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UT Real Estate practice questions

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Question 1Agency Relationships and Fiduciary Duties

A listing agent wants to purchase the seller-client's property for the agent's own account. Which fiduciary duty is most directly implicated by this plan?

  1. Loyalty Correct answer.
  2. Obedience
  3. Confidentiality
  4. Accounting

Explanation

The duty of loyalty requires an agent to place the client's interests ahead of the agent's own and to avoid self-dealing. An agent who wishes to buy a client's property must make full disclosure and obtain informed consent, and many brokerages prohibit the practice outright.

Question 2Agency Relationships and Fiduciary Duties

Under Utah law, which of the following by itself creates an agency relationship with a buyer?

  1. A statement of the asking price
  2. Receiving automated listing alerts
  3. A signed written buyer agency agreement Correct answer.
  4. A single showing of a home

Explanation

Utah requires an agency relationship to be established by a written agreement signed by the client. Casual services such as sending listings or showing a property do not, standing alone, create agency.

Question 3Agency Relationships and Fiduciary Duties

After a representation agreement ends, which duty generally continues with respect to information the client shared during the representation?

  1. Obedience
  2. Confidentiality Correct answer.
  3. Care
  4. Accounting

Explanation

The duty of confidentiality survives termination of the agency relationship and continues to protect information the client disclosed during representation. The other fiduciary duties generally end when the representation ends.

Question 4Agency Relationships and Fiduciary Duties

At what point must a licensee disclose the type of agency relationship to a prospective client?

  1. At the closing table
  2. Only when the client asks
  3. Before any binding agreement Correct answer.
  4. After an offer is accepted

Explanation

A licensee must disclose the type of agency relationship at the earliest practicable opportunity and before the client signs a binding agreement. The disclosure must be in writing and acknowledged by the client.

Question 5Agency Relationships and Fiduciary Duties

Utah law permits a licensee to act as a limited agent for both buyer and seller only if:

  1. both parties consent in writing Correct answer.
  2. the licensee stays neutral in talks
  3. the price exceeds the list price
  4. the listing broker agrees verbally

Explanation

Limited agency, Utah's form of dual agency, requires the informed written consent of both the buyer and the seller. Without that written consent, the licensee may not represent both sides of the transaction.

Question 6Agency Relationships and Fiduciary Duties

A property manager receives a tenant's security deposit on behalf of the owner-client. Which duty requires the funds to be placed in a trust account and not mixed with the agent's personal funds?

  1. Accounting Correct answer.
  2. Loyalty
  3. Disclosure
  4. Obedience

Explanation

The duty of accounting requires an agent to safeguard client funds, keep them separate from personal or operating funds, and provide an accurate accounting. Mixing client money with the agent's own money is commingling and is prohibited.

Question 7Agency Relationships and Fiduciary Duties

In a brokerage that uses designated agency, who represents the buyer when two different licensees in the same brokerage represent the buyer and seller?

  1. The whole brokerage as a limited agent
  2. The designated buyer's agent Correct answer.
  3. No licensee in the firm
  4. The managing broker

Explanation

Designated agency allows one licensee in a brokerage to represent the buyer while another licensee in the same firm represents the seller. Each party is represented by the specifically designated licensee, and the brokerage is not automatically a dual agent.

Question 8Agency Relationships and Fiduciary Duties

A buyer's agent may accept compensation from the seller or listing broker if:

  1. the buyer consents after full disclosure Correct answer.
  2. the buyer pays a higher price than listed
  3. the agent keeps the arrangement secret from the buyer
  4. the commission exceeds the listing rate

Explanation

A buyer's agent may receive compensation from the seller or listing broker only with the buyer's knowledge and consent after full disclosure. Undisclosed compensation creates a conflict of interest and breaches the duty of loyalty.

Question 9Agency Relationships and Fiduciary Duties

A person who is shown a property by a listing agent but has no agency agreement with that agent is best described as:

  1. a principal
  2. a client
  3. a subagent
  4. a customer Correct answer.

Explanation

A customer is a person who receives services from a licensee but is not represented by that licensee. A client is a party who has an agency relationship with the licensee, and a principal is the party who grants authority to an agent.

Question 10Agency Relationships and Fiduciary Duties

A seller instructs the listing agent to reject all offers below a stated price. The agent believes a lower offer is in the seller's best interest. What should the agent do?

