Chapter 2 Flashcards
1
Q
Real property consists of all of the following EXCEPT
rights associated with property.
man-made improvements
land and attachments to land.
movable items not fixed to the land.
A
movable items not fixed to the land.
2
Q
Select the matching pairs defining the bundle of rights that come with real property.
Jay loves fresh corn, so he plants half of his backyard with corn.
Rob never uses his detached two-car garage, so he rents it as storage.
Kim refuses to let the neighbors cut through her yard on the way to the park
A
Right of Possession(Jay)
Right of Disposition(Rob)
Right of Exclusion(Kim)
3
Q
Frank owns a 12-story apartment building along the freeway. He agrees to allow an outdoor advertising agency to erect a billboard on the roof of his building. Frank is exercising his ownership rights to the air.
A
True
4
Q
John’s neighbor has an oak tree whose branches and roots are extending across the lot line into John’s backyard. Which of John’s rights is NOT being violated?
A
mineral
5
Q
You live in a house on the shores of a commercial lake. You are a ________ owner, which means that you ________ own the land under the water.
A
littoral / don’t
6
Q
Marcus owns a cottage on the lake. When he sells the cottage, his littoral rights are automatically transferred to the new owner.
A
True
7
Q
Reliction is the gradual process of waterborne silt being deposited in a river, lakebed or on a shore.
A
False
8
Q
If you purchase a home next to an airport and you become annoyed when planes take off from the airport in early morning hours, do you think you may be able to recover damages from the airport for infringing on your air rights?
A
No
9
Q
Lenny owns a home within the city limits. In a corner of his property, he has an elaborate garden where he likes to sit quietly. He gets new neighbors who have a teenager. The teen is in a band, which practices in the garage right next to Lenny’s garden most evenings until late. What activity is happening, and what right is being infringed upon?
A
This is nuisance, which is infringing on Lenny’s right of enjoyment.
10
Q
Ownership of land involves only the surface and the dirt below, NOT the air above it.
A
False
11
Q
You live next to a coastal inlet. Over the last several years, the tide has been depositing silt into the inlet, adding land to your property. This is an example of
A
accretion.
12
Q
Encroachment refers to a physical intrusion of land by another person without any lawful right to enter it.
A
False
13
Q
Your property sits on a large navigable river. Which statement is FALSE?
A
You can stop people from boating in front of your home.
14
Q
Which is NOT an example of an attachment?
a basketball hoop that is moved into the garage in the winter
a greenhouse that is built off of the garage
the lily pond in the backyard Japanese garden
uncut roses on a rose bush planted by the back door
A
a basketball hoop that is moved into the garage in the winter
15
Q
Which transaction does NOT represent an example of an appurtenance?
selling the fructus industriales grown on your land
selling the space above your farm to a billboard advertiser.
selling the space above your farm to a billboard advertiser
selling water from your underground spring to a bottling company
A
selling the space above your farm to a billboard advertiser
16
Q
Do you think that a buyer can acquire personal property as part of an agreement to purchase real property?
A
Yes
17
Q
Trees, shrubs, perennials, and naturally occurring vegetation are part of the land and therefore are considered personal property.
A
False
18
Q
Harvested corn is an emblement.
A
True
19
Q
Which of these is real property?
fructus industriales
fructus naturales
A
fructus naturales
20
Q
Emblements are considered personal property.
A
True
21
Q
Which of these is NOT classified as real property?
irises planted in a flower box on your deck
magnolia trees
tulips planted in a backyard, which bloom every year
wild blackberry bushes that grow on your property
A
irises planted in a flower box on your deck
22
Q
You take the chandelier out of the box and attach it to the ceiling above the dining room table. Now what kind of property is the chandelier?
A
real property
23
Q
When Steven sells his house to Lois, the built-in bookcase transfers as part of the transaction. The bookcase is an appurtenance.
A
False
24
Q
A new chandelier is still in the box. What kind of property is that chandelier?
A
personal property
25
A large mirror that a buyer wants to remain with the property should
be identified as a fixture in the sales contract.
26
What about leased property, such as a satellite dish that’s bolted to the roof? Do you think that would be real or personal property?
personal property
27
Jill buys a house from Jack. She assumed that the curtains would be included in the price, even though they were not listed in the agreement of sale. What is the best argument Jill could make to persuade a judge if this goes to court?
