PROPERTY LAW EXAM QUESTIONS
WITH VERIFIED ANSWERS
Dissolving a tenancy in common: what is the default method to partition? - Answer-
Partition in kind. The burden is on the party wanting a partition by sale to prove that
that method is more fair.
Peter and Paul own a 100-acre farm as tenants in common, with Peter owning a
20% interest and Paul owning an 80% interest in the property. One morning in early
April, Peter arrives at the farm to find that Paul has installed a locked gate at the
entrance to the farm. Peter approaches the gate and asks Paul to open the gate.
Paul tells Peter that he has decided that he will use the farm for the summer and that
he will give Paul a key to unlock the gate sometime in the fall. Peter insisted on
entering the farm, but Paul refused to let Peter on the property. There is an old
farmhouse on the property but it otherwise consists of corn and soybean fields.
Which of the following events is most likely to occur as a consequence of Paul's
actions? (Click here for multiple choice options.)
a. The tenancy in common is automatically severed because Paul has destroyed the
unity of title.
b. Peter's and Paul's interests will be pa - Answer-c. Peter's and Paul's interests will
be partitioned in kind, because partition in kind is favored, especially when the
property and extent of the parties' ownership interests make it easy for the court
divide the property proportionally.
True or false: Marital interests in property depend very much on state law. - Answer-
True. Most states in the US have separate property property systems known has
common law systems but some states have community property systems (also
known as civil or continental law systems).
Marital interests: in a common law system how is property brought into the marriage
addressed? - Answer-Each partner in marriage owns what they brought into the
marriage.
Marital interests: in a common law system how is property earned or received during
marriage handled at DIVORCE? - Answer-Earnings during marriage and property
acquired with such earnings become marital property and divided equitably between
spouses.
Marital interests: in a common law system how is property earned or received during
marriage handled at DEATH? - Answer-There is no marital property at death. Each
spouse may dispose of their property as they see fit. In most states a spouse can
take a "spousal elective share" (1/3-1/2 of total estate) in lieu of what was received
from the spouse's estate. If there is no will, property will be divided according to state
laws of intestacy.
,Marital interests: in a community property law system how is property brought into
the marriage addressed? - Answer-Each partner in marriage owns what they brought
into the marriage.
Marital interests: in a community property law system how is property earned or
received during marriage handled at DIVORCE? - Answer-Property is divided evenly
between the spouses. Each partner has an equal and undivided interest in all
earnings and property acquired with earnings during marriage - the property is
owned by neither spouse but rather by the "community" of the marriage. NOTE: does
not apply to inherited property.
Marital interests: in a community property law system how is property earned or
received during marriage handled at DEATH? - Answer-Property is divided evenly
between the spouses. Each partner has an equal and undivided interest in all
earnings and property acquired with earnings during marriage - the property is
owned by neither spouse but rather by the "community" of the marriage. NOTE: does
not apply to inherited property.
Sandra and Jerry married in 2005. In 2006, Jerry inherited a coin collection then
worth $15,000. During their marriage, Sandra has earned $400,000 and Jerry has
earned $300,000. In 2014, the couple decide to create wills. Assume that they have
always lived and worked only in Minnesota (a common law state), that none of the
property ever mixed, and that all of the property and earnings are still in their
possession in 2014. Which of the following is true?
A. Their marital property is worth $715,000.
B. Their marital property is worth at least $700,000 but we can't know its exact
current value from the facts given.
C. None of their assets are marital property.
D. None of their assets are marital property, except what they earned during
marriage. - Answer-C. None of their assets are marital property. In a common law
state, at death, there is no marital property (only at divorce).
Sandra and Jerry married in 2005. In 2006, Jerry inherited a coin collection then
worth $15,000. During their marriage, Sandra has earned $400,000 and Jerry has
earned $300,000. In 2014, the couple decide to create wills. Assume that they have
always lived and worked only in Minnesota (a common law state), that none of the
property ever mixed, and that all of the property and earnings are still in their
possession in 2014. Shortly after creating their wills, Jerry died. Assuming that
Jerry's will validly disposes of all of his property, which of the following is NOT true?
A.Sandra could receive a portion of the property in Jerry's estate according to the
terms of Josh's will or by choosing to take her spousal elective share.
B.Sandra could receive a portion of the property in Jerry's estate according to the
terms of Jerry's will and by choosing to take her spousal elective share.
