Real Property Characteristics, Definitions, Ownership, Restrictions, and Transfer National Questions

A township contains

36 sections. The answer is 36 sections. Each section is 1 square mile. Each township is 6 miles square and contains 36 square miles, so a township contains 36 sections. Each section is 1 square mile, or 640 acres. The 36 square miles of a township are 23,040 acres.

How many acres are in a lot that is 1/4 of a mile wide by 1/4 of a mile long?

40 acres The answer is 40 acres. 1,320 feet (1/4 (.25) of 5,280 feet {one mile}) × 1,320 feet = 1,742,400 square feet ÷ 43,560 (square feet in an acre) = 40 acres

The following legal description contains how many acres: the S½ of the SE¼ of the NW¼ of the NE¼ of Section 7?

5 acres The answer is 5 acres. To calculate acres in a survey system legal description, multiply all the denominators and divide that number into 640 acres. In this problem, multiply all denominators: 2 × 4 × 4 × 4 = 128. Then divide 640 by 128: 640 (acres in a section) ÷ 128 = 5 acres.

How many acres are in a parcel described as the NW¼ of the SE¼ and the S½ of the SW¼ of the NE¼ of Section 4?

60 acres The answer is 60 acres. To calculate acres in a survey system legal description, multiply all the denominators and divide that number into 640 acres. In this problem, multiply denominators for the first part: 4 × 4 = 16; 640 acres ÷ 16 = 40 acres. Multiply denominators for the second part: 2 × 4 × 4 = 32; 640 ÷ 32 = 20 acres. Then add 40 acres + 20 acres = 60 acres.

A section in the rectangular survey system contains

640 acres per section. The answer is 640 acres per section. Each township contains 36 sections, and each section is 1 square mile, or 640 acres per section.

The N½ of the SW¼ of a section contains how many acres?

80 acres The answer is 80 acres. A section has 640 acres. A section is divided into halves (320 acres) and quarters (160 acres). Each of those parts is further divided into halves and quarters. In this problem, a ½ of a ¼ of 640 equals 80 acres. 2 × 4= 8 640 ÷ 8 = 80 acres

The construction of a family room, additional bedroom, and extra bath has been completed on the owner's home. Before the addition can be used, which of the following is TRUE?

A certificate of occupancy must be issued. The answer is a certificate of occupancy must be issued. A certificate of occupancy grants permission to occupy a completed building structure after it has been inspected. A building inspector may inspect the plumbing during the actual building process before completion. A building permit is issued before construction begins. A conditional use permit does not relate to actual building construction but permits use of a property for a use related to, but not permitted by, zoning ordinances.

A buyer learns from his real estate professional the ownership rights of the seller's property will continue forever and that no other person claims to be the owner or has any ownership control over the property other than the seller. The buyer will have what type of estate upon closing?

A fee simple absolute estate The answer is fee simple absolute estate. Fee simple ownership is absolute ownership; the buyer has all rights to the property. A fee simple qualified fee estate exists when an estate is qualified by a special limitation, and may end if the current owner fails to comply with the limitations set on the estate by the former owner. A leasehold estate is an estate of possession only by a tenant. A life estate is a freehold estate limited in duration to the life of the owner or to the life of some other designated person or persons.

What is the difference between a general lien and a specific lien?

A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property. The answer is a general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property. A general lien affects all of a debtor's property, both real and personal. A specific lien affects only a particular piece of real or personal property. Both general and specific liens may be enforced in court.

A title search for a property under contract has revealed several outstanding liens against the property. Which of the following liens has highest priority?

A property tax lien for the current year The answer is a property tax lien for the current year. Tax liens have priority over previously recorded liens and over a special assessment, which will also take priority over previously recorded liens. The priority of the other liens will be based on the dates they were recorded. Liens recorded first will have a first right to payment or priority.

Which of the following is a specific, involuntary lien?

A real estate property tax lien The answer is a real estate property tax lien. A real estate property tax lien is always on a specific piece of real estate; it happens without permission of the property owner and so is involuntary. Income tax liens, estate tax liens, and judgment liens are general, as they are levied against both personal and real property owned by a debtor but do not take priority over other liens.

Which of the following is a lien on real estate?

A recorded mortgage The answer is a recorded mortgage. A recorded mortgage is a voluntary, specific lien on real estate. Easements, encroachments, and restrictive covenants are all encumbrances and not liens. An encroachment is an intrusion of an improvement or other real property onto another's property. An easement is a right of use in another's property. A restrictive covenant is a limitation on the use of property imposed on a past or current owner and binding on a future owner of the property.

When is a certificate of occupancy issued?

After a newly constructed building has been inspected and found satisfactory by the municipal inspector The answer is after a newly constructed building has been inspected and found satisfactory by the municipal inspector. The certificate of occupancy, granted by an inspector from the jurisdiction, is necessary before a newly constructed building can be used. The certificate can only be issued after construction has been completed. The certificate is not used in determining a variance or a conditional use permit.

A bachelor died owning real estate that he devised by his will to his niece. When will full title and possession pass to his niece?

After his will has been probated The answer is after his will has been probated. The niece is regarded as the owner immediately upon the testator's death, but she will not receive possession (as a devisee) until probate proceedings are complete.

A widow with no children owns property that she devises by her will to her favorite niece. The widow dies. When will full title and possession of the property pass to her niece?

After the widow's will has been probated The answer is after the widow's will has been probated. While legally the ownership of the property passes to the niece upon the widow's death, full title and possession of the property requires probate. Probate is a legal proceeding verifying the validity of a will and accounting for the decedent's assets.

An example of a voluntary alienation of a property is?

An owner selling the property The answer is an owner selling the property. Voluntary alienation is the legal term for the voluntary transfer of title, such as when the owner sells the property. Condemnation, foreclosure, and adverse possession are examples of involuntary alienation. Involuntary alienation takes place when property is transferred against the owner's will.

A woman owns one of 20 town houses in a new development in fee simple, along with a 5% ownership share in the parking facilities, recreation center, and grounds. What type of property does he own?

Condominium The answer is condominium. When a person owns a unit in fee simple and a percentage of the rest of the development in common with the other unit owners, he holds ownership to a condominium. In a cooperative, a person does not own in fee simple but holds a proprietary lease on a unit and shares of stock in the cooperative corporation. A time-share is a real property interest with the right to use the facilities for a specified period of time (usually a week). In a land trust, title to real estate is conveyed to a trustee while a beneficiary retains management and control of the property.

An owner has purchased a fee simple interest in a lakefront cottage along with 6% ownership of the parking lot, laundry room, and boathouse. What kind of ownership interest has the owner bought?

Condominium unit The answer is condominium unit. Condominium owners have a fee simple interest in their property, along with an undivided interest in the common elements as a tenant in common of the condominium. In a time-share, the owners own a right of possession for a specified period of time, usually on a weekly basis. In a cooperative unit, the tenant-owners have a share in the cooperative and proprietary leases to their units.

Which of the following is NOT an example of governmental power? A) Taxation B) Declaration C) Eminent domain D) Police power

Declaration The answer is declaration. The four governmental powers that limit private rights on land are represented by the acronym PETE police power, eminent domain, taxation, and escheat. Declaration is used to establish common interest property such as condominiums.

Which of the following about a condominium is FALSE?

Each owner has a proprietary lease with the association for their own unit. The answer is each owner has a proprietary lease with the association for their own unit. In a condominium, each owner has fee simple title to the unit. Owners of cooperatives have proprietary leases. In a condominium each owner owns the common elements as tenants in common with all other unit owners. Each owner receives a separate real estate tax statement. Each owner of a condominium unit must carry their own property casualty insurance on the individual unit based upon the condominium declaration. The association carries insurance for the common elements.

A landowner divided much of her land into smaller parcels and has recently sold a tract adjacent to a nature preserve. The preserve and the tract that was sold are landlocked and cannot be entered except through one of the other tracts still belonging to the landowner. The buyer of the tract will probably be granted what type of easement by a court action?

Easement by necessity The answer is easement by necessity. An easement by necessity arises when there is no ingress or egress (entry or exit) from one piece of property without crossing over a parcel of land owned by another. An easement in gross permits a right-of-way for an individual or company to use another's property. An easement by prescription is acquired when a person makes continuous and visible use of another's land for a certain period of time without the owner's permission. A conditional use permit is granted by a municipality to a property owner to allow a special nonconforming use of property in a residential district.

Which statement about encumbrances on real estate is TRUE?

Easements and encroachments are always encumbrances on real property. The answer is easements and encroachments are always encumbrances on real property. An encumbrance is a charge or claim that attaches to real property and lessens its value or impairs its use. An easement is a right to use the land of another for a specific purpose. An encroachment occurs when a building or structure illegally extends onto another's property or beyond legal property lines. Both easements and encroachments are encumbrances. An encumbrance transfers with a property when the property is transferred or sold. Encumbered land may be sold to anyone who is willing to accept these limitations that runs with the land. An easement on a parcel is an encumbrance to the owner of the land but an appurtenance (something of value) to the owner/holder of the easement.

A property owner conveys a life estate to her uncle and names her son as remainderman. On the death of the uncle, the son will have what type of estate?

Fee simple absolute estate The answer is fee simple absolute estate. The son holds a remainder interest in the property, and will have a fee simple absolute estate upon the death of the uncle, the life tenant. A qualified fee estate is limited by specific deed conditions created by the deed. A reversionary interest exists when a life estate will revert back to the original owner at the death of the life estate owner or some other person. The son as the remainderman holds a remainder interest during the uncle's life.

