National Topic Tester Property Ownership
Which statement about encumbrances is correct?
A. An encumbrance must increase real property value B. A lease is an example of an encumbrance C. Encumbrances can only be created by an owner of real property D. Both A and C Feedback Your answer is incorrect. (encumbrances) An encumbrance is anything that affects the title to real property, which could diminish its value. There are some positive encumbrances, but the limitation dimishes the owner's rights in the property. Encumbrances can be created by either individual or government action. Finally, a lease is an example of an encumbrance. The correct answer is: A lease is an example of an encumbrance
Which of the following properties may be classified as commercial?
A. Apartment buildings B. Vacant lots C. Parking lots D. All of the above Feedback Your answer is incorrect. (classes of property) Commercial property includes apartment buildings, parking lots, and vacant lots or tracts of land that are suitable and available for a commercial construction. The correct answer is: All of the above
Which item is personal property?
A. Apartment lease B. Business reputation C. Tool shed attached to the brick foundation D. Both A and B Feedback (classes of property) Leases and business reputation are both intangible personal property. The correct answer is: Both A and B
Large blocks of land are located in a rural area of a Midwestern state. This would most likely be described by:
A. Government rectangular survey B. Lot, block, and subdivision C. Metes and bounds D. Reference to other documents Feedback Your answer is incorrect. (land characteristics and property descriptions) The government survey method, or rectangular survey, is used in more than 30 states--mostly in the mid-west. The correct answer is: Government rectangular survey
What is NOT a physical characteristic of land?
A. Heterogeneity B. Indestructibility C. Immobility D. Fixity Feedback Your answer is correct. (land characteristics & property descriptions) Fixity, or investment permanence, is an economic characteristic of land. Heterogeneity (uniqueness), indestructibility, and immobility are physical characteristics of land. The correct answer is: Fixity
The right of one party to possess and use real property exclusive of others is:
A. Hypothecation B. Partition C. Ownership D. All of the above Feedback Your answer is correct. (classes of property) Ownership is the right to possess and use property exclusive of others. This is a textbook definition of the term. The correct answer is: Ownership
Jones, Smith, and Williams own property as joint tenants. Which of the following statements must be true?
A. If Jones and Smith die, Williams will own the property as a joint tenant with the heirs of Jones and Smith B. If Jones dies, Smith and Williams will own the property as tenants-in-common C. If Jones and Smith die, Williams will own the property in severalty D. If any one of the owners die, the property goes to the heirs of the deceased owner Feedback Your answer is correct. (types of ownership) Property held by joint tenants includes rights of survivorship. That is, only the surviving joint tenants continue to own the property. If only one joint tenant remains alive, he owns the property in severalty. The correct answer is: If Jones and Smith die, Williams will own the property in severalty
How can an appurtenant easement be terminated?
A. If the easement is released by the dominant estate B. If the dominant estate owner dies C. If the necessity no longer exists D. Either A or C Feedback (encumbrances) An appurtenant easement is one of two primary types of easements. The principal difference depends upon whether the easement attaches to a particular person (easement in gross) or a particular parcel of land (appurtenant easement). Either can be created in a variety of ways (express grant, express reservation, necessity, implication, prescription, agreement, or condemnation). Each can also be terminated in a variety of ways (lack of necessity, merger, release, abandonment, destruction, court order). Therefore, the question is tricky, but technically correct. If the appurtenant easement were created by necessity, choice "C" could be correct. If the dominant estate released the easement, choice "A" could be correct. You must always select the "best" answer. Do this by eliminating the choices that CANNOT be true. The only answer that CANNOT be true is "B". The correct answer is: Either A or C
The land characteristic that is most likely the basis for a specific performance lawsuit is:
A. Immobility B. Heterogeneity C. Situs D. Improvements Feedback Your answer is incorrect. (land characteristics and property descriptions) Heterogeneity, or uniqueness, is the legal basis for specific performance lawsuits (lawsuits that seek to force a sale of land as agreed). The correct answer is: Heterogeneity
Harry Homeowner takes pride in his property and keeps it well maintained (inside and outside of the home). However, Harry's neighbors are not so conscientious. What concept best explains why Harry's home is losing value?
A. Immobility B. Uniqueness C. Scarcity D. Situs Feedback Your answer is correct. (land characteristics and property descriptions) We do not know if Harry's location is preferential or not. However, due to immobility, the value of a piece of real property is directly affected by its external surroundings. Therefore, a well maintained home will lose value if the neighborhood around it declines. The correct answer is: Immobility
A land description that reads "T4S, R3E" is most likely based on the:
A. Monument method B. Government survey method C. Metes and bounds method D. Recorded plat method Feedback Your answer is correct. (land characteristics & property descriptions) The rectangular method (government survey) uses range lines, which are north-south lines in a township. Townships are located by their distance north or south of the base line, and east or west of the primary meridian. Government survey descriptions read like: "Township 4 South, Range 3 East, or T4S, R3E." The correct answer is: Government survey method
When a metes and bounds survey is used to describe property, the word "metes" refers to:
A. Monuments B. Areas twenty-four miles square C. Parallel lines that run north and south D. The length in inches, feet, or yards of a property line Feedback Your answer is correct. (land characteristics & property descriptions) Metes is the length of a property line in inches, feet, yards, rods, or any linear measurement. Bounds are the monuments used to identify the boundary of the property. The correct answer is: The length in inches, feet, or yards of a property line
A condominium could be which of the following descriptions?
A. Multi-story building B. Townhouse community C. Industrial office park D. Any of the above Feedback Your answer is incorrect. (types of ownership) We commonly think of a condo as an apartment-style building. However, condominium type ownership can be created anywhere, for any type of property. Some residential neighborhoods (consisting of only single-family homes) are under condominium rules and regulations. Each person owns their own home, but shares an interest in common elements like playgrounds, swimming pools, etc. Industrial property COULD be created as a condominium; the tenants would own their own buildings and share ownership in drive ways and parking facilities. The correct answer is: Any of the above
Lionel rents an apartment under a three-year lease. After the first six months, the landlord sells the building. Lionel:
A. Must renegotiate the lease with the new owner or vacate the premises B. Need not do anything if the owner fails to renegotiate the lease within 60 days C. Need not do anything, but the new owner may terminate the lease at any time D. Need not do anything Feedback Your answer is incorrect. (types of ownership) The new owner owns the property subject to the existing lease. As such, he or she must honor the rental period and may not significantly alter the terms. Since the lease is Lionel's personal property, he need not do anything. The correct answer is: Need not do anything
Which method of legally property description relies on range lines? Select one:
A. Vertical B. Lot, block, an subdivision C. Rectangular D. Monument Feedback (land characteristics and property descriptions) The rectangular method (government survey) uses range lines, which are north-south lines in a township. The correct answer is: Rectangular
A legal land description must:
elect one: A. Be sufficient to identify the property B. Carry the measurements to the nearest inch C. Show the area of the land being described D. Contain an informal reference Feedback Your answer is correct. (land characteristics and property descriptions) A legal land description need only be sufficient to identify the property. The correct answer is: Be sufficient to identify the property
The right or privilege that one has to use the property of another is:
A. A license B. A lease C. An easement D. All of the above (encumbrances) An easement, a lease, and a license create a right to use someone else's property. However, an easement creates a more permanent and secure interest than either a lease or a license. The correct answer is: All of the above
An adequate metes and bounds description must have all of the following inclusions, EXCEPT:
A. A definite point of beginning B. Four sides C. Closure D. Linear measurements and compass directions Feedback Your answer is incorrect. (land characteristics & property descriptions) Property does not need to be shaped like a square (or similar to a square) in a metes and bounds description. It can be any shape, with more or less than four sides. The correct answer is: Four sides
Which of the following situations is an example of a tenancy at sufferance?
