BUL 3320 EXAM 2 PART 2 QUESTIONS
AND ANSWERS
Ben may sell subsurface rights while retaining ownership of his surface land. - Correct
Answers -True
Owners in a joint tenancy with the right of survivorship cannot transfer their interest
during their lifetime. - Correct Answers -False
If the court awards a partition to co-tenants, the court will normally attempt a partition by
kind. If partition by kind is impossible, because there is no fair way to divide the
property, the court will order the real estate sold, and the proceeds equally divided. -
Correct Answers -True
Liz grants property "to AA so long as no alcohol is ever consumed on the premises; if
so, then to Maria and her heirs." AA has a fee simple defeasible. - Correct Answers -
True
Neuman transferred his lakefront property to a rock band by warranty deed. A few
weeks later, the Cherry sisters, three fun-filled senior citizens, purchased a neighboring
cabin and spent time there entertaining friends and family, sometimes all night long. The
band members found it hard to get any rest. Neuman has breached the covenant of
quiet enjoyment, and the band members can recover damages for the breach. - Correct
Answers -False
Wearever Builders constructs new houses in the Oak Grove subdivision. Unless it
expressly gives a warranty to buyers, Wearever does not guarantee the adequacy of
materials and good workmanship in its new houses. - Correct Answers -False
Darlene conveys her beachfront property to Dan as a life estate, and upon Dan's death,
the property will revert to Darlene or her heirs. Darlene's future interest in the beachfront
property is called a remainder. - Correct Answers -False
,Juan has the right to walk (or drive) across his neighbor's property to reach the highway.
Juan's right is referred to an easement appurtenant which runs with the land. - Correct
Answers -True
Sal has a neighbor, Fred, who works on old cars as a hobby on week nights and
weekends sometimes until 2:00 a.m. or 3:00 a.m., revving up the engine. The noise
generally wakes up the entire neighborhood. Because Fred owns his own property in
fee simple absolute, there is nothing the neighborhood can do to stop Fred from this
nightly torture. - Correct Answers -False
Carlos conveys his property "to Noah for life, then to Maxie." Noah has a life estate and
Maxie has a remainder interest. - Correct Answers -True
Tim is buying a farm. A general warranty deed is the best type of deed for Tim. - Correct
Answers -True
Camellia sold her hobby farm to Brenda. Camellia is the grantor and Brenda is the
grantee. - Correct Answers -True
All Appliances, Inc. installed a built-in dishwasher in Greta's house and Greta intends
that it remain with the house. The dishwasher is a fixture. - Correct Answers -True
Jessica conveyed 20 acres of land to Stearns County for as long as the land is used as
a park. Stearns County has a fee simple absolute. - Correct Answers -False
If you grant a nonpossessory interest to Eagle Logging to enter your land and remove
timber from ten acres, you have granted Eagle a profit. - Correct Answers -True
Nancy is a life tenant on a 78-acre farm. The person who owns the future interest in the
farm is entitled to enter upon the farm to make sure Nancy is not damaging the
property. - Correct Answers -True
Bankruptcy is regulated by federal law. - Correct Answers -True
Brad was having financial difficulties and thought bankruptcy might be in his future. He
transferred his sports car to his brother with the agreement that if he didn't file for
bankruptcy within the next 18 months, his brother would return the car to him. Brad did
file for bankruptcy in ten months. The bankruptcy trustee can bring the car back into
Brad's estate for the purpose of providing assets for Brad's creditors. - Correct Answers
-True
In a Chapter 13 bankruptcy, creditors cannot force a debtor into bankruptcy; nor can
they vote to confirm or reject a plan of reorganization. - Correct Answers -True
Shoe Sunshine, Inc. filed for bankruptcy protection under Chapter 11 and submitted a
plan of reorganization within 120 days after filing for relief. Two of the classes of
,creditors voted against the plan. However, the bankruptcy judge considered the plan to
be reasonable, achievable, and fair, and approved it in spite of these creditors'
objections. This action by the judge is called a "cramdown." - Correct Answers -True
Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer
nor a CPA. - Correct Answers -False
Individual debtors are allowed to keep some assets in a Chapter 7 bankruptcy. - Correct
Answers -True
Alimony and child support obligations are considered priority claims. - Correct Answers -
True
Chapters 11 and 13 are liquidation chapters. - Correct Answers -False
The Bankruptcy Code uses the term "bankrupt" for a person who cannot pay his debts. -
Correct Answers -False
Creditor claims are divided into classes and the highest class must be satisfied in full
before going to the next category. - Correct Answers -True
In Chapter 11 both creditors and debtor can propose plans of reorganization. - Correct
Answers -True
Chapter 7 bankruptcy petitions are always filed voluntarily. They cannot be involuntary. -
Correct Answers -False
Generally, filing bankruptcy stops the collection activity of creditors. - Correct Answers -
True
Peggy's credit card debts are mounting as her costs of insurance and fuel have
dramatically increased and her income, from sporadic free-lance jobs, has dropped.
