REAL ESTATE EXAM
A real estate licensee with many years experience decided to retire from actively marketing properties. Now she helps clients choose among the various alternatives in purchasing, using, or investing in real estate. Her new profession is that of a real estate A.counselor B.appraiser C.educator D.salesperson
A A real estate counselor provides expertise and advice, rather than showing or listing property
The owner of an old plantation plans to deed the property to the state for use as a state park. This gift is an example of A. dedication. B. a patent. C. involuntary alienation. D. accession.
A Dedication is an example of voluntary alienation in which the owner turns over private property to the government for public use.
A farmer sold his cornfield. The farmer has the right tp harvest the corn because the corn is an example of A.an embedment B.personal property C.a chattel D.a trade fixture
A Emblements are growing crops that the seller of the property has the right to harvest
The beach has been gradually washing away so that the house that was 50 feet from the beach is now only 10 feet away. This is a result of A. erosion. B. accretion. C. accession. D. avulsion.po9
A Erosion is the slow loss of land, but avulsion is the sudden tearing away as when the river changes course or a hurricane changes the beach in a matter of a few hours. Accession is the process of gaining land, often by accretion, through the accumulation of soil, rock, and other matter.
Who is responsible for insuring the personal property of the renter? A.tenant B.property manager C.landlord D.both landlord and tenant
A Individuals may only insure that which they own; in a rental property, the landlord buys insurance to cover the physical structure, and the renters purchase insurance to cover their personal property
A man died, leaving no will and no heirs. His property will be transferred to the state (or county) where the property is located based on the operation of law called A.escheat. B.condemnation. C.dedication. D. patent.
A Ownerless property, a result of a person who dies intestate with no heirs, escheats to the state, which is an example of involuntary alienation. Escheat, along with police power, taxation, and eminent domain, are legal rights held by the government.
If the grantee wants to be sure to have the greatest measure of protection from the grantor who is conveying title of the property, the grantee should request that the grantor provide A.a general warranty deed B.a special warranty deed C.a bargain sale deed D.a quitclaim deed
A The general warranty deed provides the grantee with the covenants of seisin, against encumbrances, of quiet enjoyment, of further assurance, and of warranty forever. A special warranty deed covers only the time the grantor held title. A bargain and sale or quitclaim deed has no warranties.
In the early days of development of the United States, the government often conveyed public land to individuals. This type of conveyance is A.a patent B.a dedication C.a devise D.a bequest
A When a state or federal government conveys title to public land to an individual, it is called a patent.
A buyer has purchased a home located in an SFHA. Th slender requires that the buyers purchase flood insurance. When does this flood insurance policy become effective? A.immediately upon transfer of tile B.7 days after purchase C.15 days after purchase D.30 days after purchase
A When required by the lender, flood insurance is effective as soon as title passes. A homeowners insurance policy is effective as soon as title passes
A corporation can take title A.in severalty. B. as a joint tenant. C. as tenancy by the entirety. D. with survivorship.
A A corporation can take title in severalty or as a tenant in common. Because a corporation never dies, it may not take title as a joint tenant with rights of survivorship. Page 71.
Generally, co-owners may petition the court to dissolve the co-ownership. Which parties may NOT do so? A. Tenants by the entirety B. Joint tenants C. Tenants in common D. Tenants with the right of survivorship
A Real estate owned by both spouses as tenants by the entireties is considered to be held by one indivisible legal unit; the couple generally has no right to partition. Page 68.
A time-share in which the owner has unlimited ownership for a specified time period each year takes the form of A. fee simple ownership. B.right-to-use. C.cooperative. D. participation.
A The form of time-share that conveys a fee simple interest in a specific property for a certain time each year is a fee simple ownership, which is treated like any other real property; a right-to-use form of time-share is limited to a specific time period. Page 74.
