CGA CGA Legal Concepts & Property Rights 2 — Questions and Answers
Question 1: In appraisal, which concept describes the right to use a property in any lawful manner?
- Bundle of rights (Correct answer)
- Highest and best use
- Fee simple absolute
- Transferability
Correct answer: Bundle of rights
The 'bundle of rights' concept includes the rights to use, sell, lease, mortgage, and exclude others from a property, representing the full scope of ownership.
Question 2: What is a 'deed restriction' (or restrictive covenant)?
- A private limitation on property use recorded in the deed that runs with the land (Correct answer)
- A government ordinance prohibiting certain construction on a parcel
- A court-ordered restriction placed on a property during litigation
- A zoning overlay that limits building height
Correct answer: A private limitation on property use recorded in the deed that runs with the land
Deed restrictions are private agreements recorded in the chain of title that impose limitations on land use and are binding on future owners.
Question 3: Which type of ownership allows two or more people to hold title with right of survivorship?
- Joint tenancy (Correct answer)
- Tenancy in common
- Tenancy at will
- Tenancy by the entirety between non-spouses
Correct answer: Joint tenancy
Joint tenancy includes the right of survivorship, meaning a deceased owner's interest automatically passes to the surviving joint tenant(s) rather than through probate.
Question 4: What is an 'encumbrance' as it applies to real property?
- Any claim, lien, charge, or liability that affects or limits the fee simple title to a property (Correct answer)
- The physical condition of a property that negatively affects its value
- A zoning regulation that limits the density of development
- The assessed tax value assigned to a property by the local government
Correct answer: Any claim, lien, charge, or liability that affects or limits the fee simple title to a property
An encumbrance is a legal claim or burden on real property, such as a lien, easement, or deed restriction, that may limit the owner's use or transfer of the property.
Question 5: What does 'police power' allow government entities to do in relation to real property?
- Regulate the use of private property to protect the public health, safety, morals, and general welfare (Correct answer)
- Seize property without compensation for emergency public use
- Tax real property based on its assessed value
- Take ownership of property when an owner dies without heirs
Correct answer: Regulate the use of private property to protect the public health, safety, morals, and general welfare
Police power is the government's authority to regulate property use through zoning, building codes, and environmental laws without compensating the owner, as long as it doesn't constitute a taking.
Question 6: What is 'escheat' in the context of real property law?
- The reversion of property to the state when an owner dies without heirs or a valid will (Correct answer)
- The foreclosure of a property when mortgage payments are delinquent
- The government's power to regulate land use through zoning ordinances
- The process of clearing a clouded title through a quiet title action
Correct answer: The reversion of property to the state when an owner dies without heirs or a valid will
Escheat is the governmental power by which a state acquires title to property when the owner dies intestate without heirs or when property is abandoned.
CGA CGA Legal Concepts & Property Rights 2
In appraisal, which concept describes the right to use a property in any lawful manner?