Which lien affects all real and personal property of a debtor?

General The answer is general. A general lien attaches to all of a debtor's real and personal property as opposed to a specific lien, which affects only a particular piece of real or personal property. A voluntary lien, such as a mortgage, is placed on a property with the consent of the owner. An involuntary lien is imposed upon a property without the consent of the owner.

A landowner constructed a building seven stories high. Several years later, the municipality changed the zoning ordinance, prohibiting buildings that exceed six stories in height. Which of the following is TRUE regarding the existing seven-story building?

It is a nonconforming use. The answer is it is a nonconforming use. A building that existed prior to the current zoning ordinance may be allowed to continue legally with some restrictions. The owner does not need to obtain a variance or a special use permit for the building. A conditional or special use permit allows a property to be used for a common good not currently allowed in zoning ordinances. A variance is permission to use a property in a way expressly prohibited by zoning ordinances.

Which of the following best describes fee simple absolute estate?

It is the maximum estate in land and lasts forever. The answer is it is the maximum estate in land and lasts forever. Fee simple absolute estates, which have the largest (maximum) bundle of rights, are typically transferred from one owner to another when title is passed so they continue on forever. A deed condition would create a fee simple defeasible or qualified estate

The four unities of possession, interest, time, and title are associated with which of the following?

Joint tenancy The answer is joint tenancy. A joint tenancy can only be created by an intentional act and requires the four unities—equal possession, interest, and title which must all occur at the same time (PITT)—to be present. Severalty ownership is the sole possession of a property by one owner without a need for any unity of interests with other parties. Tenants in common have undivided fractional interests in a property, and their fractional interests may be different. Community property is one of the ways married couples may own property together.

Two men are co-owners in fee simple of a small office building. One of the men dies intestate and leaves nothing to be distributed to his heirs. The surviving owner is neither related to the deceased owner nor his creditor. What would explain how the surviving owner acquired the deceased owner's interest in the office building?

Joint tenancy The answer is joint tenancy. Upon the death of an owner in a joint tenancy, all remaining interests do not pass to the heirs of the deceased owner or according to the will but to the surviving joint tenant or tenants. Reversionary rights and remainder interests refer to the future right to an estate in real property. Adverse possession occurs when a person acquires title to another's property by means of open, hostile, and continuous possession over time.

A parcel of property was purchased by two friends. The deed they received from the seller at closing conveyed the property by name to each of the two friends, with equal shares and interest. Upon death of either owner the interest and shares will automatically become those of the other co-owner. What form of title and ownership to the friends has?

Joint tenants The answer is joint tenants. The deed clearly stated the requirements of joint tenancy which are PITT—equal possession, interests, title all taken at the same time. Once this is established the rights of survivorship are created. If joint tenancy is not clearly stated in the deed, grantees would take title as tenants in common. Friends are unable to hold community property or be tenants by the entirety as those forms of ownership are available only for married couples.

Which of the following would be classified as a general lien?

Judgment The answer is judgment. A judgment lien is not a lien just on specific assets but on the assets of the debtor in general. A judgment applies to both the personal and real property of the debtor. Property tax liens are specific liens that have priority over other liens. A mechanic's lien may be filed against real property by a contractor or supplier for nonpayment of work or supplies. A property tax lien may be filed by a government for the nonpayment of real estate property taxes.

Under which type of lien are both the real property and the personal property of the debtor sold to pay the debt?

Judgment lien The answer is judgment lien. A judgment is a general, involuntary, equitable lien on both real and personal property owned by the debtor. A mechanic's lien is a specific lien against real property filed by a contractor, subcontractor, or supplier when an owner or contractor has not paid for work or supplies for improvements on a property. A real estate tax lien is a statutory lien against real property for nonpayment of taxes. An assessment lien is a special assessment levied on real property to fund public improvements to property.

A general contractor recently filed suit against a homeowner for nonpayment. The contractor now learns that the homeowner has listed the property for sale with a real estate broker. In this situation, which of the following will the contractor's attorney use to protect the contractor's interest?

Lis pendens The answer is lis pendens. A recorded lis pendens (a notice of action pending) warns any potential purchaser that a property is subject to a pending legal action. This notice would prompt a buyer to consider very carefully whether to proceed, but it would not absolutely prevent it. The contractor may also have the right to use a mechanic's lien to obtain payment. The lis pendens would give notice until the mechanic's lien was in place. An assessment is a special levy for a definite purpose, such as adding curbs or sewers in a neighborhood. A mortgage lien is a voluntary specific lien the borrower signs.

The owner has a large parcel of land surveyed into lots and streets and files a subdivision plat. Each lot can be legally described by use of which of the following?

Lot and block system The answer is lot and block system. The lot and block system is often used to describe property in subdivisions. The rectangular government survey system divides land into rectangles and describes those rectangles with principal meridians and base lines. The metes-and-bounds system outlines the perimeter of a parcel by starting at one point and ending at the same point. A street address is not a legal property description.

Which of the following is a voluntary, specific lien?

Mortgage lien The answer is mortgage lien. A mortgage lien is created voluntarily by the borrower. The borrower names specific property in the mortgage agreement that serves as security for the lender. A mechanic's lien and a property tax lien are both examples of specific, involuntary liens placed on real property without the owner's consent. An IRS tax lien is a general, involuntary lien, which will not have priority over other liens.

Which of the following is a voluntary lien?

Mortgage lien The answer is mortgage lien. A mortgage loan is created intentionally by the owner's action in acquiring a mortgage. It is a voluntary lien. Estate tax liens, real estate tax liens, and judgment liens are all involuntary liens imposed without the owner's consent.

A couple declined to purchase an owner's title policy at closing, but the lender required them to purchase a mortgagee's title policy. Six months after the closing, a man knocked on their door. He explained that he had an ownership interest in the property because his spouse sold the property while he was in another country. The man at the closing table, who said he was the spouse, was not. If the man's claim is true, are the buyers covered under the lender's policy?

No, because the buyers are not covered by the mortgagee's policy. The answer is no, because the buyers are not covered by the mortgagee's policy. The couple decided not to purchase an owner's title policy, which would have covered them in this situation. The mortgagee's or lender's title policy protects only the lender against the forgery.

Which of the following is NOT a form of co-ownership?

Ownership in severalty The answer is ownership in severalty. Ownership in severalty occurs when a property is owned by one individual or corporation. In a tenancy in common, each co-tenant owns an undivided fractional interest in a property. Tenancy by the entirety is a form of joint ownership by a married couple that allows the surviving spouse to acquire full ownership of the property upon the death of one of the spouses. Community property consists of personal and real property acquired by either spouse in a marriage and belonging to both parties to the marriage.

Which tax targets homeowners in particular?

Real property tax The answer is real property tax. A real property tax (ad valorem tax) taxes homeowners on the value of their real estate. A sales tax is a tax on the price of an item purchased. A personal property tax (such as the tax on a boat) is a tax levied by a government entity on personal property. A luxury tax is a tax levied on expensive, luxury items other than real estate.

Which of the following terms refers to sole ownership by one person?

Severalty The answer is severalty. Severalty ownership is ownership by one person severed and cut-off from all others. Tenancy in common and tenancy by the entirety are forms of joint ownership. Community property is personal or real property belonging to spouses according to state laws.

A parcel of property was purchased by two friends. The deed they received from the seller at closing conveyed the property by name to each of the two friends without further explanation. The friends took title as which of the following?

Tenants in common The answer is tenants in common. When joint tenancy is not clearly stated in the deed, grantees take title as tenants in common—to avoid the results of accidental joint tenancy. Friends are unable to hold community property or be tenants by the entirety as those forms of ownership are available only for married couples.

Four friends decide to purchase an investment property as co-owners and take title as joint tenants. All of the following are true EXCEPT A) all four will have equal interests in the property. B) the four friends will each receive a separate deed for their share. C) all four will acquire their interests at the same time. D) all four will enjoy equal rights of possession of the property.

The answer is the four friends will each receive a separate deed for their share. All concurrent ownership is created by one deed, which will establish either joint tenancy or tenants in common. Additionally, joint tenancy requires that four unities must be present: possession, interest, title, and time (PITT).

Which of the following is TRUE of condominium ownership?

The common elements cannot be sold separately. The answer is the common elements cannot be sold separately. Although an individual unit owner owns an interest in the common elements as a tenant in common, they may not be sold separately by a unit owner; unit owners do not have the same right to partition that other tenants in common have. Individual owners pay the real estate taxes for their units. Condominium owners may will or mortgage their fee simple ownership in a condominium.

A property owner conveys a life estate to his brother for the brother's lifetime and designates his cousin as the person to whom the property will pass when the life estate ends. When the brother dies, what happens to the property?

The cousin automatically becomes the fee simple owner of the property. The answer is the cousin automatically becomes the fee simple owner of the property. The property owner named his cousin as the remainderman, the one to whom the property would pass upon the death of his brother. On his brother's death, the life estate ends, and the property automatically passes to the cousin. If the property owner does not choose a remainderman when conveying the life estate to his brother, ownership reverts back to the original property owner or to his heirs (or other individuals specified in the property owner's will).

A property is owned by three cousins as tenants in common. If one of the cousins dies without a will, to whom will his interest pass?

