Real Estate Sales Property Ownership and Rights 1 Flashcards

Two siblings inherit a property and hold equal, undivided shares. If one sibling dies, their share passes to their own heirs rather than the surviving sibling. What form of co-ownership does this describe?

Answer: Tenancy in common

Tenancy in common allows each co-owner to hold an undivided interest that passes to their heirs upon death, with no right of survivorship. This distinguishes it from joint tenancy, where the surviving owner automatically inherits the deceased owner's share.

A landowner whose property borders a river has the legal right to use that water for irrigation and household purposes. What category of rights does this represent?

Answer: Riparian rights

Riparian rights belong to owners of land adjacent to a flowing body of water such as a river or stream, granting them reasonable use of that water. Littoral rights apply to properties bordering standing water like lakes or oceans.

Which of the following is NOT one of the four unities required to establish a valid joint tenancy?

Answer: Unity of purpose

The four unities required for joint tenancy are time (acquired simultaneously), title (same deed or instrument), interest (equal shares), and possession (equal right to the whole property). Unity of purpose is not a legal requirement.

A homeowner's deed includes a clause stating the property must never be used for commercial purposes. If the restriction is violated, the grantor has the right to retake the property. What type of estate does the homeowner hold?

Answer: Fee simple subject to a condition subsequent

A fee simple subject to a condition subsequent grants the grantor a right of re-entry if a specified condition is violated — meaning ownership does not automatically revert but the grantor must take legal action to reclaim it. A fee simple determinable automatically terminates upon the violation.

A person openly occupies and maintains a vacant lot belonging to an absentee owner for 15 years, meeting all statutory requirements. What legal doctrine may allow that person to claim ownership?

Answer: Adverse possession

Adverse possession allows a party to claim title to property after occupying it openly, continuously, exclusively, and hostilely for the statutory period. The elements are often remembered with the acronym OCEAN: Open, Continuous, Exclusive, Adverse, Notorious.

When a life tenant dies, ownership of the property passes to a third party named in the original deed rather than returning to the grantor. What is this third party called?

Answer: Remainderman

A remainderman is the person designated to receive ownership of the property upon termination of a life estate. If ownership returns to the original grantor instead, that interest is called a reversion, and the grantor is the reversioner.