AEB EXAM 3 WITH COMPLETE SOLUTIONS 100% VERIFIED
What four perspectives does the notion of property best be seen from? - ANSWER
Economic
Personal
Environmental
Societal
If property is to exist we need to have?? - ANSWER Land, people who own that land
and the government protecting those rights to property we own
Property is perhaps best defined as.? - ANSWER A bundle of private and public rights,
where each of those different types of rights may separately be applied
What are some examples of public rights? - ANSWER Eminent domain, right to tax,
right to forfeiture, escheat (property reverts to state)
How can you distinguish between real and personal property? - ANSWER Real
property is incapable of being moved; it includes land and whatever is erected or
growing on the land.
ex. buildings and machinery attached to the land
Personal property is all property that is not real estate; property is generally moveable.
ex. Money, stocks, livestock, and crops severed from the land
When does an agricultural product like oranges become personal property?? -
ANSWER Once the oranges are severed from the tree and boxed, they are no longer
real property, as they are no longer attached to the land
,Class example: two men who almost attached their butcher machinery to the floor of a
rented building. They would have lost title to their machines at the expiration of the
lease, since the machines would have become real property.
A distinction point in deciding real vs personal property is fructus naturales and fructus
industriales. Define what makes them different? - ANSWER Fructus Naturales: only
produced by forces of nature
ex. would be crops such as trees, bushes, or grass. Part of land until severed (real
estate/real property)
Fructus Industriales: produced by the labor of the farmer or rancher
ex. Crops resulting from an annual planting such as corn, wheat, and vegetables. They
are NOT considered part of the property (real estate)
Ownership of land began in the 9th century with the feudal era, wherein each nobleman
was required to?? - ANSWER Either the payment of duties or providing men for armies
to the next level on the pyramid.
Some examples of terms from this era that still exist today: property, fee, estate,
interest, and right.
What are estates? - ANSWER Ownership of land is called an estate.
ownership rights are measured by a specific period of time
NOTE: distinguished from non-possessory rights such as an easement (right of way)
- get easement pro scripted or recorded, then it cannot be developed on
What are the two types of estates in land? - ANSWER 1. leasehold estates: lasts for a
definite period of time (ex. ordinary lease)
2. freehold estates: lasts for an indefinite or unpredictable length of time
,- are further divided into fee estates and life estates
What is the major distinction between fee estates and life estates? - ANSWER FEE
estates are inheritable
. a LIFE estate cannot be transferred at the time of death
What is a fee simple absolute? - ANSWER Greatest ownership interest in land. Can do
what you want subject to those rights reserved by the State.
POINT: outright property ownership
What two parts can a fee simple absolute be divided into? - ANSWER Fee simple
conditional: If the grantee fails to meet the grantor's interest, the grantor can go to court
to get full access of their property back.
Fee simple determinable: automatically reverts back to the grantor if the condition is not
met; no need to go to court.
POINT: with both of these, the grantor retains the interest in the land, and the grantee
gets title to it. However, upon the happening of a certain event, title to the land revests
back in the grantor. In other words, if they don't do what they are supposed to do, they
get cut off.
What is an ordinary life estate? - ANSWER Life estates are not inheritable,
- life estate pur autra vie (in the life of another )
ex: suppose the life tenant (B) transfers his interest to another (D).
Because (B) cannot transfer greater ownership than he has, (D) now has a life estate
which will last as long as (B) lives
, What are the stipulations for a life tenant of a Life estate? - ANSWER A life tenant must
not unreasonably "waste" the assets
you must manage the land in a reasonable and prudent manner
ex. clear cutting and selling all the timber
For concurrent ownership, what are the three types of co-ownership? - ANSWER
Tenancy by entireties
Joint tenancy
Tenancy in common
For tenancy by entireties, who are the only two owners? - ANSWER Husband and wife
-both having an undivided interest in the property; this means that in simple terms, both
parties become one legal entity
-there is a right of survivorship when one of the spouses dies. It is a shift from A to B; it is
then that the property will be subject to government taxation upon the death of both
partners.
What is a right of survivorship? - ANSWER One person dies, the other in property
ownership gets the assets.