The deceased cousin's heirs. The answer is the deceased cousin's heirs. Death of a tenant in common would usually cause property to pass according to the decedent's will. Because the cousin died with no will, his property will pass to those persons identified in his state's laws of decent as heirs. The property would not pass on to the state. The other two cousins will retain their own fractional interests in the property and remain tenants in common with the deceased cousin's heirs.

The buyer has been informed in the title work that there is an easement on the property he has under contract. At closing what will happen with the easement?

The easement will transfer with the title with the buyer's only choice being to terminate the purchase contract if the easement is an issue. The answer is the easement will transfer with the title with the buyer's only choice being to terminate the purchase contract if the easement is an issue. Easements are non-revocable rights so the seller or buyer cannot terminate or revoke the easement. The buyer's only choice is to take the property with the easement or terminate the purchase contract.

The priority of liens refers to which of the following?

The order in which liens will be paid if property is sold to satisfy a debt The answer is the order in which liens will be paid if property is sold to satisfy a debt. The priority of liens refers to the order in which claims against the property will be paid off. In general, the rule for priority of liens is ''first to record, first in right." The priority is created by the recording date, but property taxes and special assessments are exceptions to the rule, as they take priority over all other liens, regardless of when the liens were recorded.

For land to be taken by the government under its right of eminent domain, which of the following must apply?

The taking must be for a public purpose. The answer is the taking must be for a public purpose. Under the right of eminent domain, the government can acquire privately owned real estate for public use, which is defined very broadly. A government exercises this right through the process of condemnation, not through the passing of a statute. Adverse possession involves a person, not a government, taking ownership of a property through open and continuous use of a property. Under eminent domain, a government must work to negotiate with a property owner for the fair value of a property. Constructive notice is the legal presumption that a person through due diligence may be informed of a property's ownership.

An owner purchased an interest in a house in a resort beach community. The owner is entitled to the right of possession only between July 10 and August 4 of each year. Which type of ownership MOST likely has been purchased?

Time-share The answer is time-share. The owner holds an interest in property for a stated time each year, sharing the property according to a specified time plan. The owner's interest is a time-share. The owner of a condominium or a cooperative has a right of possession for as long as the ownership is not transferred. An individual does not own property through a trust, as a trust holds title to the real estate.

Which of the following would create a lien on real estate?

Unpaid mortgage loan The answer is unpaid mortgage loan. A mortgage agreement creates a voluntary, specific lien and is an encumbrance on the property. However, encumbrances such as easements and encroachments do not involve liens. An encroachment is an intrusion of an improvement or other real property onto another's property. An easement is a right of use in another's property. A license is a personal, revocable privilege.

Which of the following liens usually would be given highest priority in disbursing funds from a foreclosure sale?

Unpaid real estate property taxes The answer is unpaid real estate property taxes. Unpaid real estate property taxes have first priority and "move to the head of the line" when property is liquidated at a foreclosure sale. They are a statutory lien with priority over liens created by contract, such as mortgages. Unpaid real estate property taxes take priority over mechanic's liens and judgments, no matter when those liens were recorded.

A property owner conveys a life estate to his cousin for the duration of the life of the cousin's grandfather. If the cousin were to die before his grandfather, how long may his heirs have possession of the property?

Until the grandfather dies The answer is until the grandfather dies. The cousin's life estate is a life estate pur autre vie, a life estate based on the lifetime of another person, his grandfather. The cousin's heirs may possess the property until the grandfather dies. On the grandfather's death, the life estate ends.

A homeowner conveys property to her nephew with a deed. The nephew then recorded the deed. When did title to the property actually transfer or pass to the nephew?

Upon delivery and acceptance of the deed The answer is upon delivery and acceptance of the deed. Title is transferred upon delivery and acceptance of the deed. At that moment, the deed is binding between the parties. When the nephew later records the deed, he is then protected against claims of third parties. Contracts do not transfer title. A valid deed must contain a clause acknowledging that the grantor has received consideration, but the consideration in itself does not transfer the title to the property.

A woman has permission from her friend to hike on his property during the autumn months. Her friend has granted her

a license. The answer is a license. A license is a personal revocable right to use another's property with permission of the owner. The permission is personal, nontransferable, and can be revoked at any time. A conditional use permit is granted by a city or municipality to a property owner to allow a special nonconforming use of property in a residential district. Riparian rights give to owners of land along the course of a river, stream, or similar body of water the rights to use the water according to state or local laws. An easement by necessity is created by a court when an owner sells a parcel of land that has no access to a public way except over the seller's remaining land.

When a lien against a parcel of real estate may result from a lawsuit currently before the court, someone examining the public records would look for

a lis pendens. The answer is a lis pendens. A lis pendens is a notice of a possible future lien and is filed because there is often considerable delay between the time a lawsuit is filed and the time final judgment is rendered. The chain of title is the record of a property's ownership and would not indicate a pending action on the property. A suit to quiet title is a court action to establish ownership of a property when a gap or cloud exists in the chain of title. A judgment lien is already recorded in the county in which the property is located and does not indicate any other pending liens.

When defining ownership estates, the term estate refers to

a person's legal rights in the land or property. The answer is a person's legal rights in the land or property. With respect to property ownership, the word estate refers to a person's legal use or the bundle of rights in land which, depending upon the type of estate, include the right to possess, transfer, encumber, et cetera. Estates are not tied to the physical quantity or the value of the land itself. A fee simple estate is the highest estate one can hold in land since it has the most or maximum rights to the land.

Title insurance covers defects found after closing and not listed on the title commitment. Hidden defects found after closing are covered by title insurance. This would include all of the following EXCEPT

a recorded mortgage satisfaction document. The answer is a recorded mortgage satisfaction document. A recorded mortgage satisfaction document is a public notice, not a hidden defect. Title problems occur when there is a hidden mistake in a prior deed, will, mortgage, or other document that may give someone else a valid legal claim against a property. An incorrect legal description, wrong name on a recorded deed, or a claim to ownership by the spouse of a former owner could be hidden defects in title to a property.

All of the following are variances EXCEPT

a retail store in a residential neighborhood. The answer is a retail store in a residential neighborhood. A variance is permission obtained from zoning authorities to use a structure or building in a way that is prohibited by current zoning laws. Fences built beyond 6 feet height, building into setbacks or over height limits are all examples of variances. A retail store in a residential neighborhood is nonconforming use. A nonconforming use is a use of real property originally allowed but no longer conforming to current zoning laws.

A married couple owns a farm together, with the right of survivorship. Their ownership is MOST likely

a tenancy by the entirety. The answer is a tenancy by the entirety. A married couple, in certain states, may use a special form of co-ownership called tenancy by the entirety. Each spouse has an equal, undivided interest in the property, with the right of survivorship. Severalty ownership occurs when real estate is owned by one person only. Tenancy in common and community property forms of ownership do not include the right of survivorship.

General real estate property taxes are also known as

ad valorem taxes. The answer is ad valorem taxes. General real estate property taxes are based on the value of the property being taxed and are known as ad valorem taxes. They are specific, involuntary liens. Special assessments are taxes levied on real estate to fund public improvements beneficial to the property. Real estate property taxes are not appropriation funds taken from local or state revenues. Real estate property taxes are specific, involuntary liens. Voluntary liens, such as mortgages, are placed on real property with the consent of the owner.

General real estate property taxes levied for the operation of the government are called

ad valorem taxes. The answer is ad valorem taxes. The general real estate property taxes, the ad valorem tax, creates a specific lien on a particular property. The word general in this context distinguishes this tax from the special assessment tax, a tax levied on real estate to fund a public improvement beneficial to the property.

A farmer bought acreage in a distant county but never went to see the acreage and did not use the land. After the purchase, a woman moved her mobile home onto the land, drilled a well, and lived on the property for twenty years. The woman may become the owner of the land if she has complied with the law regarding

adverse possession. The answer is adverse possession. The woman may file an action in court to receive title to the property if she has complied with state laws. Her possession must have been open, notorious, continuous and uninterrupted, and hostile and adverse. Adverse possession is a form of involuntary alienation. A quitclaim deed is frequently used to correct an error in a deed or to release an interest in a property. Prescriptive easements, while similar to adverse possession, are used to gain permanent access to the property, not title.

The freehold estates of fee simple absolute, fee simple defeasible, and a life estate have all of the same attributes EXCEPT A) owners have the right of possession, which can be conveyed to a tenant via a lease. B) ownership of the estate is passed by a deed. C) all owners may convey title via a will to their heirs. D) all owners are obligated to pay the property expenses and taxes.

all owners may convey title via a will to their heirs. The answer is all owners may convey title via a will to their heirs. The owner of a life estate may not transfer their ownership after death since their ownership is limited to a lifetime. All freehold estates are created in the deed and since the holder then owns the property they are obligated to pay the expenses and taxes. All owners may lease the property; a life tenant's lease would last only as long as the life estate lasts.

A title search is an examination of

all the public records to determine whether any defects exist in the chain of title. The answer is all the public records to determine whether any defects exist in the chain of title. Based on the title search, an abstract of title or title insurance commitment is prepared that includes all liens and encumbrances to the property and lists all records searched. The abstract or title commitment does not indicate forgeries and interests in property that are unrecorded or that could be discovered by inspection of the property itself.

