Chapter 2

Question 1

Community Property

Answer 1

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation, and testamentary disposition of community property.

Question 2

Joint Tenancy:

Answer 2

Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

Question 3

Partition

Answer 3

A division of real or personal property or the proceeds therefrom among co-owners.

Question 4

Tenancy by the Entireties

Answer 4

Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon the death of one spouse, it becomes the property of the survivor.

Question 5

Tenancy in Common:

Answer 5

Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interest need not be equal.

Question 6

Tenancy in severalty

Answer 6

Sounds more like “several”, but this form of ownership is by one person or a corporation.
Sole ownership of a freehold estate; passes to heirs

Question 7

Tenancy in common:

Answer 7

Is equal or unequal undivided ownership between two or more people.
If an owner dies, the deceased person’s share is conveyed to the heirs, not the other owners.
Any ownership share possible.

Question 8

Joint tenancy:

Answer 8

Ownership by two or more with rights of survivorship.
Upon death, the shares go to surviving co-owners.
Joint tenancy overrides a will.
If one owner of a joint tenancy dies, that owner’s interest reverts to the other owners.
The four unities that must exist for this type of ownership to exist are:

Question 9

Joint tenancy

Answer 9

Remember: “PITT”
Possession
All owners hold an undivided interest.
Interest 
Each owner has the same interest.
Time
All owners receive their interest at the same time.
Title
All owners acquire their interest with the same deed

Question 10

Tenancy by the entirety:

Answer 10

Ownership that’s available only to married couples
Property may not be sold without the agreement of both parties
Has rights of survivorship. If one spouse dies, their interest reverts to the other spouse (This is also true of joint tenancy).
Husband and wife own equal undivided interest
Now applies to same-sex couples in some states

Question 11

TENANCY IN COMMON

Answer 11

TITLE PASSES AT PROBATE
UNEQUAL INTEREST
ESTATE OF INHERITANCE
WILLABLE
MOST COMMON

Question 12

JOINT TENANCY

Answer 12

AVOIDS PROBATE - TITLE PASSES AT DEATH
UNITY OF TIME, TITLE, INTEREST, POSSESSION
LAST MAN STANDING
RIGHT OF SURVIVORSHIP
POOR MAN’S

Question 13

NOTE:

Answer 13

the word “tenants” can indicate owners, as in joint tenants and tenants in common. Some special types of ownership include timeshares, condominiums, and cooperatives.

Question 14

Condominium

Answer 14

An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan.

Question 15

Cooperative or “Co-ops

Answer 15

An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building.

Question 16

Mobile Home

Answer 16

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

Question 17

Modular

Answer 17

A system for the construction of dwellings and other improvements to real property through the on-site assembly of component parts (modules) that have been mass produced away from the building site.

Question 18

Time-Share

Answer 18

A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.

Question 19

Freehold Estate

Answer 19

Fee Simple Absolute
ownership with the greatest bundle of rights
best type of ownership
The owner has all the available rights to the property and can always pass it to his or her heirs.

Fee simple defeasible reverts to the previous owner.
Determinable is an estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor
Condition subsequent an estate that terminates only upon the exercise of the power of termination, or right of reentry, for the violation of a particular condition.
Life estate
Bundle of rights

Question 20

freehold estate

Answer 20

is ownership. All the legal rights that attach to the ownership of real property including but not limited to the right to sell, lease, encumber, use, enjoy, exclude, will to heirs, etc., are called the

Question 21

Bundle of Rights

Answer 21

is all of the legal rights incident to ownership of property including rights of use, possession, encumbering, and disposition.

Question 22

Bundle of Rights

Answer 22

Real Property = Real Estate + the Bundle of Rights

Question 23

Fee simple defeasible also called a fee simple defeasible estate

Answer 23

this fee simple estate has some limitations on it. The three types of qualified fee estates are:

Question 24

Fee simple condition precedent:

Answer 24

In this case, ownership, commonly referred to as title, won’t pass from one person to another until a particular condition is met.

Question 25

Fee simple condition subsequent

Answer 25

This form of an estate is a situation in which the grantor (seller) can reclaim property if some condition isn’t met after title has passed to the next owner. The right to reclaim the property is known as the right of reentry.

Question 26

Fee simple determinable:

Answer 26

In this situation, title remains with the new owner as long as any conditions of ownership are being met.

Question 27

life estate

Answer 27

is an estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party (remainderman).

Question 28

remainderman

Answer 28

The person who gets the property after the life estate is ended is the remainderman. If the life tenant leases the property and then dies, the lease expires.

Question 29

Life estate with reversion

Answer 29

is a life estate is set up so that at the end of the life estate the property goes back to the original owner.

Question 30

leasehold estate

Answer 30

the landlord holds the title to the property, while the tenant has the right to use the property. Leasehold estates may vary in the way the agreement is created, the type of property being leased and the length of time the leasehold estate exists.

Question 31

estate for years

Answer 31

is a lease with a specific starting and ending date. This lease survives death and/or the sale of the property. No notice is required to terminate.

Question 32

periodic tenancy

Answer 32

s a tenancy that continues for successive periods until the tenant gives the landlord notification that they want to end the tenancy. A month-to-month lease is a periodic tenancy. A 30 days’ notice is typically required.

Question 33

estate at will

Answer 33

or tenancy at will is a lease that can be terminated by either party at will without notice.

Question 34

tenancy at sufferance

Answer 34

is an agreement in which a property renter is legally permitted to live on a property after a lease term has expired but before the landlord demands the tenant vacate the property. If a tenancy at sufferance occurs, the original lease conditions must be met, including the payment of any rents, otherwise, the tenant can be evicted.

Question 35

Estate at Sufferance

Answer 35

An estate arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term and under the condition of the tenant’s previous holding. Also called a tenancy at sufferance.

Question 36

Estate at Will:

Answer 36

The occupation of lands and tenements by a tenant for an indefinite period, terminable by one or both parties.

Question 37

Estate For Years

Answer 37

An interest in lands by virtue of a contract of a contract for the possession of them for a definite and limited period of time that may be for a year or less. A lease may be said to be an estate for years

Question 38

Leasehold Estate

Answer 38

A tenant’s right to occupy real estate during the term of the lease. This is a personal property interest.

Question 39

Lessee

Answer 39

One who contracts to rent, occupy, and use property under a lease agreement; a tenant.

Question 40

Lessor:

Answer 40

An owner who enters into a lease agreement with a tenant; a landlord.

Question 41

Periodic Estate

Answer 41

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called an estate from period to period.

Question 42

Gross Lease

Answer 42

the landlord pays all the expenses of the property. The tenant pays only rent

Question 43

Percentage Lease

Answer 43

Typically used for a shopping center, a lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. Graduated Lease – a lease with scheduled rent increases often based on expected business growth.

Question 44

Lease-purchase agreement

Answer 44

also called a lease with an option to buy – gives a tenant the right to purchase at a future date. The price is set when the agreement is negotiated.

Question 45

Ground Lease –

Answer 45

the tenant is usually making a long-term commitment, up to 99 years. This lease is more often for industrial or commercial land use. The tenant will build on the leased property.

Question 46

Oil and Gas Lease –

Answer 46

this lease gives the tenant the right to extract oil and gas from a specific property.

Question 47

Net Lease

Answer 47

the tenant pays rent plus some of the expenses of the property.

Question 48

Covenant of quiet enjoyment

Answer 48

a landlord is usually prohibited from entering leased property unless there is a need for maintenance, inspections, or emergency response

Question 49

Right of First Refusal -

Answer 49

the tenant has the right to match or better any offer before the property will be sold to someone else. Subletting is the transfer of some or all of the rights and/or leased space under a lease to another, with liability remaining with the original tenant.

Question 50

assignment

Answer 50

is the transfer of all rights and liabilities to a new tenant under an existing lease.

Question 51

Forcible entry and detainer

Answer 51

or an action of forcible detainer, is the legal term for eviction. This process would be used by a landlord.

