Mario Bought a Small House in Nelson and Was Puzzled

question 118

Multiple Choice

Mario bought a small house in Nelson and was puzzled when he saw the conveyancing documents, which referred to a transfer of a "fee simple." The following statements were made to him to explain the term. Which is correct?

• A) Technically, only the Crown owns the land, but the fee simple interest is the greatest bundle of rights, other than the Crown's, a person can own.
• B) The owner of the fee simple has the right to exclusive possession of the land until his death.
• C) If the owner of the fee simple dies without a will, his estate reverts back to the Crown.
• D) The owner of the fee simple has rights to the surface of the earth and also unlimited use of the airspace above his property.
• E) The owner of the fee simple also owns what is below the land, including mineral rights.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied.

Price Ceiling

A government-imposed limit on the maximum price that can be charged for a product or service.

Government-Imposed

pertains to regulations, restrictions, or conditions set by public authorities that affect individuals, businesses, or activities within a jurisdiction.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a given period.