Real Estate Ch 1-6, 12-15

Farmer Giles owns a 200-acre property where he grows wheat and raises chickens. He lives in a house on the property with his family. For property tax purposes, how is Giles's property likely to be classified?

Agricultural real estate can be defined as:

Which of the following best describes equity in a property?

What is legal title?

What is common law?

Which of the following is not a type of residential real estate?

Which of the following would most likely be considered personal property rather than real property?

Gil purchases a new light fixture for his dining room. While the light fixture is still new, wrapped in the box, and unattached to the ceiling, what is it considered to be?

Ashanti is a license holder showing a house to a potential buyer. She is not sure if some of the items in the house are real property or personal property. Which of the following is true about Ashanti's situation?

What is a fixture?

When the parties to a contract agree that personal property will remain with the real property, this is known as:

A bakery owner leases a storefront and installs a custom-built oven, essential for their baking operations, and attaches it to the building's gas and electrical lines. Which of the following best describes the oven's classification?

All of the following are part of land's unique characteristics except:

Which of the following scenarios best exemplifies the principle of accession?

Which of the following scenarios best exemplifies the principle of accretion?

Which of the following statements about erosion is true?

Which of the following scenarios best exemplifies the principle of reliction?

Which of the following scenarios best exemplifies the principle of avulsion?

The cost of real estate in a metropolitan area has gone up dramatically over the past year because an increasing number of people have been moving to that area, and there are only a finite number of parcels of land that are close to the downtown area. This is an example of:

Which of the following best exemplifies the concept of situs?

Which of the following best describes the economic characteristic of fixity in real estate?

Which of the following best describes subsurface rights?

Owner A and Owner B own adjacent properties, both overlying a single oil reservoir. Owner A drills a well on their property and begins extracting oil. Owner B, noticing the declining pressure in their own well, drills a new, deeper well. Which of the following BEST describes the legal implications of this scenario under the rule of capture?

Taysha is planning to build a high-rise condominium in a downtown area. Which of the following factors would most likely impact Taysha's ability to develop the property to her desired height?

Farmer Giles owns a property bordering a river in a state that adheres to the doctrine of prior appropriation. He wants to use the river water to irrigate his crops. Which of the following actions must Farmer Giles take before he can legally use the water?

Prior appropriation is a legal doctrine that applies to:

Two adjacent properties border a river. One property owner has riparian rights, and the river is considered navigable at that point. The other property owner also has riparian rights, but the river is non-navigable at their shared boundary. Which statement best describes the land ownership of the two property owners?

A homeowner wants to drill a well on their property to access percolating water. Which of the following factors would most directly influence their ability to exercise this right?

A buyer is purchasing a rural property that includes a small, seasonal stream. The seller discloses that they previously granted a neighboring farmer an easement to cross a portion of the property to access the stream for irrigation. Which of the following best describes the buyer's rights and responsibilities regarding the easement?

A homeowner grants a local land trust a conservation easement on their property. Which of the following best describes the interests held by the homeowner and the land trust?

An estate can be defined as:

Amelia owns a property in fee simple. Which of the following actions BEST demonstrates Amelia's rights associated with this type of ownership?

Jane owns her house. For the duration of her lifetime, she has the right to her property (unless she sells it) and can will her property title to her children after her death. What type of estate does Jane have?

A property owner donates a large piece of land to a local conservation organization. The deed specifies that the land must be used exclusively as a public park and nature preserve. If the organization ever uses the land for any other purpose, ownership will automatically revert back to the original owner's heirs. What type of estate has the conservation organization received?

A homeowner purchases a property unaware that the previous owner had granted a utility company an easement to run underground power lines across the back of the property. Which of the following best describes the legal status of the utility company's right to access the property?

A developer donates a parcel of land to a city with the deed stating, "This land shall be used solely for the construction and maintenance of a public library." Ten years later, facing budget constraints, the city decides to build a community center on the land instead. What is the most likely outcome regarding ownership of the land?

