Real Estate Fundamentals - Chapter 6: Real Property Interests

1. 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.

True

False

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.

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.

2. 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.

True

False

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.

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.

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

True

False

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

Explanation

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

4. 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.

True

False

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"

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"

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

True

False

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.

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.

6. 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.

True

False

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

Explanation

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

7. 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.

True

False

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

Explanation

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

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

True

False

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

Explanation

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

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

True

False

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

Explanation

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

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

True

False

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

Explanation

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