Section 2: Ownership and Interest in Estates

Question 1

Land Ownership:
* Land has been one of the most important and desirable assets in history as wars have been fought over it, it’s bankrupted some and made billionaires out of others.

Answer 1

Land

Question 2

Land Ownership:
* Land has two types of identifiable characteristics; ______ and ______ and between those characteristics, different people will see different value.

Answer 2

Physical

Economic

Question 3

Land Ownership:
* These 7 total factors are what bring people to determine their own value of land.

Answer 3

1. Indestructibility
2. Immobility
3. Non-Homogeneous
4. Situs
5. Scarcity
6. Permanency of Investment
7. Improvements

Question 4

• These 7 total factors are what bring people to determine their own value of land:
  Physical Characteristics:
  o ______ = land cannot be destroyed.
• Its value may be destroyed by changing conditions but physically land goes on forever.

Answer 4

Indestructibility

Question 5

• These 7 total factors are what bring people to determine their own value of land:
  Physical Characteristics:
  o _____= land is physically immobile.
• It cannot be moved from one location to another.
• If I could move that house over to there, I’d buy it.

Answer 5

Immobility

Question 6

• These 7 total factors are what bring people to determine their own value of land:
  Physical Characteristics:
  o ______ = No TWO pieces of land are identical.
• Every property is unique and has its own characteristics.
• Someone is willing to pay more for that lot over that lot.

Answer 6

Nonhomogeneous

Question 7

This is 1 out of 7 total factors are what bring people to determine their own value of land:
Economic Characteristics:
o ______ = Known as an area of preference.
* Land near central park is more preferable than land near the sewer.

Answer 7

Situs

Question 8

This is 1 out of 7 total factors are what bring people to determine their own value of land:
Economic Characteristics:
o ______ = the fact that land isn’t being created anymore, fixed amount.
* Goes back to the law of supply and demand.

Answer 8

Scarcity

Question 9

This is 1 out of 7 total factors are what bring people to determine their own value of land:
Economic Characteristics:
o _____ = return on investments made in land tend to be a safe long term investing strategy.
* Many speculators have said land is the safest investment.
* Flip side, the great recession of 2007, land depreciated quickly.

Answer 9

Permanency of Investment

Question 10

This is 1 out of 7 total factors are what bring people to determine their own value of land:
Economic Characteristics:
o _____ = By improving the land, you are increasing its value.
* Even if a building is eventually replaced, the value of the land due to the infrastructure is quite high and generally goes up.
* Same can be said if a toxic waste spill occurs, the value of the land could go down and affect all areas around it.

Answer 10

Improvements

Question 11

Real Property:
* Things that transfer with a sale is usually considered ‘real property’ and transfers at _____.

Answer 11

Close

Question 12

Real Property: Real property and all that goes with it is conveyed with the written deed.
o _____ = the top of the earth, it’s trees, bushes, waters, extending down and upwards.
* It extends from the top of the surface to the middle of the earth and even upwards to the sky with no limit.

Answer 12

Land

Question 13

Real property and all that goes with it is conveyed with the written deed:
o ________= Improved assets that fall on, in or on top of the property.
* Buildings, Roads, Walkways, Antennas, parking lots, and more.

Answer 13

Improvements

Question 14

Real property and all that goes with it is conveyed with the written deed:
o _____ = occurs when the attachment becomes part of the property.
* A satellite Dish mounted, a window AC or even a solar-panels.
* Could be permanent, but leased items, (Propane Tanks).
* Rights, including the privileges that come with them are included in real property.

Answer 14

Appurtenances

Question 15

Real property and all that goes with it is conveyed with the written deed:
o _____ = known as subsurface rights, anything that is under the ground you own is yours and it is considered real property.
* It is possible to split off one’s underground rights and sell or lease.
* If you sell, you no longer retain the rights.
* If you lease, you retain the rights.
* Royalties are paid to the lessor from the lessee.
* Oil, Natural Gas, Water, Minerals, Gold (even buried waste),
* In most master planned communities developers according to the deed retain most underground rights including oil, minerals and water.

