Chapter 49

Question 1

Real property

Answer 1

comprises land and everything attached to the land

Question 2

Law relating to real property treats land as

Answer 2

extended down to the center of the earth and also includes things that are permanently attached to it

Question 3

airspace rights

Answer 3

the rights to land include the airspace above the land to an indefinite height, subject to the rights of aircraft in flight that do not pose a hazard to persons or property on the land.

Question 4

mineral rights

Answer 4

land also includes rights to minerals, such as oil, coal, or iron ore, except in states where the state retains an interest in certain minerals.

Question 5

water rights

Answer 5

legal ability to use water flowing across or underneath the property. However, these rights are somewhat restricted; an owner cannot deprive landowners downstream of the use of water by diverting it elsewhere.

Question 6

fee simple absolute

Answer 6

most complete estate a person may have; grants exclusive rights to ownership and possession of the land and is what most people refer to when they speak of “buying” a house or piece of land. This interest passes to the heirs when the owner dies.

Question 7

Conditional estate

Answer 7

possess the same interest as the owner for a fee simple absolute, but it is subject to condition. Should a prohibited event occur or a required event fail to occur, the interest will be terminated.

Question 8

Life estate

Answer 8

granted for the lifetime of an individual. On the death of this lifeholder, the property will go to another party designated by the original grantor.

Question 9

future interest

Answer 9

present right to property ownership and possession in the future. Such an interest usually exists in conjunction with a life estate or a conditional estate.

Question 10

leasehold estate

Answer 10

the holder of a leasehold has a possessory but not an ownership interest. This interest is transferred by a contract known as a lease. Both the owner of the property (the lessor, or landlord) and the tenant (the lessee) sign the lease.

Question 11

because real property consists of land and things permanently attached to it, it follows logically that when the things are removed from real property

Answer 11

they become personal property

Question 12

Easement

Answer 12

irrevocable right to use part of another’s land for a specific purpose without taking anything from it

Question 13

profit

Answer 13

the right to go onto someone’s land and take part of the land or a product of it away from the land

Question 14

Easement or profit is appurtenant

Answer 14

when it runs with the land adjacent to the property on which it exists

Question 15

Easements or profits are in gross

Answer 15

are not dependent on owning property adjacent to the land on which the nonpossessory interest exists.

Question 16

if the land that benefits from the easement or profit is sold

Answer 16

the nonposessory interest goes with the property

Question 17

easement by necessity

Answer 17

easement by implication is said to exist when a piece of property is divided into two parcels in such a way that an already existing obvious and continuous use of the first parcel is necessary for the reasonable enjoyment of the second parcel

Question 18

freehold estates can be held to provide

Answer 18

absolute total ownership lasting for either the lifetime of the holder or forever

Question 19

future interest

Answer 19

remaindermen

Question 20

co-ownership

Answer 20

when more than one person possess the same property rights, co-ownership exists

Question 21

tenancy in common

Answer 21

• most common
• each owner has a right to
• – sell their interest without consent of others
• – own an unequal share of property
• – have creditor attach their interest
• decendents share is passed to heirs at death

Question 22

joint tenancy

Answer 22

• like tenancy in common, except shares are owned equally

- upon death, property equally divided among other joint tenants

Question 23

tenancy in entirety

Answer 23

• coownership by married couple
• can’t sell share without consent of others
• credits of one owner cannot attach the property
• if one owner dies, surviving spouse has full ownership

Question 24

deed

Answer 24

Instrument or document that conveys an interest in real property between properties

Question 25

unlike a contract

Answer 25

no consideration is required to effect a transfer of real property.

Question 26

general warranty feed

Answer 26

most commonly used deed is the general warranty deed which contains certain warranties or promises by the grantor.

Question 27

quitclaim deed

Answer 27

carries no warranties; the grantor simply conveys whatever interests they hold

Question 28

negotiation of sales contract

Answer 28

• broker can’t act for both buyer and seller unless both parties consent
• earnest money: showing seriousness of offer
• Failure to accept within the time limit in the offer is considered a rejection
• contact generally requires that the buyer put a deposit in an escrow account maintained by a neutral third party until all the preliminary steps to the transfer can be made.

Question 29

seller’s duty to disclose

Answer 29

most states require that the seller warn the buyer about any known defects that (1) reasonable buyer could not discover through a thorough examination of the property (2) materially affect the property’s value

if the seller fails to disclose and the buyer discovers the defect only after the sales transaction has been completed, the buyer can sue the seller for fraid or misrepresentation

Question 30

caveat emptor

Answer 30

let the buyer beware

Question 31

marketable title

Answer 31

a title free of defects

Question 32

title examination

Answer 32

a title search may not reveal every single defect in the title, however, so most buyers purchase title insurance or have the seller purchase it for them. Title insurance protects the buyer form losses resulting from a defect in the title

Question 33

mortgage

Answer 33

in exchange for a loan, the lender receives a security interest in the property

Question 34

financing

Answer 34

while the buyer makes payments to the mortgagor or lender, the mortgagor or a third party holds title to the property and can sell if the payments are not made

Question 35

closing

Answer 35

closing is the meeting at which the transfer of title actually takes place and delivery and acceptance occur

Question 36

adverse possession

Answer 36

person takes ownership of real property by treating it as his/her own without protest or permission from the owner.

the adverse possession must be actual (the person lives on or uses the land as an owner would), open (not secretive) and notorious (without the owner’s permission)

Question 37

condemnation

Answer 37

legal process by which a transfer of property is made against the protest of the property owner

Question 38

eminent domain

Answer 38

real property can be taken from an owner by action of government or other public authority for the benefit of the public

Question 39

when private property is taken by eminent domain..

Answer 39

compensation is made at the fair market value of the property.

Question 40

government has constitutional right to take private property for the use of the public upon…

Answer 40

providing the owner fair compensation. this right is sometimes exercised on behalf of a private company operating to benefit the public.

Question 41

restrictive covenants

Answer 41

promises to use or not use their land in particular ways.

most common use of RD is in urban developments sometimes called planned communities.

Question 42

zoning

Answer 42

allows for the orderly growth and development of a community and protects the health, safety and welfare of its citizens. It commonly restricts the type of use to which land may be put.

Question 43

variance

Answer 43

an owner who wishes to use land in a manner prohibited by zoning laws may seek permissino, called a variance, from zoning board/planning commission.

Question 44

zoning is intended to regulate property….

Answer 44

not take it.