Real Estate Prelicensing Unit 2
An earthquake resulted in the loss of land. This is an example of: Choose only ONE best answer. A accretion. B reliction. C avulsion. D erosion. CONFIRM
C) Avulsion This answer is correct. The sudden and violent loss of land from an earthquake, a swollen river sweeping away an outcropping of land, or two ends of a barrier island washing away during a hurricane, are examples of avulsion. Erosion is the gradual loss of land over time. Reliction is the extension of land when water permanently recedes. Accretion is the gradual extension of land through soil deposits (aluvium or aluvian).
Adam, Ben and Charles purchase a property and hold title as tenants in common. If Adam later sells his interest to David, then David, Ben and Charles will jointly own the property as: Choose only ONE best answer. A tenants by entirety. B partners with survivorship. C joint tenants. D tenants in common.
This answer is correct. When a tenant in common sells his/her interest in a property to another, the new tenant will own as a tenant in common. To own as joint tenants the purchase must have the unities of possession, interest, time and title. This means that joint tenants must acquire the property at the same time, from the same source , with the same level of ownership. NOTE: Joint tenancy is treated differently in NC. It should not be tested on the State exam, however will be tested on the National exam.
An example of an overlay zone or district is a (an) Choose only ONE best answer. A flood plain zone. B single-family zone. C spot zone. D multi-family zone.
A) flood plain zone. Overlay districts add an additional layer of restrictions to the use of a property. For example, an area is zoned as single-family residential, however is also located in a historic district. The historic district is an overlay zone or district. A municipality may limit the ability to build based on a property being located in a flood zone, which is another example of an overlay district. An area can be zoned to allow a certain density or activity like single or multi-family units. Spot zoning is changing the use of a property without going through the normal rezoning procedures for the benefit of the one owner.
Unless the parties to a sales contract agree otherwise, cultivated crops that are growing in a farmer's field are considered Choose only ONE best answer. A Personal Property B Fixtures C Real Property D Fructus naturales CONFIRM
A) Personal Property The correct answer is 'A' Annual crops / cultivated crops such as corn, specialty vegetables and tobacco are personal property known as emblements. Unless the contract states otherwise they can be harvested by the farmer. Fixtures are items of personal property that are attached to real property and are expected to remain upon sale unless the contract states otherwise. Real property includes land, improvements and the bundle of rights. Fructus naturales are plants and trees planted in the ground which remain with the property unless the contract states otherwise.
Which of the following hybrid forms of ownership would be defined as ownership of the unit purchased as well as the land that it rests upon, with the homeowners association owning the common areas? Choose only ONE best answer. A Rowhouse B Condominium C Timeshare D Co-op
A) Rowhouse A townhouse may also be called a rowhouse, where the owner purchases the townhome unit as well the land the unit rests upon, while the HOA owns the common areas. An owner of a condo would own the airspace of the unit as well as co-ownership of the common area, thus blending ownership in severalty and tenants in common. The definition of a timeshare is an interval ownership where the buyer must have 5 or more non-consecutive periods of time, for at least 5 years, have 5 days to terminate or rescind the contract and the developer must retain sale proceeds in escrow account for at least 10 days unless the buyer terminates. A co-op is corporation owned property - the buyer receives a share of stock and a proprietary lease, thus they do not have direct ownership of a unit.
A life tenant may do which of the following during his life estate? Choose only ONE best answer. A Sell or rent his life estate B Timber the land to pay property taxes. C Mortgage the property requiring future owners to pay the balance. D Refuse to repair a leaking roof. CONFIRM
A) Sell or rent his life estate This answer is incorrect. The correct answer is 'A' A life tenant can sell his/her interest and mortgage the property, however it can only be for the period of time that the life estate exists. The new owner of the life estate would lose his/her interest in the property when the original life tenant dies. Estovers permits a life tenant to cut down trees for fuel or repairs. The life tenant cannot waste the property by selling off trees or failing to make repairs.
A beach front property owner owns to the Choose only ONE best answer. A average high tide line. B average low tide line. C international waters line. D middle of the foreshore.
A) Average hide tide line This answer is correct. Properties that border a lake or ocean, something with a tide, are governed by littoral rights. The property owner owns to the mean / average high tide mark. Riparian rights apply to ownership along a flowing water (river / stream).
