©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
AEB Exam 3 Exam Questions And Answers
100% Guaranteed Pass.
What are the four perspectives that property can be seen from? - Answer✔Economic
Personal
Environmental
Societal
In order for property exist we must have?? - Answer✔Land, owners of land, and government
protection of our property rights
Property can best be defined as..? - Answer✔A bundle of private and public rights, where each
right can be applied separately
What are some examples of public rights? - Answer✔Eminent domain, right to tax, right to
forfeiture, escheat (property reverts to state)
How can you differentiate between real and personal property ? - Answer✔Real property is not
capable of being moved; it consists of land and whatever is erected or growing on the land.
ex. buildings and machinery attached to the land
Personal property is all property that is not real estate; property is generally moveable.
ex. Money, stocks, livestock, and crops severed from the land
When does an agricultural product like oranges become personal property?? - Answer✔Once the
oranges are severed from the tree and boxed, they are no longer real property, as they are no
longer attached to the land
Class example: two guys who almost attached their butchery machinery to the ground of a leased
building. They would have lost ownership of their machines upon the end of the lease, as the
machines would have become real property.
A clarification point in determining real vs personal property is fructus naturales and fructus
industriales. Define what makes them different? - Answer✔Fructus Naturales: only produced by
forces of nature
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, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
ex. could be crops such as trees, bushes, or grass. Part of land until severed (real estate/real
property)
Fructus Industriales: produced by the labor of the farmer or rancher
ex. Crops resulting from an annual planting such as corn, wheat, and vegetables. They are NOT
considered part of the property (real estate)
Land ownership originated in the 9th century during the feudal era, each nobleman was subject
to?? - Answer✔Either the payment of duties or providing men for armies to the next level on the
pyramid.
Some examples of terms from this era that still exist today: property, fee, estate, interest, and
right.
What are estates? - Answer✔Ownership of land is called an estate.
- ownership rights are measured by a specific period of time
NOTE: distinguished from non-possessory rights such as an easement (right of way)
- get easement pro scripted or recorded, then it cannot be developed on
What are the two types of estates in land? - Answer✔1. leasehold estates: lasts for a definite
period of time (ex. ordinary lease)
2. freehold estates: lasts for an indefinite or unpredictable length of time
- are further divided into fee estates and life estates
What is the main difference between fee estates and life estates? - Answer✔FEE estates are
inheritable
... a LIFE estate cannot be transferred at the time of death
What is a fee simple absolute? - Answer✔Greatest ownership interest in land. Can do what you
want subject to those rights reserved by the State.
POINT: outright property ownership
What two parts can a fee simple absolute be divided into? - Answer✔Fee simple conditional: If
the grantee fails to meet the grantor's interest, the grantor can go to court to get full access of
their property back.
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, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
Fee simple determinable: automatically reverts back to the grantor if the condition is not met; no
need to go to court.
POINT: with both of these, the grantor keeps the interest in the land, and the grantee receives
title to it. However, if a specific event occurs, the land returns to the grantor. Basically, if they
don't meet conditions, they lose access.
Describe an ordinary life estate? - Answer✔Life estates are not inheritable,
- life estate pur autra vie (in the life of another )
ex: suppose the life tenant (B) transfers his interest to another (D).
Since (B) cannot transfer greater ownership than he has, (D) now has a life estate which will last
as long as (B) lives
What are the stipulations for a life tenant of a Life estate? - Answer✔A life tenant must not
unreasonably "waste" the assets
- you must manage the land in a reasonable and prudent manner
ex. clear cutting and selling all the timber
For concurrent ownership, what are the three types of co-ownership? - Answer✔Tenancy by
entireties
Joint tenancy
Tenancy in common
For tenancy by entireties, who are the only two owners? - Answer✔Husband and wife
- both hold an undivided interest in the property; essentially, both parties become a single legal
entity.
- there is a right of survivorship that comes into being at the death of either spouse. This is a shift
from person A to B; the property will be subject to government taxation after both partners die.
What is a right of survivorship? - Answer✔One person dies, the other in property ownership gets
the assets.
What is joint tenancy ? - Answer✔Husband and wife may hold property as joint owners
- children can be co-owners
3|Page
AEB Exam 3 Exam Questions And Answers
100% Guaranteed Pass.
