The Legal Environment of Business and Online Commerce, 7e (Cheeseman)
Chapter 25 Land Use Regulation and Real Property
1) Buildings constructed on land are considered personal property.
2) A bridge would be an example of real property.
3) Subsurface rights cannot be sold separately from surface rights.
4) Plant life and vegetation growing on the surface of land are considered personal property.
5) Kitchen cabinets in a building are considered fixtures.
6) A fee simple owner has the right to exclusively possess and use his property to the extent that
the owner has not transferred any interest in the property.
7) If a person owns real property in fee simple, his or her ownership is limited in duration.
8) If a person owns real property in fee simple, his or her ownership has no limitation on
inheritability.
9) The person who is given a life estate is called the life tenant.
10) A terminated life estate property reverts to the grantor or the grantor’s estate or other
designated person.
11) A life tenant is treated as the owner of the property even after the duration of the life estate.
12) A deceased joint tenant’s will is effective over the right to survivorship.
13) A joint tenant does not have the right to sell or transfer his or her interest in the property.
14) If a party to a tenancy in common sells his or her interest in the property, the tenancy in
common becomes a tenancy by entirety.
15) A tenant in common can sell his or her interest in the property without the consent of the
other co-owners.
16) A surviving spouse in a tenancy by the entirety has the right of survivorship.
17) Separate property is included in community property.
18) Reversion occurs when the rights of possession returns to a third party upon the expiration of
a limited estate.
19) The right of possession of remainder is an example of future interest.
20) The Statute of Frauds requires the real estate sales contracts to be in writing.
21) A deed can only be used to transfer a fee simple absolute interest in real property.
22) A general warranty deed contains the greatest number of warranties and provides the highest
level of protection to a grantee.
23) In a special warranty deed, the seller is liable for defects in title that existed before the seller
obtained the property.
24) Recording a deed gives constructive notice to the world of the owner’s interest in the
property.
25) Properties owned by state and federal governments are subject to the doctrine of adverse
possession.
26) The doctrine of adverse possession requires the delivery of deed for transfer of property to be
valid.
27) To obtain title under adverse possession, the adverse possessor must physically occupy the
property.
28) An easement is an example of nonpossessory interest in another’s real property.
29) The land over which the easement is granted is called the servient estate.
30) An easement appurtenant cannot be terminated upon change in ownership title of the
dominant estate.
31) A new owner of a servient estate cannot inherit the appurtenant easement.
32) An easement in gross does not create a dominant estate.
33) A ticket to a movie theater or sporting event is an example of a license.
34) In a landlord—tenant relationship, the tenant receives a nonfreehold estate in the real
property.
35) A rental agreement between a landlord and a tenant is called a lease.
36) The Statute of Frauds permits lease contracts that last for less than five years to be orally
contracted.
37) Any lease for a stated period irrespective of its duration is called periodic tenancy.
38) A tenancy for years terminates automatically, without notice, upon the expiration of the
stated term.
39) Under a periodic tenancy system, the notice period is usually the same as the length of the
payment period.
40) The death of one of the parties of a tenancy of will does not terminate the contract.
41) A tenant at sufferance is liable for the payment of rent during the period of sufferance.
42) A person who leases a single-family dwelling and does not own more than three single-
family dwellings does not come under the purview of the Fair Housing Act of 1968.
43) The Fair Housing Act specifically prohibits discrimination against disabled individuals in
employment, public services, public accommodations and services.
44) The Americans with Disabilities Act applies only to places of accommodation operated by
public entities.
45) Title III of the ADA requires construction of ramps to accommodate wheelchairs.
46) Monetary damages are not provided in cases involving violation of the ADA.
47) The attorney general may seek equitable relief and civil fines for any violation of the ADA.
48) The Due Process Clause of the Fifth Amendment to the U.S. Constitution requires the
government to compensate the property owner when it exercises the power of eminent domain.
49) The compensation provided by the government for the power of eminent domain is final and
cannot be disputed further.
