Module 3 - Real Estate Law

Question 1

Zoning, building codes, and environmental restrictions are forms of local land use control known as

A) master planning.
B) preemption.
C) police power.
D) concurrency.

Answer 1

C) police power

Question 2

T/F Zoning laws are based on the State’s police power to protect the public health, safety, morals, and general welfare of its citizens.

Answer 2

True

Question 3

T/F

An Environmental Impact Statement typically describes the effects the proposed project will have on the environmental health and safety of ____________.
A) the public.
B) drinking water.
C) wildlife migrations.
D) designated sensitive areas.

Answer 3

A) The Public

An Environmental Impact Statement typically describes the effects the proposed project will have on the environmental health and safety of the public.

Question 4

A required standard of construction established by city or county officials is a

A) standardized master plan.
B) zoning ordinance.
C) grandfathered requirement.
D) building code.

Answer 4

D) Building Code

Question 5

The United States system of land ownership is based upon an individuals fee simple ownership of real property which allows that individual to enjoy the full set of rights entailed in property ownership subject to restriction only by certain powers retained by the government. This system of ownership is known as the __________ .

A) Allodial System
B) Property Taxes
C) Police Power
D) Eminent Domain
E) Escheat

Answer 5

A) Allodial System

Question 6

he government sends out a property tax bill each November to each Oregon property owner. The government’s ability to send this bill each year is based upon the governments retained right to collect __________ .

A) Allodial System
B) Property Taxes
C) Police Power
D) Eminent Domain
E) Escheat

Answer 6

B) Property Taxes

Question 7

A developer who wants to create a 50 lot subdivision must get approval from the local planning authority. The laws requiring a developer to apply for subdivision approval are based on the government’s __________ .

A) Allodial System
B) Property Taxes
C) Police Power
D) Eminent Domain
E) Escheat

Answer 7

C) Police Power

Question 8

The City of Portland is planning on widening a street from two to four lanes. Joshua owns a home on this street receives a notice in the mail notifying him that the city intends to take 20 feet of his property for the street improvement. The city’s right to do this is based on its right of __________ .

A) Allodial System
B) Property Taxes
C) Police Power
D) Eminent Domain
E) Escheat

Answer 8

D) Eminent Domain

Question 9

Otto died and left no heirs or a will. Under these circumstances, Otto’s property will __________ to the state.

A) Allodial System
B) Property Taxes
C) Police Power
D) Eminent Domain
E) Escheat

Answer 9

E) Escheat

Question 10

T/F

An Appurtenance is an item, such as a house or in ground tank, permanently attached and will pass with the land when sold.

Answer 10

True. A House would be an example of a Tangible Appurtenance and also as Corporeal.

Note: An appurtenance is also an easement of right of way, which would be an example of incorporeal.

Question 11

T/F Chattel Personal and Chattel Real are examples of personal property.

Answer 11

True

Question 12

An example of Chattel Real is:

A) A cow

B) A house

Answer 12

B) A house.

A cow is Chattel Personal. It’s movable property.

Question 13

T/F

A mortgage lenders security interest in real estate is an example of Chattel.

Answer 13

True.

Question 14

Addison permanently attached a weather vane to the rooftop. The weather vane is NOT

A) realty.
B ) real estate.
C) real property.
D) personal property.

Answer 14

D Personal Property

Real property includes the land, anything naturally attached to it, and anything permanently attached by human effort. Realty, real estate, and real property are all names for real property. Because the weather vane is permanently attached, it is NOT personal property.

Question 15

Which statement is FALSE?

A) Real property is realty, real estate, land, and chattel.

B) Real property includes land and anything permanently attached to it by human effort.

C) Real property is realty, real estate, land, and immovable property.

D) Real property includes land and anything naturally attached to it.

Answer 15

A) Real Property

Real property is also known as realty, real estate, and immovable property. Real property includes anything attached to it naturally or permanently attached to it by human effort. Personal property items are called chattels or personalty

Question 16

Miguel owns a home with hedges planted on the east and west property boundaries. The hedges on the west side struggled because the soil is more acidic than on the eastern boundary. Rather than keep planting hedges only to have them die, Miguel placed a hedge line of plants in pots along the west-side boundary.

Min bought Miguel’s property but they want you to tell them who owns the plants on the east and west property boundaries. Which response is correct?

A) Miguel owns the east side hedges as emblements, and the potted plants because they are his personal property.

B) Miguel owns the west side potted plants since they are personal property, but Min owns the east side plants because they are planted into the ground.

C) Min owns the potted plants since they are real property, and Miguel owns the hedges since they are his personal property.

D) Min owns all of the plants whether in pots or in the ground because they are part of the real property.

Answer 16

B) A plant that is rooted into the ground, like the east side hedges, would be real property. Plants that are not planted in the ground (and are movable) such as the potted plants would be personal property. Miguel gets to keep his potted plants, but he has no claim to the rooted hedge line.

Question 17

Land (real property) differs from personal property (such as a car or a book) in a very important way, which is that it is

A) inalienable
B) indivisible
C) homogeneous
D) immobile

Answer 17

D) Immobile

The key difference between real and personal property (i.e. land vs. a truck) is that the land itself is unable to be moved. Since it cannot be moved, the way we transfer and use land is legally distinct from the way we transfer goods.

Question 18

Suzuki bequeathed all of her personal property to her son, and all of her real property to her daughter.

A fence upon which Suzuki had painted a mural of her children.

A sculpture of St. Francis that Suzuki would rotate around the front and back yards each year.

Who owns what?

A) The daughter owns the fence because it is real property, and the son owns the sculpture because it is personal property.

B) The son owns both the fence and the sculpture because they are both personal property.

C) The daughter owns both the fence and the sculpture because both are real property.

D) The son owns the fence because it is personal property, and the daughter owns the sculpture because it is real property.

Answer 18

A)

A fence is a fixture in a yard because it is permanently attached to the land. This makes it real property that would belong to the daughter. Since the sculpture can be moved from place to place, it is technically “movable.” The sculpture would be personal property and would belong to the son.

Question 19

A triple net lease is

A) appurtenant chattel.

B) chattel personal.

C) chattel real.

Answer 19

C) Chattel Real

A lease is classified as chattel real, which is a type of personal property.

Question 20

Appurtenances that have a physical, material existence are which type of appurtenance?

A) Chattel

B) Possessory

C) Corporeal

Answer 20

C)

Question 21

A house is

A) quasi-governmental property.
B) personal property.
C) real property.

Answer 21

C) Real Property
‘
Anything permanently attached to the land becomes a part of the real property

Question 22

Salvo Company, a privately held corporation, is developing a large tract of land into an outlet mall. Salvo’s development is

A) private property.
B) public property.
C) quasi public property.

Answer 22

A) Private Property
Private property is ownership of property by a non-governmental entity.

Question 23

The City of Tigard is going through the legal process to take a portion of Mr. Brown’s land for a new public street. This process is done under the government’s right of ______________________.

A) police power.
B) eminent domain.
C) capture.

Answer 23

B) Eminent Domain

Eminent domain is the right of the government to take private property for public use.

Question 24

Land and anything permanently affixed to the land is known as

A) personal property.
B) real property.
C) chattel real.

Answer 24

B) Real Property

Question 25

Which system of land ownership is used in the United States?

A) Allodial
B) Eminent Domain
C) Chattel Eminent

Answer 25

A) Allodial

Question 26

The power that is given to the government to establish legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens is known as

A) police power.
B) master planning.
C) corporeal.
D) eminent domain.

Answer 26

A) Police Power
Police power is the power given to the government to establish legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens.

Question 27

Appurtenances that do not have a physical, material existence are known as _________ appurtenances.

A) incorporeal
B) eminent
C) tangible

Answer 27

A) Incorporeal

Question 28

Land owned by an individual is categorized as
‘
A) escheat.
B) private property.
C) public property.

Answer 28

B) Private Property
Private property is property held by an individual.

Question 29

Heterogeneity, indestructibility, and immobility are collectively used to describe
A) personalty.
B) realty.
C) chattel.
D) personal property.

Answer 29

B Realty
Heterogeneity, indestructibility, and immobility are collectively used to describe real property (realty, real estate).

