REAL ESTATE (Property Ownership) test 1

The right to control land usage by zoning and eminent domain is an example of

1.a public interest.

2.a police interest.

3.an estate in law.

4.an encumbrance.

1) Public Interest (It's not Police Interest; they are fooling you with using "interest" vs "power". The correct term would have been Police Power.

Two people own a house, each having an undivided equal interest. Which of the following best describes what each party owns?

1.Fifty percent of the physical house and the land it rests on.

2.Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.

3.One hundred percent of the home and the land.

4.Fifty percent of the estate consisting of the indivisible whole of the real property.

4) An undivided interest is an owner's fractional interest in an entire (undivided) estate, but not in a physical portion of the real property itself. An owner who has an undivided equal interest with another cannot exercise exclusive rights over a portion of the real estate, which is an indivisible whole.

Homestead estates are examples of

1.a fee simple absolute.

2.a legal life estate.

3.a conventional life estate.

4.an estate created by an owner's agreement.

2) Homestead, dower, and curtesy are legal life estates. A legal life estate is created by state law as opposed to being created by a property owner's agreement. The focus of a legal life estate is defining and protecting the property rights of surviving family members upon the death of the husband or wife.

An estate from period-to-period will continue as long as

1.the tenant makes, and landlord accepts, regular rent payments.

2.the term specified in the lease.

3.the landlord has not sold the property.

4.the period is less than a year.

1) In an estate from period-to-period, also called a periodic tenancy, the tenancy period automatically renews as long as the tenant pays rent in a timely manner and the landlord accepts it. At the end of a tenancy period, if the landlord accepts another regular payment of rent, the leasehold is considered to be renewed for another period. A conveyance of leased property does not cancel a leasehold interest.

When a tenant in common dies, what happens to the tenant's interest in the estate?

1.The surviving tenants must buy the interest from the deceased tenant's heirs or sell their interests to the heirs.

2.It becomes a joint tenancy.

3.It passes by probate to the deceased tenant's heirs.

4.It is divided equally among the surviving tenants in common.

3) A deceased co-tenant's estate passes by probate to the decedent's heirs and devisees rather than to the other tenants in common. Any number of heirs can share in the ownership of the willed tenancy.

The "four unities" required to create a joint tenancy include which of the following conditions?

1.Parties must acquire respective interests at the same time.

2.Parties must be family members.

3.Parties must be residents of the same state at the time of acquiring the interest.

4.Parties must have joint financial responsibility.

1) all owners must acquire the property at the same time, use the same deed, acquire equal interests, and share in equal rights of possession

Which of the following property is considered "personal property"?

1.A chandelier

2.The front porch of a home

3.A sofa

4.A garage attached to a house

3) Personal property is any property that is not part of the real property. The garage, chandelier and porch are all attached and are therefore considered real property. A sofa is moveable and therefore, considered real property..

When a joint tenant dies, what happens to the tenant's interest in the estate?

1.The joint tenancy terminates and becomes a tenancy in common with the decedent's heirs and the surviving tenants as co-owners.

2.It passes to the surviving joint tenants.

3.It passes to the decedent's heirs, who become joint tenants.

4.It passes as a tenancy in common to the decedent's heirs.

2) In most states, joint tenants enjoy rights of survivorship: if a joint tenant dies, all interests and rights pass to the surviving joint tenants free from any claims of creditors or heirs. When only one joint tenant survives, the survivor's interest becomes an estate in severalty, and the joint tenancy is terminated.

A retired couple has just bought a retirement home with a pier on a large lake. In this case the retirees' water rights extend to

1.the high water mark of the body of water at the shoreline.

2.the center of the lake.

3.the end of the pier.

4.the low water mark of the body of water at the shoreline.

1) Riparian rights (majority):

---Ownership extends to the high-water mark of the body of water.

refers to those whose property borders on a lake or stream.

-owner can use all the water needed for domestic purposes.

-if use is non domestic, owner is limited to reasonable use, i.e. act reasonable towards others downstream

When real property is held in a land trust, who controls the property?

