REX 7600 Unit 2
A buyer contracts to purchase real property with the intention of having title transfer to her children upon death. Which of the following is the best way for the buyer to take title to the purchased property?
A fee estate
Fee Simple absolute
A fee simple estate with no restrictions on its use
Total Circumstances Test
A legal test applied by the courts to determine whether an item is a fixture. (IRMA)
Measuring Life
A person whose life determines the length of a life estate, they have no present or future ownership interest
Which of the following statements about the North Carolina Timeshare Act are FALSE?
A purchaser of a new timeshare ownership must be given a 10-day rescission period; The rescission period is 5 days, not 10
In North Carolina, a modular home A. becomes part of the real estate as soon as it is assembled on site. B. has a steel chassis with wheels and axles. C. has a HUD label that is required for transfer of title. D. is constructed per HUD construction standards.
A. becomes part of the real estate as soon as it is assembled on site.
A homestead estate is one that A. protects land that includes the family home from creditors B. has remained in a family's ownership for more than five generations C. was obtained through adverse possession D. exists in all American States and some foreign countries
A. protects land that includes the family home from creditors
Fixtures are A. real property. B. chattels. C. removable by a tenant before the expiration of the lease. D. removable by a tenant after the expiration of the lease.
A. real property.
Fixture
An item of personal property that has been converted to real property by being permanently affixed to the real estate
Riparian Rights
An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.
Fructus industiales/ emblements
Annual crops such as corn, vegetables, wheat
Examples of trade fixtures
Bowling Alleys, store shelves, bars, restaurant equipment
Severance
Changing an item of real estate to personal property by detaching it from the land
A buyer purchases a fee simple estate and has an undivided interest in common elements associated with the property that includes all the land. What form of ownership interest does the buyer hold?
Condominium
Conventional Life Estate
Created by grant from the owner of the fee simple estate. The owner retains a reversionary interest in the property or names a remainderman.
Example of Severance
Cutting down a tree or picking an apple from a tree
Which of the following is considered personal property? A. Masonry fireplace B. Porch and window awnings C. Bathtubs D. Patio furniture
D. Patio furniture
Which of the following is NOT TRUE about condominium ownership? A. It can be mortgaged. B. All the land is owned as part of the common elements. C. The ownership can be left to someone through a valid will. D. The limited common elements can be sold separately.
D. The limited common elements can be sold separately.
A homeowner acquired the ownership of land that was deposited by a river running through her property by A. reliction. B. succession. C. avulsion. D. accretion.
D. accretion.
The land of a common interest community A. is always owned by the owner's association B. cannot be owned by individual unit owners C. is automatically considered to be part of the common area D. may be maintained by the owner's association
D. may be maintained by the owner's association
DEEP C
Disposition, Enjoyment, Exclusion, Possession, Control; The Bundle of Rights
Fee Simple Subject to Condition Subsequent
Estate dictates some action or activity that the new owner must not perform.
Types of Leasehold or nonfreehold estates
Estate for years, estate from year to year, estate at will, estate at sufferance
2 types of defeasible estates
Fee simple subject to a condition subsequent Fee simple determinable
Types of Freehold Estates
Fee simple, defeasible fee estate, pur autre vie, ordinary conventional life estatewith remainder or reversion
3 ways fixture differ from trade fixtures
Fixtures are part of the real property and belong to the property owner, Fixtures are considered a permanent addition to a building, Fixture are legally construed to be real property and included in any sale or mortgage of the property
Which of the following has an indefinite ownership period?
Freehold estate
Reliction
Gradual recession of water or disappearing permanently, acquiring new land
Remainder interest
Grantor names someone other than the grantor to receive title to the property when the life estate terminates
Adaptation to real estate
Has either the item or the property been tailored to facilitate working together? has it been customized or built in to the property?
Method of annexation
How permanent is the method of attachment? Can the item be removed without causing damage to the surrounding property, or can any damage caused by the removal be easily repaired?
Reversionary Interest
If grantor does not name a remainderman, then ownership returns to the grantor when the life estate terminates.
Agricultural Fixtures
In North Carolina, a fixture attached to leased property by a tenant farmer is considered the landowner's real property rather than the tenant's personal property.
4 legal tests of a fixture
Intention, Relationship, Method of Annexation, Adaptation to real estate
IRMA
Intention, Relationship, Method of annexation, Adaptation
Real Property
Land, improvements thereon, and the interests, rights, and benefits of ownership
Manufactured home
Mobile home or trailer home that can be real property or personal property
Two classifications of Estates in land
Nonfreehold estates/leasehold estates (rights or possession) and Freehold estates (rights of ownership)
Marital Life Estate
North Carolina law permits that when someone dies without a will, or dies with a will disinheriting a spouse or leaving him or her very little that the surviving spouse may choose an "elective share" of the estate instead.
Remainderman
One entitled to receive a remainder interest in some estate sometime in the future.
Example of Subjacent Support
Owner of subsurface mineral rights under your property cannot cause the surface of your land to collapse.
A life estate conveys to the life tenant: A. a leasehold for life. B. a reversionary interest. C. an estate pur autre vie. D. ownership for life.
