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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
31) Land is sometimes called “real property” because
a. it is really more important than personal property.
b. traditionally, it was the real source of most wealth in England.
c. the owner can recover the land itself, rather than its monetary value, if someone
wrongfully occupies it.
d. as a matter of reality, land was more valuable than anything else to the King of England.
e. it lasts forever and therefore reflects the reality and permanence of the world.
32) The word “intestacy” refers to
a. the “heart” or “guts” of a case.
b. a Latin phrase that means a “test” or “battle.”
c. a situation in which a person died without making a will.
d. the “interests” that a person receives under a will.
e. a situation in which a husband kills his wife.
33) The word “condominium”
a. is derived from Latin words meaning “joint control.”
b. refers to any situation in which a dwelling unit is not directly connected to the land.
c. translates from Latin words meaning “(high) price” and “(small) space.”
d. refers to any situation in which a piece of land is owned by two or more people.
e. is taken from a Latin phrase meaning “little power.”
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
34) As explained in the text, the word “dower” refers to
a. an unmarried woman.
b. the sense of joy one feels upon being married.
c. property that a woman was historically entitled to receive when her husband died.
d. an arranged marriage.
e. joint ownership of a piece of land by a husband and wife.
35) Shortly before he died, Walter drafted a will to make sure that the appropriate people
enjoyed Bearsclaw, the name of his cabin in the mountains. At the time of Walter’s death,
his brother Herman was married to Stella. Stella also owned a cabin in the mountains,
which she let Herman use. As Walter knew, however, Stella intended that after she died,
her cabin would pass to her cousin. Walter’s will therefore said that Bearsclaw would go to
his sister, Maria, until Stella died. When Stella died, Bearsclaw would go to Herman.
Which of the following can be said with respect to Bearsclaw after Walter died?
a. Herman held a reversion.
b. Stella enjoys a life estate.
c. Maria held a remainder.
d. Herman held a remainder.
e. Maria held a reversion.
36) Monique inherited a life estate in a piece of land called Noiracre. After she died, the
land would pass to her brother, Pierre. Monique has largely ignored the property since she
acquired it. The house that is located on Noiracre consequently has become badly run down
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
and in urgent need of repair. Indeed, the only thing that Monique has really done to the land
is cut down an historic growth of oak trees. Which of the following statements is TRUE?
a. Monique committed an act of waste by failing to keep the house in good repair.
b. Monique committed an act of waste by cutting down the oak trees which she was entitled
to do.
c. Pierre holds the reversionary interest in Noiracre.
d. Because Pierre is not yet entitled to occupy the land, he cannot successfully complain
about any act of waste.
e. Monique’s interest is best described as a remainder interest, because it was remained in
the estate of the person from whom she inherited it.
37) Matthew, Mark, Luke, and John are four brothers. They equally share ownership of a
piece of land. Each brother holds an undivided quarter interest. The first three brothers
inherited their interests in the land from their father. John acquired his interest by buying it
from his sister, Mary. Which of the following statements is TRUE?
a. If John dies first, his interest must automatically pass to Matthew, Mark, and Luke.
b. If Mark earns $8000 in profits by selling wheat that was grown on the land, Mark, Luke,
and John are legally entitled to share in that money.
c. Each brother is entitled by law to exclusive possession of one quarter of the entire
property.
d. All four brothers are joint tenants.
e. Matthew may be a joint tenant with respect to Mark, but a co-tenant with respect to John.
38) Winifred and Randolph jointly owned a piece of land. Because they were unable to
agree on how to use that property, they went to court. The judge ordered the land to be sold
and split the profits between the parties. The judge used a process known as
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
a. severance.
b. partition.
c. particularization.
d. foreclosure.
e. de facto division.
39) Belinda and Peter own neighbouring pieces of land. Peter’s property is accessible from
the highway only by driving across Belinda’s land. Peter has acquired a legal right to drive
across Belinda’s land as a result of doing so for many years. Peter therefore benefits from
the legal concept of
a. adverse possession.
b. habitual trespass.
c. prescription.
d. res ipsa loquitur.
e. malum in se.