A. A farmer who refuses to cede possession upon lease expiration in order to harvest his crops B. A person who leases a store and renews her lease on a month-to-month basis C. A tenant who installed trade fixtures, but did not remove them when the lease expired D. A tenant who uses the premises in violation of her lease Feedback Your answer is incorrect. (types of ownership) A tenant "at sufferance" is one who remains in possession of leased property after the lease expires. While the farmer retains title to his crops (because they are fructus industriales), he has no rights in the leased premises. A tenant that violates the conditions of her lease before it expires has lawful possession unless or until she is evicted. The correct answer is: A farmer who refuses to cede possession upon lease expiration in order to harvest his crops
A couple is buying a house with an oddly shaped living room. The seller built a custom-made bookcase to specifically fit into the room. Absent an agreement, the bookcase is most likely:
A. A fixture B. The buyer's personal property C. A replacement fixture D. The seller's personal property Feedback Your answer is incorrect. (classes of property) In determining whether an item is a fixture, consider: the method of the object's attachment, whether the object demonstrates adaptation to a unique feature, whether the parties have reached an agreement regarding the object, and the relationship of the parties. In this case, the object was specifically built to fit the unique layout of the room (an adaptation). Therefore, absent an agreement to the contrary, the bookcase is most likely to be a fixture. The correct answer is: A fixture
Agnes decides to impose a restrictive covenant (a negative covenant or deed restriction) that will apply to any future owners of the property she currently possesses. Agnes must have:
A. A lease B. A fee simple estate C. An easement D. Either A or B Feedback Your answer is correct. (types of ownership) Only the holder of a fee simple estate may encumber the property with a deed restriction. This is one of the sticks (to encumber) included in her bundle of legal rights. The correct answer is: A fee simple estate
Which of the following items is not personal property?
A. A lease B. A mortgage that secures personal property C. Partnership interests D. An easement Feedback Your answer is correct. (classes of property) Leases, mortgages on personal property, and partnership interests are all personal property. Of the listed choices, only an easement is NOT personal property. The correct answer is: An easement
A datum is most likely to be:
A. A point on the surface of a parcel B. Used in the government survey method of property description C. Used in the metes and bounds method of property description D. A point below the surface of a parcel Feedback Your answer is incorrect. (land characteristics and property descriptions) Note that a datum (singular form of data) is used to develop a legal description of the air rights associated with a property. A datum is the point, line, or surface from which a vertical height or depth is measured in the vertical land description method. The datum is often assigned to the surface of a lot, and distances above or below the datum are described accordingly. The correct answer is: A point on the surface of a parcel
Which of the following choices is NOT a freehold estate?
A. A present interest in land B. A lease that does not require rent payments C. A life estate D. All of the above Feedback (types of ownership) Life estates and present estates are freeholds. Regardless of the term, all leases are leaseholds (non-freehold estates). The correct answer is: A lease that does not require rent payments
In relation to lien priority, which of the following statements is incorrect?
A. A recorded deed has priority over a recorded mortgage B. Federal income tax liens have priority over all other liens C. Mechanics liens apply on the date that work began or materials were supplied D. The date of recording determines the priority for private liens Feedback Your answer is incorrect. (encumbrances) Real estate tax liens have priority over all others. Federal and State income tax liens must get in line, just like the others. A deed MUST be recorded before property can be pledged. On a related note, remember that property tax liens are specific and not general liens. The correct answer is: Federal income tax liens have priority over all other liens
Land moves by:
A. Accretion B. Erosion C. Both A and B D. None of the above because land is immobile Feedback (land characteristics & property descriptions) Accretion happens when soil is washed away by flowing water and deposited elsewhere. Erosion is a natural process that causes a portion of land (soil) to move. Both cause a portion of land to move. The correct answer is: Both A and B
The force of water on land is known as:
A. Accretion B. Riparian C. Littoral D. Annexation Feedback Your answer is incorrect. (land characteristics and property descriptions) Accretion occurs where natural forces, like water, cause land to move from one parcel to another. Riparian and littoral refer to intangible interests in the use of water. The correct answer is: Accretion
Real property does not include:
A. Air rights B. Trade fixtures C. Improvements D. Mineral rights Feedback Your answer is correct. (classes of property) Trade fixtures remain the personal property of a tenant, so long as they are timely removed. All other choices describe real property. Therefore, only trade fixtures are NOT real property. The correct answer is: Trade fixtures
Which definition is described as a trespass on an improvement?
A. An easement B. A license C. An encroachment D. None of the above Feedback Your answer is correct. (encumbrances) To trespass is to be somewhere without the owner's permission. If an improvement encroaches over the property line, it is a trespass. The correct answer is: An encroachment
What would most likely to be included in the sale of real property?
A. An easement B. Enjoyment C. Trade fixtures D. A kitchen sink Feedback Your answer is incorrect. (classes of property) Enjoyment refers to one of the legal rights that ALWAYS accompanies property ownership. An easement may not always convey (ex. if it is an easement in gross). Trade fixtures are personal property of the tenant for the operation of business, and will not convey so long as they are timely removed. A kitchen sink could be either a fixture or a trade fixture. As a trade fixture, it would not automatically convey if it were timely removed. As a fixture, it would not automatically convey if there were an agreement to the contrary or severance was otherwise possible. Therefore, enjoyment is the best answer. The correct answer is: Enjoyment
Jones owns two tracts of land. One tract has lakefront property. Jones sells the other tract to Smith and gives him the right to cross his property in order to reach the lake. Without the right to cross Jones' property, there is no other way for Smith to reach the lake. Smith's right could be:
A. An easement by necessity B. An easement in gross C. Created by operation of law D. All of the above Feedback Your answer is incorrect. (encumbrances) Smith could either have an appurtenant easement or an easement in gross. However, the question does not specify that the properties are adjoining or that Smith owns a tract without access (i.e. a landlocked piece of land). As such, there is no indication of any necessity. Based on the information given, an easement in gross is the best answer. Easements in gross are personal and will terminate if the servient owner sells his lot or if either party dies. The correct answer is: An easement in gross
Mrs. Franklin is buying property from Mr. Akin. In order to get to her property, it is necessary to cross property owned by Mr. Travis. In the past, Mr. Travis had granted permission to Mr. Akin for this purpose. Mrs. Franklin wants to protect this privilege. What would best serve Mrs. Franklin's interests?
