Ch 10: Freehold Estates and How Property is Held Flashcards
An estate that is less than a freehold and lasts for a certain duration of time is known as a:
a. Fee simple
b. Leasehold estate
c. Estate in remainder
d. Life estate
b. Leasehold estate
A leasehold estate is an estate that is less than freehold and lasts for a certain duration of time.
The characteristics of a freehold estate include all of the following, EXCEPT:
a. Definite Duration
b. Unpredictable Duration
c. Actual Ownership of Land
d. Legal matters tried under Real Property Laws
a. Definite Duration
A freehold estate is a real property ownership estate of uncertain duration.
A person who receives a fee interest following the termination of a prior estate is called a:
a. Trustee
b. Grantor
c. Lessee
d. Remainderman
d. Remainderman
A remainderman is a person, other than the grantor that created the life estate, who receives the fee simple interest in the property at the termination of a life tenancy.
A fee estate subject to termination upon the occurrence of a specified event but does NOT terminate automatically, would be:
a. A life estate
b. Fee simple conditional
c. Fee simple on condition subsequent
d. Fee simple determinable
c. Fee simple on condition subsequent
Fee simple on condition subsequent can be identified by the fact that it takes a court action to get the property back when there is non-compliance with the condition.
If a grantor wants to retain interest and convey the remainder to a son how can this BEST be accomplished?
a. Execute and deliver the deed reserving a life estate
b. Execute a deed but do not deliver it until death
c. Execute and deliver the deed restricting a life estate
d. Execute and deliver the deed excepting a life estate
a. Execute and deliver the deed reserving a life estate
The execution and delivery of a deed to the son with a Reservation of a life estate for the grantor would create a remainder interest for the son and a life estate for the father. A reservation in a deed is holding back of some right or interest by the grantor.
An owner of a fee simple estate gives title to his daughter, but reserves the right to occupy the property until he dies. The interest of the daughter is:
a. Fee simple estate
b. Reversionary estate
c. A remainder estate
d. A conditional estate
a. Fee simple estate
The reservation of the right to occupy is a leasehold estate not a life estate, so the interest of the daughter is a fee simple estate that has an encumbrance of the father’s leasehold interest.
Alex gives property to Ben for Ben’s lifetime; then the property passes to Chuck. This is an example of:
a. Estate in remainder
b. Estate in reversion
c. Pour autre vie
d. Dower of curtesy
a. Estate in remainder
An estate in remainder is established when the grantor states in the deed that on the death of the life tenant, the property will go to a third person.
When the word fee is used in connection with ownership of real property, it refers to:
a. Commission
b. An estate of inheritance
c. A conveyance charge
d. The price paid
b. An estate of inheritance
Fee ownership such as a fee simple absolute is an estate of inheritance meaning that the ownership is inheritable through a will or by the laws of descent.
The greatest possible right of ownership a person can have is a:
a. Fee simple estate
b. Defeasible fee
c. Leasehold estate
d. Life estate
a. Fee simple estate
A fee simple estate gives the owner the greatest interest possible and is of indefinite duration.
All of the following are characteristics of a fee simple estate EXCEPT:
a. Transferable by will or intestate succession
b. Free of encumbrances
c. Indefinite duration
d. Transferable with or without consideration
b. Free of encumbrances
The transfer of a fee simple estate does not have to be free of encumbrances to be a fee simple estate.
A grantor of a life estate has a:
a. Remainder interest
b. Leasehold interest
c. Reversionary interest
d. Fee simple
c. Reversionary interest
The only interest that a grantor of a life estate could have is a reversionary interest. If a life estate was granted to an individual with the ownership passing to someone other than the grantor (a remainder interest) at the end of the life tenancy, the grantor would have no interest in the property.
A person with an interest in land having the right to impose conditions on its future use has a:
a. Non-freehold interest
b. Fee simple interest
c. Life estate
d. Estate for years
b. Fee simple interest
A fee simple estate is the greatest interest possible and the holder of the fee estate can place restriction on its future use when the owner places use restrictions in the deed when transferring the ownership to another.
A property that is being foreclosed by the trustee for the deed of trust has a valid homestead. What is the status of the foreclosure?
a. Foreclosure will continue as normal
b. Homestead will delay the foreclosure
c. Lender may only obtain the amount in excess of the homestead limit.
d. Homestead will protect the owner’s equity
a. Foreclosure will continue as normal
The deed of trust is a voluntary lien so the homestead exemption does not protect the property from foreclosure.
The Homestead Exemption will protect a person against which of the following?
a. Unforeseen personal judgments
b. Mechanics liens
c. Secured loans
d. Subsequent liens
a. Unforeseen personal judgments
Homestead is the only legal life estate created by statute. What the homestead law really means is that a person’s primary residence or homestead is exempt from attachment, execution and forced sale from creditors. The equity has in the residence is protected up to $150,000.
A Declaration of Homestead may be terminated for all of the following EXCEPT:
a. Death of one spouse
b. Moving out of the property
c. Filing an abandonment of homestead
d. Converting the property to a rental
a. Death of one spouse
The Homestead Exemption would not be terminated by the death of one spouse, as long as the property remained the primary residence for the surviving spouse.