A county supports its local government through property taxes. This ability to make long-range plans based on projected income is based on the physical characteristic of land called A.immobility B.scarcity C.indestructibility D.nonhomogeneity
A A fact that land cannot be moved makes it a preferred foundation for a tax basis
What must be provided before an insurance agent can provide a quote for the cost of flood insurance? A.elevation certificate B.federal deposit insurance corporation (FDIC) approval C.estimate of replacement costs D.federal emergency management agency (FEMA) approval
A An insurance agent must see a copy of an elevation certificate that has been prepared by a licensed surveyor certifying building elevations and is required to show compliance with community floodplain regulations and to determine appropriate insurance rated before the insurance agent can quote a price
The owner of a 50-acre tract of land decided to sell it. The appropriate asking price will be determined primarily by A.the specific supply and demand for real estate in that area B.the properties current use C.the properties potential use D.the price paid for it
A The price is determined buy the specific supply and specific demand for similar properties in the area
A lease for a commercial tenant ended before the tenant removed several large counters and a large refrigerator. The landlord may acquire this property by a process called A.accession B.severance C.common law D.custom
A When the commercial lease expires and the tenant has not removed trade fixtures, they become the landlords property by accession. The tenant has no right to reenter the property after the lease expires
A man owns 20 acres of farmland with a farm house, two barns, and numerous outbuildings that he will leave to his son when he dies. The man has A.a freehold estate B.a leasehold estate C. a life estate D.a tenancy at will
A a freehold estate may be sold, leased, or willed to another person
Which of the following is a public limitation on private ownership A.eminent domain B.deed restriction C.covenants, conditions, and restrictions (CC&Rs) D.encroachment
A government limitations on ownership of real property are for the general welfare of the community and include police power, eminent domain, taxation, and escheat
A man has an easement appurtenant to cross over another property in order to reach the public road. This man is considered to have A.a dominant tenement B.a servant tenement C.an encroachment D.a lisence
A the party that is receiving benefit from the easement is called the dominant tenement
A couple lives in a two-story town house and holds a fee simple interest in their town house plus an undivided interest in the common elements of the community: swimming pool, tennis courts, landscaping, and exterior maintenance. Their form of ownership is A. a condominium. B. a cooperative. C. a time-share. D. a right-to-use.
A In a condominium, each owner has a fee simple interest in an individual unit plus an undivided interest in all of the common areas. Page 73.
All of the following are commercial real estate transactions EXCEPT A. a midtown office building for sale B. a fifth-floor residential condominium unit for rent C.2,000 square feet of retail space for lease in a mall D.a fast-food restaurant for sale
B A condominium can be either commercial or residential
A metes-and-bounds descriptions must A.include natural monuments B.return to the point of beginning C.use U.S. Geological Survey benchmarks D.include lot and block numbers
B A metes-and-bounds description refers to monuments and benchmarks but must return to the point of beginning
The legal description on the purchaser's contract is Lot 4 in Block C at Happy Acres, Washington County. This method of legal description is based on A.a rectangular survey B.a subdivision plat C.metes and bounds D.a government survey
B A subdivision plat shows property divided into block and lot numbers
All of the following are required for a valid deedЕХСЕРТ A. the grantor's signature. B.the grantee's signature. C. be in writing. D. a granting clause.
B A valid deed must be in writing and signed by the grantor, but not the grantee. It must also include a granting clause, a legal description, and a recital of consideration
In which property will the surveyor MOST likely use an air lot to describe the property? A.highrise commercial building B.highrise condominium unit C.shopping mall D.a duplex consisting of two rental units
B Air lots consist of airspace within specific boundaries over a parcel of land and are typically used to describe each condominium unit in reference to the elevation of the floors and ceilings on a vertical plane above the city datum
The owner of three warehouses uses the to stock-pile truck and tractor parts. This property falls into the real estate category of A.commercial B.industrial C.agricultural D.special purpose
B Although a businessman is engaged in commercial business, the warehouses would fall under the category of industrial
With three times as many homes for sale in one section of town as there were this time last year, house prices can be expected to A.continue to increase but at a slower rate than seen previously B.begin to show a reduction in price C.immediately drop by 20%-30% D.stay approximately the same
B An increase in the number of homes for sale will lead to a reduction in prices
A large company announces that it will relocate one of its corporate offices, along with 2,000 employees to a different city. What effect will this announcement MOST likely have on the housing market in the new location A.houses will likely become less expensive B.houses will likely become more expensive C.Housing prices will stay the same, although the price of office space will likely increase D.housing prices will stay the same, as will prices of all other property types
B Anticipating an increase in population, house prices will likely increase
Three men are not able to agree on the management of their investment property. They may find it necessary to terminate their joint tenancy through the court-ordered action of A. foreclosure. B.partition. C.dedication. D. probate.
B If joint tenants are not in agreement as to the disposition of their property, they may file a partition suit to terminate their joint tenancy.
