Real Estate Sales Property Ownership and Rights Questions and Answers — Questions and Answers
Question 1: A homeowner who owns a property on a river has certain rights to the use of the water. These rights are known as:
- Escheat rights
- Littoral rights
- Riparian rights (Correct answer)
- Appurtenant rights
Correct answer: Riparian rights
Riparian rights are granted to landowners whose property is adjacent to a flowing body of water, like a river or stream. Littoral rights apply to properties next to stationary bodies of water like lakes or oceans.
Question 2: Three individuals own a property as tenants in common. One of the owners decides to sell their share. Which of the following statements is true?
- The other two owners have the right of first refusal.
- The sale will dissolve the tenancy in common.
- The selling owner needs the consent of the other two owners.
- The selling owner can freely sell their portion of the interest without the consent of the others. (Correct answer)
Correct answer: The selling owner can freely sell their portion of the interest without the consent of the others.
Tenancy in common is a form of co-ownership where each owner holds a separate, undivided interest in the property. Each owner can sell, devise, or transfer their interest independently of the others.
Question 3: Which of the following forms of ownership is characterized by the right of survivorship, where the surviving co-owners automatically inherit a deceased owner's share?
- Tenancy in common
- Joint tenancy (Correct answer)
- Tenancy in severalty
- Community property
Correct answer: Joint tenancy
Joint tenancy includes the right of survivorship, which is its key feature. When one joint tenant dies, their interest automatically passes to the surviving joint tenant(s), bypassing probate.
Question 4: A landowner grants a neighbor permission to cross their land to reach a public beach. This permission is revocable, non-transferable, and does not create an interest in the property. This is an example of a(n):
- Easement in gross
- Appurtenant easement
- License (Correct answer)
- Encroachment
Correct answer: License
A license is the personal, revocable, and non-assignable permission to perform a certain act on another person's land without granting any interest in the property itself. An easement, by contrast, creates a legal interest in the property and is typically not revocable at will.
Question 5: The most complete form of property ownership, which grants the owner the full bundle of rights for an indefinite duration, is known as:
- A life estate
- A fee simple defeasible estate
- A fee simple absolute estate (Correct answer)
- A leasehold estate
Correct answer: A fee simple absolute estate
A fee simple absolute estate is the highest and most complete form of ownership in real property. It is of potentially infinite duration and is not subject to any conditions or limitations, giving the owner the entire bundle of rights.
Question 6: The 'bundle of rights' refers to the set of legal privileges that are generally transferred to the buyer of real property. Which of the following is NOT considered one of the primary rights in this bundle?
- The right of disposition
- The right of unrestricted development (Correct answer)
- The right of exclusion
- The right of possession
Correct answer: The right of unrestricted development
The bundle of rights includes the rights of possession, control, enjoyment, exclusion, and disposition. The right of development is part of the right of control, but it is not unrestricted; it is subject to zoning laws, building codes, and other governmental regulations.
Real Estate Sales Property Ownership and Rights Questions and Answers
A homeowner who owns a property on a river has certain rights to the use of the water.
These rights are known as: