Ch 2 Estates in Real Property and Forms of Ownership

Question 1

In California, condominium projects are generally regulated as:

Answer 1

subdivisions.

Question 2

Which one of the following is NOT a characteristic of a fee simple estate?

Answer 2

It is free of all encumbrances.

Question 3

A type of partnership created for a single transaction or series of transactions is known as a:

Answer 3

Joint Venture.

Question 4

Reversion, as applied to life estates, means the property:

Answer 4

returns to the grantor.

Question 5

A deed in which the grantor states, “To Paul Grey for his life, and then to Sean Casey” creates what type of interest for Sean Casey?

Answer 5

an estate in remainder

Question 6

The type of concurrent ownership that requires unity of interest, unity of title, unity of time, and unity of possession that includes the right of survivorship is known as:

Answer 6

joint tenancy.

Question 7

Which statement about a corporation is FALSE?

Answer 7

Shareholders in a corporation are personally liable for corporate debt.

Question 8

A leasehold estate for a fixed term is an:

Answer 8

estate for years.

Question 9

The most basic form of concurrent ownership for unmarried persons recognized in California is:

Answer 9

tenancy in common.

Question 10

Which following statement(s) are true regarding cooperatives?

Answer 10

A corporation owns the whole project and the persons who occupy the individual units are shareholders with a tenancy right to a particular unit under a proprietary lease.

Units are individually owned and a corporation owns the common elements. Each unit owner purchases shares of stock in the corporation for the use and enjoyment of all common elements

Question 11

All of the following statements are true regarding condominiums, EXCEPT:

Answer 11

the seller’s interest in common elements will be sold separately from the unit.

Question 12

When an apartment building is converted to a condominium, which of the following is TRUE?

Answer 12

Each apartment tenant must be given 180 days notice of the conversion.

Question 13

Condominium ownership means that an owner:

Answer 13

owns the space within his/her unit and owns the surrounding common areas as a tenant in common with the other unit owners.

Question 14

An estate that can be voluntarily transferred by a will is a:

Answer 14

fee simple estate.

Question 15

An ownership interest in real property that has an indefinite (indeterminable) duration is known as a:

Answer 15

fee simple absolute.

Question 16

Which of the following statements concerning a life estate is false?

Answer 16

The duration of a life estate is always the governing lifetime of the life tenant.

Question 17

The highest and most complete form of ownership estate in land is called:

Answer 17

fee simple absolute estate.

Question 18

In California, unless otherwise provided for, married couples will take title to real property as:

Answer 18

community property

Question 19

A Real Estate Investment Trust (REIT):

Answer 19

is an unincorporated syndicate to finance large real estate projects.

avoids double taxation as long as at least 90% of its income is distributed to the shareholders who pay tax on the income.

involves one or more trustees who manage property for others, who are called beneficiaries.

Question 20

Ownership in severalty occurs when:

Answer 20

the property is owned by only one person.