C.Sandra will not receive a portion o - Answer-B. Sandra could receive a portion of
the property in Jerry's estate according to the terms of Jerry's will and by choosing to
take her spousal elective share.
Sandra could only do one or the other (answer A).
C. This is true because the laws of intestacy will only apply if there is no will. Jerry
left a will so Sandra won't get anything under the laws of intestacy.
,D. This is true because it is a common law state so each partner retains their
property at death.
Monica and Steve got married in 2008. At the time they married, Monica owned
$75,000 worth of property and Steve owned $20,000 worth of property. During their
marriage, Monica earned $250,000 and her father left her property worth $200,000 in
his will. Steve earned $120,000 during the marriage. Assume that none of the
property ever mixed, and that all of the property and earnings are still in their
possession when Monica dies in 2010.
If Monica and Steve lived in a community property state throughout their marriage,
including at the time of Monica's death, which of the following is NOT true?
A. After Monica's death, Steve will own at least $205,000 worth of property.
B. After Monica's death, Steve will own at least $20,000 worth of property plus half of
the $370,000 of community property.
C. After Monica's death Steve could own $20,000 worth of property, plus half of the
$370,000 of community property, plus a portio - Answer-D. After Monica's death
Steve will own at least $20,000 worth of property plus half of his elective share of the
$370,000 of community property.
There are no elective shares in a community property system.
What are the two kinds of present possessory estates? - Answer-1. Freehold and 2.
Leasehold.
What are the three basic types of freehold estates? - Answer-1. Fee tail (mostly
obsolete), 2. Fee simple, 3. Life estate.
Which freehold estates are followed by future intersests? - Answer-Fee simple
defeasible and life estate.
What is the most common type of freehold estate? - Answer-Fee simple.
What are the two forms of fee simple estates? - Answer-1. Fee simple absolute, and
2. Fee simple defeasible.
What is the most complete form of ownership available? - Answer-Fee simple
absolute.
What makes fee simple absolute the most complete form of ownership? Name 3
things. - Answer-1. Survives death (can be transferred according to owner's wishes),
2. Not subject to conditions subsequent (nothing would make owner lose rights
involuntarily), and 3. Not followed by any future interests.
How may an owner lose ownership rights if they hold property in a fee simple
determinable? - Answer-Current holder will lose ownership rights to the grantor
automatically if a specified condition occurs.
How may an owner lose ownership rights if they hold property in a fee simple subject
to condition subsequent? - Answer-Current holder may lose ownership rights to the
grantor if a specified condition occurs, at the discretion of the grantor.
, What are the two basic varieties of defeasible fees? - Answer-1. Those under which,
if a specified condition occurs, the property returns to the grantor. and 2. Those
under which, if a specified condition occurs, the property goes to someone other
than the grantor and current possessor.
Defeasible fees - What are the two types of property interest under which, if a
specified condition occurs, the property returns to the grantor? - Answer-1. Fee
simple determinable and 2. Fee simple subject to condition subsequent.
Defeasible fees - What is called when a specified condition occurs, and property
goes to someone other than the grantor and current possessor? - Answer-Executory
limitation.
What is it called when a property holder is subject to a defeasible fee and if the
condition is satisfied, the interest holder will lose all of her interes? - Answer-Subject
to divestment by the executory interest.
What is it called when a property holder is subject to a defeasible fee and if the
condition is satisfied, and the holder must share the property with other interest
holders? - Answer-Her interest is subject to open by an executory interest.
What is a life estate? - Answer-Property given for the duration of an individual's
lifetime. A possessory estate followed by a future interest.
What kind of future interest in a life estate is not specified or to the grantor? -
Answer-Reverter future interest.
What kind future interest in a life estate does not return the estate to the grantor? -
Answer-Remainder future interest.
What are the two types of remainder interests? - Answer-1. Contingent, and 2.
Vested.
What is a contingent remainder future interest? - Answer-One in which we cannot
identify the future interest holder or one in which there are conditions that must be
satisfied before the remainder-person's interest becomes a PPE, other than the
natural expiration of the previous estate.
What is a vested remainder future interest? - Answer-One in which we can identify
the future interest holder and there are no other conditions other than the life estate.
Can vested interests be defeasible? - Answer-Yes.
What is called when there are no conditions which would cause the vested future
interest holder to lose their vested remainder? - Answer-Indefeasibly vested.
What kind of future interest is it when there are conditions which would cause the
vested future interest holder to lose their vested remainder? - Answer-Defeasibly
vested.
