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Flashcards in Module 3 Quiz Deck (11)
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1
Q

Jeffrey cuts hair in an upscale salon in the downtown area. The shop occupies the main floor and there are several apartments on the second level. The entire building is owned by an out of town landlord. Recently, a
tenant moved out and an apartment was available for much less than the going rate of comparable rentals. Jeffrey acted quickly and signed a two-year lease. He relisted the apartment at a higher rent to a new tenant,
Angela. The leasehold estate is best described as:

A) Jeffrey’s lease is assigned to Angela.
B) Angela has an estate at sufferance.
C) leased to Angela.
D) subleased to Angela.

A

D) subleased to Angela.

2
Q

A developer funded the construction of 17,000 square feet retail space located on a busy intersection. The developer leased the entire area to JFinds Retail Store. JFinds has agreed to rent 2,000 square feet within the
store to a coffee shop for their customers’ convenience. What types of estates and interests do these three parties have?

A) The developer has a freehold estate with a leased fee interest, JFinds has a leasehold estate, and the coffee shop has a subleasehold estate.

B) The developer and JFinds have leased fee interests and the coffee shop has a leasehold estate.

C) All three parties have leasehold estates.

D) The developer has a leasehold estate with a leased fee interest, JFinds and the coffee shop both have leasehold estates.

A

A) The developer has a freehold estate with a leased fee interest, JFinds has a leasehold estate, and the coffee shop has a subleasehold estate.

3
Q

Matt recently gained title to his late grandfather’s 3unit
commercial building in the downtown area. All three units are leased to Landmark Enterprises for the next seven years. One of the units is currently subleased to a pizza chain while the other two are subleased as a
combined resale clothing store. In light of the leases, who is considered to be the owner of the property?

A) Matt, who is the landlord and has a leased fee interest in the property
B) the grandfather’s estate
C) the pizzeria and the resale clothing store which possess a subleasehold interest in the property
D) Landmark Enterprises, which possesses a leasehold interest in the property

A

A) Matt, who is the landlord and has a leased fee interest in the property

4
Q

Sheena and Nathaniel occupied their apartment for the last three and a half years. They originally signed a lease agreement for a period of two years. Over the last year, their apartment has experienced problems including a defective furnace, the presence of mold, and a broken
refrigerator. The couple is concerned about the safety of their young son and the landlord has been slow to repair problems with the apartment in the past. Can the couple give notice and move out now without violating their lease?

A) No, the couple cannot move without violating their lease agreement. The original estate at will was a two-year agreement. Once, the couple’s original two years expired, the lease would have renewed for another two years because they did not intend to move at that time.

B) Yes, the couple can move because their original estate at will would have required them to have signed a new lease for it to extend beyond two years.

C) Yes, the couple can move because their original estate for years would have required them to have signed a new lease after two years.

D) No, the couple cannot move without violating their lease agreement. The original estate for years was a two-year agreement. Once the couple’s original two years expired, the lease renewed for another two years because
they did not intend to move at that time.

A

C) Yes, the couple can move because their original estate for years would have required them to have signed a new lease after two years.

5
Q

Frederick family owns a cash crop farm that includes a farmhouse, outbuildings, and 1,200 acres of crop fields. The family recently sold the farmhouse with 5 acres to a buyer but retained an easement appurtenant over the farmhouse site to allow access to the farm buildings and
croplands which the Frederick’s retained. In reference to the easement, what type of estate does the new owner of the farmhouse property have?

A) an estate at sufferance
B) a dominant estate
C) an estate at will
D) a servient estate

A

D) a servient estate

6
Q

Travis recently purchased a seven acre parcel with a large steel building. He plans to construct a new home, but he is using the building to store his boats until then. In late August, Justin, a flea market vendor, noticed Travis on the site and pulled in to ask when he could start setting up. After Travis questioned him further, he learned that Justin had a license from the previous owner to host a flea market every fall. Travis does not wish to move his boats or host such an event. Does the license bind him to allow Justin temporary access?

A) Travis is not required to allow Justin and the other vendors access to the land.

B) Justin’s ability to gain access depends on the expiration date of his license. Travis should contact his local courthouse to verify the validity of the license before he permits the flea market to occur illegally.

C) The license provides Justin access to the land and buildings. As the boats are personal property, they should be moved for insurance purposes.

D) The license provides access to the land only. Justin and the other vendors can set up outdoors, but the steel building is Travis’s property and therefore off limits.

A

A) Travis is not required to allow Justin and the other vendors access to the land.

7
Q

Theresa and Brian purchased a lot on Third Street in Harrisburg. The lot, at the time of sale, was 150 feet x 150 feet. A copy of the plat was supplied to the new owners. Theresa noticed a 10 foot utility easement at
the rear of the site for the city to maintain an electrical service. She is concerned the smaller lot size will affect her value. She has consulted an appraiser who should inform her

A) The easement does not pass from the builder to the buyers. The new owners will need to adjust the terms with the city.

B) The easement appurtenant will negatively affect the resale of their property because the utility access makes their property a servient estate.

C) The lot size is still the same. The city has an easement in gross to allow access to the rear of the property. Properties with similar easements may be evaluated.

D) There may be a change in value. Local land sales with lots measuring 140 x 150 will have to be evaluated

A

C) The lot size is still the same. The city has an easement in gross to allow access to the rear of the property. Properties with similar easements may be evaluated.

8
Q

Which of the following statements is correct?

A) All liens are encumbrances; not all encumbrances are liens.
B) Not all liens are encumbrances; not all encumbrances are liens.
C) All encumbrances are liens; all liens are encumbrances.
D) All encumbrances are liens; not all liens are encumbrances.

A

A) All liens are encumbrances; not all encumbrances are liens.

9
Q

All liens are encumbrances, but not all encumbrances are liens.
True or False

A

True

10
Q
Who owns an "easement in gross?"
A) a corporation or government entity
B) the property owner
C) the tenant
D) the public
A

A) a corporation or government entity

11
Q

Restrictions affect the owner’s right to use the property rather than the owner’s right to sell.
True or False?

A

True