Quiz 2

Rank the priority of these liens on a property from first to last.

1. property tax lien 2. mortgage 3. second mortgage 4. judgement lien arising a year after purchase

Ways in which restrictive covenants are created include

A restrictive clause placed in a deed conveying a single property, a declaration of covenants placed in public records when a new subdivision is created.

Which of these arrangements could be either an easement or a license?

Ability to harvest trees on a parcel of land, ability to drive on a parcel of land, ability to hunt on a parcel of land.

Which of these statements is (are) true regarding fixtures?

Altogether, there are 4 traditional rules for determining whether something is a fixture. The dominant rule for determining what is a fixture is called "intention of the parties." Fixtures are personal property that has become real property.

Which of these easements would be an easement appurtenant? Power line easement across one's land Driveway right-of-way across an adjacent parcel Sunlight easement requiring setback of adjacent buildings Easement for hunting

Driveway right-of-way across an adjacent parcel Sunlight easement requiring setback of adjacent buildings --- ADJACENT

The dominant rules in identifying fixtures are "intention of the parties" and "relation of the parties." Which statement(s) exemplify one of these rules? Removal of a counter-top kitchen stove "damages" the kitchen. Therefore, it is a fixture. Storm windows custom fitted to a house are not usable elsewhere. Therefore they are fixtures. Furnishings created in a store for a retail tenant belong to the tenant until they are abandoned. Items installed by a tenant are personal property of the tenant until they are abandoned.

Furnishings created in a store for a retail tenant belong to the tenant until they are abandoned. Items installed by a tenant are personal property of the tenant until they are abandoned.

Which of these factors would encourage a tenant to seek a tenancy for years rather than a periodic tenancy? Greater possible need to terminate quickly Greater need for the specific location Greater possible disruption from moving Uncertainty about the scale of future space needs

Greater need for the specific location Greater possible disruption from moving

Which of these items is(are) real property? Multiple select question. -Minerals yet to be extracted -A kitchen stove in a home -Land -Air space just above the ground -An oval area rug -Sofas and beds in a home

Minerals yet to be extracted, Land, Air space just above the ground

Which statements are correct concerning the impact of fixtures on real estate transactions? Multiple select question. Fixtures automatically convey as part of real property unless explicitly excepted. In misunderstandings about potential fixtures, the buyer is always considered correct. Misunderstandings about potential fixtures can be costly, time consuming and disruptive. The potential for fixtures arises in most real estate transactions.

Misunderstanding about potential fixtures can be costly, time consuming and disruptive and The potential for fixtures arises in most real estate transactions.

In contrast to traditional landlord-tenant law, three points that modern residential landlord-tenant law addresses include right of entry by the landlord. requirement that many leases be in writing. handling of deposits. requirements for notice of termination. obligations for maintenance.

Obligations for maintenance, right of entry by the landlord, handling deposits.

Which of these is an estate? Remainder interest Lien Easement Restrictive covenant

Remainder interest

An example of an easement appurtenant would be

The right of one parcel to restrict building height on an adjacent parcel

Which of these are elements of "land," as used in real property?

The surface of the earth, below the surface as far as technology can reach, above the earth as high as building technology and air traffic space permits.

Characteristics of a periodic tenancy include which of these? The time required for notice of termination is governed by state law. It is mainly used for multi tenant properties. it can be by an oral agreement. The rental payment period can be any length, including over one year. It continue until either landlord or tenant gives proper notice of termination

The time required for notice of termination is governed by state law. it can be by an oral agreement. It continue until either landlord or tenant gives proper notice of termination

The priority of liens is important because

There seldom is sufficient value at foreclosure to satisfy multiple liens, a superior lien gets complete satisfaction before other liens. In default, liens get satisfaction strictly by priority.

Characteristics of restrictive covenant include that

They are enforced through court injunction, they are enforceable only by those holding an interest in the affected property, then can impose virtually any restriction that does not violate public policy, they are created at the conveyance of a parcel of land.

An easement is the right to use another's land for a ________ and ________ purpose.

a specific and limited purpose

In Chicago, New York and other major cities, there are major buildings constructed over railroads, or former railroads, enabled by the use of:

air rights

Differences between an easement and a license include that an easement survives sale of the property involved while license does not. an easement survives death of the grantor while license does not. an easement can involve multiple parcels while a license cannot. an easement is a right while a license is permission. an easement is for a definite period of time while license is not.

an easement survives sale of the property involved while license does not. an easement survives death of the grantor while license does not. an easement is a right while a license is permission.

Home owner associations and condominium associations can invoke a lien for owner assessments. By state law or by provision in the owner documents such a lien often is automatically subordinated to:

any first mortgage lien

Restrictive covenant for a subdivision can be enforced by:

any renter in the subdivision, any owner of a parcel in the subdivision, any lender whose loan is secured by a parcel in the subdivision.

