Chapter 3

Question 1

A deceased homeowner left the family home to the deceased’s second spouse with the provision that when the surviving spouse dies, the home goes to a child by the deceased’s first spouse. The second spouse owns a bundle of rights but does not own the right to

a. will the property.
b. sell the property.
c. lease the property.
d. decorate the property.

Answer 1

a. will the property.

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The second spouse owns a life estate, and has the entire bundle of rights except the right to will the property.

Question 2

A freehold estate lasts for

Answer 2

c. an indeterminable time.

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c. A free hold estate lasts for an indeterminable length of time, such as for a lifetime or forever.

Question 3

A property owner conveyed a one-acre parcel of land to a preschool. The deed provided that the property was to be used only as a playground; the former owner reserved a right of reentry. What kind of estate has been granted?

a. Leasehold
b. Fee simple subject to a condition subsequent
c. Fee simple absolute
d. Curtesy

Answer 3

b. Fee simple subject to a condition subsequent

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The owner has granted a fee simple subject to a condition subsequent. If, at some point in the future, the land is not used as a playground, the former owner or the former owner’s heirs may exercise the right of re-entry by retaking physical possession of the land.

Question 4

A notice is filed in the public record of pending litigation affecting the title to a property. This notice reflects which of these?

a. Fee simple determinable
b. Police power
c. An encroachment
d. A lis pendens

Answer 4

d. A lis pendens

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d. A lis pendens is a notice filed in the public record affecting the title to property or a claimed ownership interest in it.

Question 5

A property owner gave land to a school “so long as the land is used for only academic and recreational purposes.” The ownership interest granted here is called

a. an easement by prescription.
b. an encumbrance.
c. a bundle of rights.
d. a fee simple determinable.

Answer 5

d. a fee simple determinable.
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d. The terms “so long as”, “while”, and “during” generally indicate creation of a fee simple determinable interest. The school obtains the full bundle of rights gained by a property owner, but one of the “sticks” in that bundle has a special feature.

Question 6

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of

a. escheat.
b. reverter.
c. eminent domain.
d. defeasance.

Answer 6

c. eminent domain.

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c. The right of the state to acquire private property for public use is eminent domain. The court action is called condemnation. Property escheats back to the state when it becomes ownerless; that is, the owner dies leaving no heirs and no will

Question 7

The owner of two acres of land sold one acre and reserved an easement appurtenant for entrance and exit over that acre to reach the public road. The buyer’s land is

a. capable of being cleared of the easement if the buyer sells to a third party.
b. the servient tenement.
c. the dominant tenement.
d. subject to an easement in gross

Answer 7

b. the servient tenement.

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b. The seller’s remaining parcel is the dominant tenement and benefits from the easement. The easement runs over the buyer’s property, the servient tenement.

Question 8

A large undeveloped parcel of land borders a road on the lower edge. The owner sells the lower portion of the property and the buyer builds a home on it. Several years later, the owner sells the upper-portion of the property to a different buyer. The second buyer’s property does not border any road. For that buyer to gain access to the road, the buyer must claim an easement

a. by necessity.
b. in gross.
c. by prescription.
d. by restriction.

Answer 8

a. by necessity.

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An easement by necessity could be created by court order to permit legal access to the second buyer’s property.

Question 9

If the dominant estate merges with the servient estate, which of these is TRUE?

a. The easement remains in effect for the entire parcel.
b. The easement is suspended but cannot be terminated.
c. The easement is terminated.
d. The new owner must bring a suit seeking severance of the easement from the combined properties.

Answer 9

c. The easement is terminated.

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c. If the owner of the dominant tenement also becomes owner of the servient tenement (or vice versa), the easement terminates. Because the same person owns both properties, there is no need for the easement to exist.

Question 10

The homestead exemption in a state is $20,000. Four years ago, a buyer purchased a home for $158,000 and then experienced hard times. At a court-ordered sale, the property is purchased for $160,000. If the homeowner has an outstanding mortgage balance of $135,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption?

a. $640
b. $2,140
c. $20,000
d. $26,500

Answer 10

c. $20,000

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c. The homestead exemption is $20,000. So, when the property is sold for $160,000, the mortgage of $135,000 is paid and $20,000 is reserved, leaving $5,000 for the credit card debt.