Answer 15

Underground Rights

Question 16

Real property and all that goes with it is conveyed with the written deed:
o _____ = the ownership of rights that extend above the property.
* Possible to build onto or above the property in some areas (NYC).
* Placing antennas or satellite dishes on roof tops.

Answer 16

Air Rights

Question 17

Legal Rights In Real Property:
* Ownership in REAL property delivers a _____ that BENEFIT the owner and each one represents an individual legal right.
* The transfer of these rights in the early times was displayed by the seller removing small branches from his tree and a clump of dirt from the land and giving that to the new owner.
* The ceremony would display to any and all witnesses that the land, and the real property upon it are now transferred along with the rights associated with it.

Answer 17

Bundle of rights

Question 18

Legal Rights In Real Property:
* BUNDLE of RIGHTS = set of legal rights assigned to the title holder of real property
* There are a total of 5 legal rights – easiest to remember _____ (as in a diver)
1. _____ = the right of the owner to dispose of the property.
2. _____ = the right to enjoy the property and all its fruits.
3. _____ = the right to exclude others from using the land.
4. _____ = the right to possess the land with legal title.
5. _____ = the right to control the property under legal conditions.

Answer 18

DEEP-C

1. Disposition
2. Enjoyment
3. Exclusion
4. Possession
5. Control

Question 19

Legal Rights In Real Property:
* This is one of the 5 legal rights:
REMEMBER: DEEP-C
______ = the right of the owner to dispose of the property.

Answer 19

Disposition

Question 20

Legal Rights In Real Property:
* This is one of the 5 legal rights:
REMEMBER: DEEP-C
_____ = the right to enjoy the property and all its fruits.

Answer 20

Enjoyment

Question 21

Legal Rights In Real Property:
* This is one of the 5 legal rights:
REMEMBER: DEEP-C
_____ = the right to exclude others from using the land.

Answer 21

Exclusion

Question 22

Legal Rights In Real Property:
* This is one of the 5 legal rights:
REMEMBER: DEEP-C
______ = the right to possess the land with legal title.

Answer 22

Possession

Question 23

Legal Rights In Real Property:
* This is one of the 5 legal rights:
REMEMBER: DEEP-C
_____ = the right to control the property under legal conditions.

Answer 23

Control

Question 24

Personal Property:
* Items that are of a personal nature and are typically not _____ to the real property are considered personal property but not always.
* Personal property can be valuable or invaluable depending on the situation.

Answer 24

affixed

Question 25

Personal Property:
o ______ = an individual’s personal property (another French term used in real estate)

Answer 25

Chattel

Question 26

Personal Property:
* Personal property can be broken down into one of two forms:
o _____ = a person’s personal property that can be seen, touched, held
* TV, Car, stocks, most physical possession including cash.

Answer 26

Tangible Property

Question 27

Personal Property:
* Personal property can be broken down into one of two forms:
o ______ = a person’s property that can NOT be seen, touched or held.
* Property, trademarks, rights to someone else water or oil.

Answer 27

Intangible Property

Question 28

Personal Property:
* If a person’s personal property were to somehow be affixed or attached to the real property, it would become part of the real property:
o _____ = the conversion of personal property to real property.
Example: Mobile Homes are ‘personal property’ unless they are attached to the land.
Example: You could drive the ‘home’ away, until permanently attached.

Answer 28

Affixture

Question 29

Personal Property:
* If a person’s personal property were to somehow be affixed or attached to thereal property, it would become part of the real property:
o _____ = the conversion of real property to personal property.
Example: Taking prized rose bushes from a house before selling with the intent of planting them at the owner’s new property.

Answer 29

Severance

Question 30

Personal Property:
* If a person’s personal property were to somehow be affixed or attached to thereal property, it would become part of the real property:
o _____ = the act of changing from one type of property to another
Example: Personal property cannot be included in a real estate transaction, this must be done on a separate bill of sale (Any amount over $500).

Answer 30

Conversion

Question 31

Real vs. Personal Property:
There is value in both real and personal property but what is the difference and how do you separate them for realization of value?
* _____ = land, anything under it or over it, rights, improvements and fixtures

Answer 31

Real Property

Question 32

Real vs. Personal Property:
There is value in both real and personal property but what is the difference and how do you separate them for realization of value?
* _____ = all property that is not real property.

