FREE Real Estate Sales Property Ownership and Rights Questions and Answers Flashcards

A developer includes a clause in all deeds restricting homes to residential use only. What type of restriction is this?

Answer: Restrictive covenant

A restrictive covenant is a private agreement written into deeds that limits how property within a development may be used.

Which statement is true regarding joint tenancy?

Answer: All joint tenants must acquire their interest at the same time with equal shares

Joint tenancy requires four unities — time, title, interest, and possession — meaning all owners must acquire equal shares simultaneously.

What happens to a life estate when the life tenant dies?

Answer: The property passes to the remainderman or reverts to the grantor

Upon death of the life tenant, ownership transfers to the designated remainderman or reverts back to the original grantor.

A homeowner association requires all houses to have approved exterior paint colors. This authority comes from which source?

Answer: CC&Rs recorded against the subdivision

Covenants, Conditions, and Restrictions (CC&Rs) are recorded documents that give HOAs authority to enforce aesthetic and use standards.

Which type of ownership estate can potentially last forever but may be terminated if a specific condition occurs?

Answer: Fee simple defeasible

A fee simple defeasible estate has potentially infinite duration but can be terminated automatically or by re-entry if the owner violates a stated condition.

An electric company has the right to run power lines across multiple private properties. What type of easement does the company hold?

Answer: Easement in gross

An easement in gross benefits a person or company rather than an adjacent parcel of land, which is typical for utility companies.