California Real Estate Instructor Materials PDF

Principles of California Real Estate Instructor Materials Chapter 2 Quiz 5. Sam has a proprietary lease on an apartment 1. A leasehold interest is owned by a: LQ D...

Principles of California Real Estate Instructor Materials Chapter 2 Quiz 5. Sam has a proprietary lease on an apartment 1. A leasehold interest is owned by a: LQ D FRRSHUDWLYH SURMHFW +H PDNHV PRQWKO\ A. lessee payments that include his proportionate share B. lessor of principal, interest, taxes, insurance, and as- C. life tenant sociation fees. In this situation, which of the D. remainderman following is true?  $ +H FDQQRW GHGXFW LQWHUHVW DQG SURSHUW\   (DUODQG0HUOHRZQDSURSHUW\WRJHWKHUZLWK taxes on his income tax return undivided interests, without the right of survi- B. Any special assessments will be made vorship. This would be considered: against all the residents of the building, not A. joint tenancy against the building itself B. tenancy in common  & +HZLOOUHFHLYHKLVRZQUHDOSURSHUW\WD[ C. severalty assessment for his unit D. a periodic estate D. If any other residents default on their leases, he could lose equity on his investment 3. Two business partners purchase property to- gether as joint tenants. One partner then deeds 6. Joint tenancy ownership of real property re- her share of the property to herself and her quires which of the following? husband. In this situation:  $ +XVEDQGDQGZLIHUHODWLRQVKLS A. the two partners continue to hold title as B. The clause “right of survivorship” inserted joint tenants, while the husband is a tenant in the deed with the names of the joint ten- in common ants B. all three parties are now joint tenants C. Equal interests in the property held by each C. title is now held as community property of the joint tenants D. the joint tenancy is terminated D. All of the above 4. If a married couple wants to take title in a man-   ,I¿YHVLEOLQJVRZQDSURSHUW\DVMRLQWWHQDQWV ner that guarantees the right of survivorship, and two of the siblings die, which of the fol- they should take title in: lowing statements would be correct? A. severalty A. The remaining three siblings would hold B. community property title as tenants in common C. joint tenancy B. There would be one title held by the remain- D. tenancy in common ing siblings C. The heirs of the deceased siblings would hold title as tenants in common, while the surviving siblings would continue as joint tenants D. The property would be partitioned among the surviving siblings 8  Chapter 2: Estates in Land and Methods of Holding Title 8. A joint tenant cannot dispose of his interest in  $GDPOHDVHGDSURSHUW\IURP&DVH\IRUD¿YH real property through a: year term. Casey died, at which point Adam A. will found out that Casey had only a life estate in the B. lease property that he was leasing. The lease is: C. gift  $ YDOLGIRUWKHUHPDLQLQJ¿YH\HDUV D. sale B. valid until invalidated by the executor of Casey’s estate C. valid only during the life of Casey 9. If a person holds fee simple title to real property D. invalid since it is fraudulent and illegal to in severalty, she would have: lease a life estate A. sole ownership B. co-ownership with other owners C. a defeasible interest 14. Which of the following would be considered D. title to multiple properties an interest in personal property? A. Improvements constructed on the land  % 0LQHUDOULJKWV  7ZRSHRSOHWDNHWLWOHWRSURSHUW\DV³/XLV3HQD C. A leasehold estate DQG0DULD3HQDKXVEDQGDQGZLIH´,WFDQEH D. Growing trees in a natural forest assumed that they hold title to the property as: A. joint tenants 15. Joel purchases a separate interest in a space, together B. tenants in common with an undivided interest in common in the entire property. This kind of property would be: C. community property D. life tenants A. residential B. commercial C. industrial 11. Al willed his property to his three children as D. Any of the above joint tenants: Barry, Chris, and Dara. Barry then died, leaving behind a will stating that his share of the property would pass to his GDXJKWHU0DU\'DUDWKHQVROGKHUSRUWLRQRI the property to her friend Vera. At this point, how is the property owned?  $ 0DU\DQG&KULVRZQLWDVMRLQWWHQDQWV B. Vera and Chris own it as tenants in com- mon  & 0DU\9HUDDQG&KULVRZQLWDVWHQDQWVLQ common  ' 0DU\DQG&KULVRZQWKHLUVKDUHVDVMRLQW tenants, while Vera owns her share as a tenant in common  :KDW LV GH¿QHG DV WKH ULJKW WR SRVVHVV XVH transfer, and dispose of a thing, to the exclusion of all others? A. An estate B. Equity C. Ownership D. Tenure 9  Principles of California Real Estate Instructor Materials Answer Key & 0DUULHGFRRZQHUVFXVWRPDULO\KROGWLWOHWR 1. A. A lessee (or tenant) has a leasehold interest in property as community property. It is possible property. for them to hold title as joint tenants, but they would need to specify that in the deed. 2. B. Tenancy in common is the form of co-owner- ship with no right of survivorship. 11. B. When Barry died, his attempt to pass his share WR0DU\IDLOHG$MRLQWWHQDQWFDQQRWZLOOKLV 3. D. Joint tenancy requires unity of time and title. interest. Therefore, Chris and Dara were left as The wife re-deeded her interest, even though joint tenants. When Dara sold her share of the it was just to herself and her husband, so the property, that terminated the joint tenancy be- unities are broken and the joint tenancy is de- tween Dara and Chris. Chris and Vera continue stroyed. to own the property together, but as tenants in common. 4. C. Of all the methods of holding title, only joint tenancy includes the right of survivorship. 12. C. Because this broadly refers to “a thing,” which can encompass personal as well as real proper-  ' %HFDXVHDFRRSHUDWLYHSURMHFWLV¿QDQFHGZLWK W\WKLVLVWKHGH¿QLWLRQRIRZQHUVKLS$QHVWDWH one single mortgage and taxed as one single is the right to possess and use real property. property, the failure of one tenant to pay his share of the cooperative’s operating expenses 13. C. A person with a life tenancy may lease the can harm all the tenants—particularly if it leads property to another person, but the lease is ef- to a foreclosure. fective only until the end of the measuring life. At that point, the property will either re- 6. C. Each joint tenant must have an equal interest in the property. This is known as unity of interest. vert back to the grantor, or pass to third parties holding an estate in reversion. 7. B. Because of the right of survivorship, the inter- ests of the deceased joint tenants are merged 14. C. A lease is regarded as personal prop- into the interests of the surviving joint tenants. erty, although it is closely related to There continues to be only one title to the prop- erty. real estate. In this manner, a lease may also be known as a chattel real. 8. A. A joint tenant cannot will his interest in property. Because of the right of survivorship, the other 15. D. The description of Joel’s property is joint tenants automatically receive the deceased the description of a condominium. A tenant’s interest in the property without having to condominium may be residential, com- go through the probate process. mercial, or industrial. 9. A. Ownership in severalty is ownership by one person or entity. 10