Question 1

A life estate cannot be inherited.
12 A life tenant who makes improvements on leased property which are considered fixtures has an absolute right to remove them within a reasonable time after terminating the life estate.

Accepted Answer

A life estate is a property interest that lasts for the life of the life tenant. Upon the death of the life tenant, the property interest ends and cannot be inherited; it either reverts to the original grantor or passes to a remainderman. Improvements made by a life tenant that become fixtures (permanently attached to the property) generally become part of the real estate and do not have an absolute right to be removed after the life estate ends, as they are considered to enhance the property permanently.

Question 2

The fee simple defeasible corresponds to what the average person thinks of today as ownership of real property.

Accepted Answer

Fee simple defeasible is a type of property ownership that comes with conditions or terms under which the property could revert to the original grantor or another designated party. This is different from the more common and absolute type of ownership known as "fee simple absolute," which is what most people typically think of as full ownership of real property without conditions.

Question 3

A tenancy in common, like a joint tenancy or tenancy by the entirety, can be created only by will or deed.

Accepted Answer

A tenancy in common can be created by will, deed, or even by operation of law under certain circumstances, not exclusively by will or deed.

Question 4

The following is (are)considered a freehold estate(s):
A)fee simple absolute.
B)fee simple defeasible.
C)life estate.
D)all the above.
E)none of the above.

Accepted Answer

All the options listed (fee simple absolute, fee simple defeasible, and life estate) are types of freehold estates, indicating ownership interests in real property that are of indefinite duration.

Question 5

A joint tenancy requires all of the following "unities" except the unity of:
A)severance.
B)time.
C)interest.
D)possession.
E)title.

Accepted Answer

A joint tenancy requires the unity of time, interest, possession, and title. The unity of severance does not need to be present in a joint tenancy.

Question 6

A owns a fee simple absolute estate.A later grants a life estate to B and when B dies to C.A now owns a reversionary interest.

Accepted Answer

A does not retain a reversionary interest because A has granted a life estate to B and a remainder interest to C. A has transferred all of their interest in the property, so A retains no interest.

Question 7

A buyer of real property who wishes to receive the best interest possible would prefer a fee simple absolute over a fee simple defeasible.

Accepted Answer

A fee simple absolute is without any conditions or limitations on the property, while a fee simple defeasible has certain conditions that, if not met, could result in the property being transferred to someone else. Therefore, a fee simple absolute would offer better interest and ownership rights.

Question 8

A and B are joint tenants.A conveys his interest to C.B and C are now tenants in common.

Accepted Answer

When A conveys his interest to C, the joint tenancy between A and B is severed, resulting in B and C holding the property as tenants in common.

Question 9

The key factor necessary to establish a partnership is the existence of a functioning business
(Answers in boldface are correct)

Accepted Answer

A partnership involves two or more individuals or entities coming together to carry out a business venture. Therefore, the existence of a functioning business is a necessary requirement to establish a partnership.

Question 10

The most important characteristic of the joint tenancy is the right of survivorship.

Accepted Answer

In joint tenancy, when one owner dies, their share automatically passes to the surviving owner(s) by right of survivorship. This means that the surviving owner(s) become the sole owner(s) of the property.

Question 11

A tenancy by the entirety:
A)can only be created between husband and wife.
B)can only be terminated by the joint action of the husband and wife.
C)can only be seized by creditors if the debt was owed by both husband and wife.
D)All of the above.
E)None of the above.

Accepted Answer

A tenancy by the entirety is a type of joint ownership between husband and wife. It can only be created between husband and wife, and can only be terminated by the joint action of the husband and wife. Creditors can only seize the property if the debt was owed by both husband and wife. Therefore, all of the above options are correct.

Question 12

Which of the following is not a future estate?
A)reversion.
B)remainder.
C)right of entry.
D)defeasible fee.
E)executory interest.

Accepted Answer

Defeasible fee is not a future estate; it is a present interest in land that can be voided if certain conditions occur. Future estates, such as reversions, remainders, rights of entry, and executory interests, are interests that become possessory in the future, not immediately.

Question 13

In a trust arrangement, the beneficiary owns equitable title to the trust property.

Accepted Answer

The beneficiary of a trust holds equitable title to the trust property, while the legal title is held by the trustee.

Question 14

A limited liability can, as an entity, never be pierced by those seeking
to hold its members personally liability.

Accepted Answer

The concept of "piercing the corporate veil" allows courts, under certain circumstances, to hold the members or shareholders of a limited liability entity personally liable for the entity's debts or obligations.

