Chapter 4 Property Interests

Question 1

Which of the following is a freehold estate?

a. estate for years
b. periodic tenancy
c. tenancy at sufferance
d. life estate

Answer 1

d. life estate

Question 2

The right of one party to lawfully use the land of another for a beneficial purpose is called a (n):

a. title
b. freehold estate
c. easement
d. assignment

Answer 2

c. easement

Question 3

The characteristics of a license include all of the following EXCEPT it:

a. is revocable at any time
b. is a personal privilege
c. cannot be conveyed
d. creates an estate in land

Answer 3

d. creates an estate in land

Question 4

Which of the following is true about fee simple estates?

a. they confer the minimum legal ownership
b. they are not alienable
c. they provide the most legal rights and powers
d. they may not be sold or given away in whole or part during the owner’s lifetime

Answer 4

c. they provide the most legal rights and powers

Question 5

Define the concept of ownership.

Answer 5

The exclusive rights to use, possess, and dispose of the property.

Question 6

What are some of the rights of property ownership?

Answer 6

possess the property
use the property
sell or give away the property
pledge the property as collateral
destroy the property

Question 7

What is an example of an easement implied by necessity?

Answer 7

When a parcel of land would be cut off from any access to a public way.

Question 8

A recorded easement that allows the holder of the easement to go onto the grantor’s land for a specific purpose and to make use of the land in accordance with the easement is referred to as a(n):

a. negative easement
b. easement by necessity
c. easement by prescription
d. affirmative easement

Answer 8

d. affirmative easement

Question 9

Paul purchases goods from Tom. Paul pays for the goods with a bad check and takes possession of them before Tom discovers the fraud. Paul then sells the good to Bill, who takes possession of them. Who has legal right too the goods?

a. Paul
b. Tom.
c. Bill
d. no one until the courts decide

Answer 9

c. Bill

Question 10

Which of the following is NOT a right of property ownership?

a. possession
b. use
c. destruction
d. taxation

Answer 10

d. taxation

Question 11

A condominium complex associated with a multi-use development has a written covenant restricting the use of awnings. How can this covenant be terminated?

a. it is drafted to ensure ongoing renewal
b. the condominium owners and management have allowed general and widespread violations of the restrictions to occur
c. the covenant agreement does not allow for modification
d. the covenant is converted to an easement.

Answer 11

b. the condominium owners and management have allowed general and widespread violations of the restrictions to occur

Question 12

What is the major difference between the transfer of personal property and the transfer of real property?

Answer 12

transfers of real property are publicly recorded and transfers of personal property are not.

Question 13

Which of the following is the key difference between easement appurtenant and easement in gross?

a. how they are transferred
b. how they are appealed
c. what types of properties they apply to
d. whether or not it constitutes a lien

Answer 13

a. how they are transferred

Question 14

An easement implied by necessity involves the presumption that a grantor would not convey a portion of his or her property without retaining _______ to allow access to the property that he or she keeps.

a. an encroachment
b. an easement
c. a zoning privilege
d. a deed

Answer 14

b. an easement

Question 15

The McAllister office building in a downtown urban area offers valet parking services to its visitors. The PAC Parking Services contracted for this purpose requires visitors leave their keys with them, thus creating a bailment relationship. As the bailee, PAC Parking Service is then legally obligated to ______ care for the bailed property and redeliver it to the bailor.

a. always
b. sometimes
c. never
d. offer reasonable

Answer 15

a. always

Question 16

What is a bona fide purchaser?

Answer 16

A person who buys property for value and without reason to doubt that the seller has good title

Question 17

What happens to an easement appurtenant when the dominant estate is sold?

Answer 17

It is automatically transferred when either the dominant or servant property is sold.

Question 18

A thief steal a piece of equipment and sell it to another person who has no knowledge that it is stolen. legally, who has the true title to the property?

a. the thief
b. the original owner
c. the innocent purchaser
d. the two owners, who must split the value

Answer 18

b. the original owner

Question 19

Being a bona fide purchaser of property at fair market value means that:

a. the seller has no reason to doubt you as a purchaser
b. you, as a buyer, have established credentials concerning your ability to purchase
c. you, as a buyer, have no reason to doubt that the seller is in possession of the property
d. you, as a buyer, have no reason to doubt that the seller has good title

Answer 19

d. you, as a buyer, have no reason to doubt that the seller has good title

Question 20

Define the concept of possession.

Answer 20

the exercise of control over property whether or not the possessor is owner of the property

Question 21

Premises liability is usually attributed to:

a. the person in possession on the property
b. only the owner, regardless of who possesses the property
c. only the person holding title to the property
d. only the person holding the bill of sale to the facility

Answer 21

a. the person in possession on the property

Question 22

What are the four classifications of nonfreehold estates? (leases)

Answer 22

estate for years-has a definite beginning and end

periodic tenancy-continues for successive periods of time unless either party terminates it by proper notice

tenancy at will-can be terminated by either landlord or tenant and has no designated term

tenancy at sufferance-lease expires and tenant wrongfully continues to possess land

Question 23

What are the duties of bailees?

Answer 23

A bailee is always legally obligated to care for the bailed property and to redeliver it to the bailor.

Question 24

An article of personal property that is permanently affixed to real property so that it is commonly considered part of the real property is known as a(n):

a. transferable attachment
b. fixture
c. addendum
d. facet

Answer 24

b. fixture

Question 25

Define the concept of title.

Answer 25

has several meanings but most often means legal ownership of property.

Question 26

Which type of estate provides the most legal rights and powers?

Answer 26

A fee simple estate

Question 27

What are fixtures and trade fixtures?

Answer 27

fixture- an article of personal property that is permanently affixed to real property so that it is commonly considered part of the real property

trade fixtures-personal property affixed to the premises by a tenant specifically for use in that tenant’s particular trade or business.