Deck 5: Types of Ownership

Question 1

A owns a fee simple absolute estate.A later grants a life estate to B and when B dies to C.A now owns a reversionary interest.

Answer 1

False

Question 2

Property classified as community property may not be partitioned.

Answer 2

False

Question 3

Amy conveyed a deed to Carrie that created the following estates: "To Carrie provided that if the property is used for any uses other than recreation, grantor shall have the right to reenter the property and cause the grantee to forfeit the estate." Amy owns a ________ and Carrie owns a __________.

A)possibility of reverter/fee simple subject to a condition subsequent.
B)right of entry/fee simple determinable.
C)reversion/fee tail.
D)remainder/fee simple absolute.
E)right of entry/fee simple subject to a condition subsequent.

Answer 3

E

Question 4

A joint tenancy requires all of the following "unities" except the unity of:

A)severance.
B)time.
C)interest.
D)possession.
E)title.

Question 5

The fee simple defeasible corresponds to what the average person thinks of today as ownership of real property.

Question 6

A fee simple absolute:

A)can be inherited.
B)is subject to government regulations.
C)provides ownership of the earth below and the sky above the boundaries of the owner's land.
D)all of the above.
E)none of the above.

Question 7

The most important characteristic of the joint tenancy is the right of survivorship.

Question 8

A buyer of real property who wishes to receive the best interest possible would prefer a fee simple absolute over a fee simple defeasible.

Question 9

Florian owns a life estate in Blackacre and Walter owns a remainder interest.

A)Walter must pay the annual taxes and Florian the interest on any debts on Blackacre.
B)if the county charges Blackacre a curb and sidewalk assessment, only Walter would have to pay it.
C)Florian, since he presently occupies Blackacre, must by law pay the insurance on any buildings.
D)Florian would have to pay for ordinary repairs, such as painting or window replacements and Walter would have to pay for extraordinary repairs such as replacing a furnace.

Question 10

Sonny and Cher have been married for forty years and live in Nevada, a community property state.Before their marriage, Sonny's only property was a winery in Pahrump, Nevada, worth 1 million dollars while Cher had 5 million dollars worth of property, including a ranch in northern Nevada.During their marriage Sonny and Cher accumulated an additional 6 million dollars worth of property, including 3 million dollars worth of property Sonny inherited from his uncle.The total amount of community property held by Sonny and Cher is:

A)$6 million.
B)$3 million.
C)$7 million.
D)$12 million.
E)$11 million.

Question 11

Which of the following is not a future estate?

A)reversion.
B)remainder.
C)right of entry.
D)defeasible fee.
E)executory interest.

Question 12

A and B are joint tenants.A conveys his interest to C.B and C are now tenants in common.

Question 13

A tenancy in common, like a joint tenancy or tenancy by the entirety, can be created only by will or deed.

Question 14

The key factor necessary to establish a partnership is the existence of a functioning business

Question 15

In a trust arrangement, the beneficiary owns equitable title to the trust property.

Question 16

Estates generally fall into two categories: fee estates and freehold estates.

Question 17

The following is (are)considered a freehold estate(s):

A)fee simple absolute.
B)fee simple defeasible.
C)life estate.
D)all the above.
E)none of the above.

Question 18

Which of the following forms of ownership is the least desirable for person seeking to protect her personal assets?

A)General partnership.
B)Limited partnership.
C)Limited liability company.
D)Corporation.
E)Real Estate Investment Trust.

Question 19

A tenancy by the entirety:

A)can only be created between husband and wife.
B)can only be terminated by the joint action of the husband and wife.
C)can only be seized by creditors if the debt was owed by both husband and wife.
D)All of the above.
E)None of the above.