SAEE Property Rights and Legal Concepts 2 — Questions and Answers
Question 1: Eminent domain is the government's power to:
- Take private property for public use with just compensation (Correct answer)
- Regulate land use without compensation
- Collect property taxes from owners
- Take property when an owner dies without heirs
Correct answer: Take private property for public use with just compensation
Eminent domain allows the government to take private property for public use, but the Fifth Amendment requires just compensation be paid.
Question 2: A deed restriction that limits how land may be used is called a:
- Restrictive covenant (Correct answer)
- Prescriptive easement
- Lien
- Encroachment
Correct answer: Restrictive covenant
Restrictive covenants are private limitations recorded in deeds or plats that restrict land use, often running with the land.
Question 3: What distinguishes real property from personal property?
- Real property is permanently attached to land; personal property is movable (Correct answer)
- Real property is owned by individuals; personal property is owned by corporations
- Real property can be financed; personal property cannot
- Real property depreciates; personal property appreciates
Correct answer: Real property is permanently attached to land; personal property is movable
Real property consists of land and permanently affixed improvements, while personal property (personalty) is movable and not attached to land.
Question 4: An encroachment occurs when:
- A structure or improvement extends beyond a property's legal boundary (Correct answer)
- A lender places a claim on property for unpaid debt
- A tenant remains after lease expiration
- An easement is used beyond its permitted scope
Correct answer: A structure or improvement extends beyond a property's legal boundary
An encroachment is an unauthorized physical intrusion of a structure or improvement onto an adjacent owner's land.
Question 5: Which legal concept requires courts to honor a property owner's intent when interpreting deed language?
- Rule against perpetuities
- Doctrine of merger
- Parol evidence rule
- Doctrine of constructive notice (Correct answer)
Correct answer: Doctrine of constructive notice
Constructive notice holds that recorded documents provide legal notice to all parties, and courts interpret recorded deed language to reflect the grantor's intent.
Question 6: A leasehold estate gives the tenant the right of:
- Possession and use for a defined period (Correct answer)
- Full ownership including disposition
- Perpetual occupancy regardless of rent payment
- Automatic renewal upon lease expiration
Correct answer: Possession and use for a defined period
A leasehold estate grants the tenant a temporary right of possession and use for the lease term, while the landlord retains the leased fee interest.
SAEE Property Rights and Legal Concepts 2
Eminent domain is the government's power to: