FIN 340 FINAL EXAM QUESTIONS AND
ANSWERS
___refers to physical land and building, while ___ consists of the benefits
gainedfrom owning land an buildings - Answer- Real estate, real property
An item that was at one time personal property but has become attached and is now
considered to be real property is known as a - Answer- Fixture
The most crucial test used to determine whether an item is a fixture is the - Answer-
Intent of the parties
____ Estate refers to ownership rights, while the term ___ refers to rights to use or
possess but not own property for a period of time - Answer- Freehold, Leasehold
The seller of a property is typically known as the - Answer- Grantor
The fullest and most complete estate in land is the - Answer- Fee Simple Absolute
An unlimited interest in land is a collection of rights - Answer- To use, possess,
and transfer real estate
The future interest that is held by the grantor at the termination of a life estate, which
he or she has granted someone else is - Answer- Reversion
Alex, Bob, and Chuck each own a one-third interest in a tenancy in common. Bob
has an immediate heir, Deborah. Bob dies. Provided that there are no extraordinary
circumstances, who owns Bob's interest in the real estate after his death? - Answer-
Deborah
Andrea, Barbara, and Carol own a one-third interest in a joint tenancy. Barbara has
an immediate heir, Danny. Barbara meets an untimely end. Provided that there are
no extraordinary circumstances, who owns Barbara's interest in the real estate? -
Answer- Andrea and Carol
Which of the following would not be accepted as a proper legal description of a
property? - Answer- Proper Street Address
Restrictions and limitations on real estate imposed by both private and public entities
are collectively known as - Answer- Encumbrances
, A claim on a property as security for a debt or other obligation is known as - Answer-
Lien
Legal right to use the property owned by someone else in a specified manner is
known as - Answer- Easement
Utility companies that have rights to place electric lines, phone lines, cable TV, gas
lines, etc, hold - Answer- Easements in gross
When someone other than the owners uses the property openly, hostilely, and
continuously, for a statutory time period, an easement may be created by a method
known as - Answer- Prescription
Suppose Jane buys a property subject to an easement that gives the next-door
neighbor the legal right to the driveway across a portion of the property, which of the
following statements are consistent with the nature of easements? - Answer- Jane
could purchase the neighboring property as a means of eliminating the easement
Jones has an easement for an access road across Smith's property, ___ has the
servient estate; ___ has the dominant estate - Answer- Smith, Jones
The owner of the property being encroached upon has the right to force the removal
of the encroachment, but if that owners fail to force removal, the other party may
claim the legal right to continue encroaching by - Answer- Adverse possession
Suppose you are considering to buy an existing home in a fully developed
neighborhood and discover the next-door neighbor privacy fence is actually located
on the property you are considering buying in this situation, which of the following
terms best describes the fence? - Answer- Encroachment
Governmental powers over private property rights include - Answer- Power of
escheat, power of taxation, and police power
Valuation of a property for tax purposes is generally based on - Answer- Market
Value
To determine the tax bill on an individual property - Answer- Multiply the assessed
value by the tax rate
The comprehensive general plan - Answer- Identifies future public development
needs
What term is used for a continuing use that was legal - Answer- Nonconforming
use
ANSWERS
___refers to physical land and building, while ___ consists of the benefits
gainedfrom owning land an buildings - Answer- Real estate, real property
An item that was at one time personal property but has become attached and is now
considered to be real property is known as a - Answer- Fixture
The most crucial test used to determine whether an item is a fixture is the - Answer-
Intent of the parties
____ Estate refers to ownership rights, while the term ___ refers to rights to use or
possess but not own property for a period of time - Answer- Freehold, Leasehold
The seller of a property is typically known as the - Answer- Grantor
The fullest and most complete estate in land is the - Answer- Fee Simple Absolute
An unlimited interest in land is a collection of rights - Answer- To use, possess,
and transfer real estate
The future interest that is held by the grantor at the termination of a life estate, which
he or she has granted someone else is - Answer- Reversion
Alex, Bob, and Chuck each own a one-third interest in a tenancy in common. Bob
has an immediate heir, Deborah. Bob dies. Provided that there are no extraordinary
circumstances, who owns Bob's interest in the real estate after his death? - Answer-
Deborah
Andrea, Barbara, and Carol own a one-third interest in a joint tenancy. Barbara has
an immediate heir, Danny. Barbara meets an untimely end. Provided that there are
no extraordinary circumstances, who owns Barbara's interest in the real estate? -
Answer- Andrea and Carol
Which of the following would not be accepted as a proper legal description of a
property? - Answer- Proper Street Address
Restrictions and limitations on real estate imposed by both private and public entities
are collectively known as - Answer- Encumbrances
, A claim on a property as security for a debt or other obligation is known as - Answer-
Lien
Legal right to use the property owned by someone else in a specified manner is
known as - Answer- Easement
Utility companies that have rights to place electric lines, phone lines, cable TV, gas
lines, etc, hold - Answer- Easements in gross
When someone other than the owners uses the property openly, hostilely, and
continuously, for a statutory time period, an easement may be created by a method
known as - Answer- Prescription
Suppose Jane buys a property subject to an easement that gives the next-door
neighbor the legal right to the driveway across a portion of the property, which of the
following statements are consistent with the nature of easements? - Answer- Jane
could purchase the neighboring property as a means of eliminating the easement
Jones has an easement for an access road across Smith's property, ___ has the
servient estate; ___ has the dominant estate - Answer- Smith, Jones
The owner of the property being encroached upon has the right to force the removal
of the encroachment, but if that owners fail to force removal, the other party may
claim the legal right to continue encroaching by - Answer- Adverse possession
Suppose you are considering to buy an existing home in a fully developed
neighborhood and discover the next-door neighbor privacy fence is actually located
on the property you are considering buying in this situation, which of the following
terms best describes the fence? - Answer- Encroachment
Governmental powers over private property rights include - Answer- Power of
escheat, power of taxation, and police power
Valuation of a property for tax purposes is generally based on - Answer- Market
Value
To determine the tax bill on an individual property - Answer- Multiply the assessed
value by the tax rate
The comprehensive general plan - Answer- Identifies future public development
needs
What term is used for a continuing use that was legal - Answer- Nonconforming
use