Question 30

Wamblee sells to Michael but reserves the rights to oil and gas. Wamblee begins drilling for the oil, discovers a silver vein, and begins to extract the silver. Which statement is MOST true.

A) Because Wamblee cannot use Michael’s land to collect the silver, Wamblee has no right to either the silver or oil.

B) Since Wamblee owns only the rights to the oil and gas, he is not entitled to the silver because it belongs to Michael.

C) Wamblee has a right to the oil, and because he found the silver in a legal manner, he is the owner of both the silver and oil.

D) Wamblee has the right to collect both the silver and oil because he was the previous landowner.

Answer 30

B)
Land can be sold while reserving the rights to all minerals, oils, or gases in the deed of sale. Assume the previous owner will have a right to remove the minerals, oils, or gases unless the deed states “without right of surface entry.” In this case, since only oil and gas was reserved, Wamblee would only have the ability to gather those two. He has no right to the silver, which is now the real property of Michael.

Question 31

Courtney just purchased a plot of land with a beautiful stream running through it. One day she decides to create a massive rice paddy and to irrigate it using the water from the stream. Her downstream neighbors claim that Courtney’s use of the water is too extreme because she uses all the water from the stream on days when she irrigates, completely drying up the stream for a few hours.
What can the neighbors claim?

A) Courtney does not have any ability to use the water because riparian rights only apply to lakes.

B) Riparian rights give you only the ability to reasonably use moving waters adjacent to the land, and Courtney is not using the water reasonably.

C) The neighbor cannot claim anything because riparian rights allow any landowner to use water if they obtain a permit from the government.

D) They cannot claim anything because they do not have any rights to the water on Courtney’s land.

Answer 31

B)
Riparian rights give you the right to reasonable use of the flowing water on your property; diverting all the water for periods of time would not be a reasonable use of the water. The downstream neighbors similarly have riparian rights since they are on the stream, so Courtney must consider the downstream usage of the waters when making “reasonable use.”

Question 32

Lucy Littoral has been told that her name is a special legal real estate word. When she buys a house, she has decided that she wants it to have something to do with “Littoral,” but she doesn’t know what that term means. Which house would you advise her to purchase?
A) A small home in the middle of a dense forest

B) A cabin adjacent to Becker Lake

C) A duplex in an urban subdivision in Tempe

D) A rural dwelling overlooking the San Pedro River

Answer 32

B)

Littoral rights are the landowner’s rights to lake, sea, and ocean water that is on or adjacent to their property. Riparian rights are the rights to use a river or stream, whereas having trees on your property is a “natural attachment” that may be harvested as personal property. The best recommendation for Lucy would be the cabin near Becker Lake.

Question 33

The State of Oregon owns all water within its boundaries.
True
False

Answer 33

True

The Water Rights Act of 1909 declared that all surface water lying within the boundaries of the State is owned by the State in the name of the people. The Ground Water Act of 1955 required that rights to groundwater be governed by the same principles and procedures as applied to the 1909 surface water provisions.

Question 34

Which best describes “water rights?”

A) All water rights are littoral.

B) Water rights based on land ownership are known as surface water rights.

C) Water rights are held in fee by property adjacent to the groundwater.

D) Water rights are the rights to use water from its sources

Answer 34

D)
Water rights are the rights to use water from its sources, such as a river, stream, lake, pond, or water beneath the ground.

Question 35

The prior appropriation doctrine determines water rights based on

A) proximity to a lake or stream.
B) priority of claim.
C) proximity to a sea or river.
D) the first person to use or divert water for a beneficial purpose can acquire individual rights to the water.

Answer 35

D)
The prior appropriation doctrine determines water rights based on the priority of beneficial use. Priority of beneficial use means the first person to use or divert water for a beneficial purpose can acquire individual rights to the water

Question 36

Naturally growing trees that might one day be used for Christmas trees are

A) real property until they are harvested and then they convert to personal property.
B) always real property.
C) always personal property.
D) personal property while they are growing and then they become fructus naturales after they are cut down.