What is joint tenancy? - ANSWER Husband and wife may hold property as joint owners
- children can be co-owners
***Key aspect of survivorship: on the death of one, the entire state goes to survivors
- Owners, whether two or more, hold undivided EQUAL shares
ex. ABC are all joint tenants, A dies, now B and C have equal
What four perspectives does the notion of property best be seen from? - ANSWER
Economic
Personal
Environmental
Societal
If property is to exist we need to have?? - ANSWER Land, people who own that land
and the government protecting those rights to property we own
Property is perhaps best defined as.? - ANSWER A bundle of private and public rights,
where each of those different types of rights may separately be applied
What are some examples of public rights? - ANSWER Eminent domain, right to tax,
right to forfeiture, escheat (property reverts to state)
How can you distinguish between real and personal property? - ANSWER Real
property is incapable of being moved; it includes land and whatever is erected or
growing on the land.
ex. buildings and machinery attached to the land
Personal property is all property that is not real estate; property is generally moveable.
ex. Money, stocks, livestock, and crops severed from the land
When does an agricultural product like oranges become personal property?? -
ANSWER Once the oranges are severed from the tree and boxed, they are no longer
real property, as they are no longer attached to the land
,Class example: two men who almost attached their butcher machinery to the floor of a
rented building. They would have lost title to their machines at the expiration of the
lease, since the machines would have become real property.
A distinction point in deciding real vs personal property is fructus naturales and fructus
industriales. Define what makes them different? - ANSWER Fructus Naturales: only
produced by forces of nature
ex. would be crops such as trees, bushes, or grass. Part of land until severed (real
estate/real property)
Fructus Industriales: produced by the labor of the farmer or rancher
ex. Crops resulting from an annual planting such as corn, wheat, and vegetables. They
are NOT considered part of the property (real estate)
Ownership of land began in the 9th century with the feudal era, wherein each nobleman
was required to?? - ANSWER Either the payment of duties or providing men for armies
to the next level on the pyramid.
Some examples of terms from this era that still exist today: property, fee, estate,
interest, and right.
What are estates? - ANSWER Ownership of land is called an estate.
ownership rights are measured by a specific period of time
NOTE: distinguished from non-possessory rights such as an easement (right of way)
- get easement pro scripted or recorded, then it cannot be developed on
What are the two types of estates in land? - ANSWER 1. leasehold estates: lasts for a
definite period of time (ex. ordinary lease)
2. freehold estates: lasts for an indefinite or unpredictable length of time
,- are further divided into fee estates and life estates
What is the major distinction between fee estates and life estates? - ANSWER FEE
estates are inheritable
. a LIFE estate cannot be transferred at the time of death
What is a fee simple absolute? - ANSWER Greatest ownership interest in land. Can do
what you want subject to those rights reserved by the State.
POINT: outright property ownership
What two parts can a fee simple absolute be divided into? - ANSWER Fee simple
conditional: If the grantee fails to meet the grantor's interest, the grantor can go to court
to get full access of their property back.
Fee simple determinable: automatically reverts back to the grantor if the condition is not
met; no need to go to court.
POINT: with both of these, the grantor retains the interest in the land, and the grantee
gets title to it. However, upon the happening of a certain event, title to the land revests
back in the grantor. In other words, if they don't do what they are supposed to do, they
get cut off.
What is an ordinary life estate? - ANSWER Life estates are not inheritable,
- life estate pur autra vie (in the life of another )
ex: suppose the life tenant (B) transfers his interest to another (D).
Because (B) cannot transfer greater ownership than he has, (D) now has a life estate
which will last as long as (B) lives
, What are the stipulations for a life tenant of a Life estate? - ANSWER A life tenant must
not unreasonably "waste" the assets
you must manage the land in a reasonable and prudent manner
ex. clear cutting and selling all the timber
For concurrent ownership, what are the three types of co-ownership? - ANSWER
Tenancy by entireties
Joint tenancy
Tenancy in common
For tenancy by entireties, who are the only two owners? - ANSWER Husband and wife
-both having an undivided interest in the property; this means that in simple terms, both
parties become one legal entity
-there is a right of survivorship when one of the spouses dies. It is a shift from A to B; it is
then that the property will be subject to government taxation upon the death of both
partners.
What is a right of survivorship? - ANSWER One person dies, the other in property
ownership gets the assets.
What is joint tenancy? - ANSWER Husband and wife may hold property as joint owners
- children can be co-owners
***Key aspect of survivorship: on the death of one, the entire state goes to survivors
- Owners, whether two or more, hold undivided EQUAL shares
ex. ABC are all joint tenants, A dies, now B and C have equal
