Chapter 1
Which of the following would be defined as real estate as opposed to real property? a. Wells, driveways, and signs on a parcel of land. b. Mobile homes temporarily parked on a parcel of land. c. Timber that has been cut and is lying on a parcel of land. d. Business equipment an owner or tenant has placed on a parcel of land.
(a) Wells, driveways, and signs on a parcel of land. The legal concept of real estate encompasses land and all man-made structures that are "permanently" attached to the land. The phrase "permanently attached" refers primarily to one's intention in attaching the item. Obviously, very few if any man-made structures can be permanently attached to the land in the literal sense. But if a person constructs a house with the intention of creating a permanent dwelling, the house is considered real estate. By contrast, if a camper affixes a tent to the land with the intention of moving it to another camp in a week, the tent would not be considered real estate.
An estate at will a. cannot be terminated. b. is terminated only if so stated in the lessee's last will and testament. c. terminates on the death of lessor or lessee. d. terminates on the date specified in the lease agreement.
(c) terminates on the death of lessor or lessee. The estate at will, also called a tenancy at will, has no definite expiration date and hence no "renewal" cycle. The landlord and tenant agree that the tenancy will have no specified termination date, provided rent is paid on time and other lease conditions are met. For example, a son leases a house to his father and mother "forever," or until they want to move. The estate at will is terminated by proper notice, or by the death of either party.
A fee or life estate is held by an individual. This form of estate is referred to as a(an) a. tenancy in severalty. b. tenancy by the entireties. c. absolute fee simple. d. legal free simple
1.29 (a) tenancy in severalty. If a single party owns the fee or life estate, the ownership is a tenancy in severalty. Synonyms are sole ownership, ownership in severalty, and estate in severalty.
The "four unities" required to create a joint tenancy include which of the following conditions? a. Parties must acquire respective interests at the same time. b. Parties must be residents of the same state at the time of acquiring the interest. c. Parties must be family members. d. Parties must have joint financial responsibility.
1.31 (a) Parties must acquire respective interests at the same time. To create a joint tenancy, all owners must acquire the property at the same time, use the same deed, acquire equal interests, and share in equal rights of possession. These are referred to as the four unities.
Tanya buys a 4-bedroom condominium. As the new owner, she has the right to a. sell or mortgage the unit without impediment from individual owners of neighboring units. b. sell the interest in the physical unit separately from the interest in the common elements. c. prevent non-owners from using the unit owner's portion of the common elements. d. exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit.
1.49 (a) sell or mortgage the unit without impediment from individual owners of neighboring units. Condominium units can be individually sold, mortgaged, or otherwise encumbered without interference from other unit owners. An owner may not sell interests in the apartment separately from the interest in the common elements. Unit owners exclusively possess their apartment space, but must share common areas with other owners.
A condominium owner's share of maintenance and operations expenses are based on a. the unit's pro rata share of floor space. b. the unit's pro rata share of the property value as defined in the declaration. c. the number of shares the owner purchased in the condominium association. d. the assessed value of the condominium unit.
1.50 (b) the unit's pro rata share of the property value as defined in the declaration. The unit's pro rata share of the property's ownership as defined in the declaration determines the amount of a unit owner's assessment. For example, if a unit represents a 2% share of the property value, that unit owner's assessment will be 2% of the property's common area expenses.
Which of the following is true of a cooperative? a. A cooperative may hold an owner liable for the unpaid operating expenses of other tenants. b. The owners have a fee simple interest in the airspace of their respective apartments. c. Owners may sublease their apartments even if they sell their stock in the cooperative. d. The proprietary lease is guaranteed to have a fixed rate of rent over the life of the lease term.
A cooperative may hold an owner liable for the unpaid operating expenses of other tenants. Since the corporation owns an undivided interest in the cooperative property, debts and financial obligations apply to the property as a whole, not to individual units as in a condominium.
Under what conditions can two individuals own a property as tenants by the entireties? a. If they so elect at the time of acquiring title. b. If they are blood relatives. c. If they are married. d. If they incorporate.