The degree, quantity, nature and extent of interest which a person has in real property is known as a (an) Choose only ONE best answer. A estate. B appurtenance. C encumbrance. D first deed of trust.
A) estate This answer is correct. This is the definition of an estate. An appurtenance is an improvement to the property. An encumbrance is a charge against the property - lien, restrictive / protective covenants, encroachment, deed restriction, etc. A deed of trust is a financial lien against the property in a title theory state.
A local municipality requires all parking lots to be surrounded by a sidewalk and certain trees and other landscaping. An owner of a commercial building needs to expand the parking lot to allow for more spaces due to high demand of tenants. The owner would seek a/an: Choose only ONE best answer. A rezoning. B variance. C special use permit. D easement.
B) variance. A variance is permission to waive a rule rather than changing the use of a property, such as asking for a waiver of the landscaping requirements in order to add more spaces. A special use permit is something already provided for in current planning and zoning that fast tracks approval for something that is in the best interest of the public (hospital, museum, etc). An easement is typically for ingress/egress, should be in writing and recorded to protect against third party transfers, and is an encumbrance on the property.
Mrs. Gonzales and her son, Jose, own property as joint tenants with the right of survivorship. Mrs. Gonzales is married to her husband Kevin for over 30 years. If Mrs. Gonzales dies, her son: Choose only ONE best answer. A inherits the property. B will own in severalty through survivorship. C receives half of the interest and her husband receives the other half by marital rights D Her husband receives her interest through survivorship
B) will own in severalty through survivorship. When a property is owned by 2 people as joint tenants and one of the joint tenant's dies, the surviving tenant will own in severalty. Joint tenancy has the right of survivorship (passes to other joint tenants) rather than being inheritable and passing to the heirs. The transfer is automatic and does not require court action. The husband would not have an interest in the property.
John was given real property for his natural life. Which of the following statements in INCORRECT? Choose only ONE best answer. A John has a freehold estate B John has a fee simple estate C The duration of this estate is only for the length of John's life D The estate can be encumbered by John, but only for the duration of his life
B)John has a fee simple estate This answer is correct. John has a freehold estate, however does not have an inheritable fee simple estate such as fee simple absolute. He does have a non-inheritable conventional life estate. A conventional life estate is only for the person's lifetime. Conventional life estates are intentionally created.
The right of a life tenant to take wood from the premises for necessary fuel and/or repairs is called the right of Choose only ONE best answer. A replacement. B estovers. C devise. D emblements. CONFIRM
B) estovers The correct answer is 'B' Estovers is the right of a life tenant to use timber for fuel or repairs, however does not permit the life tenant to waste the property and sell it for profit. A devise is a gift of real property in a will. Emblements are annual crops (fructus industrialis) that are personal property.
An action brought by a co-owner of property to compel the severance of respective interests is an action for Choose only ONE best answer. A foreclosure. B partition. C quiet title. D forfeiture.
B) Partition This answer is correct. A suit for partition asks the court to force the sale. Foreclosure occurs when mortgage or H.O.A. obligations are not paid and the property is sold to cover some or all of the debt. A suit to quiet title asks the court to settle which party has the highest claim to the property.
Which of the following would best define a tenancy for years? Choose only ONE best answer. A Rental of a property from period to period that automatically renews for 30 days unless either party terminates. B Rental of a vacation home for 2-weeks that automatically terminates. C Rental of a property for an indefinite period of time which can be terminated at will. D Rental of a vacation home for a period that does not exceed 90 days.
B) Rental of a vacation home for 2-weeks that automatically terminates This answer is incorrect. The correct answer is 'B' An estate for years or tenancy for years has an automatic end date. No notice is required to be given since it has a definite end date. A periodic estate that automatically renews is an estate from period to period or year to year. Either landlord or tenant may give notice to terminate based on the agreed upon time frame in the lease agreement. An estate that can be terminated by either party without notice is best know as an estate at will. A vacation rental is defined as rental of a property that is not the tenant's primary residence for 90-days or less.
If Mary and Joe purchase a property and hold the title as tenants by the entireties, and Joe subsequently dies, his interest will automatically pass to Choose only ONE best answer. A whoever Joe left his interest to in his will. B Joe's heirs at law. C Joe's co-owner and wife Mary. D Joe's children who survive him. CONFIRM
This answer is correct. When a property is owned tenancy by the entireties, it automatically passes to the surviving spouse regardless of what is stated in a will or if there is no will at all. Tenancy by the entirety ownership is only available to married couples. NOTE: A will cannot defeat joint tenancy or tenancy by the entirety.