What are the four perspectives that property can be seen from? - Answer✔Economic
Personal
Environmental
Societal
In order for property exist we must have?? - Answer✔Land, owners of land, and government
protection of our property rights
Property can best be defined as..? - Answer✔A bundle of private and public rights, where each
right can be applied separately
What are some examples of public rights? - Answer✔Eminent domain, right to tax, right to
forfeiture, escheat (property reverts to state)
How can you differentiate between real and personal property ? - Answer✔Real property is not
capable of being moved; it consists of land and whatever is erected or growing on the land.
ex. buildings and machinery attached to the land
Personal property is all property that is not real estate; property is generally moveable.
ex. Money, stocks, livestock, and crops severed from the land
When does an agricultural product like oranges become personal property?? - Answer✔Once the
oranges are severed from the tree and boxed, they are no longer real property, as they are no
longer attached to the land
Class example: two guys who almost attached their butchery machinery to the ground of a leased
building. They would have lost ownership of their machines upon the end of the lease, as the
machines would have become real property.
A clarification point in determining real vs personal property is fructus naturales and fructus
industriales. Define what makes them different? - Answer✔Fructus Naturales: only produced by
forces of nature
1|Page
, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
ex. could be crops such as trees, bushes, or grass. Part of land until severed (real estate/real
property)
Fructus Industriales: produced by the labor of the farmer or rancher
ex. Crops resulting from an annual planting such as corn, wheat, and vegetables. They are NOT
considered part of the property (real estate)
Land ownership originated in the 9th century during the feudal era, each nobleman was subject
to?? - Answer✔Either the payment of duties or providing men for armies to the next level on the
pyramid.
Some examples of terms from this era that still exist today: property, fee, estate, interest, and
right.
What are estates? - Answer✔Ownership of land is called an estate.
- ownership rights are measured by a specific period of time
NOTE: distinguished from non-possessory rights such as an easement (right of way)
- get easement pro scripted or recorded, then it cannot be developed on
What are the two types of estates in land? - Answer✔1. leasehold estates: lasts for a definite
period of time (ex. ordinary lease)
2. freehold estates: lasts for an indefinite or unpredictable length of time
- are further divided into fee estates and life estates
What is the main difference between fee estates and life estates? - Answer✔FEE estates are
inheritable
... a LIFE estate cannot be transferred at the time of death
What is a fee simple absolute? - Answer✔Greatest ownership interest in land. Can do what you
want subject to those rights reserved by the State.
POINT: outright property ownership
What two parts can a fee simple absolute be divided into? - Answer✔Fee simple conditional: If
the grantee fails to meet the grantor's interest, the grantor can go to court to get full access of
their property back.
2|Page
, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
Fee simple determinable: automatically reverts back to the grantor if the condition is not met; no
need to go to court.
POINT: with both of these, the grantor keeps the interest in the land, and the grantee receives
title to it. However, if a specific event occurs, the land returns to the grantor. Basically, if they
don't meet conditions, they lose access.
Describe an ordinary life estate? - Answer✔Life estates are not inheritable,
- life estate pur autra vie (in the life of another )
ex: suppose the life tenant (B) transfers his interest to another (D).
Since (B) cannot transfer greater ownership than he has, (D) now has a life estate which will last
as long as (B) lives
What are the stipulations for a life tenant of a Life estate? - Answer✔A life tenant must not
unreasonably "waste" the assets
- you must manage the land in a reasonable and prudent manner
ex. clear cutting and selling all the timber
For concurrent ownership, what are the three types of co-ownership? - Answer✔Tenancy by
entireties
Joint tenancy
Tenancy in common
For tenancy by entireties, who are the only two owners? - Answer✔Husband and wife
- both hold an undivided interest in the property; essentially, both parties become a single legal
entity.
- there is a right of survivorship that comes into being at the death of either spouse. This is a shift
from person A to B; the property will be subject to government taxation after both partners die.
What is a right of survivorship? - Answer✔One person dies, the other in property ownership gets
the assets.
What is joint tenancy ? - Answer✔Husband and wife may hold property as joint owners
- children can be co-owners
3|Page