If they are married. Tenancy by the entireties is a form of ownership reserved exclusively for husband and wife. It features survivorship, equal interests, and limited exposure to foreclosure. In some states it now applies to same-sex couples.
Riparian rights concern which of the following bodies of water? a. Lakes. b. Seas and oceans. c. Streams and rivers. d. Navigable lakes.
Streams and rivers. Riparian rights concern properties abutting moving water such as streams and rivers. If a property abuts a stream or river, the owner's riparian rights are determined by whether the water is navigable or not navigable. If the property abuts a non-navigable stream, the owner enjoys unrestricted use of the water and owns the land beneath the stream to the stream's midpoint. If the waterway in question is navigable, the waterway is considered to be a public easement. In such a case, the owner's property extends t the water's edge as opposed to the midpoint of the waterway.
When real property is held in a land trust, who controls the property? a. The trustor b. The trustee c. The beneficiary d. The mortgagee
The beneficiary A land trust allows the trustor to convey the fee estate to the trustee and to name himself or herself the beneficiary. The land trust applies only to real property, not to personal property. The agreement, or deed in trust, grants the beneficiary the rights to possess and use the property, and to exercise control over the actions of the trustee.
Which of the following is true of a tenancy in common? a. The co-owners must be related. b. The owners enjoy an indivisible interest. c. The tenants must acquire their interests at the same time. d. The tenants must pay equal amounts for their interest in the estate.
The owners enjoy an indivisible interest. The tenancy in common, also known as the estate in common, is the most common form of co-ownership when the owners are not married (though tenants in common can be married). The defining characteristics are: two or more owners; identical rights; interests individually owned; electable ownership shares; no survivorship; and no unity of time. With "identical rights," co-tenants share an indivisible interest in the estate, i.e., all have equal rights to possess and use the property subject to the rights of the other co-tenants
Which of the following is true of a joint tenancy? a. The tenants can determine the size of the share owned by each tenant. b. The size of the tenant's shares is determined by the amount of equity each has invested in the property. c. The tenants have an equal and indivisible ownership interest. d. There can be no more than two co-owners, and each has a fifty percent interest.
The tenants have an equal and indivisible ownership interest. In a joint tenancy, two or more persons collectively own a property as if they were a single person. Rights and interests are indivisible and equal: each has a shared interest in the whole property which cannot be divided up. Joint tenants may only convey their interests to outside parties as tenant-in-common interests. One can not convey a joint tenant interest.
A waterfront homeowner has just died. What will become of the water rights the owner enjoyed while living in the home? a. They revert to the state when the property is sold. b. They are extinguished. c. They are a personal right belonging to an individual owner, not attaching to the real property. d. They transfer with the property when the property is sold.
They transfer with the property when the property is sold. Littoral rights attach to the property. When the property is sold, the littoral rights transfer with the property to the new owner.
A real property interest that includes the right to possess is considered a. an estate in land. b. a leasehold estate. c. a fee simple estate. d. the bundle of rights.
an estate in land. Interests are principally distinguished by whether they include possession. If the interest-holder enjoys the right of possession, the party is considered to have an estate in land, or, familiarly an estate. Freehold and leasehold estates in land are further distinguished by whether the duration of the owner's rights can be determined.
Two people own a house, each having an undivided equal interest. Which of the following best describes what each party owns? a. Fifty percent of the physical house and the land it rests on. b One hundred percent of the home and the land. c. Fifty percent of the estate consisting of the indivisible whole of the real property. d. Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.
c. Fifty percent of the estate consisting of the indivisible whole of the real property. An undivided interest is an owner's fractional interest in an entire (undivided) estate, but not in a physical portion of the real property itself. An owner who has an undivided equal interest with another cannot exercise exclusive rights over a portion of the real estate, which is an indivisible whole.