A wealthy benefactor donates a historic mansion to a non-profit organization, stipulating in the deed that the mansion must be maintained in its original architectural style. Several years later, the organization, facing financial difficulties, begins making significant alterations to the mansion's facade. What is the most likely legal recourse available to the benefactor (or their heirs)?

Bunny loves rabbits, so she granted her farm to Farmer John "so long as rabbits were raised on the property as pets and not eaten." Without court action, title reverted back to Bunny when Farmer John enjoyed homegrown rabbit with his Thanksgiving meal. What kind of freehold estate was involved?

Eleanor grants a life estate in her property to her brother, Frederick. Upon Frederick's death, who will hold title to the property?

A property owner grants a life estate in their property to their spouse, with the stipulation that upon the spouse's death, ownership of the property will transfer to their adult child. What type of interest does the adult child hold in the property?

In a conventional life estate, the measuring life is that of the:

Why do corporations own property in severalty?

Brian and Steven co-own property. Brian can't tell Steven that Steven can only use a portion of the property, and vice versa. Which co-ownership concept is this an example of?

Alex, Jordan, and Casey purchased a vacation home as tenants in common. Alex owns 50%, while Jordan and Casey each own 25%. One day, Alex decides to sell their share to an investor without consulting Jordan or Casey. What happens next?

Which of these is true about tenancy in common?

Liam, Mia, and Noah purchased a house together in Virginia as joint tenants. Their deed does not mention the right of survivorship. Years later, Liam passes away. What happens to his share of the property?

For a joint tenancy to occur, which unities are required?

What happens in a joint tenancy if one of the co-owners dies?

Sarah, Mark, and Emily own a lake house as tenants in common. They disagree on how to use the property; Sarah wants to rent it out, Mark wants to keep it for family use only, and Emily wants to sell it. Which of the following is not true regarding their options for ending their co-ownership?

In which type of ownership do legal spouses each hold an equal and undivided interest in the property which cannot be conveyed or encumbered without consent of the other?

Which of these is not a way property can be held by partnerships?

Alice, Bob, and Carol are forming a partnership to purchase and manage a commercial building. Alice and Bob want to be actively involved in the property's day-to-day operations, while Carol prefers to contribute financially but not participate in management. They are considering two options: a general partnership or a limited partnership. Which of the following statements is most accurate regarding their options?

What is the main difference between general and limited partnerships?

Given that Zack is a limited partner and Zoe is a general partner, what kind of partnership are they most likely to have?

Which of the following statements about a corporation is true?

Maria and Carlos are starting a tech startup. They anticipate rapid growth and want to attract investors. They also want flexibility in how they distribute profits and are concerned about the tax implications for themselves and their future investors. They are discussing the advantages and disadvantages of different corporate structures. Which of the following statements is most accurate?

What is one difference between a limited partnership and an LLP?

What is one advantage of an LLC over a C corp?

Which of the following about the real estate investment is true?

Which of the following best describes a joint venture?

Sarah wants to invest in commercial real estate but doesn't have the capital to purchase a property outright. She's also not interested in the hassles of property management. She's looking for an investment that offers liquidity and diversification. Which of the following investment vehicles would best suit Sarah's needs?

Which of these statements does not describe a typical REIT?

Which of these is not a reason REITs are appealing to investors?

What is the most common type of REIT?

Sarah owns a condo unit in a high-rise building. A pipe bursts in the hallway outside her unit, causing water damage to the hallway carpeting and some minor seepage into her unit. Who is responsible for repairing the hallway carpeting?

John owns a condo unit. He decides to replace his kitchen cabinets. Which of the following best describes John's ownership rights and responsibilities regarding the cabinets?

A condo owner has private roof access from their unit. The roof needs repairs. Who is responsible for paying for these repairs?

