Part 3

Question 1

An owner’s degree, quantity, nature, and extent of interest(s) in property is called what?

Answer 1

Estate.

Question 2

The degree, nature, and extent of interest that a person has in land is called what?

Answer 2

Estate in land.

Question 3

Estates are distinguished by their duration and fall into two legal categories—___________ and ____________ ____________.

Answer 3

freehold (indeterminate
duration) and leasehold (defined duration) estates.

Estates > Freehold estate or Estates > Leasehold estate

Question 4

1. Present or future possession
2. Indeterminate duration
3. Form of ownership

All fall under which one of the two main legal categories for estates?

Answer 4

The characteristics of a freehold estate.

Estates > Freehold estate

Question 5

The most complete form of ownership w/ unlimited duration and subject only to governmental powers is called what?

Answer 5

Fee simple absolute

Freehold estates > Fee simple estate > Fee simple absolute

Question 6

Ownership subject to the occurrence or non-occurrence of a specific event. The two types of specific events are an estate 1) qualified by a special limitation (so long as this doesn’t happen) and 2) subject to a condition subsequent (so long as this does happen).

Answer 6

Fee simple defeasible

Freehold estates > Fee simple estate > Fee simple defeasible

Question 7

An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

Answer 7

Leased fee interest

Freehold estates > Fee simple estate > Leased fee interest

Question 8

A type of ownership that pertain to the rights of use, occupancy, and control, limited to the lifetime of a designated party is called what?

Answer 8

Life estate, sometimes referred to as the life tenant. The grantor retains a future interest in the property; namely that when the grantee dies, the property title reverts back to the grantor or a remainder interest and not necessarily an heir of the deceased grantee.

Freehold estate > Life estate

Question 9

A future possessory interest in property that is given to a third party and matures upon the termination of a limited or determinable fee.

Answer 9

Remainder interest

Freehold estate > Life estate

Question 10

1. The tenant has possession of the property
2. Defined period of time or specified conditions
3. Reversion of possessory rights (that is, reverts back to the owner)

All fall under which one of the two main legal categories for estates?

Answer 10

Characteristics of leasehold estates

Estates > Leasehold estate

Question 11

The property owner holding a fee simple estate with a leased fee interest (this is a future interest) is called what?

Answer 11

Lessor (the landlord).

Estates > Freehold estates > Fee simple estate > Leased fee interest

Question 12

The party with a leasehold interest is called what?

Answer 12

Lessee (the tenant).

Freehold estates > Fee simple estate > Leased fee interest

Question 13

Type of estate where tenancy is for a definite or fixed period of time, not necessarily in years.

Answer 13

Estate (tenancy) for years

Estates > Leasehold > Estate for years

Question 14

Type of estate (tenancy) is for an indefinite period of time with no specific expiration date. Notice must be given to terminate the lease.

Answer 14

Estate (tenancy) from period to period

Estates > Leasehold > Estate from period to period

Question 15

Type of estate (tenancy) is for an unspecified period of time and similar to a tenancy from period to period except that it never originated with any specific term.

Answer 15

Estate (tenancy) at will

Estates > Leasehold > Estate at will

Question 16

Type of estate created when a tenant lawfully takes possession but stays after the lease expires without the consent of the property owner.

Answer 16

Estate (tenancy) at sufferance

Estates > Leasehold > Estate at sufferance

Question 17

Any claim or liability that affects or limits the title to property. This can affect the title such as a mortgage or other lien, or it can affect the physical condition of the property such as an easement. This cannot prevent the transfer of possession, but it does remain after the transfer.

Answer 17

Encumbrance.

Question 18

The right to use another’s land for a stated purpose.

Answer 18

Easement.

Encumbrances > Non-lien encumbrances

Question 19

An easement that is attached to, benefits, and passes with the transfer of the dominant estate; runs with the land for the benefit of the dominant estate and continues to burden the servient estate.

Answer 19

Easement appurtenant

Encumbrances > Non-lien encumbrances

Question 20

An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate.

Answer 20

Easement in gross

Encumbrances > Non-lien encumbrances

Question 21

Trespassing on the domain of another.

Answer 21

Encroachment.

a.k.a trespass

Encumbrances > Non-lien encumbrances

Question 22

A provision written into a deed that limits the use of land. _________ _________ usually remain in effect when title passes to subsequent owners.

Answer 22

Deed restrictions

Encumbrances > Non-lien encumbrances

Question 23

1. Revocable oral or written agreement granting privilege to use property
2. Not an estate or an interest in land (and thus not an encumbrance)
3. Not assignable and can’t be sold
4. A personal agreement usually granted for a specified period of time

These all fall under what?

Answer 23

**Licenses **are NOT encumbrances, but we give them special mention here because they are sometimes labeled incorrectly as encumbrances.

