LEGAL ASPECTS OF REAL ESTATE
Spring 2014 Homework #1 Michael S. Botello
Please answer on a Scantron Form 882.
1. Reliance on previous decisions is best described as
a. transactional law c. stare decisis
b. equity d. civil law
2. Laws governing ownership rights to land are set forth in
a. state statutes c. local ordinances
b. federal statutes d. the English common law
3. Funding a Trust, requires the transfer of title of the real property to the Trust. A deed from husband and wife conveying title to their trust should read:
a. to H & W as grantors c. to H & W Revocable Trust
b. to H& W as community property d. to H & W trustees of H & W Trust
4. Most real estate disputes are adjudicated in
a. federal courts c. superior courts
b. municipal courts d. the supreme court
5. The Fourth Amendment of the U. S. Constitution does not protect the owner of real property from unreasonable search and seizure.
a. True b. False
6. Equitable remedies include all of the following except
a. monetary damages c. reformation
b. rescission d. specific performance
7. A computer system was housed in a building designed for that use. The components, which were of great weight and size, were interconnected by hundreds of cables. The floor was raised to accommodate these cables. Airconditioning and humidity controls were installed for the system’s efficiency. For the purpose of taxation, the computer system is a fixture.
a. True b. False
8. The county assessor assessed the plaintiff’s leasehold interests in the Queen Mary as real property. The plaintiff claimed that it was attached to a floating vessel, so the interests were personal property. Considering the manner in which the vessel is attached to its pier and its adaptability, the Queen Mary is personal property.
a. True b. False
9. A man was prohibited from distributing religious tracts in the parking lot of a shopping center. His First Amendment constitutional rights were violated.
a. True b. False
10. A city ordinance prohibited homeowners from displaying signs on their property except resident identification, for sale and warning signs. The city refused to permit a homeowner to place a sign on her front lawn opposing the Persian Gulf War. This restriction on signs is constitutional.
a. True b. False
11. A man purchased a tenant in common’s interest in an island-type property used for waterfowl hunting. He wanted the entire parcel, but the other tenant in common refused to sell. He brought a partition action and asked that the property be sold. The court will order a sale.
a. True b. False
12. A husband, whose wife was in a mental hospital, acquired an interest as a joint tenant in real property with a woman with whom he was living. He used community property for his contribution, and she used her separate property. Upon the husband’s death, the other woman claimed the real property by right of survivorship. Is she correct?
a. Yes b. No
13. A husband signed a contract to sell community property. The buyer was aware of the existence of the wife, who refused to perform. The buyer will obtain specific performance of the contract.
a. True b. False
14. A wife quitclaimed her interest in a community property residence to her husband for value while separated. During subsequent reconciliations she lived in the house with her husband, and community funds were used to pay the mortgage. In a subsequent marriage dissolution, the wife claimed to have a community property interest in the residence. Is she correct?
a. Yes b. No
15. A wife used $40,000 of her separate property to extinguish a $53,000 debt against community property. (The debtor agreed to settle for $40,000.) The wife will receive her $40,000 back upon the marriage dissolution without interest.
a. True b. False
16. Which of the following ownership forms is matched with an incorrect characteristic?
a. Joint tenancy/undivided interest c. Community property/equal ownership
b. Tenancy in common/survivorship d. severalty/alone
17. To convey your property to a son and daughter on a one-third/two-thirds basis, you would want to convey title as
a. community property c. tenancy in common
b. tenancy in severalty d. joint tenancy
18. Agnes and Alfred, who were recently married, want to purchase a house together. They each want their interest to pass to their individual children from previous marriages in the event of death. They should buy the house
a. in partnership c. as tenants in common
b. in severalty d. joint tenancy
19. A single tenant in common may not
a. sell her interest without approval of the other tenants in common
b. will her interest to her children
c. use the property without compensating the other tenants in common
d. give exclusive possession to another
20. Which of the following accurately describes a tenancy in common?
a. Interests must be equal
b. There is an equal right of possession
c. Interests must be acquired at the same time
d. Interests must be acquired from the same documents.
