Module 3
A defeasible estate is limited by the occurrence or non-occurrence of a specific event. the ability of the owner to defease a health issue. the passage of a specified time period. the conclusion of a legal proceeding.
1
A developer funded the construction of 17,000 square feet retail space located on a busy intersection. The developer leased the entire area to J-Finds Retail Store. J-Finds has agreed to rent 2,000 square feet within the store to a coffee shop for their customers' convenience. What types of estates and interests do these three parties have? 1. The developer has a freehold estate with a leased fee interest, J-Finds has a leasehold estate, and the coffee shop has a subleasehold estate. 2. The developer and J-Finds have leased fee interests and the coffee shop has a leasehold estate. 3. The developer has a leasehold estate with a leased fee interest, J-Finds and the coffee shop both have leasehold estates. 4. All three parties have leasehold estates.
1
A lease affects the owner's ability to _________ a property. use finance abandon sell
1
Restrictions affect the owner's ability to _________ a property. use sell finance abandon
1
The owner of real estate is said to have a ___________ estate. freehold supraservient freeman leasehold
1
The remainder interest in a life estate is also known by what term or phrase? the remainderman the life tenant the reversionary interest the grantor
1
Which type of encumbrance affects the use or physical condition of a property? a lease a judgment a mechanics lien a property tax lien
1
Who owns an "easement in gross?" a corporation or government entity the tenant the property owner the public
1
After purchasing a wooded fifty acres on a scenic riverfront, Jack was transferred out of state for his job. In the interest of having some money to curb the cost of his move, Jack sold the land to Mike on the condition that no permanent dwellings would be erected to disturb the landscape. Mike has used the land as a youth campground for seven years now. The camp is doing so well that Mike would like to build a small office with a sleeping area that he could occupy while running the grounds. Does Mike have the right to build on the land? 1. Yes. A leased fee interest estate indicates Jack is the current owner and Mike is leasing the property. Mike will lose possession after the lease expires. So, he can build on the land, but he might lose his equity in the building once the land reverts back to Jack. 2. No. Jack granted a fee simple defeasible estate to Mike. If Mike disturbs the landscape, Jack may become the owner again because he retained a future interest in the land. 3. Yes. Because Jack sold the estate to Mike as a fee simple estate, he lost all owner interest when the money exchanged hands regardless of what he would have liked for the land. Mike is the owner and is allowed to alter the property. 4. No. Because the land was sold to Mike as an estate at sufferance, Jack was able to stipulate that Mike operate the campground so long as no permanent dwellings would be erected.
2
Bill owns much of the land surrounding Roosevelt Elementary School where he attended as a youth. 15 years ago Bill conveyed a large vacant parcel to the school so long as it is used for physical education activities such as soccer, football, and baseball. The school has recently developed plans for expansion into the area to increase the size of its outdated library. Which selection best supports the above situation? Estate at will dictates that the school is the current owner and can do with the property as it wishes. 2. Fee simple defeasible estate indicates the property would revert back to Bill since the library expansion violates the estate's conditions for its use. Bill has a limit to how long the freehold estate can last and the school can proceed with the library expansion. Fee simple defeasible estate indicates the school is the current owner and can expand into the area without repercussion.
2
David purchased an 80-acre parcel with 75 acres being tillable land. After remodeling the farmhouse, David decided to lease the tillable portion of the land for the next five years. One year into the lease, David's daughter moved back home. He would like to build her a house on several acres of his land that is now leased. Which response best describes ownership in this situation? The tenant has a leased fee interest and is the current owner of the tillable property. David must wait until the lease expires, and ownership reverts back to him, to build his daughter's house. David has a leased fee interest in the tillable portion of the property. Although he is the current owner, he cannot begin constructing his daughter's house until the lease expires. David has a leasehold interest. He is considered the owner of the property. After the lease expires, David's construction may begin. The tenant interest is a freehold interest. He is considered the owner of the property until the lease expires. David's construction can then begin, as he becomes the owner again.
2
Don Bradstreet owns several rental properties including a two-bedroom house. Eight months ago, a tenant moved into this house and leased it for six months. After paying the rent in a timely manner for about four months, Mr. Bradstreet began having difficulty collecting the rent and asked the tenant to vacate the premises. Now the lease has been expired nearly two months, but the tenant is still living in the house. The tenant has an indeterminate duration leasehold. has an estate at sufferance. has an estate at will. is trespassing.