Two women own a property together. One dies and the other now owns the property with the co-owner's heirs. The two women owned the property

as tenants in common. The answer is as tenants in common. Under tenancy in common, when a co-tenant dies, the tenant's undivided interest passes according to the will. In this case, either the deceased owner died intestate, and the state law of decent gave her interest to her heirs or she willed her undivided interest in the property to her heirs. In a joint tenancy, if one of the women died, the other would enjoy the right of survivorship and own the property in severalty. If the two original owners had formed a corporation to own the property, the death of one would not affect title to the property, which would belong to the corporation. Only married couples are allowed to own property as tenants by the entirety, and the question did not state the woman were married.

The primary survey line running east and west in the rectangular survey system is the

base line. The answer is base line. The base lines run east and west in a rectangular survey system, while the principal meridians run north and south. Township lines run east and west; range lines run north and south. Sections are created through the intersection of these lines.

Because a couple no longer needs their large house, they decide to sell it and move into a cooperative apartment building. In a cooperative, they will

become shareholders in a corporation. The answer is become shareholders in a corporation. In a cooperative, a corporation holds title to the land and building and offers shares of stock to inhabitants of the cooperative's units. Owners in a cooperative occupy their units through proprietary leases, and their interests are treated as personal property. If the couple were to move to a condominium complex, they would own and finance their individual unit. Condominium ownership provides fee simple title to each individual unit, while a cooperative is ownership in the corporation, which owns the property.

A wooded area with biking and hiking trails is situated between old cotton mills and a housing development. This area is considered a

buffer zone. The answer is buffer zone. Buffer zones, such as parks and hiking trails, are used by municipalities to screen residential areas from nonresidential zones. A variance is permission to build a structure or conduct a use expressly prohibited by zoning ordinances. A utility easement is an interest in land permitting the land to be used for utilities such as electrical, gas, or water lines. A nonconforming use exists before zoning ordinances that currently prohibit such use.

A buyer purchased a property but did NOT record the deed. Under these circumstances, the

buyer's interest is not fully protected against third parties. The answer is buyer's interest is not fully protected against third parties. Properly recording a deed in the public record serves as constructive notice to the world of the buyer's rights or interests in the property. If a buyer does not record the deed, a third party may make a claim on the property. Not recording the deed does not affect the validity of the transfer or of the deed to the property, as recording is not an essential element to create a valid deed.

A joint tenancy with right of survivorship is created

by a deed. The answer is by a deed. Joint tenancy, like all ownership, is not implied by law or through any action. All tenancy is created when the deed in conveyed to the grantee. To create joint tenancy the deed must specifically identify the parties as joint tenants. When a deed does not indicate the form of tenancy and two or more people acquire title to property, the new owners are presumed to be tenants in common. Joint tenancy is the right to survivorship, so that when an owner dies, the interest transfers directly to the surviving co-tenants, not heirs. Signature by spouses does not create joint tenancy.

The historical records of all owners and encumbrances of a specific parcel of real estate is known as the

chain of title. The answer is chain of title. A chain of title is the historical record of a property's ownership and encumbrances. Each owner is linked to the next so that a chain is formed. A title search is the process of examining the chain of title for defects or errors. A title commitment lists current encumbrances and any defects found in the title upon completing the search. An abstract of title is a historical summary report of what the title search found in the public record; only when coupled with a title opinion can the buyer know if there are title issues.

An example of involuntary alienation of property is

condemnation. The answer is condemnation. Condemnation is the operation of a government to take private property for public use and is an involuntary transfer of the property. Property inherited or given as a gift transfers voluntarily. A quitclaim deed voluntarily transfers the interest a grantor may have in a property to a grantee with no covenants or warranties.

The process by which the government can acquire ownership of private land for public use is

condemnation. The answer is condemnation. Condemnation is the process through the courts or administrative action by which a government acquires ownership of private land for public use. Eminent domain is the right of the government to acquire ownership and condemnation is the process used to implement that right. Escheat is the taking of land by the government when the land is abandoned or when the owner dies without heirs capable of inheriting the land. The doctrine of prior appropriation is tied to how priority is set in water rights.

A person who owns one unit in a multiunit structure together with a specified undivided interest in the common elements as a tenant in common owns a

condominium. The answer is condominium. A person who holds a fee simple title to a unit and a specified share of the undivided interest in the common elements as a tenant in common owns a condominium. In a real estate investment trust (REIT), investors own shares in an investment group fund but not in an individual property. In a cooperative, tenants own shares in a corporation, partnership or trust that holds title to the building, with tenants having the right to occupy their own units. A time-share is a real property interest with the right to use the facilities for a specified period of time (usually a week).

The title to real estate passes when a valid deed is

delivered and accepted. The answer is delivered and accepted. Title is not considered transferred until the deed is actually delivered to and accepted by the grantee. The grantor may deliver the deed to the grantee either personally or through a third party.

A condominium form of ownership is officially established when the

developer records a declaration in the public record. The answer is developer records a declaration in the public record. When a developer declares in the public record the existence of a condominium, the condominium is officially established. The declaration includes survey, legal description, bylaws, restrictive covenants, and architect drawings. Construction of improvements, the establishment of an owners' association, and sale of individual units follow the establishment of the condominium.

In a limited partnership

each limited partner is liable for no more than their investment. The answer is each limited partner is liable for no more than their investment. In a limited partnership, each limited partner can be held liable for losses only to the extent of their investment. There is no limitation on the number of investors in the partnership. The limited partners are not legally permitted to participate in the running of the business.

In a joint tenancy, all of the following are true EXCEPT

each partner has a divided share of the property. The answer is each partner has a divided share of the property. Each partner has an undivided share in the property, which gives all owners equal rights of possession. To create a joint tenancy, the unities of possession, interest, time, and title must be present. Upon the death of one joint tenant, that interest in the property is extinguished, and the other tenants hold title as the remaining joint tenants. Marriage is not a requirement of joint tenancy.

When a landowner takes an easy route to his own property over a neighbor's land without the neighbor's knowledge for an extended period of time, the landowner may have acquired a(n)

easement by prescription. The answer is easement by prescription. An easement by prescription may be acquired through open, continuous, exclusive, actual/visible and notorious/ hostile (Remember: OCEAN) use of another's property for a number of years as prescribed by state law. A license is a personal revocable right to enter another's property for a specific use. Eminent domain is the government's right to acquire property for a public use. An easement by necessity is created by a court to grant access to property that has no access to a street or public way.

A developer grants a local power company the right to install necessary transmission lines. The developer has granted the power company a(n)

easement in gross. The answer is easement in gross. An easement in gross is a company's right to use another's land. A license is a personal privilege to enter the land of another for a specific purpose. A license can be terminated or canceled. An easement by prescription is acquired when a person makes continuous and visible use of another's land for a certain period of time without the owner's permission. A conditional use permit is granted by a municipality to a property owner to allow a special nonconforming use of property in a residential district.

The type of easement granting a right-of-way for a utility company's power lines is a(n)

easement in gross. The answer is easement in gross. Easements in gross are individual rights to use someone's land, as in the case of the utility company. An easement in gross can be assigned, conveyed, and inherited. An easement by necessity is created by a court when an owner sells a parcel of land that has no access to a public way except over the seller's remaining land. An easement by prescription is acquired when a person makes continuous and visible use of another's land for a certain period of time without the owner's permission. An appurtenant easement has two parties an example would be a right to drive across a neighbors land.

If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, the

easement is terminated. The answer is easement is terminated. One way of terminating an easement occurs when the owner of either tenement becomes the owner of both, and the properties are merged under one legal description. At that point there is no more need for the original easement.

A property owner who has the legal right to cross over a neighbor's land holds a(n)

easement. The answer is easement. An easement is a right of use or passage. An easement is not an estate in land, as it does not create any right of ownership. An easement is not an exercise of the police power of the state. An easement is not an encroachment, which is an illegal extension of a structure onto another's property.

An annual crop that is considered personal property is called a(n)

emblement. The answer is emblement. Annually cultivated crops such as fruit, vegetables, and grains are known as emblements and are considered personal property. A fixture is an item that was once personal property, but that has been attached or affixed to real estate and has become real property. A fixture is tangible and transfers with the property unless detached from the property prior to its sale. An appurtenance is anything that attaches to and runs with the land such as improvements, rights and fixtures.

The right of the government to take ownership of real property is called

eminent domain. The answer is eminent domain. The right is eminent domain; the process by which the right is exercised is condemnation. Escheat is the taking of land by a government when the land is abandoned or when the owner dies without heirs capable of inheriting the land. Police power is the government's rights to impose laws and regulations for the public welfare.

A homeowner recently fenced his property. By mistake, the fence extends one foot over his own lot line onto a neighbor's property. The fence has created a(n)

encroachment. The answer is encroachment. An encroachment occurs when a building or a structure illegally extends onto or over another's property. A license is a personal revocable right to use another's property with permission. An easement by necessity is created by a court when an owner sells a parcel of land that has no access to a street except over the seller's remaining land. An easement by prescription is created when a person openly, continuously, exclusively, actually, and notoriously (hostile) uses land of another without the owner's permission. REMEMBER: OCEAN.

A portion of a homeowner's building was inadvertently built on his neighbor's land causing a(n)

encroachment. The answer is encroachment. When all or part of a structure illegally extends beyond the land of its owner, an encroachment occurs. A license is a revocable right to use a property. A lien is an obligation to pay a debt. An easement is the right to use the land of another for a specific purpose.

