Psi Ch 3

Front 1

1. The term situs, or place where something is situated, refers to

1. uniqueness.
2. area preference.
3. immobility.
4. scarcity.

Back 1

1. (2) Situs is used interchangeably with area preference. (18)

Front 2

2. Which of the following is a physical characteristic of land?

1. Indestructibility
2. Scarcity
3. Permanence of investment
4. Situs

Back 2

2. (1) Scarcity, permanence of investment, and situs are economic characteristics of land. (18)

Front 3

3. The owner of a life estate in property

1. does not pay real estate taxes.
2. is entitled to possession of the property.
3. may not receive income from the property.
4. is not responsible for all repairs to the property.

Back 3

3. (2) The life estate owner is responsible for paying real estate taxes and is entitled to all income and profits as well as being responsible for all repairs on the property. (22)

Front 4

4. Three individuals own a motel as tenants in common. One of the individuals decides to sell all of her assets. She may legally

1. sell, because a tenant in common may sell her portion of assets if a majority of the co-owners also agree to sell.
2. not sell, because a tenant in common's interests always remain encumbered.
3. sell, because a tenant in common has an undivided interest in real property that is transferable.
4. not sell, because there is a right of survivorship.

Back 4

4. (3) Tenants in common have the right to sell their interest in a property without the consent of the other co-owners. (23)

Front 5

5. Which of the following statements is FALSE?

1. Fixtures that are purchased, paid for, and installed after the execution of a mortgage are subject to liens of the mortgage.
2. When a landowner tears down a fence, with the intention that it be permanently removed, and piles the material on the land, such material is real property.
3. Generally, trade fixtures that were installed by the tenant are personal property.
4. A hot-water heater installed on the property becomes a fixture.

Back 5

5. (2) The fence material has been severed from the real estate and returned to personal property status. This is called severance. (18)

Front 6

6. Specific liens would NOT include which of the following?

1. Mortgage liens
2. Judgments
3. Real estate taxes
4. Mechanic's liens

Back 6

6. (2) Judgments are general liens; mortgage liens, real estate taxes, and mechanic's liens are specific liens. (20)

Front 7

7. A farmer purchased land with no access to a street or public way. After an unsuccessful attempt to gain access through negotiation he was able to gain access through an

1. easement appurtenant.
2. easement in gross.
3. easement by necessity.
4. easement by prescription.

Back 7

7. (3) An easement by necessity is acquired when the property is landlocked. An easement appurtenant requires two parcels, a dominant and a servient tenement. An easement in gross involves one parcel. Buried utility lines are examples of easements in gross found on a single parcel. (20)

Front 8

8. A woman built a fence that extended beyond the boundary of her property onto her neighbor's property. This is an example of

1. laches.
2. an easement by necessity.
3. an encroachment.
4. an appurtenant easement.

Back 8

8. (3) Laches refers to the inability to enforce a right because of undue delay in asserting it. Easements are rights to use the land of others. An encroachment is the unauthorized use or intrusion onto the property of another. (21)

Front 9

9. A grandmother owned a life estate measured by her own life in residence. She leased the property for five years using a standard lease contract. Shortly thereafter, she died. The lease was

1. valid only as long as she was alive.
2. valid for five years.
3. invalid because she, as an owner of a life estate, cannot lease property.
4. valid for up to one year after her death.

Back 9

9. (1) A life estate may be leased, but that interest is forfeited upon the death of the life tenant or the person whose life is the measurement. (22)

Front 10

10. An electrician did some rewiring in a home for which he has not yet been paid. One month after the work was completed, the electrician drove by the home to discover a For Sale sign on the property. The electrician should

1. file a mechanic's lien.
2. offer to purchase the house.
3. obtain injunctive relief.
4. sue the listing broker.

Back 10

10. (1) The electrician cannot prevent the property from being sold; however, he can file a mechanic's lien to protect himself from not being paid. (20)

Front 11

11. A tenant failed to remove her trade fixtures prior to the expiration of her lease, which
resulted in the landlord acquiring title to the trade fixtures. Acquiring property in this way is known as

1. accession.
2. novation.
3. laches.
4. partition.

Back 11

11. (1) Novation involves a transfer of liability from one debtor to another. Partition is a court procedure to divide co-tenants' interests in real property when parties do not agree to terminate. (18)

Front 12

12. Included among the legal requirements of taking title to real property as tenants in common is that

1. ownership interest must be equal.
2. each co-owner's interest may be conveyed separately.
3. a co-owner cannot will his interest in a property.
4. the last survivor owns the property in severalty.

Back 12

12. (2) The other answers are legal requirements of joint tenancy. (23)

Front 13

13. A homeowner employed a contractor to build a swimming pool on his property. Upon completion of the swimming pool, the contractor filed a lien to receive payment of the contract fee. Such filing could be considered any of the following EXCEPT

1. a specific lien.
2. an encumbrance.
3. a general lien.
4. a mechanic's lien.

