Unit 3 Quiz Questions

Question 1

A deceased homeowner left the family home to the deceased’s second spouse with the provision that when the surviving spouse dies, the home goes to a child by the deceased’s first
spouse. The second spouse owns a bundle of rights but does not own the right to

a. will the property.
b. sell the property.
c. lease the property.
d. decorate the property.

Answer 1

Will the property.

The second spouse owns a life estate and has the entire bundle of rights except the right to
will the property.

Question 2

A freehold estate lasts for

a. 99 years.
b. no longer than 100 years.
c. an indeterminable time.
d. the number of years specified when the owner takes possession.

Answer 2

An indeterminable time.

A freehold estate lasts for an indeterminable length of time, such as for a lifetime or forever.

Question 3

A property owner conveyed a one-acre parcel of land to a preschool. The deed provided that
the property was to be used only as a playground; the former owner reserved a right of reentry. What kind of estate has been granted?

a. Leasehold
b. Fee simple subject to a condition subsequent
c. Fee simple absolute
d. Curtesy

Answer 3

Fee simple subject to a condition subsequent.

The owner has granted a fee simple subject to a condition subsequent. If, at some point in the
future, the land is not used as a playground, the former owner or the former owner’s heirs may exercise the right of re-entry by retaking physical possession of the land.

Question 4

A notice is filed in the public record of pending litigation affecting the title to a property. This notice is an example of

a. fee simple determinable
b. police power
c. an encroachment
d. a lis pendens

Answer 4

A lis pendens.

A lis pendens is a notice filed in the public record affecting the title to property or a claimed ownership interest in it.

Question 5

A property owner gave land to a school “so long as the land is used for only academic and recreational purposes.” The ownership interest granted here is called

a. an easement by prescription.
b. an encumbrance.
c. a bundle of rights.
d. a fee simple determinable.

Answer 5

A fee simple determinble.

The terms so long as, while, and during generally indicate creation of a fee simple determinable interest. The school obtains the full bundle of rights gained by a property
owner, but one of the “sticks” in that bundle has a special feature.

Question 6

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of

a. escheat.
b. reverter.
c. eminent domain.
d. defeasance.

Answer 6

Eminent Domain

The right of the state to acquire private property for public use is eminent domain. The court action is called condemnation. Property escheats back to the state when it becomes
ownerless; that is, the owner dies leaving no heirs and no will.

Question 7

The owner of two acres of land sold one acre and reserved an easement appurtenant for entrance and exit over that acre to reach the public road. The buyer’s land is

a. capable of being cleared of the easement if the buyer sells to a third party.
b. the servient tenement.
c. the dominant tenement.
d. subject to an easement in gross.

Answer 7

The servient tenement

The seller’s remaining parcel is the dominant tenement and benefits from the easement. The easement runs over the buyer’s property, the servient tenement.

Question 8

A large undeveloped parcel of land borders a road on the lower edge. The owner sells the lower portion of the property and the buyer builds a home on it. Several years later, the owner
sells the upper-portion of the property to a different buyer. The second buyer’s property does not border any road. For that buyer to gain access to the road, the buyer must claim an
easement

a. by necessity.
b. in gross.
c. by prescription.
d. by restriction.

Answer 8

By necessity.

An easement by necessity could be created by court order to permit legal access to the second
buyer’s property.

Question 9

If the dominant estate merges with the servient estate, which of these is TRUE?

a. The easement remains in effect for the entire parcel.
b. The easement is suspended but cannot be terminated.
c. The easement is terminated.
d. The new owner must bring a suit seeking severance of the easement from the combined
properties.

Answer 9

The easement is terminated.

If the owner of the dominant tenement also becomes owner of the servient tenement (or vice
versa), the easement terminates. Because the same person owns both properties, there is no need for the easement to exist.