A tax lien on a property can hinder the sale of the property because it is a(n)

encumbrance. The answer is encumbrance. An encumbrance is a claim, charge, or liability that attaches to real estate. It is a right or interest held by someone else other than the fee owner of the property and affects title to real estate it. A tax lien is a specific lien attached to the real property when real estate property taxes are not paid by the owner. It is not an encroachment, which is an illegal extension of a building or structure onto another's property. A purchaser is not required to satisfy a tax lien unless agreed to by the purchaser in the purchase contract.

The purpose of building permits is to

ensure compliance with building codes. The answer is ensure compliance with building codes. Through the permit requirement, municipal officials become aware of new construction and alterations and can verify compliance with building codes. Building inspectors review new construction, repairs, and modifications to judge compliance with building codes. While fees may be charged for building permits, their primary purpose is public safety. Building permits do not regulate encroachments to a property.

The primary intent of zoning ordinances is to

ensure that proposed land uses conform to the master plan. The answer is ensure that proposed land uses conform to the master plan. Zoning ordinances are local laws that implement the master (comprehensive) plan and regulate and control use of land and structures within designated land-use districts.

Under the covenant of quiet enjoyment, the grantor

ensures that the title will be good against the title claims of third parties. The answer is ensures that the title will be good against the title claims of third parties. Quiet enjoyment means freedom from any claims to the title by third parties, persons other than grantor and grantee. The other guarantees and promises are warranted through the covenants of warranty forever, seisin, and further assurance. A general warranty deed provides all of these covenants.

The type of real estate ownership that is MOST all-inclusive is a

fee simple absolute estate. The answer is fee simple absolute estate. A fee simple absolute estate is the highest interest in real estate recognized by law. Fee simple ownership is absolute ownership in which the holder is entitled to all rights to the property. A life estate is a freehold estate that lasts as long as the life of the life tenant. A qualified fee estate is limited by specific conditions created by agreement or by law. A reversionary interest is that interest in property that exists when ownership of a life estate reverts back to the original owner at the end of the life estate.

An owner held fee simple title to a vacant lot adjacent to a hospital. She decided to make the lot available to the hospital. Her attorney prepared a deed that conveyed ownership of the lot to the hospital "so long as it is used for medical purposes.'' After the completion of the gift, the hospital will own a

fee simple defeasible estate. The answer is fee simple defeasible estate. A fee simple defeasible estate creates a limited use by a deed condition. The former owner retains reversionary interest in that the owner may reacquire full ownership if the hospital does not use the land for medical purposes. A life estate is a freehold estate that lasts as long as the life of the tenant. A tenancy for years is a leasehold estate that continues for a definite period of time, for years, months, even days. A periodic tenancy is a less-than-freehold estate that creates the right of possession of a property from year to year.

A property owner deeds a parcel of his property to a town "for recreational purposes only." The deed conveys to the town a

fee simple defeasible estate. The answer is fee simple defeasible estate. The deed conveys a fee simple defeasible estate which includes a specific condition on the use of the parcel. If the town uses the parcel for any purpose other than for recreational use, the property owner can take possession of the property through legal action. Holder of a leasehold estate has no ownership only possession. A fee simple absolute estate has no restrictions on the use of the property. A life estate is limited in duration to the life of the owner of the estate or to the life of some other designated person.

A woman grants a parcel of land to a religious organization for as long as the parcel is used for religious purposes. The religious organization's ownership rights to the parcel constitute a

fee simple defeasible estate. The answer is fee simple defeasible estate. The religious organization's ownership of the land is qualified by the limitation that the land be used for religious purposes. The limitation creates a fee simple defeasible or qualified fee estate. If the religious organization decides to use the property for some other purpose, title to the property may revert back to the woman or her heirs. A fee simple absolute estate is the highest form of real estate ownership. A life estate is limited to the life of the estate owner or some other designated person. A leasehold estate is an estate of possession only granted from the property owner to a tenant and lasts for a fixed period of time.

A person who has complete control of a parcel of real estate is said to own a

fee simple estate. The answer is fee simple estate. The highest interest in real estate recognized by law is the fee simple or fee simple absolute estate in which the holder is entitled to all rights of the property. In a fee simple estate, the property may pass to the owner's heirs upon the death of its owner. A tenant's right to possess a property for the term of a lease is called a leasehold estate. A life estate is an interest in real property that ends when the owner dies. A defeasible fee estate is a fee simple estate that can exist as long as a certain use continues or provided that the property is used for a specific purpose.

A purchaser of real estate learns that his ownership rights could continue forever and that no other person claims to be the owner or has any ownership control over the property. This person owns a

fee simple interest. The answer is fee simple interest. Fee simple is an absolute ownership, an inheritable interest "with no strings attached." A life estate is a non-inheritable freehold estate that ends with the death of the owner or the death of some other designated person. A remainder interest is tied to a life estate. A qualified fee estate exists as long as a determined use of the property continues.

A title insurance policy protects against title defects

found after closing. The answer is found after closing. The title commitment would list any defects found before closing and would excluded them from coverage, so only defects arising after closing are covered. A defect cleared by a quiet title suit is no longer a defect.

The BEST way to ensure that there are no encroachments to a property and to properly verify the boundaries of a parcel of land is to A) find the monuments. B) verify the benchmarks. C) get a survey. D) write a legal description.

get a survey. The answer is get a survey. Encroachments are found through actual notice or visual inspection by the buyer or someone working for the buyer. A survey shows the location of all improvements on a property and whether any improvements extend over the property lines. A legal description is a description of a specific real estate parcel complete enough for an independent surveyor to locate and identify the parcel. Monuments are fixed objects or markers to identify corners or places where boundary lines change directions, but they will not identify encroachments. Benchmarks are permanent reference points established for use in surveys to measure differences in elevation, but they will not identify encroachments.

The clause in the deed that conveys the rights and privileges of ownership is called the

granting clause. The answer is granting clause. The granting clause states the grantor's intention to convey the property at the present time. An exception and reservations clause notes any encumbrances, reservations, or limitations affecting the title. The convent of seisin is the grantor's promise of ownership and ability to convey title in a general warranty deed. The acknowledgement is a formal declaration under oath that the person signing the deed does so voluntarily and that the signature is genuine. The signature is not required to make a deed valid but is often required to record the deed.

In order for a deed to be valid, the

grantor must be legally competent. The answer is grantor must be legally competent. Competency of the grantor, not the grantee, is one of the requirements for a valid deed. The grantor must be of lawful age and sound mind. Only the grantor, not the grantee, is required to sign the deed. Recording a deed is not required for the validity of deed.

For a deed to be valid, the

grantor must be legally competent. The answer is grantor must be legally competent. The grantor must have the legal competency to sign a deed. An attorney or notary is not required to witness a deed. Deeds do not have to be recorded to be valid. The grantor not grantee is required to sign a deed in order for the deed to be valid. The grantee does not have to be legally competent.

A deed must be signed by the

grantor. The answer is grantor. A deed must be signed by all grantors named in the deed. The grantee must be named but does not sign the deed. Some states may require witnesses to sign a deed in order for it to be recorded, but the grantee does not sign.

Every deed must be signed by the

grantor. The answer is grantor. Either the grantor, or someone acting under the grantor's authority, must execute (sign) every deed, and the grantor must have the legal capacity to do so. The grantee is not required to sign the deed. A devisee is the recipient of real property under a will and is not required to sign a deed.

The holder of a reversionary interest in a qualified fee estate might be able to obtain title to the property

if the holder of the qualified fee estate breaks the deed condition. The answer is if the holder of the qualified fee estate breaks the deed condition. The holder of a reversionary interest retains the right to repossess a property if a deed condition is not met or broken. If the condition is broken, the holder of the reversionary interest can go to court to try and obtain ownership of the property. If a remainderman dies, the remainder interest in a life estate passes to the heirs. The holder of a reversionary interest does not have the right to change the conditions of a qualified fee estate. A holder of a qualified fee estate may sell the property so long as the conditions or limitations of the qualified fee estate continue.

A corporation takes title to real property

in severalty. The answer is in severalty. A corporation is legally treated as a single person and may own property in severalty. A corporation, though not human, is an artificial person in the eyes of the law. A corporation is not a partnership or a trust. It does not own property with the right of survivorship established through a joint tenancy.

A couple bought a store building and took title as joint tenants. One woman died testate. The other woman now owns the store

in severalty. The answer is in severalty. Joint tenancy includes the right to survivorship, to the property passing to the other owner(s) upon the death of one tenant. In this case, the women took title as joint tenants, meaning that upon one's death, there is only one owner who owns the property in severalty. In a tenancy in common, the owners own an undivided fractional interest in the property and that interest is passed on according to the owner's will, to heirs, or to a trust.

A person who has died without a will has died

intestate. The answer is intestate. A person who dies testate leaves a valid will; someone who dies intestate does not. The person who makes a last will and testament is a testator. A devisee is one who receives a gift of real estate (a devise) through a will.

Eminent domain and escheat are two examples of

involuntary alienation. The answer is involuntary alienation. Involuntary alienation occurs when property is transferred without the owner's consent. The right of eminent domain allows a government to acquire property for a public purpose through condemnation. When a person dies without a will (intestate) and without heirs, the property passes (escheats) to the state. This process was neither planned nor initiated by the owner before death. Voluntary alienation occurs when property is transferred with the owner's consent. Adverse possession is the acquiring of title through open, notorious, hostile, and continuous use of another's property. Descent occurs when an heir inherits a property through probate from a deceased owner who died intestate, without a will.

