EXAM 3

Question 1

Which of the following is a characteristic of personal property?

• It is initially movable but later gets fixed onto a piece of land.
• It behaves as realty.
• It is attached to a piece of land.
• It is not attached to a piece of land.

Answer 1

• It is not attached to a piece of land.

Question 2

A gift inter vivos is a gift that meets which of the following requirements?

• A gift made through a last will and testament
• A gift made in contemplation of one’s immediate death
• A gift made after one’s death
• A gift made by a person during his or her lifetime

Answer 2

• A gift made by a person during his or her lifetime

Question 3

Linda had unknowingly or accidentally left her purse somewhere. The purse is considered ________

• intangible
• mislaid
• lost
• abandoned

Answer 3

Lost.

Question 4

If Vijay places his property in the garbage with the intent to discard it, the property is considered ________

• lost
• mislaid
• abandoned
• gifted

Answer 4

• abandoned

Question 5

Which of the following is not an element necessary for a valid gift?

• Actual or constructive delivery of the gift
• Intent to transfer ownership of the gift
• A willingness of the donee to take the gift from the donor
• Value given in exchange for the gift

Answer 5

• Value given in exchange for the gift

Question 6

Which of the following statements is true regarding a causa mortis?

• A gift causa mortis must be tangible in nature.
• A gift causa mortis must be delivered before the death of the donor.
• A gift causa mortis is not accepted before death.
• A gift causa mortis must be intangible in nature.

Answer 6

• A gift causa mortis must be delivered before the death of the donor.

Question 7

Which of the following is an example of realty?

A light switch
A building
Stock
A car

Answer 7

A building

Question 8

Sydney was in her last stages of breast cancer. In contemplation of her death, she gave away her diamond ring to her best friend as a gift. The gift is an example of a(n) ________

donation
gift causa mortis
transfer
inter vivos gift

Answer 8

gift causa mortis

Question 9

A(n) ________ occurs when a utility company erects a pole or runs a line across someone’s property.

• appurtenant easement
• easement in fee simple
• easement in gross
• leasehold easement

Answer 9

Easement in gross

Explanation
Easements or profits in gross are not dependent on owning property adjacent to the land on which the nonpossessory interest exists. The gas company may obtain an easement in gross to run gas lines across someone’s property. By contrast, an easement is appurtenant when it runs with the land adjacent to the property on which it exists. An appurtenant easement can be transferred only in conjunction with the sale of the adjacent land.

Question 10

The government needed to widen a roadway to ease traffic congestion. As a result, the government used ________to take a portion of Ziva’s land for the construction. She did receive compensation from the government for the full market value of her land that was taken.

condemnation
a mortgage
adverse possession
a bailment

Answer 10

condemnation

Question 11

A(n) ________ is the revocable right for someone to use another’s property temporarily without receiving any permanent interest in the property.

easement by limitation
invitation
lease
license

Answer 11

license

Question 12

Which of the following is not a right associated with a landowner’s right to property?

Condemnation rights
Water rights
Airspace rights
Mineral rights

Answer 12

Condemnation rights

Question 13

A ________ is the most complete estate a person may have.

fee complex conditional
fee simple absolute
fee complex absolute
fee simple conditional

Answer 13

fee simple absolute

Question 14

An easement by necessity is created in which of the following instances?

• An easement by necessity is created when one party subdivides his or her land for the purpose of inheritance.
• An easement by necessity is created if a piece of property is divided, and one portion is landlocked as a result.
• An easement by necessity is created when the land is needed for a public utility.
• An easement by necessity is created if the person possessing the easement needs it to meeting zoning requirements.

Answer 14

• An easement by necessity is created if a piece of property is divided, and one portion is landlocked as a result.

Question 15

An easement is the irrevocable right to do which of the following?