A homeowner is very upset over a drone that a neighbor flies over his house. He takes his case to court to end this possible violation of rights. Does he have a case, and on what basis? a. No. The neighbor is not physically on his property. b. No. The drone is in the air, so he cannot exercise any surface rights. c. Yes. The owner has the right to stop encroachments. d. Yes. The drones infringe on his air rights.
d. Yes. The drones infringe on his air rights. Air rights apply to the space above the surface boundaries of the parcel, as delineated by imaginary vertical lines extended to infinity. Since the advent of aviation, property owners' air rights have been curtailed to allow aircraft to fly over one's property provided the overflights do not interfere with the owner's use and enjoyment of the property. The issue of violation of air rights for the benefit of air transportation is an ongoing battle between aircraft owners, airlines, airports, and nearby property owners.
In contrast to a tenancy in common, in a joint tenancy
there is a single title to the property. Whereas tenants in common hold separate title to their individual interests, joint tenants together hold a single title to the property. This is referred to as unity of ownership.
A retired couple has just bought a retirement home with a pier on a large lake. In this case the retirees' water rights extend to a. the high water mark of the body of water at the shoreline. b. the low water mark of the body of water at the shoreline. c. the center of the lake. d. the end of the pier.
the high water mark of the body of water at the shoreline. Ownership extends to the high-water mark of the body of water. The low water mark would imply that the owner owned the water itself at times of high water levels!
By contrast to a condominium, the owner of a cooperative owns a. shares in a corporation or association and a proprietary lease in a physical unit. b. a fee simple interest in a physical unit plus a tenancy in common in common elements. c. a tenancy in common in a physical unit and the common areas. d. a ground lease in the physical unit's pro rata share of land and a proprietary lease in the unit.
(a) shares in a corporation or association and a proprietary lease in a physical unit. In a cooperative, or co-op, one owns shares in a non-profit corporation or cooperative association, which in turn acquires and owns an apartment building as its principal asset. Along with this stock, the shareholder acquires a proprietary lease to occupy one of the apartment units.
If a joint tenant sells his or her interest to an outside party, a. the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner. b. the joint tenancy continues with the new owner as the third joint tenant. c. the joint tenancy terminates and all owners become tenants in common. d. the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner.
(a) the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner. A joint tenant may transfer his or her interest in the property to an outside party, but only as a tenancy in common interest. Whoever acquires the interest co-owns the property as a tenant in common with the other joint tenants. The remaining joint tenants continue to own an undivided interest in the property, less the new co-tenant's share.
The right to encumber a property means that the owner can a. sell the property to an encumbered party. b. pledge the property as collateral for debt. c. lease the property. d. assign the bundle of rights to another.
pledge the property as collateral for debt.. The right to encumber the property essentially means the right to mortgage the property as collateral for debt. There may be restrictions to this right, such as a spouse's right to limit the degree to which a homestead may be mortgaged.
An estate from period-to-period will continue as long as a. the tenant makes, and landlord accepts, regular rent payments. b. the term specified in the lease. c. the period is less than a year.a. the tenant makes, and landlord accepts, regular rent payments.
(a) the tenant makes, and landlord accepts, regular rent payments. In an estate from period-to-period, also called a periodic tenancy, the tenancy period automatically renews as long as the tenant pays rent in a timely manner and the landlord accepts it. At the end of a tenancy period, if the landlord accepts another regular payment of rent, the leasehold is considered to be renewed for another period. A conveyance of leased property does not cancel a leasehold interest.
Six people have identical rights in a property and enjoy an indivisible interest. However any of the owners may sell or transfer his/her interest without consent of the others. This form of ownership is a a. joint tenancy. b. homestead ownership c. tenancy in common. d. estate in severalty.
(c) tenancy in common. The tenancy in common, also known as the estate in common, is the most common form of co-ownership when the owners are not married (though tenants in common can be married). The defining characteristics are: two or more owners; identical rights; interests individually owned; electable ownership shares; no survivorship; and no unity of time. With "identical rights", co-tenants share an indivisible interest in the estate, i.e., all have equal rights to possess and use the property subject to the rights of the other co-tenants.