When the granting clause of a deed reads "from A to B so long as the property is used as a restaurant," it is proper to say that: Choose only ONE best answer. A ownership is fee simple absolute. B ownership is pur autre vie. C ownership is defeasible. D ownership is non-transferable.
c) ownership is defeasible This answer is incorrect. The correct answer is 'C' The granting clause creates a reversionary interest if the restriction is violated. B will own the property - and can will it, sell it or transfer it with the same restriction up to the point that the restriction is violated. This ownership is defeasible, which means able to be defeated. Defeasible estates may be determinable (automatic loss) or conditional (courts). Pur autre vie is a life estate that is inheritable as someone else is the measuring life.
Which of the following would require a contract to be in writing in order to be enforceable? Choose only ONE best answer. A Connor Act B Marketable Title Act C Good Settlement Act D Statute of Frauds
-D) Statute of Frauds The Statute of Frauds requires certain real estate documents to be in writing in order to be enforceable. Real estate purchase contracts, options, installment land contracts, right of first refusal and right of first opportunity all must be in writing. Lease agreements for more than 3 years must be in writing to be enforceable. The Connor Act protects against the "con-man", where a party would record a deed or lien to give constructive notice of the transfer or encumbrance, meaning it would be enforceable against 3rd parties. The Marketable Title Act extinguishes old claims on the property after 30-years which would remove a cloud on the title. The Good Funds Settlement Act requires that a closing attorney receive all funds and record the deed before release funds or giving the keys to a buyer.
Local zoning ordinance allows property owners to have up to 15 chickens and/or 15 goats when a property is at least 1 acre. Sarah owns property in this area, however lives in a subdivision with protective covenants that state an owner cannot have more than 10 chickens and no goats. Sarah decides to sell the property and lists with Karen, a licensed provisional broker. A prospective buyer asks Karen if she can have chickens on the property. Which of the following statements is TRUE? Choose only ONE best answer. A The prospective buyer can have no more than 10 chickens and no goats. B The prospective buyer can have no more than 10 chickens and 10 goats. C The prospective buyer can have no more than 15 chickens but no goats. D The prospective buyer can have no more than 15 chickens and 15 goats.
-A) The prospective buyer can have no more than 10 chickens and no goats. The most restrictive rule will apply to the property whether it is the local zoning law or restrictive/protective covenants. The protective covenants are more strict and therefore the owner must meet these requirements. In the event that the owner violates the covenants, a complaint may be filed with the homeowner association.
A restrictive covenant limits the use of a property and therefore is: Choose only ONE best answer. A an encumbrance to real property. B a right of the government to dictate what a person can or cannot do with his property. C enforced by a suit to partition. D the right of the government to take property for public good.
-A) an encumbrance to real property. Deed restrictions are an encumbrance to real property that restrict the use. Deed restrictions create defeasible fee estates - that may terminate automatically (determinable) or require court action (conditional). Restrictive covenants (protective covenants) are private use restrictions typically placed on a property by a developer when building a subdivision. The most restrictive rule will apply when evaluating public and private use restrictions. The government can dictate what a person can do with his or her property through zoning regulations. Encumbrances include deed restrictions, restrictive/protective covenants (CC&R's), easements and encroachments.
Aiden wants to build an 5-story office building on vacant lot that is zoned for commercial purposes and meets the zoning rules. The property has a deed restriction that does not permit building higher than 4 stories. Which of the following statements is correct? Choose only ONE best answer. A Aiden must obtain a variance from the city to build the 5-story building. B Aiden must have the property rezoned by the city to build the 5-story building. C Aiden would receive a permit from the city to build the 5-story building. D Aiden can remove the restriction by filing a suit to quiet title with the county court.
-Aiden would receive a permit from the city to build the 5-story building. It is the responsibility of the owner and an agent, if they are involved in the transaction, to be aware of deed restrictions. It is not the responsibility of the city or county to review deeds to determine if deed restrictions exist. Therefore, the city may issue a permit that violates the deed restriction. If Aiden builds a five-story building, depending how he owns the property, as fee simple determinable or subject to a condition subsequent, he may automatically lose the property. Deed restrictions run with the land and any subsequent owner would have to honor them or risk the loss of the property.