Answer 36

A)
Naturally growing trees that might one day be used for Christmas trees are real property until they are harvested and then they convert to personal property. Timber, which is a common example of an uncultivated crop, is also referred to as fructus naturales. In property law, fructus naturales are the natural fruits of the land on which they arise. Fructus naturales are considered to be part of the real property.

Question 37

At the time of harvest, crops that require annual planting are usually considered to be
A) appurtenances.
B) personal property.
C) fruits of labor.
D) real property.

Answer 37

B
At the time of harvest, crops that require annual planting are usually considered to be personal property.

Question 38

Cisco rents land from Audrey. Cisco planted a giant pumpkin vine in hopes of winning the big $10,000 pumpkin prize at the County Fair in the fall. After enough care, Cisco’s pumpkin was clearly looking like it would be a prize winner. However, before harvest, Audrey tells Cisco that the pumpkin is being grown on her land and rooted in the soil she owns, so the pumpkin is her property, and she would be taking it to the fair to claim the prize money.

Cisco’s lawyer tells him he can utilize the doctrine of emblements and explains that the doctrine refers to

A) the right of a tenant farmer to harvest a cultivated annual crop.

B) the right of a renter to declare ownership of the property.

C) the right of ownership because of invested money and time.

D) the right to all personal property.

Answer 38

A
The doctrine of emblements is a special rule about natural attachments. A tenant farmer is someone who farms on rented land. Under the doctrine of emblements, all crops planted on rented land are the personal property of the farmer who planted them, even though most rooted trees and shrubs are considered to be part of the real property.

Question 39

When fructus naturales are harvested they are

A) converted from realty to personalty.

B) converted to fructus industrials.

C) converted from personal property to real property.

D) converted from personalty to realty.

Answer 39

A

When fructus naturales are harvested they are converted from realty to personalty.

Question 40

Whenever a landowner is selling property with annual crops, it should be clearly defined for the buyer in the sale documentation who has rights to the harvest.
False.
True.

Answer 40

True
True, to avoid any confusion, always define in the transaction who has the right to harvest.

Question 41

The right of subjacent support refers to the right to have one’s property supported from beneath the earth’s surface.
True
False

Answer 41

True
Subjacent support” is the right to have one’s land supported from beneath the surface.

Question 42

A fixture is:
Check all that apply …

A)considered to be real property
B)often determined by its method of attachment
C) a physical improvement to the land upon which it is attached
D) something that was personal property before becoming a fixture

Answer 42

All

Question 43

Using the tests we have discussed so far, identify which object is NOT a fixture?
A) Garage door opener
B) Great Grandma Smith’s stained glass window that was built into the window opening during construction.
C) Crystal chandelier hanging in the dining room
D) Movable bird bath that is the centerpiece of the backyard

Answer 43

D

Question 44

Matias wants to build a shed, patio, and fence on an empty plot of land he’s leasing. With permission from the landlord, Matias purchased the lumber and bricks for the project and stacked them neatly in the middle of the land. Matias finished the shed and patio at the end of last summer. The fence, however, never got built and the lumber is stacked neatly near the shed, along with some leftover bricks from the patio construction. Yesterday, the landlord and Matias got into a disagreement and decided to terminate their lease agreement.
Which of the following can Matias take when vacating the leased property?

A)The shed

B)The shed, patio, and materials because he bought the supplies and built them
C) The bricks from the finished patio
D) The lumber and bricks stacked near the shed that were not used in the construction

Answer 44

D)
Matias can take the leftover shed lumber and bricks stacked near the shed because they are still personal property. The patio and shed belong to the landlord because they were made part of the real estate after they were attached to the land. The fence was never constructed so its materials still belong to Matias as personal property.

Question 45

A riparian owner:

A) is given a reasonable use of the water in a stream that borders the land of the owner.
B) cannot use ground water until the riparian rights have been exhausted.

B only
Both A and B
A only
Neither A nor B

Answer 45

A Only.

A riparian owner is given a reasonable use of the water that borders or runs through the landowner’s land

Question 46

Which of the following would require the government to pay just compensation?

A) Requiring that no buildings be placed on the front ten feet of a lot.

B) Condemnation of a piece of property to build a public road.