Answer 32

Personal Property

Question 33

Real vs. Personal Property:
_____:
* There are too many instances, especially in real estate sales where one party assumes one thing and the other party has a whole different assumption.
Example: Flat Panel TV’s, Sun Shades, Drapes, and Wall Stickers.

Answer 33

Fixtures

Question 34

Real vs. Personal Property:
Fixtures:
IMPORTANT: Most disputes on what is ‘real property’ can be used by the MARIA test:
o -M = _____; how is this attached? Plugged in or nailed down?
o -A = _____; was this item made specific for the home/property?
o -R = _____; who installed the item (tenant or owner) and will it be taken when lease is over?
o -I = _____; was this item intended to be part of the property or temporary?
o -A = _____; was there a specific agreement in the lease/sale?

Answer 34

1. Method of Attachment
2. Adaptability
3. Relationship
4. Intent
5. Agreement

Question 35

Real vs. Personal Property:
Fixtures:
IMPORTANT: ** _____ fixtures are often a point of discrepancy in contracts also, since it is normally used in the establishment that was rented from someone, it is assumed to be personal.**
Too many times a deal can go bad because of the failure of all parties to agree as to what is included in the sale, so we practice making a point of declaring it to all in disclosures.

Answer 35

Trade

Question 36

Crops:
* Most would assume that a farmer grows crops on his land and all that is part of the land would _____ upon sale of the farm.

Answer 36

Convey

Question 37

Crops:
But again, there are two types of crops and it’s IMPORTANT to distinguish between them.
* _____ = the plants or crops that yield or produce the harvested crop
o Ex. Corn stalks
* _____ = the actual fruit or material that came from the plant
o Ex. The actual corn cobbs

Answer 37

Fructus Naturales
Fructus Industriales

Question 38

Crops:
_____ = the plants or crops that yield or produce the harvested crop.
o Ex. Corn stalks

Answer 38

Fructus Naturales

Question 39

Crops:
_____ = the actual fruit or material that came from the plant
o Ex. The actual corn cobbs

Answer 39

Fructus Industriales

Question 40

Crops:
 _____ = items that came from the crop and are now personal property
* The crops are planted in the earth and remain there as real property, but, the fruits, vegetables, cotton etc. is considered personal property.

Answer 40

Emblements

Question 41

_____:
* In real estate, these are things that are “Inheritable” or can be passed down.
* They can be Corporeal and Incorporeal (Real property vs Personal Property)

Answer 41

Hereditaments

Question 42

Hereditaments:
Corporeal and Incorporeal (Real property vs Personal Property):
o Corporeal = often referred to as real property that is inheritable
* A permanent ______ object that can be seen and handled
* Something that is attached to the land; buildings, trees, rivers
o Incorporeal = often referred to as personal property that is inheritable
* An _____ object that is known but not visible
* Rights, an easement, copyrights, intellectual property

Answer 42

Tangible
Intangible

Question 43

Hereditaments:
Corporeal and Incorporeal (Real property vs Personal Property)
o _____ = often referred to as real property that is inheritable.
* A permanent tangible object that can be seen and handled.
* Something that is attached to the land; buildings, trees, rivers.

Answer 43

Corporeal

Question 44

Hereditaments:
o _____ = often referred to as personal property that is inheritable
* An intangible object that is known but not visible
* Rights, an easement, copyrights, intellectual property

Answer 44

Incorporeal

Question 45

Renter’s vs Ownership Estates:
* ______: “The degree, quantity and nature of one’s interest in land”.
* Someone who has a leasehold interest in an estate does not have the same rights as the owner does with the bundle of rights.

Answer 45

Estate

Question 46

Renter’s vs Ownership Estates:
* _____ Estate = ownership of a temporary right to hold land orproperty
o This type of estate is typically called personal property.
o It’s a right of the Leasee that can be transferred (sub-leased).

Answer 46

Leasehold

Question 47

Renter’s vs Ownership Estates:
_____ = Landlord or the ‘Giv-or of the lease’ but retains bundle or rights.

