Unit 3 Exam

Question 1

What are deed restrictions?

A)
Illegal land restrictions
B)
Informal agreements between neighbors
C)
Private agreements affecting the use of the land
D)
Public land restrictions
Explanation
The answer is private agreements affecting the use of the land. Deed restrictions are private agreements written into a deed and are privately enforced. Examples of public restrictions include zoning and building codes.

Answer 1

C)

Private agreements affecting the use of the land

Question 2

Question #2 of 27
Question ID: 936060
The type of easement that is a right-of-way for a utility company’s power lines is

A)
an easement by necessity.
B)
an easement by prescription.
C)
an easement in gross.
D)
a nonassignable easement.
Explanation
The answer is an easement in gross. Easements in gross are individual rights to use someone's land, as in the case of the utility company. A commercial (but not a personal) easement in gross can be assigned, conveyed, and inherited.

Answer 2

C)

an easement in gross.

Question 3

Question #3 of 27
Question ID: 784958
An individual’s or company’s interest in or right to use someone else’s land that is not adjacent to or near property of the individual or company is an easement

A)
by prescription.
B)
appurtenant.
C)
in gross.
D)
by necessity.
Explanation
The answer is in gross. Commercial easements in gross may be assigned, conveyed, and inherited. Person easements in gross are usually not assignable and terminate on the death of the easement owner.

Answer 3

C)

in gross.

Question 4

Question #4 of 27
Question ID: 936479
Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been

A)
a principal interest.
B)
a remainder interest.
C)
a reversionary interest.
D)
a limited interest.
Explanation
The answer is a reversionary interest. If the estate returns to the grantor, it is known as a reversionary interest. If the estate goes to another party, that party has a remainder interest.

Answer 4

C)

a reversionary interest.

Question 5

Question #5 of 27
Question ID: 784968
A property owner can seek compensation when the property’s value has been diminished because of an adjacent public use by claiming

A)
inverse condemnation.
B)
appraisal rights.
C)
a taking.
D)
eminent domain.
Explanation
The answer is inverse condemnation. Even though property is not used when constructing an adjacent public improvement, such as a highway, its value may be significantly diminished because of the existence of the improvement.

Answer 5

A)

inverse condemnation.

Question 6

Question #6 of 27
Question ID: 936521
The holder of a life estate is called

A)
a successor.
B)
a life tenant.
C)
a remainderman.
D)
an encumbrance.
Explanation
The answer is a life tenant. A life tenant is not a renter like a tenant associated with a lease. A life tenant is entitled to the rights of ownership and can benefit from both possession and ordinary use, just as if the individual were a fee simple owner, but only while the life tenant is still living.

Answer 6

B)

a life tenant.

Question 7

Question #7 of 27
Question ID: 936499
A claim against another’s property is known as

A)
fee simple.
B)
a license.
C)
chattel.
D)
an encumbrance.
Explanation
The answer is an encumbrance. An encumbrance is any right to, or claim against, property held by someone other than the property owner.

Answer 7

D)

an encumbrance.

Question 8

Question #8 of 27
Question ID: 774063
All of the following will terminate an easement EXCEPT

A)
nonuse of a prescriptive easement.
B)
release of the right of easement to the dominant tenement.
C)
when the need no longer exists.
D)
abandonment of easement.
Explanation
The answer is release of the right of easement to the dominant tenement. An easement is terminated when the owner of the dominant tenement releases that right to the owner of the servient tenement.

Answer 8

B)

release of the right of easement to the dominant tenement.

Question 9

Question #9 of 27
Question ID: 936495
A property owner has given a neighbor permission to park a camper in the owner’s yard for a few weeks free of charge. The neighbor has

A)
a license.
B)
an estate for years.
C)
a freehold estate.
D)
an easement.
Explanation
The answer is a license. Personal, revocable, and unassignable permission to use another's land is a license.

Answer 9

A)

a license.

Question 10

Question #10 of 27
Question ID: 936055
Which of the following is NOT an example of governmental power?

A)
Police power
B)
Eminent domain
C)
Taxation
D)
Remainder
Explanation
The answer is remainder. The four governmental powers that limit private rights to ownership of land are represented by the acronym PETE (police power, eminent domain, taxation, and escheat).

Answer 10

D)

Remainder

Question 11

Question #11 of 27
Question ID: 936517
Which of these must exist for an appurtenant easement to exist?

A)
Long-time unauthorized usage
B)
Landlocked property that requires passage to the street
C)
Two adjacent parcels, one owner
D)
Two adjacent parcels, different owners
Explanation
The answer is two adjacent parcels, different owners. An easement appurtenant must have two owners and two parcels of land. A landlocked parcel would require an easement by necessity; long-time unauthorized usage would lead to an easement by prescription.

Answer 11

D)

Two adjacent parcels, different owners

Question 12

Question #12 of 27
Question ID: 784965
The holder of the possibility of reverter of ownership of real estate (or the holder’s heir or successor) can reacquire full ownership of the property on violation of a special limitation

A)
by bringing a suit to quiet title in court.
B)
with filing of a notice of transfer of title in a newspaper of public record.
C)
by petitioning the court for a certificate of title.
D)
with no need to bring a legal action in court.
Explanation
The answer is with no need to bring a legal action in court. If the holder of a fee simple determinable violates the special limitation that has been imposed on the title, the holder of the possibility of reverter (or heir or successor) can reacquire full ownership with no need to bring a legal action in court.

Answer 12

D)

with no need to bring a legal action in court.

Question 13

Question #13 of 27
Question ID: 936489
A family owns a house across the street from a lake but has the right to use the lakefront homeowner’s driveway to access the lake because of the existence of

A)
an easement.
B)
a homestead.
C)
a life estate.
D)
an encroachment.
Explanation
The answer is an easement. An easement is the right to use the land of another for a particular purpose.

Answer 13

A)

an easement.

Question 14

Question #14 of 27
Question ID: 936481
The state’s power to regulate land use is

A)
temporary.
B)
challengeable.
C)
effective until zoning ordinances have been established.
D)
absolute.
Explanation
The answer is challengeable. The state's power to regulate land use is not absolute, but may be questioned by a legal action or appeal process.

Answer 14

B)

challengeable.

Question 15

Question #15 of 27
Question ID: 936502
An encroachment describes improvements that

A)
does not comply with zoning.
B)
has not been recorded.
C)
is in need of deferred maintenance.
D)
extend over adjoining lot lines.
Explanation
The answer is extend over adjoining lot lines. An example of an encroachment is a shed that extends two feet onto the neighbor's property.

Answer 15

D)

extend over adjoining lot lines.

Question 16

Question #16 of 27
Question ID: 936493
When an individual dies, leaves no will, and has no statutory heirs, any real property will transfer to the state through a process called

A)
eminent domain.
B)
police power.
C)
escheat.
D)
taxation.
Explanation
The answer is escheat. Escheat (revert) is the process whereby the state may acquire privately owned property when an owner dies and has no heirs or a will or living trust indicating how the real estate is to be distributed.

Answer 16

C)

escheat.

Question 17

Question #17 of 27
Question ID: 936478
Every state has the power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens. That authority is known as a state’s police

A)
enforcement.
B)
power.
C)
presence.
D)
authority.
Explanation
The answer is power. Every state can enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens by the authority of its police power.

Answer 17

B)

power.

Question 18

Question #18 of 27
Question ID: 936054
An easement appurtenant

A)
runs with the land.
B)
terminates with the sale of the property.
C)
is a right-of-way for a utility company.
D)
is revocable.
Explanation
The answer is runs with the land. An easement appurtenant can only be created if the adjacent properties involved have different owners. This easement runs with the land and transfers with the deed.

Answer 18

A)

runs with the land.

Question 19

Question #19 of 27
Question ID: 936051
The owner of fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital “so long as it is used for hospital purposes.” After completion of the gift, the hospital will own

A)
a leasehold estate.
B)
a fee simple determinable.
C)
a fee simple absolute estate.
D)
a license.
Explanation
The answer is a fee simple determinable. A determinable fee estate has a special limitation and may end automatically if there is noncompliance with that stipulation. Language such as so long as or while characterize this estate. The hospital's ownership of the lot would come to an end if the property were to be no longer used for hospital purposes, and the lot would immediately become the property of the former owner or that owner's heirs.

Answer 19

B)

a fee simple determinable.

Question 20

Question #20 of 27
Question ID: 936483
Another name for a qualified fee estate is

A)
the legal life estate.
B)
the conventional life estate.
C)
the fee simple defeasible.
D)
the fee simple absolute.
Explanation
The answer is the fee simple defeasible. A fee simple defeasible estate is a qualified fee estate subject to the occurrence or nonoccurrence of some specified event.

Answer 20

C)

the fee simple defeasible.

Question 21

Question #21 of 27
Question ID: 441337
A homestead is a legal life estate in real estate that is

A)
a secondary residence.
B)
leased by renters.
C)
used as a vacation home.
D)
occupied as the family home.
Explanation
The answer is occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgments for debts other than those secured by the property.

Answer 21

D)

occupied as the family home.

Question 22

Question #22 of 27
Question ID: 774887
The process whereby the government acquires privately owned property for public use is

A)
police power.
B)
condemnation.
C)
escheat.
D)
eminent domain.
Explanation
The answer is condemnation. Condemnation is the process the government exercises when acquiring property. The process can be either judicial or administrative.

Answer 22

B)

condemnation.

Question 23

Question #23 of 27
Question ID: 936058
The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbor’s property. The fence is an example of

A)
an easement by prescription.
B)
an encroachment.
C)
an easement by necessity.
D)
a license.
Explanation
The answer is an encroachment. To build over a property line is to encroach on the property of another.

Answer 23

B)

an encroachment.

Question 24

Question #24 of 27
Question ID: 453101
Which of the following has an indeterminable duration?

A)
Freehold estate
B)
Estate for years
C)
Less-than-freehold estate
D)
License
Explanation
The answer is freehold estate. Freehold estates, which last an indeterminable length of time, include fee simple, defeasible fee, and life estates.

Answer 24

A)

Freehold estate

Question 25

Question #25 of 27 Question ID: 784980 Which of the following is NOT an encumbrance on real estate? ``` A) Lien B) Fixture C) Restrictive covenant D) Easement Explanation The answer is fixture. An encumbrance is a right in, or claim against, property held by someone other than the property owner. ```

Answer 25

B) | Fixture

Question 26

Question #26 of 27 Question ID: 453099 A statutory right that a family has in its residence is called ``` A) survivorship. B) curtesy. C) entirety. D) homestead. Explanation The answer is homestead. A homestead is a legal life estate that ensures that the home (or part of it) is protected from creditors during the occupants' lifetime. ```

Answer 26

D) | homestead.

Question 27

Question #27 of 27 Question ID: 936477 The estate in land that is qualified by a special limitation is ``` A) the reversionary interest. B) the fee simple absolute. C) the fee simple subject to a condition subsequent. D) the fee simple determinable. Explanation The answer is the fee simple determinable. The fee simple determinable estate is qualified by a special limitation, which is an occurrence or event distinguished by wording such as "so long as" or "while" or "during." ```

Answer 27

D) | the fee simple determinable.