Back 13

13. (3) A mechanic's lien is a specific lien and an encumbrance. A general lien would apply to all of the homeowner's property. (20)

Front 14

14. A family buys a 40-year-old house, and the broker tells them the garage was built 30 years ago. Because the buildings are located on a "postage-stamp-sized" lot, the family hires a surveyor who tells them the garage extends six inches onto the neighbor's lot. Because the husband has taken a real estate course, he realizes that this might be a prescriptive easement and through court proceedings could become

1. a dominant easement.
2. a license.
3. a servient easement.
4. adverse possession.

Back 14

14. (4) A prescriptive easement is similar to adverse possession in that if one uses another's property for a statutory period of time, one may acquire a real property interest. The difference is that a prescriptive easement gives one the right to use, while through adverse possession the courts can grant ownership of the land that has been adversely occupied. (20-21)

Front 15

15. A man has an unrecorded claim affecting the title to another man's property. The owner has been trying to sell the property, and the man with the claim is concerned about the possibility of it selling before a judgment of some kind is obtained. To protect himself, the man with the claim should

1. file a lis pendens, which means litigation pending.
2. publish a notice in the newspaper.
3. bring a quick summary proceeding.
4. notify the owner that any attempt to sell the property will be considered fraud.

Back 15

15. (1) The claimant cannot prevent the property owner from selling his property. A lis pendens will provide public notice that a lawsuit affecting title to the property has been filed in court. (20)

Front 16

16. X and Y own adjoining parcels of real estate. X has granted Y an easement over his property for ingress and egress. If Y decided to sell his land to Z, which of the following would be true?

1. The status of the dominant and servient tenements will not change.
2. The easement will be terminated, for Y no longer is the owner of the property.
3. X may sell the easement to the new owner.
4. To be valid, the deed of conveyance of Y to Z must specifically mention the easement.

Back 16

16. (1) An appurtenant easement has been created and is considered a real property interest. Once created, the status of the dominant and the servient tenement remain the same. The easement runs with the land and therefore is not considered separate from the property. As a result Z acquires the easement. (20)

Front 17

17. Legal seizure of property to be held for payment of money pending the outcome of a suit to enforce collection is

1. a lis pendens.
2. an attachment.
3. a writ of execution.
4. an abstract of judgment.

Back 17

17. (2) Lis pendens was described above. A writ of execution is a court order directing the county sheriff to seize and sell the property of a debtor. An abstract of judgment is a summary of judgments that have become public record. (24)

Front 18

18. Two individuals bought a building and took title as joint tenants. One of the owners died testate. The remaining owner now owns the building

1. as a joint tenant with rights of survivorship.
2. in severally.
3. in absolute ownership under the law of descent.
4. subject to the terms of the deceased owner's will.

Back 18

18. (2) The remaining owner automatically takes title to the property under the right of survivorship. The joint tenancy is effective only until one owner remains; the surviving owner then holds title in severally. (22)

Front 19

19. A husband and wife own property as tenants by the entireties. The husband dies and his will names their son as inheritor of the property. Which of the following statements is correct?

1. The son and his mother own the property as tenants in common.
2. The son owns the property in severalty.
3. The son and his mother own the property as joint tenants.
4. The son has no interest in the property.

Back 19

19. (4) Tenancy by the entirety is characterized by the right of survivorship. The husband has no right to transfer his interest by will. The wife will hold an interest in severalty. (23)

Front 20

20. Two brothers may take title to income property in unequal shares under which of the following?

1. Severally
2. Tenants by the entirety
3. Joint tenants
4. Tenants in common

Back 20

20. (4) Severally refers to one owner while tenancy by the entirety requires the owners to be husband and wife. Joint tenancy requires equal shares of ownership. (24)

Front 21

21. A contractor builds an addition to a house for a contract price of $52,000 and records his mechanic's lien notice. Before making any payment, the owner has the house jacked up and put on a platform prior to moving it to another location. The contractor should

1. have his attorney prepare and record a covenant.
2. file an encroachment notice.
3. record an attachment.
4. have his attorney prepare and record a notice of lis pendens.

Back 21

21. (3) An attachment places an encumbrance (lien) upon debtor's property held as security for a possible judgment obtained by an attaching creditor. (24)

Front 22

22. Legal descriptions may NOT be based on

1. the government survey.
2. metes and bounds.
3. a street address.
4. a survey.

Back 22

22. (3) A street address does not tell a surveyor how large the property is or where it begins and ends and, therefore, is not acceptable as a legal description. (19)

Front 23

23. A land description that begins at a specific point and proceeds around the boundaries of a parcel by reference to linear measurements and directions is based on

1. metes and bounds.
2. the rectangular survey.
3. a subdivision plat.
4. a survey.

Back 23

23. (1) Metes and bounds is an accepted method of legal description. (19)

Front 24

24. In the government survey system

1. base lines run east and west.
2. principal meridians run east and west.
3. base lines run north and south.
4. a township contains 26 sections.

Back 24

24. (1) Principal meridians run north and south, while a township contains 36 sections. (19)

Front 25

25. A section contains

1. 43,560 square feet.
2. 640 acres (more or less).
3. 160 square rods.
4. 320 square rods.