50) The power of the eminent domain allows the government to take private property for public
use after paying consideration.
51) Land, as well as buildings, trees, soil, minerals, timber, plants, and other things permanently
affixed to the land are known as ________.
A) chattel
B) intangible property
C) personal property
D) real property
52) ________ are an example of real property.
A) Buildings
B) Patents
C) Automobiles
D) Works of art
53) What are surface rights in real property?
A) the right to possess the earth beneath the land
B) the right to occupy the land
C) the right to possess personal property
D) the right to convert personal property to negotiable instruments
54) The rights to the earth located beneath the surface of the land are defined as ________.
A) chattel rights
B) air rights
C) mineral rights
D) joint rights
55) Which of the following is true of subsurface rights in real property?
A) Subsurface rights cannot be used to mine radioactive elements.
B) Subsurface rights can be sold separately from surface rights.
C) Minerals found beneath real property have to be given up to the government.
D) Subsurface rights can only be invoked to dig oil wells.
56) Plant life and vegetation growing on the surface of land are considered to be ________.
A) intangible property
B) real property
C) personal property
D) chattels
57) Plant life that is severed from the land is considered ________.
A) intangible property
B) immovable property
C) real property
D) personal property
58) What are fixtures?
A) goods closely associated with a piece of real property
B) intangible properties created inside the premises of a real property
C) parts of a real property that are easily transferrable without substantial damage to the property
D) goods that cannot be classified as personal property or real property
59) Air rights enable the owner of a property to ________.
A) develop natural and cultivated plant life on the land
B) drill into the earth to utilize ground water for personal use
C) rent or sell the space above the property for commercial purposes
D) create fixtures inside the real property that become a part of the sale agreement
60) The legal rights that the owner has to possess, use, and enjoy the property are known as
________.
A) future interests
B) estate in land
C) easement rights
D) estoppel by deed
61) A(n) ________ is an estate in which the owner has a present possessory interest in the real
property.
A) estate pour autre vie
B) freehold estate
C) future interest
D) easement
62) ________ is a type of ownership of real property that grants the owner the fullest bundle of
legal rights that a person can hold in real property.
A) Fee simple absolute
B) Life estate
C) Servient estate
D) Fee simple defeasible
63) Which of the following is true of an ownership of real property that is fee simple absolute?
A) It cannot be inherited.
B) It terminates based on the occurrence or nonoccurrence of a specified event.
C) It is infinite in duration.
D) It cannot be transferred at will.
64) The difference between a qualified fee ownership and a fee simple ownership is that a
qualified fee ownership can be ________.
A) transferred at will by the owner of the property
B) terminated if a specified event occurs or fails to occur
C) infinite in its duration
D) inherited without limitations
65) A(n) ________ grants the owner all the incidents of a fee simple absolute except that
ownership may be taken away if a specified condition occurs or does not occur.
A) future interest
B) servient estate
C) fee simple defeasible
D) easement estate
66) ________ is an interest in real property that lasts for a specified person’s lifetime.
A) Life estate
B) Fee simple absolute
C) Servient estate
D) Fee simple defeasible
67) Which of the following is true of a life tenant?
A) A life tenant has the right to sell the life estate at will.
B) A person who gives a life estate to another is called a life tenant.
C) A life tenant can possess the life estate to the point of rendering it worthless by permanent
damage.
D) A life tenant is treated as the owner of the property for the duration of the life estate.
68) A life estate that is measured by the life of a third party is referred to as ________.
A) estate pour autre vie
B) servient estate
C) community property
D) future interest
69) ________ is a form of co-ownership that includes the right of survivorship as well the right
of tenants to unilaterally transfer their interest without the consent of co-tenants.
A) Tenancy in common
B) Joint tenancy
C) Cooperatives
D) Tenancy by the entirety
70) After the death of Horace, the other two joint tenants of the luxury dining restaurant
“Rendezvous” became the owners of Horace’s interest in the property automatically. This feature
of their concurrent ownership is called ________.
