Mary Owns a Farm

question 39

Multiple Choice

Mary owns a farm. She has the right to use it for any legal purpose but must grow a certain quantity of wheat on it every year. If she fails to grow this quantity of wheat, her right to that land terminates. Which of the following interests in real property does Mary have?

• A) easement
• B) conditional estate
• C) life estate
• D) fee simple absolute

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Definitions:

Discounted

A reduction applied to the regular price of products or services, often used as an incentive for customers.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including principal and any accrued interest.

365-Day Year

A calendar assumption that treats each year as having 365 days for calculating interests or other daily based computations.

Leap Years

Years in which an extra day is added to the calendar (February 29) to keep the calendar year synchronized with the astronomical year.