Capitulo 2

Question 1

When real property is purchased, in addition to the physical property, rights of ownership are
conveyed with the deed. Sometimes called the “bundle of sticks”) contains 11 property rights

Answer 1

The Bundle of Rights

Question 2

A defeasible fee has some condition or covenant involved that limits the extent of one’s ownership. This is also an inheritable estate.

Answer 2

Fee Simple Qualified or Defeasible

Question 3

Fee Simple Determinable AND Fee Simple with a Condition Subsequent.

Answer 3

2 FORMS OF: Fee Simple Qualified or Defeasible

Question 4

If an individual has a freehold interest, he has an ownership interest in the property, but may or
may not own it free and clear. The word ownership is a synonym for the word freehold. There are
various forms of freehold interests

Answer 4

Freehold (Ownership) Estates

Question 5

This is the most complete form of ownership an individual can hold under the law.
A fee simple estate is inheritable.

Answer 5

Fee Simple:

Question 6

1. Fee Estate

2. Fee Simple Absolute

Answer 6

Fee Simple is also known as:

Question 7

The life estate is based on the life of someone other than the holder of the life estate. For instance, Abel sells his life estate to Charles. Charles is the holders of the life estate pur autre vie. That is, Charles holds the life
estate, but the extent of his ownership of the life estate is based on Abel’s life. A life estate
pur autre´ vie is inheritable as long as the person on whose life it is based is still alive.

Answer 7

Life Estate Pur Autre´ Vie (on another’s life)

Question 8

The right of an owner or lessee to uninterrupted legal use of the property
without interference or undue disturbance caused by defective title.

Answer 8

Quiet Enjoyment

Question 9

the final “ ____” WHO will hold the

property fee simple.

Answer 9

Remainderman

Question 10

The fee simple owner conveys to the grantee the right to use a property as though the
grantee owned it, so long as the grantee lives. The grantor has the right of reversion, and
is a remainderman unless it has been specified that the final remainderman will hold the
property fee simple.

Answer 10

EXPLAIN REVERSION AND REMAINDERMAN

Question 11

to sell, lease, or encumber his interest in the

property (the life estate), but cannot will it.

Answer 11

The holder of the life estate has the right :

Question 12

collateral on a loan if all the parties (grantor, grantee, lender) agree and consent to the lender receiving the property fee simple upon default.

Answer 12

A life estate can be used as :

Question 13

a life estate can be mortgaged, but the reversion/remainder rights will be

Answer 13

lost and the property will be foreclosed on by the lender who will then receive the property in fee
simple.

Question 14

commit “waste.”
In other words, he cannot damage or neglect the property and thereby diminish its value
for when it is passed on to the remainderman.

Answer 14

The life estate holder cannot:

Question 15

a. A basic life estate can be conveyed, sold, or gifted, but not inherited. If the life estate holder sells the life estate, the new owner owns the life estate pur autre’
vie. b. A life estate pur autre’ vie can be conveyed, sold, gifted, or inherited as long as the governing life is still alive. c. Unless a remainderman is created by the grantor, the grantor holds a reversionary interest, which can be inherited if the grantor pre-deceases the governing life.

Answer 15

Life Estate Pur Autre´ Vie (on another’s life) RULES

Question 16

Fee Simple is also known as:

Answer 16

1. Fee Estate AND 2. Fee Simple Absolute

Question 17

If an individual has a freehold interest, he has an ownership interest in the property, but may or may not own it free and clear. The word ownership is a synonym for the word freehold

Answer 17

FREEHOLDER OF ESTATES /Freehold (Ownership) Estates

Question 18

Which of the following is NOT a part of the Bundle of Rights?

Answer 18

D Interest

Question 19

The word or phrase that most accurately describes the word “Freehold” is:

Answer 19

B Ownership

Question 20

Don Meyers has the legal right to act as though he owns a property for the rest of his life, even though the property is actually owned by his father Ron Meyers. Don is a:

Answer 20

A Holder of a life estate

Question 21

Exists when there is a condition in effect after the conveyance of the property to the grantee. If that condition is violated, such as changing the defined
use of the property, the property automatically reverts back to the original owner by right of reversion. Example: “A grants the property to B so long as the property is used as a school.”

Answer 21

Fee Simple Determinable:

Question 22

Is the same as Fee Simple Determinable except that there is no automatic right of reversion. If the condition is violated, the grantor may retake the property if the conveyance grants him/her the right to do so. Example: “A grants the property to B, but if the property is ever used for commercial purposes, then A has a right of reentry.”

Answer 22

Fee Simple with a Condition Subsequent:

Question 23

Title will not fully transfer to the grantee until

a condition is met, such as a child reaching legal age.

Answer 23

Fee Simple with a Condition Precedent:

Question 24

they will own the property in the future once the

condition is satisfied. Example: “A grants the property to B ‘if B graduates from college.’”

Answer 24

Thus, the grantee holds a future interest—

Question 25

The right to keep the property, sell it, lease it, give it away, etc.

Answer 25

Disposition

Question 26

These rights involve the purposes for which the property is used such as living,
stores, farms, mining, or no use at all.

Answer 26

Use or Control:

Question 27

These rights include the right to enter and occupy the property, to invite others to enter and/or occupy, and the right to exclude others (no trespassing).

Answer 27

Possession: