rep ch.2

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rep ch.2
2011-10-04 02:14:06

rep ch.2
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  1. 1. A leasehold interest is owned by a:
    A. lessee
    B. lessor
    C. life tenant
    D. remainderman
    • Answer: A
    • Explanation: A lessee (or tenant) has a leasehold interest in property.
  2. 2. Earl and Merle own a property together with undivided interests, without the right of survivorship. This would be considered:
    A. joint tenancy
    B. tenancy in common
    C. severalty
    D. a periodic estate
    • Answer: B
    • Explanation: Tenancy in common is the form of co-ownership with no right of survivorship.
  3. 3. Two business partners purchase property together as joint tenants. One partner then deeded her share of the property to herself and her husband. In this situation:
    A. the two partners continue to hold title as joint tenants, while the husband is a tenant in common
    B. all three parties are now joint tenants
    C. title is now held as community property
    D. the joint tenancy is terminated
    • Question #3
    • Answer: D
    • Explanation: Joint tenancy requires unity of time and title. The wife re-deeded her interest, even though it was just to herself and her husband, so the unities were broken and the joint tenancy is destroyed.
  4. 4. If a married couple wants to take title in a manner that guarantees the right of survivorship, they should take title in:
    A. severalty
    B. community property
    C. joint tenancy
    D. tenancy in common
    • Question #4
    • Answer: C
    • Explanation: Of all the methods of holding title, only joint tenancy includes the right of survivorship.
  5. 5. Sam has a proprietary lease on an apartment in a cooperative project. He makes monthly payments that include his proportionate share of principal, interest, taxes, insurance, and association fees. In this situation, which of the following is true?
    A. He cannot deduct interest and property taxes on his income tax return
    B. Any special assessments will be made against all the residents of the building, not against the building itself
    C. He will receive his own real property tax assessment for his unit
    D. If any other residents default on their leases, he could lose equity on his investment
    • Answer: D
    • Explanation: Because a cooperative project is financed with one single mortgage and taxed as one single property, the failure of one tenant to pay his share of the cooperative's operating expenses can harm all the tenants -- particularly if it leads to a foreclosure.
  6. 6. Joint tenancy ownership of real property requires which of the following?
    A. Husband and wife relationship
    B. The clause "right of survivorship" inserted in the deed with the names of the joint tenants
    C. Equal interests in the property held by each of the joint tenants
    D. All of the above
    • Question #6
    • Answer: C
    • Explanation: Each joint tenant must have an equal interest in the property. This is known as unity of interest.
  7. 7. If five siblings own a property as joint tenants and two of the siblings die, which of the following statements would be correct?
    A. The remaining three siblings would hold title as tenants in common
    B. There would be one title held by the remaining siblings
    C. The heirs of the deceased siblings would hold title as tenants in common, while the surviving siblings would continue as joint tenants
    D. The property would be partitioned among the surviving siblings
    • Answer: B
    • Explanation: Because of the right of survivorship, the interests of the deceased joint tenants are subsumed into the interests of the surviving joint tenants. There continues to be only one title to the property.
  8. 8. A joint tenant cannot dispose of his interest in real property through a:
    A. will
    B. lease
    C. gift
    D. sale
    • Answer: A
    • Explanation: A joint tenant cannot will his interest in property. Because of the right of survivorship, the other joint tenants automatically receive the deceased tenant's interest in the property without having to go through the probate process.
  9. 9. If a person holds fee simple title to real property in severalty, she would have:
    A. sole ownership
    B. co-ownership with other owners
    C. a defeasible interest
    D. title to multiple properties
    • Answer: A
    • Explanation: Ownership in severalty is ownership by one person or entity.
  10. Two people take title to property as "Luis Pena and Maria Pena, husband and wife." It can be assumed that they hold title to the property as:
    A. joint tenants
    B. tenants in common
    C. community property
    D. life tenants
    • Answer: C
    • Explanation: Married co-owners customarily hold title to property as community property. It is possible for them to hold title as joint tenants, but they would need to specify that in the deed.
  11. Al willed his property to his three children as joint tenants: Barry, Chris, and Dara. Barry then died, leaving behind a will stating that his share of the property would pass to his daughter Mary. Dara then sold her portion of the property to her friend Vera. At this point, how is the property owned?
    A. Mary and Chris own it as joint tenants
    B. Vera and Chris own it as tenants in common
    C. Mary, Vera and Chris own it as tenants in common
    D. Mary and Chris own their shares as joint tenants, while Vera owns her share as a tenant in common
    • Answer: B
    • Explanation: When Barry died, his attempt to pass his share to Mary failed. A joint tenant may not will his interest. Therefore, Chris and Dara were left as joint tenants. When Dara sold her share of the property, that terminated the joint tenancy between Dara and Chris. Chris and Vera continue to own the property together, but as tenants in common.
  12. What is defined as the right to possess, use, transfer, and dispose of a thing, to the exclusion of all others?
    A. An estate
    B. Equity
    C. Ownership
    D. Tenure
    • Answer: C
    • Explanation: Because this broadly refers to "a thing," which can encompass personal as well as real property, this is the definition of ownership. An estate is the right to possess and use real property.
  13. Adam leased a property from Casey for a five-year term. Casey died, at which point Adam found out that Casey had only a life estate in the property that he was leasing. The lease is:
    A. valid for the remaining five years
    B. valid until invalidated by the executor of Casey's estate
    C. valid only during the life of Casey
    D. invalid since it is fraudulent and illegal to lease a life estate
    • Answer: C
    • Explanation: A person with a life tenancy may lease the property to another person, but the lease is effective only until the end of the measuring life. At that point, the property will either revert back to the grantor, or pass to third parties holding an estate in reversion.
  14. Which of the following would be considered an interest in personal property?
    A. Improvements constructed on the land
    B. Mineral rights
    C. A leasehold estate
    D. Growing trees in a natural forest
    • Answer: C
    • Explanation: A lease is regarded as personal property, although it is closely related to real estate. In this manner, a lease may also be known as a chattel real.
  15. . Joel purchases a separate interest in a space, together with an undivided interest in common in the entire property. This kind of property would be:
    A. residential
    B. commercial
    C. industrial
    D. Any of the above
    • Answer: D
    • Explanation: The description of Joel's property is the description of a condominium. A condominium may be residential, commercial, or industrial.