Unit 2-Rights And Interests In land

Question 1

The real property taxes are computed based on the property’s

A. Subjective value
B. Market value
C. Assessed value
D. Income value

Answer 1

C. Assessed value

Assessed value x tax rate = property tax

Question 2

The process which the government exercised its power to take private lands for public use is

A. Condemnation
B. Escheat
C. Foreclosure
D. Eminent domain

Answer 2

A. Condemnation

The process is condemnation the power is eminent domain

Question 3

All of the following are governmental powers EXCEPT

A. Deed restrictions
B. Taxation
C. Zoning
D. Escheat

Answer 3

A. Deed restrictions

Are private restrictions on the use or sale of property

Question 4

Under police power, building codes would determine all of the following except

A. Acceptable land uses
B. Types of plumbing and electrical materials allowed
C. Height and structure requirements
D. Methods of construction to be used

Answer 4

A. Acceptable land uses

A. Acceptable land uses

Building codes determine the types of plumbing and electrical materials allowed. The height and structure requirements and methods of construction to be used are also determined by building codes. Zoning codes determine acceptable land uses

Question 5

The term estate refers to

A. The amount of property owned by an individual
B. The rights held by someone who has a possessory interest in real estate
C. A claim against or interest in land held by someone other than the owner of the property
D. Am exercise of police power

Answer 5

B. The rights held by someone who has a possessory interest in real estate

An estate in land refers to the collection or bundle of rights held by someone who has a possessory interest in a piece of real estate

Question 6

When an individual or entity holds a claim against another’s property it is 
A. an estate
B. a life tenancy 
C. A lien
D. A license

Answer 6

C. A lien

A lien secured payment of indebtedness

Question 7

All of the following are considered to be real property rights EXCEPT
A. Land rights
B. Governmental rights
C. Deed rights 
D. Ownership rights

Answer 7

C. Deed rights

Real property rights are those of land, government, and ownership, not deed rights

Question 8

Which of the following would be used by a purchaser to reveal encroachments?

A. Standard of title insurance
B. Abstract of title
C. Survey
D. Attorneys title opinion

Answer 8

C. Survey

A survey would be used to discover zoning setback violations or encroachments

Question 9

Which of the following Lein’s has first priority?

A. Mechanics Lein
B. First mortgage
C. Property taxes
D. Court judgment

Answer 9

C. Property taxes

Government Lein’s for property taxes and special assessments always have top priority

Question 10

The grantor of a life estate may retain

A. A leasehold estate
B. A qualified fee estate
C. Rights of remainder
D. A reversionary interest

Answer 10

D.

If the grantor of life estate retains reversionary rights, ownership in fee simple reverts to the grantor at the end of the life estate

Question 11

If Ann grants a life estate to Ben and specified that title will be transferred to Carl’s upon the death of Ben which of the following is FALSE

A. Ben is the life tenant
B. Carl has a reversionary interest
C. Ben owns the property
D. Carl is the remainderman

Answer 11

B. Carl has a reversionary interest

Reversionary interest can be held by Ann the grantor

Question 12

The holder of a fee estate

A. Has rights of alienation
B. Can change deed restrictions
C. May terminate a serving tenement
D. Must hold a reversionary interest

Answer 12

A.

A fee estate gives the owner the right to sell, will, or give the property away, which is known as alienation

Question 13

A married couple has been granted the right to occupy and use 10-acre tract of land forever. Which of the following does the couple hold?

A. Fee simple estate
B. Estate for years
C. Life estate
D. Leasehold estate

Answer 13

A. Fee simple estate

The right to occupy and use land forever is a fee simple estate

Question 14

In most life estates the life tenant may do all the following except

A. Will the property
B. Sell the property
C. Lease the property
D. Improve the property

Answer 14

A. Will the property

Most life estates terminate young the death of the life tenant and therefor cannot be willed. One exception: a life estate pur autre vie in which the life of someone other than the life tenant is used as measuring life

Question 15

All of the following could be encumbrances on real estate EXCEPT

A. A lien
B. An Easement
C. A restrictive covenant
D. A fixture

Answer 15

D. A fixture

A fixture is real estate. Liens, easements, and restrictive covenants are encumbrances.

