Property Ownership Flashcards
What is a freehold estate?
Estate (Ownership interest) in land where someone has both possession and ownership rights (indefinite) in real property.
Which of the following choices is NOT a freehold estate?
A. a present interest in land
B. a lease that does not require rent payments
C. a life estate
D. all of the above
D. All of the above
All of the following terms are physical characteristics of land except:
A. situs
B. immobility
C. heterogeneity
D. indestructibility
A. Situs
Situs is area preference (location, location, location) and it is considered an Economic Land characteristic.
Physical Characteristics include:
Immobility- means property can not be moved
Heterogeneity- Uniqueness. Real property is distinct
Indestructibility- Land can not be destroyed
The unity that exists in both a tenancy in common and a joint tenancy is:
A. time
B. title
C. possession
D. none of the above
C. Possession
An appurtenant easement may be terminated by:
A. merger of the dominant and servient estates
B. condemnation of the servient estate through eminent domain
C. abandonment by the servient estate
D. all of the above
A. Merger of the dominant and servient estates
Mrs. Heckler bought a unit in a condominium apartment complex directly from the developer. She most likely received a:
A. proprietary interest in the complex
B. fee simple absolute interest in her unit
C. divisible fee simple interest in the common elements
D. all of the above
B. Fee Simple Absolute interest in her unit.
Which of the following statements is NOT true about title insurance?
A. the policy will include a list of exclusions
B. it serves many of the same functions as homeowner’s insurance
C. it will insure the owner against losses arising from title
defects
D. it will generally include exclusions for unrecorded easements
B. It serves many of the same functions as homeowner’s insurance
Deed restrictions apply to:
A. current owners
B. subsequent owners
C. all property owners in a neighborhood
D. both A and B
B. Subsequent Owners
What should Sally Salesperson do with an earnest money check she received from Billy Buyer?
A. deposit it in her escrow account
B. give it to her broker
C. attach the check to the contract and file it
D. give it to the seller
B. Give it to her Broker
Bill and Sue want to purchase the home that is occupied by their grandparents. However, they want to take title in such a way that will result in the least amount of income tax liability for themselves. How should a real estate sales agent advise them?
A. take title as tenants-in-common with their grandparents
B. acquire title as joint tenants with each other
C. take title as tenants-in-common, but each with an equal
interest
D. refer Bill and Sue to an attorney or tax advisor
D. Refer Bill and Sue to an attorney or tax advisor.
If a seller deposits the deed with an escrow agent, but dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow due to the:
A. party’s consent
B. law of contracts
C. parole evidence rule
D. doctrine of relation-back
A. Law of contracts
The right to ___________________ property and use it legally
The right to ___________________ property
The right to ___________________ property within legal limits
The right to ___________________ of property by sale, will, or other transfer
The right to ___________________ property by lessening one’s rights of ownership in any way
The right to ___________________ others from property
a. Possess b. Control c. Enjoy d. Exclude
e. Encumber f. Dispose
The right to __ENJOY__ property and use it legally
The right to ____POSSESS____ property
The right to ____CONTROL____ property within legal limits
The right to __DISPOSE___ of property by sale, will, or other transfer
The right to ____ENCUMBER___ property by lessening one’s rights of ownership in any way
The right to ____EXCLUDE____ others from property
Categorize the following items as “Real Property” or “Personal Property”.
Camper Trailer = __________________________
Tractor = ________________________________
Crops/Corn= _____________________________
Home Additions = _________________________
Fence = __________________________________
Garage = _________________________________
Real Property includes land, improvements, real estate, and fructus naturales (flowers, grass, trees, bushes)
Personal Property includes intellectual property ( protected by patent or copyright), business reputation, leases, and partnership interests.
Camper Trailer = ___Personal Property___
Tractor = ___Personal Property____
Crops/Corn= ___Personal Property____
Home Additions = ____Real Property____
Fence = __Real Property___
Garage = __Real Property___
How do you classify property as being a trade fixture or regular fixture?