“The curtains were custom-made for the odd-shaped window.”
28
According to the North Carolina Uniform Commercial Code (UCC), any attached item on real property is considered the homeowner’s personal property once the property is conveyed.
False
29
Which of the following is NOT considered an improvement?
retaining walls constructed by a contractor
swimming pool cracks repaired by a homeowner
land graded by a developer
fences built by a homeowner
swimming pool cracks repaired by a homeowner
30
Manufactured housing is a type of factory-built housing that is automatically considered real property once it is constructed onsite.
False
31
An irrigation system installed by Joe on his leased peach orchid ranch is considered
an agricultural fixture and, under modern trends, treated as a trade fixture and remaining the property of Joe at the end of the lease.
32
Harvey owns a small commercial building that he rents to Lucy, who opens a ceramics shop. Lucy installs a kiln. Four years later, Harvey sells the property to Ann, who wants to start her own pottery business. When Lucy’s lease is up, who owns the kiln?
Lucy
33
Which of these is a common example of personal property that is included in an agreement of sale?
a refrigerator
34
Cynthia is renting a storefront in order to open a hair salon. She hires a plumber to install five hair washing stations in the space. The sinks would be considered fixtures, making them real property.
False
35
When Tiffany opened a cupcake shop in a strip mall, she installed four commercial ovens. At the end of her three-year lease, Tiffany vacates the property, leaving the ovens behind. She can send a bill to the landlord for the depreciated value of the ovens.
False
36
All of these are considered when determining whether an item is a fixture or personal property EXCEPT
intention of the annexor.
manner of annexation
value of the annexed item.
value of the annexed item.
37
Gareth inherits a plot of land from Jessie. A year later, he sells half of the property to Kim. A year later, she gives her half to Alex, who sells the mineral rights. This series of events best represents the legal property right of
disposition.
38
You live in a house on the shores of Lake Michigan. You are a ________ owner, which means that you ________ own the land under the water.
littoral / don’t
39
Which of the following statements about modular housing is FALSE?
Construction of a modular home on a site is more acceptable by most subdivision protective covenants, compared to a manufactured home.
Modular homes are built in compliance with HUD building codes
The factory construction is assembled by a builder onsite on the permanent foundation
The housing is considered real property immediately after assembled on site.
Modular homes are built in compliance with HUD building codes.
40
You’re representing the buyer in a real estate transaction. The seller’s fact sheet indicates that the lawnmower is included in the sale. Further conversations with the seller confirm this. The lawnmower is an example of _____________ property and ______________ need to be in the agreement of sale.
personal / does
41
John owns property on the Mississippi River, which gives him ___________ to the __________ of the water.
riparian rights / edge
42
Each of these terms could be used to describe a tractor EXCEPT
appurtenance.
43
Gareth inherits a plot of land from Jessie. A year later, he sells half of the property to Kim. A year later, she gives her half to Alex, who sells the mineral rights. This series of events best represents the legal property right of
disposition.
44
You live in a house on the shores of Lake Michigan. You are a ________ owner, which means that you ________ own the land under the water.
littoral / don’t
45
Which of the following statements about modular housing is FALSE?
Construction of a modular home on a site is more acceptable by most subdivision protective convenants, compared to a manufactured home.
Modular homes are built in compliance with HUD building codes
The factory construction is assembled by a builder onsite on the permanent foundation
The housing is considered real property immediately after assembled on site
Modular homes are built in compliance with HUD building codes.
46
You’re representing the buyer in a real estate transaction. The seller’s fact sheet indicates that the lawnmower is included in the sale. Further conversations with the seller confirm this. The lawnmower is an example of _____________ property and ______________ need to be in the agreement of sale
personal / does
47
John owns property on the Mississippi River, which gives him ___________ to the __________ of the water.
riparian rights / edge
48
Each of these terms could be used to describe a tractor EXCEPT
Appurtenance
Chattel
Personal Property
Personality
Appurtenance
49
Harry buys a house from Tom as fee simple. Can Tom take the house back because he doesn’t like the color Harry painted the shutters?