Question 10

The homestead exemption in a state is $20,000. Four years ago, a buyer purchased a home for $158,000 and then experienced hard times. At a court-ordered sale, the property is purchased
for $160,000. If the homeowner has an outstanding mortgage balance of $135,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption?

a. $640
b. $2,140
c. $20,000
d. $26,500

Answer 10

$20,000

The homestead exemption is $20,000. So, when the property is sold for $160,000, the mortgage of $135,000 is paid and $20,000 is reserved, leaving $5,000 for the credit card debt.

Question 11

In some states, a husband cannot sell property unless the wife also signs the deed. The wife’s interest is called

a. personal property rights.
b. homestead rights.
c. curtesy rights.
d. dower rights.

Answer 11

Dower Rights

A wife’s interest in her deceased husband’s property is dower, a husband’s interest is curtesy, and protection for some part of the family home is called homestead rights.

Question 12

The state’s authority to enact legislation to protect the public is passed through to municipalities and counties through

a. police power.
b. enabling acts.
c. licensing laws.
d. processing papers

Answer 12

Enabling Acts

The state passes police power to counties and municipalities through enabling acts. Licensing laws are an example of police power.

Question 13

The state requires enough land to build a four-lane highway. For the state to acquire the needed land, the state must reimburse every property owner

a. the value of the land but not improvements.
b. the estimated future value of the property after completion of the highway.
c. for the amount that the property owner paid for the land.
d. for the fair market value of the property taken.

Answer 13

For the fair market value of the property taken

To acquire private property through eminent domain, the state must prove that the purchase is for public good, pay a fair price, and allow the property owner full rights to appeal. The
price may or may not reflect what the owner had actually paid for the property.

Question 14

A patient died in a nursing home. The deceased left no heirs and had not written a will. What happens to the deceased’s $250,000 estate?

a. It escheats to the state or county.
b. The nursing home gets to keep it.
c. It will be split between the nursing home and the county.
d. It can be paid over to the deceased’s church.

Answer 14

It escheats to the state or county.

Because the deceased left no will and there are no heirs, the $250,000 is essentially ownerless. It reverts to the state or county.

Question 15

Which of these is defined as a claim, charge, or liability that attaches to real estate?

a. Lien
b. Easement
c. Deed restriction
d. Encumbrance

Answer 15

Encumbrance

An encumbrance is a claim, charge, or liability that attaches to real estate, such as a lien, easement, or deed restriction.

Question 16

Which of these must exist for an appurtenant easement to exist?

a. Two adjacent parcels, different owners
b. Two adjacent parcels, one owner
c. Landlocked property that requires passage to the street
d. Long-time unauthorized usage

Answer 16

Two adjacent parcels, different owners.

An easement appurtenant must have two owners and two parcels of land. A landlocked parcel would require an easement by necessity; long-time unauthorized usage would lead to an
easement by prescription.

Question 17

What are deed restrictions?

a. Public land restrictions
b. Illegal land restrictions
c. Private agreements affecting the use of the land
d. Informal agreements between neighbors

Answer 17

Private agreements affecting the use of the land.

Deed restrictions are private agreements written into the deed and are privately enforced. Examples of public restrictions include zoning ordinances and building codes.

Question 18

The electric company has the right to extend its wires over 50 parcels of land. What right does the electric company have?

a. Appurtenant easement
b. Easement by necessity
c. Easement by prescription
d. Easement in gross

Answer 18

Easement in gross

Commercial easements such as this are called easements in gross. There are only servient tenements. There is no dominant tenement because there is no associated land ownership.

Question 19

For as long as anyone can remember, neighbors have used a footpath over a waterfront parcel to get to the river. Recently, the current owner of the waterfront property erected a fence across the path, blocking access. Which of these easements might the neighbors claim, which would require the property owner to remove the fence?

a. Easement by necessity
b. Easement by prescription
c. Easement in gross
d. Appurtenant easement

Answer 19

Easement by prescription

Long-time unauthorized usage may create legal rights leading to an easement by prescription. An easement in gross is a personal right, often used by utility companies. An easement by necessity could be imposed by court order to provide access to a landlocked property.