Personal property is distinguished from real property by its A.cost B.mobility C.scarcity D.size
B Personal property, also called chattels, is characterized by the fact that it can be easily removed from the property
The bundle of rights of ownership allow a new homeowner to do all of the following EXCEPT A.take possession of the property B.exercise complete control of the property with no restrictions C.exclude others from entering the property D.sell, rent, or give away the property
B The bundle of rights of ownership are still subject to police power, eminent domain, taxation, and escheat
A new homeowner installed ceiling fans in all rooms in the house. The factors that will determine whether fans are now considered part of the real property include all of the following EXCEPT A. the method by which they are attached B.their cost C. the homeowner's intention when installing them D.the adaptation of the fans of the house
B The cost of the item has np bearing on determining whether or not it is a fixture
The covenant in a deed in which the grantor guarantees the title against third parties who might bring a court action to establish superior title is the covenant A. of further assurance. B. of quiet enjoyment. C.of seisin. D. against encumbrances.
B The covenant of quiet enjoyment protects the grantee from any third party making a claim on the property and holds the grantor liable for any damages incurred if there should be a superior claim.
In order for a deed conveying property to be valid, the deed must contain A.the grantees signature B.the grantors signature C.a court order D.the sales price
B The grantors signature is required, not the grantees. The only time the sales price or consideration) is given is with acourt-ordered deed.
The supply of real estate is MOST directly affected by A. population B.construction costs C.wage controls D.demographics
B The supply of real estate is directly affected by changes in construction costs
A parcel of land containing 640 acres is called A.a township B.a section C.a range D.a plat
B Under the government survey system, a section is 640 acres
The interest of a husband on the real estate of his deceased wife is A.the dower right B.the curtesy right C.the elective share D.the community property share
B although often replaced today with an elective share, traditionally the husband had curtesy rights to his wife's property
An elderly woman passed away. She had no other living family members but did have a will. In this case, her estate will A.escheat to the state because she outlived her relatives B.pass to whoever is named in the will C.become the subject of a lawsuit to determine ownership D.revert to heirs of the pervious owners, if any
B because the woman left a will, her property is not ownerless and will pass to whomever is named in her will
A brother gave property to his sister for hr life time, and at her death the property is to be transferred to their cousin. In this situation, the cousins interest in the property is A.reversionary B.remainder C.fee simple with possible reverter D.fee simple subject to a condition subsequent
B the person who will receive the interest in an estate after the termination of a life estate had the remainder interest
A person has full rights to use and occupy the property for a certain period, after which the person must return the property to its owner. This person holds A.a freehold estate B.a leasehold estate C.a legal life estate D.a homestead estate
B the tenants right to occupy the land for the duration of a lease is called a leasehold estate and the ownership interest in the property remains with the landlord, as an easement in reversion
A grandmother left her Homa and 100 acres to her church to be used as a camp. In the event the church attempts to sell or make some other use of the property, the estate would then go to the grandmothers heirs. This is an example of A.a fee simple absolute estate B.a fee smoke determinable estate C.a leasehold estate D.a life estate
B under a fee simple determinable estate the property is conveyed subject to certain restrictions that must be followed or risk reversion to the grantor
Four brothers have decided to purchase the family homestead, with the intent that the property will remain in the family. They will each have an undivided interest in the property, with right of survivorship. There will be one title issued at settlement. They are apparently holding title as A. tenants in common. B.joint tenants. C.tenants by the entirety. D. community property.
B Although the four brothers are acquiring their interest at the same time, they received title through one instrument; they have equal ownership interest, and they each have undivided possession of the property. This does not necessarily indicate joint tenancy. Tenants in common could receive title through one instrument; they have equal ownership interest and they each have undivided possession of the property. Page 65.
A woman bought property in another state and never visited the land. A man moved his mobile home onto the land, had a water well drilled, and lived there for 22 years. This man may become the owner of the land if he has complied with the state law regarding A. requirements for valid conveyance. B. adverse possession. C. avulsion. D. voluntary alienation.
B Each state has specific laws regarding the length of time that a claimant must have made open, exclusive, notorious, and hostile use of land for it to be claimed under adverse possession.
The executor for a person's estate must convey a deed to the buyers. The buyers will MOST likely receive A. a general warranty deed. B. a special warranty deed C. a bargain and sale deed D. a quitclaim deed.
B Fiduciaries, such as trustees and executors, generally convey property with a special warranty deed because they cannot warrant against the actions of earlier holders of the title.