Question 11

In some states, a husband cannot sell property unless the wife also signs the deed. The wife’s interest is called

a. personal property rights.
b. homestead rights.
c. curtesy rights.
d. dower rights.

Answer 11

d. dower rights

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d. A wife’s interest in her deceased husband’s property is dower, a husband’s interest is curtesy, and protection for some part of the family home is called homestead rights.

Question 12

The state’s authority to enact legislation to protect the public is passed through to municipalities and counties through

a. police power.
b. enabling acts.
c. licensing laws.
d. processing papers.

Answer 12

b. enabling acts.

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b. The state passes police power to counties and municipalities through enabling acts. Licensing laws are an example of police power.

Question 13

The state requires enough land to build a four-lane highway. For the state to acquire the needed land, the state must do all of these EXCEPT

a. demonstrate that it is for the public good.
b. pay a fair and just compensation to the owner.
c. allow the property owner the right to appeal any decision.
d. reimburse the property owner for the amount that the property owner paid for the land.

Answer 13

d. reimburse the property owner for the amount that the property owner paid for the land.

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d. To acquire private property through eminent domain, the state must prove that the purchase is for public good, pay a fair price, and allow the property owner full rights to appeal. The price may or may not reflect what the owner had actually paid for the property.

Question 14

A patient died in a nursing home. The deceased left no heirs and had not written a will. What happens to the deceased’s $250,000 estate?
5/5
a. It escheats to the state or county.

b. The nursing home gets to keep it.
c. It will be split between the nursing home and the county.
d. It can be paid over to the deceased’s church.

Answer 14

a. It escheats to the state or county.
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Because the deceased left no will and there are no heirs, the $250,000 is essentially ownerless. It reverts to the state or county.

Question 15

Which of these is defined as a claim, charge, or liability that attaches to real estate?

a. Lien
b. Easement
c. Deed restriction
d. Encumbrance

Answer 15

d. Encumbrance

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d. An encumbrance is a claim, charge, or liability that attaches to real estate, such as liens, easements, and deed restrictions.

Question 16

Which of these must exist for an appurtenant easement to exist?

a. Two adjacent parcels, different owners
b. Two adjacent parcels, one owner
c. Landlocked property that requires passage to the street
d. Long-time unauthorized usage

Answer 16

a. Two adjacent parcels, different owners

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An easement appurtenant must have two owners and two parcels of land. A landlocked parcel would require an easement by necessity; long-time unauthorized usage would lead to an easement by prescription.

Question 17

What are deed restrictions?

a. Public land restrictions
b. Illegal land restrictions
c. Private agreements affecting the use of the land
d. Informal agreements between neighbors

Answer 17

c. Private agreements affecting the use of the land
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c. Deed restrictions are private agreements written into the deed and are privately enforced. Examples of public restrictions include zoning and building codes.

Question 18

The electric company has the right to extend its wires over 50 parcels of land. What right does the electric company have?

a. Appurtenant easement
b. Easement by necessity
c. Easement by prescription
d. Easement in gross

Answer 18

d. Easement in gross

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d. Commercial easements such as this are called easements in gross. There are only servient tenements; there is no dominant tenement because there is no associated land ownership.

Question 19

For as long as anyone can remember, neighbors have used a footpath over a waterfront parcel to get to the river. Recently, the current owner of the waterfront property erected a fence across the path, blocking access. Which of these easements might the neighbors claim, which would require the property owner to remove the fence?

a. Easement by necessity
b. Easement by prescription
c. Easement in gross
d. Appurtenant easement

Answer 19

b. Easement by prescription

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b. Long-time unauthorized usage may create legal rights leading to an easement by prescription. An easement in gross is a personal right, often used by utility companies. An easement by necessity could be imposed by court order to provide access to a landlocked property.

Question 20

The holder of a life estate is called

a. an encumbrance.
b. a life tenant.
c. a remainderman.
d. a successor.

Answer 20

b. a life tenant.

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b. A life tenant is not a renter like a tenant associated with a lease. A life tenant is entitled to the rights of ownership and can benefit from both possession and ordinary use, just as if the individual were a fee simple owner.