Chapter 8 Review Questions

Questions and Answers

What is the opposite of Erosion?

Accretion

Which of the following is intangible?

Lands

Buildings

Furniture

Stocks and bonds (correct)

If a court uses the four tests to determine whether or not an item is personal or real property, which of the following items would be most likely determined to be part of the real estate?

The patio furniture

A ceiling fan hanging in the family room (correct)

A light bulb in a chandelier

A washing machine

What does it mean that Real Property laws in the USA are based on the allodial system?

Private citizens have the right to own land and to enjoy a bundle of rights associated with ownership of the land. Signup and view all the answers

The owner of the house has the right to occupy that house. This is an example of which right?

Possession Signup and view all the answers

The owner of the house has the right to will that house to his or her heir. This is an example of which right?

Disposition Signup and view all the answers

What is a freehold estate?

An estate in which the tenant has an ownership interest Signup and view all the answers

What is an estate in severalty?

Ownership of the entire bundle of rights by one person Signup and view all the answers

What four units are required for the creation of a joint tenancy?

Possession, Interest, Time, Title Signup and view all the answers

All of the following statements about tenancy by the entireties are accurate, EXCEPT:

If the husband and wife divorce, the estate becomes a joint tenancy, unless the court states otherwise Signup and view all the answers

The party who receives ownership of a life estate is called?

Life tenant Signup and view all the answers

The right of a grantor to regain ownership of the estate upon the death of the life tenant is called?

Reversion Estate Signup and view all the answers

What is the difference between a reversion estate and a remainder estate?

A reversion estate returns to the grantor upon death of the life tenant; a remainder estate passes to a party other than the grantor upon the death of the life tenant. Signup and view all the answers

What is a non-freehold estate?

An estate in which the tenant does not have an ownership interest. Signup and view all the answers

All of the following statements about tenancy at will are accurate, EXCEPT:

A tenancy at will is terminated upon the time limit specified in the lease agreement between the landlord and the tenant Signup and view all the answers

All of the following are ways by which a tenancy for years can be ended, EXCEPT:

At will by the landlord Signup and view all the answers

All of the following statements about elective share are accurate, EXCEPT:

Elective share is an automatic right created upon marriage Signup and view all the answers

What does it mean if a person dies intestate?

The person did not have a will. Signup and view all the answers

What is a decedent?

A person who died. Signup and view all the answers

What is a homestead?

Real property that is owned by the head of a household who resides therein. Signup and view all the answers

Homestead law protects the homestead property against foreclosure or forced sale for all of the following, EXCEPT:

Debts of the head of the household that are related to the homestead property Signup and view all the answers

All of the following are included in the ownership of a condo unit, EXCEPT:

Insurance coverage for the interior of the unit. Signup and view all the answers

All of the following documents are associated with condo, EXCEPT:

A proprietary lease Signup and view all the answers

What is unique about ownership in a cooperative association?

A corporation that buys and owns a building. Shares of stock in the corporation are sold to individuals who are given a proprietary lease by the corporation, which allows the shareholder to occupy specified space within the building. Signup and view all the answers

What is the required cooling off period for purchases of timeshares?

10 days Signup and view all the answers

Which entity regulates condominiums, cooperatives, mobile home parks, and timeshare facilities?

The Division of Florida Condo, Timeshares and Mobile Homes within the DBPR Signup and view all the answers

All of the following persons are required to have a real estate license, EXCEPT:

A person who sells condo units as a salaried employee of an owner-developer Signup and view all the answers

All of the following must be disclosed to a buyer when membership is required in a homeowners' association, EXCEPT:

The financial status of the HOA, including the prior year's association tax returns and financial accounting records Signup and view all the answers

All of the following estates include legal title to real property, EXCEPT:

Tenancy for years Signup and view all the answers

What rights allow a property owner to have reasonable use of water flowing over or through his or her land?

Riparian Signup and view all the answers

Study Notes

Real Property Concepts

Erosion vs. Accretion: Accretion is the opposite of erosion, referring to the gradual increase of land due to natural forces.
Intangible Assets: Stocks and bonds represent intangible assets, unlike physical items such as furniture, buildings, or land.

Personal vs. Real Property

Determining Real Property: A ceiling fan is likely categorized as part of real estate, while washing machines and patio furniture are not.
Allodial System: Under this system, private citizens have the right to own land with associated property rights.

Property Ownership Rights

Possession: Owners have the right to occupy their property.
Disposition: Owners can will their property to heirs, demonstrating the right of disposition.

Types of Estates

Freehold Estate: An estate where tenants have ownership interest.
Estate in Severalty: Complete ownership of all property rights by one person.

Joint Tenancy Requirements

Joint tenancy requires four units: possession, interest, time, and title for creation.

Tenancy by the Entireties

Tenancy by the entireties prevents either spouse from selling their interest independently, and survivorship rights come into play upon death.

Life Estate Terminology

Life Tenant: The individual who holds ownership of a life estate.
Reversion vs. Remainder Estate: A reversion estate returns to the grantor after the life tenant's death; remainder passes to another party.

Non-Freehold Estates

Non-freehold estates denote situations where tenants do not hold ownership interests.

Tenancy Agreements

Tenancy at Will: Characterized by no fixed ending date but can be terminated by property sale or death.
Tenancy for Years Endings: Cannot be ended at will by landlords; options include expiration, breach of contract, or mutual agreement.

Elective share must be elected within four months of death and is not an automatic right upon marriage.

Intestate and Decedent Definitions

Intestate: A person who dies without a will.
Decedent: Refers to a deceased person.

Homestead Definition and Protection

Homestead refers to property owned and occupied by the head of a household, and it provides protection against forced sale for certain debts.

Condominium Ownership

Condo owners possess airspace, have fractional ownership of common areas, but are not responsible for exterior maintenance or insurance.

Cooperative Associations

In cooperatives, ownership is through shares in a corporation, allowing members to occupy designated spaces.

Timeshare Regulations

A cooling-off period of 10 days applies to timeshare purchases, allowing buyers to reconsider their investment.

Regulation of Real Estate Entities

The Division of Florida Condo, Timeshares, and Mobile Homes regulates condominiums, cooperatives, mobile home parks, and timeshare facilities.

Real Estate Licensing Exceptions

Salaried employees selling condo units on behalf of owner-developers are not required to have a real estate license.

Homeowners' Association Disclosure

Buyers must be informed about private restrictions and HOA assessments but not necessarily the financial status of the HOA.

Real Property Legal Title

Tenancy for years does not convey legal title to real property, unlike fee simple estates, life estates, and tenancy by the entireties.

Water Rights

Riparian Rights: Property owners have rights to reasonably use water that flows across or through their land.

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Description

Test your knowledge with these review questions from Chapter 8. Explore concepts such as erosion and accretion, and differentiate between tangible and intangible assets. Ideal for students preparing for exams on property law.