Answer 47

Lessor

Question 48

Renter’s vs Ownership Estates:
_____ = Tenant or the ‘Receiv-ee of the lease’ but has some rights underthe lease

Answer 48

Lessee

Question 49

Leasehold Estates:
IMPORTANT: The owners of a leasehold estate (personal property) do NOT have all of the rights that the owner does under the bundle of rights.
IMPORTANT: Leasehold estates may have the rights of possession and enjoyment but are _____ in duration, exclusion, and control.

Answer 49

Limited

Question 50

Leasehold Estates:
There are 4 types of leasehold estates and _____ of them revolve around duration or time.

Answer 50

ALL

Question 51

Leasehold Estates:
Estate _____ = Lease has a fixed term and can be for months or even years.
o The leasehold estate is to last for a defined duration of time.
o The estate will NOT automatically renew, it is over upon end of lease.
o The death of either party will NOT terminate the lease.
o The Sale of the property will NOT terminate the lease.
o The new buyer MUST adhere to the leasehold estate terms.

Answer 51

Estate for Years

Question 52

Leasehold Estates:
_____ Estate = Duration can run from year to year or month to month basis.
o The estate goes for a continuous basis and renews automatically at the end of each year or month (whatever the lease was originally for).
o Notice must be given by either party if the estate is to end by at least the same amount of time as the lease in advance.
o The death of either party will not terminate the lease.
o The Sale of the property will not terminate the lease.

Answer 52

Periodic Estate

Question 53

Leasehold Estates:
Estate _____ = lease owners is a holdover after expiration of lease.
o Known as a holdover tenant, the lease has ended by tenant still there.
o This is against the real property (owners) wishes.
o If the leasehold estate ends and the tenant stays, but pays the owner rent, and the owner accepts, it is now a periodic estate automatically.
o The owner can evict the tenant as long as owner does not accept rent.

Answer 53

Estate at Sufferance

Question 54

Leasehold Estates:
* Estate _____ = Lease where tenant is allowed to stay for an indefinite time.
o Termination of the lease can take place by giving notice from either party.
o Because of the will of the owner, if the owner dies, the tenant must leave.
o If the tenant dies, this also terminates the leasehold estate.
o If the property is sold, the agreement ends, new owner, new will.

Answer 54

Estate at Will

Question 55

Freehold Estates:
* Owners of real property have what is known as Freehold Estate interest in an estate which signifies that the _____ belong to them (Far more powerful than a Leasehold Estate).

Answer 55

Bundle of Rights

Question 56

Freehold Estates:
* _____ = any estate which is free from hold of any entity.
o The owner of such an estate enjoys free ownership for perpetuity.
o Can use the land for any purposes.
o Must be in accordance with the law.

Answer 56

Freehold Estate

Question 57

Freehold Estates:
* There is ALWAYS a grantor and a grantee in the conveyance of freehold estates.
o _____ = the person who is receiving the estate (Receiv-ee).

Answer 57

Grantee

Question 58

Freehold Estates:
* There is ALWAYS a grantor and a grantee in the conveyance of freehold estates.
o _____ = the person who is giving the estate (Giv-or).

Answer 58

Grantor

Question 59

Freehold Estates:
* IMPORTANT: There are two types of freehold estates:
* _____ Estates and ____ Estates and within those categories are sub categories.

Answer 59

Fee

Life

Question 60

Fee Estates (Inheritable Estates):
* _____ = Highest and most desirable form of property ownership.
o Commonly known as fee simple or even fee.
o This gives the greatest possible ownership interest to the possessor.
o Owners of Fee Estates can give away, donate, will or sell their estate.

Answer 60

Fee Simple Absolute

Question 61

Fee Estates (Inheritable Estates):
_____:
o Fee Estates must have the owners action to convey (it can’t be taken from them).
* Indefeasible Fee = unable to annul, forfeit or end the estate as long as the owner abides by ALL legal rights.
o IMPORTANT: The BEST type of ownership estate to have as an owner, very few limitations.

