Real Estate U
Chapter 3 Exam
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Real property - Answer: is the land and improvements, and all legal rights, powers, and privileges of real
estate ownership. Real property includes the bundle of rights.
Everything that is not real property is - Answer: property, personalty
Personal property is also known as? - Answer: chattel
A few typical examples of a fixture include? - Answer: chandelier- custom book shelves- wall-to-wall
carpeting- plumbing fixtures
Trade Fixtures - Answer: Trade fixtures are items of personal property that a business operator installs
in rented building space.
Trade fixtures are - Answer: An item of personal property attached to the land or building leased by a
tenant who uses the item in a trade or business.
Ownership in Severalty - Answer: Think of it as a single individual owns real estate, therefore, the
ownership is 'severed' from all others.
Joint Tenancy - Answer: Joint tenancy is a form of co-ownership by two or more persons, each of whom
has an undivided interest WITH the "right of survivorship".
Tenancy in common: - Answer: Tenancy is common is a form of co-ownership by two or more persons,
each of whom has an undivided interest, WITHOUT the "right of survivorship".
Tenancy by the entirety: - Answer: This form of co-ownership is limited to married couples.
4 Unities of Co-ownership - Answer: 1) Time2) Title3) Interest4) Possession
Life Estates - Answer: A life estate is ownership, possession, and control of a property for someone's
lifetime.
, Life estate example - Answer: Joe will grant ownership of his property to Sarah until the death of
Nancy.Once Nancy passes away, the ownership of the property will revert back to Joe (or Joe's heirs).
Fee Simple - Answer: Fee simple absolute provides the most complete form of ownership.Absolute
ownership of real property; a person has this type of estate where the person is entitled to the entire
property with unconditional power of disposition during the person's life and descending to the person's
heirs or distributees.
Most properties in New York have a Fee Simple Absolute deed, unless specified otherwise!
Leasehold Estates - Answer: A leasehold estate is a non-freehold of limited duration, providing the right
of possession and control but not title.
Leasehold Estates (Estate for years) - Answer: An estate for years exists for a fixed period of time. It can
be as short as a day and as long as many years. Once the term of the lease ends, the rental agreement is
automatically terminated.Most residential leases are an estate for years.
Leasehold Estates (Periodic Estate) - Answer: A periodic lease automatically renews itself for another
period at the end of each period unless one party gives notice to the other party at a time specified in
the lease before the lease ends.
Leasehold Estates (Estate at Will) - Answer: The duration of an estate at will is for an unknown period of
time. This is an open-ended estate.
Littoral Rights - Answer: rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake or ocean
Riparian Rights - Answer: An owner's rights in land that borders on or includes a stream, river, or lake.
These rights include access to and use of the water.
Supply and Demand When demand (the number of buyers in the market) is greater than supply (the
amount of available homes to purchase), - Answer: Prices will increase
When supply is greater than demand - Answer: Prices will decrees
Chapter 3 Exam
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Real property - Answer: is the land and improvements, and all legal rights, powers, and privileges of real
estate ownership. Real property includes the bundle of rights.
Everything that is not real property is - Answer: property, personalty
Personal property is also known as? - Answer: chattel
A few typical examples of a fixture include? - Answer: chandelier- custom book shelves- wall-to-wall
carpeting- plumbing fixtures
Trade Fixtures - Answer: Trade fixtures are items of personal property that a business operator installs
in rented building space.
Trade fixtures are - Answer: An item of personal property attached to the land or building leased by a
tenant who uses the item in a trade or business.
Ownership in Severalty - Answer: Think of it as a single individual owns real estate, therefore, the
ownership is 'severed' from all others.
Joint Tenancy - Answer: Joint tenancy is a form of co-ownership by two or more persons, each of whom
has an undivided interest WITH the "right of survivorship".
Tenancy in common: - Answer: Tenancy is common is a form of co-ownership by two or more persons,
each of whom has an undivided interest, WITHOUT the "right of survivorship".
Tenancy by the entirety: - Answer: This form of co-ownership is limited to married couples.
4 Unities of Co-ownership - Answer: 1) Time2) Title3) Interest4) Possession
Life Estates - Answer: A life estate is ownership, possession, and control of a property for someone's
lifetime.
, Life estate example - Answer: Joe will grant ownership of his property to Sarah until the death of
Nancy.Once Nancy passes away, the ownership of the property will revert back to Joe (or Joe's heirs).
Fee Simple - Answer: Fee simple absolute provides the most complete form of ownership.Absolute
ownership of real property; a person has this type of estate where the person is entitled to the entire
property with unconditional power of disposition during the person's life and descending to the person's
heirs or distributees.
Most properties in New York have a Fee Simple Absolute deed, unless specified otherwise!
Leasehold Estates - Answer: A leasehold estate is a non-freehold of limited duration, providing the right
of possession and control but not title.
Leasehold Estates (Estate for years) - Answer: An estate for years exists for a fixed period of time. It can
be as short as a day and as long as many years. Once the term of the lease ends, the rental agreement is
automatically terminated.Most residential leases are an estate for years.
Leasehold Estates (Periodic Estate) - Answer: A periodic lease automatically renews itself for another
period at the end of each period unless one party gives notice to the other party at a time specified in
the lease before the lease ends.
Leasehold Estates (Estate at Will) - Answer: The duration of an estate at will is for an unknown period of
time. This is an open-ended estate.
Littoral Rights - Answer: rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake or ocean
Riparian Rights - Answer: An owner's rights in land that borders on or includes a stream, river, or lake.
These rights include access to and use of the water.
Supply and Demand When demand (the number of buyers in the market) is greater than supply (the
amount of available homes to purchase), - Answer: Prices will increase
When supply is greater than demand - Answer: Prices will decrees
