Pre- Unit 2
A buyer contracts to purchase real property with the intention of having title transfer to her children upon her death. Which of the following is the best way for the buyer to take title to the purchased property?
A fee estate
the following planted item is generally considered real property
A perennial shrub planted in t he backyard
A buyer purchases a fee simple estate and has an undivided interest in common elements associated with the property that includes all the land. What form of ownership interest does the buyer hold?
Condominium
Which of the following has an indefinite ownership period?
Freehold estate
Patio Furniture
Is considered personal property
Co-owners of a fee simple interest in a small office building are neither related to nor a creditor to each other. One owner dies intestate. The surviving owner would become the sole owner of the property under which of the following rights?
Survivorship
A rancher owns a parcel of land with all subsurface, air, and water rights intact. If oil is discovered on the parcel of land, who owns the oil?
The Rancher
A seller is under contract to sell a property using the NCBA/NCAR 2-T Offer to Purchase and Contract. The elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and electrical outlet covers, and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?
The draperies
Which of the following is NOT true about condominium ownership?
The limited common elements can be sold separately.
A joint tenant sells her interest to a third party. If the original ownership interests were equal, what is the relationship of the new owner with the remaining original owner?
They are tenants in common.
A person who acquired ownership that can be inherited, with the provision that the land must always be used for recreational purposes, has
a fee simple determinable estate.
Under the condominium form of ownership, the owner's interest in their individual unit would normally be
a fee simple estate.
The owner of a condominium unit learns that a neighbor has failed to pay his real estate taxes. If the neighbor does NOT pay the taxes
a lien can be filed against the neighbor's unit.
Condominium owners are responsible for paying a monthly common area maintenance fee. If an owner fails to make this payment,
a lien is filed against that owner's unit.
A homeowner acquired the ownership of land that was deposited by a river running through her property by
accretion.
The owner of a house wants to fence the yard for a dog. When the fence is erected, the fencing materials are converted to real estate by
annexation.
A North Carolina beachfront property owner owns the land on the ocean side of the property to the
average high tide line.
An elderly couple no longer need their large house, so they decide to sell the house and move into a cooperative apartment building. In a cooperative, they will
become stockholders in a corporation.
A business owner rents an empty building to use as an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions
can be legally removed by the tenant at the termination of the lease.
The rights of ownership of real property include all of the following EXCEPT
compatibility.
A person who owns one unit in a multi-unit structure together with a specified undivided interest in the common elements would own a
condominium.
An owner of a fee simple estate sells the property with the condition that he will continue to own the entire property until his death. The seller has a
conventional life estate.
A man lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, the man owns stock in the corporation and has a lease to his apartment. This type of ownership is called a
cooperative.
A deed that conveys ownership to the grantee as long as the existing building is NOT destroyed creates
defeasible fee estate.
All of the following are true statements about a condominium EXCEPT
each owner has a proprietary lease with the owners' association for the unit.
A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an
estate in remainder.
A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a
fee simple determinable estate.
A person who has complete control over a parcel of real estate is said to own a
fee simple estate.
The most all-inclusive type of real property ownership is a
fee simple estate.
Personal property does not include
fixtures
A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building
in severalty.
The phrase, bundle of legal rights
is part of the definition of real property.
A property owner conveys the ownership of his apartment building to a nursing home, anticipating that the rental income will help pay for his father's care at the home. When his father dies, the original owner will recapture the ownership of the apartment building. This is an example of a
life estate pur autre vie.
Generally, personal property can be distinguished from real property by its
mobility
The ownership rights to real estate include all of the following EXCEPT
navigable rivers running through the property.
After construction of a building over a railroad right-of-way, the trains may
operate as usual
A life estate conveys to the life tenant
ownership for life.
A trade fixture is considered
personalty.
In order to create a joint tenancy relationship in the ownership of real estate, there must be unities of
possession, time, interest, and title.
fixtures are
real property
Three joint tenants own a parcel of land. One owner sells his interest to a long-time friend. After the conveyance, the remaining original owners
remain joint tenants with each other.
A person currently has the legal right to occupy and use a certain residential structure. The interest in the property could be all of the following EXCEPT
remainder.
All of the following statements about manufactured housing in North Carolina are true EXCEPT
removal of the wheels and axles converts a manufactured home to real property.
The rights of the owner of property located along the banks of a small stream are called
riparian rights.
Real property can become personal property by
severance
All of the following are tests for determining a fixture EXCEPT
size of an item
A brother and a sister can NOT concurrently own real estate in North Carolina as
tenants by entireties.
One of two owners holds an undivided 60% interest and the other holds an undivided 40% interest. The two owners probably hold their interests as
tenants in common
A property held as tenancy by the entirety in North Carolina requires that
the co-owners must be husband and wife.
An ownership interest that is based on pre-set occupancy periods occurring over five years or more is called
time-share ownership
A commercial tenant attaches several items to the rental property during the term of the lease. Those items are considered
trade fixtures and may be removed by the tenant by the end of the lease.
The North Carolina owner of a secluded area adjacent to the Atlantic Ocean noticed that people from town walked along the shore in front of this property. The owner learned that the local citizens had been walking along this beach for years. The owner went to court to try to stop people from walking along the water's edge in front of the property. The owner is likely to be
unsuccessful, because the owner's property extends only to the high-water mark and the public can use the land beyond this point.