Quiz - Unit 2 Property Ownership and Interests

Real property is often referred to as a bundle of legal rights. Which of the following is NOT among these rights

Right to override local zoning

A property is bordered by a small stream. The property ends

at the center of the stream

Oceanfront property ends at the

mean high-water mark

Which of the following is NOT a required step to make a manufactured home a legal part of real estate?

Remove the HUD label from the exterior of the home

Which of the following would typically be considered a fixture?

A custom-made mailbox attached to the house

Which of the following would NOT be considered in determining if an item is a fixture?

Value

Which of the following items would normally convey as a fixture with the property?

The large mirror bolted over the fireplace mantel

A seller spent $5,000 to have custom-made awnings installed over her backyard patio. According to the NCBA/NCR 2-T Offer to Purchase and Contract, what is the status of the awnings?

The awnings are considered real property and must stay

A purchaser of real estate learns that her ownership rights will continue forever ad that no other person has any ownership control over the property. This person owns a

fee simple interest

Which of these is NOT a characteristic of a fee simple estate?

It is free of encumbrances

A freehold estate in land that will automatically extinguish upon the cessation of a specified condition is called a

fee simple determinable

A property owner wanted to donate to the hospital a vacant lot she owned adjacent to a hospital for expansion purposes. She wanted to make sure the land was used as she intended, so her attorney prepared the deed to convey ownership of the lot to hospital “so long as it is used for hospital purposes.” Upon receipt of the gift, the hospital owned a

fee simple determinable estate

A property owner has a freehold estate in a single-family home. He rents the home to a young couple. Which of the following statements is TRUE?

The man has a freehold estate in the property, and the tenants have a leasehold estate in the property

An example of a condominium limited common element would be

a storage locker

If property is held by two or more owners as tenants in common, the interest of a deceased co-owner will pass to the

heirs of the deceased owner

What form of concurrent ownership can only be held by spouses

Tenants by the entirety

William, Frank, and Jane are tenants in common Jane sells her interest to Lloyd, and then Frank dies. As a result,

William, Lloyd, and Frank’s heirs are tenants in common

Concerning concurrent ownership, which of the following statements is TRUE?

Joint tenants may hold title to the property with equal, undivided interests

A buyer and a seller/developer executed a purchase contract for a new condominium on May 6 with the buyer giving $5,000 in earnest money. The buyer changed her mind and notified the seller on May 11 that she was rescinding the contract. Which of the following is TRUE?

The buyer can legally cancel the contract and have all the earnest money refunded

Which of the following statements is TRUE regarding common interest community ownership?

A town house owner individually owns the ground under the unit

Personal property is usually transferred with

a bill of sale

Which of these is NOT true under the North Carolina Time Share Act?

A time-share salesperson must provide a public offering statement to the buyer before sharing project information

Each time-share developer must deposit all money received from a purchaser in

an escrow account for 10 days

A prospective client wishes to list his property with a broker and states that the property is held in a trust. Which party should the real estate broker contact in order to proceed with listing and marketing the property?

The trustee

One advantage of a trust is

the assets of the trust may be able to pass outside of probate

In order to create a joint tenancy relationship in the ownership of real estate, there must be unities of

possession, time, interest, and title.

In North Carolina, a modular home

becomes part of the real estate as soon as it is assembled on site.

A joint tenant sells her interest to a third party. If the original ownership interests were equal, what is the relationship of the new owner with the remaining original owner?

They are tenants in common.

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.

Three joint tenants own a parcel of land. One owner sells his interest to a long-time friend. After the conveyance, the remaining original owners

remain joint tenants with each other.

Which of the following statements is true regarding townhomes and condos?

Condo unit owners are responsible to maintain the interior of their unit.

One of two owners holds an undivided 60 percent interest and the other holds an undivided 40 percent interest. The two owners probably hold their interests as

tenants in common.

A North Carolina beachfront property owner owns the land on the ocean side of the property to the

average high tide line.

Personal property does not include which of the following?

fixtures

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.