Which of the following may a property owner NOT do to a property that is grandfathered as a non-conforming use? Choose only ONE best answer. A Sell the property B Add improvements to the property C Continue the non-conforming use D Demise the property
-B) Add improvements to the property This answer is incorrect. The correct answer is 'B' A non-conforming use will not be able to expand. A legal non-conforming use can be sold, exchanged or transferred according to a will so long as the use is continued
A property was built as a single family home in 1920. In 1980 the property was split into a duplex as it is located near a popular college, which did not violate the local zoning ordinance. In 1990, the local municipality rezoned the area to single family residential only. The property is considered:
-B) a legal non-conforming use. From 1920 through 1990 the property is a legal conforming use. When the city changed the zoning requirement, the property would be grandfathered and may continue as a legal nonconforming use. The owner does not need to seek permission or a variance to continue. It is important to note that a property being used for an illegal purpose cannot be grandfathered.
The purpose of subdivision regulations is: Choose only ONE best answer. A to permit deviations from a master plan created by a city planning commission. B to ensure that a new residential subdivision is properly planned and laid out. C to create uniformity in improvement styles. D to increase the income tax liability of developers.
-B) to ensure that a new residential subdivision is properly planned and laid out. Subdivision regulations allow a municipality to control growth. It limits the liability of taxpayers by preventing a developer from building a subdivision that would impact city services - schools, fire protection, police protection, etc., without the government's approval. Lots can be offered for sale once preliminary approval has been obtained. The buyer cannot close on the purchase of a lot until final approval is obtained. Restrictive/protective covenants (CC&R's) are private restrictions that limit the use of a property.
Jane and Kevin own a parcel of property outside of North Carolina as joint tenants. They received preliminary approval for a new subdivision and have set up a sales center, and have started offering lots for sale. Kevin is involved in a tragic accident and dies. Who owns the development? Choose only ONE best answer. A Kevin's heirs will own his share of the development and Jane will retain her share. B Jane will own her share under the laws of intestate succession. C Jane will own the entire property in severalty. D Jane will retain both shares of the property and continue to own as a joint tenant.
-C) Jane will own the entire property in severalty. When a property is owned under joint tenancy, there is a right of survivorship, which means the property passes to the other joint tenant. One way to remember this is "you don't pass a joint to your kids". Death does not automatically terminate joint tenancy, however when there is only one owner remaining, that owner will own in severalty.
If an area is proposed to be rezoned from manufacturing to residential, and a factory is already located within the area, the factory Choose only ONE best answer. A must be torn down. B must apply for a variance. C will become a preexisting legal non-conforming use. D must cease operation.
-C) will become a preexisting legal non-conforming use. When the government through police power changes zoning requirements, properties that were allowed prior to the change will be grandfathered in as a legal non-conforming use. There is no need to apply for a variance, cease operations or demolish the property. The property can be sold, inherited or conveyed without disturbing the legal non-conforming use.
A property has been zoned for light industrial for more than 50 years. The local zoning board recently changed the zoning to allow for high density residential apartments and condos. A manufacturing facility is located in the area. Which of the following statements is TRUE? Choose only ONE best answer. A The manufacturing facility will be required to relocate to a new area that allows the light industrial use. B The manufacturing facility owners will need to seek a special use permit to continue operations. C The manufacturing facility owners will need to obtain a variance to allow operations to continue. D The manufacturing facility is a legal non-conforming use and no action need to be taken by the owners.
-D) The manufacturing facility is a legal non-conforming use and no action need to be taken by the owners. A property use that was previously permitted will become a legal non-conforming use when zoning rules change. No action is required to continue the previously approved use, however if the non-conforming use is abandoned, then this exception terminates. A special use permit is included in long term planning when something for the public good (affordable housing, hospital, museum, etc) is needed and a general area has been designated. The first party to seek approval to build, will be grated even if it does not comply with the current zoning in that area and the party will not have to go through the normal rezoning process. A variance is used to seek permission for a minor change in current rules - need more parking, etc. A rezoning is use to change the intended use of a property - form residential to commercial, for example.
