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29 Cards in this Set
- Front
- Back
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When parties own property as tenants in common, each owner
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HAS OWNERSHIP OF NO SPECIFIC PART OF THE PROPERTY. Tenants in common have an undivided interest in the entire property. Survivorship and unity of time and title apply to joint tenants.
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A title search for a property under contract has revealed several outstanding liens against the property. Which of the following liens has the highest priority?
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A REAL ESTATE TAX LIEN FOR THE CURRENT YEAR. The property tax lien has priority over previously recorded liens.
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A broker who is the agent of the buyer should do which of the following?
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ADVISE THE BUYER IF THE LISTING PRICE OF THE SELLER'S HOUSE IS UNREALISTIC. As part of the fiduciary duties owed to a principal, an agent for the buyer should disclose to the buyer if the property is overpriced.
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All of the following are properly described as an improvement EXCEPT
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TRADE FIXTURES. Trade fixtures can be attached to a building and appear as improvements, but they are legally permitted to be removed and are considered personal property.
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New home warranties cover everything EXCEPT
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STRUCTURAL DAMAGE. Structural damage, which is created by outside forces, is not covered, while structural defects from poor workmanship or material failing would be covered
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A homeowner applies to the municipality for permission to open an adult daycare facility in his neighborhood. What may he be granted that would allow him to do this?
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CONDITIONAL-USE PERMIT. A conditional-use permit is usually granted to a property owner to allow a special use of property that is defined as an allowable conditional use within that zone.
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Upon the death of a life tenant, the holder of the remainder estate will have which type of estate?
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FEE SIMPLE ABSOLUTE ESTATE. Upon the death of the life tenant, the estate either returns to the grantor/reversionary interest or goes to the remainderman. In either case, the estate will be a fee simple absolute.
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Which is an example of voluntary alienation?
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DEED. Voluntary alienation means the property was freely given. In a deed, the grantor willingly transfers the title to the grantee. Escheat and eminent domain are examples of involuntary alienation. Leasing is not the transfer of property
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What is the principal difference between an estate for years and an estate from period to period?
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ESTATE FROM PERIOD TO PERIOD HAS NO EXPIRATION DATE. An estate from period to period, or periodic tenancy, does not have a specific expiration date. An estate (tenancy) for years has specific beginning and end dates.
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A couple is buying a house together. He wants his children from a previous marriage to inherit his share of the property. The couple should hold title as
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TENANTS IN COMMON. Because he wants his ownership to pass down to his children, they should take title as tenants in common, and he should write a will for the property to pass to his children.
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All of the following are variances EXCEPT
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A RETAIL STORE IN A RESIDENTIAL NEIGHBORHOOD. A retail store in a residential neighborhood is a nonconforming use. Fences built beyond six feet high and building into a setback or over height limits are all examples of variances.
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What is a lease that ends on a specified date without the requirement of a notice?
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The answer is ESTATE FOR YEARS. An estate for years is an interest for a certain, exact period of time in property leased for a specified consideration.
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Which of the following is FALSE about easements?
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AN EASEMENT CAN BE REVOKED. An easement must be in writing and is often paid for, and an easement in gross only has a servient party.
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In a special warranty deed, the grantor promises
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TO DEFEND THE TITLE AGAINST ANY CLAIMS OR ENCUMBRANCES THAT MAY HAVE ARISEN DURING THE GRANTOR'S PERIOD OF OWNERSHIP. A special warranty deed has only one promise: while the seller owned it, the seller did not cloud the title. The seller only defends against clouds on title that may have occurred during the seller's ownership period.
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At the end of a life estate, the holder of the remainder estate has what type of estate?
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FEE SIMPLE ABSOLUTE. Once the life tenant dies, the person holding either the remainder estate or the reversionary interest will have all of the other rights restored to the holder's control. Controlling the entire bundle of rights is fee simple absolute.
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Which of the following statements is TRUE about a condominium unit?
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EACH OWNER OWNS AND FINANCES THEIR INDIVIDUAL UNIT. Condominium owners own and can finance their own unit. Taxes are based on the value of each unit plus each owner's share of common elements. Association insurance covers the common elements and not each unit's contents. A proprietary lease is part of cooperative ownership where there is not ownership of the individual unit.
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Which of the following is an example of involuntary alienation?
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ADVERSE POSSESSION. Involuntary alienation means a property owner is forced to give ownership to all or a portion of the property involuntarily. Of the answer choices, only adverse possession represents such a case. When another individual meets the adverse possession criteria for the required length of time, the individual can go to court and obtain title to the property.
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In a legal description, the terms lot and block relate to
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A RECORDED SUBDIVISION MAP. Lots and blocks are found in subdivisions. They are platted or mapped.
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A property manager is hired to manage a property while the owner is overseas for two years. The property manager is a(n)
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GENERAL AGENT. A property manager usually represents the principal in a broad range of matters and is typically considered a general agent.
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Title is held by three owners as joint tenants. When Resident 1 and Resident 2 die, title is now held by
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RESIDENT 3 IN SEVERALTY. Because the ownership was joint tenancy, when any person dies, that person's share of the estate goes to the surviving joint tenants. Resident 3's two partners died, so Resident 3 is the sole owner (severalty).
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How are the length and terms of a home warranty for a resale property determined?
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CONTRACT. The terms of home warranties are created by contract.
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In the absence of a notice to terminate, a lease that continues automatically is a
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PERIODIC TENANCY. Periodic tenancy is an automatically renewing lease unless one party terminates.
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A buyer who owns the property in equity has a(n)
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EXECUTORY CONTRACT. During any point in the executory contract (time period between signed offer to title transfer), the buyer has equitable title (also called the owner in equity).
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A deed conveying land to two parties on a 1/3 and 2/3 share basis establishes a
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TENANCY IN COMMON. Only tenants in common can have unequal shares of ownership.
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A property owner wants to use water from a river that runs through the property to irrigate a potato field. To do so, the owner is required to submit a permit request describing the beneficial use planned for the water. If the owner receives a permit, it can be assumed that this property owner's state relies on which rule of law?
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DOCTRINE OF PRIOR APPROPRIATION. In many states where water is in relatively short supply, statutes have passed authorizing a system of prior appropriation in which owners downstream do not necessarily have to wait for what's left after those upstream have drawn their fill. Priority—who gets to appropriate water first—is instead established by date of approved filing and continued conformity with any rules and limitations on use imposed by the jurisdiction.
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On a buyer's closing statement, the buyer is debited for
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THE SALES PRICE. The sales price is always a buyer's debit (charge). All of the others help pay for the property and are credits to the buyer.
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A lessee has the greatest protection with a(n)
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The answer is ESTATE FOR YEARS. An estate for years locks the holder into the lease for a specific period of time, which cannot be terminated without cause, even if the property is sold.
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A shop owner has operated a neighborhood grocery store for the last 30 years. His store is the only retail property in the area zoned as residential. What is the store an example of?
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The answer is NONCONFORMING USE. If a lot or an improvement does not conform to the zoning use because it existed before the enactment of the ordinance, it may be allowed to continue legally under certain restrictions.
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An example of specific performance for breaching a real property purchase contract is
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The answer is A COURT ACTION TO FORCE COMPLIANCE WITH THE CONTRACT. Specific performance is a legal remedy in which a court orders someone who has breached a contract to actually perform the contract as agreed, rather than simply paying monetary damages to the other party.
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