2 Property Ownership And Interests

Question 1

Bundle of legal rights

Answer 1

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

Question 2

Water rights

Answer 2

1. Riparian - Rivers
2. Littoral - Lakes/Oceans
3. Doctrine of Prior Appropriation

Question 3

Riparian Rights

Answer 3

An owner‘s rights in land that borders on or includes a stream, river, or lake. These rights include access to an use of the water. If the waterway is non-navigable the owner owns the land under the water to the exact center of the waterway.

Question 4

Littoral Rights

Answer 4

Landowners claim to use water in large navigable lakes and oceans adjacent to the property. The ownership rights to land bordering these bodies of water up to the average high-water mark

Question 5

Accretion

Answer 5

Gradual increase in land resulting from the deposit of soil by water.

Question 6

Erosion

Answer 6

Gradual wearing away of land caused by flowing water or other natural forces.

Question 7

Reliction

Answer 7

Land that shows up in a new place after water recedes. 

Question 8

Avulsion

Answer 8

When a sudden act of nature such as a flood or avalanche removes soil.

Question 9

True or False

Water rights cannot be retained when the property is transferred.

Answer 9

True

Question 10

Doctrine of appropriation

Answer 10

Water rights are determined by priority of beneficial use. The first person to use water or divert water for a beneficial use our purpose can acquire individual rights to the water.

Question 11

Fructus Naturales

Answer 11

Trees, perennial bushes, and grasses that do not require annual cultivation.

Question 12

Fructus Industriales

Answer 12

Annual crops such as wheat, corn, vegetables, and fruit. Also known as emblements.

Question 13

Fixtures Total circumstance test

IRMA

Answer 13

1. Intent of annexor
2. Relationship to annexor
3. Method of annexation
4. Adaptation to real estate

Question 14

Chattel Fixture

Answer 14

Trade Fixture. Article owned by a tenant and attached to a rented space or building for use in conducting a business.

Question 15

Accession

Answer 15

When trade fixtures are not removed at the end of a lease and become the owner‘s property.

Question 16

Severance

Answer 16

Changing an item of real estate to personal property by detaching it from the land. Cutting down a tree.

Question 17

Annexation

Answer 17

The process of converting personal property into real property. Bushes that were bought by the owner then planted in the ground.

Question 18

Freehold Estate

Answer 18

Ownership interest of at least a lifetime.

Question 19

Fee Simple Absolute Estate

Answer 19

Highest and best form of ownership. Entitled to all rights in the property.

Question 20

Fee Simple Defeasible Estate

Answer 20

Estate that may be lost on the occurrence or non-occurrence of a special event.

Question 21

2 types of Fee Simple Defeasible Estates

Answer 21

1. Fee Simple Subject To The Condition Of

2. Fee Simple Determinable

Question 22

Fee simple subject to a condition of

Answer 22

An estate that dictates some action or activity that the new owner must not perform. Not automatically returned to owner if violated. 

Question 23

Fee simple determinable

Answer 23

An estate that requires a specified activity or land use continue. I.e. church or school.

Question 24

True or False

Fee Simple determinable estates are not automatically returned to the owner if the special condition ceases to exist.

Answer 24

False. They are easily taken back if violated.

Question 25

Which stick of the Bundle of Rights pertains to fee simple determinable estates?

Answer 25

Control

Question 26

Estate pur autre vie

Answer 26

For the life of another. The life tenant owns the property for the duration of the lifetime of a third-party.

Question 27

Life Estate

Answer 27

A freehold estate that is limited in duration to the life of the new owner or to the life or lives of some other designated person or persons

Question 28

Conventional life estate

Answer 28

Created by grant from the current owner of the fee simple estate. Current owner retains revisionary interest in the property or names of remainderman.

Question 29

Marital life estate

Answer 29

Created by law when a spouse dies without a will.

Question 30

Ownership in severalty

Answer 30

When title to real estate is owned by one person or a single entity.

Question 31

Concurrent ownership

Answer 31

When title to real estate is vested in or owned by two or more persons or entities. 

Question 32

Forms of Concurrent Ownership 

Answer 32

1. Tenancy in common 2. Joint tenancy 3. Tenancy by the entirety

Question 33

Tenancy in common

Answer 33

Co-owners that have unity of possession but may have an equal shares. When a co-owner dies their interest is passed to their heirs.

Question 34

Joint tenancy

Answer 34

Co-owners have equal shares and the right of survivorship EXCEPT in NC. Must have been acquired all at the same time.

Question 35

Tenancy by entirety

Answer 35

Limited to ownership of legally married couples. Must be married at the time of ownership.

Question 36

Condo ownership

Answer 36

Ownership of unit or air space and common areas/elements.

Question 37

Townhouse ownership

Answer 37

Owns unit, exterior surfaces, and the specific portion of land on which its built.

Question 38

Who owns townhouse common areas?

Answer 38

The HOA

Question 39

1986 NC Condo Act

Answer 39

1. Application 2. Public Offering Statement 3. Purchaser’s right to cancel 4. Escrow of deposit 5. Resale certificates

Question 40

NC Time Share Act

Answer 40

1. 5 day right to rescission 2. 10 day escrow requirement 3. Public offering statement 4. Must be registered with the state 5. Must renew registration certificate every June

Question 41

True or False A timeshare sales person must provide a public offering statement to a perspective buyer prior to showing or sharing project info.

Answer 41

False | It is provided prior to contract

Question 42

What is a Trust?

Answer 42

A fiduciary arrangement that allows a third-party (trustee) to hold assets on behalf of a beneficiary