Section 3: CA Property Ownership

Question 1

Land + air/space
+ attached nature
+ underground

Answer 1

Definition of Land

Question 2

Land + attached items

Answer 2

Definition of Real Estate

Question 3

Real Estate + rights

bundle of rights included in property ownership

Answer 3

Definition of Real Property

Question 4

The right to draw water from underground resources (such as wells) for the landowner’s use.

Answer 4

PERCOLATING

Question 5

The right to access and use rivers, streams, and other flowing bodies of water adjacent to the property.

Answer 5

RIPARIAN

Question 6

The right to access and use ponds, lakes, oceans, and other stationary bodies of water bordering the property.

Answer 6

LITTORAL

Question 7

A legal doctrine that grants water rights to the first individual or entity to take water from a source for beneficial use. It s granted by the state based on need and use rather than adjacency.

Answer 7

Doctrine of Prior Appropriation

Question 8

The property is owned and may be possessed by the title holder.

Answer 8

The right of
POSSESSION
(bundle of rights)

Question 9

The owner controls the use of the property. OR the right to determine interest in the property for others.

Answer 9

The right of
CONTROL
(bundle of rights)

Question 10

The right to decide who may or may not access the property. OR the right to refuse other interests in your property

Answer 10

The right of
EXCLUSION
(bundle of rights)

Question 11

The ability of the owner to use the property in any legal manner. OR The right to possess the land without harassment or interference

Answer 11

The right of
ENJOYMENT
(bundle of rights)

Question 12

The right to sell or convey the property.

Answer 12

The right of
DISPOSITION
(bundle of rights)

Question 13

Land isn’t interchangeable. One piece of land isn’t exactly like another.

Answer 13

UNIQUENESS

physical characteristics

Question 14

While improvements may deteriorate over time, the land itself can’t be destroyed.

Answer 14

INDESTRUCTABILITY

physical characteristics

Question 15

The geographic location of a piece of land is fixed; it can never be changed.

Answer 15

IMMOBILITY

physical characteristics

Question 16

What Real Property Use are these:

• Single-family homes
• Multi-family dwellings

Answer 16

RESIDENTIAL

Question 17

What Real Property Use are these:

• Restaurants
• Retail stores
• Hotels
• Parking facilities

Answer 17

COMMERCIAL

Question 18

What Real Property Use are these:

• Light manufacturing
• Heavy manufacturing
• Warehouses
• Distribution centers

Answer 18

INDUSTRIAL

Question 19

What Real Property Use are these:

• Timberland
• Pastureland
• Farms
• Orchards

Answer 19

AGRICULTURAL

Question 20

What Real Property Use are these:

• Churches
• Hospitals
• Jails
• Courthouses
• College/university campuses
• Public schools
• Libraries

Answer 20

SPECIAL PURPOSE

Question 21

A set of business laws created in the 1950s that regulate financial contracts dealing with personal property (not real estate itself). The code has nine articles, each dealing with different aspects of banking and loans.

Answer 21

The Uniform Commercial Code (UCC)

Question 22

Whether the item is attached to the property and how permanent the attachment is

Answer 22

Method of annexation

Determining if an item is a fixture

Question 23

How the item is situated or adapted to the real property.

Answer 23

Adaptability of item to land’s use

Determining if an item is a fixture

Question 24

If there’s a dispute between the person who added the item and the person who removed it. The courts tend to favor a tenant’s take on an item over the landlord’s, and a buyer over a seller.

Answer 24

Relationship of the parties

Determining if an item is a fixture

Question 25

A person's original intentions may change over time, or an item that was intended to be temporary may end up physically attached to the property, which can change the item from temporary to permanent.

Answer 25

Intention in placing item on land | Determining if an item is a fixture

Question 26

If the parties have agreed that an item will stay or go, then that agreement meets the legal test. To be safe, the agreement should be in writing.

Answer 26

Agreement of the parties | Determining if an item is a fixture

Question 27

A form of legal life estate and refers to a WIFE’s interest in the real estate owned by her deceased HUSBAND. Dower isn’t recognized in all states.

Answer 27

DOWER

Question 28

A form of legal life estate and refers to a HUSBAND’s interest in the real estate owned by his deceased WIFE. Curtesy isn’t recognized in all states.

Answer 28

CURTESY

Question 29

The state’s power to claim property when an owner dies without a will and without heirs or creditors.

Answer 29

ESCHEAT

Question 30

Provides the most complete form of ownership and includes the bundle of rights.

Answer 30

FEE SIMPLE ABSOLUTE

Question 31

An inheritable freehold estate. Can will the property and/or successor can inherit the property.

