Unit 2

All of the following are general judgment liens EXCEPT

The answer is a mortgage lien. General liens apply to all properties, real or personal, that are owned by the individual. A mortgage lien is one that is applied to 1 property.

All of the following are examples of freehold estates in real estate EXCEPT

The answer is estate for years. An estate for years is an example of a leasehold estate, which does allow possession of real estate. Fee simple, qualified fee, and life estate are all examples of freehold estates, which allow ownership and possession of real estate.

An encroachment describes improvements that

The answer is extend over adjoining lot lines. An example of an encroachment is a shed that extends 6 ft onto the neighbor's property.

Upon the death of a life tenant, the holder of the remainder estate will have what type of estate?

The answer is fee simple absolute estate. Upon the death of the life tenant, the estate either returns to the grantor, or reversionary interest, or goes to the remainderman. In either case, the estate will be a fee simple absolute.

The local utility company has negotiated an easement with a property owner for land to be used as part of the company's operations and delivery of service. This is an example of which type of easement?

The answer is gross. An easement in gross is one that is given to a person or company and is only a servient property.

When a person dies with a will, they are said to have died

The answer is testate. When a person dies with a valid will, they have died testate, as they had a last will and testament.

If no period is set for a residential tenancy but rent is to be paid monthly, the lease is

a periodic tenancy.

A property owner has received a notice from the county assessor indicating the assessed value of property for the coming year. The property owner believes the value was calculated in error. The property owner would discuss the matter with

he answer is the board of appeals. When property owners question the assessed value of real estate, they bring the matter to the board of appeals, which will make a determination if the property's assessed value should be adjusted.

Howard received ownership of a parcel of land with the condition that he agrees to farm the land. Should he stop using the land in accordance with the condition of ownership, he will forfeit it back to the grantor. This is an example of

The answer is a qualified fee. Qualified fee or fee simple defeasible places certain conditions of ownership by the grantor on the grantee as relates to ownership of the property. Should the condition be violated, the property will revert to the grantor.

Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been

The answer is a reversionary interest. If the estate returns to the grantor, it is known as a reversionary interest. If the estate goes to another party, that party has a remainder interest.

Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been A) a limited interest. B) a principal interest.

The answer is a reversionary interest. If the estate returns to the grantor, it is known as a reversionary interest. If the estate goes to another party, that party has a remainder interest.

The city in which Tom lives has decided to put in sidewalks in residential neighborhoods. The charge to the property owner for the cost of this sidewalk is called

The answer is a special assessment. Special assessments are levied against properties that benefit from a public improvement and therefore are assessed a portion of the cost of such improvement.

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

The answer is a specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor's property. A specific lien is 1 against a certain property, but a general lien covers the entire debtor's property, both personal and real. Both are enforceable in court.

The tenant who remains in possession after the lease expires and does so without the landlord's consent

The answer is a tenant at sufferance. A tenant staying after lease expiration without permission is a holdover tenant who has a tenancy at sufferance.

A landlord and a tenant have a 6-month lease that will end on October 31. This is an example of

The answer is an estate for years. An estate for years has a specific termination date.

Property taxes are calculated using which of the following formulas?

The answer is assessed value × tax rate = property taxes. Property taxes are calculated on the assessed value of property, which is determined by the county asses

Property taxes on real estate are paid to which of the following units of government?

The answer is county. Real estate property taxes are paid to the county in which the property is located.

As it relates to an estate for years leasehold estate on real estate, all of the following are true EXCEPT

The answer is death of the tenant terminates the lease. An estate for years has a specified termination date for the possession of the property. Therefore, the sale of the property or death of the landlord or tenant does not terminate the lease.

A property owner has received a notice that the city is planning to acquire 15 ft of privately owned property from landowners in the neighborhood for the purpose of expanding the city street. The city may acquire this property under which of the following government rights?

The answer is eminent domain. Eminent domain is the government right that allows the taking of privately held land for a public purpose. The property owner is entitled to fair compensation for the value of the land.

The city wants to acquire private land for a park. The city can obtain the land by paying fair value under the right of

The answer is eminent domain. The city has the right to take private property under eminent domain and must pay fair value to the owner.

A suit for condemnation would be used to exercise which governmental right?

The answer is eminent domain. The process is condemnation; the power is eminent domain.

What type of lien arises as a result of a judgment, estate or inheritance taxes, a decedent's debts, or federal taxes?

The answer is general. Each creates a general lien—a claim against all personal and real property of the debtor.

All of the following are associated with the government right of eminent domain EXCEPT

The answer is it is an example of voluntary alienation. When the government takes privately held land for a public purpose, it is deemed to be an involuntary separation of ownership and thus an involuntary alienation.

A seller has disclosed that a property has an easement; all of the following are true about the easement EXCEPT

The answer is it will terminate at closing. Easements are a nonrevocable right of use to another property. The land under the easement does not belong to the holder and does not increase the size of the holder's property, but it may increase the value of the holder's property.

Unless advance notice of termination is given by one party to the other in a lease, it will automatically renew for another month. This is an example of

The answer is periodic tenancy. A periodic tenancy is one that automatically renews for another rent period unless proper notice to terminate the lease is given by one party to the other in the lease.

An easement may be terminated in all of the following ways EXCEPT

The answer is revocation. A license is revocable, where an easement is not. Easements can be terminated if properties have been merged, there has been a release, or through court action if the easement is deemed to have been abandoned.

As relates to a qualified fee interest in real estate, which of the following is generally the case?

The answer is the property is normally a gift. A qualified fee or fee simple defeasible is normally a gift, as there are conditions placed on the grantees' ownership. Determining market value under such conditions is often difficult.

The type of lien that has priority over all other types of liens is

The answer is the real estate property tax lien. As relates to liens and their priority of claim on real estate, the property tax lien is always the top priority lien regardless of other liens associated with the real estate.

The state wants to acquire a strip of farmland to build a highway. Does the state have the right to acquire this land for public use?

The answer is yes, the state's right is called eminent domain. Escheat is the right to force a sale to the state; condemnation proceedings are the court process of establishing a fair price when the state's offers do not satisfy the seller.