Question 52

Contract rent

Answer 52

The rental income as stipulated by the parties in a contract.

Question 53

Economic rent

Answer 53

The rent the property could currently command on the open market. Expiration - When the lease comes to the end of the negotiated term or lease period. Termination - When the time period on a lease ends or is cut short.

Question 54

Mutual rescission

Answer 54

When a lease is terminated by agreement of all of the parties.

Question 55

Constructive eviction

Answer 55

Occurs when a landlord is aware of a property condition and allows deterioration to the point that the building is uninhabitable and the tenants are forced to leave

Question 56

Sale-leaseback

Answer 56

A property owner sells a property to an investor or lender and then leases it back. Therefore, the seller occupies the property after closing.

Question 57

lien

Answer 57

s a charge against property as security for a debt. The lien is an encumbrance – a limit on your rights. It is also, usually, a cloud on the title. This means title cannot be conveyed or transferred to another until the lien is removed. The legal method of removing an encumbrance is to release it or get a release.

Question 58

voluntary lien

Answer 58

is created by the lienee’s or borrower’s actions, like taking out a mortgage or home improvement loan. Filing or recording the mortgage creates a lien. A mortgage is not effective or enforceable until it is recorded. When the mortgage is recorded, if it is the first recorded claim, it will be the first priority lien.

Question 59

involuntary lien

Answer 59

is created by law and can be statutory or equitable (common law). Examples of statutory liens include federal tax liens, ad valorem (according to value) tax liens, judgment liens, and mechanics and materialmens’ (M & M) liens.

Question 60

Equitable liens

Answer 60

come from common law and include seller (vendor) or buyer (vendee) liens.

Question 61

Liens

Answer 61

can be specific or general. A specific lien attaches to one or more specific or named properties (Example: a mortgage). A general lien attaches to all the debtor’s property, not exempt from forced sale (Example: a judgment or IRS lien). A recording is required for a judgment to become a lien. If a party wins a judgment and is unable to collect, that party can secure a writ of execution from the courts to enforce payment of the lien.

Question 62

Property taxes are the highest priority lien

Answer 62

nd are an automatic unrecorded lien that will always be paid first in the event of foreclosure. This also includes any special assessments or special taxes above and beyond the general real estate tax. All other liens have priority determined by the date of recording, as the first recorded lien is the first priority lien. Liens usually follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens.

Question 63

Accession

Answer 63

gives property owners the right to everything produced by their land.

Question 64

Accession

Answer 64

is the right of an owner to an increase in his property by natural means (such as a riparian owner's right to an abandoned river bed, rights of alluvion and reliction, etc.) or artificially, by improvements.

Question 65

Reliction

Answer 65

is the gradual and permanent recession of water that results in dry land.

Question 66

The state has the right to refuse to grant water rights.

Answer 66

One reason for this would be the possibility of scarcity or shortage of water.

Question 67

non-navigable

Answer 67

(not able to be navigated on by boats) waterfront property, landowners may own to the middle of a body of water.

Question 68

navigable

Answer 68

(able to be navigated on by boats) waterfront property, landowners own to the vegetation line. The state owns all navigable water. Generally, all water in rivers, creeks, or streams belongs to the state.

Question 69

Prior Appropriation

Answer 69

is a theory of water law based on the idea that first in time is first in right. The first landowner to claim water rights has the exclusive right to take all the water for specific beneficial uses.

Question 70

riparian and littoral

Answer 70

refer to water rights.

Question 71

Air Rights

Answer 71

The rights in real property to the reasonable use of the air space above the surface of the land.

Question 72

Land

Answer 72

The materials of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

Question 73

Littoral:

Answer 73

Concerning the shore of lakes and oceans, as opposed to rivers and streams, for which the word riparian is used.

Question 74

Mineral Rights:

Answer 74

A landowner’s right to receive a portion of the profits of any minerals that are extracted from the land.

Question 75

Real Estate:

Answer 75

Land plus anything permanently attached to land.

Question 76

Real Property:

Answer 76

Land, things affixed to land, appurtenances, plus the bundle of rights.