Answer 61

Fee Simple Absolute

Question 62

• _____ = a type of fee estate which has LIMITATIONS placed upon it.
  o The limitations placed upon the estate are created at time of granting.
  o The action or inaction, something happening or not happening could cause annul.
  o These limitations or conditions SHOULD be in writing and signed by both parties.
• DEFEASIBLE = can be terminated if certain criteria is met or not met.
• ANNUL = to declare invalid (void).

Answer 62

Fee Simple Qualified

Question 63

Fee Estates (Inheritable Estates):
* _____ = as long as something is done (or not done) in deed.
o Subject to is POSITIVE action that must occur in order to continue.
o The grantee won’t have full ‘CONTROL’ from the bundle of rights.
o Typical to have a “so long as, during or while” as a statement to identify to.
o This is considered to be a ‘positive’ statement.
> If these limitations or conditions ARE met, the property would automatically revert back to the grantor or the grantors heirs.

Answer 63

Fee Simple Determinable

Question 64

Fee Estates (Inheritable Estates):
* _____ = “Subject to” is a POSITIVE action that must occur in order to continue in deed.
o If these limitations or conditions are met, the property would automatically revert back to the grantor or the grantors heirs.

Answer 64

Fee Simple Determinable

Question 65

Fee Estates (Inheritable Estates):
* What legal clause is this referring to when rights automatically transfer full ownership back to grantor.
* Example: A wealthy patron of the arts wills a property to a museum ‘so long as’ the museum continues to display art for free to the public. If the museum failed to continue displaying free art, the property would “revert automatically”’ to the heirs.

Answer 65

Reverter Clause

Question 66

Fee Estates (Inheritable Estates):
_____ = Subject to a PROHIBITED declaration in deed.
o The grantee is now bound to NOT do something to satisfy the deed.
o A prohibited action or condition is placed in the deed.
o The grantee is still missing CONTROL from the bundle or rights.
o If grantee does not follow conditions, the property could go back to the trustor but in this case, COURT ACTION is required to affirm deed restrictions.
o Typical to have the words ‘PROVIDED THAT’ or “IF…” or ‘AS LONG AS’
o This is a ‘NEGATIVE’ statement.
o Example: The parents will grant their child a condo ‘to own and to use as long as’ the child can hold down a job and doesn’t drink alcohol. If the child were to drink or get fired, the parents would have to physically retake possession, which could involve the courts and legal actions.

Answer 66

Fee Simple on Condition Subsequent

Question 67

Fee Estates (Inheritable Estates):
_____ = inheritance of property is limited to direct descendants only.
o More commonly known as “FEE TAIL”
o This is NOT legal in the State of Arizona.
o Used to be common to ensure that land or property stayed in the family.
o The tail is ‘ATTACHED to the body and can’t be SEPARATED.
o Example: An immigrant worker worked his whole life in the mines to afford an acre of land. He would never allow a wife of his son to take the property away from the family, so he set up a fee simple conditional deed “for his son and the sons of his sons only.

Answer 67

Fee Simple Conditional

Question 68

There are two types of freehold estates:
Fee Estates and Life Estates and within those categories are sub categories:
______ Estates:
* A life estate grants possession and limited ownership to a person for the duration of the recipient’s life or the life of another person.
* The main difference between a fee estate and a life estate is that a fee estate has no time limit and a life estate does.
* Because a life estate is based upon the duration of a person’s life, it is not possible to devise.

Answer 68

Life Estates

Question 69

Life Estates:
* _____ = to will or transfer real property upon one’s death

Answer 69

Devise

Question 70

Fee Estates:
* ______ Clause = automatically transfers full ownership back to grantor.

Answer 70

Reverter Clause

Question 71

Fee Estates:
* _____ = unable to annul, forfeit or end the estate as long as the owner abides by all legal rights.

Answer 71

Indefeasible Fee

Question 72

Fee Estates:
* _____ = can be terminated if certain criteria is met or not met.

Answer 72

Defeasible

Question 73

Fee Estates:
* _____ = to declare invalid (void).