A. An easement in gross B. A license C. An appurtenant easement D. Either A or C Feedback Your answer is correct. (encumbrances) Mrs. Franklin should ask for an easement from Mr. Travis. The easement could be an appurtenant easement or an easement in gross. Both would give Mrs. Franklin the RIGHT to cross the property. However, an appurtenant easement would transfer to other property owners and survive the death of either owner. An easement in gross would not serve Mrs. Franklin as well as an easement appurtenant because the easement in gross would not survive the death of Mr. Travis. A license would not serve Mrs. Franklin well because it is revocable at the will of Mr. Travis. Therefore, an easement appurtenant would BEST serve Mrs. Franklin. The correct answer is: An appurtenant easement
Zorba owns property and gladly allows his friend, Young, to use it. To best protect Zorba's interest, he should give Young:
A. An easement in gross B. A right of way C. An appurtenant easement D. A license Feedback Your answer is incorrect. (encumbrances) A license is permission to use the land (may be an oral agreement), which is revocable at will. An easement in gross is similar to a license, but must be it written, creates an interest in land, and cannot be revoked outside of the agreed upon termination. A license provides greater flexibility for Zorba, so this would better protect his interests. The correct answer is: A license
Three people inherit unequal shares of a single piece of property. How could they hold ownership?
A. As tenants in severalty B. As tenants-in-common C. As joint tenants D. Either B or C Feedback Your answer is correct. (types of ownership) First, recognize that all 3 inherit a single piece of property. Now, recognize that the problem does not state that they received an equal interest, which is mandatory for a joint tenancy. Ownership in severalty is ownership by one person only. The law provides that when there is co-ownership (more than one owner), title will default to tenants-in-common unless the deed is specific as to some other form of ownership. The correct answer is: As tenants-in-common
The most predictable element of severance is:
A. Attachment B. Intent C. Agreement D. Adaption Feedback Your answer is incorrect. (land characteristics & property descriptions) You should avoid doubt by putting the severance agreement in writing. A written agreement is the best way to ensure questionable items (like fixtures) transfer. The correct answer is: Agreement
Boundary markers of land (natural or man-made) are best known as:
A. Benchmarks B. Monuments C. Stakes D. Metes Feedback Your answer is correct. (land characteristics and property descriptions) A monument can be a natural object like a tree, rock, or river. It can also be a permanent, artificial marker like a surveyor's benchmark. However, when used to define the area of a parcel of land, the best choice is "monument" since it covers natural AND man-made boundary markers. The correct answer is: Monuments
Which of the following items is not an improvement of land?
A. Building B. Sidewalk C. Corn crop D. Flower bed Feedback Your answer is incorrect. (land characteristics and property descriptions) Improvements refer to the development of land through the construction of valuable additions. Crops are not improvements since they do not improve the value of land (as emblements or fructus industriales, they are owned by the farmer). The correct answer is: Corn crop
Real property can be changed into personal property:
A. By the right of appropriation B. By severance C. By the law of capture D. Never, because land is indestructible Feedback Your answer is incorrect. (land characteristics and property descriptions) Severance describes the analysis to determine whether a fixture may be removed from real property. Appropriation refers to water law doctrine. Capture is a red herring. While land is generally indestructible, other types of real property (improvements/fixtures) can change from real to personal property. The correct answer is: By severance
Three people own a piece of property as tenants-in-common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell:
A. Cannot sell because all three must agree B. May file suit for partition C. May seek detachment D. May sever the third party's interest Feedback Your answer is incorrect. (types of ownership) Joint tenants and tenants-in-common may file suit for partition (a request for a court to divide concurrently owned property). If indivisible, a court might order the sale of the property and then divide the proceeds. The correct answer is: May file suit for partition
Mr. Foster owns an automobile, a boat, a house, and a farm. He defaults on the mortgage covering his house. If a judgment lien is entered, which of the following properties could be subject to the judgment lien?
A. Car B. Boat C. Home D. All of the above Feedback Your answer is incorrect. (encumbrances) Judgment liens are general liens, which means that they attach to both the real and personal property of a debtor. However, judgment liens only apply to property located in the jurisdiction in which the lien is recorded. The correct answer is: All of the above
A metes and bounds survey will most likely identify:
A. Certain encumbrances B. All title defects C. Marketable title D. Liens Feedback Your answer is incorrect. (land characteristics and property descriptions) A land survey documents the physical characteristics and boundaries of real property. Some encumbrances (like liens and other clouds on title) cannot be discovered by physically inspecting property--they are best discovered by examining title records. However, an encroachment is also an encumbrance, which is a physical intrusion onto land (tresspass or nuisance). A land survey could identify an encroachment like a fence or an out-building. Therefore, of the choices presented, a metes and bounds survey is most likely to discover certain emcumbrances (encroachments). The correct answer is: Certain encumbrances
If a man is considered a "proprietary tenant," he is most likely owns interest in which of the following types of property?
A. Condominium apartment B. Apartment house C. Cooperative apartment D. Office building Feedback (types of ownership) A proprietary tenant is a person who lives in a cooperative apartment. To enter into this type of ownership, the purchaser buys an agreed upon amount of stock in the cooperative (worth the sales price of his particular unit). In exchange, that person is given a proprietary lease on his apartment. The correct answer is: Cooperative apartment
A woman owns an apartment building that is losing money. Her accountant tells her that she could make a profit if she sells the apartment units as condominiums. Which document must she record or provide?
A. Condominium instruments B. PUD C. POS D. Both A and C Feedback Your answer is incorrect. (types of ownership) While state law provides the specifics, prospective condominium developers must record condominium instruments with a local authority and provide prospective buyers with a Public Offering Statement (POS). A PUD is a planned unit development. A PUD is similar in some ways to a condominium development, but a PUD is not the name of any document that must be filed in order to develop a condominium. The correct answer is: Both A and C
Which of the following circumstances would diminish a fee simple estate?
A. Death of the owner B. Sale of the property C. Rental of the property D. All of the above Feedback Your answer is incorrect. (types of ownership) If the owner dies or sells property, he has nothing to diminish. If the owner rents his property, he gives up his right of possession, thereby reducing his rights of ownership. The correct answer is: Rental of the property
Which legal instrument could convey a tenancy for years?
A. Deed B. Land contract C. Lease D. Either B or C Feedback Your answer is incorrect. (leaseholds) A lease is the instrument of conveyance because a tenancy for years (or estate for years) is a type of leasehold. The correct answer is: Lease
Which of the following items would be disclosed by a metes and bounds survey?
