Zack,Virgil,and Craig,friends for Several Years and All Worried About the Alarming

question 57

Multiple Choice

Zack,Virgil,and Craig,friends for several years and all worried about the alarming rise in land prices,want to go in together and buy a four-acre parcel in the country.There is a small cabin on it.They hope that the land value will appreciate,and they want to sell it in a few years to help finance a house of their own.Read each of the following separately and indicate which is true with regard to their ownership of this property.

• A) If they do not indicate on the transfer documents the nature of the co-ownership, the law presumes they will take as joint tenants.
• B) In Canada, in strict legal terms, the only owner of land is the Crown, and if they buy land free and clear, they are only getting a life estate.
• C) Ownership of the fee simple does not guarantee their right to everything below the surface of their property.
• D) If they buy the land and do not take possession, in some provinces they could lose their right to claim possession, and their rights become a fee simple estate.
• E) Ownership of the property entitles them not only to the surface of the earth between the boundaries, but also to the infinite airspace above and everything below the surface of their property.

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Definitions:

Useful Life

The expected period over which an asset is anticipated to be economically usable by one or more users.

Double-Declining-Balance Method

An accelerated depreciation method that counts the depreciation of tangible assets at twice the normal rate.

Residual Value

The estimated value of an asset at the end of its useful life, often considered for depreciation purposes.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.