. d. a hostile leasehold.

a. an estate at sufferance.

To own an interest in real estate, a person must own a. any combination of the bundle of rights. b. the right to use the real estate. c. legal title to the real estate. d. the complete bill of rights.

a. any combination of the bundle of rights.

The distinguishing feature of a condition subsequent estate is a. the grantor must retake possession within a certain time frame if the grantee violates a restriction. b. the grantor automatically regains title if the grantee violates a restriction. c. the estate passes to a third party if the grantee violates a condition. d. the grantee can impose new restrictions on the grantee's use of the property even after title has passed.

a. the grantor must retake possession within a certain time frame if the grantee violates a restriction.

An estate from period-to-period will continue as long as a. the tenant makes, and landlord accepts, regular rent payments. b. the term specified in the lease. c. the period is less than a year. d. the landlord has not given notice of termination.

a. the tenant makes, and landlord accepts, regular rent payments.

A life estate is classified as which of the following? a. An estate in fee simple b. A freehold estate c. A defensible fee d. An estate for years

b. A freehold estate

States that do not have dower and curtsey usually have a. Community property laws and full share laws. b. Community property laws and elective share laws. c. Community property laws and election decree laws. d. Community property laws and final decree laws.

b. Community property laws and elective share laws.

Why is a fee simple estate called the highest form of ownership interest? a. It cannot be taken by eminent domain or have a lien placed against it. b. It includes the complete bundle of rights with virtually unlimited duration. c. It extends upwards to infinity. d. It is not subject to estate taxes when passed on to legal heirs.

b. It includes the complete bundle of rights with virtually unlimited duration.

Which of the following actions is an expression of the public interest known as police power? a. Enforcing of parking regulations on residential streets b. Passage of zoning ordinances to control land use c. Leasing of office space for government use d. Collection of sales tax on purchases of consumer goods

b. Passage of zoning ordinances to control land use

Ownership of which of the following is used to define an "interest in real estate?" a. Deed b. The bundle of rights c. Acreage d. Attachment

b. The bundle of rights

How does a legal life estate differ from a conventional life estate? a. The legal life estate is created by a grant, while the conventional estate is created by custom. b. The legal life estate is created by statute while the conventional life estate is created by a grant. c. The conventional life estate focuses on protecting the rights of surviving family members while the legal life estate focuses on laws of descent. d. The conventional life estate does not have to be described in a written document, while the legal life estate does.

b. The legal life estate is created by statute while the conventional life estate is created by a grant.

Which best describes a tenancy at sufferance? a. When the tenant has received oral permission to stay. b. When the tenant stays beyond her lease without consent. c. When the tenant has received notice to terminate a lease. d. When the tenant's lease has a definite termination date.

b. When the tenant stays beyond her lease without consent.

Ownership of some combination of the bundle of rights defines a. an undivided interest. b. an interest in real estate. c. an estate in land. d. a private interest.

b. an interest in real estate.

Of the two kinds of fee simple estate, the kind that is a perpetual estate with no usage restrictions is the a. fee simple aggregate. b. fee simple absolute. c. fee simple defeasible. d. fee simple determinable.

b. fee simple absolute.

To take a property by eminent domain, the government must show that a. the owner is not putting the property to its highest and best use. b. the property will be used for the public good. c. the property has limited value on the open market. d. the owner agrees to part with the property.

b. the property will be used for the public good.

The grantor of a life estate names a third party to receive the title when the life tenant dies. What will the third party hold? a. A less-than-freehold estate. b. A third party estate. c. A remainder estate. d. A pass-along estate.

c. A remainder estate.

An actor rented a house from May 15 to August 5 while she was working on location. What kind of estate does she possess? a. Tenancy from period to period b. Estate at will c. Estate for years d. Freehold estate

c. Estate for years

Once the life tenant dies, the life estate portion reverts back to whom? a. Grantee b. Life tenant c. Grantor d. Revisionary

c. Grantor

What is the difference between a fee simple determinable estate and a fee simple condition subsequent estate? a. There is no reversion of ownership in determinable estate. b. There is no reversion of ownership in condition subsequent estate. c. Reversion of ownership is automatic in the determinable estate. d. Reversion of ownership is automatic in the condition subsequent estate.

c. Reversion of ownership is automatic in the determinable estate.

If the duration of an owner's rights in an estate cannot be determined, the owner possesses a. an indeterminate legal estate. b. a leased fee simple estate. c. a freehold estate. d. a leasehold estate.

c. a freehold estate.

An interest in real estate that does not include the right to possess is considered a. a leasehold interest. b. a fee simple estate. c. an encumbrance. d. a tenancy.

c. an encumbrance.

If an estate includes the complete bundle of rights and unlimited duration of tenancy, it is a a. simple life estate. b. determinable estate. c. fee simple estate. d. legal life estate.

c. fee simple estate.

Unlike a determinable estate, the grantor of a condition subsequent estate a. has no control over how the property is used. b. automatically retakes ownership if restrictions are violated. c. may repossess the property within a limited time frame if restrictions are violated. d. is limited in the kind of restrictions that can be placed on the grantee.

c. may repossess the property within a limited time frame if restrictions are violated.

An estate at will a. cannot be terminated. b. is terminated only if so stated in the lessee's last will and testament. c. terminates on the death of lessor or lessee. d. terminates on the date specified in the lease agreement.

c. terminates on the death of lessor or lessee.

Bill and Bob share ownership of a real property, but neither owns a physical portion of the property. The kind of interest they each own is an a. invisible interest. b. intangible interest. c. undivided interest. d. insipid interest.

c. undivided interest.

In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant? a. Fee simple absolute b. Land Trust c. Life estate with a remainderman d. Fee simple defeasible

d. Fee simple defeasible

Which of the following statements about eminent domain is TRUE? a. It can only be applied in cases where the owner agrees with the government's superior claim. b. The government agency exercising the power is under no obligation to compensate the owner. c. The government may take a privately-owned property and use it for any purpose whatever, including reselling for a profit. d. No private property is exempt from the exercise of this power.

d. No private property is exempt from the exercise of this power.

What is "escheat?" a. The principle that gives governments the right to levy real estate taxes. b. The process by which a squatter can obtain legal title to real estate. c. The process by which a municipality condemns land and takes it for public use. d. The process by which ownership of real estate reverts to the state when there are no legal owners.

d. The process by which ownership of real estate reverts to the state when there are no legal owners.

Which of the following rights is conveyed with a leasehold estate? a. The right to exclude everyone from the premises. b. The right to encumber the fee interest. c. The right to sell the premises. d. The right to possess and use the premises.

d. The right to possess and use the premises.

If a party has an interest in real estate that includes the right of possession, the party owns a. an encumbrance. b. a fractional part of an estate. c. an enjoinment. d. an estate in land.

d. an estate in land.

The distinguishing feature of a leasehold estate is a. ownership of an interest by a tenant. b. temporary ownership of the full bundle of rights in a property. c. unlimited ownership of one right in the bundle of rights in a property. d. duration limited by a lease term.

d. duration limited by a lease term.

An estate is transferred with the stipulation that alcohol will never be consumed on the premises or the seller will take back the property. This kind of estate is a a. fee simple absolute. b. pur autre vie. c. conventional remainder. d. fee simple defeasible.

d. fee simple defeasible.

Encumbrances are examples of a. illegal interests. b. eminent domain. c. public interests. d. private interests.

d. private interests.