Chapter 50
Real Property and
Landlord-Tenant Relationships
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. Land includes all of the waters on or under its surface.
B2. In a fee simple absolute, the owner has the greatest aggregation of rights, privileges,
and power possible.
B3. Persons who share ownership rights simultaneously are life tenants.
B4. A joint tenant’s sale of his or her interest terminates the tenancy.
B5. It is presumed that a co-tenancy is a joint tenancy unless there is a clear intention to
establish a tenancy in common.
B6. No tenant has a qualified right to the exclusive possession of leased real property.
B7. An easement arises when the owner of one piece of land occupies the real property of
a neighbor and eventually acquires title to it.
B8. An easement may arise by implication.
B9. A profit is a right to go onto land owned by another and take away some part of the
land itself or some product of the land.
B10. A license is the revocable right of a person to come onto another person’s land.
B11. Real estate sales contract are often made contingent on the buyer obtaining
financing.
B12. A seller generally has a duty to disclose any known defect that materially affects the
value of the property.
B13. A special warranty deed provides the most protection against defects of title.
B14. For a party to take by adverse possession, the party’s possession must not be open,
visible, or notorious.
B15. Eminent domain is the right of an owner in fee simple absolute to transfer property to
whomever he or she wishes.
B16. Most states do not limit the government’s ability to take private property and give to
private developers.
B17. Land assigned by zoning laws for business activities is designated as being for
commercial use.
B18. There are no exceptions to zoning laws.
B19. The implied warranty of habitability does not apply to substantial physical defects that
a landlord has had a reasonable time to repair.
B20. Even after a tenant sublets leased premises, he or she may be obligated to pay rent.
MULTIPLE CHOICE QUESTIONS
B1. Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The
exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
B2. Orin owns Pilot’s Landing Office Park. His ownership rights include the right to sell or
give away the property without restriction, as well as the right to commit waste, if she
chooses. Orin’s ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. the power of eminent domain.
B3. Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use
the property, including extracting silver from an existing mine, for life. Patsy also has
the right to lease the land for a period not to exceed her life. This ownership interest
is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. the power of eminent domain.
B4. Edna and Flavia buy a boat that they dock in a marina near Gulfport, Mississippi. On the
death of either owner, that owner’s interest in the boat passes to her heirs. This is
a. a joint tenancy.
b. a life estate.
c. a tenancy in common.
d. ownership in fee simple absolute.
B5. Ian and Jackie take title to a drive-through Koffee Kiosk in such a way that if one dies,
the other will be the sole owner. Ian and Jackie own the kiosk as
a. co-owners in fee simple.
b. joint tenants.
c. tenants by the entirety.
d. tenants in common.
B6. Jody and Kent each own one-half of Local Motion, a club, as a tenant in common. Kent
sells his interest to Meri, who now owns
a. no interest in the firm.
b. the firm in fee simple.
c. the firm with Jody as joint tenants.
d. the firm with Jody as tenants in common.
B7. Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the
summer. Jamal’s tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a restrictive covenant.
d. a tenancy at will.
B8. Cornucopia Farms LLC possesses farmland. Cornucopia has the right to use the
property, including harvesting the crops, for ten years. Cornucopia does not have the
right to extract the coal under the land. This is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
B9. Utility Power Company has the right to run its power lines across Velma’s land. This is
a. a license.
b. an easement.
c. a profit.
d. a tenancy at sufferance.
B10. With respect to Egor’s land, Fig has an easement, Gabe has a profit, and Huck has a
license. A right to possess the land is owned by
a. Egor.
b. Fig.
c. Gabe.
d. Huck.
B11. Mineral Products Corporation, which owns no land, has a right to mine the copper
from Natural Resource Company’s land. Mineral’s right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
B12. Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that
warrants only that Opal held good title during her ownership of the property. This
deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
B13. To acquire the ownership of a vacant lot by adverse possession, Durwood must
occupy the lot exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owner’s knowledge.
d. with the state’s permission.
B14. Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building
Company. Unlike a purchaser of real property, Consumer Shops
a. acquires only temporary possession of the premises.
b. enjoys exclusive possession of the premises.
c. holds only temporary title to the premises.
d. retains temporary, exclusive possession and title to the premises.
B15. Property Management Corporation (PMC) owns several apartment buildings in two
states. Regarding standards for maintenance of the buildings, PMC should consult
a. the applicable city ordinances and state statutes.
b. the previous owners.
c. the long-term tenants.
d. the Uniform Landlords’ Maintenance Manual.
B16. Oak Grove Residences, Inc., owns apartment buildings. Pedro leases one of Oak
Grove’s apartments. Pedro’s transfer of his interest in the lease to Quito for a period
shorter than the lease term is
a. an assignment.
b. an eviction.
c. a right of entry.
d. a sublease.
B17. Bren leases an apartment from Cris for one year. After two months, she sublets the
premises for the next six months to Dee, without obtaining Cris’s consent. Dee pays
the rent for only four months. For the last two months of Dee’s six-month term, Bren
is
a. liable for the rent, because Dee defaulted.
b. liable for the rent, because the sublease lacked Cris’s consent.
c. not liable for the rent, because Bren does not own the apartment.
d. not liable for the rent, because Bren sublet the premises to Dee.
B18. Sid rents an apartment from Town Homes, Inc. The lease, which ends on May 31, does
not include an option for renewal, and Sid and Town do not discuss whether Sid can
stay on at the end of the term. On June 1, Sid has
a. an implied option to renew the term.
b. a right to remain contingent on notice from Town.
c. a right to remain subject to notice to Town.
d. no right to remain.
Fact Pattern 50-1B (Questions B19–B20 apply)
Shopping Mall, Inc. (SMI), leases space to Toney Goods Company and Uneek Stuf Store. Later,
Uneek begins to sell items that are similar to Toney’s goods, and Toney abandons its space
before the end of the lease term.
B19. Refer to Fact Pattern 50-1B. Toney is liable to
a. neither SMI nor its tenants.
b. SMI and Uneek for disputing Uneek’s business decision.
c. SMI for at least some of the unpaid rent.
d. SMI’s tenants, except Uneek, for abandoning Toney’s space.
B20. Refer to Fact Pattern 50-1B. In a growing number of jurisdictions, SMI would be
a. entitled to damages from Uneek for its business decision.
b. entitled to increase other tenants’ rent to cover Toney’s unpaid rent.
c. entitled to the unpaid rent from Toney.
d. required to mitigate its damages.
ESSAY QUESTIONS
B1. Jai owns an orchard behind Key’s house and property. The only access to the orchard
is Key’s driveway, which Jai uses to get to her orchard. Jai sells the orchard to
Laurentz. Can Laurentz use the right-of–way across Key’s property?
B2. Bay City exercises its power of eminent domain to acquire land for a public project,
including part of a mass transit monorail and a traffic bypass. Bay City relocates more
than 10,000 residents from the land and destroys their homes to begin the project.
Cho’s Sweet Treats is a bakery at the edge of the area. Cho’s loses most of its business
when the residents are moved. Cho’s files a suit against Bay City, alleging that the
city’s acquisition of the land resulted in a taking of the bakery’s property interest,
entitling it to compensation. What is a taking? What might Cho’s claim is its “property
interest” to support this allegation? What is the court likely to rule? Why?