  1. Reject the instruction and present the lower offer as a counterproposal
  2. Withdraw from the listing without telling the seller
  3. Ignore the instruction and accept the lower offer
  4. Follow the lawful instruction and present all offers to the seller Correct answer.

Explanation

The duty of obedience requires the agent to follow the client's lawful instructions, and the agent must still present all offers to the seller. The agent may advise the seller to reconsider, but the decision belongs to the seller.

Question 11Agency Relationships and Fiduciary Duties

An agent learns that the seller-client is facing foreclosure and is highly motivated. The agent represents the seller. May the agent share this with the buyer?

  1. Yes, because motivation is not confidential
  2. Yes, if the buyer asks directly
  3. No, unless the seller is present
  4. No, because it is confidential client information Correct answer.

Explanation

The seller's financial pressure and motivation are confidential client information that the agent may not disclose to the buyer without the seller's consent. Sharing it would undermine the seller's negotiating position and breach confidentiality and loyalty.

Question 12Agency Relationships and Fiduciary Duties

Which event will terminate a written agency agreement before its stated expiration date?

  1. The agent takes a vacation
  2. The seller revokes the agency in writing Correct answer.
  3. The buyer obtains preapproval
  4. The listing price is reduced

Explanation

Revocation by the client terminates the agency relationship, although it may give rise to a claim for damages if the revocation breaches the agreement. Vacation, preapproval, and price changes do not end the agency.

Question 13Agency Relationships and Fiduciary Duties

A licensee who represents the seller privately agrees to help the buyer negotiate a lower price without telling the seller. This conduct is best characterized as:

  1. lawful buyer advocacy
  2. permitted if the buyer pays no commission
  3. a harmless conflict of interest
  4. undisclosed dual agency and a breach of loyalty Correct answer.

Explanation

Helping the buyer against the seller's interests while representing the seller creates an undisclosed dual agency and breaches loyalty. Dual representation requires written informed consent from both parties, which was not obtained.

Question 14Agency Relationships and Fiduciary Duties

An agent recommends a home inspector without verifying licensing or insurance and the client suffers a loss. Which duty is most directly at issue?

  1. Accounting
  2. Confidentiality
  3. Obedience
  4. Care Correct answer.

Explanation

The duty of care requires the agent to exercise reasonable skill and diligence, which includes making reasonable efforts to verify the competence of professionals the agent recommends. Failing to do so can expose the agent to liability for negligence.

Question 15Agency Relationships and Fiduciary Duties

A Utah agency agreement must include which of the following to be enforceable?

  1. A fixed commission of exactly six percent
  2. A clause waiving the client's right to confidentiality
  3. A promise by the agent to buy the property if unsold
  4. A definite termination date Correct answer.

Explanation

Utah requires an agency agreement to be in writing, signed by the client, and to state a definite termination date. The agreement may not include an automatic renewal or an indefinite term.

Question 16Agency Relationships and Fiduciary Duties

Which statement about agency creation in Utah is correct?

  1. Agency requires a signed written agreement Correct answer.
  2. Agency can be created only by a court order
  3. An oral agreement is always sufficient for a listing
  4. Agency is presumed when a licensee returns a buyer's call

Explanation

Utah law requires agency relationships to be established in writing and signed by the client. Returning a phone call, showing a property, or providing information does not by itself create representation.

Question 17Agency Relationships and Fiduciary Duties

Which duty requires an agent to put the client's interests ahead of the agent's own?

  1. Loyalty Correct answer.
  2. Care
  3. Disclosure
  4. Accounting

Explanation

Loyalty is the fiduciary duty that obligates the agent to prioritize the client's interests and avoid conflicts of interest or self-dealing. The other duties address recordkeeping, diligence, and communication.

Question 18Agency Relationships and Fiduciary Duties

When a buyer works with an agent who is not the listing agent, the buyer's agent generally:

  1. represents the seller and buyer equally
  2. owes no duties to either party
  3. automatically becomes the seller's subagent
  4. owes fiduciary duties to the buyer Correct answer.

Explanation

A buyer's agent represents the buyer under a buyer agency agreement and owes fiduciary duties to the buyer. The agent does not automatically become the seller's subagent or a dual agent.

Question 19Agency Relationships and Fiduciary Duties

A licensee switches from representing a seller to representing a buyer in the same transaction without written consent. This is:

  1. allowed if the licensee discloses after closing
  2. a breach of loyalty and an undisclosed dual agency Correct answer.
  3. a standard co-broker arrangement
  4. permitted if the seller never asks

Explanation

Changing sides in the same transaction without the written informed consent of both parties creates an undisclosed dual agency and breaches the duty of loyalty. Disclosure after closing does not cure the conflict.

