Which of the following would be included in the “bundle of legal rights?”

A.Immobility.

B.Uniqueness.

C.Control.

D.Indestructibility.

C. Control 

The 5 components of The Bundle of Legal Rights Includes:

Disposition

Enjoyment

Exclusion

Possession

Control

In the “bundle of legal rights, ”which right allows the owner to sell or will their property?

A. Possession.

B. Control.

C. Enjoyment.

D. Disposition

D. Disposition 

note: Disposition= to sell, will, transpose

Bundle of Legal Rights (DEEPC)

1. Disposition

2. Enjoyment

3. Exclusion

4. Possession

5. Control 

The phrase “bundle of legal rights” refers to:

A. ownership of real property.

B. a legal description of real property.

C. the characteristics of real property.

D. the laws affecting real property.

When evaluating the economic characteristics of real estate, one would consider: (on final)

A. that land is durable

B. that the location of land cannot be changed.

C. that two parcels of land are exactly the same

D. investments to the land tend to be long term

D. Investments to the land tend to be long term

Economic Characteristics Include:

1.Permanance of Investment 

2. Improvements

3.Situs/area/location

4. Scarcity

The extent of an owner's rights in land would include:

A.only the surface of the earth.

B.the surface of the earth extending down to the center and upwardtoinfinity.

C.only the earth's surface and downwards to the center of the earth.

D.only the earth's surface and upward to the sky

All of the following are physical characteristics of land EXCEPT: (on final)

A. indestructibility

.B. uniqueness.

C. immobility.

D. scarcity

D. Scarcity

This is an economic characteristic of land.

Physical characteristics of land include (3):

1. Indestructibility

2. Immobility

3. Uniqueness

What is the single most important economic characteristic of land?

A.Immobility.

B.Uniqueness (non-homogeneity)

.C.Scarcity.

D.Location

Carr is interested in a house that fits most of her needs, but it is located in a busy area where sheis not sure she wants to live. Her concern about the property’s location is called:

A.physical deterioration.

B.area preference / location / situs.

C.permanence of investment.

D.immobility.

All of the following are economic characteristics of the land EXCEPT:

A. scarcity.

B. permanence of investment.

C. uniqueness.

D. area preference/situs

C. Uniqueness 

note: this is a physical property of land

The 4 economic characteristics of land=

1. Permanence of Investment

2. Improvements

3. Situs/area/location 

4. Scarcity 

All of the following are economic characteristics of the land EXCEPT:

(on final, know physical and economic properties)

A.scarcity.

B.permanence of investment.

C.uniqueness.

D.area preference/situs

C. Uniqueness 

this is a physical property of land

Economic Characteristics of land=

Permanence of Investment 

Improvemnts

Situs/area/location

Scarcity

The primary survey line running east and west in the rectangular survey system is the:

A.township line.

B.baseline.

C.range line.

D.principal meridian.

B. Baseline 

note: principal meridian runs north and south 

In a rectangular(government) survey system, a section contains: 

A.36 townships.

B.160 government lots.

C.160 acres.

D.640 acres

In a rectangular survey, normally the longer the legal description the:

A.larger the parcel of land.

B.greater the taxes.

C.smaller the parcel of land.

D.greater the specificity of use

The method of land description that identifies a parcel of land by starting at a definite point and describes the boundaries using directions, distances, and terminal points is known as the: (on final)

A. angular system

B. metes-and-bounds system.

C. rectangular-survey system.

D. lot-and-block system

B. Metes-and-Bounds

note: a key feature of metes-and-bounds is that it has a Point of Beginning "POB' designated spot where the description starts 

Which of the following descriptions of real property would generally be used to identify a parcel of land in a subdivision?

A. lot and block system.

B. geodeticsurvey system.

C. rectangularsurvey system.

D. metes-and-bounds system

A. Lot and Block system

note: This system uses lot and block numbers referred to in a plat map filed in the public records of the county where the land is located.

The plat map is a map of a town, a section, or a subdivision, indicating the location and boundaries of individual properties. The lot-and-block method is used mostly in subdivisions and urban areas.

Something that runs with the land and transfers with the sale of real property would BEST be defined as: 

A. a trade fixture

.B.an appurtenance.