Back 25

25. (2) A section is one mile square and contains 640 acres (more or less). The reason for the "more or less" is that every 24 miles from the original base line and 24 miles from the principal meridian are correction lines and guide meridians. On either side of these lines the acres are either more or less. An acre contains 43,560 square feet. (19)

Front 26

26. You and your sister own a house. Your sister would like to sell her interest in the house to her cousin. You and your sister own the house under which of the following?

1. Tenancy by the entirety
2. Tenancy at will
3. Tenancy in common
4. Estate for years

Back 26

26. (3) Tenants by the entirety must be husband and wife. Tenancy at will and estate for years are types of leases. (23)

Front 27

27. A plumber sells his home, in which he has installed washerless faucets. After the contract has been executed, he decides to replace the faucets with standard faucets. Which of the following is true?

1. The plumber may remove the faucets at any time.
2. Standard faucets are a good replacement.
3. The plumber can be held liable for removing the faucets because they are fixtures that were in place before the contract was signed.
4. This question should be decided by the broker who took the listing.

Back 27

27. (3) Unless otherwise agreed, the faucets are considered fixtures that would be included in the selling price. (18)

Front 28

28. Which of the following forms of ownership may only be held by a wife and husband?

1. Tenancy in common
2. Tenancy by the entirety
3. Tenancy at will
4. Joint tenancy

Back 28

28. (2) Tenants in common and joint tenants do not have to be related. A tenancy at will is not a form of ownership. (23)

Front 29

29. R sold his house; it included a water softener, which he had bought the previous year. R's water softener would be classified as

1. chattel.
2. personalty.
3. a trade fixture.
4. a fixture.

Back 29

29. (4) The water softener is a fixture or real property. The other answers are personal property. (18)

Front 30

30. You bought a property that measured 1/2 mile by 1/2 mile. How many acres did you purchase?

1. 17.78 acres
2. 36 acres
3. 92.83 acres
4. 160 acres

Back 30

30. (4) 2 x 2 = 4 640 acres / 4 = 160 acres (19)

Front 31

31. You are traveling directly from Section 6 to Section 36 of the same township. You are traveling

1. northeast.
2. southwest.
3. northwest.
4. southeast.

Back 31

31. (4) Section 6 is in the upper left hand comer and section 36 is in the lower right hand comer. (19)

Front 32

32. B holds a life estate in a house measured against his life. 5's life estate is

1. an estate of inheritance.
2. an example of a future interest.
3. limited in duration to the life estate owner's life.
4. a non-freehold estate.

Back 32

32. (3) A life estate is a freehold estate that terminates upon the death of the owner of the life estate. (22)

Front 33

33. A man and woman own their house as tenants by the entirety. Which of the following statements would NOT correctly describe the status of their ownership?

1. Each owner has the right of survivorship.
2. The owners must be husband and wife.
3. Either owner may convey a one-half interest in the house to a third party.
4. Title may be conveyed only by a deed signed by both parties.

Back 33

33. (3) Tenants by the entirety may not convey their property unless they both agree and sign the deed.(23)

Front 34

34. The county zoo holds title to its land with the condition that if it charges admission fees, the title will revert to the original grantor of the estate. This is an example of a

1. fee-simple estate.
2. defeasible fee estate.
3. legal life estate.
4. conventional life estate.

Back 34

34. (2) A defeasible fee estate may be terminated upon the violation of a condition found in the deed. (21)

Front 35

35. An owner purchased a lot two blocks away from other homes that were built around a lake. The owner's deed cited an easement across another lakeside lot to gain entry onto the lake. What type of easement describes this situation?

1. Easement by necessity
2. Easement in gross
3. Contiguous easement appurtenance
4. Noncontiguous easement appurtenance

Back 35

35. (4) The two lots don't touch; therefore, they are noncontiguous, and because the easement involves two parcels, it is an easement appurtenant. An easement in gross involves only one parcel of land. (20)

Front 36

36. A farmer purchased a parcel of agricultural land described as the N 1/2 of the SW 1/4 and the S 1/2 of the NW 1/4. How many acres are in this legal description?

1. 10 acres
2. 80 acres
3. 160 acres
4. 320 acres

Back 36

36. (3) The solution requires an understanding of the word and. And means "addition." In this problem we have two legal descriptions that need to be added together: N 1/2 of the SW 1/4 AND S 1/2 of the NW 1/4. To find the solution, multiply the denominators and divide the results into 640 (total number of acres in a section). 2 x 4 = 8; 640 / 8 = 80; AND 2 x 4 = 8; 640 / 8 = 80. The answer is 80 + 80 = 160. (19)

Front 37

37. Before getting married, a husband bought an apartment building. After he became married, he decided to sell the building. The buyer's attorney required the husband's wife to sign a quitclaim deed. What interest of the wife did the attorney want released?

1. Inchoate dower
2. Common law
3. Antenuptial
4. Community property

Back 37

37. (1) When the husband sold the property, the wife had an inchoate dower interest. By signing the quitclaim deed. she relinquished her future dower interest. If the husband precedes his wife in death, then her inchoate interest would be removed and replaced with her actual dower rights. The attorney didn't want the wife to be able to come back in the future and claim any dower rights. (22)