Question 20Agency Relationships and Fiduciary Duties

An agent representing a seller discovers a latent defect in the property. The seller refuses to disclose it. What is the agent's best course?

  1. Urge disclosure and consult the broker about withdrawal Correct answer.
  2. Resign confidentiality and disclose to the buyer without telling the seller
  3. Disclose only if the buyer asks
  4. Keep quiet because the agent owes confidentiality

Explanation

The agent must not participate in concealing a material defect and should urge the seller to disclose it. If the seller refuses, the agent should consult the managing broker about the brokerage's policy and legal options, which may include withdrawing from the representation.

Question 21Agency Relationships and Fiduciary Duties

A buyer-client signs a 90-day exclusive buyer agency agreement. On day 30 the buyer purchases a home the agent showed them, after ending the relationship. Is the agent likely entitled to compensation?

  1. No, because the buyer found the home without the agent
  2. Yes, if the agreement covers properties already shown Correct answer.
  3. Yes, only if the seller agrees to pay
  4. No, because the buyer terminated the relationship

Explanation

An exclusive buyer agency agreement commonly provides for compensation during its term for properties shown to the buyer, even if the buyer later terminates the relationship. The agent's entitlement depends on the agreement's terms and procuring cause.

Question 22Agency Relationships and Fiduciary Duties

A sales agent's acts within the scope of authority bind the broker because:

  1. the broker is the principal and the agent acts for the broker Correct answer.
  2. the client employs the sales agent directly
  3. commissions are split equally
  4. the sales agent is an independent contractor

Explanation

A sales agent acts on behalf of the supervising broker, who is the principal for the brokerage's agency relationships. Acts within the sales agent's authority therefore bind the broker and the brokerage.

Question 23Agency Relationships and Fiduciary Duties

In a limited agency, the licensee may not:

  1. attend the home inspection
  2. prepare a comparative market analysis
  3. show the property to both parties
  4. reveal one party's confidential motivation Correct answer.

Explanation

Even in a limited agency, the licensee must keep each party's confidential information confidential and may not use it to the disadvantage of the other party. The licensee may perform neutral services such as showings, analyses, and inspections.

Question 24Agency Relationships and Fiduciary Duties

A sales agent's fiduciary duties in a transaction run to:

  1. the client, through the broker Correct answer.
  2. the lender
  3. the MLS
  4. the broker only

Explanation

The brokerage, through its broker and sales agents, owes fiduciary duties to the client who signed the agency agreement. The MLS and lender are not parties to the agency relationship.

Question 25Contracts and Contract Law

Which of these agreements must generally be evidenced by a writing signed by the party to be charged in order to be enforceable under the statute of frauds?

  1. A one-week rental of a furnished vacation cottage
  2. An oral agreement to buy a used office chair
  3. A contract to paint a house for a fixed fee
  4. A contract for the sale of a house Correct answer.

Explanation

The statute of frauds requires certain agreements, including a contract for the sale of an interest in real property, to be evidenced by a writing signed by the party to be charged. Sales of ordinary personal property, short-term rentals, and service contracts generally fall outside that land-sale requirement.

Question 26Contracts and Contract Law

A seller emails a buyer: "I will sell you my duplex for $300,000, closing in 30 days." The buyer replies: "I accept, but closing must be in 45 days." What is the legal effect of the buyer's reply?

  1. It forms a binding contract on the seller's original terms
  2. It forms a contract that a court will later reform
  3. It is a counteroffer that rejects the original offer Correct answer.
  4. It is an acceptance, because the change is unimportant

Explanation

Under the mirror image rule, an acceptance must match the offer exactly. A purported acceptance that alters a term operates as a counteroffer and simultaneously terminates the original offer, leaving the seller free to accept, reject, or counter.

Question 27Contracts and Contract Law

Which of these promises is supported by valid consideration?

  1. A promise to give a nephew $10,000 out of affection
  2. A promise to pay for services rendered years ago with no new request
  3. A promise to pay $20,000 for the seller's promise to convey a lot Correct answer.
  4. A promise to pay a contractor extra for work the contractor already owes

Explanation

Consideration is a bargained-for exchange of legal value, and a promise to pay money in return for a promise to convey land supplies it on both sides. Gift promises, past consideration, and promises to do what one is already legally bound to do are not consideration.

