Pearson Vue Exam Questions and Correct Answers

Pearson Vue Exam Questions and Correct Answers Real property interests include... an appurtenance that goes with the land. Examples: buildings, fences, trees, water rights, the ground below, mineral rights, air rights, easements What is a form of ownership that is restricted to husbands and wives? Tenancy by the entirety. Each owns the entire parcel. Neither can separately convey and interest during the other's life time. On the death of a spouse, the survivor owns the property Divorce would change this ownership to a tenancy in common What would result from a condition in a deed? a. fee simple b. defeasible fee c. chattels real. d. nonfreehold estate B. Defeasible Fee Fee simple determinable is a defeasible estate that could be lost lost upon the happening of a specified condition. If a deed specifies that a grant shall be only "for as long as"; or while a property is in a particular use, the length of the estate is really determined by the deed J installed central air-conditioning in his home. the compressor unit, which was located outside the home, would be regarded as what? Real property an investor's personal assets could be subject to a creditor's claim in a... General Partnership An active partner and has unlimited personal liability for the debts of the partnership. One general partner can personally obligate the other general partners (Part of Tenancy in Partnership) How does an S corporation differ from other corporations? Its investors have no personal liability A tenant in a commercial building installed a large sign that was anchored to the building with steel rods. Which term properly describes the sign? A.Fixture B. Trade fixture C. Real Property D. Emblement B. Trade Fixture Installed by a tenant for the purpose of conducting a business or trade. A tenant can remove a trade fixture but is liable for removal damage to real property . What type of real property description would include reference to an iron stake? Metes and bounds (aka measurements and directions) Shows the boundaries of parcel by measuring from point to point. The measuring points in a metes-and-bounds description are known as monuments. Two types of monuments: -natural monuments: tress, rocks, rivers -artificial monuments: iron stakes, fences, roads A tenancy in common differs from a joint tenancy in that... tenants in common may have unequal interests Chattels real differ from appurtenances in that they Are personal property The definition of chattel refers to all personal property (things you own other than real estate). An example of chattel is your furniture and car. Rights, benefits, and improvements that go with the land are known as Appurtenances which would be classified as real property? A. Trade Fixtures B. Chattels Real C. Water rights D. Mortgages C. Water Rights What are three of the tests of a fixture? 1. Adaptability: Legal rather than a physical attachment. If an item is reasonably necessary for the normal use of the property, it probably is a fixture, even though it is not attached 2. Intent: Intent is considered the most important test of a fixture when there isn't an agreement. Did the parties intend that property would become part of the real estate? Can be hard to prove intent. 3. Attachment: Can the item be removed w/o causing major damage to the real property? Is the method of attachment of a permanent nature? 4. Agreement: A written agreement of the parties as to whether an item is a fixture and shall remain with the real estate or shall be regarded as personal property will govern the character of the property between the parties. All of the ownership rights that transfer with a fee simple estate are known as bundle of rights Items that were formerly personal property but are now regarded as real property would be described as Fixtures An example of a real property security would be A.Condominiums sold with a mandatory rental pool arrangement B. General partnership shares in investment property C. a Pur Autre Vie Estate D. A vested remainder interest A. Condos sold with a mandatory rental pool arrangement Real property security: Investors are inactive participants, such as limited partnerships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another. What are real property securities? Investment in which investors are inactive participants, such as limited partnerships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another. Part of a legal description on a deed stated " 38 degrees 7'". What type of description was it? Metes and bounds A brother and sister hold land as joint tenants. The sister conveys one-half of her interest to her husband. Ownership would now be held by the Brother sister and her husband as tenants in common An owner granted a life estate to another but retained a future interest, which was a Reversionary interest -The interest reverts back to the owners K, who had a life estate for the life of L, leased the property to M for five years. What would happen if K were to die. K's heirs would be entitled to K's interest -the life estate is based on L's life A person other than the grantor has a future interest in a life estate. That interest would be a remainder interest -a third-party future interest is a remainder interest. An interest that reverted to the grantor would be a reversionary interest A life estate was lost by merger. Merger occurred when the remainder interest holder purchased the life tenant's interest. -The life interest and remainder interest are merged into a single interest The statutory right of a widow in the estate of her deceased husband is a dower right -in some states, a wife is entitled to a percentage of her husband's real property and/or a life estate in the husband's home upon the husbands death J had to pay a stock transfer fee when he sold his unit. What type of development was it? Cooperative - each owner owns stock in a corporation and has the right to occupy a unity under a propriety lease. unlike condo ownership, co-op taxes and mortgage payments are generally made by the corporation, not by the individual owners. A leased far is sold. The growing crops belong to the tenant. -Growing crops are emblements Which of the following rights is considered personal property? Tenant Rights Tenants rights are chattels real (other rights are real property) Owning property as tenants in common permits each owner to own unequal shares - Tenant-in-common interests need not be equal A swimming pool in a condo development would be regarded as a common element - common areas for all owners L,M, and N are joint tenants. N sells his interest to O, the M dies. Which statement is true: a. Ms heirs, O, and L are joint tenants b. M's heirs and L are joint tenants, but O is a tenant in common c. L's, O's, and M's heirs are all tenants in common d. L and O are tenants in common L and O are tenants in common -When N sold to O, N broke the joint tenancy as to his or her interest, and O had a one-third interest. When M died, L took the share by survivorship. L has a two-thirds interest and O has a one-third interest. What is a partition action?