A. Easement B. Marketability C. Encroachments D. Both B and C Feedback Your answer is incorrect. (land characteristics and property descriptions) The survey should definitely reveal any physical encroachments. Meanwhile, easements may not be obvious and would have to be checked in the county records. Once this is checked, they are indicated on the plat that the surveyor prepares. Depreciation is not something the surveyor considers, nor does he consider the marketability of the property. A surveyor is only concerned with the physical characteristics of the property itself. The correct answer is: Encroachments
If a husband and wife own property as tenants-in-common, which of the following statements is true?
A. Either may dispose of their own interest without approval of the other B. Title to the property is in the marital unit C. Both must agree to dispose of their interest D. None of the above statements are true Feedback Your answer is incorrect. (types of ownership) Any tenant-in-common may dispose of his/her own interest without obtaining permission from the other owners. The fact that the owners are husband and wife is irrelevant. The correct answer is: Either may dispose of their own interest without approval of the other
A condominium association can most likely perform all of the following actions, EXCEPT:
A. Elect a Board of Directors B. Interview prospective buyers C. Award contracts to tradesmen D. Assess a fee to unit owners in order to cover maintenance and repairs Feedback Your answer is incorrect. (types of ownership) The condominium association usually elects a Board of Directors to run the condominium. Prospective buyers purchase condominiums directly from individual owners, usually without being interviewed by the condominium association. The correct answer is: Interview prospective buyers
A person who rents a property from June 1st to June 30th of the same year most likely has a(n):
A. Estate for years B. Periodic estate C. Tenancy at will D. License Feedback (types of ownership) Even though term is only one month, this lease has a definite beginning and end. Therefore, this is an estate for years. The correct answer is: Estate for years
The original owner of a condominium unit holds which of the following interests?
A. Fee simple absolute in the unit B. Joint tenancy in the common areas C. Joint tenancy in the common walls D. All of the above Feedback Your answer is incorrect. (types of ownership) All original condominium owners have fee simple absolute title (ownership) in their individual living unit. Consistent with the condominium form of ownership, all original and subsequent condominium owners have a tenancy in common in the common areas of the project. The correct answer is: Fee simple absolute in the unit
The owner of a fee simple absolute estate leaves a will, which only specifies that he will leave a life estate to one party and a remainder estate to another. Upon the death of the life tenant, the remainderman could have a:
A. Fee simple estate B. Life estate C. Leasehold estate D. Fee simple determinable estate Feedback Your answer is correct. (types of ownership) The question states that the grantor has a fee simple absolute estate and that his will specifies only two things--that one person gets a life estate and another gets a remainder. This fee simple estate will pass to the remainderman upon the death of the life estate holder because: (i) the life tenant receives any interest that the grantor had; (ii) the remainderman will eventually receive any interest that the life tenant has; and (iii) there are no restrictions specified on the remainder. If the grantor had owned a lesser estate, or decided to place restrictions on the remainder, the estate could have been a fee simple determinable. The correct answer is: Fee simple estate
Which of the following is most likely to transfer with real property?
A. Fructus naturales B. Portable kitchen appliances C. Fructus industriales D. Trade fixtures Feedback Your answer is incorrect. (classes of property) Of the items listed, fructus naturales is most likely to transfer with real property. Fructus naturales refers to landscaping, like trees and bushes. Trade fixtures and fructus industriales do not usually transfer with real property. Fructus industriales, or emblements, refers to growing crops. Trade fixtures are installed by a tenant in connection with his trade or business, and they do not convey provided they are timely removed. The correct answer is: Fructus naturales
Which of the following items is most likely to be severed?
A. Garden tractor B. Commercial cooler C. Rail fence D. Either B or C Feedback Your answer is incorrect. (classes of property) Severance is the act of removing a fixture. A fixture is an item of real property that was previously considered as personal property. The fence was personal property before it was erected, and became real property when set in the ground. Garden tractors are personal property, but they are not affixed to land. A commercial cooler is real property, but if it is affixed to land, it will most likely be a trade fixture (severance does not apply to trade fixtures). Because only fixtures may be severed, "rail fence" is the best answer. The correct answer is: Rail fence
A cooperative owner has exclusive use of her unit by reason of:
A. General partnership B. Property lease C. Fee simple title D. License Feedback Your answer is incorrect. (types of ownership) Cooperatives are a form of ownership composed of single units in a multi-unit development. The title to land and improvements is held by a business entity (corporation). A purchaser receives stock in the business entity and takes a proprietary lease, which provides for exclusive use of a specified unit. The correct answer is: Property lease
The land description that uses a recorded subdivision plat is the:
A. Geodetic survey method B. Rectangular survey system C. Lot and block system D. Metes and bounds survey method Feedback Your answer is correct. (land characteristics and property descriptions) Recorded subdivision plats are used with the lot, block, and subdivision method of land description. The correct answer is: Lot and block system
To have any legal affect, plats drawn from the lot, block, and subdivision method must:
A. Include a plat B. Be pre-approved by the country or city before recordation C. Be recorded D. All of the above Feedback Your answer is correct. (land characteristics and property descriptions) Under the lot, block, and subdivision method, the size and location of each block and lot is shown on a plat, which serves as the basic reference point for all subdivision lots. In order to have any legal affect, all plats must be recorded in the public recorder's office, clerk's office, or land records of the locality in which it is situated. Plats must be pre-approved by the governmental section that is in charge of zoning before they can be recorded. The correct answer is: All of the above
Property taxes on cooperative units are assessed in the form of:
A. Individual tax bills for each unit B. A single tax bill, prorated among individual units C. Annual tax bills based on the type of unit D. Biannual tax bills based on the type of unit Feedback Your answer is incorrect. (types of ownership) The tax bill is issued to the corporation or owner entity, which is then prorated among the proprietary tenants. The correct answer is: A single tax bill, prorated among individual units
Mary purchased the right to use an apartment for 2 weeks every year. This is an example of:
A. Interval ownership B. Ownership as a joint tenant C. Cooperative ownership D. A limited partnership Feedback Your answer is incorrect. (types of ownership) Interval ownership (time-share) involves ownership for only a particular time period. Purchasers own the property as tenants-in-common, and rotate possession (use) of the property as agreed upon previously. Time share ownership is most commonly seen in vacation properties. The correct answer is: Interval ownership
A lease that contains no mention of an occupancy period is most likely to be:
A. Invalid B. A month-to-month lease C. Covered by the statute of frauds D. A tenancy at sufferance Feedback (types of ownership) A lease may be valid without a specified duration. A month-to-month lease does specify a period of occupancy--at least one month. A lease only falls under the statute of frauds if it is for one year or more. Finally, a tenancy at sufferance exists where someone remains in possession of the rental property after their lease expires, against the wishes of the landlord. Therefore, a tenancy at sufferance specifies no period of occupancy. The correct answer is: A tenancy at sufferance
Former personal property that automatically conveys:
A. Is a trade fixture B. Is a fixture C. Is chattel D. Occurs only by agreement Feedback Your answer is incorrect. (classes of property) When personal property is affixed or attached to land, it can become real property that will convey with the land. This is referred to as a fixture. Trade fixtures are also personal property that can be attached to land. However, trade fixtures are installed by a tenant in connection with her trade or business. Trade fixtures do not become real property, so long as they are timely removed. Chattel is another name for personal property, which may or may not transfer with land. The correct answer is: Is a fixture
A property has three owners. These parties own 10%, 20%, and 70% interest, respectively. What type of ownership do they have?