Question 28Contracts and Contract Law

An offeror mails a revocation of an offer on Monday. The offeree, who has not yet accepted, receives it on Wednesday. When does the revocation take effect?

  1. On Wednesday, when the offeree receives it Correct answer.
  2. On Tuesday, while the revocation is in transit
  3. It never takes effect once the offer has been made
  4. On Monday, when the revocation is mailed

Explanation

Unlike an acceptance, a revocation is effective only when it is received by the offeree. An offeree who accepts before the revocation arrives has formed a contract, even if the revocation was already in the mail.

Question 29Contracts and Contract Law

A residential sale contract provides that if the buyer defaults, the seller keeps the $10,000 earnest money as the seller's sole remedy. Such a clause is best described as:

  1. a condition precedent to the seller's duty to convey
  2. a liquidated damages provision if it is a reasonable forecast of loss Correct answer.
  3. an unenforceable penalty because damages are fixed in advance
  4. an option contract revocable by the buyer at will

Explanation

A clause fixing damages in advance is enforceable as liquidated damages when the amount reasonably forecasts likely loss and actual loss is difficult to estimate. If the amount is grossly disproportionate to the expected harm, it is instead an unenforceable penalty.

Question 30Contracts and Contract Law

Why are courts more willing to order specific performance of a contract to sell a house than of a contract to sell ordinary goods?

  1. Because sellers of homes are usually wealthier defendants
  2. Because buyers of homes waive the right to money damages
  3. Because real estate contracts are exempt from the statute of frauds
  4. Because each parcel of land is legally treated as unique Correct answer.

Explanation

Land is treated as unique, so money damages are an inadequate substitute for the promised conveyance. Courts therefore grant specific performance of land sale contracts far more readily than for ordinary goods, which are presumed replaceable.

Question 31Contracts and Contract Law

A seller sends a buyer a written offer stating, "If I do not hear from you by Friday, I will treat your silence as acceptance." The buyer reads the offer and says nothing. Friday passes. What is the result?

  1. A contract exists because the offer invited silence as acceptance
  2. No contract exists, because silence is not acceptance Correct answer.
  3. A contract exists once the buyer has read the offer
  4. A contract exists only if the buyer later takes possession

Explanation

As a general rule, an offeror cannot turn silence into acceptance simply by saying so. Silence counts as acceptance only where the parties have previously agreed to that arrangement or a course of dealing makes it reasonable for the offeror to expect a reply.

Question 32Contracts and Contract Law

A buyer mails an acceptance of a real estate offer on March 1, and the seller receives it on March 4. There is no option contract, and the offer does not state otherwise. On what date is the contract generally formed?

  1. The date the seller signs the deed
  2. March 1, when the acceptance is dispatched Correct answer.
  3. March 4, when the seller receives the acceptance
  4. The date set for closing in the contract

Explanation

Under the mailbox rule, a properly dispatched acceptance is effective when sent rather than when received, unless the offer says otherwise or an option contract is involved. The contract therefore forms on dispatch even though the seller learns of it later.

Question 33Contracts and Contract Law

A developer pays a landowner $5,000 for the right to buy a parcel for $400,000 at any time within 90 days. During that period the landowner announces that the offer is withdrawn. Which statement is correct?

  1. The landowner may not revoke, because the option was paid for Correct answer.
  2. The landowner may revoke if a higher offer arrives
  3. The landowner may revoke the offer at any time before the closing date
  4. The landowner may revoke only after giving 30 days' notice

Explanation

An option is a promise not to revoke that is supported by separate consideration. Once the optionee has paid for the right, the offeror cannot withdraw the offer during the option period, and a higher offer from a third party changes nothing.

Question 34Contracts and Contract Law

A buyer under a signed sale contract tells the seller in writing, "I will not be closing; I am walking away," three weeks before closing. The seller may:

  1. do nothing and simply wait for the closing date
  2. sue only after the closing date has passed
  3. cancel the contract but keep no remedy against the buyer
  4. treat the statement as a breach and sue immediately Correct answer.

Explanation

An unequivocal statement that a party will not perform before performance is due is an anticipatory repudiation. The nonbreaching party may treat the contract as breached at once, sue immediately, or wait for the performance date.