Under its right of police power, a city government can NOT do which of the following? Choose only ONE best answer. A Regulate and enforce building design and construction B Restrict building heights C Restrict use of land without compensation D Take possession of land without compensation
-D)Take possession of land without compensation This answer is correct.The government is permitted to take property that is for the public good, however must pay fair market value to the current owner. Eminent domain is part of the government's police Powers. Condemnation would be the action of taking the property.
Which of the following statements is TRUE regarding property ownership? Choose only ONE best answer. A A buyer can be deeded fee simple title of a condominium unit. B The owner of a co-op apartment unit owns an undivided tenancy in common interest in his or her unit. C Only townhouses and condominiums can be built in a planned unit development. D A townhouse owner only owns the airspace of his/her unit an co-owns the common areas.
A)A buyer can be deeded fee simple title of a condominium unit. This answer is incorrect. The correct answer is 'A' An owner of a condo will own the airspace of the unit and co-own the common areas. Condo ownership blends severalty and tenants in common ownership. Planned unit developments may include single-family dwellings, townhouses, condos, and commercial property. When an individual purchases a co-op, they are purchasing a share of stock and a proprietary lease. They do not own the real estate directly as a tenant in common or otherwise. Townhouse owners own the unit and the land that it rest on, and the H.O.A. owns the common areas. NOTE: A co-op is corporation owned property. What do you get when you purchase a corporation? A share of stock.
John and Marsha each own property prior to marriage. After marrying, Marsha wants to sell her "pre-marriage" property. Which of the following is TRUE? Choose only ONE best answer. A Mary and John must sign the deed to legally transfer the property to avoid a cloud on the title. B Ownership changes to tenancy by the entirety so both spouses must sign the deed. C Mary may sell the property with John's signature since the deed lists ownership in severalty. D John may sell the property without Mary's signature since he is her spouse.
A)Mary and John must sign the deed to legally transfer the property to avoid a cloud on the title. In North Carolina, when a couple marries each spouse has a marital interest in the property owned by the other spouse, including pre-marriage property, unless a prenuptial agreement is signed. To convey property both spouses must sign the deed to sell the property (1 to buy; 2 to sell). NOTE: To own property as tenancy by the entirety, a couple must be married at the time of purchase. Marriage does not change the ownership without specific legal action. Tenancy by the entirety is presumed for married couples as it has the most assurances.
Kyle purchased a property in severalty in 2009 which he has lived in with his son Mike. In 2018 Kyle marries Meredith and they celebrate their honeymoon in Aruba. In a freak diving accident, Kyle is killed by a shark. Which of the following statements FALSE if Kyle died intestate? Choose only ONE best answer. A Meredith owns the property in severalty. B Kyle's heirs will have an ownership interest in the property that will be transferred by the court. C Meredith has a marital interest in the property. D Mike is an heir to the property. CONFIRM
A)Meredith owns the property in severalty Getting married will never change any form of ownership interest. Meredith has a marital interest in the property and both she and Mike are heirs. Since Kyle died intestate, the heirs are "in-the-state" where the courts will disperse his assets. Only a couple that is married at the time of purchase can take title as tenants by the entirety.
Alexis rents an empty building to use as an ice-cream parlor. She subsequently installs large freezer units and builds several service counters. Which of the following statements is TRUE? Choose only ONE best answer. A These items are fixtures that belong to the landlord. B Trade fixtures require a U.C.C. fixture filing with the Register of Deeds office. C These items are considered trade fixtures which may be removed at the end of the lease. D These items are considered estovers which may be removed prior to lease expiration.
C These items are considered trade fixtures which may be removed at the end of the lease. This answer is correct. Items used in a trade or business are considered trade fixtures. While they appear to meet the definition of a fixture, they remain personal property, unless abandoned by the tenant. These trade fixtures can be removed prior to the expiration of the lease. If the tenant fails to remove the trade fixtures prior to the expiration of lease, the trade fixtures will be abandoned and become a fixture that is owned by the landlord. U.C.C. Fixture Filings establish a lien against an item that allows the lien-holder to remove the item for non-payment. Estovers is the right of a life tenant to cut wood for fuel or to make repairs.
When two or more individuals own real property as tenants in common, each owner holds certain ownership rights. Of the following rights, a tenant in common may NOT Choose only ONE best answer. A sell her interest. B mortgage her interest. C exclude other tenants from the property. D will her interest.