Chapter 13 of the Bankruptcy Code will allow her to reorganize her debt while she
keeps most of her assets. - Correct Answers -False
Under all chapters of the Bankruptcy Code, most of the debtor's assets are distributed
to creditors and the debtor has no obligation to share future earnings with creditors. -
Correct Answers -False
Francenie purchased a fee simple absolute ownership interest in a unit in a multi-unit
apartment building. She is a tenant in common with other apartment owners as to the
hallways, parking areas, and exterior grounds. Francenie's interest is: - Correct Answers
-Ownership in a condominium
Steve owns his own house in fee simple. The state wishes to build a much-needed new
highway through the center of his house. Steve does not want to give up his home. The
, state will be able to take the land through the use of its condemnation power, also
called: - Correct Answers -Reserved easement.
Grandpa owns a farm. In a signed writing, Grandpa gave Sue the irrevocable right to
use a road on his farm so that Sue could more easily reach her own property. What kind
of interest in land did Grandpa give to Sue? - Correct Answers -Grant easement.
Ollie leased a building in Old Town. Ollie installed a washer and dryer unit and a new
furnace in the basement of the building with new duct work throughout the building.
Upon expiration of the lease, Ollie intends to remove the washer and dryer, but not the
furnace. The washer and dryer can easily be removed without harming anything.
Removal of the furnace, however, will damage the building. Are the washer, dryer, and
furnace fixtures? - Correct Answers -The furnace is a fixture, but the washer and dryer
are not.
The purpose of recording a deed or other real estate transaction is to: - Correct
Answers -put the rest of the world on notice that the transaction occurred between the
grantor and the grantee.
Real property consists of: - Correct Answers -All of the above (buildings, air rights, plant
life)
You go to a theater to see a play one Saturday evening. You have: - Correct Answers -a
license to enter the theater.
Which of the following is a possessory interest in land? - Correct Answers -Fee simple
absolute.
Which of the following types of concurrent ownership does not provide for rights of
survivorship? - Correct Answers -Tenancy in common.
Ross is a wealthy man. Out of the kindness of his heart, he transfers a piece of real
property to his church, "for as long as the property is used for church purposes." Ross
has created which of the following ownership interests? - Correct Answers -Fee simple
defeasible in the church; possibility of reverter to Ross.
Larry, Carl, and Mae own real property equally as tenants in common. Carl transfers his
one-third interest to Skip. Larry and Mae did not consent to this transfer. Larry and Mae
both die before either Carl or Skip. Larry willed his real property to Kari. Mae willed her
real property to Diane. Skip now owns what portion of this real property? - Correct
Answers -Skip owns one-third.
Louie has the right to drive across Bernie's land, which is adjacent to Louie's property,
to reach the ocean front. Louie's right to drive across Bernie's land is called: - Correct
Answers -an easement appurtenant.