A home is located in an SFHA. Will this designation have any effects on its market value? A.enhances the value of the property because it is close to water B.might reduce the market value of the property because of increased insurance costs C.not effect at all D.no if it is a cash sale
B The cost of flood insurance may significantly change the PITI ratios, so the buyers may not be able to afford a higher value. While it is true that a cash buyer is not required to purchase flood insurance, the buyer is making an unwise decision
A family is struggling financially. Unfortunately they find that their homestead exemption will only protect them against A.the remaining balance due on their mortgage B.debt on a credit card issued by a local bank C.the mechanics lien filed by the company that built their garage D.property taxes they still owe from last year
B a homestead exemption protects the homeowner from debt on a credit card issued by a local bank, but not from mortgage debt, mechanics liens, or unpaid property taxes
An electric company is planning to bury electric lines across the backyards of 40 homes in a new subdivision. They will need to apply for A.an easement appurtenant B.a commercial easement in gross C.a lisence D.a dominant tenement
B an easement in gross is obtained by a commercial company on order to cross over multiple properties
A truckload of lumber has been left on the drive-way for use un building a new deck. At this point, the lumber is considered A.a fixture because it will be permanently affixed to real property B.personal property because it is moveable C.real property because it will be a man-made addition D.a trade fixture because it is part of a business contract
B When the trees were growing on land, they were real estate; once cut into lumber, they become personal property; once the deck is complete, the lumber will have returned to real estate as a permanent improvement
A woman lives in an apartment in a highrise building. She owns a certain number of shares of stock in a development corporation and has a proprietary lease to her unit. Her form of ownership is A.a condominium. B.a cooperative. C.a time-share. D. an investment trust.
B A cooperative is a unique form of ownership in which the owner actually owns shares in the corporation that owns the property and has a proprietary lease that gives the right to occupy a specific unit. Page 72.
A financial advisor with over a hundred clients is planning to have all the clients join together to purchase shares in a trust. The trust will then purchase a combination of income-producing proper-ties, including two apartment buildings, a small shopping mall, and an office building. The advisor is originating A. a syndicate. B.a REIT. C.a joint venture. D. a subchapter S corporation.
B A real estate investment trust (REIT) is formed of at least 100 members who hold shares in the trust that will purchase several different properties. Page 70
A real estate licensee has approached several investors. In return for the investment money, the licensee promises to run the business for the benefit of himself and the investors, who will not have to be involved in the day-to-day business. The licensee is proposing A. a general partnership. B.a limited partnership. C.a sub-S corporation. D. a limited liability company.
B The licensee is proposing a limited partnership with himself as the general partner doing the work and the investors as limited, or silent, partners who are not involved in running the business and can be held liable for any losses only to the extent of their investment. Page 70.
Two businessmen regularly travel back and forth between two cities. They decide to purchase a small condominium in one city instead of staying in a hotel every time they work there. They will MOST likely take title as tenants in common due to the provision that A. if either one of them dies, the other will receive the entire interest in the property. B. if either one of them dies, that person's interest will convey to the heirs. C. they will each have a divided half interest in the property. D. the other party's consent is required in order to sell the other party's own interest.
B Two unmarried individuals often prefer that any interest they have in a property will convey to their heirs upon their death, rather than to the surviving party. Pages 64-65.
A parcel of real estate was purchased by two brothers. The deed they received from the seller at the closing conveyed the property "to A and B" without further explanation. A and B probably took title as A. joint tenants. B. tenants in common. C. tenants by the entirety. D. community property owners.
B When no specific type of co-ownership is stated in the deed, a tenancy in common is presumed. Page 64-65.
A group of investors wishing to invest in real estate, while limiting their losses to the amount of their investment, would probably be BEST satisfied with A. a general partnership. B a limited partnership. C.a corporation. D. a joint venture.
B With a limited partnership, the investor does not take an active part in the management of the business and only risks the loss of the money originally invested. Page 70.
A metes-and-bounds legal description appears to be very complicated. Whom should the buyer consult for accurate boundary line? A.an attorney B.an appraiser C.a surveyor D.current owner
C A licensed surveyor is sometimes the only one who can locate monuments and boundary lines, especially when the metes-and-bounds land description is long and confusing
A metes-and-bounds legal description must include A.a datum B.an acreage for the parcel C.a point D.a meridian
C A metes-and-bounds description must begin and end with the point of beginning, thus completely enclosing the described property
A hurricane will often shift large quantities of sandy soil from one end of a barrier island to the other. Title to this additional land created by the natural forces of accretion is acquired by the owner through a process called A. alluvion. B.reliction. C.accession. D. avulsion.