A. Joint tenancy B. Tenancy in common C. Tenancy by the entireties D. Either A or B Feedback Your answer is incorrect. (types of ownership) A joint tenancy requires that each tenant have a unity of interest (an identical interest in the property). A tenancy in common does not contain a unity of interest (which allows each tenant to have a different amount of interest). A tenancy by the entireties ONLY applies to a husband and wife (which you cannot legally have with three people). Severalty refers to sole ownership. Therefore, of the choices, the owner must have a tenancy in common. The correct answer is: Tenancy in common
A group intends to buy real property jointly, as follows: Person A contributes $11,000; Person B, $10,000; Person C, $5,000; and Person D, $6,000. Each desires to protect their heirs' share of the property. How could they take title?
A. Joint tenancy B. Tenancy-in-Common C. Tenancy by the entirety D. Either A or B Feedback Your answer is incorrect. (types of ownership) There is no choice here; they can ONLY take title as tenants-in-common. Joint tenancy requires that each owner hold the same percentage of interest and prohibits transfers by will (inheritence). They cannot be husband and wife because there are four people involved, so tenancy by the entirety is not an option. The correct answer is: Tenancy-in-Common
A building supplier delivers bricks to a job site on July 1st for the construction of a patio. The contractor finished the patio on July 30th and was paid. The contractor files bankruptcy on September 1st. On September 5th, the building supply company filed a mechanics lien against the owner of the property. What is the effective date of the lien?
A. July 1st B. July 30th C. September 1st D. September 5th Feedback Your answer is incorrect. (encumbrances) Regardless of when the notice is filed, a mechanics lien takes priority based on the date that the materials were delivered or the date that the work was started to improve the real property. The correct answer is: July 1st
All of the following statements are true about land, except:
A. Land exists forever B. Real estate is immobile C. Land cannot be insured D. Land may be depreciated Feedback (land characteristics and property descriptions) The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. Therefore, it is false to say that land may be depreciated. The correct answer is: Land may be depreciated
Sam dies and leaves a valid will. Sam leaves the family farm to his children after the death of his wife, Jane. Several years after Sam's death, Jane sells her interest to Larry. Which of the following statements is true?
A. Larry has no interest, but may cancel the contract due to Jane's fraud B. Larry has no interest because Jane did not get the children's permission to sell the farm C. Larry has a life estate pur autre vie D. None of the above Feedback Your answer is incorrect. (types of ownership) Jane has a life estate and the children are remainderman. Jane may only sell the interest she has. Thus, when she sells the property, the buyer's interest is the same as Jane's--a life estate measured by Jane's life, also known as a life estate pur autre vie. The correct answer is: Larry has a life estate pur autre vie
Jon purchased a 640 acre tract of land. Which method of legal property description would work best for Jon?
A. Monument B. Metes and bounds C. Recorded plat D. Geodetic Feedback Your answer is incorrect. (land characteristics and property descriptions) Geodetic and government survey are best suited to identify large tracts of land. Under this system, there are townships and sections. One section is one square mile, or 640 acres. The correct answer is: Geodetic
Mr. and Mrs. Jones sold their home to a church, but retained the right to occupy the property as long as they lived. The interest of the church is that of a:
A. Life estate B. Remainder estate C. Trustee D. Reversion estate Feedback Your answer is correct. (types of ownership) Mr. and Mrs. Jones deeded their home to the church, but reserved a life estate for themselves. Therefore, the church has a future estate and the Jones' are life tenants. Future estates include both remainder estates and reversion estates. A reversion estate is created where the grantor conveys less than a fee simple estate and retains a future interest for herself. A remainder estate is created where the grantor conveys less than a fee simple estate (here, the grantor conveyed a full fee simple) and creates a future interest for a third party. The correct answer is: Remainder estate
Jean transfers a fee simple interest in property to her daughter, Lisa, but reserves a life estate for herself. During Jean's lifetime, Lisa holds a:
A. Life interest, pur autre vie B. Remainder interest C. Reversionary interest D. Life estate Feedback Your answer is incorrect. (types of ownership) Lisa holds a remainder interest in the property until Jean dies. Then, Lisa will own the property in fee simple. The correct answer is: Remainder interest
What type of legal description will most accurately describe an irregularly shaped parcel of land?
A. Lot and block B. Metes and bounds C. Recorded plat of subdivision D. Government survey Feedback Your answer is correct. (land characteristics and property descriptions) Metes and bounds is best suited to describe irregularly shaped parcels of land, as one can easily navigate any shape from the point of beginning (POB). The correct answer is: Metes and bounds
All of the following choices are considered as legal descriptions of real property EXCEPT:
A. Lot and block B. Metes and bounds C. Street address D. Government survey Feedback Your answer is correct. (land characteristics & property descriptions) The street address is a valid method to describe property in documents like sales contracts. However, a street address is never a valid LEGAL description. The correct answer is: Street address
The rights of a condominium owner are defined by the:
A. Management agreement B. Bylaws and condominium declaration C. Bylaws and corporate charter D. Public Offering Statement Feedback Your answer is correct. (types of ownership) Condos are governed by their bylaws and their declaration documents. The correct answer is: Bylaws and condominium declaration
Fred bought a new boat and hired a contractor to build a dock on his lakefront property. Fred did not pay the contractor. In an attempt to get paid, the contractor may file a:
A. Mechanics lien against the boat B. Mechanics lien against the property C. General lien against Fred D. All of the above Feedback Your answer is correct. (encumbrances) The contractor improved real property by building a dock, and is therefore entitled to file a mechanics lien against the improved property. He cannot file a mechanics lien on the boat because it is personal property. He cannot file a general lien because mechanics liens are specific. The correct answer is: Mechanics lien against the property
An appurtenant easement may be terminated by:
A. Merger of the dominant and servient estates B. Condemnation of the servient estate through eminent domain C. Abandonment by the servient estate D. All of the above Feedback Your answer is incorrect. (encumbrances) An appurtenant easement could be terminated by merging both estates under one owner, where the owner of the dominant estate releases the easement on the servient estate, or where the owner of the dominant estate does not use the easement for a period of time (determined by statute) with an intent to abandon. If the servient estate is acquired by a government through the right of eminent domain, the easement remains. Abandonment by the servient estate will not terminate an appurtenant easement--abandonment must be by the dominant estate. The correct answer is: Merger of the dominant and servient estates
What would most accurately describe an irregularly-shaped parcel of land?
