Deck 24: Real Property

Question 1

When a tenant in common dies, his interest in the property does not automatically transfer to the other tenants in common.

Answer 1

True

Question 2

A deed which provides notice to the public at large about the grantee's property interest is called a recorded deed.

Answer 2

True

Question 3

Which of the following factors is most significant in determining whether an item of personal property has become a fixture?

A) The extent of injury to the property by its removal.
B) The value of the item.
C) Actual physical attachment to real property.
D) The buyer of the item.

Answer 3

A

Question 4

Which of the following characterizes a tenancy in common?

A) Each tenant has equal right to possess and use the property.
B) The tenants must be a married couple.
C) It grants the right of survivorship.
D) Tenants are not allowed to divide the property.

Question 5

A warranty that amounts to a guarantee that the house is free of latent defects that would render it unsafe or unsuitable for human habitation is called implied warranty of habitability.

Question 6

One requirement of a joint tenancy is that the co-owners must be married.

Question 7

Homer and Marge bought Blueacres as tenants in common with equal shares of ownership. One year later, Homer died, leaving a will in which he left his interest in Blueacres to his son, Bart. Under these circumstances:

A) Marge will acquire complete ownership of the property.
B) Marge and Bart own the property as tenants in common.
C) Bart will be considered Marge's tenant on rent.
D) Marge and Bart are co-owners, but Marge has the right to exclusive possession.

Question 8

In community property states, land acquired during marriage will be deemed community property.

Question 9

Alex has executed a deed in favor of Baxter which conveys in his favor whatever title he has at the time he executes the deed. This deed is called a warranty deed.

Question 10

An exclusive right to sell listing means that a broker receives a commission on a sale of the property even if the seller found the buyer.

Question 11

Courts have become increasingly inclined, in recent years, to hold that owners of commercial property owe persons lawfully on the property a duty to take reasonable steps to protect them against the foreseeable criminal acts of third parties.

Question 12

In order to acquire title to property by adverse possession, the adverse possessor must continually use the property for a statutorily prescribed period of time.

Question 13

Remote control devices used for automatic garage doors are examples of fixtures.

Question 14

The term _____ is used to describe the nature of a person's ownership interest in real property.

A) tenancy
B) fixture
C) estate
D) easement

Question 15

A policy which obligates the grantor for reimbursing to the grantee for loss, if the title proves to be defective is called the policy of abstract title.

Question 16

Real property includes land but does not include residential buildings and permanent structures.

Question 17

A fee simple absolute gives a person the right to possess and use property for a time measured by his or another person's lifetime.

Question 18

A restrictive covenant may no longer be valid if the circumstances surrounding the need for the covenant drastically change.

Question 19

The power of eminent domain enables a private citizen to sue neighbours for any kind of nuisance.

Question 20

In the sale of a home, which of the following would likely be treated as a fixture?

A) A couch to match the upholstery
B) A ceiling fan
C) A lawn mower
D) A new console table

Question 21

Ivor, Queen, and Lear own a building as joint tenants with the right of survivorship. Ivor donated his interest in the building to Day Charity by executing and delivering a deed to Day. Both Queen and Lear refused to consent to Ivor's transfer to Day. Subsequently, both Lear and Queen died. After their deaths, Day's interest in the building consisted of:

A) total ownership due to the deaths of Queen and Lear.
B) no interest because Queen and Lear refused to consent to the transfer.
C) a 1/3 interest as a joint tenant.
D) a 1/3 interest as a tenant in common.

Question 22

Which of the following is true of a joint tenancy?

A) It is created by a corporation or a group of persons.
B) It requires that the tenants be married to each other.
C) Selling of property by a joint tenant leads to creation of a tenancy in common.
D) A joint tenant can sell but not gift his part of the property.

Question 23

Archibald and Priscilla, an unmarried couple, co-owned a house. Priscilla automatically became the owner of the house upon Archibald's death. What kind of a co-ownership did they have?

A) Tenancy in common
B) Tenancy by the entirety
C) Joint tenancy
D) Cooperative ownership

Question 24

Scrooge's property contains a restrictive covenant that allows only residential use of the land to his inheritors. Over the years, all the adjoining areas of land have become industrial areas. Scrooge's great-grandson, the present owner of his land, wants to set up a small manufacturing unit there. Will he be able to do so?

A) Yes, since he is the present owner.
B) Yes, because the circumstances have changed completely.
C) No, the restrictive covenant is completely binding.
D) No, there cannot be a waiver because Scrooge is dead.

Question 25

When taxes assessed on real property are not paid when due, they become a(n) _____ on the land.

A) easement
B) lease
C) loan
D) lien

Question 26

Green and Nunn own a 40-acre parcel of land as joint tenants with the right of survivorship. Nunn wishes to sell the land to Ink. If Nunn alone executes and delivers a deed to Ink, what will be the result?

A) Green will retain a ½ undivided interest in the 40-acre parcel, and will be unable to set aside Nunn's conveyance to Ink.
B) Ink will obtain an interest in ½ of the parcel, or 20 acres.
C) Ink will share ownership of the 40 acres with Green as a joint tenant with a right of survivorship.
D) The conveyance will be invalid because Green did not sign the deed.