No
50
If Bill owns land in fee simple absolute and transfers it to Bonnie without any limiting language, then Bonnie owns the land in fee simple absolute.
False
51
Mike sold his land to Pam with the condition that she does not disturb the spring house built in 1750 that’s on the back of the property. When Pam tore the spring house down to put up a horse barn, Mike exercised his right of re-entry. What type of estate did Mike grant Pam, and what did Mike have to do to get the land back?
fee simple subject to a condition subsequent; Mike goes to court
52
Same example, but instead, the specific deed language is, “My niece and her heirs may have the land as long as 10 acres remain undeveloped.” Your niece later turns the entire 20 acres into a parking lot for the ski resort next door. Do you have the right to reclaim that land without going to court?
Yes
53
You own 20 acres of land in the mountains. You decide to deed the land to your niece. However, you want to make sure that the pristine beauty of the property is not marred by development, so you indicate that at least 10 acres must remain undeveloped. This is an example of
fee simple defeasible.
54
Jill conveys a small farm house to her nephew, Jim. Jill knows that Jim will inherit a larger property when his father Mack dies. So, Jill conveys the small farm to Jim for as long as Mack lives. In this situation, who is the measuring life?
Mac
55
Ellen is granted a conventional life estate by her uncle. Ellen has a young son, Jon, and she wants to ensure he is cared for in the event of her death. Can Ellen will her life estate to Jon?
No
56
Which type of life estate is created by operation of law?
Marital only 
57
Andrew Dye has two sons. His second wife Carla dotes on their son Bart, but Andrew is fonder of son Doug from his first marriage. Carla urges Andrew to give the Dye family beach house to Bart, but Andrew has a better idea. He conveys a life estate to his younger son Bart for as long as Carla shall live, and then to Doug. What type of estate does this describe?
life estate pur autre vie
58
In his will, Joe leaves everything to his son, Bill, who now has a reversionary interest in the estate as well. Let’s say that Joe dies before Sue dies. Since Joe’s son Bill gets everything, according to Joe’s will, can Bill kick sister Sue off the property and take possession fee simple
No
59
Let’s say that Joe grants a life estate to daughter Sue. When Sue dies, the life estate reverts to Joe. In this scenario, who is the life tenant?
Sue
60
Andrew conveys a life estate to his younger son Bart for as long as his wife Carla shall live, and then to his son Doug. Can Bart sell his interest in the property to his cousin Fred?
Yes
61
Dower and curtesy rights apply in the state of North Carolina
False
62
Which is NOT a legal right of a life tenant?
encumbrance on the life estate
net income produced from the property
estovers for building repairs
income from cut timber
income from cut timber
63
When comparing freehold estates and nonfreehold estates, nonfreehold estates have a lifetime ownership interest.
False
64
Sue creates a life estate for her brother Dave. When Dave dies, the estate will go to Sue’s sister Tina. Dave is known as the “remainderman.”
False
65
Grandpa owned property in fee simple. He granted a life estate to his brother Zach and a remainder estate to his son Joel. The life estate is based on Zach’s life. What can Zach NOT do with his life estate?
He can will the life estate to his daughter
66
Rachel wants to make sure that her disabled son, Earle, has a place to live when she dies. She also wants to give the property to her daughter, Jane, after her son passes away. If Earle is still alive when Rachel dies, who will own the property and what is that person called
The owner of the property will be Jane, and she is the remainderman
67
Matilda wants to know that her granddaughter Rose will inherit her house when she dies. So, she deeds her house to her granddaughter but creates a situation where Matilda can still live in the house until she dies. When Matilda dies, Rose will own the house. What kind of estate is this?
conventional life estate
68
Henry buys a retirement home in the mountains. He never really got along with his son Mario, but he really likes Mario’s wife, Joan. After Mario gets a divorce, Henry changes his will so that Joan inherits the house when he dies. What type of estate does Henry have?
fee simple absolute
69
Jean gives 20 acres to the city of Edgewood but stipulates that the city can use it only to create a nature preserve and park. If the city uses the land for any other purpose, it will revert to Jean’s heirs. What kind of estate has Jean created?
defeasible fee simple
70
Larry owns his house in severalty. He has a will that leaves the house to his grandson, Sean. When Larry dies, Sean is ________ and his interest was created by ________.
sole owner / devise
71
Let’s walk through a little case study. Karen and her sister Sue buy a $200,000 house together. Karen puts up $150,000, and Sue puts up $50,000. The deed simply indicates that the grantees are Karen and Sue as tenants in common. Sue’s interest in the house is MOST LIKELY
50%.
