Ch 7 Quiz Definitions

Question 1

True or False? When a property is leased, two separate estates are created.

Answer 1

TRUE. Partial Interest. When a property is leased, it creates two separate estates or interests. One belongs to the owner of the property and the other belongs to the tenant.

Question 2

A leasehold interest may have value when

Answer 2

the contract rent is less than market rent

Question 3

A fee simple estate is NOT reserved

Answer 3

for married couples only

Question 4

Joint tenancy has the right of survivorship. What does this mean?

Answer 4

when a joint tenant dies, his/her share goes to the surviving joint tenants.

Question 5

“The right to perform a specific action on a property owned by another” is the definition of

Answer 5

affirmative easement

Question 6

“An easement preventing a property owner from certain, otherwise permitted, uses of his or her land” is the definition of

Answer 6

negative easement

Question 7

An easement that has, by definition, both dominant and servient tenements is

Answer 7

an easement appurtenant

Question 8

A remainderman is found in which type of estate?

Answer 8

life interest

Question 9

What form of concurrent ownership allows a person to sell off their interest without the approval or knowledge of the other owners?

Answer 9

tenants in common

Question 10

“The right to use another’s land for a stated purpose “ is the definition of

Answer 10

easement

Question 11

A property has a market value of $300,000. The owner has a first mortgage of $200,000 and a second mortgage of $40,000. What is the market value of the fee simple estate?

Answer 11

300000

Question 12

Which form of ownership does NOT have the right of survivorship?

Answer 12

tenancy in common

Question 13

“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of

Answer 13

fee simple

Question 14

Which of the following is NOT a partial estate?

Answer 14

fee simple

Question 15

A drainage easement is an example of a(n)

Answer 15

negative easement. Easements II. That would be a negative easement as it would prevent the owner from otherwise using that portion of his property.

Question 16

Bob grants a life interest in his property to his mother, Mary. As long as Mary is alive, Bob’s interest in the property is referred to as a (an)

Answer 16

estate in remainder

During the life of the holder of the life interest, the interest is called an Estate in Remainder.

Question 17

When appraising a property that is subject to a life interest, an appraiser is MOST likely to use

Answer 17

a discount based on a mortality table

Question 18

A leasehold interest belongs to the

Answer 18

tenant

Question 19

True or False? Fee simple estate is not limited by the governmental powers of taxation, eminent domain, police power, and escheat.

Answer 19

FALSE

Question 20

“A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas” is the definition of a

Answer 20

condominium

Question 21

A property is owned as tenancy in severalty. How many owners are there?

Answer 21

1. Individual ownership. In spite of the name, which seems to imply several owners, tenancy in severalty means only one owner.

Question 22

Syndications are

Answer 22

either private or public partnerships

Question 23

Tenancy in severalty involves ____________ owner(s).

Answer 23

only one

Question 24

A limited partnership has

Answer 24

both general and limited partners

Question 25

What is a corporation or trust that functions like a mutual fund for real estate, by combining the capital of many investors to acquire real estate?

Answer 25

REIT

Question 26

Martha wants to purchase a property with her three sons. She wants a 70% ownership interest, and her sons will each have a 10% interest. What form of ownership will best suit her needs?

Answer 26

tenancy in common

Question 27

A leasehold interest belongs to the

Answer 27

tenant

Question 28

The most desirable form of timesharing is called ___________ timesharing.

Answer 28

fee

Question 29

Which is the fullest and most complete type of estate?

Answer 29

fee simple

Question 30

A facade easement is a type of________________ easement.

Answer 30

historic preservation

Question 31

“A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas” is the definition of a

Answer 31

condominium

Question 32

Which type of ownership can only be held by a married couple?

Answer 32

tenancy by the entirety

Question 33

“The right to perform a specific action on a property owned by another” is the definition of

Answer 33

affirmative easement

Question 34

“Type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development; usually includes common area and common area maintenance obligations in the form of owners association dues” is the definition of

Answer 34

PUD

Question 35

“An estate held by two or more persons, each of whom has an undivided interest” is the definition of

Answer 35

tenancy in common

Question 36

What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?

Answer 36

cooperative

Question 37

“Divided or undivided rights in real estate that represent less than the whole” is the definition of

Answer 37

partial interest