Question 27

Mary wants to buy an apartment in a building that is owned by ABC Corporation. Mary then purchases stock in ABC Corporation and holds her apartment under a proprietary lease. Under which ownership has Mary acquired title to such an apartment?

A) Condominium Ownership
B) Co-ownership in form of tenancy in partnership
C) Ownership acquired by gift
D) Cooperative Ownership

Question 28

Which of the following typically characterizes community property?

A) Partners get a share depending on who earned the property.
B) One partner may convey property without the other's approval.
C) It is property acquired during marriage.
D) Inheritance is covered under community property.

Question 29

Which of the following grants a person unconditional power to dispose of the property during her lifetime or upon her death?

A) License
B) Easement
C) Fee simple absolute
D) Profit

Question 30

In order to create an easement by prescription a person must, in addition to fulfilling other requirements, have:

A) recorded the easement immediately upon its creation.
B) received the express or implied consent of the true owner.
C) used the land of another out of necessity.
D) used the land of another openly, continuously, and adverse to the owner's rights.

Question 31

A(n) _____ is a right to enter another person's land and remove some product or part of the land

A) profit
B) estate
C) easement
D) covenant

Question 32

Which of the following is a true statement about easements?

A) It gives the right to make certain uses of another's property.
B) They are more informal than licenses.
C) It pertains to personal rather than real property.
D) They cannot pass with the land.

Question 33

Richard sells land to Jones but reserves the mineral rights to the property as well as an easement to enter the land to remove the minerals. Richard has acquired easement by:

A) prescription.
B) grant.
C) reservation.
D) implication.

Question 34

Which of the following is sufficient for a gift of real property to be valid?

A) Properly executed deed
B) Possession of the property
C) Actual possession of the property
D) An oral declaration

Question 35

Jane and her brother each own a ½ interest in certain real property as tenants in common. Jane's interest:

A) is considered personal property.
B) will pass to her brother by operation of law upon Jane's death.
C) will pass upon her death to the person Jane designates in her will.
D) may not be transferred during Jane's lifetime without her brother's consent.

Question 36

Adams issues license of his land to Crowe for planting flower trees only. He makes it clear to Crowe in the deed that he may not take undue advantage of the license by using it for commercial purposes. However, after a few days, Adams realizes that Crowe has made a profit by selling flowers, without his knowledge. Can Adams recover the amount which Crowe collected from sale?

A) Yes because, Adams is the owner of the land.
B) Yes because, Adams' restrictions were clear.
C) No because, Adams' has already licensed Crowe to use his land.
D) No because, Adams does not possess any rights until the license expires.

Question 37

What distinguishes a joint tenancy from a tenancy in common?

A) Marriage between tenants
B) Right of survivorship
C) An easement by reservation
D) A bargain and sale deed

Question 38

Which of the following requires tenants to be married to each other?

A) Tenancy in partnership
B) Tenancy in common
C) Joint tenancy
D) Tenancy by the entirety

Question 39

In order to "run with the land", a restrictive covenant must essentially:

A) be related to any disputed property.
B) have a number of claimants to an estate.
C) be binding on the original parties and their successors.
D) be a joint tenancy.

Question 40

An easement by prior use is created by:

A) grant.
B) prescription.
C) reservation.
D) implication.

Question 41

Amber Blue owns a small hotel of the "bed & breakfast" variety. Hunter Greene, a tenant at Blue's bed & breakfast, sustained severe physical injuries when an intruder broke into Greene's room and attacked him with a baseball bat. The intruder neither was an employee of Blue's nor otherwise had any connection with the bed & breakfast. Green filed a tort action against Blue in an effort to collect damages for the medical expenses, lost earnings, and pain and suffering he experienced as a result of the intruder's attack. Greene argued that owners of commercial property such as a bed & breakfast are liable, as a matter of law, whenever guests are injured while on the premises. Blue argued that such property owners cannot be held liable when the guest's injuries were directly (and criminally) inflicted by a third-party attacker. Evaluate the arguments made, respectively, by Greene and Blue. Explain your supporting reasoning.

Question 42

Which of the following is true of zoning ordinances?

A) They are issued only by federal authorities.
B) There are no remedies against them.
C) They stem from the power of eminent domain.
D) They regulate the use of real property.

Question 43

Doug Dillard owns a house that he presently rents out to a family. Dillard would like to convert the house into commercial space (for a store or offices), because the rent he could charge for the property as commercial space would exceed what he is realistically able to charge for the house as a dwelling. The house is located, however, in an area zoned by the city for residential uses only. This means that Dillard cannot convert the house to commercial space unless the city grants him a zoning variance, something the city has refused to do. Dillard has therefore sued the city on the theory that the zoning ordinance and the refusal to grant a variance amount to a taking of his property and entitle him to just compensation under the Fifth Amendment. Will Dillard win his case? Why or why not?

