Real Estate Fundamentals - Chapter 6: Real Property Interests

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| By Sseveland

Sseveland

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Quizzes Created: 21 | Total Attempts: 26,768

Questions: 10 | Attempts: 297 | Updated: Mar 21, 2023

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Questions and Answers

1.

In real estate the term "estate" refers to a large ranch or mansion or the accumulation of wealth or assets.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Estate means the kind of interest a person has in real property.

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2.

In real estate, there are essentially 2 kinds of estates: freehold and leasehold.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
In real estate, there are indeed two types of estates: freehold and leasehold. Freehold estates give the owner complete ownership and control over the property, while leasehold estates grant the owner the right to use the property for a specific period of time, usually through a lease agreement. Therefore, the statement is true.

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3.

A freehold estate refers to the interest that a tenant has in real property.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
A freehold estate refers to an ownership interest in real property for an undetermined period of time.

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4.

A leasehold estate refers to an ownership interest in real property for an undetermined amount of time.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
A leasehold estate involves the interest that a tenant has in real property.

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5.

The most important type of freehold estate is called fee simple. It is the highest and most complete form of ownership in real estate that is possible.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The explanation for the given correct answer is that fee simple is indeed the most important type of freehold estate. It grants the owner absolute ownership and control over the property, with the right to use, sell, lease, or pass it on to heirs. This type of ownership is considered the highest and most complete form of ownership in real estate, making the statement "True" accurate.

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6.

Although fee simple is the most preferred ownership interest for the majority of people, it does NOT contain all of the allowable bundle of rights of ownership and does NOT represent absolute, unconditional ownership forever.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Fee simple DOES contain all of the allowable bundle of rights of ownership and DOES represent absolute, unconditional, ownership forever.

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7.

A variation of a fee simple is a fee simple absolute, a type of fee simple in which there are no limitations upon the ownership rights other than the government powers.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because a fee simple absolute is a type of ownership where there are no restrictions or limitations on the owner's rights, except for the powers of the government. This means that the owner has complete control and can use, sell, or transfer the property as they wish, without any restrictions imposed by the previous owner or any other party. The government, however, still retains certain powers, such as the ability to regulate land use or impose taxes. Therefore, the statement is correct.

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8.

The second type of freehold estate is called a defeasible fee estate. It can be distinguished from fee simple in that it is a conditional form of real property ownership. Because the word defeasible means capable of being defeated, this type of ownership can be terminated because it is based upon a condition.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
For example: an owner wants to donate land to a local municipality for recreation purposes only.

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9.

The official name of the owner of a life estate is dower.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The official name of the owner of a life estate is a Life Tenant.

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10.

An estate pur autre vie is an ownership interest in real property for the life or lives of someone other than the owner of the life estate.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
For example: Person A could convey ownership to Person B for the lives of Person's C and D.

"pur autre vie" means "for another's life"

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Jul 28, 2011

Quiz Created by
Sseveland

Real Estate Fundamentals - Chapter 6: Real Property Interests

In real estate the term "estate" refers to a large ranch or mansion or the accumulation of wealth or assets.

In real estate, there are essentially 2 kinds of estates: freehold and leasehold.

A freehold estate refers to the interest that a tenant has in real property.

A leasehold estate refers to an ownership interest in real property for an undetermined amount of time.

The most important type of freehold estate is called fee simple. It is the highest and most complete form of ownership in real estate that is possible.

Although fee simple is the most preferred ownership interest for the majority of people, it does NOT contain all of the allowable bundle of rights of ownership and does NOT represent absolute, unconditional ownership forever.

A variation of a fee simple is a fee simple absolute, a type of fee simple in which there are no limitations upon the ownership rights other than the government powers.

The official name of the owner of a life estate is dower.

An estate pur autre vie is an ownership interest in real property for the life or lives of someone other than the owner of the life estate.