Segment 16: Estates in Real Property

To obtain an easement by prescription, the use of the property must be in a manner that is 1) open and notorious 2) hostile to the owner 3) continuous for the statutory period of time 4) with the owners passive consent to use 1 and 2 only 1, 2, 3, and 4 1, 2, and 3 only 1 and 3 only

1, 2, and 3 only To obtain an easement by prescription, the use of the property must be open and notorious, hostile to the owner, and continuous for the statutory period.

To obtain an easement by prescription, the use of the property must be in a manner that is 1) open and notorious 2) hostile to the owner 3) continuous for the statutory period of time 4) with the owners passive consent to use 1 and 3 only 1, 2, 3, and 4 1, 2, and 3 only 1 and 2 only

1, 2, and 3 only To obtain an easement by prescription, the use of the property must be open and notorious, hostile to the owner, and continuous for the statutory period.

In exercising the power of sale in a trust deed, at least ________ days must elapse after recording the notice of default before the trustee may hold a sale. 90 120 180 240

120 The trustee will record a Notice of Default and Election to Sell with the county clerk in the county in which the property is located. The notice must be filed at least 120 days before the date the sale is to occur.

The statutory right of redemption for a post-1985 Oregon real estate mortgage is terminated: 60 days following the foreclosure sale. 120 days following the foreclosure sale. 180 days following the foreclosure sale. upon entry of the judicial foreclosure decree of the court.

180 days following the foreclosure sale.

Jennifer LaPaz deeded property she owned in Bend, Oregon to Mark Antone for his life, with the understanding that the property would go to their child Justin after Mark's death. In this case: A) as long as Mark is alive, Justin has a remainder interest. B) when Mark dies, Justin will gain a fee simple absolute estate. C) as long as Mark is alive, Jennifer retains a right of reverter. B and C only A and B only A only A, B, and C

A and B only

John borrowed money from Eastern Bank and gave the bank a trust deed and promissory note. Which of the following describes the result of John's transaction with the bank? A) Voluntary encumbrance B) Involuntary encumbrance C) Secured debt D) Unsecured debt B and C only A and C only A and D only Neither A, B, C, nor D

A and C only John's transaction with the bank is (a) a voluntary and (c) secured debt.

Of the following, which is the best description of a land sale contract? A mortgage on land. A means of conveying title and possession with the seller retaining equitable title in the property until the buyer has paid the full sales price. A contract to purchase raw land. A method of buying real estate whereby the seller finances the purchase and the buyer takes possession, pays for the property in regular installments, but does not acquire actual title until the debt is paid in full.

A method of buying real estate whereby the seller finances the purchase and the buyer takes possession, pays for the property in regular installments, but does not acquire actual title until the debt is paid in full. The land sale contract is a security instrument available to a seller extending credit to a buyer for a real estate purchase. The buyer will sign a promissory note and land sale contract in favor of the seller. The land sale contract becomes the security instrument for the buyer's promise to pay the sum evidenced by the note.

The conveyance of a fee simple determinable A) creates the possibility of an automatic reversion of title. B) terminates upon the death of the grantee. A only Both A and B B only Neither A nor B

A only

The conveyance of a fee simple determinable A) creates the possibility of an automatic reversion of title. B) terminates upon the death of the grantee. Both A and B A only B only Neither A nor B

A only

An estate in real property A) can exist simultaneously with another person who holds an estate in the same property. B) can involve a present or future right of possession. C) can be of definite, indefinite, or unlimited duration. A and B only A, B, and C B and C only A only

A, B, and C

Unless there is a deed restriction to the contrary, what can the holder of a life estate do with the property? 1) Sell it. 2) Rent it. 3) Mortgage it. 4) Will it to another. A, B, and C only A and C only A and B only B and D only

A, B, and C only A life estate cannot be devised.

The trustee in an Oregon trust deed receives: A) full legal title to the real property described in the deed. B) the power to sell in the event the grantor (borrower) defaults. A only Both A and B B only Neither A nor B

B only

The trustee in an Oregon trust deed receives: A) full legal title to the real property described in the deed. B) the power to sell in the event the grantor (borrower) defaults. Both A and B A only B only Neither A nor B

B only

Denise owns a piece of property that has an easement appurtenant over an adjoining parcel of land owned by Lisa. Which of the following statements is true? The burdened property is owned by Denise. Denise, as holder of the dominant tenement, could use the easement for any purpose. If Denise bought Lisa's property, the easement would be eliminated by merging the two properties under one owner. This type of easement can only be created by prescription.

If Denise bought Lisa's property, the easement would be eliminated by merging the two properties under one owner. The easement appurtenant requires two tracts of land under separate ownership. If Denise bought Lisa's property the easement would be eliminated.

Which of the following statements is true about an easement appurtenant? It can be terminated by the dominant tenement. It will be terminated if abandoned by the servient tenement. It can be terminated by the servient tenement. It cannot be terminated.

It can be terminated by the dominant tenement. The dominant tenement can terminate the easement.

Which of the following statements is true about an easement appurtenant? It will be terminated if abandoned by the servient tenement. It can be terminated by the dominant tenement. It can be terminated by the servient tenement. It cannot be terminated.

It can be terminated by the dominant tenement. The dominant tenement can terminate the easement.

Which instrument transfers possession of real property but does not transfer ownership? Deed Lease Will Mortgage

Lease The deed and will transfer ownership. A lease transfers only a possessory interest and right to use the property. A mortgage is a financing security document.

Which of the following is the freehold estate? Leasehold estate Estate at will Life estate Estate for years

Life estate A freehold estate is an ownership estate. The three freehold estates are fee simple absolute, fee simple defeasible, and life estate.

Which is NOT an estate? Leasehold Reversion Remainder Mortgage

Mortgage A leasehold estate is a temporary right to use or hold the estate. An estate in remainder is an estate that vests after the termination of the prior estate, such as a life estate. An estate in reversion is the interest in an estate that reverts to the grantor or grantor's heirs at the end of a period, such as at the end of the life of a grantee. A mortgage is an interest in real property but it is NOT an estate.

Which of the following does NOT give a legal right to use the land that belongs to someone else? License Mortgage Easement in gross Easement appurtenant

Mortgage A mortgage is a type of financing security instrument, not a right to use land.

In a lien theory state, who holds title to real property when a mortgage is given? Mortgagee The lending institution who gave the loan. Mortgagor Secondary market lender

Mortgagor In lien theory states, the mortgagor (property owner) has actual legal title to the property, while the lender has a security interest in the property represented by the mortgage.

Mr. Crocket signed a two-year lease for a unit in an apartment building owned by Mr. Jefferson. One year into the lease, Mr. Jefferson sold the apartment complex to Mr. Madison. Which of the following statements is true regarding the sale? Mr. Crocket's current lease would be unaffected by the sale. Mr. Crocket would have first option to lease the apartment from Mr. Madison. Mr. Crocket would be required to move. Mr. Crocket would have to move out or negotiate a new lease with Mr. Madison.

Mr. Crocket's current lease would be unaffected by the sale. A transfer of title (a conveyance) does not terminate leasehold estates.

What type of lease is generally used when a sale-lease back is involved? Ground lease Gross lease Percentage lease Net lease

Net lease The sale-leaseback agreement is essentially two agreements, the sale agreement and a net lease agreement.

What type of lease is generally used when a sale-lease back is involved? Percentage lease Net lease Ground lease Gross lease

Net lease The sale-leaseback agreement is essentially two agreements, the sale agreement and a net lease agreement.

Which state is NOT a community property state? Idaho California Oregon Washington

Oregon California, Idaho, and Washington are community property states; Oregon is not a community property state.

Which is not a leasehold estate? Tenancy at will Tenancy by the entirety Tenancy for years Tenancy at sufferance

Tenancy by the entirety Tenancy for years, at will, and at sufferance are leasehold estates. Tenancy by the entirety is an ownership estate in real property held by spouses with the right of survivorship.

If the foreclosure sale proceeds are less than the outstanding debt and foreclosure expenses, which of the following remedies is available to the mortgagee? A judgment by default The mortgagee must absorb the loss The mortgagee may be able to obtain a deficiency judgment against the mortgagor Damages

The mortgagee may be able to obtain a deficiency judgment against the mortgagor Sometimes a property sold at a sheriff's sale does not sell for enough to cover the foreclosure judgment. When that occurs, the difference between the judgment and the sales price is known as a deficiency. The mortgagee may then sue the mortgagor for a deficiency judgment.

If the amount received at a sheriff's sale of a delinquent mortgage exceeds the amount of debt, who gets the excess? The mortgagee The county The mortgagor The purchaser

The mortgagor Any sums remaining after priority items have been paid will be given to the defaulting borrower.

When does the buyer take title when property is financed under a land sale contract? When the land sale contract is paid in full. On closing. On whatever date is stated in the agreement for purchase and sale. When 50% of the mortgage has been paid.

When the land sale contract is paid in full. The land sale contract sets out the financing arrangement between the vendor and the vendee. Because the vendor retains title to the property until the vendee has fulfilled all obligations under the contract, there is no lien against title. The buyer (vendee) will receive title after completing the conditions of the contract with the vendor (seller).

A grantor owns a vacant lot adjacent to a university, wants to gift it to the university, but wants to have some control over how the university can use the gift. The grantor adds to the deed "I convey ownership in this lot so long as it is used for educational purposes." The university owns a license. a fee simple estate. a fee simple determinable estate. an easement.

a fee simple determinable estate. A fee simple determinable is an estate that will end automatically and revert to the grantor or the heirs of the grantor if the stated event happens (or fails to happen, as the case may be).

The greatest estate that a person can hold in land is a fee simple estate. an estate for years. a life estate. an easement.

a fee simple estate. The fee simple estate is absolute ownership, and the owner may do whatever they choose with the land; it is the greatest estate a person can hold. The owner has the right to exclusive possession, to use it, to commit waste upon it, and to dispose of it by deed or will.

The greatest interest an individual can have in real property is a fee simple estate. an estate for years. a life estate. a leasehold estate.

a fee simple estate. The fee simple estate is the greatest interest an individual can have in real property.

Don had a one year lease on an office space that expired. Don stayed on after the expiration of the lease with the consent of the landlord and began paying rent on a monthly basis. Don and the landlord have created an estate at sufferance. a month-to-month tenancy. a freehold estate. an estate in trespass.

a month-to-month tenancy. Don and the landlord have created a month-to-month tenancy.

The instrument of record to show that a mortgage has been paid in full is called: a retirement of mortgage. an estoppel certificate. a deed release statement. a satisfaction of mortgage.

a satisfaction of mortgage. In order to provide public notice that the note is paid in full, the lender will record either a satisfaction or release to clear a mortgage lien.

court order directing the sheriff to sell property is called: a notice of lis pendens. a deficiency judgment for sale. an attachment. a writ of execution.

a writ of execution. Writ of Execution is the document executed by a court ordering a property be sold to satisfy a debt.

All of the following are non-freehold estates EXCEPT an estate at sufferance. an estate at will. an appurtenance. an estate from period-to-period.

an appurtenance. A non-freehold estate is created through a lease or rental agreement and is also known as a leasehold estate. The tenant, the holder of the estate, holds no ownership interest in the real property but has the right to use the property; ownership remains with the landlord. An appurtenance is a fixture, not an estate.

Any right or restriction that passes with the title of real property is an appurtenance. personal property. an emblement. a reservation.

an appurtenance. An emblement is an annual crop grown or produced by a tenant. Personal property is any property that is not real property. A reservation is a clause in a deed reserving some right for the grantor. Any item that goes with the property (runs with the land) is an appurtenance. An appurtenance can be a right or restriction. Examples would be an easement to gain access across the neighbor's land or an agreement (a covenant) not to build a house taller than two stories.

Jack owns a mountain cabin on a piece of property that has no access road. An easement that can be created over an adjoining property in order to give Jack access is called a negative easement. an easement by necessity. an easement by prescription. a license.

an easement by necessity. The legal ability of one property owner to use a right-of-way over the land of another because the owner's property is landlocked from public roads is an easement by necessity.

SW Gas Company is given the non-revocable use of land across the common property of a subdivision. SW Gas Company has a prescriptive easement. an easement in gross. a license. an easement appurtenant.

an easement in gross. A prescriptive easement is acquired by continued use without permission of the owner for a period provided by state law. A license is revocable. An easement appurtenant requires two parcels of land from which one parcel benefits from the easement. SW Gas Company has an easement in gross; an easement in gross is attached to an individual rather than to the property.

If John is renting Wayne's house for 60 days, John has an estate at sufferance. a month-to-month tenancy. an estate for years. a periodic tenancy.

an estate for years. A periodic tenancy is a tenancy that continues for successive periods until the tenant or landlord gives proper notice, such as month-to-month. An estate at sufferance is when the tenant stays over after the legal tenancy expires and without the landlord's permission. An estate for years is of limited duration and has definite start and end dates.

