Chapter 2 Quiz Flashcards
Three unrelated owners took title to a warehouse building as joint tenants. One of the owners died testate. The remaining two owners now own the building:
a. as joint tenants
b. under the state’s laws of descent
c. in severalty
d. subject to the terms of the deceased person’s will
A:
The two remaining owners now own the building as joint tenants, so answer A is correct. The
laws of descent do not play a role because the three owners are not related, and answer B does not
come into play. If one of them dies, the remaining owner would own the land in severalty, answer C.
The will of the decedent also does not play a role because the rules of joint tenancy automatically
distribute ownership to the two remaining joint tenants, so answer D is also incorrect.
- Which of the following types of property
ownership (title) is limited to husbands
and wives?
a. joint tenancy
b. tenancy in common
c. tenancy by the entirety
d. tenancy at will
C:
Tenancy by the entirety, answer C, is the only form of ownership in this list of answers which is
restricted to married persons. Joint tenancy and tenants in common do not have to be related.
There is no such form of ownership as tenancy at will.
- Robert, a single man, owned a building
that he leased to a restaurant owner, Pete.
Robert married Kathy, and then a few
years later, decided to sell the building to
Pete, the owner of the restaurant. The
buyer’s attorney demanded that before
the sale could take place, Kathy would
have to sign a quit claim deed. What was
the attorney concerned about?
a. Robert dying intestate
b. Kathy dying intestate
c. common law issues
d. a community property claim
D:
The attorney is worried about a community property claim, answer D. The attorney is
specifically concerned that Kathy would make a claim of community property at some time in the
future, even though she was never named on the deed that Robert received when he originally
bought the property. Having Kathy sign a quit claim deed releases any potential future claim that she
might have.
Two cousins would like to purchase and
take title to an investment property. Gary
will own 3⁄4 share and Larry will have a 1⁄4
share. To do so, they must take title under
which one of the following methods?
a. severalty
b. tenants by the entirety
c. joint tenants
d. tenants in common
D:
Tenants in common is the correct answer if they want to take ownership with unequal shares.
Severalty limits title to one owner. Tenancy by the entirety requires the owners to be married. Joint
tenancy requires equal shares of ownership (PITT).
Twelve individuals own an apartment
complex as tenants in common. One of
them, Lola, decides to liquidate her
holdings. She may legally:
a. sell. Lola has an undivided, transferable interest. b. sell. Lola can sell her interest if another owner agrees to sell too. c. not sell. Lola’s interests always remain encumbered. d. not sell. Lola’s interests include survivorship.
A:
If Lola holds ownership of a property as a tenant in common, she may sell or transfer her
ownership, at any time, with or without the permission of the other owners.
When a seller of real property appears
before a notary public with a deed that will
convey the property to a buyer, the
grantor may be asked to:
a. provide a social security card as positive identification. b. appear with the deed and other papers signed. c. make a verbal statement that their signing is voluntary. d. All of the above
C:
The notary public is responsible for ensuring that the grantor is signing voluntarily and is not
under duress. A social security card is not a legal form of identification. Appearing with the deed
signed would compromise the notary’s responsibility to see the signature being affixed to the
document.
A quit claim deed must be signed by a:
a. vendor.
b. grantor.
c. grantee.
d. buyer.
B:
The grantor must sign the deed. The grantee neither has to be present nor sign any
documents. As used in real estate, the terms vendor and vendee have to do with land contracts.
Tenant Tom has not paid his rent in two
months and avoids all contact with
Landlord Lynn. Frustrated, Lynn enters the
apartment when Tom is at work and puts
all of Tom’s personal property to the curb.
Additionally, Lynn changes the locks. This
is:
a. legal since Tom is in breach of his lease. b. justified as Tom is more than 30 days late. c. Illegal as it is a constructive eviction. d. unethical as Tom will have no shelter.
C:
When the landlord makes it impossible for the tenant to access or live in the leased property, it
is considered a constructive eviction and is illegal. The landlord must follow the local, legal process
for eviction.
Van Horn leases space from Perfect Properties, LLC to operate a computer repair store in a small shopping center. Van Horn pays $2,400 per month in rent and must also pay 5% of his gross sales. His lease is most likely a(n):
a. percentage lease.
b. gross lease.
c. indexed lease.
d. escalation lease.
A:
In a percentage lease, the commercial tenant pays a base rent plus a percentage of the gross
business income as the landlord’s location, anchor tenants, and marketing is considered to contribute
to the overall business income of the tenant. Although the lease may also be a gross lease or
escalated lease as well, there is no evidence in the question that such is the case.
Once a lease is agreed to, the tenant is said
to have a:
a. freehold estate.
b. leased fee.
c. leasehold interest.
d. reversionary interest.
C:
Once a lease is agreed to, the tenant is said to have a leasehold interest. The landlord has a
leased fee.