Question 15

A fee simple absolute:
A)can be inherited.
B)is subject to government regulations.
C)provides ownership of the earth below and the sky above the boundaries of the owner's land.
D)all of the above.
E)none of the above.

Accepted Answer

A fee simple absolute can be inherited, is subject to government regulations, and provides ownership of the earth below and the sky above the boundaries of the owner's land.

Question 16

Property classified as community property may not be partitioned.

Accepted Answer

Community property can be partitioned or divided between the owners (typically spouses) either by agreement or court order, especially in the event of divorce or dissolution of the marriage.

Question 17

Florian owns a life estate in Blackacre and Walter owns a remainder interest.
A)Walter must pay the annual taxes and Florian the interest on any debts on Blackacre.
B)if the county charges Blackacre a curb and sidewalk assessment, only Walter would have to pay it.
C)Florian, since he presently occupies Blackacre, must by law pay the insurance on any buildings.
D)Florian would have to pay for ordinary repairs, such as painting or window replacements and Walter would have to pay for extraordinary repairs such as replacing a furnace.

Accepted Answer

The holder of a life estate is responsible for ordinary repairs, such as painting or window replacements, while the remainderman is responsible for extraordinary repairs, such as replacing a furnace. The other options are incorrect because the responsibility for taxes, assessments, insurance, and debts varies depending on the terms of the life estate and remainder interests, and may be assigned differently between the parties or shared.

Question 18

A restraint on alienation is in direct conflict with certain social policies and might be invalid depending on the extent of the restriction.
10 A life estate pur autre vie is a future interest.

Accepted Answer

A life estate pur autre vie is a future interest that grants a person the right to use and enjoy a property for the duration of someone else's life.

Question 19

Amy conveyed a deed to Carrie that created the following estates: "To Carrie provided that if the property is used for any uses other than recreation, grantor shall have the right to reenter the property and cause the grantee to forfeit the estate." Amy owns a ________ and Carrie owns a __________.
A)possibility of reverter/fee simple subject to a condition subsequent.
B)right of entry/fee simple determinable.
C)reversion/fee tail.
D)remainder/fee simple absolute.
E)right of entry/fee simple subject to a condition subsequent.

Accepted Answer

Amy retains the right to enter the property and terminate Carrie's ownership if the property is used for purposes other than recreation. This means that Carrie has a fee simple ownership that is subject to a condition subsequent, and Amy retains a right of entry to terminate Carrie's ownership.

Question 20

Estates generally fall into two categories: fee estates and freehold estates.

Accepted Answer

Estates generally fall into two categories: freehold estates and leasehold estates. Freehold estates are characterized by ownership of the land for an indefinite period, while leasehold estates involve the right to use and occupy land for a defined period.

Quiz 5: Types of Ownership

A life estate cannot be inherited. 12 A life tenant who makes improvements on leased property which are considered fixtures has an absolute right to remove them within a reasonable time after terminating the life estate.

The fee simple defeasible corresponds to what the average person thinks of today as ownership of real property.

A tenancy in common, like a joint tenancy or tenancy by the entirety, can be created only by will or deed.

The following is (are) considered a freehold estate(s) :

A joint tenancy requires all of the following "unities" except the unity of:

A owns a fee simple absolute estate.A later grants a life estate to B and when B dies to C.A now owns a reversionary interest.

A buyer of real property who wishes to receive the best interest possible would prefer a fee simple absolute over a fee simple defeasible.

A and B are joint tenants.A conveys his interest to C.B and C are now tenants in common.

The key factor necessary to establish a partnership is the existence of a functioning business (Answers in boldface are correct)

The most important characteristic of the joint tenancy is the right of survivorship.

A tenancy by the entirety:

Which of the following is not a future estate?

In a trust arrangement, the beneficiary owns equitable title to the trust property.

A limited liability can, as an entity, never be pierced by those seeking to hold its members personally liability.

A fee simple absolute:

Property classified as community property may not be partitioned.

Florian owns a life estate in Blackacre and Walter owns a remainder interest.

A restraint on alienation is in direct conflict with certain social policies and might be invalid depending on the extent of the restriction. 10 A life estate pur autre vie is a future interest.

Amy conveyed a deed to Carrie that created the following estates: "To Carrie provided that if the property is used for any uses other than recreation, grantor shall have the right to reenter the property and cause the grantee to forfeit the estate." Amy owns a and Carrie owns a __.

Estates generally fall into two categories: fee estates and freehold estates.