A possessory right or ownership interest in real estate is called a lis pendens. an abstract of title. an estate. an ad valorem.

an estate. An estate is a possessory right or ownership interest in real estate.

A possessory right or ownership interest in real estate is called an ad valorem. an abstract of title. a lis pendens. an estate.

an estate. An estate is a possessory right or ownership interest in real estate.

Loan payments on a note secured by a trust deed are made to the __________ . mortgagee trustee beneficiary trustor

beneficiary The beneficiary is the lender. The beneficiary is the payee and holder of the promissory note.

The owner of a life estate can do all of the following EXCEPT rent it. devise it (will it to someone). sell it. mortgage it.

devise it (will it to someone) Devise = will; leave (real estate) to someone by the terms of a will. The owner of a life estate cannot devise (will) their interest or commit waste, but they can sell, rent, or mortgage the life estate for the term of the estate.

When a buyer purchases a home on a land sale contract, they receive equitable title. legal title. a remainder interest. a reversionary interest.

equitable title. The land sale contract is a security instrument available to a seller extending credit to a buyer for a real estate purchase. The buyer will sign a promissory note and land sale contract in favor of the seller. The seller retains actual legal title and the buyer has equitable title.

Most purchasers of homes borrow the necessary funds and pledge the property as security for the debt while they retain possession of the property. This is known as: conveyance. devise. leverage. hypothecation.

hypothecation. To hypothecate a property means to pledge the property as security for the payment of debt without giving up the use of the property.

A factor that distinguishes a license from an easement is that a license is revocable. can be assigned. is a permanent right. must be contained in a deed.

is revocable. A license is revocable at will by the party giving the license.

The mortgagee sues the mortgagor to obtain a judgment and court order to sell the property. This is known as: voluntary foreclosure. nonjudicial foreclosure. judicial foreclosure. strict foreclosure.

judicial foreclosure. When the mortgagor (i.e., borrower) is in default, the mortgagee (i.e., lender) will file a court action called a judicial foreclosure or statutory foreclosure.

An "estate for years" in real estate can also be called a fee. fee simple conditional. leasehold. fee simple determinable.

leasehold. An estate for years is a type of leasehold estate.

The lender in a mortgage is the __________ . mortgagee trustee trustor mortgagor

mortgagee The mortgagee is the lender on the mortgaged property and the party who receives the mortgage.

Jenn Hudson willed a piece of property to Willamette University for so long as the property was used for educational purposes. Ten years after Jenn's death and the transfer of the property to the university, the land became very valuable and the university sold the property to a developer who built an arcade on the property. Jenn's heirs challenged the legality of the transfer and sued. As a result, the development company was found to have a reversionary interest in the property. a fee simple interest in the property. no interest at all in the property. a tenancy in common with Hudson's heirs in the property.

no interest at all in the property.

After the trustee's sale is held and the property has been sold to the highest bidder, the grantor has: one year to redeem the property. 90 days equity of redemption. 120 days equity of redemption. no recourse.

no recourse. Five days before the trustee's sale, the borrower has no further rights or recourse, and there is no right of redemption period to wait out.

Peter rents his apartment from month-to-month. Peter has a life tenancy. tenancy at sufferance. lease for definite period. periodic tenancy.

periodic tenancy. A periodic tenancy is not for a fixed period like an estate for years; rather it is from period-to-period such as a month-to-month, week-to-week, or year-to-year. The periodic tenancy is also called an "estate from year-to-year." Because it has no definite expiration date stated in the agreement, the lessor or lessee will need to give proper notice to terminate the periodic tenancy.

To hypothecate is to: convert a fee simple into equitable title. pledge something as security for a debt deliver a judicial opinion. devise property.

pledge something as security for a debt The act of pledging collateral to secure payment of a debt is known as hypothecation.

Ownership in severalty occurs when two or more people have identical concurrent interests in the same property. property is owned by one person. a husband and wife in a community property state own the same property. two unrelated people own an equal interest in the property.

property is owned by one person. Severalty = Severed; Ownership in severalty means ownership is severed from all others and held by just one individual.

Seller financing under a mortgage is referred to as a: home mortgage. purchase money mortgage. conventional mortgage. chattel mortgage.

purchase money mortgage. A purchase money mortgage is one type of security instrument available to a seller for use with seller financing.

