Unit #3 - Learning Objective Quiz

Question 1

Identify the various estates in land, including freehold estates of ownership and leasehold estates of tenancy.

Answer 1

Freehold estates mean the owner can use their land but there may be some restraints. It can be held for an unlimited time or a specified period of time.

Tenants own non-freehold estates called leasehold or estates of tenancy. Can only use property for stated period.

Freehold estates > Fee simple (absolute or termination) & Life Estate (reversion/remainder)

Leasehold Estates of Tenancy > Estate for Years, Estate from Period to Period, Estate at Will, Estate at Sufferance.

Question 2

Describe the difference between a reversion and a remainder.

Answer 2

The key difference between a reversion and a remainder is that a reversion is held by the grantor of the original conveyance, whereas “remainder” refers to an interest that would be a reversion, but is instead transferred to someone other than the grantor.

Question 3

List the ways in which title to real estate may be taken by an individual.

Answer 3

Community Property
Right of survivorship
Separate Property

Question 4

Distinguish the forms of concurrent ownership

Answer 4

Tenancy in common
Joint Tenancy
Community Property
Tenancy in Partnership

Question 5

Describe the attributes and ways of acquiring community property

Answer 5

Spouses or registered domestic partnerships, same time, only one title, equal undivided interests, equal rights.

Question 6

List the forms of business ownership of real estate

Answer 6

Sole proprietorship, Corporation, General Partnership, Limited Partnership, Limited Liability Company (LLC), Trust.

Question 7

Define a trust and describe how a trust can own real estate.

Answer 7

Title property is conveyed by the trustor (property owner) to the trustee. The trustee’s powers generally are defined by the document establishing the trust.