40) Juan owns a piece of land. Yolanda enjoys a profit à prendre with respect to Juan’s
land. This must mean that
a. Juan has a life estate.
b. Yolanda is allowed to travel across Juan’s land in order to reach a neighbouring property.
c. Juan’s property is part of a condominium.
d. Yolanda is entitled to share in the money that Juan receives after selling his property.
e. Yolanda has a right to take something from Juan’s land.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
41) Sarah has owned a fee simple estate for more than 15 years. She has never sold or
leased it to anyone and lives on the property. She has received a letter in the mail stating
that the government is expropriating her land and asking her to vacate within a specified
time. Sarah is
a. entitled to remain on her land despite the government request.
b. entitled to a minimum compensation of $250 000.
c. required to forfeit her property despite her broad package of rights in a fee simple.
d. forced to leave her land, but may take as long as she sees fit.
e. protected from the government by the charter, so it cannot expropriate her land.
42) Jocelyn shares a joint tenancy with three of her close friends and they all live in the
same house. After being accepted into a school on the other side of the country, she decides
to sell her property rights to a fourth and different friend. In this case, Jocelyn’s fourth
friend will
a. receive the same rights as the other joint tenants, but cannot live in that household.
b. receive all of Jocelyn’s property rights in addition to her own, making her the tenant with
the most rights.
c. receive the same rights as Jocelyn had, including the right of survivorship, essentially
replacing Jocelyn as a joint tenant.
d. not be allowed Jocelyn’s property rights as Jocelyn is unable to sell property rights as a
joint tenant.
e. receive property rights from Jocelyn, but will become a tenant in common to the original
joint tenants.
43) Robert buys a piece of land on Michael’s farm, which is situated in the southwest corner
of the farm, nearly one kilometer from the highway which runs horizontal to the northern
section of the farm. In order for Robert to access the highway, he must travel north across
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
Michael’s farmland. When Michael tells Robert he is trespassing on the farmland, Robert
should argue that
a. by purchasing a part of Michael’s farmland, he is entitled to use whatever part he
chooses.
b. the use of Michael’s farmland in accessing the highway is an implied easement.
c. the use of Michael’s farmland in accessing the highway is an express easement.
d. the owner of the corner lot prior to Robert had signed a restrictive covenant that allows
access via the farmland, meaning Robert should be entitled as well.
e. he should be able to use any part of the farmland as long as he does not damage it.
44) Samuel decides to lease his land to a close friend, Scott, for 6 years after he takes a job
in another city. Given their close friendship, the two decide to skip the paperwork side of
the deal and rely on each other’s word. When Samuel is fired and proceeds to end his lease
with Scott, forcing Scott to leave so Samuel can move back in, Scott decides to take him to
court. A court would most likely decide that
a. Scott is entitled to the land until he can find another estate.
b. the land should be split in order to appease both parties.
c. given the lack of any agreement in writing, Scott is entitled to the land for the remainder
of the lease.
d. Scott is entitled to damages.
e. given the lack of any agreement in writing, Samuel is entitled to the land.
45) Lewis is currently leasing land in the countryside. Since he has found it too difficult to
make use of the land because he lives in the city, Lewis has decided to assign his
contractual rights to his sister, Maria. Four months down the road, Maria defaults on her
lease payments, causing the owner of the estate to demand relief from Lewis. In this
situation, Lewis is
a. forced to pay the relief because he is still liable for his assignee’s actions.
b. forced to pay the relief because Maria is related to him by blood.
c. not required to pay anything to the estate owner because assignors are in no way liable
for their assignees.
d. not required to pay anything to the estate owner because three months had passed since
the assignments.
e. granted the option by property law to pay or not to pay the relief.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
46) Moon’s Autobody Repair decides to purchase a commercial lease from the landlord of a
building with a three-car garage and an upper office area. While Moon’s Autobody had not
made use of the office space, they decided to begin furnishing it one day only to find some
of the landlord’s friends playing poker in the office. In this case,
a. Moon’s must respect the fact that the people are friends of the landlord and allow them to
carry on.
b. Moon’s is unable to take any action because commercial leases have very ambiguous
rights.
c. Moon’s should never have to deal with a situation like this due to the landlord’s
obligation of quiet possession.
d. Moon’s is entitled to a minimum of $300 000 in damages.
e. the landlord should have warned Moon’s about this possibility.
47) Lee has an assortment of oak trees on his land, which he does not use for any purpose.