72
Karen and Sue’s deed indicates that Karen owns a 75% interest, and Sue owns a 25% interest. Which unity is NOT present in this arrangement?
interest
73
Same scenario: Karen and Sue buy a $200,000 house together. Karen puts up $150,000, and Sue puts up $50,000. The deed indicates that Karen owns a 75% interest, and Sue owns a 25% interest. How much of that property can Sue occupy?
100%
74
Mary, Donna, Ralph, and Lou co-own a property as joint tenants. What is Ralph’s interest in the property?
25%
75
Which of these unities is NOT required for there to be joint tenancy?
person
76
Mary, Donna, Ralph, and Lou co-own a property as joint tenants. Ralph dies. What is Mary’s interest in the property?
33 1/3%
77
Marcia, Jan, and Cindy own a 12-acre lot as joint tenants. They agree to partition the lot into three separate lots. Now each woman owns an undivided interest in four acres.
False
78
Ron and Deb just got married, and Deb moves into the house Ron owned prior to the wedding. Ron and Deb automatically own the house as tenants by the entirety.
False
79
Ron sells his old house. He and wife Deb take title to a new house. The deed does not indicate this ownership specifically as a tenancy by the entirety, however. What percentage of the interest in the new house does Deb own?
100%
80
Bride Deb moves into the house Ron owned prior to the wedding. The unities that are present with respect to the ownership of the house are interest, time, and title only, not possession or person.
False
81
Which is LEAST LIKELY to be an example of a common area in a condominium?
balcony
land
laundromat
swimming pool
Balcony
82
Lisa owns a condo, which means she owns in severalty, the interior
of her unit only.
83
How long does a condo purchaser have to exercise his right to cancel the purchase contract?
7 days
84
Condominium bylaws may stipulate what color decorative lights an owner can use on a condo’s exterior.
False
85
Lara owns a condominium. When a candle catches her draperies on fire, the damage to Lara’s carpet, walls, and furniture is covered by the condominium association’s hazard and liability insurance.
False
86
Jessica sells her condominium unit to Roger. Does Roger also get an undivided interest in common areas and membership in the owners association?
Yes
87
Cooperative owners receive a deed to the unit of their real property.
False
88
Opal lives in an apartment that is going co-op. The current residents are given the first option to buy in, and Opal decides to take advantage of the opportunity. Which statement about Opal’s new co-op is FALSE?
Opal will own the airspace inside her co-op.
89
Opal lives in a co-op. Her interest in the co-op is
personal property.
90
Opal lives in a co-op, and she does not pay the required assessment. The other owners in the co-op can put a lien on her unit.
False
91
Opal lives in a co-op. Since her interest in the co-op is personal property, she cannot deduct real estate taxes and loan interest from her federal income tax
False
92
All persons selling (or attempting to sell) time-shares in North Carolina must have an active, valid real estate license as well as a separate time-share license.
False
93
Townhome owners have a fee simple interest in all of the following EXCEPT:
airspace only
basement
ground directly beneath the unit
roof
Airspace only
94
Colin is setting up a trust for his grandchildren. He is the trustor and his grandchildren are trustees.
False
95
Trustor Harold makes daughter Jan the trustee of some rental property for the benefit of grandson Mike. Who holds title to the property?
Jan
96
Julie is applying to live in Hoity Toity Tower. Assuming no illegal discrimination, she could be rejected if
the co-op board decides not to approve her application
97
Oscar is looking to buy a low maintenance residence. Which option will NOT give Oscar ownership of real property?
cooperative
98
When a condo unit is sold, an undivided interest in common areas and membership in the owners association are automatically transferred to the new owner.
True
99
Ned is a co-owner of a property in Orlando. He is permitted to stay there only in the first week of December and the third week of June every year. Ned MOST LIKELY owns a
Time-share
100
Common areas in a condominium are owned by all owner-residents as joint tenants.
