Arizona Real Estate License FREE Arizona Real Estate License Property Interests and Ownership Questions and Answers 2 — Questions and Answers
Question 1: Under Arizona law, which type of ownership automatically transfers a deceased owner's share to the surviving owner(s) without probate?
- Joint tenancy with right of survivorship (Correct answer)
- Tenancy in common
- Community property
- Sole ownership
Correct answer: Joint tenancy with right of survivorship
Joint tenancy with right of survivorship passes the deceased tenant's interest directly to the surviving tenant(s), bypassing probate.
Question 2: A life estate measured by the life of someone other than the holder is called a:
- Life estate pur autre vie (Correct answer)
- Remainder estate
- Fee simple determinable
- Estate for years
Correct answer: Life estate pur autre vie
A life estate pur autre vie is measured by the life of a third party rather than the life of the estate holder.
Question 3: Which of the following best describes community property in Arizona?
- Property acquired by either spouse during marriage using marital funds (Correct answer)
- Property owned by a spouse before the marriage
- Property inherited by one spouse during the marriage
- Property gifted to one spouse by a third party
Correct answer: Property acquired by either spouse during marriage using marital funds
Arizona is a community property state where assets acquired during the marriage with marital earnings are owned equally by both spouses.
Question 4: An owner grants land to a church 'so long as it is used for religious purposes.' What type of estate has been created?
- Fee simple determinable (Correct answer)
- Fee simple subject to condition subsequent
- Fee simple absolute
- Life estate
Correct answer: Fee simple determinable
The phrase 'so long as' creates a fee simple determinable, which automatically reverts to the grantor if the condition is violated.
Question 5: Which statement is TRUE regarding a tenancy in common in Arizona?
- Each co-tenant may hold an unequal share of ownership (Correct answer)
- All co-tenants must acquire title at the same time
- A deceased co-tenant's share passes to the surviving co-tenants
- Co-tenants must be married to each other
Correct answer: Each co-tenant may hold an unequal share of ownership
Tenants in common may hold unequal fractional interests and are not required to acquire title simultaneously.
Question 6: What is a remainder interest in real property?
- A future interest that becomes possessory after a life estate ends (Correct answer)
- The right to reclaim property after a condition is broken
- An easement that runs with the land
- A leasehold interest lasting more than one year
Correct answer: A future interest that becomes possessory after a life estate ends
A remainder interest is a future estate that vests in a third party upon the natural termination of a prior life estate.
Arizona Real Estate License FREE Arizona Real Estate License Property Interests and Ownership Questions and Answers 2
Under Arizona law, which type of ownership automatically transfers a deceased owner's share to the surviving owner(s) without probate?