21. Albert, Baker, Charlie and David are joint tenants. What form of ownership exists when David sells to Edith and Albert then dies?
a. Baker, Charlie and Edith are tenants in common
b. Baker and Charlie are joint tenants, and Edith is a tenant in common
c. Albert’s heirs, Baker, Charlie and Edith are tenants in common
d. None of the above
22. Thomas and Andrew own property in joint tenancy. Thomas put a $50,000 mortgage on his interest. A short time later Thomas died. Who owns the property and how?
a. Andrew owns the property clear of the mortgage
b. Andrew owns the property with a mortgage against it
c. Because the mortgage destroyed the joint tenancy, Andrew and the heirs of Thomas own the property as tenants in common
d. Andrew and the mortgagee own the property as tenants in common
23. Which of the following is an example of a partition action?
a. Dividing an apartment building into condominiums
b. Any land subdivision
c. A court proceeding to divide jointly owned property
d. Breaking large apartments into smaller units
24. After Albert and Helen were married, they purchased a home. The $60,000 down payment was the separate property of Helen. Payments on the home were made with community property funds. Upon marriage dissolution, what are the rights of the parties to the sale proceeds from the house?
a. Albert and Helen share the proceeds equally
b. Albert gets one-half of the payments made, but Helen gets the remainder
c. Helen is entitled to $60,000 plus one-half of the balance of the sale proceeds (if any)
d. None of the above.
25. Without the consent of the other spouse, one spouse can
a. buy real estate using community property funds
b. sell community property
c. give community property away
d. lease community property for 18 months
26. According to community property rules, one spouse alone may
a. sell his or her community property interest
b. encumber his or her community property interest
c. will his or her community property interest
d. None of the above
27. The law of real property in general is governed by the law of the state in which the real property is located.
a. True b. False
28. A fixture is classified as personal property.
a. True b. False
29. A life estate may be for the life of a person other than the owner.
a. True b. False
30. A life estate is transferable during the lifetime of the owner.
a. True b. False
31. Inheritance is the transfer of ownership of real property when a person dies with a will.
a. True b. False
32. An owner of real property usually owns all the minerals beneath the surface of the land.
a. True b. False
33. Time Share Ownership is an elaborate form of tenancy in common.
a. True b. False
34. An owner cannot separate ownership of the airspace from ownership of the surface of the land.
a. True b. False
35. A joint tenancy with the right of survivorship can be created by a deed or a will.
a. True b. False
36. A survivorship feature of a joint tenancy with the right of survivorship can never be terminated by the parties.
a. True b. False
37. It is mandatory that tenants in common have equal shares.
a. True b. False
38. An owner of a tenancy in common can sell or mortgage his or her interest in the common property without the other common owners’ consent.
a. True b. False
39. The judgment debts of a single common owner will bind his or her interest in the property and will cloud title to the common property.
a. True b. False
40. A common owner can waive his or her right to partition.
a. True b. False
41. Property owned by a spouse before marriage in a community property state is separate property.
a. True b. False
42. Jim and Tom are general partners. Jim dies, leaving all of his property to his wife, Lois. What is the result?
a. Lois and Tom are general partners
b. Lois has an interest in the partnership assets but not in the business
c. Lois becomes a limited partner
d. Lois has no interest in the business or the assets of the business
43. A partnership that has not complied with the fictitious name statute
a. would be a limited partnership
b. cannot sue in the partnership name
c. is an unincorporated association
d. All of the above
44. Two separate corporations could hold title together as
a. tenants in severalty c. community property
b. joint tenants d. a partnership
45. When a property is given to two or more parties as life tenants, the relationship between the life tenants is that of joint tenants.
a. True b. False
46. One joint tenant used a property for 22 years and paid the taxes and maintained the property. In a quiet title action he claimed title to the entire property by adverse possession. He will prevail in his claim.
a. True b. False
47. An unmarried couple lived together for six years. Upon the end of the relationship the woman claimed rights in the man’s assets. The woman is entitled to one-half of all the man’s assets with or without an agreement between the parties.
a. True b. False
48. The seller of a condominium property must provide the purchaser with
a. a copy of the restrictions
b. the association bylaws
c. the owners’ association financial statement showing delinquent assessments
d. All of the above
49. Taxes on the individual condominium units are common expenses paid by the condominium association.
a. True b. False
50. A condominium association can foreclose and sell an owner’s condominium unit if the owner fails to pay common area assessments.
a. True b. False
1