A only
B only
Both A and B
Neither A nor B

Answer 46

B Only
Condemnation is the government’s taking of private property for public use for just compensation.

Question 47

The following are all physical characteristics of land EXCEPT:
A) Uniqueness
B) Immobility
C) Indestructibility
D) Scarcity

Answer 47

D

The three physical characteristics of land are indestructibility, uniqueness, and immobility. Scarcity is an economic characteristic of real estate.

Question 48

“Chattels” refers to

A)the tenancy of a wife in the estate of her deceased husband.
B)the right of supplementation.
C)personalty.
D)the right to continue to graze livestock after the lease expires.

Answer 48

B
Items of personal property are also called chattels or personalty.

Question 49

Which statement is correct?

A)All surface water in Oregon is owned by the State
B) All ground water in Oregon is owned by the owner of the land under which it lies.

A only
Both A and B
B only
Neither A nor B

Answer 49

A Only
In Oregon, as in most prior appropriation states, prior appropriation asserts that the State owns all water within its boundaries. This ownership allows the State to create a system of permits and certificates, as well as to keep good records of water rights claims.

Question 50

The return of property to the state when its owner dies intestate and without heirs capable of inheriting is known as

A) reversionary interest.
B) eminent domain.
C) sovereign transfer.
D) escheat.

Answer 50

D

Question 51

Rancher John refused to sell property he owned in Jefferson County to the rural fire district because he felt the price the fire district was offering was insufficient. What proceeding would the fire district pursue to take John’s property?

A) Escheat
B) Condemnation
C) Police Power
D) Foreclosure

Answer 51

B)Condemnation is a decree that a parcel of private property is to be taken for public use under the power of eminent domain.

Question 52

Spring water in Oregon is considered to be

A) surface water if it flows in a normal channel over a property, or off the property on which it surfaces.

B) ground water if the natural opening is altered artificially.

B only
Both A and B
A only
Neither A nor B

Answer 52

Both A and B
Spring water is surface water if it flows in a normal channel over a property, or off the property on which it surfaces, and ground water if the natural opening is altered artificially.

Question 53

The system of land ownership where the land is owned and controlled by individuals is known as the
A) feudal system.
B) commercial system.
C) allodial system.
D) torrens system.

Answer 53

C
The allodial system of land ownership means that land is owned outright and absolute by individuals; it’s not subject to control by a superior individual such as a lord or king. It is the opposite of the feudal system as it supposes no obligation to another, superior individual.

Question 54

“Emblements” are

A) Improvements to buildings.
B) farm machinery.
C) an addendum to a real estate contract.
D) crops annually produced by the labor of a tenant.

Answer 54

D
Emblements are annual crops or the right to harvest and the profits associated therewith.

Question 55

Public powers in private property include which of the following?

1) Taxation
2) Zoning
3) Deed restrictions
4) Eminent domain

1 and 2 only
1, 2, and 4 only
1 and 3 only
2, 3, and 4 only

Answer 55

1,2, and 4 Only
Public powers in private real property include taxation, zoning, and eminent domain.

Question 56

A water right is subject to cancellation

A) after five consecutive years of non-use.

B) through a statement of abandonment under oath to Water Resources Department

B only
Both A and B
A only
Neither A nor B

Answer 56

B) Both A and B
Water rights are subject to cancellation after five consecutive years of non-use or through a statement of abandonment under oath to Water Resources Department.

Question 57

In Oregon, the water within the boundaries of the state is owned by
A) the Oregon Bureau of Reclamation.
B) the state water master.
C) person who uses it.
D) the state.

Answer 57

D
In Oregon, as in most prior appropriation states, prior appropriation asserts that the State owns all water within its boundaries. This ownership allows the State to create a system of permits and certificates, as well as to keep good records of water rights claims.

Question 58

Which of the following best defines an appurtenance?

A) Personal property included with the sale.
B) The rights and restrictions that go with the property.
C) Non-transferable lateral support.
D) Property taken by eminent domain.

Answer 58

B

An appurtenance is anything attached to (appertaining to) a piece of land or building that passes with the property when sold. An appurtenance can be something tangible like an in-ground storage tank for heating oil or something non-tangible like an easement.