C.an emblement.

D. chattel property

Which of the following properties would most likely be affected by littoral rights? (on final)

A. A house in the desert.

B. Land bordering on the shore of an ocean.

C.A cabin along the river.

D.A high use condominium development

B. Land bordering on the shore of an ocean

Littoral Rights= land bordering water..

A riparian owner would most likely own which of the following properties?

A. A cottage adjacent to a pond.

B. A vacation home on the sea shore.

C. A mountain cabin along a stream.

D. A residential home located in the desert

C. A mountain cabin along a stream

Riparian= along water 

A rancher owns a parcel of land on which oil is discovered. If the rancher has not previously conveyed the oil rights, who owns the oil? 

A.The rancher.

B.The tenant to whom the property has been leased.

C.The state government.

D.The federal government

The rancher

(subsurface rights)

All of the following are properly described by the word “improvement” EXCEPT:

A.streets.

B.a sanitary sewer system.

C.trade fixtures.

D.the foundation of a building

C. Trade fixtures

aka chattel fixture article owned by a tenant attached to rented space or building for business 

note: improvements include: on site or off site water lines, sewers, new homes, recreational amenities. 

Which of the following statements best describes a fixture?

A.An article that was once personal property

.B.An article that is personal property.

C.An article that can removed upon the sale of the land.

D.An article that is no longer considered real property

A. an article that was once personal property

fixture= personal property attached to land or building by LAW it becomes part of real property

A chandelier attached to the ceiling in a seller’s house would MOST LIKELY be considered:

A.an emblement.

B. chattel.

C. a fixture.

D. personal property

C. a fixture

A fixture is personal property that has been so attached to land or a building that, by law, it becomes part of the real property.

Examples:

heating systems, elevator equipment in high rise buildings, radiators, kitchen cabinets, light fixtures, and plumbing. Almost any item that has been added as a permanent part of a building is considered a fixture.

Which of the following would be considered a fixture?

A.A fence around a farm pasture.

B.A pond on a farm.

C.A pasture on a farm.

D.A farm tractor.

A broker showed an owner-occupied property that had window screens and custom Venetian blinds, to a buyer whose offer was then accepted by the owner. Before the closing,the seller may remove:

A.both items because they are trade fixtures

.B.only the Venetian blinds as personal property.

C.only the Venetian blinds because they are real property.

D.none of the identified items

D. none of the identified items

blinds would've need to be removed before showing

Which of the following is NOTa test to identify a fixture?

A.Intent of the parties

.B.Monetary valueof the item

.C.Method of attachment of the item.

D.Adaptation of the item to the real estate

B. Monetary value of the item

Method of annexation

Adaptation

Relationship

Intention

Agreement 

Baird leases store space to Carr for a restaurant. Carr installs his ovens, booths, counters and other equipment. These items are considered to be:

A.emblements.

B.fixtures.

C.trade fixtures.

D.real property.

C. Trade Fixtures 

(chattels) fixtures associated with business 

Trade fixtures are removable by the tenant:

A.before expiration of the lease and the landlord is responsible for any damages caused by

their removal.

B.before expiration of the lease and the tenant is responsible for any damages caused by their removal.

C.after expiration of the lease and the landlord is responsible for any damages caused by their removal.

D.after expiration of the lease and the tenant is responsible for any damages caused by their removal

The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by:

A.severance.

B.annexation.

C.immobility.

D.indestructibility

B. Annexation 

personal->real

note: severance: real->personal

A farmer is growing crops and decides to sell his property. Could the farmer have the right to come back and harvest the current crops after the farm has been sold?

A.Yes, emblements are the personal property of the farmer and the purchase agreement should clearly address re-entry.

B.Yes, the crops are considered trade fixtures and can be removed before or after closing.

C.No, crops are considered fixtures and belong to the new owner.'

D.No, crops are real property and cannot be removed

A. Yes, emblements are personal property of the farmer and the purchase agreement should clearly address re-entry

note: emblements do not require annual cultivation

Which of the following is considered personal property?