WITH VERIFIED ANSWERS
Dissolving a tenancy in common: what is the default method to partition? - Answer-
Partition in kind. The burden is on the party wanting a partition by sale to prove that
that method is more fair.
Peter and Paul own a 100-acre farm as tenants in common, with Peter owning a
20% interest and Paul owning an 80% interest in the property. One morning in early
April, Peter arrives at the farm to find that Paul has installed a locked gate at the
entrance to the farm. Peter approaches the gate and asks Paul to open the gate.
Paul tells Peter that he has decided that he will use the farm for the summer and that
he will give Paul a key to unlock the gate sometime in the fall. Peter insisted on
entering the farm, but Paul refused to let Peter on the property. There is an old
farmhouse on the property but it otherwise consists of corn and soybean fields.
Which of the following events is most likely to occur as a consequence of Paul's
actions? (Click here for multiple choice options.)
a. The tenancy in common is automatically severed because Paul has destroyed the
unity of title.
b. Peter's and Paul's interests will be pa - Answer-c. Peter's and Paul's interests will
be partitioned in kind, because partition in kind is favored, especially when the
property and extent of the parties' ownership interests make it easy for the court
divide the property proportionally.
True or false: Marital interests in property depend very much on state law. - Answer-
True. Most states in the US have separate property property systems known has
common law systems but some states have community property systems (also
known as civil or continental law systems).
Marital interests: in a common law system how is property brought into the marriage
addressed? - Answer-Each partner in marriage owns what they brought into the
marriage.
Marital interests: in a common law system how is property earned or received during
marriage handled at DIVORCE? - Answer-Earnings during marriage and property
acquired with such earnings become marital property and divided equitably between
spouses.
Marital interests: in a common law system how is property earned or received during
marriage handled at DEATH? - Answer-There is no marital property at death. Each
spouse may dispose of their property as they see fit. In most states a spouse can
take a "spousal elective share" (1/3-1/2 of total estate) in lieu of what was received
from the spouse's estate. If there is no will, property will be divided according to state
laws of intestacy.
,Marital interests: in a community property law system how is property brought into
the marriage addressed? - Answer-Each partner in marriage owns what they brought
into the marriage.
Marital interests: in a community property law system how is property earned or
received during marriage handled at DIVORCE? - Answer-Property is divided evenly
between the spouses. Each partner has an equal and undivided interest in all
earnings and property acquired with earnings during marriage - the property is
owned by neither spouse but rather by the "community" of the marriage. NOTE: does
not apply to inherited property.
Marital interests: in a community property law system how is property earned or
received during marriage handled at DEATH? - Answer-Property is divided evenly
between the spouses. Each partner has an equal and undivided interest in all
earnings and property acquired with earnings during marriage - the property is
owned by neither spouse but rather by the "community" of the marriage. NOTE: does
not apply to inherited property.
Sandra and Jerry married in 2005. In 2006, Jerry inherited a coin collection then
worth $15,000. During their marriage, Sandra has earned $400,000 and Jerry has
earned $300,000. In 2014, the couple decide to create wills. Assume that they have
always lived and worked only in Minnesota (a common law state), that none of the
property ever mixed, and that all of the property and earnings are still in their
possession in 2014. Which of the following is true?
A. Their marital property is worth $715,000.
B. Their marital property is worth at least $700,000 but we can't know its exact
current value from the facts given.
C. None of their assets are marital property.
D. None of their assets are marital property, except what they earned during
marriage. - Answer-C. None of their assets are marital property. In a common law
state, at death, there is no marital property (only at divorce).
Sandra and Jerry married in 2005. In 2006, Jerry inherited a coin collection then
worth $15,000. During their marriage, Sandra has earned $400,000 and Jerry has
earned $300,000. In 2014, the couple decide to create wills. Assume that they have
always lived and worked only in Minnesota (a common law state), that none of the
property ever mixed, and that all of the property and earnings are still in their
possession in 2014. Shortly after creating their wills, Jerry died. Assuming that
Jerry's will validly disposes of all of his property, which of the following is NOT true?
A.Sandra could receive a portion of the property in Jerry's estate according to the
terms of Josh's will or by choosing to take her spousal elective share.
B.Sandra could receive a portion of the property in Jerry's estate according to the
terms of Jerry's will and by choosing to take her spousal elective share.