Question 35Contracts and Contract Law

A sale contract provides that the buyer's obligation to close is "subject to the buyer obtaining a mortgage commitment within 21 days." This language creates:

  1. a covenant the seller may waive unilaterally
  2. a liquidated damages clause
  3. a condition precedent to the buyer's duty to close Correct answer.
  4. a condition subsequent that ends an existing duty

Explanation

A condition precedent is an event that must occur before a party's duty to perform becomes enforceable. The mortgage commitment must be obtained within the stated period before the buyer is obligated to close.

Question 36Contracts and Contract Law

A landlord assigns the right to receive the monthly rent under a lease to a bank. Which statement is correct?

  1. The assignment is void unless the tenant consents
  2. The assignment transfers the right to the rent to the bank Correct answer.
  3. The assignment transfers the landlord's maintenance duties to the bank
  4. The assignment terminates the tenant's lease

Explanation

Contract rights are generally assignable, so assigning the right to rent shifts that payment right to the assignee. Duties are delegated rather than assigned, and a delegation does not by itself end the tenant's lease or require tenant consent.

Question 37Contracts and Contract Law

A buyer transfers her interest in a sale contract to a new buyer, and the seller agrees to release the original buyer and accept the new buyer in her place. This arrangement is:

  1. a delegation of duties only
  2. an assignment of rights only
  3. a subordination agreement
  4. a novation Correct answer.

Explanation

A novation substitutes a new party for an original one with the consent of all parties, extinguishing the original obligation. A mere assignment or delegation would leave the original buyer still liable to the seller.

Question 38Contracts and Contract Law

A buyer contracts with a builder to construct a house on land that the buyer will convey to her daughter at closing, and the contract states the daughter will receive title. The daughter is:

  1. a delegator of the buyer's duties
  2. a stranger to the contract with no enforceable rights
  3. an intended third-party beneficiary who may enforce the contract Correct answer.
  4. an assignee who must first notify the builder

Explanation

An intended beneficiary is one the contracting parties intended to benefit, and such a beneficiary may enforce the contract. Naming the daughter as the party to receive title shows that intent.

Question 39Contracts and Contract Law

A written sale contract states that it is the complete agreement of the parties. At trial, the buyer seeks to introduce an earlier oral promise by the seller to include the appliances. Under the parol evidence rule, that evidence is generally:

  1. inadmissible because it contradicts a fully integrated writing Correct answer.
  2. admissible because real estate contracts are exempt from the rule
  3. admissible because oral promises always survive a written contract
  4. admissible only if the buyer testifies before the seller

Explanation

The parol evidence rule bars prior or contemporaneous statements that contradict or vary a fully integrated written agreement. A clause stating that the writing is the complete agreement triggers the rule and excludes the earlier oral promise.

Question 40Contracts and Contract Law

Both parties to a sale contract believe the parcel contains 20 acres, but a survey shows 12 acres and neither party caused the error. The buyer most likely may:

  1. recover punitive damages from the seller
  2. do nothing, because mistakes never affect a contract
  3. force the seller to convey 20 acres anyway
  4. seek rescission because of a mutual mistake of material fact Correct answer.

Explanation

A mutual mistake about a basic, material fact underlying the bargain, such as the size of the parcel, allows the disadvantaged party to rescind. Neither party needs to be at fault for rescission to be available.

Question 41Contracts and Contract Law

A contract to sell a specific commercial building becomes impossible to perform when the building is destroyed by fire before closing, without fault of either party. The seller's duty to convey is:

  1. suspended until the seller rebuilds the building
  2. discharged, because the subject matter no longer exists Correct answer.
  3. discharged only if the seller carried fire insurance
  4. unchanged, because the contract was already signed

Explanation

When the specific subject matter of a contract is destroyed without fault of either party, performance is excused by impossibility. Insurance may shift the economic loss but does not revive a duty to convey a building that no longer exists.

Question 42Contracts and Contract Law

A sale contract states that "time is of the essence" and sets closing for June 1. The buyer tenders performance on June 10 without any excuse. The seller may:

  1. not object unless the seller can show actual harm
  2. keep the earnest money but still convey title
  3. not object, because closing dates are never strictly enforced
  4. treat the late tender as a material breach and terminate Correct answer.

Explanation

A time-is-of-the-essence clause makes timely performance a material term of the contract. An unjustified late tender can therefore be treated as a breach that allows the seller to terminate and pursue remedies.

