WASHINGTON REAL ESTATE ROCKWELL CH.2
QUIZZES
A fee simple title in real estate is of indefinite duration, and can be:
A. freely transferred
B. encumbered
C. inherited
D. all of the above - Answers -D. All of the above
A fee simple owner has the full bundle of rights.
A conveyance of title with the condition that the land shall not be used for the sale of
intoxicating beverages creates a:
A. less-than-freehold estate
B. defeasible fee
C. life estate
D. reservation - Answers -B. Defeasible fee
A defeasible fee (or qualified fee) is an estate that will fail if a certain event occurs.
Lewis was given real property for the term of his natural life. Which of the following
statements is incorrect?
A. Lewis has a freehold estate
B. Lewis has a fee simple estate
C. Lewis is the life tenant
D. If Lewis leases the property to someone else, the lease will terminate if Lewis dies
during its term - Answers -B. Lewis has a fee simple estate
Although a life estate is a freehold estate, it is not a fee simple estate.
A, B, and C own property as joint tenants. C dies and B sells her interest in the property
to D. The property is now owned:
A. as joint tenants by A, D, and C's widow E, his sole hair
B. by A and D as joint tenants
C. by A and D as tenants in common
D. none of the above - Answers -C. by A and D as tenants in common
When C dies, his interest in the property goes to the other joint tenants, A and B. When
B sells her interest to D, the joint tenancy is terminated and a tenancy in common is
created between A and D.
Asher and Blake own real property together. Asher has one-third interest and Blake has
a two-thirds interest. How do they hold title?
A. community property
B. tenancy at will
C. joint tenancy
D. tenancy in common - Answers -D. tenancy in common
, Because their interests in the property are unequal, Asher and Blake must be tenants in
common.
All of the following statements about a corporation are true, except:
A. a corporation has a potentially perpetual existence
B. each shareholder is individually liable for the corporation's acts
C. corporations are subject to double taxation
D. a corporation can enter into contracts in essentially the same way as an individual
person - Answers -B. each shareholder is individually liable for the corporation's acts
A corporation's shareholders have limited liability for the corporation's actions.
A real estate investment trust is required to:
A. invest at least 75% of its assets in real estate
B. have at least 150 participating investors
C. make sure all investors accept liability for the trust's acts
D. be incorporated in the state in which it does business - Answers -A. invest at least
75% of its assets in real estate
A real estate investment trust must invest at least 75% of its assets in real estate. The
minimum number of investors is 100, not 150.
In a condominium:
A. individual units are owned in severalty, while common elements are owned in joint
tenancy
B. individual units are owned in joint tenancy, while common elements are owned in
severalty
C. individual units are owned in severalty, while common elements are owned in
tenancy in common
D. the entire building is owned in tenancy in common, with residents owning shares. -
Answers -C. individual units are owned in severalty, while common elements are
owned in tenancy in common
In a condominium, residents own their individual units in severalty, but own the common
elements as tenants in common.
A unit in a cooperative is owned:
A. in severalty by the resident of the unit
B. by the corporation that owns the building; the residents own shares in the corporation
C. by all residents of the building as tenants in common
D. by all residents of the building as limited partners - Answers -B. by the corporation
that owns the building; the residents own shares in the corporation
A cooperative is owned by a business entity, usually a corporation. Residents purchase
shares in the corporation and receive long-term leases, rather than title to their units.
Which of the following is true regarding an estate in land?
A. a certificate of occupancy must be issued to the estate owner
B. a patent must be issued by the government to the estate owner
C. a valid deed must be delivered to the estate owner
QUIZZES
A fee simple title in real estate is of indefinite duration, and can be:
A. freely transferred
B. encumbered
C. inherited
D. all of the above - Answers -D. All of the above
A fee simple owner has the full bundle of rights.
A conveyance of title with the condition that the land shall not be used for the sale of
intoxicating beverages creates a:
A. less-than-freehold estate
B. defeasible fee
C. life estate
D. reservation - Answers -B. Defeasible fee
A defeasible fee (or qualified fee) is an estate that will fail if a certain event occurs.
Lewis was given real property for the term of his natural life. Which of the following
statements is incorrect?
A. Lewis has a freehold estate
B. Lewis has a fee simple estate
C. Lewis is the life tenant
D. If Lewis leases the property to someone else, the lease will terminate if Lewis dies
during its term - Answers -B. Lewis has a fee simple estate
Although a life estate is a freehold estate, it is not a fee simple estate.
A, B, and C own property as joint tenants. C dies and B sells her interest in the property
to D. The property is now owned:
A. as joint tenants by A, D, and C's widow E, his sole hair
B. by A and D as joint tenants
C. by A and D as tenants in common
D. none of the above - Answers -C. by A and D as tenants in common
When C dies, his interest in the property goes to the other joint tenants, A and B. When
B sells her interest to D, the joint tenancy is terminated and a tenancy in common is
created between A and D.
Asher and Blake own real property together. Asher has one-third interest and Blake has
a two-thirds interest. How do they hold title?
A. community property
B. tenancy at will
C. joint tenancy
D. tenancy in common - Answers -D. tenancy in common
, Because their interests in the property are unequal, Asher and Blake must be tenants in
common.
All of the following statements about a corporation are true, except:
A. a corporation has a potentially perpetual existence
B. each shareholder is individually liable for the corporation's acts
C. corporations are subject to double taxation
D. a corporation can enter into contracts in essentially the same way as an individual
person - Answers -B. each shareholder is individually liable for the corporation's acts
A corporation's shareholders have limited liability for the corporation's actions.
A real estate investment trust is required to:
A. invest at least 75% of its assets in real estate
B. have at least 150 participating investors
C. make sure all investors accept liability for the trust's acts
D. be incorporated in the state in which it does business - Answers -A. invest at least
75% of its assets in real estate
A real estate investment trust must invest at least 75% of its assets in real estate. The
minimum number of investors is 100, not 150.
In a condominium:
A. individual units are owned in severalty, while common elements are owned in joint
tenancy
B. individual units are owned in joint tenancy, while common elements are owned in
severalty
C. individual units are owned in severalty, while common elements are owned in
tenancy in common
D. the entire building is owned in tenancy in common, with residents owning shares. -
Answers -C. individual units are owned in severalty, while common elements are
owned in tenancy in common
In a condominium, residents own their individual units in severalty, but own the common
elements as tenants in common.
A unit in a cooperative is owned:
A. in severalty by the resident of the unit
B. by the corporation that owns the building; the residents own shares in the corporation
C. by all residents of the building as tenants in common
D. by all residents of the building as limited partners - Answers -B. by the corporation
that owns the building; the residents own shares in the corporation
A cooperative is owned by a business entity, usually a corporation. Residents purchase
shares in the corporation and receive long-term leases, rather than title to their units.
Which of the following is true regarding an estate in land?
A. a certificate of occupancy must be issued to the estate owner
B. a patent must be issued by the government to the estate owner
C. a valid deed must be delivered to the estate owner