A tenant's rental agreement provides that the lessor guarantees the right to use the property without interference. This is known as the covenant of quiet enjoyment. seizen. title. against interference.

quiet enjoyment. Quiet enjoyment is the tenant's right to the undisturbed use and enjoyment of the leased property. The owner has the same right if the property is NOT leased.

A defeasance clause in a mortgage: requires that the borrower maintain the collateral and not commit waste. stipulates that the borrower will be able to regain clear title after the mortgage is paid in full. requires that the balance be paid in full upon default of the loan. indicates that the borrower has the authority to pledge the collateral.

stipulates that the borrower will be able to regain clear title after the mortgage is paid in full. The defeasance clause in loan documents stipulates that the borrower will be able to regain clear title after the debt is paid.

Ethel entered into a three-year lease for an office space. Ethel ignored the expiration date in her lease and continued to occupy the office against the wishes of the landlord. Ethel has a tenancy from year to year estate. tenancy at sufferance. tenancy for indefinite period. periodic tenancy.

tenancy at sufferance. A tenancy at sufferance (or estate at sufferance) is when the tenant wrongfully holds over after the expiration of the lease.

When an easement appurtenant exists between two parcels of land that are owned by different owners the dominant tenement is burdened by the easement. the servient tenement is given the right to cross the land of the dominant tenement. the servient tenement can revoke the use of the easement by giving proper notice. the dominant tenement is benefited by the easement.

the dominant tenement is benefited by the easement. The dominant tenement benefits from the easement, and the servient tenement is burdened by the easement.

Which statement about an appurtenant easement is FALSE? there must be at least two tracts of land under separate ownership. the easement runs with the land. the dominant tenement benefits by and the servient tenement is burdened by the easement. the dominant tenement must adjoin the servient tenement on at least two boundary lines.

the dominant tenement must adjoin the servient tenement on at least two boundary lines. The easement appurtenant is an appurtenance so it runs with the land and does not change even if the owners change. The dominant tenement benefits by the easement; the servient tenement is burdened by the easement. The easement appurtenant requires two tracts of land under separate ownership. There is no requirement that the dominant tenement must adjoin the servient tenement on at least two boundary lines.

In real estate law, the term tenancy refers to the holding of a possessory, non-ownership interest in real estate. the right of the owner to regain possession at the end of a lease term. a legal theory in which the owner may refuse to grant possession to another individual. an estate of inheritance.

the holding of a possessory, non-ownership interest in real estate. A possessory, non-ownership interest in real estate is called a tenancy.

The term "reversion" means the real property returns to the grantor. the property is hypothecated. the real property at the end of a tenancy passes to the grantee's heirs or assigns. escheat.

the real property returns to the grantor. Reversion means that the property reverts (returns) to the grantor.

The servient estate is the property upon which the easement is placed. owned by the tenant. severed from the larger parcel. that benefits from the easement.

upon which the easement is placed. A servient estate is the parcel of real estate upon which the easement is placed. A dominant estate is the parcel of real estate that has an easement over another piece of property (the servient estate).

The willful or negligent acts of a life tenant that cause damage to the property is an example of waste. violation of the covenant of seizen. unlawful trespass. a violation of the covenant of quiet enjoyment.

waste. Waste is to allow damage to occur to the property; waste is an unreasonable or improper use of the property by the person in possession.

In researching records at the county clerk's office, a first mortgage and a second mortgage on the same piece of property can usually be distinguished by: the notations made in the recording records by the county recorder. when the instruments were recorded. the words "first" or "second" preceding the phrase "this indenture." the date of the instrument.

when the instruments were recorded. Recording is the act of filing a lien document with the county recorder's office in which the property is located. A senior lien (e.g., a first mortgage) is one that is recorded before a subsequent lien (e.g., a second mortgage).

In researching records at the county clerk's office, a first mortgage and a second mortgage on the same piece of property can usually be distinguished by: when the instruments were recorded. the notations made in the recording records by the county recorder. the date of the instrument. the words "first" or "second" preceding the phrase "this indenture."

when the instruments were recorded. Recording is the act of filing a lien document with the county recorder's office in which the property is located. A senior lien (e.g., a first mortgage) is one that is recorded before a subsequent lien (e.g., a second mortgage).