Question 16

An estate that lasts only so long as a specified condition is met is known as a 
A. Life estate 
B. Qualified fee
C. Fee simple absolute 
D. Deed restriction

Answer 16

B. A qualified fee estate also referred to as defensible estate is a form of ownership that can be lost by violating a condition in the deed granting the ownership interest

Question 17

The right of government to establish zoning and land use laws is an exercise of which power?

A. Police power
B. Escheat
C. Government survey
D. Eminent domain

Answer 17

A. Police power

Is the governments right to enact and enforce laws to protect the health, safety, morals, and general welfare of the public (including land use laws)

Question 18

The grantor of a qualified fee has set the requirement that the property “must be used only as a school” ; this requirement is known as a

A. Qualified condition
B. Remainder interest
C. Reversionary interest
D. Deed condition

Answer 18

D. Deed condition

Deed conditions are used to create the requirements of qualified fee estates

Question 19

A leasehold estate with a definite expiration date that does not require notice by either party is

A. An estate at will
B. A fee simple absolute
C. An estate at sufferance
D. An estate for years

Answer 19

D. An estate for years

Has a specific termination date

Question 20

Which governmental right is exercised when the state acquired private property through condemnation and makes a payment of just compensation

A. Escheat
B. Police power
C. Taxing power
D. Eminent domain

Answer 20

D. Condemnation is the process by which the government excercises its power of eminent domain

Question 21

What is the difference between a freehold and a leasehold estate?

A. Freeholds are estates of possession and leaseholds are estates of ownership

B. Freeholds have an indefinite duration but leaseholds can terminate

C. Freeholds do not need to be in writing but leaseholds do

D. Freeholds must be fee simple but leaseholds can be life estate

Answer 21

B. Freeholds have an indefinite duration but leaseholds can terminate

Question 22

A holder of a life estate has all of the following interests EXCEPT

A. Title
B. Ownership
C. Possession
D. Remainder

Answer 22

D. Remainder

A life tenant owns the property; therefore the life tenant has title and possession. The remainder estate belongs to the party who will obtain title upon death of the measuring life

Question 23

An irrevocable right to use the lands of another is called

A. Escheat
B. A license
C. An encroachment
D. An easement

Answer 23

D. An easement

are non revocable rights of use to another’s property

Question 24

A holder of a freehold estate has rights of

A. Escheat
B. Illegal use
C. Ownership
D. Domain

Answer 24

C. Ownership

Freehold estates are estates of ownership.

Question 25

Which is NOT an estate of ownership?

A. Estate for years
B. Life tenancy
C. Fee simple
D. Qualified fee

Answer 25

A. Estate for years

An estate for years is a right of possession not ownership. Life tenancy like all other feeehold estates is an estate of ownership.

Question 26

All of the following would be considered to have an interest in land EXCEPT

A. Farmer who is leading 20 acres
B. A holder of an easement
C. A hunter who has been given permission to hunt in a field
D. A lender holding a mortgage lien

Answer 26

C. Granting permission to use ones land creates a license which is not an interest in land

Question 27

Which of the following estates usually does not terminate on the death of the holder of the estate?

A. Life estate
B. Estate for years
C. Estate at will
D. Estate at sufferance

Answer 27

B. An estate for years is a contract and terminates on the date specified in the lease, not upon death of the lessor or lessee.

Question 28

The property Sam bought 30 years ago had an appurtenant easement for access. Twenty years ago the country built a new road and Sam has not used the easement since that time. When Sam sells the property, the easement
A. Will automatically return to the serving property owner
B. Will no longer run with the land due to the stature of limitation
C. Must be renewed by re-recording it with the country
D. Remains in place and will transfer with the property.

Answer 28

D.

Easements can be terminated by release, merger, or abandonment. If an easement is abandoned and the property owner wants to have it returned, typically the service by property must prove abandonment in court.

Question 29

Protection on a primary home against certain creditors is known as

A. Specific lien rights
B. Homestead rights
C. General lien rights
D. Deed restrictions

Answer 29

B. Homestead rights

Protect a primary home from a foreclosure by certain lien holders

Question 30

Revocable, nonexclusive permission to use property is called

A. Encroachment
B. A license
C. An easement
D. A restriction

Answer 30

B. License

A license can be revoked and it typically gives no exclusive permission to use property