C exclude other tenants from the property. When multiple individuals or co-tenants own a property they own a percentage of the whole property and cannot exclude other co-tenants from the property. Their interest can be sold to another without permission from the other co-tenants. They can pledge their interest in the property as collateral for a debt, however cannot mortgage the entire property. When a property is owned as tenants in common it is inheritable.
Matt, Chris, Samarah and Tiffany own a property under joint tenancy. Chris dies, and upon review of his will he has left all of his property to his daughter Ellie. Which of the following statements is TRUE? Choose only ONE best answer. A Matt, Samarah, Tiffany and Ellie now own the property as joint tenants with the right of survivorship. B Matt, Samarah, and Tiffany continue to own the property as joint tenants and Ellie owns Chris's share of the property as a tenant in common. C Matt, Samarah and Tiffany own the property as joint tenants. D Matt, Samarah, Tiffany and Ellie own the property as tenants in common.
C) Matt, Samarah and Tiffany own the property as joint tenants. The correct answer is 'C' Joint tenancy cannot be defeated by a will. You don't pass a joint to your kids. When Chris died his share automatically pass to the other surviving joint tenants, who now own a 1/3 interest in the property. NOTE: Had Chris sold his 25% interest in the property to another party, they would have owned as tenants in common without disturbing Matt, Samarah and Tiffany's ownership as joint tenants.
A couple were married for 20-years, owning 3 properties as tenancy by the entirety, however recently divorced. Which of the following statements is TRUE? Choose only ONE best answer. A When one of the owners dies, the property will automatically pass the surviving co-owner. B Ownership will change from tenancy by the entirety to joint tenancy without the right of survivorship. C Ownership will change from tenancy by the entirety to tenants in common without the right of survivorship. D In the event that one of the owners agrees to give the property to the other co-owner it would be transferred by a special warranty deed.
C) Ownership will change from tenancy by the entirety to tenants in common without the right of survivorship. Tenancy by the entirety is terminated when a divorce is finalized and converts to tenancy in common. Right of survivorship means that the property will automatically pass without court involvement upon death of a co-owner and is found when property is owned as joint tenants or tenants by the entirety. In a divorce, property typically changes hands through a quitclaim deed.
A property is located near a flood hazard area and the lender is concerned that it may also be at risk for flooding. Which of the following statements is FALSE? Choose only ONE best answer. A A lender may require a survey to determine if the property is located in a flood hazard area. B The buyer will be required to obtain flood insurance if the property is financed with a loan that is insured or guaranteed by the government and is located in a flood hazard area. C The local municipality sets the requirement to obtain flood insurance. D The lender will require the buyer to obtain flood insurance prior to closing on the property when the mortgage is federally related.
C) The local municipality sets the requirement to obtain flood insurance. A lender may require a survey to determine if a property is located in a flood zone. Often a flood certification is obtained rather than a survey. The buyers required to obtain flood insurance prior to closing and maintain that flood insurance when they obtain a federally related mortgage. Federally related means that the government ensures or guarantees the loan or the bank is FDIC insured.
The most complete interest one can hold in a property is known as a Choose only ONE best answer. A qualified fee estate. B quitclaim estate. C fee simple estate. D life estate.
C) fee simple estate This answer is incorrect. The correct answer is 'C' The greatest form of ownership is ownership in fee or fee simple absolute. A qualified fee - fee simple determinable or conditional is less complete as it is possible to lose the property when the deed restriction is violated. A life estate is only for the lifetime of the party granted the life estate and is not inheritable (unless pur autre vie - but still limited to the measuring life).
A builder receives preliminary approval to build a new subdivision. The streets in the subdivision have been built according to North Carolina Department of Transportation standards. The street sign does not indicate that the roads are private. Which of the following statements is TRUE? Choose only ONE best answer. A If the subdivision is located within city limits the streets are considered public, unless the sign indicates that it is private. B The builder is not required to disclose to potential buyer's that the roads are public and not private. C The streets are not public as they have not met the requirements to become public roads. D A seller cannot sell lots in a subdivision located within city limits unless the roads are public.
C)The streets are not public as they have not met the requirements to become public roads. This answer is incorrect. The correct answer is 'C' For streets to become public, they must be built according to DOT standards, dedicated to the DOT and accepted by the DOT. Not all streets located in the city are public, although they often are. You are more likely to have privately maintained roads when you are listing or selling property outside of the city's municipal limits. The developer and the listing agent must disclose to potential buyers that roads will be public or privately maintained.