A. Wood-burning fireplace

B. Awnings.

C. Bathtubs.

D. Patio furniture

D. Patio Furniture

note: patio furniture is a common example of personal property in that it can easily be removed from property 

Baird leases store space to Carr for a restaurant, and Carr installs his ovens, booths, counters, andother equipment. When would these items become real property?

A.After they are installed.

B.After Carr defaults on his rental payments.

C.After the lease takes effect.

D.At lease expiration, if Carr does not remove them.

Real property can become personal property by:

A.severance.

B.purchase.

C.hypothecation.

D.attachment

A. severance 

real->personal= severance 

In a metes and bounds land description, which of the following statements is INCORRECT?

A.It starts at a well-marked point of beginning.

B.It is used to describe an irregular-shaped parcel of land.

C.Deed measurements prevail over the actual measurements between monuments.

D.Trees and iron pins can be used as monuments to mark theboundaries

The maximum possible freehold estate one can possess in real property is a: (on final)

A.Defeasible fee estate.

B.Fee simple estate.

C.Life estate.

D.Homestead

A person wants to ensure that the ownership of real property can be willed to her children. Which of the following forms of ownership would the person want?

A.A conventional life estate.

B.A fee simple estate.

C.A joint tenancy.

D.A homestead estate.

A deed conveys ownership to the buyer with a stipulation that the existing building is not to be torn down. What type of estate did this deed create?

A.A life estate.

B.A non-destructible estate

.C.A fee simple estate

.D.A defeasible fee estate

D. A Defeasible fee estate 

Fee simple determinable:

“So long as”

“While”

“During”

Fee simple subject to a condition subsequent:

“on condition that”

An owner of a life estate with a remainder interest desired to sell their interest. Which of the following statements is correct?

A. A life estate interest cannot be sold.

B. The remainderman would lose their interest if the property is sold.

C. The buyer would receive the same interest the life tenant had.

D. The remainderman would have to sign the listing.

C. The buyer would receive the same interest the life tenant had 

note: this is a principle of remainder interest 

A conventional life estate conveys to the life tenant:

A.a leasehold for life.

B.a reversionary interest.

C.a remainder interest.

D.ownership for the tenant’s life

Baird conveys a life estate to her grandson and stipulates that upon her grandson’s death the estate will pass to herson-in-law. The son-in-law has a(n):

A.reversionary interest

.B.remainder interest.

C.estate for years.

D.legal life estate

B. Remainer interest 

the creator of the life estate may name a remainderman as the person whom the property will pass when the estate ends

Carr conveys the ownership of his house to his mother and stipulates that upon her death he will recapture the ownership. Carr's interest in the ownership would BEST be described as a:

A. remainder interest.

B. homestead.

C. legal life estate. 

D. reversion interest

D. Reversion interest 

the creator of the life estate may not to name remainderman. Ownership returns to the original owner when the life estate ends

Carr conveys his fee simple estate to Baird for Baird’s lifetime and designates Dole to be the remainderman.When Baird dies,Dole automatically receives a:

A.leasehold estate.

B.estate in reversion

.C.fee simple estate.

D.life estate

C. Fee simple estate

Life estates->when the life estate ends, it is replace by a fee simple estate 

A homestead exemption protects against judgments:

A.of unsecured creditors.

B.that result from unpaid taxes.

C.that result from foreclosure of a mortgage.

D.that result from the costs of improvements

A. of unsecured creditors 

note: homestead exemption laws, a portion of the land or value of the property occupied as the family home is exempt from certain judgments for debts, such as charge accounts(Creditors)  and personal loans,

Creditors are trying to force a homeowner to sell her home to pay for debts such as charge accounts and personal loans. The homeowner may be allowed certain protection from judgments of creditors as a result of her state’s:

A.homestead rights.

B.littoral rights.

C.curtesy rights.

D.dower rights

A. Homestead rights 

note:  In states that have homestead exemption laws, a portion of the land or value of the property occupied as the family home is exempt from certain judgments for debts, such as charge accounts and personal loans

Which of the following is NOTa form of co-ownership?

A.Tenancy in common.

B.Ownership in severalty.

C.Tenancy by the entirety.

D.Community property.

B. Ownership in severalty 

4 forms of co-ownership:

1. Tenancy in common

2. joint tenancy 

3. tenancy by the entirety 

4. community property 

In a residential community, a single person buys one lot in the subdivision. This would be an example of: 

A. community property.

B. severalty ownership.

C. a tenancy in common.

D. a joint tenancy

B. severalty ownership 

aka sole ownership, owner has the sole rights and can sell, will, lease or transfer part or all ownership rights to another person 

(note: only answer that is not a form of co-ownership 

Which form of ownership requires the unities of possession, interest, time and title?

A.Severalty.

B.Tenancy in common

.C.Joint tenancy

.D.Tenancy by the entirety

C. Joint Tenancy 

1.Possession

2.Interest

3.Time

4.Title

In receiving ownership to a parcel of real estate, one of the two new owners received an undivided 60% interest and the other received an undivided 40%. They now hold interests as:

A.cooperative owners.

B.joint tenants.

C.community property owners.

D.tenants in common.

D. tenants in common

interests can be equal or unequal

A married couple wants to acquire ownership of property together without the right of survivorship. Which of the following forms of ownership would accomplish this?

A.Estate in severalty.

B.Joint tenancy.

C.Tenancy by the entirety.

D.Tenancy in common.

D. Tenancy in common 

(right of survivorship doesn't apply) 

To create a joint tenancy relationship in the ownership of real estate, there must be unities of:

A. grantees, ownership, claim of right and possession

B. title, interest, encumbrance and survivorship.

C. possession, time, interest and title.

D. ownership, possession, heirs and title

c. Possession, time, interest, and title

Possession 

Interest

Time

Title

4 tenants of joint tenancy

A joint tenancy with the right of survivorship may be created:

A. automatically by operation of law.

B. by presumption if another form of ownership is not described

C. if specified in the deed or will.

D. automatically if a deed is signed by both spouses

C. if specified in the deed or will

note: right of survivorship is applicable in a joint tenancy. It may be created by PITT, where T=Title must be stated on the deed preferably including "with right of survivorship"

What type of ownership would provide for the remaining owners to receive a deceased owner’s interest by the right of survivorship?

A. Tenancy in common.

B. Joint tenancy.

C. Community property.

D. Severalty

B. Joint Tenancy 

note: right of survivorship is applicable to joint tenancy and tenancy by the entirety. 

Baird and Carr owned real property as joint tenancy. Baird dies and wills his property to his wife.Who would receive Baird’s interest under the joint tenancy?

A.Baird’s wife.

B.Carr.

C.Carr and Baird’s wife.

D.Baird’s estate.

B. Carr

**upon the death of a joint tenant their interest passes to the remaining  survivors***

Baird and Carr purchased property as joint tenants. Carr recently died. Baird now owns the property:

A.as a joint tenant with rights of survivorship.

B.in severalty.

C.as tenants in common with Carr’s heirs.

D.in trust.

B. in severalty

(sole ownership) only one owner left 

For a property to be held in tenancy by the entirety, which of the following is correct? 

A. The co-tenants must be lawfully married husband and wife

B. Either spouse can convey his or her interest without the consent of the other spouse.

C. Upon the death of a co-tenant, the decedent interest will pass to his or her heirs.

D. In the event of a dispute the property may be partitioned

A. co-tenants must be lawfully married husband and wife 

note: this is a key feature of tenancy of entirety 

Which of the following would be considered community property?

A.Gift of property to a wife during her marriage.

B.Property bought during the marriage

.C.Property inherited by a husband during marriage.

D.Rental property owned by either husband or wife prior to the marriage

B. Property bought during the marriage 

**by definition 

Baird, Carr and Falk are co-owners of a residential house on a lake. Baird sells her 50% interest to Able. Baird, Carr and Falk owned the property: (on final)

A.in severalty.

B.as tenants in common.

C.as joint tenants with rights of survivorship.

D.as a tenancy by the entirety.

B. tenants in common

note: tenancy in common= ownership interest that is divided NOT property &

each co-owner can sell, mortgage, will or transfer their interest w/o consent of the other owners 

Which of the following statements applies to both joint tenancy and tenancy by the entirety ownership? (on final)

A. They both include the right of survivorship.

B. They both require the owners to be legally married.

C. There is no right to file a partition suit.

D.A deed must be signed by all owners

A. they both include the right of survivorship

note: Joint Tenancy & Tenancy by the Entirety  CANNOT be inherited allowing for the right of survivorship. 