Ownership for life
Annexation
Permanent improvements on the land such as buying bushes and planting them on the land
Actions required to turn a manufactured home into real property
Remove the hitch, wheels, and axels, attach the home to a permanent foundation, file an affidavit confirming those things were done
Future Interest
Right of reentry and possibility of reversion
Bundle of Rights
Rights of ownership, including right of possession, disposition, enjoyment, control, exclusion
A rancher owns a parcel of land with all subsurface, air, and water rights intact. If oil is discovered on the parcel of land, who owns the oil?
The Rancher
Fee Simple Estate
The complete ownership of a property; may be either absolute or defeasible (conditional).
Estate in land
The degree, quantity, nature, and extent of interest a person has in real property.
Life Tenant
The holder of a life estate.
Reversionary Right
The return of the rights through court proceedings if the condition is broken in a a fee simple subject to condition subsequent or automatically in a fee simple determinable
Subjacent Support
The right to have one's land supported from below.
Modular Home
Units that are constructed in factories off-site according to state building codes. Once assembled on the home site, it is immediately considered to be real property.
Littoral Rights
Unrestricted use of navigable waters but own the land adjacent to the water only up to the mean high-water mark
Intention
Was it intended to be permanent
A person who acquired ownership that can be inherited, with the provision that the land must always be used for recreational purposes, has
a fee simple determinable estate
Life Estate
a freehold estate in land that is limited in duration to the life of the new owner or to the life or lives of some other designated person(s)
Improved land
a land that has a structure on it, such as a house
Homestead
a legal life estate in real estate occupied as the family home
The owner of a condominium unit learns that a neighbor has failed to pay his real estate taxes. If the neighbor does NOT pay the taxes
a lien can be filed against the neighbor's unit
Life Estate Pur Autre Vie
a life estate owned for the lifetime of some named 3rd party called the measuring life
Trade Fixture
an article owned by a tenant and attached to a rented space or building for use in conducting a business
Fee Simple Defeasible
an estate which may be lost ( or defeated) on the occurrence or nonoccurence of a specified event
An elderly couple no longer need their large house, so they decide to sell the house and move into a cooperative apartment building. In a cooperative, they will
become stockholders in a corporation
A business owner rents an empty building to use as an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions
can be legally removed by the tenant at the termination of the lease
An owner of a fee simple estate sells the property with the condition that he will continue to own the entire property until his death. The seller has a
conventional life estate
A man lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, the man owns stock in the corporation and has a lease to his apartment. This type of ownership is called a
cooperative
A decedent left a will giving a neighbor the right to use a well on the decedent's land as long as the neighbor was alive. The neighbor's interest in the property is properly called a(n)
easement in gross.
A portion of a building was built on the neighbor's land. This is called an
encroachment
A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an
estate in remainder.
Freehold Estates
estates of indeterminable length of ownership, such as those existing for a lifetime or forever
Nonfreehold or leasehold estates
exists on the property when the owner has rented the property to a tenant
A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a
fee simple determinable estate
A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a
fee simple determinable estate.
A person who has complete control over a parcel of real estate is said to own a
fee simple estate
Accretion
gradual increase in land resulting from the deposit of soil by the water
Erosion
gradual wearing away of land caused by flowing water that may cause an owner to lose land
A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building
in severalty
Waste
injury to the land or rela estate
If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, the easement
is terminated
Relationship of the annexor
is the person making the attachment the owner?
A property owner conveys the ownership of his apartment building to a nursing home, anticipating that the rental income will help pay for his father's care at the home. When his father dies, the original owner will recapture the ownership of the apartment building. This is an example of a
life estate pur autre vie
An example of a LIMITED common element in a condominium project is a
locked storage unit.
Generally, personal property can be distinguished from real property by its A. size. B. mobility. C. value. D. multiplicity of use.
mobility.
The ownership rights to real estate include all of the following EXCEPT
navigable rivers running through the property; Navigable waters are owned by the government
After construction of a building over a railroad right-of-way, the trains may
operate as usual
Fructus Naturales
plants that do no require annual cultivation; trees &shrubbery
A person currently has the legal right to occupy and use a certain residential structure. The interest in the property could be all of the following EXCEPT
remainder
Fee Simple Determinable
requires that a specified activity or land use continue; if the condition ceases to exist ownership automatically reverts to former owner
Apputenance
right or privilege that goes with the ownership of land, such as an improvement
Lateral Support
right to have adjacent property support the natural boundaries of the land
Subsurface Rights
rights to use the space below ground level and to extract natural resources lying below the lands surface
The rights of the owner of property located along the banks of a small stream are called
riparian rights.
Improved Lot
the certain basic required services necessary to utilize it, such as electricity or water access
Accession
the right of an owner of property to an increase in that property such as when a trade fixture is not removed before the end of the lease
Air Rights
the right to use the air above the land
Surface Rights
the rights to use the surface of the land
Emblements are
the same thing as fructus industriales
An ownership interest that is based on pre-set occupancy periods occurring over five years or more is called
time-share ownership
Doctrine of Prior Appropriation
water rights are determined by priority of beneficial use. This means that the first person to use water or divert water for a beneficial use or purpose can acquire individual rights to the water
Avulsion
when a sudden act of nature removes soil, such as a flood or avalanche
