Utah Real Estate Exam 1 - I

Question 1

Many states determine the order of water rights according to which users of the water hold a recorded beneficial use permit. This allocation of water rights
is determined by:

Answer 1

the doctrine of prior appropriation.

Question 2

The right to control one’s property includes all of the following EXCEPT:

Answer 2

the right to exclude the utilities meter reader.

Question 3

Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties’ expressed intent?

Answer 3

Tenancy by the entireties is a form of ownership that husbands and wives can choose or create by deciding to do so and declaring it as such in contracts and deeds. Tenancy in common is put in motion by state law. Community Property is a law of ownership that exists in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Utah, Washington and some other states. Tenancy by the Entireties is an estate that is recognized in some states between husband and wife, who have
equal right of possession and enjoyment during their joint lives and with the right of survivorship–that is when one dies, the property goes to the surviving tenant. (In many states, if couples do not specify
“Joint Tenancy,” this form of ownership will be automatically assumed.) Tenancy in Common is a type of joint ownership by parties NOT married, that allows a person to sell his share or leave it in a will without the consent of the other owners. If a person dies without a will, his share goes to his heirs, not to the other owners.

Question 4

Which of the following is/are considered to be personal property?

Answer 4

The concept of personal property typically comes
into play at the time of sale. Things that are part of the house–
bathroom fixtures, fireplaces, carpeting and such– go with the sale. (Unless specifically excluded, as can happen in the case of a dining room chandelier or one or two other objects with which the owners have an emotional attachment.) Furniture, rugs, lamps and other portable items that are not “nailed down” constitute personal property and are not included in the sale.

Question 5

The word “improvement” would refer to all of the following

EXCEPT:

Answer 5

The term “trade fixture” refers to an item installed
by a tenant in a rented commercial property that he or she removes at the end of the occupancy. More on this topic follows.

Question 6

All of the following are physical characteristics of land EXCEPT:

Answer 6

Scarcity is a fundamental economic concept that
holds that the rarer and more desirable something is, the more valuable it will be. For example, professional athletes are highly paid because only the smallest percentage of people have the ability to perform at that level. Land is “scarce” because there is a finite amount available and, as Will Rogers once said, “They
ain’t making any more of it.”

Question 7

Certain items on the premises that are installed by the tenant and are related to the tenant’s business are called:

Answer 7

The term is usually applied to a commercial tenant
and refers to items installed in connection with his or her business, such as stoves and refrigerators in a restaurant or display cases in a retail shop.

Question 8

Personal property includes all of the following EXCEPT:

Answer 8

“Chattel” is a legal term that means personal prop-
erty. Emblements and fructus industriales refer to profit from crops that are grown as a result of a person’s labor, such as corn, as opposed to those that occur naturally, such as grass or minerals. By the custom of English common law, they are considered personal property. By contrast, a fixture is considered
attached to a property and thus part of the structure.

Question 9

A person who has complete control over a parcel of real estate is said to own a:

Answer 9

All the other options have conditions attached. A
leasehold estate is, as the name implies, leased property. Similarly, a life estate gives a person ownership or control of a property only for the duration of his or her natural life. ”Defensible estates” give a person or entity control over a property only so long as certain conditions are met or avoided. For example, a
community might be deeded a property on the condition that it be used only for building a school, or land willed to a child on the condition it never be used for commercial development. If the community tries to use the property for a recreation complex or the heir tries to sell to a retail developer, control would
automatically revert to another party and the deed would become void.

Question 10

A portion of Wendell’s building was inadvertently built on

Ginny’s land. This is called an:

Answer 10

The principal attributes of an encroachment are: 1)
It is accidental and 2) it involves only part of a structure. Typically, the issue would be resolved by selling Wendell an easement or a lease or, if practical, actually moving the structure.

Question 11

The purchase of a ticket for a professional sporting event

gives the bearer what?

Answer 11

Easements grant access, not use. Commercial li-
censes, such as those required to sell beverages, souvenirs or services, cover extended periods. Although tickets to sporting events, concerts, shows and the like are technically licenses, they differ from most in their degree of restriction. For example, a concert ticket does not give the bearer the right to sit anywhere he or she chooses or wander backstage to meet the
performers.

Question 12

If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, what happens?

Answer 12

“Dominant” and “servient” tenements involve two
adjacent properties in which an easement is involved. For example, let’s say Bridle Creek Farms and Barnstable Farms are separate parcels divided by a country lane that provides access to the county road system. The lane is owned by Bridle Creek, but the deeds of both properties stipulate that Barnstable Farms shall have unrestricted access for the purpose of accessing county roads. That access is an easement. Thus, if the owner of Barnstable Farms buys Bridle Creek Farms, the need for the easement disappears.

Question 13

Homeowner Ginny acquired the ownership of land that was deposited by a river running through her property by:

Answer 13

Accretion means the addition to a parcel of land by
sand or soil deposits due to the action of a river or other body of water over time. Avulsion refers to the loss of land as a result of its being washed away by sudden or unexpected action of nature, such as a flash flood that re-routes a river.

Question 14

The rights of the owner of property located along the banks of a river are called:

Answer 14

“Littoral” and “prior appropriation” are different
kinds of water rights: in the first case, navigation rights to an ocean or other large body of water; in the second, the right to use a water source for irrigation. A hereditament is any inheritable property.

Question 15

The local utility company dug up Frank’s garden to install a natural gas line.
The company claimed it had a valid easement and proved it through the county records. Frank claimed the easement was not valid because he did not know about it. The easement:

Answer 15

Easements grant only access, not ownership, use or
occupancy rights. Further, that access is generally for the benefit of the property owner, such as maintaining utilities or sidewalks. As such, they, ”Attach” to a deed or lease and remain in effect, until specifically lifted.

Question 16

Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what?

Answer 16

Granting the use of property for a defined period for
a specific purpose is almost always a form of licensing. Easements grant only access, not ownership, use or occupancy rights. Further, that access is generally for the benefit of the property owner, such as maintaining utilities or sidewalks

Question 17

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

Answer 17

An “easement appurtenant” allows the holder of
one property to benefit from another’s. In this case, your property is “servient” because it is the one burdened by the easement while your neighbor’s is Dominant” since it is the one that benefits.

Question 18

Quintin owned two acres of land. He sold one acre to Frank and reserved for himself an appurtenant easement over Frank’s land for ingress and egress. Frank’s land:

Answer 18

Frank’s land interest is the one burdened by the

easement; therefore it is the servient property.

Question 19

Ginny owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake.
Which

Answer 19

Appurtenant easements afford the most protection
since they are generally a permanent feature of the property. Thus, in the case of sale, the lake access passes to any new owners. By contrast, an “easement in gross” is between two individuals, which would severely limit the attractiveness and value of the property if the original owner wished to sell.

Question 20

Sam and Nancy bought a store building and took title as

joint tenants. Nancy died testate. Sam now owns the store:

Answer 20

Joint tenancy means that two parties have an undi-
vided interest in a particular property and, upon the death of one party, full ownership automatically goes to the survivor. Despite the way it sounds, “in severalty” means as sole owner.

Question 21

When real estate under an estate for years is sold, what happens to the lease?

Answer 21

Tenancy for years is the common form of rental

agreements and binds all future owners for the term of the lease.

Question 22

Tenancy for years is the common form of rental

agreements and binds all future owners for the term of the lease.

Answer 22

This is the distinguishing characteristic that differentiates cooperative from condominium ownership. Although often confused, a condominium owner holds title to his individual unit. A co-op owner, on the other hand, is technically a renter. It’s his stock in the corporation holding title to the property that gives him the right to lease the unit as well as sell that right to another.