1.46 When a joint tenant dies, what happens to the tenant's interest in the estate? a. It passes to the decedent's heirs, who become joint tenants. b. It passes as a tenancy in common to the decedent's heirs. c. The joint tenancy terminates and becomes a tenancy in common with the decedent's heirs and the surviving tenants as co-owners. d. It passes to the surviving joint tenants.
(d) It passes to the surviving joint tenants. In most states, joint tenants enjoy rights of survivorship: if a joint tenant dies, all interests and rights pass to the surviving joint tenants free from any claims of creditors or heirs. When only one joint tenant survives, the survivor's interest becomes an estate in severalty, and the joint tenancy is terminated.
1.52 In a cooperative, real property is owned only by a. the individual unit owners. b. the individual unit owners and the cooperative association. c. the cooperative developer. d. the corporate entity of the cooperative association.
(d) the corporate entity of the cooperative association. The corporate entity of the cooperative association is the only party in the cooperative with a real property interest. The association's interest is an undivided interest in the entire property. There is no ownership interest in individual units, as with a condominium.
Unlike tenants in common, joint tenants a. own distinct portions of the physical property. b. cannot will their interest to a party outside the tenancy. c. may own unequal shares of the property. d. cannot encumber their interest to outside parties.
1.32 (b) cannot will their interest to a party outside the tenancy. The survivorship feature of joint tenancy presents an advantage to tenancy in common, in that interests pass without probate proceedings. On the other hand, joint tenants relinquish any ability to will their interest to parties outside of the tenancy.
In a community property state, John marries Patricia. Prior to the marriage John owned an SUV. During the marriage, John bought a Buick, John and Patricia bought a second property with money earned from Patricia's job, and each individual received a motorcycle from Patricia's uncle as a gift. What property is community property in this marriage? a. The SUV, the Buick, and the second property. b. The SUV, the Buick, the second property, and the motorcycles. c. The Buick and the second property. d. The Buick, the second property, and the motorcycles.
1.38 (c) The Buick and the second property Community property laws define property rights of legal spouses before, during, and after their marriage, as well as after the death of either spouse. Community property law distinguishes real and personal property into categories of separate and community property. Separate property belongs to one spouse; community property belongs to both spouses equally. Separate property is that property which is acquired prior to the marriage, by gift or inheritance during the marriage, property acquired by separate-property funds, or income from separate property.
When a tenant in common dies, what happens to the tenant's interest in the estate? a. It is divided equally among the surviving tenants in common. b. The surviving tenants must buy the interest from the deceased tenant's heirs or sell their interests to the heirs. c. It becomes a joint tenancy. d. It passes by probate to the deceased tenant's heirs
1.42 (d) It passes by probate to the deceased tenant's heirs. A deceased co-tenant's estate passes by probate to the decedent's heirs and devisees rather than to the other tenants in common. Any number of heirs can share in the ownership of the willed tenancy.
Ned grants his sister Alice an estate for as long as she lives. Her descendants, however, cannot inherit the estate. What kind of estate is it? a. An estate pur autre vie. b. An estate for years. c. An ordinary life estate. d. A legal life estate.
An ordinary life estate. A life estate is limited in duration to the life of the owner or other named person. Upon the death of the owner (ordinary life estate) or other named individual (pur autre vie life estate), the estate passes to the original owner (a reversionary interest) or another named party (a remainder interest). Thus with the life estate, the owner enjoys full ownership rights during the estate period, and holders of the future interest own either a reversionary or a remainder interest.
Which of the following best describes the physical boundaries of land? a. The surface of the earth and infinite space above the surface. b. The center of the earth and infinite space above the earth. c. The surface of the earth and all water and minerals on or below the surface to the center of the earth. d. The surface of the earth and the air rights above the surface to the point defined by local zoning.
