BUSINESS LAW TEST QUESTIONS AND ANSWERS
what is property
a thing or things that belong to someone
real property
land and anything attached to it
personal property
movable items such as automobiles
what are some ways you can own and transfer real property
purchase, gift
what is real property
real property comprises land and everything attached to the land.
Unlike most forms of personal property, land is limited, ___________, and no two
pieces of land are the same.
unique
The law relating to real property treats land as extending down to the center of
the earth and includes things that are permanently _________________ to it
(houses, buildings, and trees).
attached
The rights to land include the airspace above the land to an indefinite height
(_____ rights), subject to the rights of land. aircraft in flight that do not pose a
hazard to
air
Land also includes rights to minerals such as oil, coal, or iron ore
(_________________________ rights)
subterranean
Buildings are
structures built on land and can be almost any building permanently placed or
constructed on or beneath the surface of the land.
When personal property is added to land or to buildings in such a way that they
become a part of these, they are known as
fixtures, personal become real and reverse
The courts have generally held that a given item is attached if its removal would
____________________________ ___________________. (ex. Refrigerator v.
Stove/Oven)
hinder the functioning of the structures
Possessory Interests in Land
fee simple
, The owner of a freehold estate who holds it absolutely is said to hold it in fee simple. •
The owner of a freehold estate who holds real property in fee simple can sell it, give it
away, or leave it to his or her heirs.
conditional estates
An estate lasting forever as long as one of more conditions does not occur. If a
condition is breached, the property reverts to the grantor.
Life Estate
A freehold estate in land that is limited in duration to the life of the owner or to the life or
lives of some other designated person or persons.
a life estate is usually created by
deed or by inheritance
Leasehold Estate
An estate that gives the holder (Tenant) a temporary right to possession, without
ownership
Fee Simple Defeasible
A type of ownership of real property that grants the owner all the incidents of a fee
simple absolute except that it may be taken away if a specified condition occurs or does
not occur
Fee Simple
most complete ownership of land possible
non possessory interests: license
the owner of land may grant a party the right to enter the land for specific purpose
non posessory intrests: profit
a right to enter another persons land and remove some portion of the lamd of its natural
resources
Easement
-A right or interest in land granted to a party to make beneficial use of the land owned
by another.
Easement appurtenant -
allows the owns of a parcel of real property access to an adjacent parcel of land for
limited purposes.
Easement in gross -occurs when a person who does not own an adjacent parcel
is granted an easement over a plot of land.
-occurs when a person who does not own an adjacent parcel is granted an easement
over a plot of land.
Co-ownership
Most common type of ownership.
• The decedent's share is passed to their heirs at death.
co ownership: • Each owner has the right:
to sell their interest without the consent of the others,
2) to own an unequal share of the property, and
3) to have a creditor attach their interest.
Joint Tenacy
Joint Tenants are like a tenancy in common except their shares are owned equally.
among the other joint tenants.
• Upon the death of one of the joint tenants, the property is divided equally
what is property
a thing or things that belong to someone
real property
land and anything attached to it
personal property
movable items such as automobiles
what are some ways you can own and transfer real property
purchase, gift
what is real property
real property comprises land and everything attached to the land.
Unlike most forms of personal property, land is limited, ___________, and no two
pieces of land are the same.
unique
The law relating to real property treats land as extending down to the center of
the earth and includes things that are permanently _________________ to it
(houses, buildings, and trees).
attached
The rights to land include the airspace above the land to an indefinite height
(_____ rights), subject to the rights of land. aircraft in flight that do not pose a
hazard to
air
Land also includes rights to minerals such as oil, coal, or iron ore
(_________________________ rights)
subterranean
Buildings are
structures built on land and can be almost any building permanently placed or
constructed on or beneath the surface of the land.
When personal property is added to land or to buildings in such a way that they
become a part of these, they are known as
fixtures, personal become real and reverse
The courts have generally held that a given item is attached if its removal would
____________________________ ___________________. (ex. Refrigerator v.
Stove/Oven)
hinder the functioning of the structures
Possessory Interests in Land
fee simple
, The owner of a freehold estate who holds it absolutely is said to hold it in fee simple. •
The owner of a freehold estate who holds real property in fee simple can sell it, give it
away, or leave it to his or her heirs.
conditional estates
An estate lasting forever as long as one of more conditions does not occur. If a
condition is breached, the property reverts to the grantor.
Life Estate
A freehold estate in land that is limited in duration to the life of the owner or to the life or
lives of some other designated person or persons.
a life estate is usually created by
deed or by inheritance
Leasehold Estate
An estate that gives the holder (Tenant) a temporary right to possession, without
ownership
Fee Simple Defeasible
A type of ownership of real property that grants the owner all the incidents of a fee
simple absolute except that it may be taken away if a specified condition occurs or does
not occur
Fee Simple
most complete ownership of land possible
non possessory interests: license
the owner of land may grant a party the right to enter the land for specific purpose
non posessory intrests: profit
a right to enter another persons land and remove some portion of the lamd of its natural
resources
Easement
-A right or interest in land granted to a party to make beneficial use of the land owned
by another.
Easement appurtenant -
allows the owns of a parcel of real property access to an adjacent parcel of land for
limited purposes.
Easement in gross -occurs when a person who does not own an adjacent parcel
is granted an easement over a plot of land.
-occurs when a person who does not own an adjacent parcel is granted an easement
over a plot of land.
Co-ownership
Most common type of ownership.
• The decedent's share is passed to their heirs at death.
co ownership: • Each owner has the right:
to sell their interest without the consent of the others,
2) to own an unequal share of the property, and
3) to have a creditor attach their interest.
Joint Tenacy
Joint Tenants are like a tenancy in common except their shares are owned equally.
among the other joint tenants.
• Upon the death of one of the joint tenants, the property is divided equally