David is selling his resale condo to Lisa. They have agreed on a price and signed a purchase contract. David provides the resale certificate to Lisa. Which of the following scenarios would give Lisa the shortest amount of time to rescind the contract?

John is purchasing a new co-op unit. He signs the contract on Monday. The Public Offering Statement (POS) is delivered to him on Wednesday. When does John's rescission period expire?

PUD owners have these two types of ownership:

A developer is building a new community that includes single-family homes, a condominium complex, and a campground. Which parts of the development, if any, will be subject to the Virginia Property Owners' Association Act?

If a trustor of a living trust decides to name themselves as the trustee in order to maintain control of the trust while still alive, what will need to be designated in the event of death or mental incapacitation?

Sarah, a retired teacher, sets up a revocable trust and puts her house in it. Five years later, she decides to sell the house and move to a condo. What must she do before selling the house?

James passes away, leaving a home in his revocable trust for his daughter, Emily. The home was originally bought for $100,000 but is now worth $500,000. If Emily sells the house, how much capital gains tax does she owe?

Which of these is not something land trusts can be used to do?

What is the purpose of a survey?

David buys a historic piece of land in Massachusetts. The deed describes the property using metes and bounds, starting from a large oak tree near a road. A year later, the tree falls during a storm and is removed. What issue might David face when trying to resell the property?

All of the following statements about metes and bounds are true except:

What is a benchmark?

The block and lot survey system is also known as the:

A plat is:

Township lines run west and east, parallel to the baseline. How many miles apart from each other are they?

Township lines intersect with range lines to create townships, which are how many square miles?

In a condominium, the area between the floor and ceiling is called:

Which of the following scenarios correctly demonstrates the use of a datum in real estate?

Ben wants to carpet his bedroom. He measures it as 270 square feet. When he gets to the Carpet Store, he finds that they sell carpet by the square yard. How many square yards is Ben's room?

A restrictive covenant puts restrictions on a property's:

What are the two ways private citizens can control how land is used?

Which of the following scenarios correctly demonstrates a conditional deed restriction?

Which of the following scenarios correctly demonstrates the doctrine of laches?

Which of the following best describes an easement?

Bob buys a home and later discovers a mechanic’s lien placed on the property by a contractor who wasn’t paid by the previous owner. Which of the following is true?

A homeowner in a gated community wants to repaint their house bright neon green, but the HOA denies their request due to a recorded deed restriction. What does this mean?

John is in the process of selling his home when a title search reveals a cloud on the title due to an unresolved ownership claim from a long-lost relative. What should John do?

Ella granted Ol' Sam permission to gather chanterelles in her woods. When Ol' Sam passed, Lil' Sam came by asking to take over the mushroom hunting. Ella said no. Did Ol' Sam have a license or an easement, and why?

Without permission, Betsy's neighbor built a fence that extends onto Betsy's property. What is the fence?

Sarah is interested in buying a home. She reviews the public record, which shows that the previous owner filed a deed for the property five years ago. There is also a notation indicating a lien on the property due to unpaid taxes. However, Sarah does not ask the seller about the lien directly. Which of the following best describes Sarah's responsibility regarding the lien on the property?

Tom is looking at a piece of land and notices that there are two utility poles on the property. He wonders if the utility company has any rights to use the property and whether an easement exists. He decides to ask the seller about the poles, and the seller confirms that the utility company does have an easement for their poles. Which statement correctly describes Tom's knowledge of the easement?

Grace is buying a property, and during her visit, she notices a fence that partially crosses the property line into the neighbor’s land. She doesn’t ask the seller about it and assumes it’s just a harmless mistake. However, she later finds out that the fence has been in that location for over 10 years and the neighbor has never objected. What type of notice should Grace have regarding the encroaching fence?

Which of the following best describes the difference between constructive notice and actual notice when it comes to real estate transactions?

The right of one party to access or use the land of another is a(n):

Which of the following is not a way an easement can be created?

