PM / Chapter 4 What The Purchaser Buys Flashcards
True or False: A fee simple owner has more rights over his or her land than any other owner.
True
What does the word “fee” mean in the term “fee simple”
ANSWER: Fee means that the estate could be inherited.
What does the term “simple” mean in the term “fee simple”
“simple” means that there is NO qualification on the type of heir who could inherit the property.
A fee simple is also known as a________ estate.
freehold
A ________ is simply an estate in land which lasts for the lifetime of the holder, who is called the life tenant.
ANSWER: life estate
A _______ is a person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.
Answer: remainderman
If the document creating the life estate has not provided for a remainderman, the remnant of the estate will return to the former owner or to his or her heir, referred to as the _____________ .
Answer: reversioner
Name the three types of common law waste.
The common law recognized three categories of waste: voluntary, permissive and ameliorating.
______ waste consists of direct, positive acts which result in damage to the property beyond the use a life tenant is entitled to make
Answer: Voluntary Waste
TRUE OR FALSE? The life tenant is liable for principal and interest payments
Answer: False the life tenant is NOT responsible for principal payment.
___________ waste consists of allowing a property to deteriorate without any positive acts of the life tenant.
Answer: Permissive waste
True or False?
A life tenant is generally under no obligation to repair or compensate for permissive waste.
Answer: True
_________ waste consists of direct, positive acts which improve rather than destroy the property.
Answer: Ameliorating waste
True or False: The life tenant is liable for ameliorating waste but usually no damages can be awarded as the property has been improved.
Answer: True
In order for a life tenant to escape liability for equitable waste, the instrument must expressly provide against liability for equitable waste, with words such as:
Answer: “without impeachment for waste, including equitable waste.”
_______ waste is waste that causes damage, not by accident, but by wilful, malicious behaviour.
Answer: Equitable
The _____ have the right to receive the fee simple estate in the property after the death of the life tenant.
The remaindermen (or reversioners, as the case may be) have the right to receive the fee simple estate in the property after the death of the life tenant.
TRUE OR FALSE:
A building scheme requires that the initial purchasers must receive their title from the same vendor.
**ANSWER:
TRUE**
There are three main classifications of interests in land which do not amount to estates are:
(1) easements;
(2) restrictive covenants;
and (3) profits à prendre.
An ____________ is a privilege acquired by a landowner for the benefit of his or her land over the land of another.
Answer: Easement
Through an easement, the land receiving the benefit is called the ____________.
Answer: dominant tenement
This is the land which suffers or has the burden of an easement.
Answer: Servient Tenement
True or False? For an easement to be valid, there Must be both a Dominant and a Servient Tenement.
Answer: True
TRUE OR FALSE: For an easement to be valid, it is the land which must benefit from an easement and not merely the land-owner.
Answer: True
An easement must be capable of forming the __________ .
Answer: subject matter of a grant.
In addition to common law categories of waste, the courts of equity developed a fourth category known as _______________.
Answer: equitable waste.
A ___________ is a special example of a group of restrictive covenants attaching to two or more lots within a particular development plan.
Answer: building scheme
What are the legal requirements of a building scheme?
- the parties must receive their title from the same vendor
- the vendor must have laid out and sold the property subject to restrictions which apply equally to all the individual lots,
- the vendor must have intended that the benefit of the restrictions should bind each individual lot,
- the purchasers must have purchased their individual lots on the understanding that the restrictions were for the benefit of all the other lots.
A __________________ imposes a restriction on the use of one person’s land for the benefit of another piece of land.
Answer: restrictive covenant
For a restrictive covenant to be valid, the restriction must be a _______________ .
Answer: negative obligation.
What are three essential requirements which must be established before the courts will find a restrictive covenant . .
- it must be negative in nature,
- the covenantee must retain property,
- the burden of the restriction must have been intended by the parties to bind the land
A _________is used by a developer who is selling lots in a residential subdivision and wants to maintain uniformity in the use of the lots to protect their value.
Answer: building scheme
This is a right to enter on the land of another person and to take some profit of the soil.
Answer: Profits à Prendre
True or False: A licence is not an interest in land.
Answer: True
The essential feature of joint tenancy is _______
Answer: the right of survivorship.
List the four unities of a joint tenancy.
Answer: Unity of Time, Unity of Title, Unity of Interest, Unity of Possession.
In a ________ tenancy, each co-owner owns an undivided interest in the whole of the property.
Answer: joint tenancy
A tenancy in common has only one unity, the unity of ___________.
Answer: possession
TRUE OR FALSE? Unlike “joint tenancy” with a tenancy in common there is no “right of survivorship” if one of the tenants in common dies.
Answer: True
A _ _ _ _ _ _ _ _ is a type of shared ownership of property, where each owner owns a share of the property. Unlike in a joint tenancy, these shares can be of unequal size, and can be freely transfered to other owners both during life and via a will.
Answer:
Tenancy in common
Developers use a ________ ______ [two word answer] to ensure that a subdivision has a certain “look and feel”.
Answer:
Building Schemes
__________ [one word answer] are part of the land and stay with the land when ownership is transferred.
Answer: Fixtures
_______ is NOT a type of common law waste
Answer: Equitable waste
__________ is an alteration in the physical characteristics of the premises by an unauthorized act of the tenant that increases the value of the property.
Answer: Ameliorating waste
**TRUE OR FALSE?
A joint tenant must notify the other parties to the tenancy before selling the estate.**
ANSWER: FALSE
This unity of a JOINT TENANCY requires that ALL interests must be identical in duration, extent, and nature.
Answer: Unity of Interest
TRUE OR FALSE?
A building scheme requires that purchasers must be advised that the restrictions of the building scheme are for the benefit of all other lots.
**ANSWER:
TRUE**
**IDENTIFY THE TYPE OF TENANCY?
When one joint tenant dies, his or her interest does not pass under the will. Instead, it passes “outside the will” to the surviving joint tenant(s). This means the interest of the deceased does not form part of the estate.**
Answer: Joint tenancy
**TRUE OR FALSE?
The clause “to Alice for life without impeachment for waste” would protect Alice, the life tenant, against a charge of equitable waste.**
Answer: False
___________ is the person who inherits the property upon the termination of the estate of the former owner.
Answer: Remainderman
_______ is person who is entitled to the return of his/her property.
Answer: Reversioner
An _______ is a bundle of rights held by the owner of land.
Answer: estate
TRUE OR FALSE? The life tenant is liable for all yearly operational expenses, including electricity, water, heat and taxes, and for the payment of interest but not the principal amount owing
Answer: True
The principle that the person named on a particular certificate of title is entitled to a fee simple interest in that property, free from any condition or encumbrance that is not shown on title, is known as _ _ _ _
ANSWER: INDEFEASIBILITY PRINCIPAL