A. Metes and bounds B. Government survey C. Lot, block, and subdivision D. All of the above are equally accurate Feedback (land characteristics and property descriptions) Of the choices listed, metes and bounds would most accurately describe an irregularly-shaped parcel of land. The correct answer is: Metes and bounds
What is NOT considered to be a legal description of property?
A. Metes and bounds B. Lot and block C. Rectangular survey system D. Taxpayer federal ID number Feedback Your answer is correct. (land characteristics and property descriptions) All choices are valid methods of legal description, except for a taxpayer's federal identification number. The correct answer is: Taxpayer federal ID number
Bobby the Buyer purchases a lot for his dream house. Since he is careful to respect the property boundaries, Bobby inspects an old description of his lot from the city archives. In part, the description states: "Starting from the Tulip Tree on the northwest corner of the Smith Farm, proceed directly due west to the banks of Jeremy's Run. Proceed south to the two Oak trees on the Jeremy Farm. Proceed east to the two large boulders. Finally, proceed north back to the Tulip Tree." This method of land description is:
A. Metes and bounds B. Rectangular C. Prior recorded documents D. Monument Feedback Your answer is correct. (land characteristics and property descriptions) The use of natural monuments is to rely upon naturally occurring physical features of the land, such as those presented in the question. The method of property description that uses monuments (bounds) is the Metes and Bounds method. Therefore, Option A is the best answer. The correct answer is: Metes and bounds
What is not a valid method to describe real property?
A. Metes and bounds B. Street address C. Government method of survey D. All of the above are valid methods Feedback Your answer is incorrect. (land characteristics and property descriptions) A street address is NOT a legal method to describe real property because the street name is subject to change. However, while not legally enforceable in a deed, a street address is sufficient to identify property innformally. Note that the question does not ask you to identify LEGAL methods of describing property. The correct answer is: All of the above are valid methods
Industrial property includes all of the following uses except:
A. Mines B. Warehouses C. Ranches D. Vacant lots Feedback Your answer is correct. (classes of property) Note that industrial property includes mines, warehouses, plants, factories, utilities, and vacant land that is suitable for industrial development. A ranch is better classified as agricultural property. The correct answer is: Ranches
Once created and properly recorded, may a subdivision plat be altered?
A. No, because all descriptions will retain the historical reference to the original subdivision B. Yes, so long as new plats are created and recorded which reflect the changes to the original plat C. No, because a change would render all prior descriptions from the original plat as invalid D. Yes, so long as permission is obtained from the local zoning board Feedback Your answer is correct. (land characteristics and property descriptions) Subdivisions may be further subdivided or altered after the initial plat is recorded. This requires creating and recording new plats. If this occurs, the legal description may need to refer to all of the plats reflecting the history of the description of the parcel at issue. The correct answer is: Yes, so long as new plats are created and recorded which reflect the changes to the original plat
A prospective buyer wants the seller to include an ornate flagpole attached to the front porch of the house. What should the agent do to best ensure the flagpole conveys?
A. Nothing, because the pole is attached and will automatically convey B. Call the seller and advise them that the buyer wants the pole C. Include the flag pole in the offer to purchase D. Photograph the flag pole as evidence of its attachment Feedback Your answer is correct. (classes of property) The best way to avoid a fixture dispute is to always have a mutual agreement. By placing the flag pole in the offer, the buyer is attempting to reach an agreement with the seller. While advising the seller that the buyer wants the pole is a step in the right direction, actually including the pole in the offer is the best answer. Further, while the pole could automatically convey (and a photograph could be useful evidence in a dispute), placing the issue in the offer removes any ambiguity or concern. The correct answer is: Include the flag pole in the offer to purchase
Several people hold property as tenants-in-common. One of the tenants dies. His interest in the property will:
A. Pass to his heirs or devisees, if any B. Pass to the remainderman C. Be equally divided among the other owners D. Be divided between the other owners in direct proportion to their ownership interest Feedback Your answer is incorrect. (types of ownership) Upon the death of a tenant-in-common, that interest in the property will pass to his heirs or devisees. An heir is a person that receives property from someone who died without a will (intestate). State laws determine who is a rightful heir and how much they are entitled to (if anything at all). A devisee is a person that receives property from someone who died with a will, which specifically indicates that the person in question will receive said property. Title passes to the other owners when there is joint tenancy, NOT with a tenancy in common. The correct answer is: Pass to his heirs or devisees, if any
A person enters into a lease agreement for 1 year. At the end of a year, the lease expires, but the tenant does not vacate the property. The tenant would be considered a:
A. Periodic tenant, because the lease automatically renews B. Tenant at will, because no additional time period was specified C. Tenant at sufferance, because the tenant is breaking the law D. Freehold tenant, because the landlord failed to act Feedback Your answer is incorrect. (types of ownership) A tenant at sufference is a person who remains on the property after his lease expires. The tenant at sufferance only exists where a tenant's lawful rights to occupy the premises have expired. This estate is the lowest and most encumbered estate that exists. The correct answer is: Tenant at sufferance, because the tenant is breaking the law
Tommy the Tenant takes over a tattoo parlor from an existing tenant. The parlor came with a comfortable dentist chair, which was perfect for people to sit on while getting their tattoo. One day, the chair breaks. Tommy installs a new dentist chair that he picked up at a flea market. The new chair is:
A. Personal property, regardless of when it is removed B. Real property, if not timely removed C. Personal property, so long as it is timely removed D. Real property, regardless of when it is removed Feedback Your answer is incorrect. (land characteristics and property descriptions) This one is tricky. The issue is whether the chair is a trade fixture or a replacement fixture. Replacement fixtures are improvements that are installed by a tenant to replace worn out items that were already in place before the start of the lease. Replacement fixtures are classified as real property and belong to the owner. Because Tommy is merely replacing the chair. it is not a trade fixture, but merely a replacement fixture. Therefore, the chair is real property regardless of when or if it is removed (and Tommy cannot remove it without the owner's permission). The correct answer is: Real property, regardless of when it is removed
How can the extent of an encroachment always be discovered?