Which of the following is NOT a characteristic of tenancy in severalty?

A.Ownership of real property vested in one person alone.

B.When the owner dies, the property is probated to the heir or devisees.

C.Corporations often hold title and property in severalty

.D.Ownership of property held jointly by several persons.

The co-owner of property held as tenants in common dies. His/her share of the property ownership would most likely pass to:

A. The remaining tenants in common

B. His/Her heirs.

C. The spouse or children

D. The state.

B. His/Her heirs 

note: tenants in commons property is inheritable (right of survivorship does NOT apply) 

The unequal sharing of ownership is permitted under which of the following types of ownership?

A. Joint tenancy.

B. Tenancy in common

C. Tenancy of the entirety.

D. Tenancy in severalty

A life tenant in a life estate CANNOT do which of the following?

A.Mortgage the property

B.Will the property.

C.Sell the property.

D.Lease the property

B. Will the property

Life tenant: person who receives the estate, ends when life ends. Life estates are NOT inheritable 

A corporation with six stockholders would MOST LIKELY hold title to property as: (on final)

A.an estate in severalty.

B. A tenancy by the entirety

C. community property.

D. a joint tenancy

A. an estate in severalty

"Because the corporation is a legal entity it can own real estate in severalty or as tenant in common 

In a limited partnership, can a limited partner be held liable for more than the extent of their investment?

A. No, liability cannot exceed their initial investment

.B. No, the partnership usually has insurance to pay for any investment loss.

C. Yes, all the partners are individually held responsible for all losses of the partnership.\

D. Yes, up to twice the initial investment

In a limited partnership: (On Final)

A.the number of investors is limited to 10.

B.all the partners participate in running the business.

C.the general partners run the business.

D.investors may participate with only a small amount of capital butwith unlimited liability

 c. the general partners run the business 

note: A limited partnership consists of one or more general partners, as well as limited partners. The business is run by the general partner or partners

When two or more persons join to make and operate a real estate investment, the arrangement is called a: (on final)

A. subdivision.

B. timeshare.

C. syndicate.

D. group investment

C. syndicate 

(note: not in book, but will be on an exam) 

An ownership interest in real property consisting of an individual fee simple interest in a commercial office or retail store and an undivided interest in the common area would BEST describe which of the following?

A.Cooperative.

B.Timeshare.

C.Condominium ownership

.D.Real estate investment trust

C. Condominium ownership

note: condominium laws: the owner of each unit holds a fee simple title to the unit. The individual unit owners also own a specified share of the undivided interest in the remainder of the building land 

Under condominium ownership, individual unit owners have what form or ownership in the common elements?

(on final)

A. Severalty.

B. Community property.

C. Tenancy in common

D. Joint tenancy

C. Tenancy in common

note: unit owners own the common elements as tenants in common 

Under condominium laws (horizontal property acts), the owner of each unit:

A. holds a fee simple title to the unit.

B. owns a specified share of the common elements as joint tenants

.C. has the right to partition the other owners of the common elements.

D.is not responsible for the payment of taxes and insurance on their unit

A. holds a fee simple title to the unit 

note: the horizontal property acts state that each property owner holds fee simple ownership to their individual unit

slide 12 session 3 lecture 2

Which of the following about a condominium is INCORRECT?

A.A declaration must be filed before any units may be sold.

B.Each unit owner has a fractional undivided interest in the common elements.

C.Each owner receives a separate real estate tax statement.

D.Each owner has a propriety lease with the association for his or her own unit.

The owner of a condominium unit has failed to pay his real estate taxes. If the owner does not pay the taxes:

A.a lien can be filed against all of the units.

B.a lien can be filed against the defaulting owner’s unit

.C.a lien can be filed only against the common areas condominium

.D.the taxing authority can order the condominium to be dissolved.

An ownership interest that is based on annual occupancy intervals is a:

A.leasehold.

B.timeshare.

C.condominium.

D.cooperative

Which of the following is correct in regard to cooperative ownership?