The major difference between joint tenancy and tenants in common is

joint tenancy requires all ownership right be acquired at the same time. The answer is joint tenancy requires all ownership right be acquired at the same time. Joint tenancy, which offers the right of survivorship, requires PITT—possession, equal interests, title all occur at the same time. Tenants in common owners have equal rights of possession but may have unequal rights of ownership. All owners, regardless of how ownership is taken, share one deed, which conveys legal title.

A property owner executes a deed to a purchaser, has it acknowledged, and receives payment from the purchaser. However, the owner holds the deed and arranges to meet the purchaser the next morning at the courthouse to present the deed to the purchaser. At this point

legal title to the property will not pass to the purchaser until the owner gives the deed to him the next morning. The answer is legal title to the property will not pass to the purchaser until the owner gives the deed to him the next morning. A title is not considered transferred until the deed is actually delivered to and accepted by the grantee. Title is said to pass only when a deed is delivered and accepted, and the effective date of the transfer is the date of delivery of the deed itself. The deed must be recorded in the county in which the land is located in order for the purchaser's interest in the property to be protected.

Mortgagee title insurance policies protect

lenders. The answer is lenders. A mortgagee title insurance policy protects the mortgagee the lender. An owner's policy protects the owner, heirs, and devisees.

An owner of a property with a lake has given the neighbor verbal permission to fish in the lake. The neighbor's right of use is most likely a(n)

license. The answer is license. A license is a personal right to enter the land of another for a specific purpose and can be terminated or revoked at any time. Typically these are not in writing and are not considered to be encumbrances since the owner may take the license. Easements are non-revocable written, usually in a deed, rights of use in another property.

A property owner tells his next door neighbor that she can store her camper in his yard for a few weeks until he needs the space. The property owner does NOT charge the neighbor any rent for the use of his yard. The owner has given his neighbor a(n)

license. The answer is license. A license is a revocable personal privilege to use the land of another for a specific purpose, and the right is given orally or informally. The property owner's permission does not grant the neighbor an easement or an estate in the land.

Because a homeowner failed to pay her real estate property taxes on time, the taxing authority imposed a claim against her property. This claim is known as a(n)

lien The answer is lien. The claim is a tax lien. Unpaid real estate property taxes are a lien on the property as they are a charge against the property that provides security for a debt or an obligation for payment by the property owner. A deed restriction creates a limitation on the use of a property. An easement is the right of one party to use the real property of another for a specific use. A reversionary interest is the ownership interest belonging to the creator of a life estate when the ownership reverts to the original owner upon the end of the life estate.

A recorded subdivision plat is used in the

lot and block system. The answer is lot and block system. A recorded subdivision plat, which becomes part of the legal description, uses the lot and block system. The rectangular survey system divides land into rectangles and describes those rectangles with principal meridians and base lines. The geodetic survey system refers to the government system that identifies property through a network of benchmarks, each one identified by its longitude and latitude. The metes-and-bounds system outlines the perimeter of a parcel by starting at one point and ending at the same point.

The purpose of a building code is to

make sure buildings are structurally safe. The answer is make sure buildings are structurally safe. Building codes are used to make sure buildings are structurally sound and safe. A restrictive covenant is a restriction established by a private entity, not a public government. Building codes do not affect a deed's restrictive covenant. Zoning ordinances regulate the types of new construction but are not enforced through building codes.

A municipality establishes development goals that are often used to control growth in its

master plan. The answer is master plan. Local governments establish development goals by creating a master plan, which is also known as a comprehensive plan. Restrictive covenants are private limitations on the use of property established by a developer or owner and binding on future owners. Governments pass environmental regulations to help maintain clean air and water. Building codes are ordinances that specify construction standards that must be met when constructing or repairing buildings.

When a company furnishes materials for the construction of a house, and the company is NOT paid, it may file a

mechanic's lien. The answer is mechanic's lien. A mechanic's lien gives security to persons or companies that perform labor or furnish material to improve real property and can be filed when the owner has not fully paid for the work. Lis pendens is a recorded notice of a suit that may affect title to real property. A default judgment is granted when a creditor files for unpaid bills and wins the right to place a general lien on all the debtors' property to collect payment. A deficiency judgment is a personal judgment a lender may file against a borrower for the unpaid balance on a mortgage loan when a foreclosure sale has not produced enough cash to pay the loan balance.

A property owner contracted to have a swimming pool installed on her property. When the pool was completed, she refused to pay for the improvement, and the contractor filed a lien for nonpayment. This lien was MOST likely a

mechanic's lien. The answer is mechanic's lien. A mechanic's lien may be filed by a contractor when an owner refuses to pay for work on an improvement. The lien is a specific, involuntary lien on the property. A general lien applies to both personal and real property.

The system of legal description that defines a parcel of land by tracing its perimeter is known as

metes and bounds. The answer is metes and bounds. A metes-and-bounds description traces a parcel's perimeter by starting at a POB (point of beginning) and always ending back at the POB, so that the described tract is completely enclosed. The rectangular survey system divides land into rectangles and describes those rectangles with principal meridians and base lines. The lot and block system uses lot and block numbers in a plat map to describe property and is often used in urban areas. A street address is not a legal description.

The method of describing land that uses compass degrees, feet, and monuments is known as the

metes-and-bounds system. The answer is metes-and-bounds system. A metes-and-bounds system starts at a POB (point of beginning) and proceeds around the property's boundaries by referring to linear measurements, monuments, and directions. An informal system would be a street address. The rectangular survey system divides land into rectangles and describes those rectangles with principal meridians and base lines. The lot and block system uses lot and block numbers referred to in a plat map and is often used in urban areas.

A property description states, "Starting at the corner of Ash Street so many feet to 2nd Street," and so forth. This description is most likely a

metes-and-bounds. The answer is metes-and-bounds. This the only legal description which uses a starting point. The rectangular survey system or government survey system divides land into rectangles and describes those rectangles with principal meridians and base lines. The lot and block system uses lot and block numbers referred to in a plat map and is often used in subdivisions.

A store owner has operated a neighborhood grocery store for the last 30 years. Her store is the only retail property in the area which is zoned residential. The store is an example of a(n)

nonconforming use. The answer is nonconforming use. A nonconforming use is the legal use that existed prior to current zoning ordinances but no longer conforms to current zoning laws. The grocery store operated prior to current zoning ordinances and is legally permitted to operate as a nonconforming use. A variance is permission for a use expressly prohibited by zoning ordinances.

A town enacts a new zoning code. Under the new code, commercial buildings are not permitted within 1,000 feet of a nearby lake. A commercial building built years before on the lakeshore but permitted to continue in its former use operates as a(n)

nonconforming use. The answer is nonconforming use. Nonconforming use permits allow uses existing before zoning restrictions were enacted prohibiting those uses. A municipality may allow the uses to continue for a specified length of time and with a limited right of transfer to later buyers. A variance is permission for a property use expressly prohibited by zoning ordinances. A special use or conditional use is permission to use a property for a related but nonconforming use for the public good. Adverse possession is not related to zoning issues but refers to the open, hostile, and continuous possession of another's property.

Normally, the priority of general liens is determined by the

order in which they are filed or recorded. The answer is order in which they are filed or recorded. The general rule for priority of liens is "first come, first served." Property taxes and special assessments are exceptions to the general rule, as they usually take priority over other liens. The priority of liens does not arise out of the size of a claim. Courts do not determine the priority of liens.

A life estate conveys to the life tenant

ownership for life. The answer is ownership for life. A conventional life estate is a freehold estate that lasts as long as the life of the life tenant. A conventional life estate occurs by a voluntary agreement of two parties. A legal life estate arises out of law, such as a spouse's dowry rights when the other spouse dies. A periodic tenancy is a less-than-freehold estate that creates the right of possession of a property from year to year. A reversionary interest exists when the creator of a life estate reserves for himself a fee simple estate once a life estate ends.

To create joint tenancy in the ownership of real estate, there must be unities of

possession, interest, time, and title. The answer is possession, interest, time, and title. The equal interests of possession, interest, and title must all occur at the same time for joint tenancy to be created. REMEMBER: PITT for the unities of title in joint tenancy.

The date and time a document was recorded in the public records helps to establish the

priority of mortgages and liens. The answer is priority of mortgages and liens. The priority of mortgages and other liens normally is determined by the order in which they were recorded. Time of recordation is an important consideration in establishing the priority of claims in the event of a sale. An abstract of title is a document prepared to report the results of a title search. An alienation clause is used in a mortgage or deed of trust to allow the full amount due to be called if the buyer is in default. Marketable title is established with an abstract or title commitment.

After the death of a property owner who has a will, a court determines who will receive the deceased owner's real estate. This process is known as

probate. The answer is probate. Probate is a formal judicial process to confirm the validity of a will and to see that the assets are distributed correctly. Escheat is the transfer of title to the state when a person dies intestate and there are no heirs to the property. Adverse possession is the acquiring of title through open, notorious, hostile, and continuous use of another's property. Condemnation is the legal process by which a government acquires private real property for a public use under its power of eminent domain.

When property is owned in severalty, the

property owner may sell, will, or lease the property to another person. The answer is property owner may sell, will, or lease the property to another person. Property owned in severalty is owned by one person. The owner may be an individual or a corporation and has sole discretion to transfer the use or ownership of the property to another person. Spouses may own separate property in severalty.