Answer 73

Annul

Question 74

Conventional Life Estates:
* A life estate grants use and ownership of real property based upon someone’s life.
* Could be the duration of the recipient’s life or the life of another person.
* The holder of a life estate is a ______

Answer 74

Life Tenant

Question 75

Conventional Life Estates:
Life tenant holds rights of disposition, enjoyment, exclusion, & possession, but NOT _____.
o The holder of a life estate is a ‘Life Tenant’.
The life tenant can in fact sell or rent the property, but the buyer or tenant must know that their ‘interest’ is limited to the duration of the life estate.
o It’s nearly impossible to obtain any type of financing for a life estate.

Answer 75

Control

Question 76

Conventional Life Estates:
The life tenant must keep the property up and cannot diminish the value in the property.
o Waste = lowering the value of property by neglect.
* The main difference between a fee estate and a life estate is that a fee estate has NO ______ and a life estate does.
* IMPORTANT :Conventional Life Estates are NOT inheritable as it’s based upon the life of someone.

Answer 76

Time Limit

Question 77

Conventional Life Estates:
o _____ = lowering the value of property by neglect.

Answer 77

Waste

Question 78

Conventional Life Estates:
Estate _____ = a life estate that ends upon the death of the life tenant and reverts back to grantor or the grantors heirs.
o Example: Anna conveys a life estate to her sick sister Beth. (Anna is allowing her sister Beth to live and use the property as her own.) Upon the death of Beth, the property will revert back to Anna, or if Anna has also died, to her heirs.

Answer 78

Estate in Reversion

Question 79

Conventional Life Estates:
_____ = upon the death of life tenant, property will revert to a 3rd party.
o The third party could be an heir to the grantor or another individual or entity.
o Remainderman = a third party who has a remainder interest in real property

Answer 79

Estate in Remainder

Question 80

Conventional Life Estates:
o _____ = a third party who has a remainder interest in real property.
Example: Anna conveys a life in remainder to her sick sister Beth. Upon the death of Beth, the property reverts to the third party, the “Anna, Beth & Cara Foundation” which in this case is a charity.

Answer 80

Remainderman

Question 81

Conventional Life Estates:
 _____ = a life estate that is based upon the life of someone else.
o A grantor gives a life estate to someone for as long as a 3rd person is alive.
o It is French and it means ‘ for another’s life’.
o Upon the death of that 3rd party, the property reverts to the grantor, the heirs or a remainderman named in the deed.
o Example: Anna conveys this life estate to her sick sister Beth based upon the life of their other sister Cara. Upon the death of Cara, the property reverts back to Anna or a remainderman, named by the grantor.

Answer 81

Estate Por Autre Vie

Question 82

_________ are created by state laws and are effective upon certain events.

Answer 82

Legal Life Estates

Question 83

Legal Life Estates
* _____ = an owner’s primary residence is protected from general creditors.
o The equity exemption is to protect families and their home during hard times.
o IMPORTANT: Arizona Has Protections for these properties up to $250,000 in equity (since 2022).
o (This will be covered more in Arizona Acquisitions and Title).

Answer 83

Homestead

Question 84

Legal Life Estates:
IMPORTANT: * _____= life estate the wife has when her husband dies.
o Designed to protect the wife in a marriage to keep the home of her husband after his death, even if she did not own it, she is allowed to stay in it until her death.
o Even if the husband had devised the property to someone else.
o The State will automatically enact this ONLY after a spouse dies.
o (Arizona does NOT have this as we have Community Property Rights).

Answer 84

Dower

Question 85

Legal Life Estates:
_____ = life estate the husband has when his wife dies.
o Just the opposite of dower, if the property were the wife’s.
o Even if the wife willed the property to someone else.
o The State will automatically enact this ONLY after a spouse dies.
o (Arizona does NOT have this as we have Community Property Rights).

Answer 85

Curtsey

Question 86

Legal Life Estates:
_____ = life estate the husband has when his wife dies.
o Until the death of the spouse, these legal life estates are dormant or inchoate.
o Inchoate = just begun and so not fully formed or developed.
o (Arizona does NOT have this as we have Community Property Rights).

