Life Estates and etc

Question 1

A property was leased out for a two-year period by a man who held a life estate. The lessor died. What happened to the lease?

Answer 1

It expired when the lessor did.

Question 2

What is a remainderman?

Answer 2

Someone who will inherit property in the future – usually as a result of the end of a life estate. For instance, if someone dies and leaves his home “to Alma for life, and then to Barry,” Barry is a remainderman because he will inherit the home in the future, after Alma dies.

Question 3

A remainderman would be most concerned about which:
Unpaid property taxes
Waste on the part of the life tenant
A lease granted by the life estate holder
A devise of the property by the life tenant

Answer 3

Waste on the part of the life tenant

Question 4

Son gives mom a life estate for the life of Kid (three different people here). Who has a reversionary interest?

Answer 4

Son has reserved a reversionary interest. The estate reverts to him (not Mom) on the death of the Kid.

Question 5

A synonym for chattel is:

• Personalty
• Trade Fixture
• Personal Property

Answer 5

All three

Question 6

Assessed valuation is based on the property's:
Limited value
Purchase price
Equity value
Replacement cost

Answer 6

Limited Value

Question 7

Liens for property taxes are:
Voluntary OR Involuntary
General OR Specific

Answer 7

Property tax liens are

Involuntary and Specific

Question 8

Liens for income taxes and court judgments are:
Voluntary OR Involuntary
General OR Specific

Answer 8

Income taxes and court judgments create liens which are:

Involuntary and General

Question 9

Percolation tests serve what purpose?

Answer 9

They determine if a septic system is appropriate

Question 10

An Active Management Area (AMA) is an area where:

Answer 10

“Safe Yield” (Protection against overdrafts) is an issue.

Question 11

What are Littoral Rights

Answer 11

Littoral rights are the rights to property between the high water and low water marks.

Question 12

Throughout the southwest, surface water rights are allocated under

• Riparian law
• common law
• The doctrine of prior appropriation
• The groundwater Management Code

Answer 12

The Doctrine of Prior Appropriation.

Question 13

What is a Life Estate?

Answer 13

The right to use or occupy real property for one’s life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant–this is called “reversion.” Example of creation of a life estate: “I grant to mother, Molly McCree, the right to live in and/or receive rents from said real property, until her death,” or “I give my daughter, Sadie Hawkins, said real property, subject to a life estate to my mother, Molly McCree.” This means a woman’s mother, Molly, gets to live in the house until she dies, then the woman’s daughter, Sadie, will own the property.