B. The center of the earth and infinite space above the earth. The legal concept of land encompasses the surface area of the earth; everything beneath the surface of the earth extending downward to its center; all natural things permanently attached to the earth; and the air above the surface of the earth extending outward to infinity. Land, therefore, includes minerals beneath the earth's surface, water on or below the earth's surface, and the air above the surface
Which of the following would be considered a property improvement? a. An alteration to land to make it more useful. b. An increase in the value of a property. c. A chicken coop permanently attached to land. d. A parcel of land that has passed a percolation test.
C. A chicken coop permanently attached to land. Improvements to real estate include such things as fences, streets, buildings, wells, sewers, sidewalks and piers. Modifications to land or a developer's preparations of a parcel of land can include such activities as grading or clearing, neither of which are considered to be "improvements" in this sense of the word.
A landowner conveys a parcel of property with the provision that the land cannot be developed for retail purposes. The new owner immediately begins to develop a retail shopping outlet, the grantor finds out and takes the property back. What kind of estate did this landowner convey? a. Fee simple absolute. b. Life estate with reversion. c. Life estate with condition subsequent. d. Fee simple defeasible.
Fee simple defeasible. The defeasible fee estate is perpetual, provided the usage conforms to stated conditions. Essential characteristics are that the property must be used for a certain purpose or under certain conditions, and, if the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.
Katelyn rents an apartment for one year. What rights has she acquired under the leasehold? a. The right to exclude everyone from the premises. b. The right to encumber the fee interest. c. The right to sell the premises. d. The right to possess and use the premises.
The right to possess and use the premises. Leasehold tenants are entitled to possess and use the leased premises during the lease term in the manner prescribed in the lease. They also have restricted rights to exclusion.
When an estate is held in a trust, which party holds legal title? a. The beneficiary. b. The trustor. c. The trustee. d. The grantor.
The trustee. In an estate in trust, a fee owner-- the grantor or trustor-- transfers legal title to a fiduciary-- the trustee-- who holds and manages the estate for the benefit of another party, the beneficiary. The trust may be created by a deed, will, or trust agreement.
If the duration of an owner's rights in an estate is not determinable, the owner has . a tenancy at sufferance. b. a leased fee simple estate. c. a freehold estate. d. a leasehold estate.
a freehold estate. In a freehold estate, the duration of the owner's rights cannot be determined: the rights may endure for a lifetime, for less than a lifetime, or for generations beyond the owner's lifetime. By contrast, leasehold estates have expirations.
Homestead estates are examples of a. a conventional life estate. b. a legal life estate. c. an estate created by an owner's agreement. d. a fee simple absolute.
a legal life estate. Homestead, dower, and curtesy are legal life estates. A legal life estate is created by state law as opposed to being created by a property owner's agreement. The focus of a legal life estate is defining and protecting the property rights of surviving family members upon the death of the husband or wife.
Which of the following best describes a "fixture?" a. Any item of personal property positioned within the boundaries of a parcel of real estate. b. An item of personal property that has been converted to real property. c. An item of real property temporarily placed on land for the purpose of conducting a business. d. An item of personal property that has been left in one location for a period of six months.
b. An item of personal property that has been converted to real property. A personal property item that has been converted to real property by attachment to real estate is called a fixture. Typical examples are chandeliers, toilets, water pumps, septic tanks, and window shutters. The owner of real property inherently owns all fixtures belonging to the real property. When the owner sells the real property, the buyer acquires rights to all fixtures.
Which of the following best describes the legal concept of personal property? a. Any item which is acquired in a fee simple sale transaction. b. Any item of property that is not definable as real property. c. Any movable property owned by an individual, partnership, or corporation. d. Any item that is not a natural item affixed to the earth.
b. Any item of property that is not definable as real property. Personal property is any owned item which is not real estate, and the rights associated with owning the personal property item. Items of personal property are also called chattels or personalty.
