What this section covers: Forms of ownership and estates, Leasehold estates and types of leases, Liens and lien priority, Deeds, transfer of title, recording and title insurance.
5 free practice questions
Click an answer: you see at once whether it is right, with the explanation.
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Question 1Which estate gives the most complete ownership recognized by law, with no conditions and no time limit?
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Answer: A — Fee simple absolute.
Fee simple absolute is the highest form of ownership: it is unlimited in time, can be sold or inherited, and carries the full bundle of rights subject only to government powers and private restrictions.
Checked against: National outline II.A.2.a Fee simple absolute
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Question 2A tenant's lease expired, the landlord has not agreed to an extension, and the tenant stays on. The tenant holds an:
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Answer: B — Estate at sufferance.
An estate (tenancy) at sufferance exists when a tenant who once had lawful possession holds over without the landlord's consent. If the landlord accepts rent, a periodic tenancy may be created instead.
Checked against: National outline II.A.3.b Estate at will and estate at sufferance
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Question 3Which deed gives the buyer the greatest protection?
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Answer: C — General warranty deed.
A general warranty deed contains the grantor's covenants (such as seisin, quiet enjoyment and against encumbrances) and warrants title against defects arising at any time, not only during the grantor's ownership.
Checked against: National outline II.B.2 Types of deeds
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Question 4A deed is recorded in the county records. Anyone who later buys the property is treated as knowing about it even if they never looked. This is called:
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Answer: D — Constructive notice.
Recording gives constructive notice: the law presumes everyone knows what is in the public records. Actual notice is what a person really knows, saw or was told.
Checked against: National outline II.B.4.a Constructive and actual notice
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Question 5Which lien usually takes priority over all others, even those recorded earlier?
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Answer: A — A real property tax lien.
General and special real property tax liens usually come first regardless of when they arose. Other liens are generally ranked by the date they were recorded (first in time, first in right), with exceptions set by state law.
Checked against: National outline II.A.4 Liens and lien priority
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