Question 24

A clause found in legal instruments and conveyances that creates a new right or interest on behalf of the grantor. While title passes to the grantee, some use or income is reserved for the grantor. ___________ may include mineral rights, rental income, or easements.

Answer 24

Reservation

Encumbrances > Non-lien encumbrances

Question 25

A monetary claim against a property is called what?

Ex: Property tax, first mortgage, judgements, etc

Answer 25

Liens.

Encumbrances > Liens

Question 26

Reserved by the property owner during a land conveyance is called what?

Answer 26

Reservations

Ex: easement by reservation. In simple terms, it means that even though you may own a piece of property, someone else can enjoy certain rights to use it.

Encumbrances > Non-lien encumbrances

Question 27

A lease is a type of encumbrance that affects the use of physical condition of a property, true or false?

Answer 27

True.

Encumbrances > Non-lien encumbrances

Question 28

Restrictions and leases affect the owner’s ability to _________ a property.

Answer 28

ability to use a property.

Question 29

The holder of a remainder interest in a life estate is known by what term or phrase?

Answer 29

the remainderman

Estates > Leasehold estate

Question 30

All liens are encumbrances but not all encumbrances are liens, true or false?

Answer 30

True.

Question 31

This ownership lasts indefinitely and can be passed down to your heirs.

Answer 31

Fee simple estate.

Estates > Freehold estate > Fee simple estate

Question 32

David purchased an 80-acre parcel with 75 acres being tillable land. After remodeling the farmhouse, David decided to lease the tillable portion of the land for the next five years. One year into the lease, David’s daughter moved back home. He would like to build her a house on several acres of his land that is now leased. Which response best describes ownership in this situation?

Answer 32

David has a leased fee interest in the tillable portion of the property. Although he is the current owner, he cannot begin constructing his daughter’s house until the lease expires.

Freehold estates > Fee simple estate > Leased fee interest

Question 33

Bill owns much of the land surrounding Roosevelt Elementary School where he attended as a youth. 15 years ago Bill conveyed a large vacant parcel to the school so long as it is used for physical education activities such as soccer, football, and baseball. The school has recently developed plans for expansion into the area to increase the size of its outdated library. Which selection best supports the above situation?

Answer 33

Fee simple defeasible estate indicates the property would revert back to Bill since the library expansion violates the estate’s conditions for its use.

Freehold estates > Fee simple estate > Fee simple defeasible

Question 34

Jeffrey cuts hair in an upscale salon in the downtown area. The shop occupies the main floor and there are several apartments on the second level. The entire building is owned by an out-of-town landlord. Recently, a tenant moved out and an apartment was available for much less than the going rate of comparable rentals. Jeffrey acted quickly and signed a two-year lease. He relisted the apartment at a higher rent to a new tenant, Angela. The leasehold estate is best described as

Answer 34

subleased to Angela

Leasehold > Estate for years > Sublease/Subleasehold estate

Question 35

Jerald and Cindy inherited her grandmother’s home which includes both a large two-story, one-unit dwelling and an additional rental property located behind the main house on the same lot. Access to the rental property requires the use of the driveway of the primary residence. They would like to sell off the rear portion of the site with the rental dwelling, but the new owner needs access by using their driveway. What type of encumbrance is needed to resolve this issue?

Answer 35

easement appurtenant

Encumbrances > Non-lien encumbrances

Question 36

Hooper gave permission to a nearby business neighbor to place a sign on his corner property to advertise the neighbor’s liquidation sale. What has Hooper given his neighbor?

Answer 36

a license

Question 37

Which of the following is an example of an “easement in gross?”

Answer 37

easement for a public sidewalk

Encumbrances > Non-lien encumbrances

Question 38

In order to make his retirement community more picturesque and to add to the site values, the developer of Reed Lake Subdivision placed a wide, shallow lake in the center of his development. However, the developer wanted no docks to be permitted on the sites that front the lake. What is the best way for the developer to limit the future owner’s rights in the development and keep the lake free of boat docks?

Answer 38

incorporate a deed restriction to control the construction of docks on any of the lakefront properties

Question 39

Jason is getting ready for a construction firm to install a fence on his property. After the survey was performed, it was clear that four feet of the neighbor’s above-ground pool are located on Jason’s property and in the direct line of the proposed fence. Which of the following best describes this situation?

Answer 39

The neighbor will have to move their pool since it is considered personal property and is encroaching on Jason’s property.

Question 40

Don Bradstreet owns several rental properties including a two-bedroom house. Eight months ago, a tenant moved into this house and leased it for six months. After paying the rent in a timely manner for about four months, Mr. Bradstreet began having difficulty collecting the rent and asked the tenant to vacate the premises. Now the lease has been expired nearly two months, but the tenant is still living in the house. The tenant

Answer 40

has an estate at sufferance.