Louis owned a boat and a house before marrying Barbara. While she was single, Barbara owned a new car. The two got married and bought a second home. As a wedding present, Barbara's father bought Louis a motorcycle. Under the law of community property, what property can Louis sell without his wife's consent or signature? a. The boat and house. b. The boat, house, and motorcycle. c. The second home and the motorcycle. d. The boat and motorcycle.
b. The boat, house, and motorcycle. Separate property consists of: property owned by either spouse at the time of the marriage; property acquired by either spouse through inheritance or gift during the marriage; property acquired with separate- property funds; and income from separate property. Community property consists of all other property earned or acquired by either party during the marriage. A spouse owns separate property free and clear of claims by the other spouse. He or she can transfer it without the other spouse's signature. Upon the death of the separate property owner, the property passes to heirs by will or laws of descent. Community property cannot be transferred or encumbered without the signatures of both spouses. Upon the death of either spouse, half of the deceased's community property passes to the surviving spouse, and the other half passes to the decedent's heirs.
Littoral rights apply to which of the following? a. Boatable ponds entirely contained within the boundaries of an owner's property. b. Streams and rivers. c. Navigable lakes, seas, and oceans. d. Navigable streams and rivers.
c. Navigable lakes, seas, and oceans. Littoral rights concern properties abutting bodies of water that are not moving, such as lakes and seas. Owners of properties abutting a navigable, non-moving body of water enjoy the littoral right of use, but do not own the water nor the land beneath the water. The legal premise underlying the definition of littoral rights is that a lake or sea is a navigable body of water, therefore, public property owned by the state. By contrast, a body of water entirely contained within the boundaries of an owner's property is not navigable. In such a case, the owner would own the water as well as unrestricted rights of usage.
The "bundle of rights" refers to a set of rights a. enjoyed by the owner of a property. b. that is synonymous with the Bill of Rights. c. guaranteed to citizens by the Statute of Rights. d. specified in a deed or land contract.
enjoyed by the owner of a property. This group of rights includes the right to Possess, Use, Transfer, Encumber, and Exclude others from using the property. (Remember: "PUTEE") Transfer rights include the right to sell, rent, donate, assign, or bequeath. The owner may also encumber the item by mortgaging it as collateral for debt.
1.41 Carissa and Robert acquire a condominium as tenants in common. In this circumstance, Carissa can a. sell her interest to a third party without the consent of Robert. b. use her interest in the estate to mortgage the entire estate. c. sell her interest only to Robert. d. sell encumber or transfer her interest only with the consent of Robert.
sell her interest to a third party without the consent of Robert All tenants in common have distinct and separable ownership of their respective interests. Co-tenants may sell, encumber, or transfer their interests without obstruction or consent from the other owners. A co- tenant may not, however, encumber the entire property.
A tenant in common can a. sell or transfer his interest without the consent of the other tenants in common. b. use his or her interest in the estate to encumber the entire estate. c. sell, encumber or transfer his or her interest only to the other tenants in common. d. sell, encumber or transfer his or her interest only with the consent of all the other tenants in common.
sell or transfer his interest without the consent of the other tenants in common. All tenants in common have distinct and separable ownership of their respective interests. Co-tenants may sell, encumber, or transfer their interests without obstruction or consent from the other owners. A co- tenant may not, however, encumber the entire property.
An item may be considered personal property as opposed to real property provided that a. the owner intended to remove it after a period of time. b. it can be removed without altering the appearance of the structure. c. it is unnecessary to the physical integrity of the structure. d. the owner installed it at some time after acquiring the real property.
the owner originally intended to remove it after a period of time. One's original intention can override the test of movability in determining whether an item is a fixture or not. If someone attached an item to real property, yet intended to remove it after a period of time, the article may be deemed personal property. If a person intended an article to be a fixture, even though the item is easily removable, the article may be deemed a fixture. For example, an apartment renter installs an alarm system, fully intending to remove the system upon lease expiration. Here, the alarm system would be considered personal property.