Involuntary alienation occurs when a

property owner's land is sold for delinquent taxes. The answer is property owner's land is sold for delinquent taxes. Involuntary alienation occurs when title to property is transferred without the owner's consent. Involuntary transfers of property are usually carried out by an operation of law and can include having the property sold to satisfy delinquent taxes. Voluntary alienation is the legal term for a voluntary transfer of title when an owner sells property or gives the property to another. The property owner who grants a neighbor access and use of a well has granted a license to the neighbor, which is the revocable right to use the land for a specific purpose for a limited time period.

The owner of a unit in a cooperative receives a

proprietary lease to the unit. The answer is proprietary lease to the unit. In a cooperative, each tenant-owner receives shares in the cooperative and a proprietary lease to the owner's unit for the life of the cooperative. Cooperative owners do not own real estate and do not have fee simple interest in their units. Cooperative owners pay their portion of taxes assessed on the cooperative. A right of first refusal refers to the right of a person to have the first opportunity to lease or purchase real property. Cooperative owners own their shares as personal property.

The purchase contract calls for the seller to provide the buyer with an owner's title policy. Additionally, the buyer is required to purchase a mortgagee's standard title policy. This title insurance policy will

protect the lender against some, but not all, of the possible defects in the title. The answer is protect the lender against some, but not all, of the possible defects in the title. The mortgagee is the lender; the mortgagor is the buyer. A mortgagee's standard title policy indemnifies the lender against some, but not all, of the possible defects in the title. The title insurance will not offer guaranteed protection against a bad title or defects that clearly appear in a title search. It generally names certain uninsurable exclusions. The exclusions may include zoning ordinances, restrictive covenants, certain water rights, current taxes, and special assessments.

A deed that contains no express warranties is a

quitclaim deed. The answer is quitclaim deed. A quitclaim deed provides the grantee with the least protection of any deed, as it carries no covenants or warranties. The bargain and sale deed contains no express warranties against encumbrances but does imply that the grantor holds title and possession. A warranty deed fully warrants good clear title to a property. A deed of trust is used to create a lien for a loan.

After real estate has been sold by the state or county to satisfy a delinquent property tax lien, if state law permits, the defaulted owner has a right to

redeem the property within the time specified by the law. The answer is redeem the property within the time specified by the law. Generally, a delinquent taxpayer can redeem the property before the tax sale by paying the delinquent taxes plus interest and charges (court costs and attorney fees). This right is known as the equitable right of redemption. After the real estate has been sold, the defaulted owner may redeem the property by paying the amount collected at the tax sale plus interest, charges, and any taxes levied since the sale. This right is known as the statutory right of redemption.

An owner conveys a life estate to her grandson and stipulates that on her death the estate will pass to her son-in-law. The son-in-law has a(n)

remainder interest The answer is remainder interest. The owner's death will end the life estate conveyed to her grandson, which will then mean the holder of the remainder interest, the son-in-law, will have fee simple absolute ownership of the property. An estate for years is a leasehold estate that continues for any definite period of time. A legal life estate is a freehold estate created out of a provision.

Zoning ordinances normally define specific uses for land that are permitted within a municipality. All of the following are land uses traditionally classified in such ordinances EXCEPT

rental. The answer is rental. Zoning ordinances have traditionally classified land use into residential, commercial, industrial, and agricultural and do not include rental as one of the classifications. Rental refers to a type of property use and ownership, a leasehold, rather than a usage of the land.

Under its police powers, a municipality may regulate all of the following about housing in a development EXCEPT

restrictive covenants. The answer is restrictive covenants. Restrictive covenants are private controls of land use, not public controls. Building heights, lot sizes, and types of structure may be regulated by a municipality under its police powers.

A property owner conveys the ownership of his house to his mother and stipulates that on her death ownership will revert to him. The interest the owner has in the property is a

reversionary interest. The answer is reversionary interest. Until the mother dies the son holds a reversionary interest. Upon death of the life tenant, the mother, the holder of the reversionary interest will return to having a fee simple absolute estate. A qualified fee estate is held as long as the owner maintains the deed condition. A homestead is protection for a primary property against certain creditors. A remainder interest belongs to a person named as a remainderman, the person-other than the creator of the estate-to whom the life estate will pass when the estate ends.

Neighbor A uses Neighbor B's driveway to reach A's garage, which is on their property. B's attorney explains that ownership rights of A's real estate includes an easement appurtenant giving them the right to use B's driveway. In this case, B's property is the

servient tenement. The answer is servient tenement. In an appurtenant easement the parcel over which the easement runs is known as the servient tenement, and the neighboring parcel that benefits from the easement is known as the dominant tenement. B's property is the servient tenement, and A's is the dominant tenement. The easement does not create a leasehold estate. A license is a personal privilege with permission from a landowner to enter the land for a specific purpose.

All of the following are true of the government's police power EXCEPT

set private controls in certain subdivisions on the types of floor plans, fencing, and house colors. The answer is set private controls in certain subdivisions on the types of floor plans, fencing, and house colors. The government's right of police power is used to ensure health, safety, and welfare within a community along with setting land use policy and the right to take private land for public use or benefit. Government rights do not include the private right to control issues within only certain neighborhoods; these are known as deed restrictions and are usually set by the original developer.

When a grantor signs a deed, the basic purpose of acknowledgment before a notary public is to

show the grantor's signature was given voluntarily, without duress. The answer is show the grantor's signature was given voluntarily, without duress. An acknowledgment is a formal declaration that the person who signs a written document does so voluntarily and that the signature is genuine. The acknowledgement will not ensure the validity of the title, the identity of the grantee, or the lack of encumbrances.

Normally, a deed will be considered valid even if

signed by the attorney-in-fact of the grantor. The answer is signed by the attorney-in-fact of the grantor. The attorney-in-fact must act under a power of attorney, the specific written authority to execute and sign for another person. A valid deed requires that the grantor be a legal entity and deliver the deed to the grantee. A minor is not considered legally competent to sign a deed as a grantor.

A lien against specific properties that benefit from public improvement is known as a(n)

special assessment. The answer is special assessment. Special assessments are taxes levied on real estate to fund improvements beneficial to the property. The specific improvements are paid for by the special assessments. A mechanic's lien is a specific lien against real property filed by a contractor, subcontractor or supplier when an owner or contractor has not paid for work or supplies for improvements on a property. An ad valorem tax is a real estate property tax levied by a government entity and based on the assessed value of the specific property being taxed. A mortgage lien is a specific voluntary lien created as collateral for debt.

Property taxes levied on a property owner to pay for installation of sidewalks or sewers are called

special assessments. The answer is special assessments. Special assessments are taxes levied on real estate to fund public improvements. General property taxes are taxes on real or personal property levied by a government taxing authority. Special excise taxes are direct taxes on services performed or income received, such as license fees and sales taxes. Real estate taxes are also known as ad valorem taxes, taxes based on the value of the specific property being taxed.

A woman applies to the municipality for permission to open an adult day-care facility in her neighborhood. Many elderly persons live in the neighborhood. The municipality may grant her a(n)

special use permit. The answer is special use permit. A special use permit usually is granted to a property owner to allow a special use of a property for the common good. A nonconforming use permit allows an existing property to be used for a purpose that existed prior to current zoning ordinances and not permitted under those ordinances. A special use permit would not require an amendment to zoning ordinances. A variance is permission to build a structure or conduct a use that is expressly prohibited by current zoning laws.

A mechanic's lien would be properly classified as a(n)

specific lien. The answer is specific lien. A mechanic's lien is a specific lien as it affects a specific property and only that particular property. It is an involuntary lien placed on a property without the owner's consent. A general lien is the right of a creditor to have all of an owner's property, real and personal, sold to satisfy a debt. An equitable lien arises out of a written contract that shows the intention of the parties to charge a particular property as a security for a debt or obligation.

The LEAST specific method for identifying real property is A) metes and bounds. B) lot and block. C) street address. D) rectangular survey

street address. The answer is street address. A legal description is a precise method of identifying a parcel of land and includes metes and bounds, rectangular survey, and lot and block as methods that can be used for identification. A street address is not a legal description and, therefore, not as precise.

A map illustrating the sizes and locations of streets and lots in a subdivision is called a A) metes and bounds. B) government survey. C) survey. D) subdivision plat.

subdivision plat. The answer is subdivision plat. A plat is a map. A subdivision plat is a map of a subdivision showing at least those details required by local subdivision regulations. A survey is the process by which boundaries and land areas are measured and determined. Metes and bounds and government survey are not part of a plat map.

A license is an example of a(n)

temporary right. The answer is temporary right. A license is a personal and temporary right to use another's property. A license can be canceled or revoked at any time. An encroachment occurs when a building or part of a structure extends illegally onto another's property. An appurtenant easement permits the owner of one parcel to use an adjoining neighbor's parcel. A restriction limits the ways property owners may use their property.

Tenancy with survivorship means the

tenancy interest will pass to the surviving tenants upon the death of a co-tenant. The answer is tenancy interest will pass to the surviving tenants upon the death of a co-tenant. Tenancy with survivorship, joint tenancy, means that the entire ownership remains with the surviving joint tenant or tenants. In a tenancy in common deceased tenants' interests may be passed on to their heirs. Joint tenancy does not require a new deed upon the death of one of the tenants.

Three friends were concurrent owners of a parcel of real estate. One of the friends died, and his interest passed according to his will to become part of his estate. The deceased friend was a

tenant in common. The answer is tenant in common. In a tenancy in common, the property of a deceased owner may pass to the heirs according to the will. If the deceased owner had been a joint tenant, the property would not have passed according to the will because in a joint tenancy the property interests would have transferred directly to the other two friends (co-tenants). The deceased owner was not a tenant by the entirety, a category reserved for married couples. Nor was the deceased owner a severalty owner because that form of ownership requires property to be held by only one person.