False
101
Which types of ownership are evident in a condominium community?
co-tenancy and fee simple
102
The term "right of survivorship" is associated with a
joint tenancy
103
Ken included provisions in his will that upon his death, his three children will each receive a lump sum of money on their 30th birthday. What type of trust this?
testamentary trust
104
Blanche, Rose, and Dorothy co-own a condominium. Dorothy owns a one-half interest in the property, while Blanche and Rose each own a one-fourth share. What is this type of co-ownership?
tenancy in common
105
Derrick purchased a fee simple interest in a house on the lake with an 8% interest in the parking area, recreation center, laundry room, and docks. What kind of ownership interest did Derrick buy?
condominium
106
Which statement about a life estate is FALSE?
An example of a life estate in some states is dower rights.
A life estate cannot be willed.
A life estate ends when the measuring life dies.
People deeding property to someone cannot take a life estate for themselves.
People deeding property to someone cannot take a life estate for themselves.
107
Josh and Reva, husband and wife, own their home as tenants by the entirety. When Josh dies, Reva automatically becomes sole owner. What type of property ownership has this become?
ownership in severalty
108
Which unity is NOT required for joint tenancy?
person
109
Which type of community interest ownership takes title for a specified time period each calendar year?
time-share
110
A creditor who files a lien has the right to occupy the property until the lien is repaid.
False
111
A creditor who files a lien has the right to occupy the property until the lien is repaid.
False
112
You don’t pay a special assessment tax that was imposed to pay for new street lights in your neighborhood because you thought that the existing light was sufficient. Will the city ask your permission to put a lien on your property to cover that assessment?
No
113
If you don’t pay the general contractor, he can’t pay the lumber yard who supplied the wood for the deck. Do you think that the lumber supplier could file a mechanic’s lien against your property, too?
No
114
Two months later, Marcia is sued for nonpayment of a credit card debt and a judgment lien is recorded against her. What are the current priority positions of the liens in the event she defaults on all of her obligations?
mechanic’s lien is first, mortgage lien is second, judgment lien is third
115
She thought she had enough, but Marcia realized she needed more money to pay for the pool. When she refinances her mortgage to get cash out to pay for the pool, her mortgage lien is voluntary.
True
116
The city assesses a specific tax to replace the curbs and lights on Marcia’s street, and she ignores the tax bill. The city files a lien. Of the four liens on Marcia’s property, which is in first priority?
special assessment tax lien
117
For these next few questions, let’s walk through a scenario with property owner Marcia. Bucks Construction is building a pool at Marcia’s house. Subcontractor Tim comes and digs the hole for the pool, and Bucks does not pay him. Tim can file a mechanic’s lien against Marcia.
True
118
Marcia has four liens: $3,000 for the city-installed curbs, $2,000 for Tim the digger, $150,000 on her mortgage, and $12,000 judgment for credit card debt. The bank forecloses, and the house sells for $152,000. How do you think the money will most likely be distributed?
in order, so $3,000 to the city; $2,000 to the digger; $147,000 to the bank; $0 to the creditor
119
A “notice of pending litigation” to inform potential homebuyers that a property is in a pending lawsuit that will affect title to the property is called a writ of attachment.
False
120
Restrictive (protective) covenants are private deed restrictions that limit how land may be used.
True
121
Which is a voluntary, specific lien?
mortgage lien
122
Which lien would be paid first in the event of a foreclosure sale?
property tax lien
123
When Jake purchases a house, he gets a mortgage. The mortgage is recorded on May 1. Jake builds a deck in July and then goes to Hawaii for several months. He doesn’t pay the contractor or his property taxes. His property goes to foreclosure. Generally speaking, in what order will the liens be paid?
tax lien, mortgage lien, mechanic’s lien
124
Which project would LEAST LIKELY justify a special assessment?
new siding on an individual property owner’s home
125
An IRS tax lien is an involuntary, general lien.
True
126
Like a lien, an easement is a nonpossessory interest in real property and is a financial encumbrance.
False
127
The gas company has an easement in gross to access its gas lines on the
servient tenement.
128
An example of an easement appurtenant would be an easement that grants access across a parcel of land to a public beach.