Answer 86

Curtsey

Question 87

IMPORTANT: Real Property:
“Land, anything under it or over it, ____, improvements and fixtures”

Answer 87

Rights

Question 88

IMPORTANT: Personal Property:
“All property that is ______ real property”

Answer 88

NOT

Question 89

Fixtures:
Shoe racks to display shoes for sale are personal property of the tenant
The walls and ground the racks sit on of course are real property (owners)
If property is left behind after a tenant’s lease is up, it becomes owners property
IMPORTANT: ______: “The acquisition of tenants property by landlord due to failure of removing the property at end of lease”

Answer 89

Accession

Question 90

Hereditaments:
_____ is from the body, so this is inheritable property that is REAL property handed down (Real Estate that is handed down).

Answer 90

Corporeal

Question 91

Hereditaments:
______ would be personal property that you may or may not be able to hold, touch, etc (Rights, patents, royalties, etc)

Answer 91

Incorporeal

Question 92

What is the difference between a Fee Estate and a Life Estate?

Answer 92

A Fee Estate is property that is owned and is the highest form of ownership. While a Life Estate is where you can ‘use and enjoy’ the property as if it was your own, but lasts only for the duration of some one’s LIFE.

Question 93

Why were homestead protections created?

Answer 93

To protect the equity in ones home from creditors. The equity is supposed to be protected from general creditors, but NOT if you waive your rights to it (mortgage, or other voluntary liens).

Question 94

Why can’t a Life Estate be devised?

Answer 94

Because you don’t OWN it. You are missing the DEEP-C, you only have to rights to possess it for the duration of ones life, so if you “devise” it, that would mean you are leaving it in your will, which you don’t have the rights to do.

Question 95

What does Arizona have as an alternate to Dower/Curtsey Rights?

Answer 95

It is automatic in Arizona that any married couple is entitled to Community Property Estates with the Rights of Survivorship where the spouse who remains, the property passes directly to them.

Question 96

What legal term would be used to transfer your estate to somebody else upon your death and would be found in a will:

Control

Inchoate

Devise

Demise

Answer 96

Devise

Question 97

Which of the following estates have a limitation(s) placed upon it?

Fee simple qualified

Fee simple abject

Fee simple

Indefeasible

Answer 97

Fee simple qualified

Question 98

What type of estate was given to Pat and Kat by their parents who are the legal owners and allows Pat and Kat to remain there as long as they abide by the limitations set by the parents:

Fee Simple Qualified

Fee simple conditional

Fee simple

Fee Simple Determinable

Answer 98

Fee Simple Determinable

Question 99

If you were to allow your sibling to reside in your house until she died, because you promised your parents you would, your sibling would be what:

Grantor

Leasehold Tenant

Life Owner

Life Tenant

Answer 99

Life Tenant

Question 100

The highest and most desirable type of property ownership is:

None of the above

Grantors Estate

Fee Simple Absolute

Common Estate

Answer 100

Fee Simple Absolute

Question 101

A tenant reserves the rights to a property but only for a limited time, where specifically they can remain in the property for the duration of someone else life. This potentially could be an example of:

Estate in Reversion

Estate on behalf

Grantors interest

Estate por autre vie

Answer 101

Estate por autre vie

Question 102

By failing to maintain the property that was left to their child after their parents death The property value declined sharply due to what?

Waste

Free condition subsequent

Poor tenancy

Tenant control

Answer 102

Waste

Question 103

A homeowner who due to unfortunate circumstances has lost most of his assets to the attorneys who are suing him. Which asset is protected in Arizona due to the homestead acts?

The first $500,000 in equity in his primary residence if he is married

A Rural Residence only

The homestead in equity in primary residence

Any residence in Arizona

Answer 103

The homestead in equity in primary residence

Question 104

A fee simple absolute estate is an estate where it is almost impossible as long as the owner abides by all legal rights to be forfeited or given up. This is what type of estate?

Action Estate

Defeasible fee estate

Determinable Estate

Indefeasible fee state

Answer 104

Indefeasible fee state

Question 105

Richard has provided a property to be used and enjoyed by his brother Edward until he dies. Edward has the rights to enjoy, control, exclude and possess but is missing the rights to dispose of the property. Upon the death of Edward the property Is supposed to automatically be returned to Richard. This estate is ____________.

Qualifiable

Defeasible

Estate in arrears

Estate in reversion

Answer 105

Estate in reversion