1) trustor

2)trustee

3)Beneficiary

4) the mortagee

3) A land trust allows the trustor to convey the fee estate to the trustee and to name himself or herself the beneficiary. The land trust applies only to real property, not to personal property. The agreement, or deed in trust, grants the beneficiary the rights to possess and use the property and to exercise control over the actions of the trustee.

Under what conditions can two individuals own a property as tenants by the entireties?

1.If they so elect at the time of acquiring title.

2.If they are blood relatives.

3.If they are married.

4.If they incorporate.

3) Tenancy by the entireties is a form of ownership reserved exclusively for husband and wife. It features survivorship, equal interests, and limited exposure to foreclosure.

The distinguishing feature of a leasehold estate is

1.unlimited ownership of one right in the bundle of rights in a property.

2.that the estate is limited by a lease term.

3.temporary ownership of the full bundle of rights in a property.

4.ownership of an interest by a tenant.

that the estate is limited by a lease term.

Tanya buys a 4-bedroom condominium. As the new owner, she has the right to

1.exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit.

2.sell or mortgage the unit without impediment from individual owners of neighboring units.

3.sell the interest in the physical unit separately from the interest in the common elements.

4.prevent non-owners from using the unit owner's portion of the common elements.

2) Condominium units can be individually sold, mortgaged, or otherwise encumbered without interference from other unit owners. An owner may not sell interests in the apartment separately from the interest in the common elements.

In a cooperative, real property is owned only by

1.the corporate entity of the cooperative association.

2.the cooperative developer.

3.the individual unit owners and the cooperative association.

4.the individual unit owners.

1) The corporate entity of the cooperative association is the only party in the cooperative with a real property interest. The association's interest is an undivided interest in the entire property. There is no ownership interest in individual units, as with a condominium.

If a joint tenant sells his or her interest to an outside party,

1.the joint tenancy continues with the new owner as the third joint tenant.

2.the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner.

3.the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner.

4.the joint tenancy terminates and all owners become tenants in common.

2) A joint tenant may transfer his or her interest in the property to an outside party, but only as a tenancy in common interest. Whoever acquires the interest co-owns the property as a tenant in common with the other joint tenants. The remaining joint tenants continue to own an undivided interest in the property, less the new co-tenant's share.

You and your brother are joint tenants in a home that your mother left to both of you in her will. Your brother has three children and they are all included in his will; you have one daughter. If your brother dies first, who does your brother's share of the property go to?

1.It is divided equally between his three children.

2.It goes entirely to you.

3.It goes into his estate.

4.It is divided equally between his three children and you.

2) It goes entirely to you.In the event of death, when the property is owned in joint tenancy, the property transfers at death to the surviving joint tenants. In this case, your brother's share transfers to you.

Which of the following best describes the legal concept of personal property?

1.Any item that is not a natural item affixed to the earth.

2.Any movable property owned by an individual, partnership, or corporation.

3.Any item which is acquired in a fee simple sale transaction.

4.Any item of property that is not definable as real property.

4) Personal property is any owned item which is not real estate, and the rights associated with owning the personal property item. Items of personal property are also called chattels or personalty.

Which of the following best describes a "fixture?"

1.An item of personal property that has been left in one location for a period of six months.

2.Any item of personal property positioned within the boundaries of a parcel of real estate.

3.An item of personal property that has been converted to real property.

4.An item of real property temporarily placed on land for the purpose of conducting a business.

3) A personal property item that has been converted to real property by attachment to real estate is called a fixture. Typical examples are chandeliers, toilets, water pumps, septic tanks, and window shutters. The owner of real property inherently owns all fixtures belonging to the real property. When the owner sells the real property, the buyer acquires rights to all fixtures.

Unlike tenants in common, joint tenants

1.own distinct portions of the physical property.

2.cannot will their interest to a party outside the tenancy.

3.may own unequal shares of the property.

4.cannot encumber their interest to outside parties.

2)The survivorship feature of joint tenancy presents an advantage to tenancy in common, in that interests pass without probate proceedings. On the other hand, joint tenants relinquish any ability to will their interest to parties outside of the tenancy.