Jim's family decided to sell one of their next-door brownstones, but still wanted to be able to use the next-door driveway to access their parking spot. In the deed of the house they sold, they created an easement across the driveway. What kind of easement is it?

Sarah owns two parcels of land located next to each other: Parcel A and Parcel B. Parcel A is landlocked, and Sarah has the right to cross Parcel B to access the road. This right has been established through an easement appurtenant, and the easement is recorded in the public records. What happens to the easement appurtenant if Sarah sells Parcel B to a new owner, Tim?

Which of these describes a dominant tenement?

Lucy has an easement in gross allowing her to use a private dock on John’s property to launch her boat. After John sells his property to Mike, Lucy continues to use the dock without a formal agreement with Mike. What is the likely outcome of this situation?

Jason has been using a path through Emma’s land to reach his property for the past 12 years without her permission. Emma has never explicitly asked Jason to stop, and she only occasionally checks the property. Which of the following is true about Jason's potential claim for an easement by prescription?

Which of the following best describes the meaning of the terms "open," "notorious," "adverse," and "hostile" in relation to establishing an easement by prescription?

For the last 10 years, the O'Reilly brothers have parked their motorcycles in Mr. Sanders' side lot, with his permission. Now Mr. Sanders wants to put a garden in the lot, and revokes their parking privileges. They claim they have an easement by prescription. Do they? Why or why not?

What is the main difference between easement by prescription and adverse possession?

Which of the following is true regarding judgment liens?

How might a lis pendens notice affect a buyer who is about to purchase a property?

College Credit Union has decided to give Melissa a loan. In exchange, they have a mortgage on Melissa's house. Which term best describes College Credit Union?

Martín wants to file a mechanic's lien. His labor was worth $200. Can he file the lien?

What kind of lien is a bail bond lien?

A lender refinancing a principle loan wants their loan to be the senior lien. What would other existing lien-holders sign to make this happen?

What happens if the debt secured by the lien is for a larger amount than the proceeds of the property sale?

Which of the following is not government land-use control based in police power?

What does a master plan do for a community?

A developer purchases a large plot of land intending to build a shopping mall, but the local government denies the project because the land is zoned for residential use. Which of the following best explains why the government has the authority to restrict the developer’s plans?

A property owner decides to convert their single-family home into a multi-unit rental property without obtaining a building permit. When city inspectors discover the unapproved modifications, what is the most likely consequence?

Which of the following scenarios would most likely result in a property failing to receive a certificate of occupancy after construction is completed?

What is the difference between a subdivider and a developer?

A town's city council seizes Rachel's farm land to build a new power plant. They paid the cost of moving her farm equipment. Why is this not a legal act of eminent domain?

A city wants to build a new public highway, but a homeowner refuses to sell their property. The city then initiates legal proceedings to seize the land while ensuring the homeowner is fairly compensated. This process is known as:

Which of the following situations would most likely result in an inverse condemnation lawsuit?

What are the conditions under which a state can exercise its power of escheat?

What is the primary purpose of the planning board?

After a master plan is adopted, what can a municipality start to create or refine?

Which of these is not something zoning regulates?

A city council has decided to create a set of zoning regulations for their city. They create a master plan. What are the next two steps they're likely to take?

Why are zoning classifications sometimes different across municipalities?

Why is as-of right zoning sometimes controversial in big cities?

What is the relationship between incentive zoning and inclusionary zoning?

What are the two things the zoning board of appeals does?

Gary has a home built on a half-acre lot, which was appropriate for his zone when he bought the home. A few years later, zoning regulations changed and now the smallest buildable lot in his neighborhood is one acre. Gary was allowed to keep his home as it is. What is this an example of?

What is the difference between spot zoning and granting a variance?

What does a certificate of occupancy certify?

Edna and her engineer read the zoning regulations for her lot one way. When they went to get a building permit, the folks at the department of buildings read the regulation another way, and refused her a permit. Where could she go to get an official interpretation of the zoning regulation?