2
If I give my neighbor permission to park his RV on my land it is a license. Which of the following is a characteristic of a license? once granted it cannot be revoked it is a revocable written or oral agreement it is an encumbrance it is only an oral agreement and cannot be enforced
2
Jason is getting ready for a construction firm to install a fence on his property. After the survey was performed, it was clear that four feet of the neighbor's above-ground pool are located on Jason's property and in the direct line of the proposed fence. Which of the following best describes this situation? 1. The neighbor has an adverse possession of the land their pool is resting on. Jason will have to reevaluate the projected line of his fence to accommodate the pool. 2. The neighbor will have to move their pool since it is considered personal property and is encroaching on Jason's property. 3. Jason can file an easement appurtenant requesting the neighbor to move their pool. They had no right to the land regardless of what they built on it. 4. The neighbor can create a perpetual encroachment that will allow them to use that area of Jason's property while he builds the fence around the pool.
2
Which of the following is NOT a characteristic of a leasehold estate? reversion of possessory rights ownership possessory defined duration
2
Which type of encumbrance affects the use or physical condition of a property? a judgment a lease a property tax lien a mechanics lien
2
Which type of encumbrance is a monetary claim against a property? a lease a property tax lien an easement an encroachment
2
If I give my neighbor permission to park his RV on my land it is a license. Which of the following is a characteristic of a license? it is only an oral agreement and cannot be enforced once granted it cannot be revoked it is a revocable written or oral agreement it is an encumbrance
3
Matt recently gained title to his late grandfather's 3-unit commercial building in the downtown area. All three units are leased to Landmark Enterprises for the next seven years. One of the units is currently subleased to a pizza chain while the other two are subleased as a combined resale clothing store. In light of the leases, who is considered to be the owner of the property? the pizzeria and the resale clothing store which possess a subleasehold interest in the property Landmark Enterprises, which possesses a leasehold interest in the property Matt, who is the landlord and has a leased fee interest in the property the grandfather's estate
3
Rick and Candace purchased the small ranch just east of their home for his elderly parents and would like to establish them as the official owners. Which estate would best allow this situation? Rick and Candace may grant a life estate to his parents giving them full rights of ownership until their death, upon which Rick and Candace will regain the property, so long as Rick's parents haven't sold the property to another party during their lifetime. Rick's parents will need to lease the property to create a leased fee interest. Even if they sell it during their lifetime, upon their death it will still revert back to Rick and Candace. Rick and Candace may grant a life estate to his parents giving them full rights of ownership until their death, upon which Rick and Candace will regain ownership of the property. Rick and Candace should gift the land to his parents and when the parents die the probated estate will go back to Rick and Candace.
3
Sarah planted a new flower garden in the easement area adjacent to the sidewalk in front of her home. Recently, a water main broke, and the city needed to have large equipment come in to repair the damage. The flower garden was destroyed and the city re-sodded the area after the repairs. Sarah was outraged at the invasion of her property. What property rights does Sarah have in this situation? The city maintains an easement appurtenant along the street to make needed repairs. It has the right to disturb the property as needed. The city must reimburse Sarah for the cost of the flowers and related landscaping. The city maintains an easement in gross along the street to make repairs. It has a right to disturb this property as needed. The city has a dominant estate through a gross easement, allowing it access to the pipes below the ground.
3
Which of the following is NOT a characteristic of a freehold estate? present or future duration indeterminate duration defined duration ownership
3
Which of the following is an example of an "easement in gross?" a shared driveway easement cell tower access easement public sidewalk easement public sidewalk easement and cell tower access easement
3
Hooper gave permission to a nearby business neighbor to place a sign on his corner property to advertise the neighbor's liquidation sale. What has Hooper given his neighbor? a partial interest in his property a personal easement in gross an estate a license
4
Travis recently purchased a seven-acre parcel with a large steel building. He plans to construct a new home, but he is using the building to store his boats until then. In late August, Justin, a flea market vendor, noticed Travis on the site and pulled in to ask when he could start setting up. After Travis questioned him further, he learned that Justin had a license from the previous owner to host a flea market every fall. Travis does not wish to move his boats or host such an event. Does the license bind him to allow Justin temporary access? The license provides access to the land only. Justin and the other vendors can set up outdoors, but the steel building is Travis's property and therefore off limits. The license provides Justin access to the land and buildings. As the boats are personal property, they should be moved for insurance purposes. Justin's ability to gain access depends on the expiration date of his license. Travis should contact his local courthouse to verify the validity of the license before he permits the flea market to occur illegally. Travis is not required to allow Justin and the other vendors access to the land.
4
All liens are encumbrances, but not all encumbrances are liens. True False
True
Deed restrictions remain in effect when a property is sold. True False
True
