Chapter 50 Real Property and Landlord-Tenant Relationships. All Answers

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N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Ban... k. = A question included in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS A1. The owner of real property has relatively exclusive rights to the airspace above the land. T PAGE: 975 TYPE: N NAT: AACSB Analytic AICPA Legal A2. The owner of a fee simple absolute has the right to use property for whatever purpose he or she sees fit. T PAGE: 976 TYPE: N NAT: AACSB Analytic AICPA Legal A3. Plant life is not considered to be real property. F PAGE: 976 TYPE: N NAT: AACSB Analytic AICPA Legal A4. Only two persons can hold property as tenants in common. F PAGE: 978 TYPE: = NAT: AACSB Analytic AICPA Legal A5. A tenancy by the entirety is created by a conveyance of all of a parcel of real property to a single tenant. F PAGE: 979 TYPE: N NAT: AACSB Analytic AICPA Legal A6. If property is owned as community property, a spouse owns an undivided one-half interest in it. T PAGE: 979 TYPE: = NAT: AACSB Analytic AICPA Legal A7. A fixed-term tenancy is created when a lease does not specify its duration. F PAGE: 979 TYPE: = NAT: AACSB Analytic AICPA Legal A8. A profit is the right to make limited use of another person’s real property without taking anything from the property. F PAGE: 980 TYPE: N NAT: AACSB Analytic AICPA Legal A9. The sale of real estate involves a transfer of ownership with no specific warranties—if there are warranties, the transfer is not a sale. F PAGE: 982 TYPE: N NAT: AACSB Analytic AICPA Legal A10. In most states, the seller of a new house warrants that it is fit for habitation even if the deed does not include such a warranty. T PAGE: 983 TYPE: + NAT: AACSB Analytic AICPA Legal A11. Metes and bounds is the traditional term for the negotiations that result in a transfer of real property. F PAGE: 984 TYPE: N NAT: AACSB Analytic AICPA Legal A12. A quitclaim deed conveys to the grantee whatever interest the grantor had. T PAGE: 985 TYPE: N NAT: AACSB Analytic AICPA Legal A13. A recording statute allows deeds to be recorded in the public record. T PAGE: 985 TYPE: N NAT: AACSB Analytic AICPA Legal A14. Eminent domain is the right of an owner in fee simple ab¬solute to use property to whomever he or she wishes. F PAGE: 988 TYPE: + NAT: AACSB Analytic AICPA Legal A15. Inverse condemnation occurs when an owner simply gives private property to the government without accepting any compensation. F PAGE: 990 TYPE: N NAT: AACSB Analytic AICPA Legal A16. Zoning laws manage the development and use of land. T PAGE: 991 TYPE: N NAT: AACSB Analytic AICPA Legal A17. Zoning restrictions are absolute. F PAGE: 992 TYPE: N NAT: AACSB Analytic AICPA Legal A18. Constructive eviction occurs when a tenant moves off the premises in re-taliation against the landlord. F PAGE: 993 TYPE: = NAT: AACSB Analytic AICPA Legal A19. A tenant can withhold rent for any reason. F PAGE: 995 TYPE: = NAT: AACSB Analytic AICPA Legal A20. Usually, a lease terminates when its terms ends. T PAGE: 995 TYPE: + NAT: AACSB Analytic AICPA Legal MULTIPLE CHOICE QUESTIONS A1. Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes a. the pond, the soil, and the structures. b. the pond and the soil only. c. the soil only. d. the structures and the soil only. A PAGE: 975 TYPE: = NAT: AACSB Reflective AICPA Legal A2. Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on the property. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes a. neither the crops nor the trees. b. the crops and the trees. c. the crops only. d. the trees only. B PAGE: 976 TYPE: = NAT: AACSB Reflective AICPA Legal Fact Pattern 50-1A (Questions A3–A4 apply) Nikita owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses. A3. Refer to Fact Pattern 50-1A. Nikita’s ownership interest is a. a fee simple absolute. b. a leasehold estate. c. a life estate. d. an easement. A PAGE: 976 TYPE: = NAT: AACSB Reflective AICPA Legal A4. Refer to Fact Pattern 50-1A. Nikita conveys some of her land to Reggie with the right to possess and use the property for a certain period of time. Nikita has given Reggie a. a fee simple absolute. b. a leasehold estate. c. a life estate. d. an easement. B PAGE: 979 TYPE: = NAT: AACSB Reflective AICPA Legal A5. Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of ether owner, that owner’s interest in the stock passes to the surviving owner. This is a. a joint tenancy. b. a life estate. c. a tenancy in common. d. ownership in fee simple absolute. A PAGE: 978 TYPE: N NAT: AACSB Reflective AICPA Legal A6. Buster conveys one square block in Center City “to Diana for life, then to Center City.” For Diana, this creates a. a fee simple absolute. b. a leasehold estate. c. a life estate. d. an easement. C PAGE: 978 TYPE: N NAT: AACSB Reflective AICPA Legal A7. Quito and Raul own a condo near San Francisco Bay as joint tenants. Raul sells his ownership rights in the condo to Timor. Quito and Timor own the condo as a. community property owners. b. joint tenants. c. tenants at sufferance. d. tenants in common. D PAGE: 978 TYPE: + NAT: AACSB Reflective AICPA Legal A8. LaDonna signs a one-year lease with Mae to occupy an apartment in Ames, Iowa, near the University of Iowa. LaDonna needs the apartment only for two semesters and may have to sublet it for the rest of the term. LaDonna’s tenancy is a. a periodic tenancy. b. a tenancy