AND ANSWERS
Ben may sell subsurface rights while retaining ownership of his surface land. - Correct
Answers -True
Owners in a joint tenancy with the right of survivorship cannot transfer their interest
during their lifetime. - Correct Answers -False
If the court awards a partition to co-tenants, the court will normally attempt a partition by
kind. If partition by kind is impossible, because there is no fair way to divide the
property, the court will order the real estate sold, and the proceeds equally divided. -
Correct Answers -True
Liz grants property "to AA so long as no alcohol is ever consumed on the premises; if
so, then to Maria and her heirs." AA has a fee simple defeasible. - Correct Answers -
True
Neuman transferred his lakefront property to a rock band by warranty deed. A few
weeks later, the Cherry sisters, three fun-filled senior citizens, purchased a neighboring
cabin and spent time there entertaining friends and family, sometimes all night long. The
band members found it hard to get any rest. Neuman has breached the covenant of
quiet enjoyment, and the band members can recover damages for the breach. - Correct
Answers -False
Wearever Builders constructs new houses in the Oak Grove subdivision. Unless it
expressly gives a warranty to buyers, Wearever does not guarantee the adequacy of
materials and good workmanship in its new houses. - Correct Answers -False
Darlene conveys her beachfront property to Dan as a life estate, and upon Dan's death,
the property will revert to Darlene or her heirs. Darlene's future interest in the beachfront
property is called a remainder. - Correct Answers -False
,Juan has the right to walk (or drive) across his neighbor's property to reach the highway.
Juan's right is referred to an easement appurtenant which runs with the land. - Correct
Answers -True
Sal has a neighbor, Fred, who works on old cars as a hobby on week nights and
weekends sometimes until 2:00 a.m. or 3:00 a.m., revving up the engine. The noise
generally wakes up the entire neighborhood. Because Fred owns his own property in
fee simple absolute, there is nothing the neighborhood can do to stop Fred from this
nightly torture. - Correct Answers -False
Carlos conveys his property "to Noah for life, then to Maxie." Noah has a life estate and
Maxie has a remainder interest. - Correct Answers -True
Tim is buying a farm. A general warranty deed is the best type of deed for Tim. - Correct
Answers -True
Camellia sold her hobby farm to Brenda. Camellia is the grantor and Brenda is the
grantee. - Correct Answers -True
All Appliances, Inc. installed a built-in dishwasher in Greta's house and Greta intends
that it remain with the house. The dishwasher is a fixture. - Correct Answers -True
Jessica conveyed 20 acres of land to Stearns County for as long as the land is used as
a park. Stearns County has a fee simple absolute. - Correct Answers -False
If you grant a nonpossessory interest to Eagle Logging to enter your land and remove
timber from ten acres, you have granted Eagle a profit. - Correct Answers -True
Nancy is a life tenant on a 78-acre farm. The person who owns the future interest in the
farm is entitled to enter upon the farm to make sure Nancy is not damaging the
property. - Correct Answers -True
Bankruptcy is regulated by federal law. - Correct Answers -True
Brad was having financial difficulties and thought bankruptcy might be in his future. He
transferred his sports car to his brother with the agreement that if he didn't file for
bankruptcy within the next 18 months, his brother would return the car to him. Brad did
file for bankruptcy in ten months. The bankruptcy trustee can bring the car back into
Brad's estate for the purpose of providing assets for Brad's creditors. - Correct Answers
-True
In a Chapter 13 bankruptcy, creditors cannot force a debtor into bankruptcy; nor can
they vote to confirm or reject a plan of reorganization. - Correct Answers -True
Shoe Sunshine, Inc. filed for bankruptcy protection under Chapter 11 and submitted a
plan of reorganization within 120 days after filing for relief. Two of the classes of
,creditors voted against the plan. However, the bankruptcy judge considered the plan to
be reasonable, achievable, and fair, and approved it in spite of these creditors'
objections. This action by the judge is called a "cramdown." - Correct Answers -True
Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer
nor a CPA. - Correct Answers -False
Individual debtors are allowed to keep some assets in a Chapter 7 bankruptcy. - Correct
Answers -True
Alimony and child support obligations are considered priority claims. - Correct Answers -
True
Chapters 11 and 13 are liquidation chapters. - Correct Answers -False
The Bankruptcy Code uses the term "bankrupt" for a person who cannot pay his debts. -
Correct Answers -False
Creditor claims are divided into classes and the highest class must be satisfied in full
before going to the next category. - Correct Answers -True
In Chapter 11 both creditors and debtor can propose plans of reorganization. - Correct
Answers -True
Chapter 7 bankruptcy petitions are always filed voluntarily. They cannot be involuntary. -
Correct Answers -False
Generally, filing bankruptcy stops the collection activity of creditors. - Correct Answers -
True
Peggy's credit card debts are mounting as her costs of insurance and fuel have
dramatically increased and her income, from sporadic free-lance jobs, has dropped.