Trade fixtures are needed for a tenants trade or fixture.
Regular fixtures are items that were once moveable (personal property) but has been affixed to real estate.
Former personal property that automatically conveys is most likely to:
A. Occur only by agreement
B. Be a chattel
C. Be a trade fixture
D. Be a fixture
D. Be a fixture
Mr. and Mrs. Jones sold their home to a church, but retained the right to occupy the property as long as they lived. The interest of the church is that of a:
A. Remainder Estate
B. Life Estate
C. Reversion Estate
D. Trustee
A. Remainder Estate
Reversion estate is created when the seller (grantor) conveys less than a fee simple estate and retains a future estate for themself.
Life Estate is a freehold estate conveyed to a person for the duration of someone’s life.
Trustee is a party to a deed of trust or a fiduciary who operates a trust.
A condensed history of the documents affecting real property is known as:
A. The chain of title
B. An abstract of title
C. An abstract of judgements
D. An affidavit of title
B. An abstract of title
The condensed history is an abstract. A chain of title is similar, but not as complete. An affidavit of title is the swearing that there have been no encumbrances incurred since the title search.
Which of the following deeds imposes the most liability on sellers?
A. Universal warranty deed
B. Special warranty deed
C. Quitclaim deed
D. General warranty deed
D. General warranty deed
The general warranty deed is the most complete of all deeds. It carries all the warranties (promises) of title from the seller to buyer.
A quitclaim deed is the least complete in that is warrants nothing. A special warranty deed warrants only against defects arising during the tenure of the grantor’s ownership and not against previous defects in title.
A house sold for 109,000 with the buyer making a 20% down payment. The grantor’s tax is based on the:
A. Down payment
B. Loan amount
C. Selling price
D. None of the above
C. Selling price
The state decided to widen a highway.It will be necessary to use six feet of private property on each side. The state’s power to take this property is derived from:
A. The police power
B. Zoning power
C. Condemnation proceedings
D. None of the above
D. None of the above
When the state take property fro the good of the public, it does so through the POWER of EMINENT DOMAIN derived from the Constitution.
An owner has deen using a parcel of land for heavy industry since 1973. Subsequently, the property is zoned commercial, excluding the industrial uses. The owner’s continued industrial use of the property is a(n):
A.Violation of the existing zoning
B. Deviation from the master plan
C. Example of a zoning variance
D. Illegal non-conforming use
A, Violation of the existing zoning
This is an example of non-conforming use. The use of property at one time conformed to the zoning code.
A property management contract is between the property manager and:
A. His or her employees
B. The owner of the property
C. The tenants
D. All of the above
B. The owner of the property
Assemblage most often occurs where:
A. Demand in high
B. Demand is low
C. The whole is more valuable than the parts
D. Both A and C
C. The whole is more valuable than the parts
All of the following circumstances are examples of insurable title defects, except:
a. Unrecorded easements
b. Forged documents
c. Mental incompetence
d. Undisclosed heirs
Unrecorded easements and other rights of parties in possession are generally excluded.
Gill had a bad year. In September 2014, Gill’s vacation home had a 1st mortgage, a mechanic’s lien, and a special assessment filed against it. Later, in May 2015, a second mechanic’s lien was filed against the property. Which lien has priority?
a. 2nd mechanic’s lien
b. Mortgage
c. 1st mechanic’s lien
d. Special assessment
Because special assessments are a form of real property tax, it would have priority over all the other liens. Real estate property taxes take priority over other types of liens, regardless of their date of recording.
Prior to closing a buyer can request a document that details any existing loans, what type of document should they request?
a. Fiduciary certificate
b. Reduction certificate
c. Estoppel certificate
d. Either B or C
Prior to closing a buyer may request a “reduction certificate” or “estoppel certificate,” which documents the status of any existing loans.