C Accession generally refers to land being added to real property through natural causes. Alluvion is the actual accumulation of soil or other matter.
Items that are attached to the land are considered A. trade fixtures B.emblements C.real estate D.chattels
C All items permanently attached to the land are considered part of real estate
Of the following, which is MOST likely to increase the demand for real estate? A.the opening of a very large new real estate brokerage firm B.the closing of two small equipment factories C.an increase in employment levels and wage schedules D.the number of new homes being built
C An increased demand for real estate is most affected by increased employment wages
Demographics is the study and description of A.the current sales market in an area B.the master planning by a city or area C.the characteristics of the population within a given area D.the factors affecting supply and demand
C Demographics refers to the characteristics of the population in an area
Flood insurance is required when A.the property is located near the ocean B.the buyer pays cash C.the property is located in a special flood hazard area (SFHA) D.the property is located outside an SFH
C Flood insurance is required when the property is located in special flood hazard area (SFHA) and financed with a federally related loan. Flood insurance is effective 30 days after purchase, unless it is required as a condition of the mortgage loan and is effective immediately
The definition of land includes A.man-made additions B.the right to possession C.subsurface rights D.emblements
C Land includes air rights and subsurface rights
A builder constructs the same model home in many different locations. The fact that a young couple only wants to buy that particular model in the center city is an example of the economic characteristic called A.scarcity B.permanence of investment C.situs D.improvements
C Situs refers to the fact that individuals will prefer one location over another
A farmer is nearing retirement. He intends to divide his 50-acre farm, selling 20 acres to a residential home developer and giving the remainder to his son. This process of dividing the land is called A.development B.agricultural property management C.subdivision D.retirement planning
C Subdivision is the splitting of property; development is adding improvements
A young couple has just purchased their first home. Title to the property transfers to the purchasers when A. the sellers sign the deed. B.all parties appear at the settlement table. C.the deed is delivered and accepted. D. the purchasers sign the deed.
C Title passes when the deed is delivered and accepted - either at the settlement table or through an escrow agent.
A man has planted strawberries in an empty field near his home for the past 15 years. In order for him to make a legitimate claim of adverse posses-sion, he will have to prove that his possession of the property was A. subtle. B. involuntary. C. hostile. D. profitable.
C To obtain title by adverse possession, the possession must be proved to have been open, exclusive, notorious, and hostile for a specific number of years.
The buyers payed in cash for their home. At closing, they also purchased flood insurance and home owners insurance. When do the insurance policies become effective? A.the homeowners policy becomes effective within 24 hours of recording the title B.the homeowners is effective after 30 days C.the flood insurance is effective after 30 days D.the flood insurance is effective when the title is transferred
C When buyers pay cash at closing, their flood insurance policy does not become effective for 30 days after closing. Therefore, cash buyers should consider getting a mortgage loan because when the lender requires flood insurance, the policy is effective immediately. Once the insurance is in place, the buyer a pay off the mortgage loan. Hazard insurance is always effective upon transfer of title
A landscaping company has not been paid for its work on a property. In order to give public notice of intent to file a mechanics lien, the company must file A.an attachment B.a judgment C.a lis pendens D.a writ of execution
C because of the time involved to file a mechanics lien, a lis pendent is filed to serve notice that a lien is pending
A town is levying charges to all homeowners along a street where the town is putting in curb and gutters plus streetlights. This changes for these improvements, which will add to the value of the real estate is called A.ad valorem taxes B.general real estate taxes C.special assessments D.judgement liens
C improvements that will benefit a certain group of homeowners are taxed as special assessments to those homeowners
Which encumbrance is typically removed before the transfer of title A.restrictive covenant B.life estate C.lien D.encroachment
C liens are monetary claims against the property, so most buyers require that the liens be pair prior to closing
The granting clause of a deed includes the words"do hereby grant, bargain, sell, and convey." The grantee has received A. a special warranty deed B. a quitclaim deed. C. a general warranty deed. D. a bargain and sale deed
C The granting clause of a general warranty deed is often all encompassing including the words grant, bargain, sell, and convey
A town condemns all property in four downtown blocks to build a new courthouse and social services building. It is able ro do this under the governmental power of A.taxation B.police power C.eminent domain D.escheat
C Under the right of eminent domain, the government may take property to be used for the common good
A small community near a major city has experiences a period of significant overbuilding of office buildings. This will likely lead to A.an increase in the number of offices rented B.an increase in the cost of renting an office C.a decrease in the cost of renting an office D.an increase in the number of office buildings planned
C An oversupply of office space will lead to decrease in office rents
An owner sells several large trees for use as lumber. The growing trees become personal property through the process called A.accession B.recession C.severance D.acceptance
C Severance is the process by which real property becomes personal property; the opposite is accession, whereby personal property is so affixed that it becomes real property
A construction company placed a new roof on a house four months ago. Because the owner of the property has not paid for the work done, the company may need to place A.a general lien on the owners other properties B.a mechanics lien on the owners other properties C.a mechanics lien on the property with the new roof D.a judgement lien on the property with the new roof
C a contractor who has not been paid can file a mechanics lien against the property where the work was done
One of the principal disadvantages of corporate ownership of income property is A. personal liability for its profits and losses. B. inability to transfer its stock. C.double taxation of all of its profits. D.control by the general partner.