Multiple Choice
- The right to possess and use for any purpose some part of another’s land

• The right to use some part of another’s land for a specific purpose without taking anything from it
• The right to bequeath some part of another’s land
• The right to inherit part or all of another’s land

Answer 15

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

Question 16

One who has a leasehold estate has what type of interest in the estate?

A possessory interest
An ownership interest
A future interest
A causa mortis interest

Answer 16

A possessory interest

Explanation:

The holder of a leasehold has a possessory but not an ownership interest. This interest is transferred by a contract known as a lease. A leasehold estate gives the lessee, or tenant, exclusive rights to the use and possession of the land for the term specified in the lease.

Question 17

Victor fails to leave the property after the termination of his lease. What type of lease has been created?

Quitclaim
Periodic-tenancy
Tenancy-at-will
Tenancy-at-sufferance

Answer 17

Tenancy-at-sufferance

Question 18

A month to month lease is referred to as a ________

periodic-tenancy
tenancy-at-will
tenancy-at-sufferance
definite-term lease

Answer 18

periodic-tenancy

Question 19

Which of the following would be considered a partial eviction?

• The landlord refuses to allow a tenant on any part of the property.
• The landlord refuses to allow smoking in the building.
• The landlord requests that tenants avoid the common area for two days while painting work is being done.
• The landlord changes the locks on the apartment and refuses to give the new keys to the tenant.

Answer 19

• The landlord changes the locks on the apartment and refuses to give the new keys to the tenant.

Question 20

Georgia has cut down trees in the backyard of her rental property without the landlord’s permission. In this instance, Georgia has created ________

devastation
waste
litter
spoilage

Answer 20

waste

Question 21

A transfer of less than all a tenant’s interests in the leased property is a(n)________

consignment
sublease
delegation
assignment

Answer 21

sublease

Question 22

Lara and Jennifer signed a two-year lease with Apartments Unlimited, the leasing company for Oak Creek Apartments. The monthly rent was $1200. Section C.1.a of the lease states, “After twelve months, the rent shall increase by two percent.” Section C.1.a is an example of a(n) ________ clause.

acceleration
rent lien
annual increase
rent escalation

Answer 22

rent escalation

Question 23

Which of the following is not an important clause in an insurance contract?

Contestation Clause
Appraisal clause
Arbitration clause
Anti lapse clause

Answer 23

Contestation Clause

Question 24

AAA Life Insurance Company sold Harry a life insurance policy. Harry named his daughter, Kathleen, as the beneficiary. Kathleen is entitled to which of the following?

• Kathleen is entitled to amend the insurance policy.
• Kathleen is entitled to receive the benefits of the insurance policy.
• Kathleen is entitled to receive payments from the insured party.
• Kathleen is entitled to raise the amount of the insurance policy.

Answer 24

• Kathleen is entitled to receive the benefits of the insurance policy.

Question 25

A(n) ________ clause states that the insured has a grace period (typically thirty days) in which to make an overdue payment. acceleration antilapse anti-payment deceleration

Answer 25

antilapse

Question 26

The insurer can argue that _______ if the insured fails to fulfill his or her duty to provide all material information on the insurance contract. - the insured can file only a personal lawsuit - it is required to pay on a claim before suing the insured - the insured has breached the contract - the insured has no defenses for nonpayment

Answer 26

- the insured has breached the contract

Question 27

The ________blank is a state-mandated clause ensuring that after an insurance policy has existed for a specified period of time, the insurance company cannot challenge any statements made on the insurance application. anti-fraud clause incontestability clause investigation clause cancellation clause

Answer 27

incontestability clause

Question 28

An insurer may cancel an insurance policy in all but which of the following circumstances? - A car insurance policy may be canceled if the insured loses his or her license because of a driving violation. - A policy may be canceled if the insured misrepresented a material fact on the insurance application. -A policy may never be canceled without the insurance company’s giving 90-day written notice to the insured. - A policy may be canceled if the insured stops paying the premium.

Answer 28

-A policy may never be canceled without the insurance company’s giving 90-day written notice to the insured.