An individual is cleaning up an oil spill on a beach that poses a threat to public health and the environment. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), what is most likely to happen next in this situation?

Superfund projects clean up:

Which of these types of land does the Clean Water Act have specific protections for?

Which of the following is not directly addressed by the Resource Conservation and Recovery Act (RCRA)?

Which of these is required by the National Environmental Policy Act?

Which of these is most likely to cause a brownfield?

Which of the following is true about contracts?

All of the following are essential elements of a legally valid contract except:

Also known as mutual assent, offer and acceptance is:

Which of the following is most likely not a void contract?

Which of these is never true about an unenforceable contract?

The doctrine of laches is most similar to:

Making an offer as specific as possible helps to ensure what?

What happens when a counteroffer is made?

Sarah and James signed a contract to purchase a home, but after reviewing the agreement, they realized they needed to change the closing date and add a clause about the seller leaving the appliances behind. How should these changes be handled?

Contracts can be modified by the use of addenda and amendments. Which of the following statements is correct regarding their use?

If the courts see ambiguity in a contract, how will they typically respond?

What is fair to assume when talking about the discharge of contracts?

When might the discharge-of-contract term "force of law" be used in place of the term "operation of law"?

Which of the following is true regarding the discharge of contracts found to be lacking a legal element?

In what type of contract can a party potentially be exempted due to death or incapacity from their contractual obligations?

What happens when a contract is discharged by merger?

Which of the following is true about revocation and renunciation in an agency relationship?

Which of the following is NOT one of the elements contained in a properly constructed contingency contract?documented legal precedent for the contingency?

What is the advantage of using a binder to submit an offer?

Charity is a listing agent in Virginia. She and her seller have received multiple offers on the seller's home. They decide to tell none of the buyer's agents that there are multiple offers. Evaluate this situation.

What does it mean if an offer includes an escalation clause?

In Virginia, licensees can prepare contracts as long as this is "incidental" to the transaction. What does "incidental" mean?

In Virginia, earnest money must be deposited into the broker's escrow account within how many business days of contract ratification?

Jill is buying a house. The purchase contract states that earnest money will be disbursed to her if the seller defaults. What does that mean?

Which of these parties is advised to take caution by caveat emptor?

Buyer agent Ada needs to send a notice to her counterpart on the seller side. She emails the notice to the other agent. When is the notice considered delivered and received?

What is the right of first refusal?

All of these describe the typical early mortgage, except:

Which of the following is not Increased market for single-family homesa result of the creation of the Federal Housing Administration (FHA)?

Which of the following is true about the Federal Housing Administration (FHA) today?

How did mortgages change with the creation of the FHA?

Which of the following statements about equity in a home is correct?

Which of the following situations would cause the amount of equity in a home to decrease?

How does leverage benefit a borrower when purchasing a home?

What does it mean when a promissory note is referred to as a "negotiable instrument"?

Jennifer wants to buy a new home, so she takes out a loan from Muddy Bank. Three months later, Muddy Bank transfers her loan (and note) to its rival bank, Grassy Bank. Determine what happens with Jennifer's loan.

Sarah wants to borrow money from a bank to renovate her home. The bank requires her to sign a loan agreement and also asks her to use her home as collateral for the loan. What type of note is Sarah signing?

What differentiates a secured note from an unsecured one?

What is the purpose of a security instrument in a mortgage agreement?

In a deed of trust, who holds the title to the real property while the borrower pays off their loan?

In a Deed of Trust arrangement, which party holds the power to initiate foreclosure if the borrower defaults on the loan?

Which of these is a reason that a loan might be negatively amortized?

Equitable redemption occurs before the auction of property and allows:

John works for a company that offers loans from different lenders. John gets paid a commission for bringing lenders and borrowers together. Who will fund the loans John gets approved?

Capital of France (example flashcard)