C A corporation must pay taxes, and its stockholders must also pay taxes on the profits received. A subchapter S corporation is taxed only at the shareholder's level. Page 71.
Depending on the state, a married couple can take title as any of the following EXCEPT A. joint tenancy. B.tenancy by the entirety. C. In severalty. D. tenants in common.
C A married couple may not take title in severalty but, depending on the state, may take title as tenants in common, joint tenancy, or tenancy by the entirety. Page 64.
If tenants in common cannot agree on a voluntary method of terminating their co-ownership, an action may be filed in court to legally dissolve the co-ownership. This action is called A. a foreclosure suit. B. a quiet title action. C. a partition suit. D. a separation action.
C Anytime tenants in common cannot agree voluntarily to terminate their co-ownership, they can file for a court-ordered partition suit. Page 67.
A young couple plans to be married next month in a part of the United States that is most influenced by Spanish common law. Any property they acquire during marriage will be considered A. separate property. B. joint property. C.community property. D. divisible property.
C The states in the western part of the United States are primarily influenced by Spanish law. Married couples are recognized as equal partners and hold title to all property accumulated during the marriage as community property.Page 68.
A man has four pieces of land that he would like to have held in trust for his grandson. An attorney friend has offered to assume the duties of - care and maintenance of the trust. The grandson will be called A. the trustor. B the trustee. C.the beneficiary. D. the fiduciary.
C The trustor is the one who establishes the trust; the trustee is the one who administers the trust; and the beneficiary is the one who ultimately benefits from the trust. Page 69.
Three sisters are joint tenants with rights of survivorship in a tract of land. One sister conveys her interest to her cousin. The two remaining sistersare now A. joint tenants along with the cousin. B.tenants in common, along with the cousin. C.joint tenants with the cousin as a tenant in common. D. joint tenants with the cousin as severalty owner.
C When a joint tenancy is broken by one party conveying that party's interest, the remaining parties remain as joint tenants, along with the new owner as a tenant in common. Page 67.
Two doctors purchased a condominium unit where they practice medicine. Later, one of the doctors died. The other doctor, who was not named in the deceased doctor's will, now owns the entire interest in the property. They apparently held the property as A. tenants in common. B.community property. C.joint tenants with right of survivorship. D. tenants by the entirety.
C With a joint tenancy with rights of survivorship, a deceased party's interest automatically conveys to the surviving owner. Page 66.
Which is an example of involuntary alienation? A. Title passed at settlement B. Dedication C. Father wills farm to his son D. Court order for specific performance
D A court order for specific performance transfers property involuntarily when the sellers have decided to not transfer the property. Although dying is not voluntary, writing a will is. Dedication is a voluntary process of turning over private property for public use.
A will that is drawn in its maker's own hand-writing and then signed by that person without a witness is called A.a formal will B.a witnessed will C.a nuncupative will D.a holographic will
D A holographic will is handwritten, prepared, dated, and has no witnesses. A nuncupative will is an oral declaration, usually made upon fear of dying.
The type of deed that provides no covenants or warranties of any kind and may only convey whatever interest the grantor has at the time of conveyance is A. a general warranty deed. B. a special warranty deed. C. a bargain and sale deed. D. A quitclaim deed.
D A quitclaim deed conveys only whatever interest the grantor may have, which may be nothing; it is often used to clear up minor title issues.