Question 43Contracts and Contract Law

The buyer breaches a sale contract, and the seller relists the property but rejects a full-price offer, later selling for less. In the seller's suit for damages, the seller's recovery will likely be:

  1. increased because the buyer caused the loss
  2. unaffected by the rejected offer
  3. reduced, because the seller failed to mitigate damages Correct answer.
  4. limited to the amount of the earnest money

Explanation

A nonbreaching party must take reasonable steps to avoid or reduce the loss caused by the breach. Turning down a full-price offer after the breach is a failure to mitigate, which reduces the damages the seller can recover.

Question 44Contracts and Contract Law

A court sets aside a sale contract because the terms were extremely one-sided and the buyer, who speaks little English, was rushed to sign without explanation. The court's ruling rests on:

  1. a novation that released the original parties
  2. commercial impracticability caused by market shifts
  3. unconscionability, combining unfair terms with unfair bargaining Correct answer.
  4. anticipatory repudiation by the seller

Explanation

Unconscionability requires both a procedurally unfair bargaining process and substantively oppressive terms. The rushed, unexplained signing supplies the procedural element, and the one-sided terms supply the substantive element.

Question 45Contracts and Contract Law

A seller tells a buyer, "This roof is brand new," knowing it leaks badly, and the buyer relies on that statement in agreeing to buy. To recover for fraudulent misrepresentation, the buyer must show:

  1. a material false statement knowingly made and justifiably relied on Correct answer.
  2. only that the statement turned out to be inaccurate
  3. that the contract had no liquidated damages clause
  4. that the seller earned a commission on the sale

Explanation

Fraud requires a false statement of material fact, knowledge of falsity or reckless disregard for the truth, intent to induce reliance, justifiable reliance, and resulting damage. An honest but inaccurate statement, without the required knowledge, would support at most a different claim.

Question 46Contracts and Contract Law

A buyer threatens to report a seller's undocumented worker to immigration authorities unless the seller reduces the price, and the seller signs the reduced contract. The seller may seek rescission on grounds of:

  1. duress, because the threat induced the agreement Correct answer.
  2. unilateral mistake by the buyer
  3. mutual mistake about the price term
  4. frustration of purpose

Explanation

Duress is a wrongful threat that leaves the victim no reasonable alternative and induces assent. A threat to report immigration status in order to extract a price concession is coercive pressure that supports rescission.

Question 47Contracts and Contract Law

An oral agreement to sell land is normally unenforceable, but a buyer who paid the price, took possession, and made substantial improvements may enforce it under:

  1. the part performance doctrine Correct answer.
  2. the doctrine of anticipatory repudiation
  3. the mailbox rule
  4. the parol evidence rule

Explanation

The part performance doctrine removes an oral land contract from the statute of frauds when the buyer's conduct demonstrates that a contract exists and nonenforcement would work an injustice. Payment, possession, and substantial improvements are the classic indicia of part performance.

Question 48Contracts and Contract Law

A developer and a landowner sign a letter of intent stating that they "will negotiate in good faith toward a definitive purchase agreement" and that either party may walk away. Before the definitive agreement is signed, a dispute arises. A court will most likely hold that:

  1. the letter is a binding option to purchase the land
  2. no contract exists, because the parties did not intend to be bound Correct answer.
  3. the letter is enforceable because both parties signed it
  4. the letter is an enforceable contract because good faith is implied

Explanation

An agreement to negotiate future terms is generally unenforceable when material terms remain open and the parties expressly reserve the right to withdraw. Here the walk-away language negates any intent to be bound before a definitive agreement is signed.

Question 49Real Property Ownership, Interests, and Descriptions

A deed conveys Blackacre 'to Ann and her heirs' with no conditions or limitations. What estate does Ann hold?

  1. Life estate
  2. Fee simple determinable
  3. Fee simple absolute Correct answer.
  4. Estate for years

Explanation

Fee simple absolute is the largest estate recognized: it lasts indefinitely, is freely inheritable, and carries no condition that could cut it short. The traditional phrase 'and her heirs' signaled that an inheritable estate was intended.

Question 50Real Property Ownership, Interests, and Descriptions

A grantor conveys Blackacre 'to Beth for life, then to Carl.' While Beth is alive, what interest does Carl hold?

  1. A leasehold estate
  2. A remainder Correct answer.
  3. A life estate pur autre vie
  4. A reversion

Explanation

A remainder is a future interest created in someone other than the grantor that becomes possessory when the preceding estate ends. Carl's interest was created in the same instrument as Beth's life estate and will ripen into possession at her death.