at will. c. a tenancy by the entirety. d. a fixed-term tenancy. D PAGE: 979 TYPE: + NAT: AACSB Reflective AICPA Legal A9. Glen, the owner of Harvest Farm, and Ima, the tenant of the farmhouse on the property, may create a fixed-term tenancy by a. deed. b. express contract. c. implication. d. sufferance. B PAGE: 979 TYPE: = NAT: AACSB Reflective AICPA Legal A10. Uberto and Vicki are married and own a mountain cabin in Wyoming in such a way that neither may transfer separately his or her interest during his or her lifetime. Uberto and Vicki own the lodge as a. community property owners. b. tenants at sufferance. c. tenants by the entirety. d. tenants in common. C PAGE: 979 TYPE: + NAT: AACSB Reflective AICPA Legal A11. Cow Country Corporation (CCC) sells half of its land to the Double R Ranch. On the land is a reservoir. In the deed, CCC retains the right to remove a lim¬ited amount of water per day from the res¬ervoir. This right is a. a leasehold estate. b. a license. c. an easement. d. a profit. D PAGE: 980 TYPE: = NAT: AACSB Reflective AICPA Legal A12. Mix-It Concrete Company has the right to enter Nim’s land and remove the rock from Nim’s quarry. This is a. a fee simple absolute. b. a license. c. an easement. d. a profit. D PAGE: 980 TYPE: = NAT: AACSB Reflective AICPA Legal A13. Region Construction Company has a right to drive its trucks across Staple Business, Inc.’s property, which is adjacent to Region’s office. This right is a. a leasehold estate. b. a license. c. an easement. d. a profit. C PAGE: 980 TYPE: = NAT: AACSB Reflective AICPA Legal A14. Tyro has the right to drive across Ula’s land, which is next to Tyro’s prop-erty, to reach an access road. Tyro’s right is a. an easement appurtenant. b. an easement in gross. c. a profit appurtenant. d. a profit in gross. A PAGE: 980 TYPE: = NAT: AACSB Reflective AICPA Legal A15. Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight. Gina’s right is a. a leasehold estate. b. a license. c. an easement. d. a profit. B PAGE: 981 TYPE: = NAT: AACSB Reflective AICPA Legal A16. Moby leases from National Theater Corporation a theater in which to stage a series of concerts. Ollie buys a ticket to the series. What distin¬guishes Moby, a tenant, from Ollie, a licensee, is a. the exclusivity of possession. b. the quiet enjoyment of rights. c. the temporary nature of possession. d. the title to the property. A PAGE: 981 TYPE: = NAT: AACSB Reflective AICPA Legal A17. Dora leases a house from Evan for a two-year term. To ensure the valid¬ity of their lease, it should include a. a description of the premises. b. a due date for the payment of the property taxes. c. a requirement that Dora perform structural repairs to the house. d. a requirement that Evan carry liability insurance. A PAGE: 993 TYPE: = NAT: AACSB Reflective AICPA Legal A18. Rita believes that Shady Grove Apartments, Inc., her landlord, has vio¬lated the law in a way that entitles her to withhold the rent. This remedy is gener-ally associated with a. breach of the covenant of quiet enjoyment. b. breach of the implied warranty of habitability. c. discrimination. d. failure to provide security against crimes in com¬mon areas. B PAGE: 995 TYPE: = NAT: AACSB Reflective AICPA Legal A19. Xavier owns a duplex that he leases to Yves and Zeb. Xavier may sell a. the duplex at any time. b. the duplex, but only after the lease expires and the tenants move out. c. the duplex, but only with the tenants’ permission. d. the lease, but not the duplex. A PAGE: 995 TYPE: = NAT: AACSB Reflective AICPA Legal A20. Hobby Farms, Inc., owns rural property that it leases to various tenants, including Ira. Ira’s transfer of his entire interest in the leased property to a Jason is a. an assignment. b. an eviction. c. a right of entry. d. a sublease. A PAGE: 995 TYPE: = NAT: AACSB Reflective AICPA Legal ESSAY QUESTIONS A1. Chrissy and Devon are not married to each other, but they share the ownership of Elm Street Offices, a commercial building. When they acquired the building, they agreed in writing that if one dies, the other in¬herits his or her interest. Are Chrissy and Devon concurrent owners? If so, in what type of concurrent ownership are their rights held? If not, how is their ownership classified? Fagin leases an office in the Elm Street building for a one-year term. If Fagin moves out before the end of the term of the lease, what hap-pens to the leased property? A2. Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under a written lease with a twenty-year term, rent payable an-nually. The lease includes a clause stating that Burgertown is re¬sponsi¬ble for making all necessary repairs, including rebuilding the structure after its destruction by any cause beyond Andy’s control. The lease does not include a clause concerning its assignment. One day after the tenth rental payment, Burgertown, without Andy’s knowledge or consent, as¬signs its interest in the lease to Chicken Hut Restaurants, Inc. Mean¬while, Andy dies and Dotty inherits Andy’s interest in the building. Without the knowledge or consent of either Burgertown or Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a suit against Earnest for the expense. Earnest responds that the lease has terminated. Is Earnest correct? If so, when did the lease termi¬nate? If not, is Earnest liable for the cost of re-building the structure? Why or why not? [Show More]

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