False
129
Heather owns a property on the shore. The guest house is on the beach, and the main house is up a hill above the beach. She sells the guest house to Tom. After the sale, she continues to use the gate between the main house and the beach house to cross Tom’s property and access the beach. This would most likely be considered
easement by implication
130
Gina has an easement to drive across her neighbor Fred’s property to get to her house. Gina sells her house to Kim. Can Kim now drive across Fred’s land?
Yes
131
Gina has an easement to drive across her neighbor Fred’s property to get to her house. Who has the servient tenement?
Fred
132
Gina has an easement to drive across her neighbor Fred’s property to get to her house. Gina’s property is known as
a dominant tenement.
133
Gina’s easement could be considered an easement by necessity.
True
134
Gina has the right to drive across her neighbor Fred’s property to get to her house. Fred cannot prevent Gina from driving across his land. Gina has a negative easement.
False
135
Chris’s lottery ticket was only worth $62, so Chris goes on the property and harvests the corn. Assuming that there was not a time frame indicated in the deed where the easement was created, does his easement end?
Yes
136
Chris, a farmer, sold his land to Carmen before his corn crop was ready for harvest. As part of the purchase, Carmen granted Chris an easement to enter the land and harvest the corn. If a hail storm hits the area a week before harvest, destroying the entire corn crop, does Chris’s easement end?
Yes
137
Instead, let’s say that Chris hits the lottery for $350 million before he harvests the corn. He calls Carmen and tells her that he has no interest in harvesting the corn. What’s the most likely way his easement will be terminated
abandonment
138
Stacy goes on vacation and checks into a hotel for one week. On the first night, she throws a party, and the guests next door complain. Can the hotel management kick her out even though she has six more nights?
Yes
139
Henry has an easement to cross Jennifer’s property to get to his house. Jennifer sells her property. Does Henry still have a right to use the easement?
Yes
140
Albert has a license to fish on Foster’s lake. Foster sells the property to June. Does Albert still have the right to fish on the lake?
No
141
Of the following, which is NOT an encumbrance?
appurtenant easement
condition
license
lien
License
142
The best way for real estate brokers to mitigate chances of marketability issues with title to real property due to encroachments is by recommending clients order a(n)
land survey
143
Jared has an easement to drive across his neighbor Vicky’s property to get to his barn. Jared’s property is known as the ______________ tenement.
dominant
144
Ethel has lived in a house on the lot behind Terry’s property for 30 years, driving across Terry’s vacant front property to get to the road without an easement. When Terry finally decides to build, she puts a fence all around her property, blocking Ethel from the road. Other than an easement by necessity, what option might Ethel have to travel from her property to the road?
easement by prescription
145
An easement in gross that belongs to a company may be assigned to others.
True
146
Evan and Kenneth have an agreement that Evan is permitted to hunt on Kenneth's property during hunting season. This agreement is a(n)
license.
147
Which is an example of a negative easement?
Your neighbor is unable to add a second story to his house if it blocks your sunlight.
148
Brian has an appurtenant easement that allows him to cross over his neighbor’s land to get to the lake. When the neighbor sells this land to Brian, the easement is terminated through
merger.
149
A landowner’s bundle of rights includes all of the following EXCEPT the right of
encroachment.
150
A “notice of pending litigation” to inform potential homebuyers that a property is in a pending lawsuit that will affect title to the property is called a(n)
lis penden
151
A sidewalk could best be described as an example of a(n)
easement in gross.
152
Which is NOT an example of an encumbrance?
a neighbor’s shrubs hanging over your property line
153
Harold and Joanne have been neighbors for years. Until recently, Harold has used Joanne’s drive as the only way to get to his garage. Harold buys the lot behind his house, tears down the old garage and builds a new one with his own driveway from the street behind his house. How is this easement being terminated?
failure of purpose
154
Jon is granted an easement by necessity across Eric’s property to get to the road. Jon’s property is the
dominant tenement.
155
Chris has an easement to harvest the final soybean crop on the land he sold. Just before harvest, Chris inherits $8 million. He calls the new owner and tells her that he is moving to St. Croix and that she can do whatever she wants with the soybeans. What’s the MOST LIKELY way his easement will be terminated?
abandonment
156
Unpaid property taxes can result in a(n) ________against real estate.
involuntary (statutory) specific lien