Which of the following is a REALTOR A.a specially licensed real estate professional who helps clients negotiate real estate transactions B.any licensed real estate broker or salesperson C.a member of the national association of real estate brokers who specializes in residential property D.a real estate licensee who is a member of the National Association of REALTORS
D All states require licensure but a REALTOR has chosen to become a member of the national association of REALTORS
A farmer and rancher is worried that owners of property upstream are diverting all the available water, leaving nothing for watering crops and stock. He may be protected by the concept of water rights called A.riparian rights B.subsurface rights C.littoral rights D.prior appropriation
D Prior appropriation rights protect the farmer or rancher who is downstream from others who may tend to divert all available water to their own use
Which of the following is personal property? A.land B.fixtures C.the bundle of rights D.trade fixtures
D Real property includes the land and improves plus the bundle of rights. Trade fixtures are personal property
What is the effect of signing a document in front of a notary public? A. Adds to the cost of settlement B. Ensures that all parties have been properly identified C. Validates that the information in the document is true D. Verifies that the signature is genuine and voluntary
D The notary public only verifies that the signature is genuine, not a forgery, and is voluntarily given. This acknowledgment does not examine or verify the truthfulness of the document.
The seller has already moved and won't be present at settlement when title to a property is conveyed to the purchasers. The person designated to sign the deed on the sellers behalf under a power of attorney is called an A.agent B.executor C.attorney-at-law D.attorney-in-fact
D The person designated to act on behalf of another through a power of attorney is called and must sign all documents as attorney-in-fact.
Property management, appraisal, financing, and development are examples of A.factors affecting demand B.factors affecting supply C.government regulation of the real estate industry D.specializations within the real estate industry
D There are many different specializations in the real estate industry
AN example of a specific voluntary lien is A.an unpaid property tax lien B.a court-ordered judgment lien C.a heating and air-conditioning company mechanics lien D.a bank mortgage lien
D a mortgage lien is made voluntarily and is specific to one property
Who enforces covenants, conditions, and restrictions (CC&Rs) A.local zoning board B.tax assessor C.previous owner D.other owners in the subdivision
D any other subdivision lot owner can apply to the court for an injunction to stop a neighboring lot owner from violating the recorded restrictions
A man has an easement appurtenant as a dominant tenement across a woman's property, which allows him to have an extra wide driveway big enough for him to store his boat. This easement may be terminated if A. the man sells his property B.the woman gets tired of looking out her window at the boat C.the women sells her property D.the man sells his boat and wants to terminate the easement
D easements run with the land and convey when the property is sold. Only the dominant tenement may terminate the easement
The sellers have moved out of their home while it was still for sale. The listing agent should suggest that they A.talk with the lender about reducing the principal owed B.as their neighbors to keep an eye on the property C.consider renting out the home until it is sold D.notify their insurance agent
D Because the HO-3 homeowners policy is for owner-occupied properties, owners who vacate their homes should consult their insurance agents to determine when their homeowners insurance policy converts to a basic fire policy
A seller recently installed a heat pump used to heat the house. The heat pump is installed outside the house. Because the heat pump is new and cost a lot of money, the seller wants to take it with him. Can he do this? A.yes, because the seller paid for it B.yes, because the owner can take anything that is not indoors C.no, because any item that heats any part of the home is considered real property D.no, the item is an essential part of the property
D The heat pump, although it could be removed, is an essential part of the property, making it a fixture
A money encumbrance that affects the title to property is called A.a restriction B.an easement C.an encroachment D.a lien
D a lien is an encumbrance that involves money
A widow is willed property from her deceased husband for the rest of her life. Upon her death, the title passes to her children. This type of ownership is BEST described as A.a fee simple absolute B.a fee simple defeasible C.a life estate with a reversionary interest D.a life estate with a remainder interest
D a life estate allows the mother to remain in the property until her death, at which the time the interest goes to the party holding the remainder interest
All of the following are unities of joint tenancyЕХСЕРТ A. time. B. title. C.interest. D. survivorship.
D The four unities required to establish joint tenancy are time, title, interest, and possession. Rights of survivorship may or may not be included. Page 66.
Who inherits under the right of survivorship when a joint tenant dies? A. Depends on the will B. Spouse and children of the deceased C Depends on the state's statute of descent and distribution D. The surviving owners
D When a joint tenant dies, the remaining joint tenants receive the interest of the deceased tenant by right of survivorship. Page 67.