A) quiet title action
B) adverse possession
C) nonconforming use
D) right of survivorship
71) When does a joint tenancy become a tenancy in common?
A) when a joint tenant sells his or her property
B) when a joint tenant dies
C) when two joint tenants swap their share in the tenancy
D) when two joint tenants are bound by a marital relationship
72) Karen, Kelsey, Rita, and Lizzi own a large commercial building as concurrent owners. They
are tenants with the right to survivorship. Lizzi sells her one-quarter interest in the building to
Stella. What kind of concurrent ownership exists between Karen, Kelsey, Rita, and Stella?
A) a tenancy in common
B) a tenancy by entirety
C) a joint tenancy
D) a community property
73) Which of the following provisions protects the interest of a joint tenancy upon the death of a
joint tenant?
A) the quiet title action
B) the estate in land
C) the right of survivorship
D) the quitclaim deed
74) Carmen, Westbrook, and Ashton are concurrent owners of a large commercial building.
Ashton executes a will that leaves all his property to his son in the event of his death. But after
Ashton passes away, his ownership interest in the building was acquired by the two remaining
tenants of the building. Which of the following kinds of concurrent ownership would allow such
a passage of title?
A) a tenancy by entirety
B) a community property
C) a joint tenancy
D) a tenancy in common
75) Karen, Kelsey, Rita, and Lizzi own a large commercial building as concurrent owners. They
are tenants with the right to survivorship. Lizzi transfers her one-quarter interest in the building
to a private charity organization owned by Stella. Under which of the following forms of
concurrent ownership would Karen, Kelsey, and Rita become the owners of the property
following Lizzi’s death without the inclusion of the private charity organization run by Stella?
A) a tenancy by entirety
B) a community property
C) a joint tenancy
D) a tenancy in common
76) Which of the following is a form of co-ownership that disallows the right of survivorship and
allows unilateral transfer of interest?
A) tenancy in common
B) joint tenancy
C) cooperatives
D) tenancy by the entirety
77) Martin, who owned a piece of property along with two other tenants, executed a will by
which he left all his property to his son. When Martin died, his son received his interest in the
shared property and became a tenant with the other two owners. What kind of concurrent
ownership would allow such a passage of title?
A) a joint tenancy
B) a tenancy in common
C) a tenancy by entirety
D) a community property
78) ________ is a form of co-ownership of real property that can be used only by married
couples.
A) Cooperatives
B) Tenancy in common
C) Joint tenancy
D) Tenancy by the entirety
79) Which of the following is true of a tenancy by the entirety?
A) It can only be formed between corporations.
B) It does not contain the conditional right of survivorship upon the death of a tenant.
C) It cannot be created by the usage of express words alone.
D) It cannot be transferred by any one of the tenants without the consent of the other.
80) Which of the following forms of co-ownership of real property applies only to married
couples?
A) joint tenancy
B) community property
C) tenancy in common
D) condominiums
81) If they filed for divorce in a state that recognizes community property, what amount would
each receive?
A) $1,300,000
B) $2,297,500
C) $725,000
D) $1,050,000
82) If they filed for divorce in a state that recognizes community property, what would be the
separate property owned by Jonas at the end of their marriage?
A) $1 million of real estate and $1.5 million in securities
B) $500,000 of real estate and $2.5 million in securities
C) $1.5 million of real estate and $3 million in securities
D) $2.5 million of real estate and $2 million securities
83) Future interest in real property refers to ________.
A) an interest in real property that involves actual and current possession
B) an interest in an estate that represents the highest form of ownership
C) an interest in real property that has been sold or permanently transferred to a third party
D) an interest in real property that a grantor retains for himself or herself or a third party
84) A ________ is a right of possession that returns to the grantor after the expiration of a
limited or contingent estate.
A) reversion
B) remainder
C) quiet title action
D) nonconforming use