A. Each individual cooperative owner has title to the real property.

B.A cooperative owner may mortgage his own unit.

C. Cooperative owners may sell their interests without  the approval of the corporation.

D.A cooperative owner has stock in the corporation and is entitled to a propriety lease.

Mary lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, she owns stock in the corporation and has a lease to her apartment. This type of ownership is called a:

A. condominium.

B. planned unit development

.C. timeshare.

D. cooperative

D. Cooperative 

Because Mr. and Mrs. Jennings no longer need their large house, they decide to sell it and move into a cooperative apartment building. In a cooperative ,they will:

A.become stockholders in a corporation.

B.own their individual apartment.

C.own the common elements.

D.receive a 20-year lease to their apartment

How does a cooperative obtain the funds necessary to cover ongoing operating expenses and mortgage payments?

A.By charging rent.

B.By selling common elements.

C.By collecting regular assessments from shareholders.

D.By charging special assessments

A trust is a legal arrangement in which title to property is held for the benefit of a third party by a(n):

A.beneficiary

.B.trustor.

C.trustee

.D.attorney in fact.

Which of the following terms would most likely be used to describe the elevation of a condominium unit located on the seventh floor of a building?

A.Section.

B.Datum

.C.Base line.

D.Point of beginning (POB).

B. Datum 

note: datum= a land description term for which height and depth can be measured 

In a trust, legal title to real property is transferred to a person to be held and managed by the person for the benefit of the:

A.trustee.

B.trustor.

C.beneficiary.

D.grantor

C. Beneficiary 

note: beneficiary benefits from the trust

Which of the following would best describe interval ownership?

A.A timeshare ownership in which the owner acquires title to a specific property for a certain period of each year.

B An ownership interest in a limited partnership.

C.A leasehold interest in a cooperative.

D. Trust ownership, whereby legal title to the property is transferred to a trustee to be held and managed for the benefit of another

In Georgia, which of the following types of ownership is

NOTrecognized?

A.Joint tenancy.

B.Life estate.

C.Tenancy in common.

D.Tenancy by entirety

In Georgia, a contract contains a legal description of the property. Which of the following would NOT be a part of that description? (on final)

A.A reference to and lot and district

B. The name of the county and state.

C. Baseline reference.

D. The subdivision name

It is good business practice to take the legal description from the seller's warranty deed when you get the listing. If the seller does not have a copy of his or her warranty deed, it may be found at the county courthouse. In locating the seller's deed in the record room of the courthouse your first point of reference would be the:

A. plat map

.B. deed book

.C. plat book.

D. grantor-grantee index

Under the Georgia real estate license law, when a mobile home is affixed to land it is considered:

A.real estate

.B.personal property

.C.an easement.

D.a leasehold estate

In Georgia, a married couple could hold title to real property together as:

A.an estate in severalty. 

B. community property.

C. tenancy by the entirety.

D. tenancy in common

D. Tenancy in Common

note: Tenancy by the entirety and community property can be eliminated because they ARE NOT recognized in GA. Severalty= sole ownership. Thus Tenancy in common is the best answer. 

In Georgia, which of the following forms of ownership must be stated in writing on the deed?A.Tenancy in common.

B.Joint tenancy with rights of survivorship.

C.Tenancy by the entirety.

D.Community property

A real estate licensee is using a street address only as a substitute for the legal description in a purchase and sale agreement. Is this practice acceptable by the Georgia Real Estate Commission?A.Yes, if both the buyer and seller agree in writing.

B.No, the Commission does not consider a street address a sufficient legal description.

C.Yes, providing the broker is notified.

D.No, all legal descriptions in Georgia must include a metes and bounds.

A married couple asked a licensee how they should take ownership to a property they are buying. The licensee should recommend they consult: (on final)

A.a real estate broker.

B.a lender.

C.a title company.

D.an attorney

In Georgia, developers of timeshare projects must provide a written statement containing information essential to prospective buyers and the buyer’s right to rescind the contract.

This information would be contained in the:

A.public offering statement and the right to rescind is three (3)days.

B.public offering statement and the right to rescind is seven (7)days

.C.sales contract and the right to rescind is three (3)days.

D.sales contract and the right to rescind is seven (7) days