Marc was able to obtain a profit á prendre with respect to any oak trees on Lee’s land. The
next day, a new man named Gary came onto Lee’s land and began cutting down trees.
When Lee angrily questioned Gary, Gary innocently told Lee that Marc had sold him the
trees purchased in the profit á prendre, giving Gary rights to harvesting. Which of the
following is true?
a. The rights to extract timber cannot be bought because timber is not considered a mineral.
b. Gary can only take trees from Lee’s land if Marc is present with him.
c. The profit á prendre that was sold to Marc is an interest in land and, therefore, does not
contain any harvesting rights.
d. Only express easement can grant the rights to harvesting minerals or other sought after
materials.
e. Marc was wrong to sell Gary any sort of rights to the trees, since the timber does not
belong to Marc until he harvests it.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
48) On June 1, 2005, Angelo sold his house to a newly married couple. Angelo and the
couple agreed in writing that although the couple would legally move in on August 1, 2005,
they would allow Angelo to remain living in the house for a short period until he found a
new place to live. It is now June 1, 2006, and the couple has asked Angelo to leave multiple
times but he continues to refuse. Which of the following has occurred?
a. Angelo’s periodic tenancy has become a tenancy at will.
b. Angelo’s tenancy at will has become a tenancy at sufferance.
c. Angelo’s tenancy at sufferance has become a tenancy at will.
d. Angelo’s fixed term tenancy has become a tenancy at sufferance.
e. Angelo’s tenancy at sufferance remains a tenancy at sufferance.
Essay Questions
1) Why is land sometimes called “real property”? In terms of the enforcement of legal
rights, how is real property treated differently than other forms of property?
2) Takeo sold a piece of land called Blackacre to Suzette. Explain the personal rights and
the property rights that arose as a result of that contract. Against whom can those rights be
enforced?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
3) Omar, an elderly bachelor, has the fee simple to a piece of land called Blackacre. He was
recently told, however, that ultimately he may not fully own that property. Is that statement
correct? How does your answer affect Omar’s ability to exploit the contents of the ground
beneath Blackacre while he is alive? How does it affect the possible ownership of
Blackacre after Omar dies?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
4) Kimiko has the fee simple to a piece of land called Blackacre. It is sometimes said that
“with rights, comes responsibility.” Explain an important set of obligations that Kimiko
owes to other members of the community as a result of her ownership of Blackacre, and
that may result in her being held liable in damages.
5) Explain the concept of “expropriation.”
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
6) What is the difference between a reversion and a remainder? When will each type of
interest arise?
7) “A court has found that Xhosa committed an act of waste.” What does that statement
mean? When will a person be prohibited from committing an act of waste?
8) Clyde has applied to a court for an order for partition. Assuming that that application
will be successful, what type of property interest might he currently enjoy? What will be
the effect when the court grants an order for partition?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
9) Dafyyd, Enid, and Gwyneth share ownership of a piece of land called Blackacre. Evan
has a five-year lease that allows him to occupy Blackacre. He pays an annual rent of $60
000. On what basis will that money be divided among Dafyyd, Enid, and Gwyneth? What
if they are joint tenants? What if they are co-tenants?
10) Identify and briefly explain three ways in which a true easement can be created. Are all
three methods available in all of Canada’s common law jurisdictions? Explain your answer.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
11) Annalie recently acquired a piece of land called Blackacre, which was already subject
to a restrictive covenant. Her lawyer subsequently asked her whether or not she purchased
Blackacre. With respect to the restrictive covenant, why is her answer to that question
important?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
12) Explain the difference between a possessory interest in land and a non-possessory
interest in land. Provide three examples of each. Provide an example of a property interest
that combines a possessory element with a non-possessory element.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
13) Franco and Magda have experienced a changing relationship. He has the fee simple to a
piece of land called Blackacre. She was initially a tenant under a periodic tenancy. She then
occupied Blackacre under a tenancy at will. And now she occupies the property under a
tenancy at sufferance. Explain the most likely means by which the nature of the parties’
tenancy changed.
14) Explain the important differences between the assignment of a lease and the creation of
a sublease.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 15: Real Property: Interests and Leases
15) Danica rented a commercial property to Goran. Goran now claims relief from
forfeiture. On the basis of the materials discussed in the text, explain the circumstances that
most likely have led to Goran’s claim.