A property owner leases 60 acres of agricultural land for a renewable period of 5 years. In the context of real estate rights, this lease represents a(n) a. transfer of a portion of the bundle of rights. b. encroachment on the bundle of rights. c. conveyance of the complete bundle of rights. d. encumbrance of the tenant's rights.
transfer of a portion of the bundle of rights. An ordinary lease is a common example of the transfer of a portion of one's bundle of rights. The owner relinquishes the right to possess portions of the surface, perhaps a building, in return for rent. The tenant enjoys the rights to possess and use the building over the term of the lease, after which these rights revert to the landlord. During the lease term, the tenant has no rights to the property's subsurface or airspace other than what the building occupies. Further, the tenant does not enjoy any of the other rights in the bundle of rights: he or she cannot encumber the property or transfer it. To a limited degree, the tenant may exclude persons other than the legal owner from the property.
1.53 In a time-share freehold, owners acquire a. undivided interests in the property as tenants in common. b. a renewable periodic tenancy from for a portion of a year. c. a pro rata share of a leased fee. d. a tenancy in severalty for a portion of a year.
undivided interests in the property as tenants in common. In a freehold time-share, or interval ownership estate, tenants in common own undivided interests in the property. Expense prorations and rules governing interval usage are established by separate agreement when the estate is acquired.
Which of the following is true of a homestead? a. A homestead interest cannot be conveyed by one spouse. b. A homestead interest cannot be passed to the children of the head of household. c. A homestead interest is a form of conventional life estate. d. A homestead is a primary or secondary residence occupied by a family.
A homestead interest cannot be conveyed by one spouse. A homestead is one's principal residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts. Homestead laws generally provide that: the homestead interest cannot be conveyed by one spouse; both spouses must sign the deed conveying homestead property.
Which of the following would be considered community property? a. Property acquired before marriage b. A motorcycle bought after the marriage with separate property funds c. Income derived from community property d. A mother's heirloom wedding ring gifted to the wife after her wedding
Income derived from community property If an income-producing property has been defined as community property, the revenue accruing from the investment is likewise community property.
The right to control land usage by zoning and eminent domain is an example of a. a public interest. b. a police interest. c. an encumbrance. d. an estate in law.
a public interest. Public entities may own or lease real estate, in which case they enjoy an estate in land. However, government entities also have non-possessory interests in real estate which act to control land use for the public good within the entity's jurisdiction. The prime example of public interest is police power, or the right of the local or county government to zone. Another example of public interest is the right to acquire ownership through the power of eminent domain.
A tenant without a lease has been sending the landlord monthly rent checks, and the landlord continues to accept the payments. What kind of leasehold estate exists? a. Estate for years. b. Estate from period to period. c. Estate at will. d. Estate at sufferance.
(b) Estate from period to period. In an estate from period-to-period, also called a periodic tenancy, the tenancy period automatically renews for an indefinite period of time, subject to timely payment of rent. At the end of a tenancy period, if the landlord accepts another regular payment of rent, the leasehold is considered to be renewed for another period.
Which of the following life estates is created by operation of law rather than by the owner? a. Conventional life estate. b. Ordinary life estate. c. Legal life estate. d. Community property life estate.
1.33 (c) Legal life estate. A legal life estate is created by state law as opposed to being created by a property owner's agreement. The focus of a legal life estate is defining and protecting the property rights of surviving family members upon the death of the husband or wife.
The distinguishing feature of a leasehold estate is a. ownership of an interest by a tenant. b. temporary ownership of the full bundle of rights in a property. c. unlimited ownership of one right in the bundle of rights in a property. d. that the estate is limited by a lease term.
d. that the estate is limited by a lease term. A leasehold estate is distinguished by its specific duration, as represented by the lease term. Further, leasehold tenants only enjoy limited property rights: use; temporary possession, and limited exclusion.
A tenant continues to occupy an apartment after lease expiration without the consent of the landlord. This type of estate is called a. an estate at sufferance. b. a holdover estate. c. a canceled leasehold. d. a hostile leasehold.
1.27 (a) an estate at sufferance. In an estate at sufferance, a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord. Usually such an estate involves a tenant who fails to vacate at the expiration of the lease, continuing occupancy without any right to do so. For example, a tenant violates the provisions of a lease and is evicted. The tenant protests and refuses to leave despite the eviction order.