Question 77

Riparian:

Answer 77

Belonging or relating to the bank of a river or stream. Land within the natural watershed of a river or stream.

Question 78

Water rights (riparian rights or littoral rights)

Answer 78

The right to use water from a river/stream that borders property would be riparian rights. The right to use water from a lake or ocean would be littoral rights.

Question 79

alienation

Answer 79

A change of ownership (transfer of property) of real property is called

Question 80

Voluntary alienation

Answer 80

occurs when an owner transfers title to another. Voluntary alienation usually involves a written document called a conveyance.

Question 81

conveyance

Answer 81

is a document that transfers an interest in real property. Ownership is most often transferred by deed, patent, power of attorney, or will.

Question 82

Involuntary alienation

Answer 82

property taken against one's will) usually happens in court as in foreclosure, bankruptcy, condemnation, escheat, adverse possession, reversion of defeasible fee, partition, or inheritance without a will. Involuntary alienation can also occur from natural causes including accretion and reliction which result in an increase in property size, and erosion and avulsion, which results in a loss of land.

Question 83

Avulsion

Answer 83

is sudden and substantial tearing away of land by water and the deposit of said land as an addition to the land of another owner. The original boundaries apply, and ownership of the land in question remains in the original owner.

Question 84

Accretion

Answer 84

is the gradual addition to the shore or bank of a waterway. The land generally becomes the property of the owner of the shore or bank, except where statutes specify otherwise. Alluvion is material deposited along a shore by accretion.

Question 85

Partition

Answer 85

is a legal proceeding to divide property owned by two or more people. It can also result in the court-ordered sale of property with multiple owners unable to agree on the division, use, or sale of the property.

Question 86

REQUIREMENTS OF A VALID DEED

Answer 86

Grantor (the current owner of the property) and Grantee (person receiving title to the property). The grantor must be legally competent and of legal age. Remember the grantor can be selling the property, exchanging it, or giving it away. Consideration - The deed must contain words that indicate that the grantor is receiving something of value in exchange for the property. Generally, money is being received, and the consideration clause needs to state the amount. Execution - the grantor, must sign the deed. Delivery - title does not pass until the deed is delivered and accepted. Delivery can be into escrow. Legal description - the wording that’s designed to leave no doubt about the exact boundaries of the property being conveyed.

Question 87

Bargain and Sale Deed:

Answer 87

A written instrument used to transfer all of the right, title, and interest of the grantor in and to a parcel of real property to the grantee. A bargain and sale deed does not include any warranties (promises), but ownership of the property by the grantor is implied by particular granting clause language. ,”

Question 88

Deed:

Answer 88

A written instrument which, when properly executed and delivered, conveys title to real property from one person (grantor) to another (grantee).

Question 89

Grant Deed

Answer 89

A limited warranty deed, using the word “grant”, that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor.

Question 90

Grantee

Answer 90

A person to whom a grant is made.

Question 91

Grantor:

Answer 91

: A person who transfers his or her interest in property to another by a grant. Quitclaim Deed: A deed to relinquish any interest in property that the grantor may have, without any warranty of title or interest.

Question 92

Sheriff's Deed:

Answer 92

A deed given by court order in connection with the sale of a property to satisfy a judgment.

Question 93

Special Warranty Deed

Answer 93

A deed in which the grantor warrants or guarantees the title only against defects arising during the grantor’s ownership of the property and not against defects existing before the time of the grantor’s ownership.

Question 94

Voluntary Alienation

Answer 94

ransfer of title to an asset with the consent of the owner.

Question 95

Warranty Deed

Answer 95

A deed used in many states to convey fee title to real property. Until the widespread use of title insurance, the warranties by the grantor were very important to the grantee. When title insurance is purchased, the warranties become less important as a practical means of recovery by the grantee for defective title.

Question 96

General Warranty Deed -

Answer 96

is a deed used to legally transfer real property from one person to another. This type of deed offers the most protection for the buyer.

Question 97

Special Warranty Deed

Answer 97

A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn't guarantee against any defects in clear title that existed before they took possession of the property.