Answer 31

FEE SIMPLE

Question 32

Permits the recovery of fee simple ownership if certain conditions aren’t met.

Answer 32

FEE SIMPLE DEFEASIBLE | aka QUALIFIED FEE

Question 33

The estate continues unless a specific even occurs, in which case ownership may revert to the owner or the owner’s successors. Usually recognized by the words “but if” in the deed.

Answer 33

FEE ON CONDITION

Question 34

Estate that includes ownership, possession, and control for someone’s lifetime.

Answer 34

LIFE ESTATE

Question 35

Abuse of a property by a person who holds interest through a life estate. The life tenant is responsible for reasonable property maintenance, repairs, etc.

Answer 35

ACT OF WASTE

Question 36

LIfe estate is created by a property owner who grants an estate to someone for the duration of another individual's life.

Answer 36

PUR AUTRIE VIE

Question 37

A life estate in which property title reverts to the owner upon the death of the life tenant.

Answer 37

REVERSIONARY INTEREST

Question 38

Refers to the remainderman’s right to fee simple title upon the death of the life tenant.

Answer 38

REMAINDER INTERESTS

Question 39

A life estate with remainder interests refers to a situation in which a PERSON named by the owner when forming the estate receives title to the property upon the death of the life tenant.

Answer 39

REMAINDERMAN

Question 40

Estate for a specified period of time; e.g., a one-year lease or a six-month lease.

Answer 40

ESTATE FOR YEARS

Question 41

Renews itself automatically at the end of each lease period unless one of the parties to the lease terminates it. This type of lease often results when an estate for years ends. A month-to-month lease is a periodic estate.

Answer 41

PERIODIC ESTATE

Question 42

A tenancy for an unknown period of time. Either party can terminate the lease by giving notice to the other party.

Answer 42

ESTATE AT WILL

Question 43

Estate that gives the owner special protections in property used as a family home.

Answer 43

HOMESTEAD

Question 44

One person owns the property, and all other interests are severed.

Answer 44

ESTATE IN SEVERALTY

Question 45

Each person is entitled to possession of the whole. If one dies, that person’s ownership is inheritable, and doesn’t necessarily pass to the other owner(s). They don’t necessarily have equal interests in a property.

Answer 45

TENANCY IN COMMON | co-ownership

Question 46

Equal ownership with undivided rights of possession and requires unity of four separate conditions: 1) all owners must have the same type of interest in the property, 2) all must receive their title at the same time from the same source, 3) all must have the same percentage of ownership, 4) all must have the right to undivided possession in the property. Joint tenancy includes the right of survivorship, meaning when one joint tenant dies, that person’s share automatically goes to the other surviving joint tenant(s).

Answer 46

JOINT TENANCY | co-ownership

Question 47

Has the right of survivorship. Only available to married couples, this form of ownership also includes unity of time, title, interest, possession, and marriage. Tenancy by the entirety can’t be reduced to tenancy in common or joint tenancy. Such a change of ownership would require divorce, an annulment, or for the couple to amend the title.

Answer 47

TENANCY BY THE ENTIRETY | co-ownership

Question 48

Joint tenants may sell their personal share of ownership; however, the buyer of that share does NOT become a joint tenant, because the required four unities do not exist. The new buyer didn’t receive a title at the same time as the other tenants, so the unity of time is destroyed. Therefore, the new owner is a tenant in common. The remaining tenants continue as joint tenants, with the right of survivorship shared between them. The new buyer, as a tenant in common, has an inheritable share.

Answer 48

TERMINATION OF JOINT TENANCIES

Question 49

A tenancy in common, each person is entitled to possession of the whole. To terminate, bring legal action to allow each tenant to have a specific, divided portion (partition) of the property exclusively. In cases where it’s impossible to do an equitable split, a court may order the sale of the property and determine the appropriate share of proceeds to be distributed to the tenants in common.

Answer 49

TERMINATION OF CO-OWNERSHIP BY PARTITION

Question 50

Is a land trust a revocable trust? | TRUE or FALSE ?

Answer 50

TRUE. Because the trust is a grantor trust that's revocable, they accept that transfer that it was done for estate planning. In fact, it's protected under the Garn St. Germain Act (the federal depository act) that prevents lenders from accelerating notes whenever there's a transfer into a grantor trust.

Question 51

It is formed specifically to hold real estate—real property is the only asset within the trust.

Answer 51

A LAND TRUST

Question 52

A testamentary trust avoids probate. | TRUE of FALSE?

Answer 52

FALSE. Property placed in a testamentary trust does not avoid probate.