Question 59

Which of the following relates to the extraction of oil and gas that can be produced from wells on the land’s surface?

A) The rule of extraction.
B) The rule of capture.
C) The rule of drilling.
D) The rule of avulsion.

Answer 59

B

The rule of capture controls the extraction of oil and gas from wells on the surface of land

Question 60

Which of the following statements is TRUE about a person who holds a certificate of water right issued by the Water Resources Department of the State of Oregon?

A) The owner may use the right on any new property the owner acquires.

B) The owner may lose the right after a D) specified period of non-use.

A only
Both A and B
B only
Neither A nor B

Answer 60

B ONLY

A water rights owner may lose their water rights after a specified period of non-use.

Question 61

Which statement is true?

A) Congress has declared that it has exclusive jurisdiction over all water rights within the United States.

B) The ownership and use of water in states where water is scarce is often determined by the doctrine of prior appropriation.

C) All states subscribe to the common law doctrine of riparian rights.

D) Water located on the surface of the earth, such as lakes, rivers, and streams, is called ground water.

Answer 61

B
The ownership and use of water in states where water is scarce is often determined by the doctrine of prior appropriation.

Question 62

Which of the following is not real estate?

A) Lessee’s interest under a year-to-year lease
B) Air rights
C) Coal in the ground
D) Growing trees

Answer 62

A
Real property does not include a leasehold interest in real property.

Question 63

A landowner owns

A) no rights to underground minerals unless specifically granted in the deed.

B) the surface of the land, the space above the land to a height necessary for the reasonable use and enjoyment of the property, and downward to the center of the earth.

C) the surface of the property and no portion of the airspace.

D) the surface of the land, downward to the center of the earth, and upwards to the heavens.

Answer 63

B
Ownership of land includes the surface of the land, the space above the land to a height necessary for the reasonable use and enjoyment of the property, and downward to the center of the earth.

Question 64

A riparian owner refers to

A) a national forest or range land.
B) municipal property.
C) the seashore.
D) a person who owns land bordering a river or other waterway.

Answer 64

D
A riparian owner refers to a person who owns land bordering the banks of a river or other waterway

Question 65

All estates are

A) Freehold.
B) Less than freehold.
C) Non freehold.
D) Possessory.

Answer 65

D
Whether freehold or less than freehold, all estates are possessory, meaning they can be possessed now or at some future time

Question 66

What is the purpose of an entailed estate?

A) To avoid inheritance tax

B) To make sure the interest of the owner is not extinguished

C) To limit inheritance of the estate to certain classes of individuals

D) To establish limitations on use

Answer 66

C
A fee tail estate or entailed estate is an estate of inheritance usually limited to certain categories or classes of individuals, such as family members.

Question 67

Fred owns a property and sells it to Steve so Steve can start a convenience store. Fred includes the condition in the deed that if Steve sells alcohol at his store, then Fred has the right of entry to terminate the estate.
Which type of estate did Fred grant to Steve?

A) Fee simple determinable
B) Fee simple subject to a condition subsequent
C) Fee simple subject to subsequent termination
D) Fee simple subject to an executory interest

Answer 67

B
When the fee estate is granted “so long as” or “while” a specified use is made of the property and includes a right to enter to retake the estate, the estate is given subject to a condition subsequent. Upon the violation of the condition, the grantor must re-enter the property and take action to recover the estate

Question 68

Harry inherited a 12-acre parcel of land from his uncle, “… so long as it isn’t used to grow, cultivate, or sell marijuana.” The estate lawyer explained to Harry that this means if he ever does any of these things the land will revert back to his uncle or his uncle’s heirs. What sort of estate has Harry inherited?

A) Fee simple defeasible/qualified.
B) Fee simple absolute.
C) Fee simple employment.
D) Life estate with a condition subsequent.

Answer 68

A
Harry owns a fee simple defeasible (or qualified) interest in the land he inherited from his uncle. Since there is a limitation to his ownership, Harry does not own a fee simple absolute interest in the property, and since the land is not Harry’s for his life or the life of another is not a life estate.

Question 69

In Oregon, all fee estates are fee simple estates.
True
False

Answer 69

True