Interests in Land "Run with the Land

question 14

Multiple Choice

Interests in land "run with the land." This means that:

• A)All interests in land give the owner of that interest the right to exclusive possession
• B)The interest in land is tied to the property itself and is therefore binding on subsequent owners of the land
• C)The fee simple and life estate are types of freehold estates
• D)A leasehold estate is a type of freehold estate
• E)Contracts for interests in land are governed by the privity of contract rule (i.e., the contract affects only the parties to the contract)

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Definitions:

Ledgers

Financial records that contain a detailed account of all the financial transactions of a business.

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid out, not when they are earned or incurred.

Time Basis

A method of compensation or work arrangement based on the amount of time spent on a job rather than the task's outcome.