Curt is selling his house to Hank. Curt advertised the property on Craigslist and Facebook, including his washer and dryer in the sale of the property. Hank writes an offer with no mention of the washer and dryer. Which of the following statements is TRUE? Choose only ONE best answer. A Curt is obligated to leave the washer and dryer because he offered to convey them to the buyer in the online advertisement. B Curt is obligated to leave the washer and dryer as they are connected to the plumbing and electrical systems and therefore are considered fixtures. C Curt is not obligated to the leave the washer and dryer as they are trade fixtures that can be removed without further agreement. D Curt is not obligated to leave the washer and dryer as they are personal property and should have been requested in the contract.
D) Curt is not obligated to leave the washer and dryer as they are personal property and should have been requested in the contract. This answer is correct. A washer, dryer and refrigerator are typically personal property. The buyer must request them in the offer to purchase and contract for the seller to obligated to leave them. A fixture must be left with the property, such as light fixtures, ceiling fans and mailboxes. A trade fixture is an item that is used in a trade or business. NOTE: To determine if something is a fixture or personal property first check the Offer to Purchase and Contract. Agreement between the parties controls. Otherwise, apply the Total Circumstance Test - I.R.M.A. 1) What was the INTENTION of the party that attached? 2) What was the RELATIONSHIP? Owner or renter? 3) METHOD - Will it cause damage to remove. and 4) ADAPTATION - Has it been customized to the space?
Damien purchases a 2 acre lot in Hillsborough, NC. His neighbor, Bob, owns a 5 acre lot that borders Damien's property along the side and rear boundaries. Damien discovers that Bob is a hermit and never leaves the house, so he builds a fence, taking 2 acres from Bob's lot. Which of the following statements is TRUE? Choose only ONE best answer. A Bob is protected from an adverse possession claim because he is not aware that Damien took his land. B Damien is entitled to Bob's entire property assuming all requirements for adverse possession are met. C Damien is not permitted to take Bob's property as an adverse possession claim can only be made when someone is tricked into believing that they own the land. D Damien is entitled to the portion of land that has been adversely taken assuming all of the other requirements for adverse possession are met.
D) Damien is entitled to the portion of land that has been adversely taken assuming all of the other requirements for adverse possession are met. An adverse possession claim is limited to the portion of the property actually taken. No addition protection against adverse possession are afforded due to blindness or being a hermit. Damien would need to take the property for 20 years as he does not have color of title. For an adverse possession claim to be successful, the taking of property be hostile (no permission granted), intentional, open, continuous, exclusive, adverse and notorious.
A property owner's bundle of rights does NOT include Choose only ONE best answer. A the right of possession. B the right of quiet enjoyment. C the right of control. D the right of eminent domain.
D) the right of eminent domain. An owner of a property does not have the right of eminent domain. Eminent domain is part of police power where the government can take property for public good. The owner must be paid the fair market value of the property. NOTE: The bundle of rights can be recalled by D.E.E.P. C. (disposition, enjoyment, exclusion, possession and control).
Which of the following is required for the sale of properties covered by the Interstate Land Sales Full Disclosure Act? Choose only ONE best answer. A An on-site property inspection by a prospective Purchaser B Cash transactions with no financing C Completion of roads and utilities prior to sale of any lots D Each purchaser must receive a "statement of record"
D)Each purchaser must receive a "statement of record" This answer is correct. Interstate land sales apply to the sale of property across state lines. The project must be registered with HUD and certain disclosures must be made to a purchaser or the purchaser may be able to terminate the contract. The developer must disclose the distance to nearby communities, the cost of utilities, the number of lots developed, etc.
Victor receives possession of property under a deed that states that he shall own the property as long as the present building standing on the property is not torn down. Victor holds a Choose only ONE best answer. A life estate. B non-destructible estate. C pur autre vie estate with qualifications. D defeasible fee estate.
D)defeasible fee estate When a owner will automatically lose ownership interest if they violate a deed restriction it is a fee simple determinable estate. Fee simple conditional or subject to a condition subsequent requires a challenge to ownership in court. A life estate will end upon the death of the life tenant. Pur autre vie is a life estate, where someone else is the measuring life, not the life tenant.????