C.Sandra will not receive a portion o - Answer-B. Sandra could receive a portion of
the property in Jerry's estate according to the terms of Jerry's will and by choosing to
take her spousal elective share.
Sandra could only do one or the other (answer A).
C. This is true because the laws of intestacy will only apply if there is no will. Jerry
left a will so Sandra won't get anything under the laws of intestacy.
,D. This is true because it is a common law state so each partner retains their
property at death.
Monica and Steve got married in 2008. At the time they married, Monica owned
$75,000 worth of property and Steve owned $20,000 worth of property. During their
marriage, Monica earned $250,000 and her father left her property worth $200,000 in
his will. Steve earned $120,000 during the marriage. Assume that none of the
property ever mixed, and that all of the property and earnings are still in their
possession when Monica dies in 2010.
If Monica and Steve lived in a community property state throughout their marriage,
including at the time of Monica's death, which of the following is NOT true?
A. After Monica's death, Steve will own at least $205,000 worth of property.
B. After Monica's death, Steve will own at least $20,000 worth of property plus half of
the $370,000 of community property.
C. After Monica's death Steve could own $20,000 worth of property, plus half of the
$370,000 of community property, plus a portio - Answer-D. After Monica's death
Steve will own at least $20,000 worth of property plus half of his elective share of the
$370,000 of community property.
There are no elective shares in a community property system.
What are the two kinds of present possessory estates? - Answer-1. Freehold and 2.
Leasehold.
What are the three basic types of freehold estates? - Answer-1. Fee tail (mostly
obsolete), 2. Fee simple, 3. Life estate.
Which freehold estates are followed by future intersests? - Answer-Fee simple
defeasible and life estate.
What is the most common type of freehold estate? - Answer-Fee simple.
What are the two forms of fee simple estates? - Answer-1. Fee simple absolute, and
2. Fee simple defeasible.
What is the most complete form of ownership available? - Answer-Fee simple
absolute.
What makes fee simple absolute the most complete form of ownership? Name 3
things. - Answer-1. Survives death (can be transferred according to owner's wishes),
2. Not subject to conditions subsequent (nothing would make owner lose rights
involuntarily), and 3. Not followed by any future interests.
How may an owner lose ownership rights if they hold property in a fee simple
determinable? - Answer-Current holder will lose ownership rights to the grantor
automatically if a specified condition occurs.
How may an owner lose ownership rights if they hold property in a fee simple subject
to condition subsequent? - Answer-Current holder may lose ownership rights to the
grantor if a specified condition occurs, at the discretion of the grantor.
, What are the two basic varieties of defeasible fees? - Answer-1. Those under which,
if a specified condition occurs, the property returns to the grantor. and 2. Those
under which, if a specified condition occurs, the property goes to someone other
than the grantor and current possessor.
Defeasible fees - What are the two types of property interest under which, if a
specified condition occurs, the property returns to the grantor? - Answer-1. Fee
simple determinable and 2. Fee simple subject to condition subsequent.
Defeasible fees - What is called when a specified condition occurs, and property
goes to someone other than the grantor and current possessor? - Answer-Executory
limitation.
What is it called when a property holder is subject to a defeasible fee and if the
condition is satisfied, the interest holder will lose all of her interes? - Answer-Subject
to divestment by the executory interest.
What is it called when a property holder is subject to a defeasible fee and if the
condition is satisfied, and the holder must share the property with other interest
holders? - Answer-Her interest is subject to open by an executory interest.
What is a life estate? - Answer-Property given for the duration of an individual's
lifetime. A possessory estate followed by a future interest.
What kind of future interest in a life estate is not specified or to the grantor? -
Answer-Reverter future interest.
What kind future interest in a life estate does not return the estate to the grantor? -
Answer-Remainder future interest.
What are the two types of remainder interests? - Answer-1. Contingent, and 2.
Vested.
What is a contingent remainder future interest? - Answer-One in which we cannot
identify the future interest holder or one in which there are conditions that must be
satisfied before the remainder-person's interest becomes a PPE, other than the
natural expiration of the previous estate.
What is a vested remainder future interest? - Answer-One in which we can identify
the future interest holder and there are no other conditions other than the life estate.
Can vested interests be defeasible? - Answer-Yes.
What is called when there are no conditions which would cause the vested future
interest holder to lose their vested remainder? - Answer-Indefeasibly vested.
What kind of future interest is it when there are conditions which would cause the
vested future interest holder to lose their vested remainder? - Answer-Defeasibly
vested.
