Real Estate Montana final exam
The local utility company dug up Cameron's garden to install a natural gas line. The company claimed it
had a valid easement and proved it through the county records. Cameron claimed the easement was not
valid because he did not know about it. The easement - was valid even though the owner did not
know about it
Tommy owns 4.5 acres of land for which he paid $200,000. Ken owns the lot adjacent to Tommy; and
needs room to build a chicken shed on his property, and wants to buy a strip of Tommy's land measuring
250 feet by 100 feet. How much would Ken pay for this strip of land if Tommy sells it for the same price
he originally paid? (Round your answer to the nearest dollar.) - $25,500
Real estate is not a condominium unless the ___________ interests in the common areas are vested in
the unit owners. - undivided
A home is burning, with smoke billowing from the windows. The fire department arrives to manage the
fire and put it out, and the property owner stands in the driveway and prohibits the fire fighters from
entering the property. Is the property owner within his rights? - No, because the right of exclusion
is subject to the health and safety of the community
Harry purchased a 3 acre parcel in the Big Rive County. One day when he was walking his property, he
discovered a gigantic oil deposit. Does Harry own the oil rights - Yes, unless his purchase of the
property did not include the oil rights
personal property that, by its attachment to real property, is regarded as real estate is called - a
fixture
An object that is affixed to commercial property and used to generate income is called a - trade
fixture
real property given in a will is referred to as a - devise
,Joe and Kathy want to purchase a home in a neighborhood where they are familiar with the school
system, and know the teachers in the public school that their son will attend. Their interest in this type
of property is called - area preference
Real estate is considered to be immobile and indestructible. Another physical characteristic of all real
estate parcels is that they - are unique because no two parcels area is the same
What is the main purpose of police power - To protect the health, safety, and welfare of the
community.
Jack and Mona own a 10 acre parcel of property. Paul runs a rock quarry on 4 acres of the property, from
which he excavates and sells stone in all shapes and sizes. Paul keeps all profits from the sale of the
stone, and pays Jack and Mona an annual fee for the use of the land to get the equipment and trucks to
the quarry. With this arrangement, which is the likely scenario - Jack and Mona own the land, and
Paul owns the mineral rights
Many states determine the order of water rights by a "first-in-time-first-in-right" theory. The person or
entity who requests use of the water source first is granted water rights to the source. This theory is
called - the doctrine of prior appropriation
Billy Big Mouth inherits a home from his wealthy uncle, and decides to host a party and provide all
guests over the age of 21 with free booze. Eventually, the partiers get out of control, and the loud music
disturbs the neighbors. When the police arrive to tell Billy to turn the music down, and keep his guests
under control, Billy asserts that the property belongs to him, and he has the right to enjoy the property
in whatever way he chooses. He further asserts that since he enjoys loud music and boisterous guests,
he is simply exercising his right of enjoyment. Why is Billy incorrect in his assertion? - The bundle
of rights for property ownership does not include the right to disturb neighbors
Helga and Ron Slobbe own a salvage business. In an effort to save money on the lease of industrial
property to run their salvage yard, they move their salvage business to their home, and set up a salvage
yard in their front yard. Neighbors complain about the mess in the front yard, and the city threatens to
evict the Slobbes from their home, clean up the yard; and force them to reimburse the city for the cost
of the cleanup as a condition of moving back into the home. Can the city do this? - Yes, because
the Slobbes property right of possession is subject to the rules established by the city zoning laws
, If a person has complete control over their property, and the ownership in the property is not defeasible,
what interest does the person have in the property? - fee simple estate
Patricia held fee simple title to a vacant lot adjacent to Mt. Olive Church. She wanted to donate the lot to
Mt. Olive, and her attorney prepared a deed conveying all rights of the vacant lot to the church "...so
long as the lot is used for church-related purposes." After the completion of the gift, the church will own
a- determinable fee estate
A covenant that becomes part of the property rights and binds successive property owners is a covenant
that - runs with the land
Gabe was the owner of parcel A. By a deed dated February 12, Gabe conveyed parcel A "to Nephew for
the term of his life; and upon Nephew's death, to Charitable Organization #2. In this scenario, Charitable
Organization #2 has what kind of future interest in parcel A? - Charitable organization #2 has a
valid remainder interest in Parcel A
Individuals who own their primary residence property for at least two years, and sell it can realize a gain
of up to _____________ without any income tax liability. - $250,000
Steve and Nina bought a store building and took title as joint tenants. Nina died testate, and she willed
all of her property (including her interest in the store) to Phillip, her son. What result? - Steve
owns the store building in severalty, because a joint tenancy interest is not devisable
The principal benefit of joint tenancy is the right of - survivorship
A metes-and-bounds legal description - must commerce and finish at the same identifiable point
a strip of land six miles wide running North and South is called a - range
If section 16, T12N, R16W is a standard section what would the perimeter of it be? - 4 Miles