Question 44

Bari deeds Blackacre to Adam, Charlie, and David as joint tenants with right of survivorship. Adam then sells his interest in Blackacre to Sally. Soon after, Charlie dies. Who now owns Blackacre? In what form(s)? Discuss.

Question 45

Which of the following is a history of what the public records show regarding the passage of title to, and other interests in, a parcel of real property?

A) Recorded deed
B) Title insurance
C) Abstract of title
D) Quitclaim deed

Question 46

A broker operating under a(n) _____ contract is entitled to a commission only if he was the first to find a ready, willing, and able buyer.

A) open listing
B) exclusive right to sell
C) exclusive agency listing
D) exclusive right

Question 47

A deed where the grantor warrants against (and agrees to defend against) title defects and encumbrances that arose after she acquired the property is called:

A) a special warranty deed.
B) a quitclaim deed.
C) a general warranty deed.
D) an invalid deed.

Question 48

Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on:

A) easement.
B) a quitclaim deed.
C) adverse possession.
D) fee simple absolute.

Question 49

Homeowner Ann Jameson entered into a 90-day exclusive right to sell listing agreement with a real estate broker, Bill Boor. One week later, Jameson sold the house to her neighbor, Jerry Mateo, who learned that the property was for sale when he saw the "for sale" sign in Jameson's yard. Boor contends that he is entitled to a commission on the sale. Is Boor entitled to a commission? Why or why not?

Question 50

Nancy, aged 70, has a vacant plot adjacent to her house which she intends to bequeath to her grandson Roy upon her death. However, an important railroad project is being undertaken nearby and the local authorities have informed Nancy that the new railroad will cover her vacant lot. They have also promised her compensation in return. Can the government take her property?

A) No, because the plot belongs to her.
B) No, because she already intends to bequeath the land to someone.
C) Yes, because the government has eminent domain.
D) Yes, because the government is the actual owner of all private property.

Question 51

Sally seeks to list her home with Barry, a real estate broker. Sally and Barry agree that Barry will receive a commission if the home sells within 90 days, regardless of who actually causes the sale of the property. Sally and Barry have a(n):

A) open listing contract.
B) exclusive agency contract.
C) exclusive right to sell contract.
D) restrictive covenant contract.

Question 52

Why must real estate sales contracts be evidenced in writing and signed by the party to be charged in order to be enforceable?

A) Contracts of such property are covered under the statute of frauds.
B) Such property would otherwise not be entitled to mortgage.
C) Such property would otherwise not be entitled to insurance.
D) Such property would otherwise be liable to eminent domain.

Question 53

Melissa's home is located in small and quiet neighborhood which has been declared a residential area by the local zoning ordinances. She wants to convert her patio into a small bakery for her neighbors who have often expressed their admiration for her baking skills. Does Melissa have any solution?

A) Yes, she can take permission for a variance.
B) Yes, she can try for an amendment.
C) No, she cannot go against a zoning ordinance.
D) No, a residential zone can never be used for commercial purposes.

Question 54

Sally has been running a small but popular dance studio in her neighborhood for the last 15 years. Recently, a zoning ordinance mandated her neighborhood as strictly residential where no commercial activities could be undertaken. What is Sally's best approach to continue running her studio if she is asked to close it?

A) She should request for an amendment to the ordinance.
B) She should get her students to protest.
C) She could argue that the studio was in existence before the ordinance.
D) She does not have a choice and must close or relocate her studio.

Question 55

A purchaser of real property who wishes to receive the broadest protection with respect to the property being conveyed should obtain a:

A) bargain and sale deed.
B) general warranty deed.
C) quitclaim deed.
D) recorded deed.

Question 56

Eminent domain:

A) allows the government to acquire private property for public use.
B) allows a private citizen to sue his neighbors for nuisance.
C) instructs private citizens to ensure reasonable security of their premises.
D) prohibits discrimination in housing on the basis of race or disabilities.

Question 57

Which of the following convey whatever title the grantor has at the time he executes the deed but do not contain warranties of title?

A) Grant deeds
B) Quitclaim deeds
C) Special warranty deeds
D) General warranty deeds

Question 58

Which of the following are frequently used to cure technical defects in the chain of title to property?

A) Insurable deeds
B) Quitclaim deeds
C) General warranty deeds
D) Special warranty deeds

Question 59

Which of the following deeds uses phrases such as-"I grant", "I bargain and sell" or "I convey" property?

A) Grant deed
B) Deed of general warranty
C) Special warranty deed
D) Quitclaim deed

Question 60

Jack and Jill moved to their dream home in Rural County. One month later, Otis decided to develop the back 10 acres of his 200-acre farm (nearly all of which had consisted of corn and soybean fields) into a hog-raising operation. Unfortunately for Jack and Jill, the said back 10 acres adjoined their property. Jack and Jill claimed that the smell of the hog operation was overwhelming and that they could no longer enjoy living in their dream home. They also thought the hog operation has caused their property value to decline substantially. Rural County had no zoning regulations in effect. Under what legal theory, if any, may Jack and Jill seek legal relief? Explain.