Chapter 13 of the Bankruptcy Code will allow her to reorganize her debt while she
keeps most of her assets. - Correct Answers -False
Under all chapters of the Bankruptcy Code, most of the debtor's assets are distributed
to creditors and the debtor has no obligation to share future earnings with creditors. -
Correct Answers -False
Francenie purchased a fee simple absolute ownership interest in a unit in a multi-unit
apartment building. She is a tenant in common with other apartment owners as to the
hallways, parking areas, and exterior grounds. Francenie's interest is: - Correct Answers
-Ownership in a condominium
Steve owns his own house in fee simple. The state wishes to build a much-needed new
highway through the center of his house. Steve does not want to give up his home. The
, state will be able to take the land through the use of its condemnation power, also
called: - Correct Answers -Reserved easement.
Grandpa owns a farm. In a signed writing, Grandpa gave Sue the irrevocable right to
use a road on his farm so that Sue could more easily reach her own property. What kind
of interest in land did Grandpa give to Sue? - Correct Answers -Grant easement.
Ollie leased a building in Old Town. Ollie installed a washer and dryer unit and a new
furnace in the basement of the building with new duct work throughout the building.
Upon expiration of the lease, Ollie intends to remove the washer and dryer, but not the
furnace. The washer and dryer can easily be removed without harming anything.
Removal of the furnace, however, will damage the building. Are the washer, dryer, and
furnace fixtures? - Correct Answers -The furnace is a fixture, but the washer and dryer
are not.
The purpose of recording a deed or other real estate transaction is to: - Correct
Answers -put the rest of the world on notice that the transaction occurred between the
grantor and the grantee.
Real property consists of: - Correct Answers -All of the above (buildings, air rights, plant
life)
You go to a theater to see a play one Saturday evening. You have: - Correct Answers -a
license to enter the theater.
Which of the following is a possessory interest in land? - Correct Answers -Fee simple
absolute.
Which of the following types of concurrent ownership does not provide for rights of
survivorship? - Correct Answers -Tenancy in common.
Ross is a wealthy man. Out of the kindness of his heart, he transfers a piece of real
property to his church, "for as long as the property is used for church purposes." Ross
has created which of the following ownership interests? - Correct Answers -Fee simple
defeasible in the church; possibility of reverter to Ross.
Larry, Carl, and Mae own real property equally as tenants in common. Carl transfers his
one-third interest to Skip. Larry and Mae did not consent to this transfer. Larry and Mae
both die before either Carl or Skip. Larry willed his real property to Kari. Mae willed her
real property to Diane. Skip now owns what portion of this real property? - Correct
Answers -Skip owns one-third.
Louie has the right to drive across Bernie's land, which is adjacent to Louie's property,
to reach the ocean front. Louie's right to drive across Bernie's land is called: - Correct
Answers -an easement appurtenant.