A. Physical observation B. Land survey C. Title search D. Quitcalm deed Feedback Your answer is incorrect. (encumbrances) A land survey (performed by a professional surveyor) documents property boundaries. A competent surveyor will find and document any physical encroachments. The correct answer is: Land survey
A property owner may:
A. Possess property, but not dispose of it B. Enjoy property, but not encumber it C. Dispose of property, but not destroy it D. Control property, but not exclude others Feedback Your answer is incorrect. (classes of property) The bundle of legal rights that accompany property ownership are: possess, control, enjoy, exclude, encumber, and dispose. Land cannot be destroyed. Therefore, of the choices given, the best answer is that a property owner cannot destroy the property. The correct answer is: Dispose of property, but not destroy it
Mrs. Heckler bought a unit in a condominium apartment complex directly from the developer. She most likely received a:
A. Proprietary interest in the complex B. Fee simple absolute interest in her unit C. Divisible fee simple interest in the common elements D. All of the above Feedback Your answer is incorrect. (types of ownership) Because Mrs. Heckler purchased directly from the developer, we know with reasonable certainty that she is an initial purchaser. As an initial purchaser, we know that Mrs. Heckler received a fee simple absolute interest in her condominium unit and an interest in the common elements (as a tenant-in-common) with all the other unit owners. The correct answer is: Fee simple absolute interest in her unit
Land is insurable primarily because of its:
A. Uniqueness B. Indestructibility C. Improvement D. None of the above Feedback Your answer is incorrect. (land characteristics and property descriptions) The concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. Therefore, the question states a negative and none of the answers are true. The correct answer is: None of the above
A person has fee simple ownership of a unit in a multi-story building. She is also required to pay property taxes on that unit. Which type of common interest ownership could the owner have?
A. Proprietary lease B. Cooperative ownership C. Condominium ownership D. Joint tenancy in the common area Feedback Your answer is correct. (types of ownership) Of the choices, only condominium ownership includes a fee simple interest in the individual unit. A condominium also includes a tenancy in common in the common areas, not a joint tenancy. The owner is required to pay a mortgage payment, taxes, insurance, etc. on her individual unit (and usually, a maintenance fee for common amenities). Meanwhile, a proprietary lease is associated with a cooperative, and the owner doesn't own her unit in fee simple. The correct answer is: Condominium ownership
A landlord's right to re-enter or regain possession of the premises upon expiration of a lease is known as:
A. Redemption B. Reversion C. Remainder D. Recovery Feedback Your answer is correct. (types of ownership) When the landlord leased the property, he gave up his right of possession. Upon termination of the lease agreement, the right of possession REVERTS to the landlord. The correct answer is: Reversion
If the property title is set to pass to someone other than the grantor upon termination of an estate, the interest held by the person who will receive the property is:
A. Reversionary B. Remainder C. Equitable D. Ostensible Feedback Your answer is correct. (types of ownership) If the interest given goes back to the grantor, then the grantor's interest is reversionary. Meanwhile, if the interest goes to someone else, the interest is a remainder estate. The correct answer is: Remainder
What is the best description of ownership in severalty?
A. Several persons own one piece of real property B. One person owns several pieces of real property C. Limited to corporate ownership D. Property owned by several members of the same family Feedback Your answer is correct. (types of ownership) When one person alone owns the property, it is owned in severalty. This means that ownersip is severed (separate) from all others. The correct answer is: One person owns several pieces of real property
Residential property may be composed of:
A. Single-family homes only B. Single-family homes and cooperatives C. Commercial buildings that may have a landlord's private apartment D. A cattle ranch with a bedroom in a barn Feedback Your answer is correct. (classes of property) Residential property is primarily composed of single-family homes, but can include smaller multi-family units (like condominiums and cooperatives). The correct answer is: Single-family homes and cooperatives
All of the following terms are physical characteristics of land except:
A. Situs B. Immobility C. Heterogeneity D. Indestructibility Feedback Your answer is correct. (land characteristics and property descriptions) Situs is an economic characteristic of land. Heterogeneity refers to uniqueness, which is a physical characteristic of land. The correct answer is: Situs
Smith and Brown own abutting property that borders a river. Over the years, soil from Smith's riverbank is washed onto Brown's riverbank. Who owns the soil that was washed from Smith's riverbank to Brown's?
A. Smith B. Brown C. The state D. None of the above, because all river bank owners have riparian rights Feedback Your answer is incorrect. (land characteristics and property descriptions) Accretion occurs where natural forces such as water cause land to move from one parcel to another. Once moved, it belongs to the receiving property owner. The correct answer is: Brown
Which real property right automatically conveys?
A. Surface rights B. Subsurface rights C. Control D. All of the above Feedback Your answer is correct. (classes of property) These are all property rights derived from the "bundle" of legal rights. The correct answer is: All of the above
Of the terms listed below, which do NOT fit together?
A. Survivorship --- Joint tenancy B. Fee simple --- Forever C. Testate --- Escheat D. Tenants-in-Common --- Undivided interest Feedback Your answer is correct. (types of ownership) All items match except "testate" and "escheat." The term testate means that someone died with a will. The term escheat describes the government power to receive property where the owner dies without a will and without any lawful heirs. The correct answer is: Testate --- Escheat
A tenant and landlord enter into a six month lease on July 1, 2016, to expire on December 31, 2016. Which of the following statements is correct?
A. The landlord must serve notice to quit at least 30 days before expiration or the lease will renew B. The tenant must serve notice to quit at least 30 days before expiration or the lease will renew C. If neither party provides proper notice to quit, the lease will renew for another 6 months D. The lease will terminate on December 31, 2016 Feedback (types of ownership) This question describes an estate for years because there is a definite beginning and ending date. Estates for years do not require any notice to terminate because the end is already specified. Therefore, the lease will terminate on December 31, 2016 The correct answer is: The lease will terminate on December 31, 2016
Farmer Pete leases land to grow wheat. In April, Farmer Pete plants his crop, expecting to harvest in October. However, just before harvest time, his landlord successfully evicts him for nonpayment of rent. In October, Farmer Pete attempts to harvest his wheat. The wheat belongs to:
A. The landlord, because Farmer Pete is no longer in possession of the property B. Farmer Pete, but he cannot re-enter the property without the landlord's permission C. Farmer Pete, because it is personal property D. The landlord, because the crops are affixed to the land Feedback Your answer is incorrect. (land characteristics and property descriptions) Growing crops are known as fructus industriales, or emblements. Emblements remain personal property even before harvest, despite the fact that they are attached to the land. Landlords cannot deny tenants the right to enter and harvest crops after a lease terminates. The correct answer is: Farmer Pete, because it is personal property
The unity that exists in both a tenancy in common and a joint tenancy is:
A. Time B. Title C. Possession D. None of the above Feedback Your answer is correct. (types of ownership) The "right" of possession is common to both forms of ownership. For joint tenancy to exist, each owner must acquire title from the same source, at the same time, and each owner must have the same percentage of interest. With a tenancy in common, there may be different interests and different sources. The correct answer is: Possession
Mary has a life estate and her daughter has been named as the remainderman. Mary leases the property to Susan for 5 years. One year later, Mary dies. Mary's daughter serves notice to Susan to vacate the property. Which of the following statements is correct?