In receiving a gift of a parcel of real estate, one of the two new owners was given an undivided 60% share, and the other received an undivided 40% share. They now hold title as

tenants in common. The answer is tenants in common. Tenants in common hold property with undivided fractional interests, and the shares do not have to be equal. In a joint tenancy, each owner holds equal shares and interests to the property. Community property consists of personal or real property acquired by either party in a marriage and belonging to both parties to the marriage. In a cooperative, owners own shares in a corporation, partnership or trust which owns a property, with each owner holding a proprietary lease and the right to occupy the unit.

All of the following are true regarding public records EXCEPT

that they guarantee marketable title. The answer is that they guarantee marketable title. Nothing guarantees marketable title. An abstract with a title opinion or a title commitment show if the seller currently appears to have marketable title and offer protection to the buyer if title issues arise after closing. The recording of public records establishes the priority of liens, gives notice of encumbrances, and provides constructive notice of interests in real property.

A judgment lien filed in a county usually covers

the debtor's real and personal property located in that county. The answer is the debtor's real and personal property located in that county. A judgment is a general, involuntary, equitable lien on both the real and personal property owned by the debtor. Usually the lien covers only property located in the county in which the lien was recorded. Notices of the lien must be filed in another county if a creditor wishes to extend the coverage to that county.

A landowner sells one acre of his two-acre property to a friend. He reserves for himself an appurtenant easement over the friend's land for ingress and egress. The landowner's property is

the dominant tenement. The answer is the dominant tenement. The landowner's parcel benefits from the easement and is the dominant tenement. The neighbor's tract, over which the easement runs, is the servient tenement. The landowner's easement remains with the property when it is sold. An easement in gross is a company's right to use another's property, such as an easement for a utility company to run power lines over another's property.

To determine the kinds of land uses and the amounts of land for each use in a subdivision, a developer must consider

the master plan of the local government. The answer is the master plan of the local government. A master plan (or comprehensive plan) created by a local government usually covers land use, housing needs, community facilities, utilities, and energy conservation. Before the actual subdividing can begin, a developer must go through the process of land planning. The resulting land development plan must comply with the municipality's master plan. While other considerations may be important to the developer, they must comply with the master plan.

Legal descriptions are used in purchase contracts and deeds and must be accurate. All of the following would be considered a good and accurate legal description EXCEPT

the property address with full zip code. The answer is the property address with full zip code. Addresses which change are not used as legal descriptions but are often included as a property reference. Lot and block, metes and bounds, and the government survey are all acceptable legal descriptions.

All of the following will terminate an easement EXCEPT

the release of the right of easement from the servient tenant to the dominant tenement. The answer is the release of the right of easement from the servient tenant to the dominant tenant. An easement is terminated when the owner of the dominant tenement who benefits from the easement releases that right to the owner of the servient tenement. All of the other events shown will terminate an easement.

A quiet title suit refers to

the removal of a cloud on a title by court action. The answer is the removal of a cloud on a title by court action. If a title search reveals an unbroken chain of ownership, a gap or cloud in the chain of title exists. Such a cloud in the chain requires a court action called a quiet title suit to establish title for a grantor who wants to convey the property.

All of the following are required for a deed to be valid EXCEPT

the signature of the grantee. The answer is the signature of the grantee. A valid deed does not require signature of the grantee but does require that the deed be executed or signed by the grantor. A legal description and consideration are among the essential elements required for a valid deed.

The buyer and seller are under contract when the title work is delivered. The buyer discovers the seller does NOT have clear title to the property. The buyer sends the seller notice to clear the title. The best way for the seller to clear the defective or clouded title is

through a quiet title suit. The answer is through a quiet title suit. A quiet title suit removes all clouds on title and then allows the seller to convey the property to the buyer. The disadvantage is it may take months to go through the court system. Title insurance does not cover defects found before closing. Paying cash for the property or using a quitclaim deed would not clear title.

An ownership interest that is based on occupancy during a specified period of time, is a

time-share. The answer is time-share. A real property interest with the right to use the facilities for a certain period of time is called a time-share. While a time-share may be sold as a leasehold or freehold interest, time-s hare intervals are usually shorter intervals of time, typically weekly intervals. A leasehold interest occurs when a tenant leases a property from an owner but usually for an extended longer period of time (such as one year). A condominium owner holds a fee simple absolute ownership to the unit and owns the common elements as tenants in common with the other owners. In a cooperative, tenants own shares in a corporation, partnership or trust that holds title to the building, with tenants having the right to occupy their own units but do not have a deed.

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exclusions, is called a(n)

title insurance policy. The answer is title insurance policy. A title insurance policy is a contract under which the policyholder is protected from losses arising from defects in the title. An abstract of title is a historical summary report of what the title search found in the public record. A certificate of title is based upon a title search and certifies the condition of the title on the date the certificate is issued. A chain of title is the record of a property's ownership. Although a certificate of title is used as evidence of ownership, it is not perfect against unrecorded liens or hidden defects. A title insurance policy protects the policyholder from title defects.

Acceptable evidence of marketable title is a

title insurance policy. The answer is title insurance policy. Nothing can guarantee ownership or marketable title. An abstract with a title opinion or a title insurance policy show the title was researched and offer protection against future defects in the title. A deed by itself is not considered evidence of marketability.

A property owner wants to give his property to his sister. The BEST way to transfer title to her would be

to execute and deliver a deed to the sister. The answer is to execute and deliver a deed to the sister. A deed is the written instrument by which a property owner transfers property to another upon the grantor executing/signing and then delivery and acceptance by the grantee title is passed. A will would transfer the property but only upon the death of the property owner; to transfer real property the owner would devise the property as a bequest transfer personal property. Taking title as joint tenants would not give the sister full ownership rights and a reversionary interest is tied to a freehold life estate, not tenancy. All deeds transfer title without being recorded; recording gives constructive/legal notice of the ownership rights.

A pizza parlor rents space in a retail shopping center. Its owner bolts a large iron pizza oven to the floor to cook the pizzas. The oven is a(n)

trade fixture. The answer is trade fixture. The iron oven is a trade fixture used for a specific business purpose. It is personal property even though it is attached to the rented space. The owner must remove the oven on or before the last day of the lease. A fixture is an item permanently attached to the property and is considered real property. If the restaurant owner assembles and builds an oven in the space that cannot easily be removed, its removal may cause severe damage to the space. If not removed, the oven becomes a permanent fixture, real property belonging to the landlord.

The primary purpose of a deed is to

transfer title rights. The answer is transfer title rights. Title is the right to or the ownership of land. A deed is the document by which the owner transfers the title to real property. If the lease allows assignment, a deed would not be used to establish the transfer. Recording the deed provides constructive notice of a transfer of the property. A deed does not prevent adverse possession, which occurs when a person acquires title through the open, continuous, exclusive, actual/visible and notorious/hostile (Remember: OCEAN) possession of another's property without the owner's permission.

A metes-and-bounds legal description

uses descriptions moving in a set direction. The answer is uses descriptions moving in a set direction. A metes-and-bounds description starts at a POB (point of beginning) and moves clockwise around the boundaries always ending back at the POB, so that the described tract is completely enclosed. The metes-and-bounds, government survey, and lot and block are all accepted in courts. The method may be used in areas included in the rectangular survey system. The metes-and-bounds method is often used to survey large parcels of land before the parcels are broken into subdivision plats.

Under an existing zoning ordinance, no signs that extend more than three feet above the highest point of a roof may be placed on any building. An owner wants to erect a nine-foot-high revolving sign on the roof of his store. In order to do this legally, the owner must get a

variance. .The answer is variance. A variance permits a landowner to use the property in a manner that is strictly prohibited by the existing zoning. A nonconforming use permit would only apply to a use that existed prior to the zoning ordinances. A variance does not require ownership of air rights. Special use permits are tied to how the property is used, e.g. as a school or daycare.

While notarizing is NOT required to create a valid deed, the primary purpose of acknowledgement in this use is to

verify that the deed was signed without duress. The answer is verify that the deed was signed without duress. An acknowledgement is a formal declaration before notary public or another authorized public officer that the person who signs a deed does so voluntarily and that the signature is genuine. The primary purpose of acknowledgment is to verify that the document was executed without duress, which would make the deed voidable. The secondary purpose is to ensure the identity of the party signing the document, which is only the grantor.

A tire company has a manufacturing plant located in an area that has just been rezoned for residential use. The company is allowed to continue operating the plant under the new zoning classification as a nonconforming use. However, if the plant is destroyed by fire or other hazard, the tire company MOST likely

would not be allowed to rebuild the plant in that location under any circumstances. The answer is would not be allowed to rebuild the plant in that location under any circumstances. Under a nonconforming use, if an improvement is destroyed or torn down, then rebuilding an improvement to its former use is usually prohibited. A variance usually applies only to building a new structure or improvement that does not conform to zoning ordinances or laws.

To determine whether a location can be put to future use as a retail store, you would examine the

zoning ordinances or regulations. The answer is zoning ordinances or regulations. Zoning ordinances regulate how properties in various parts of a jurisdiction may be used. Nonconforming uses refer to uses existing prior to current zoning ordinances but now permitted by a jurisdiction. Building codes are ordinances that specify construction standards that must be met when constructing or repairing buildings.