Property Ownership Progress Exam 1

A life estate is limited to the life of its owner, or the life of one or more designated persons. All of the following are correct statements, except:

• a life estate is a freehold estate.

• the holder of a life estate is entitled to all the rents and profits from the land.

•   the holder may dispose of his life estate by sale or lease and encumber it.

•   there may be only one estate existing in a life estate at the same time and under the same circumstances.

The principals of a __________ are each personally liable to creditors.

• corporation.

•  partnership.

• limited partnership.

• Limited Liability Company

A homestead has no effect on a:

• mortgage.

• trust deed

• mechanic's lien

• any of the above

As a real estate licensee, you will often be asked to explain a Declaration of Homestead. All of the following are correct statements concerning this protection except:

• it does not protect the homeowner against mechanic's liens, tax liens, deeds of trust, or mortgages.

• it may be declared on a resident-owner 21-unit apartment house.

• it may be declared on only one property of an individual; however, upon sale of the property and purchase of a new property a declaration may be recorded on the new property without a formal Declaration of Abandonment of the first Declaration of Homestead.

• a declaration is not valid unless recorded prior to the filing of a court action.

An easement can be obtained by prescription. This is most nearly like:

• adverse possession.

• eminent domain.

•  both (a) and (b)

• neither (a) nor (b)

A lease is or may be:

• an estate for years.

• an estate in real property.

• a less-than-freehold estate.

•  all of the above

A fee simple estate is most likely to be a:

• freehold estate.

• leasehold.

•  less-than-freehold estate.

• maximum interest obtainable.

If "A," "B," and "C" have property as joint tenants, and "B" sells his share to "W" and "A" dies leaving an heir, "S," which situation is correct?

• 2/3 goes to "C" and "W" with "S" as a tenant in common

• 1/3 goes to "C," 1/3 to "W," and 1/3 to "S" after court decision

• C and "W" have a tenancy in common

• Joint tenancy goes through probate

A wife recorded a declaration of homestead on the community property without her husband's signature. Which of the following exemptions would the couple receive?

•   Nothing

• $75,000

•  $100,000

• $200,000

Personal property may:

• become real property.

• be assessed.

• be hypothecated.

• all of the above