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:

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, immediately affecting the inventory account whenever an item is received or sold.

Discount Period

The time frame between the onset of a payment period and the due date when a discount for early payment is available.

Perpetual Inventory System

An inventory management system where updates to inventory records are made in real-time with each sale or purchase, providing a continuous record of inventory levels.

Discount Period

The timeframe during which a discount is offered for prompt payment on sales.