Question 1

Which type of ownership provides the greatest degree of control and is of unlimited duration?

Accepted Answer

Fee simple absolute is the highest form of property ownership. It is of unlimited duration, freely transferable, and inheritable. The owner has full control over the property, subject only to government restrictions and private restrictions of record.

Question 2

Two unmarried individuals each own an undivided 50% interest in a property and have the right of survivorship. What type of ownership do they hold?

Accepted Answer

Joint tenancy includes the right of survivorship — when one owner dies, the surviving joint tenant automatically receives the deceased's share without probate. Joint tenancy requires the four unities: time, title, interest, and possession. Tenancy in common does NOT include survivorship rights.

Question 3

A property owner grants a life estate to her sister. When the sister dies, the property will automatically pass to the owner's son. The son's future interest is called a:

Accepted Answer

A remainder is a future interest that passes to a third party (the remainderman) upon the termination of a life estate. If the property were to return to the original grantor or the grantor's estate instead, that future interest would be called a reversion.

Question 4

Which type of concurrent ownership is available ONLY to legally married spouses and automatically carries the right of survivorship?

Accepted Answer

Tenancy by the entirety is a special form of co-ownership reserved exclusively for married couples. It includes the right of survivorship and, in many states, provides protection from individual creditors of only one spouse. Neither spouse can convey their interest without the other's consent.

Question 5

Real property ownership rights are often described as a 'bundle of rights.' Which of the following is NOT included in this bundle?

Accepted Answer

The bundle of rights for private property owners includes possession, control, enjoyment, exclusion, and disposition. Eminent domain is a government power — the right to take private property for public use with just compensation — and is not a right held by private property owners.

Question 6

A homeowner's title is subject to a deed restriction requiring that the property only be used for residential purposes. This restriction is an example of a:

Accepted Answer

A restrictive covenant (also called a deed restriction) is a private limitation on property use that is written into a deed or recorded separately and runs with the land — meaning it binds future owners. Zoning is a government-imposed land use restriction, while mechanic's liens and prescriptive easements are entirely different encumbrances.

Question 7

In a condominium, individual owners hold title to their unit plus:

Accepted Answer

Condominium owners hold fee simple title to their individual unit airspace and an undivided interest as tenants in common in all common elements (lobbies, hallways, roof, grounds, etc.). This distinguishes condominiums from cooperatives, where residents own shares in a corporation rather than direct title to a unit.

Question 8

Which government power allows the state to collect a deceased person's property when they die without a valid will and without any heirs?

Accepted Answer

Escheat is the government power by which property of a person who dies intestate (without a will) and without legal heirs reverts to the state. The four government powers affecting real estate are: eminent domain, police power, taxation, and escheat (remembered by the acronym PETE).

Question 9

An easement appurtenant benefits:

Accepted Answer

An easement appurtenant attaches to the land and benefits the dominant tenement (the parcel that enjoys the easement right). It automatically transfers with the property when sold. The land burdened by the easement is called the servient tenement. By contrast, an easement in gross benefits a person or company rather than a parcel of land.

Question 10

Which of the following best describes a fee simple defeasible estate?

Accepted Answer

A fee simple defeasible (also called a qualified fee or conditional fee) is a potentially infinite ownership interest that can be lost if a stated condition is violated or not met. Examples include a fee simple determinable ('so long as the land is used for a school') and a fee simple subject to condition subsequent. If the condition is violated, ownership can revert to the grantor.

Property Ownership Practice Questions

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