Unit 3 REAL ESTATE Class Assignment

Front

Anika recently inherited a piece of property from her grandparents. She learned that this property is protected from creditors under certain conditions. What is this type of property called?

Back

A type of life estate

Answer explanation

The property Anika inherited is protected from creditors, which indicates it is a type of legal life estate. This legal arrangement allows her to use the property during her lifetime, safeguarding it from claims by creditors.

Front

If Mason grants a piece of land to Kai to be used as a park, what does Mason retain in a fee simple determinable if it ceases to be used as a park?

Back

Reversionary Interest

Answer explanation

In a fee simple determinable, if the land is no longer used as a park, Mason retains a possibility of reverter, meaning he can reclaim the property automatically upon the specified condition being violated.

Front

What must Daniel do to assert his right if the condition is violated on his fee simple subject to a condition subsequent?

Back

Legal action in court

Answer explanation

To assert his right after a violation of the condition, Daniel must take legal action in court. This is necessary to enforce the condition and reclaim the property, as automatic transfer does not occur in this scenario.

Front

Sophia is considering buying a piece of land. However, the current owner wants to retain the right to use the land for the next five years. What is this arrangement an example of?

Back

A right that may become effective in the future

Answer explanation

The arrangement allows the current owner to use the land for five years, indicating that Sophia's right to possess the property will only become effective after that period. Thus, it is a right that may become effective in the future.

Front

A life estate is a freehold estate and it is....?

Back

An ownership interest lasting for the life of a specified person

Answer explanation

A life estate is a legal arrangement granting ownership interest in property for the duration of a specified person's life, distinguishing it from leases or rental contracts which do not involve ownership.

Front

Mason is a life tenant of a property. Can Mason sell their interest in the property?

Back

Yes, but it is limited to the duration of the life estate.

Answer explanation

Yes, Mason can sell their interest in the property, but it is limited to the duration of the life estate. This means the buyer's interest will end when Mason's life estate ends.

Front

Ava's grandmother left her a beautiful old house to live in for the rest of her life. Who will receive the property after Ava's life estate ends?

Back

The remainderman

Answer explanation

After the termination of a life estate, the property is transferred to the remainderman, who holds the future interest in the property. The lessee, mortgagee, and seller do not receive the property in this context.

Front

What happens when a property with a possibility of reverter (reversionary interest) is sold?

Back

The original owner retains a future interest that may revert.

Answer explanation

When a property with a possibility of reverter is sold, the original owner retains a future interest that may revert if the conditions for reversion are met, meaning the buyer does not gain permanent ownership.

Front

Aiden took a loan from a bank and a lien was placed on his house. What happens if the lien is not repaid?

Back

The bank, mortgage company, the lienholder can force the sale of Aiden's property.

Answer explanation

If Aiden does not repay the loan, the lienholder has the right to force the sale of his property to recover the debt. This process is known as foreclosure.

Front

Olivia and Nora are neighbors who share a driveway. What is required for them to manage the shared driveway?

Back

A written agreement specifying responsibility

Answer explanation

A written agreement specifying responsibility is essential for a shared driveway to clearly outline the obligations and rights of each party, preventing disputes and ensuring proper maintenance.