Question 20

The holder of a life estate is called

a. an encumbrance.
b. a life tenant.
c. a remainderman.
d. a successor.

Answer 20

A life tenant.

A life tenant is entitled to the rights of ownership and can benefit from both possession and ordinary use, just as if the individual were a fee simple owner.

Question 21

The right of a government body to take ownership of real estate for public use is called

A. escheat.
B. eminent domain.
C. condemnation.
D. police power.

Answer 21

Eminent Domain

The answer is eminent domain. The right is eminent domain; the process by which the right is exercised is condemnation. Escheat and police power are other examples of government limitations on rights of private ownership

Question 22

One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property has

A. fee simple absolute.
B. life estate.
C. determinable fee.
D. condition subsequent.

Answer 22

Fee Simple Absolute.

The answer is fee simple absolute. Fee simple is an absolute ownership—an inheritable interest “with no strings attached.” A life estate is noninheritable; fee on condition subsequent and determinable fees are both estates involving another person with an interest called “possibility of (either reverter or) reentry.”

Question 23

The owner of fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital “so long as it is used for hospital purposes.” After completion of the gift, the hospital will own

A. a fee simple absolute estate.
B. a license.
C. a fee simple determinable.
D. a leasehold estate

Answer 23

A Fee Simple Determinable

The answer is a fee simple determinable. A determinable fee estate has a special limitation and may end automatically if there is noncompliance with that stipulation. Language such as so long as or while characterize this estate. The hospital’sownership of the lot would come to an end if the property were to be no longer used for hospital purposes, and the lot would immediately become the property of the former owner or that owner’s heirs

Question 24

Your neighbors use your driveway to reach the garage on their property. Your attorney explains that the neighbors’ real estate includes an easement appurtenant giving them the right to do this. Your property is

A. the leasehold interest.
B. the dominant tenement.
C. the servient tenement.
D. the license property.

Answer 24

The Servient tenement

The answer is the servient tenement. Your driveway is on the property over which the easement runs and is the servient tenement. The adjacent property owned by the neighbors is known as the dominant tenement.

Question 25

A license is an example of

A. an easement appurtenant.
B. an encroachment.
C. a personal privilege.
D. a restriction.

Answer 25

A Personal Privilege

The answer is a personal privilege. A license is a personal, revocable right of use. It is temporary in that it can be withdrawn at will by the one who issued it.

Question 26

An easement appurtenant

A. terminates with the sale of the property.
B. is a right-of-way for a utility company.
C. is revocable.
D. runs with the land.

Answer 26

Runs with the land.

The answer is runs with the land. An easement appurtenant can only be created if the adjacent properties involved have different owners. This easement runs with the land and transfers with the deed.

Question 27

A property on Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government’s power of

A. escheat.
B. possibility of reverter.
C. eminent domain.
D. taxation.

Answer 27

Eminent Domain

The answer is eminent domain. Eminent domain is the right of the government to acquire privately owned real estate for public use

Question 28

Which of the following is an example of governmental power?

A.Escheat
B.CC&Rs
C.License
D.Lis pendens

Answer 28

Escheat

The answer is escheat. The four governmental powersthat limit private rights to ownership of land are
represented by the acronym PETE (police power,eminent domain, taxation, and escheat)

Question 29

A property owner who has the legal right to use a neighbor’s land holds

A. an estate in land.
B. an easement.
C. a police power.
D. an encroachment.

Answer 29

An easement

The answer is an easement. An easement is a right of use or passage, not of ownership—nor is it is an example of encroachment or the exercise of a government’s police power.

Question 30

Which of the following is a legal life estate?