Characteristics of a tenancy for years include which of these?

can be any length, must be conveyed in writing if longer than 1 year

An important difference between a tenancy for years and a periodic tenancy is the periodic tenancy:

can be oral

In determining whether an object is a fixture, a major rule used by courts in recent times is "intention of the parties." This rule considers:

customary practice

Easements vary greatly in the extent of ______ that they impose on the encumbered land.

disruption

Which of these land uses can be (and commonly is) based on an easement in gross? Irrigation ditch Power line Reciprocal parking easement Common drive easement Railroad

ditch, power line, railroad

In a single family home transaction, which three of these articles are most likely to be a fixture? Custom drapes Free-standing bird bath Vinyl floor covering Attached basketball goal Refrigerator

drapes, vinyl floor, attached basketball goal

Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by different individuals. Interests in real property that include possessions are referred to as:

estates

The most complete interest ("bundle of rights") in real property is the:

fee simple absolute

Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value?

fee simple absolute

By the definition of real property, which of these is most likely to be included? -Movable storage shed -Mobile home with axles -Free standing garage -Office on a construction site

free standing garage

Which of these terms best characterizes the meaning of personal rights?

freedom

Which two of these personal rights sometimes conflicts with property rights in a shopping mall? -Multiple select question. -Freedom of expression -Protection of life, liberty and property -No unreasonable search or seizure -Freedom of assembly -No taking of property without just compensation

freedom of expression and freedom of assembly

The manager of a shopping mall ejecting a religious group handing out free snacks and pamphlets in the mall could represent a conflict of property rights with?

freedom of expression by the group

A utility company goes through proper legal procedure to acquire a portion of your property for a transmission line. However, it pays you only a small fraction of what the property it acquired is worth, and the city where your property is located refuses to intervene. What fundamental characteristic of rights does this violate?

government is obligated to protect your rights

Distinguishing characteristics of freehold estates are that

indefinite in length and titled estates

Which of these terms is more characteristic of a periodic tenancy than a tenancy for years?

informal and higher risk of misunderstanding

A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)?

intention of the parties

The common precedent that a refrigerator in a single family home is considered personal property while the same refrigerator in an an apartment building is a fixture represents what rule for determining fixtures?

intention of the parties

Characteristics of a lien include that:

it pledges property as security for an obligation. it can lead to sale of the pledged property at public auction. it can only be exercised if the related obligation is defaulted.

Real property, by definition includes rights in _______ and its _________ __________.

land and its permanent structures

In recent decades a "revolution" has occurred in residential leasehold law. This happened in recognition that the modern urban residential landlord is providing "residential shelter services" rather than simply the use of

land for farming

While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT:

leasehold estates are possessory interests

Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all of the following EXCEPT:

leasehold interests

An important distinction both practically and conceptually is the difference between an easement and a license. All of the following characteristics pertain to a license EXCEPT:

license is enduring

In which of these freehold estates has the right of disposition been separated from the other rights?

life estate

Which of these are among the rules used by courts to determine fixtures? Multiple select question. Value of the article Tenure of the article (length of time installed) Manner of attachment Intention of the parties Character of the article and manner of adaptation Relation of the parties

manner, intention, character, relation

The priority of a condominium association lien

often depends on state law

Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n):

ordinary life estate with remainder interest

Which of these items most likely is(are) personal property? Multiple select question. A wall-to-wall carpet, installed. An oriental rug A very large television Hurricane shutters Patio furniture

oriental rug, large television, and patio furniture

Which kind of right is older, personal or property?

property rights -- since ancient times

A lien that always exists on every private property is the

property tax lien

Which of these liens always have the same, equal, senior priority?

property tax liens, CDD liens, and assessment liens

Once senior liens such as property tax, assessment, and CDD liens have been addressed in the case of default, the priority sequence for processing the remaining liens on the property is determined by the:

relative timing of the establishment of the lien

When a developer creates a residential subdivision, the developer usually limits the activities and uses of the lots as a way of improving their value. The most common means of doing this is by:

restrictive covenants

A person who owns a residence as a life estate fails to have which of the basic rights that are elements of property?

right of disposition

You own a single family home with a rather narrow space between your's and your neighbor's house. Your neighbor, who has complained about the narrow space, simply erects a privacy fence partially on your property without your permission. What fundamental characteristic of rights does this violate, if any?

rights are non-revocable

Which of these items is (are) likely to be a fixture? Multiple select question. A refrigerator in a single-family home Standard wall-to-wall carpeting Pews that are custom designed for a house of worship Drapes purchased and installed by a renter

standard wall-to-wall carpeting and pews custom designed for house of worship

From what two sources do personal rights in the United States most directly derive?

the bill of rights and other constitutional amendments

Your "interest" in real property refers to

the bundle of rights of you hold

The reason a second mortgage lender is at more risk than a first mortgage lender is that in default

the first mortgage lender gets full satisfaction before the second mortgage lender get any.

If you own a condominium where there is a restriction on the color or character of window treatments (drapes or blinds) what aspect of property rights is being curtailed?

the right of use and enjoyment

Which two of these best demonstrate personal rights rather than property rights?

the right to invite a group to your home and the right to put election campaign signs in your front lawn

A "bundle of rights" in property is some combination of right of refusal right of disposition right of acquisition exclusive possession use and enjoyment

use, possession, disposition