Property Ownership

Question 1

What is bundle of rights

Answer 1

Rights that come with property ownership

Question 2

What is an interest

Answer 2

A privilege or legal share

Question 3

What does bundle of rights explain

Answer 3

What’s involved in owning property and how many parties can have an interest in the property

Question 4

What is the fullest possible title to real estate

Answer 4

Fee simple absolute.

Question 5

What is real property

Answer 5

All things attached to the land and all rights inherit

Involves things that are immovable. Such as homes and buildings.

Question 6

What does real Estate mean

Answer 6

Real = things that are immovable
Estate = has to do with duration of ownership

Question 7

What is personal property

Answer 7

Involves anything that is movable

Also know as chattels

Question 8

What is severance?

Answer 8

Changing an item from real property to personal by detaching it from land

Question 9

What is annexation

Answer 9

Attaching personal property to real property and this creates a fixture.

Question 10

What is a fixture

Answer 10

Personal property that becomes real property like a chandeliers.

Question 11

What is a trade fixture

Answer 11

Piece of equipment on or attached to the real estate This can be removed

Example : display case used by a clothing store

Question 12

What is appurtenance

Answer 12

Something which belongs to something else, can be attached or not it is part of the property like a barn

Question 13

Encroachment

Answer 13

When a structure or improvement one a person’s land physically intrudes on land of another like a fence that crosses property line

Question 14

Riparian rights

Answer 14

Allow owner to use water from moving water

Question 15

Littoral rights

Answer 15

Property next to an ocean sea or lake

Use and enjoyment of the shore.

Question 16

Freehold estates

Answer 16

Where you have exclusive rights to enjoy possession of a property for an indefinite period of time

Includes fee simple absolute
Fee simple defeasible
Life estate

Question 17

Fee simple absolute

Answer 17

Type of ownership can’t be claimed by previous owner or heirs. Not free from encumbrances

Greatest interest that you can own

Question 18

What does absolute mean

Answer 18

Complete and unrestricted

Question 19

Fee simple defeasible

Answer 19

Created when grantor puts a condition on a fee simple Estate.

If condition is broken estate could be lost

Question 20

Life estate

Answer 20

Interest in Real property which lasts duration of one person’s lifetime

Can’t leave property to someone in their will

They can sell, mortgage or lease it

Question 21

Less then Freehold estate

Answer 21

Estate held by someone who rents or leases property

3 types : estate for years, periodic tenancy, estate at sufferance

Question 22

Estate for years (leasehold estate)

Answer 22

Leasehold interest in land for a fixed period of time also known as tenancy

Question 23

What is periodic tenancy

Answer 23

Tenancy not bound to a lease, with a fixed period.

Can be month to month, week to week

Question 24

How does a periodic tenancy differ from an estate for years?

Answer 24

It is not bound to a lease with a fixed period; it renews automatically for a set period (e.g., month-to-month).

Question 25

What is an estate in sufferance?

Answer 25

When a tenant wrongfully holds on to a property after the lease has ended; also called a tenancy at sufferance.

Question 26

What does "estate at will" mean?

Answer 26

A tenancy that can be ended at any time by either party.

Question 27

In a lease, who is the lessor and who is the lessee?

Answer 27

The landlord is the lessor; the tenant is the lessee.

Question 28

Are oral leases legally binding?

Answer 28

Yes, oral (spoken) leases can be binding.

Question 29

What is a reversionary right?

Answer 29

The owner’s right to take back possession of the property after the lease expires.

Question 30

Why is a lease considered a bilateral contract?

Answer 30

Both landlord and tenant have obligations.

Question 31

Does death usually terminate a lease?

Answer 31

No; responsibilities may pass on to the heirs of the deceased.

Question 32

How is a sublease different from an assignment

Answer 32

In a sublease, the original tenant leases the property to someone else but remains responsible to the landlord.

Question 33

What does risk management involve for a property manager?

Answer 33

Judging whether insurance is needed to protect the owner and manager from certain risks.

Question 34

what is gross lease

Answer 34

A rental agreement where the tenant pays a fixed amount regardless of property expense changes.

Question 35

What is a percentage lease?

Answer 35

A lease where rent is based on a percentage of gross sales made on the premises; common in retail/shopping centers.

Question 36

net lease

Answer 36

A lease where the tenant pays taxes, insurance, and maintenance in addition to rent.

Question 37

What is a lease option?

Answer 37

A rental agreement giving the tenant the option to buy the property during or at the end of the lease term.

Question 38

What is joint tenancy

Answer 38

Property Co ownership where 2 or more individuals own a property with equal rights, interests and ownership

Question 39

What are the 4 unities of joint tenancy

Answer 39

Time, title interest and posession