A. Leasehold
B. Fee simple absolute
C. Homestead
D. Determinable fee

Answer 30

Homestead

The answer is homestead. Homestead rights are granted by statute in some states to provide some protection to debtors and their families against the execution of judgment liens on their homes by the action of unsecured creditors

Question 31

An owner conveys ownership of a residence to a church but reserves a life estate in the residence. The future interest held by the church is

A. a pur autre vie.
B. a remainder.
C. a reversion.
D. a leasehold.

Answer 31

A remainder

The answer is a remainder. Until the owner dies, the church will have a remainder interest. The owner reserved a life estate. The church may legally sell its future (remainder) interest, even during the lifetime of the life tenant.

Question 32

The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbor’s property. The fence is an example of

A. a license.
B. an encroachment.
C. an easement by necessity.
D. an easement by prescription.

Answer 32

An enroachment

The answer is an encroachment. To build over a property line is to encroach on the property of another.

Question 33

A homeowner may be allowed certain protection from judgments of creditors as a result of the state’s

A. littoral rights.
B. curtesy rights.
C. homestead rights.
D. dower rights.

Answer 33

Homestead Rights

The answer is homestead rights. Homestead rights are granted by statute in some states to provide some protection to debtors and their families against the execution of judgment liens on their homes by the action of unsecured creditors

Question 34

A person has permission from a property owner to hike on the owner’s property during the autumn months. The hiker has

A. an easement by necessity.
B. an easement by condemnation.
C. riparian rights.
D. a license.

Answer 34

A license

The answer is a license. Such permission given to an individual is personal, nontransferable, and can be withdrawn.

Question 35

A homestead is a legal life estate in real estate that is

A. leased by renters.
B. occupied as the family home.
C. used as a vacation home.
D. a secondary residence.

Answer 35

Occupied as the family home

The answer is occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgments for debts other than those secured by the property.

Question 36

Because a homeowner failed to pay the real estate taxes on time, the taxing authority imposed a claim against the homeowner’s property. This claim is known as

A. a deed restriction.
B. a lien.
C. an easement.
D. a reversionary interest

Answer 36

A lien.

The answer is a lien. Unpaid real estate taxes are a lien on the property because they are a charge against the property that provides security for a debt or an obligation of the property owner.

Question 37

The type of easement that is a right-of-way for a utility company’s power lines is

A. an easement in gross.
B. an easement by necessity.
C. an easement by prescription.
D. a nonassignable easement.

Answer 37

An Easement in Gross

The answer is an easement in gross. Easements in gross are individual rights to use someone’s land, as in the case of the utility company. A commercial (but not a personal) easement in gross can be assigned, conveyed, and inherited.

Question 38

The process by which government takes control of a property after the owner dies without a will or lawful heirs is

A. escheat.
B. lis pendens.
C. condemnation.
D. taxation.

Answer 38

Escheat

The answer is escheat. Escheat is a process by which the state may acquire privately owned real or personal property. State laws provide for ownership to transfer, or escheat, to the state when an owner dies and leaves no heirs (as defined by the law) and there is no will or living trust instrument that directs how the real estate is to be distributed.

Question 39

A landowner has divided a large parcel of land into smaller parcels and has recently sold a tract near a nature preserve that is landlocked and cannot be entered except through one of the other tracts. The buyer of that property will probably be granted what type of easement by court action?

A. Easement by necessity
B. Easement in gross
C. Easement by prescription
D.Easement by condemnation

Answer 39

Easement by Necessity

The answer is easement by necessity. An easement by necessity arises when there is no ingress or egress (entry or exit) from one piece of property without crossing over a parcel of land owned by another. An easement of necessity is not merely for convenience or imposed to validate a shortcut.

Question 40

An easement is terminated by

A.transfer of the servient tenement to a new owner.
B.creation of a prescriptive easement.
C. transfer of the dominant tenement to a new owner.
D.release of the right of easement to the servient tenement.

Answer 40

Release of the right of easement to the servient tenement

The answer is release of the right of easement to theservient tenement. An easement is terminated whenthe owner of the dominant tenement releases thatright to the owner of the servient tenement.