A. The lease is valid for four more years because it is Susan's personal property B. The lease was invalid from the beginning because a life tenant may not commit waste C. The lease was valid only during Mary's lifetime because it was one of the sticks in the bundle D. The lease is invalid because it violates the statute of frauds Feedback Your answer is correct. (types of ownership) The life tenant (Mary) only has an interest in the property during her lifetime. However, she can convey a lesser interest because property ownership always carries certain rights (remember the bundle of legal rights--possess, control, enjoy, exclude, encumber, dispose). Any interest that Mary conveys will terminate upon her death because she cannot convey an interest greater than what she actually holds. While the lease is personal property, it is limited by Mary's life estate. In addition, Mary cannot commit waste, but leasing the premises is not considered waste. Finally, because the leasehold is for longer than one year, it must be written according to the statute of frauds. However, the facts do not indicate that the lease was not in writing. Therefore, Choice C is the best choice. The correct answer is: The lease was valid only during Mary's lifetime because it was one of the sticks in the bundle
Harry hired a contractor to paint the interior and exterior of his rental property. Harry did not pay, and the contractor filed a mechanics lien. Which of the following statements is true regarding the lien?
A. The lien can only be for the cost of the material used B. The lien applies to all of Harry's real property C. The lien applies to all Harry's real and rental property D. The lien only applies to Harry's rental property Feedback Your answer is correct. (encumbrances) A mechanics lien only applies to the real property that was improved (in this instance, painted). Further, the lien can only apply to the cost of materials and labor. The correct answer is: The lien only applies to Harry's rental property
Dave had a bad year. In February, he defaulted on his mortgage. In March, a carpenter built a deck on Dave's house. In April, that carpenter secured a mechanic's lien for work and materials since Dave wasn't able to pay his bill. In June, a judge signed a judgment lien against Dave and all of his real and personal property. Finally, Dave realized that he forgot to pay his property taxes, which should have been due in August. Which of the following liens has priority after a court-ordered foreclosure of Dave's home?
A. The lien of his mortgage B. The real estate tax lien C. The judgement lien D. The mechanic's lien Feedback Your answer is correct. (encumbrances) Real estate tax liens have priority over all other liens, including mortgages. The correct answer is: The real estate tax lien
What is NOT true about metes and bounds?
A. The metes and bounds survey ends at the point of beginning B. The distances shown in the deed will prevail over the actual distances measured C. The length of metes in the survey can be measured to one hundredth of a foot D. The monument at the point of beginning should be as permanent as possible Feedback Your answer is incorrect. (land characteristics and property descriptions) Note that if there is a difference between the distances shown in the deed and the actual distances measured by survey, the data in the survey will prevail over the data contained in the deed. The correct answer is: The distances shown in the deed will prevail over the actual distances measured
Zorba leases a restaurant. He installs ovens, booths, and counters. Which of the following statements is true?
A. The ovens, booths, and counters cannot be removed by Zorba B. The ovens, booths, and counters can be removed by Zorba at any time C. The ovens, booths, and counters can be removed by Zorba at any time before Zorba's lease expires D. Zorba is not responsible for any damage caused by removing the ovens, booths, and counters Feedback (classes of property) Items used in a trade are trade fixtures, and are the personal property of the tenant regardless of whether they are attached to land. They may be removed before the lease expires, but any damage to the real property caused by the removal must be repaired. If not removed before expiration of the lease, they become the property of the owner. The correct answer is: The ovens, booths, and counters can be removed by Zorba at any time before Zorba's lease expires
One house in a large neighborhood stands out because, compared to the others, it is not well maintained. Which concept best explains this single home's impact on the surrounding community?
A. The poorly maintained home value may rise due to immobility B. The value of all other homes in the neighborhood will decrease due to immobility C. The poorly maintained home value would increase if it were assembled with another lot D. The values of other homes in the neighborhood will decrease due to situs Feedback (land characteristics and property descriptions) A poorly maintained home in a large, well maintained community may actually increase in value due to the concept of immobility--its value is directly affected by its external surroundings. One home is not likely to decrease property values for all other homes in a large community. The correct answer is: The poorly maintained home value may rise due to immobility
Which phrase best explains why two physically similar parcels of real estate might have very different economic values?
A. The supply of land of earth is fixed B. Land cannot be created or destroyed C. Location, location, location D. Land cannot be moved from one place to another Feedback Your answer is correct. (land characteristics and property descriptions) "Location, location, location" refers to area preference, or situs. Situs is an economic term that refers to people's preference for one area over another, even if it's a similar property. The correct answer is: Location, location, location
A husband and wife own property as tenants by the entirety. The husband dies, leaving all his property to their son. Which of the following statements is true?
A. The wife owns the property in severalty B. The son is a tenant-in-common with his mother C. The son will automatically inherit the property when his mother dies D. The son has a life estate, pur aure vie Feedback Your answer is incorrect. (types of ownership) Tenancy by the entireties is a form of joint ownership with rights of survivorship. When the husband dies, he CANNOT will his portion to his son; it automatically goes to his wife. The correct answer is: The wife owns the property in severalty
What distinguishes an easement in gross from an appurtenant easement?
A. Whether the benefit runs with the land B. Whether there are adjacent properties C. Whether the use is regular exercised D. Whether the purpose is legal Feedback Your answer is correct. (encumbrances) An easement appurtenant attaches to and runs with the land, while an easement in gross is a personal right which would terminate upon the death of either the grantor or grantee. An easement in gross also terminates with the sale of the property. Therefore, an easement in gross does not run with the land. However, an easement appurtenant does run with the land. Both easements could involve adjacent properties. The correct answer is: Whether the benefit runs with the land
A joint tenant wants to sell his interest without consent from the other joint tenants. Can he do this?
A. Yes, because each joint tenant may sell independently of the others B. Yes, because survivorship is present in joint tenancy C. No, because all co-owners must first agree to sever the tenancy D. No, because the unity of interest in a joint tenancy protects the other co-owners Feedback Your answer is correct. (types of ownership) One joint tenant may sell his or her interest independently of the others and without their consent, but could NOT sell the whole. Anyone who buys that interest will become a tenant-in-common with the others, not a joint tenant. The correct answer is: Yes, because each joint tenant may sell independently of the others
Six months after Brady bought his home, he installed custom-made storm windows and doors. If Brady subsequently transfers title to someone else, will the storm windows and doors automatically transfer as well?
A. Yes, unless the parties agree that they will be removed before the sale has advanced B. Yes, because the storm windows and doors are fixtures C. No, because they can be easily removed without damaging the property D. No, so long as Brady reinstalls the original windows and doors Feedback Your answer is incorrect. (classes of property) Storm windows and doors that are "custom made" for a property are fixtures since they were adapted to the property. As fixtures, they will automatically transfer with the property unless they can be severed (removed) legally. Determining whether an item may be severed is a common source of dispute. As such, the best answer is Choice A since an agreement will always settle the issue. The correct answer is: Yes, unless the parties agree that they will be removed before the sale has advanced
