CGA CGA Legal Concepts & Property Rights 1 — Questions and Answers
Question 1: Which of the following best defines 'real property' in the context of appraisal?
- The interests, benefits, and rights inherent in the ownership of real estate (Correct answer)
- The physical land and improvements attached to it
- The assessed value of land as determined by local government
- The market value of a property as determined by an appraiser
Correct answer: The interests, benefits, and rights inherent in the ownership of real estate
Real property refers to the rights, interests, and benefits associated with ownership of real estate, as distinguished from the physical asset itself.
Question 2: What is a 'fee simple' interest in real estate?
- The most complete form of ownership, subject only to governmental powers and private encumbrances (Correct answer)
- An ownership interest that expires after a set number of years
- An ownership interest limited to the surface rights of a parcel
- A partial ownership interest shared equally among multiple owners
Correct answer: The most complete form of ownership, subject only to governmental powers and private encumbrances
Fee simple is the highest form of real property ownership, giving the owner the most complete bundle of rights subject only to government powers (police power, eminent domain, taxation, escheat) and any encumbrances.
Question 3: Which governmental power allows the state to take private property for public use with just compensation?
- Eminent domain (Correct answer)
- Police power
- Escheat
- Taxation
Correct answer: Eminent domain
Eminent domain is the government's right to take private property for public use, provided the owner receives just compensation under the Fifth Amendment.
Question 4: What is an easement appurtenant?
- An easement that benefits an adjacent parcel of land and transfers with the property (Correct answer)
- An easement granted to a specific individual that expires upon their death
- An easement that allows public utility companies to access private land
- An easement that reduces a property's value due to a burden
Correct answer: An easement that benefits an adjacent parcel of land and transfers with the property
An easement appurtenant runs with the land and benefits an adjacent dominant estate while burdening a servient estate, transferring automatically with either property.
Question 5: What is a 'lien' in the context of real property?
- A charge or encumbrance against a property that serves as security for a debt or obligation (Correct answer)
- A legal restriction on how a property may be used
- A government tax levied against undeveloped land
- A recorded agreement between neighbors regarding shared use of land
Correct answer: A charge or encumbrance against a property that serves as security for a debt or obligation
A lien is a financial encumbrance on a property, giving the lienholder legal claim to the property if the associated debt is not satisfied.
Question 6: Which type of deed provides the greatest protection to a buyer by including all six common law covenants?
- General warranty deed (Correct answer)
- Special warranty deed
- Quitclaim deed
- Bargain and sale deed
Correct answer: General warranty deed
A general warranty deed provides the most protection, with the grantor warranting title against all defects, whether arising before or during the grantor's ownership.
CGA CGA Legal Concepts & Property Rights 1
Which of the following best defines 'real property' in the context of appraisal?