Real Estate Quiz

When was lead first banned in the manufacture of paint used in residential properties? 1978 1986 1992 1996

1978

When using a Public Land Survey System, a township is divided into sections, which is a square mile and contains: 540 acres. 640 acres. 740 acres. 840 acres.

640 acres.

How is a conventional life estate created? It happens automatically when title transfers, unless a fee simple is specifically claimed. A fee simple owner grants the life estate to a life tenant. It is created by judicial action. It is created by a statutory period of adverse possession.

A fee simple owner grants the life estate to a life tenant.

Which of the following can terminate a private deed restriction? A quitclaim deed A quiet title suit A title transfer A reconveyance deed

A quitclaim deed

Which of the following statements is TRUE regarding a street address? A street address is a formal reference. A street address is sufficient for a legal description. A street address tells you how to find a property. A street address provides you with the boundaries of the property.

A street address tells you how to find a property.

Which of the following statements is INCORRECT about surveys? A survey includes the total area of the land with its mapped boundaries. A survey determines the type of improvements best suited for the land. A survey is a professional measurement of a tract of land. Surveyors measure angles and distances in accordance with specific procedures.

A survey determines the type of improvements best suited for the land.

When an interest-holder lacks the right of ownership, what kind of interest is it that he or she has? A trust An encumbrance An entailment A tenancy

A tenancy

What is the type of agency created, when a licensee holds a stake in the transaction? Agency of limited liability Agency coupled with an interest Freehold agency Agency of contract

Agency coupled with an interest

Who is responsible for insuring that a buyer receives the Protect Your Family From Lead pamphlet? HUD Agents for buyers and sellers The buyer The seller

Agents for buyers and sellers

Which of these is the best definition for personal property? Any property owned by an individual. Real property that is not attached to real estate. Any property that is not classified as real property. Anything that includes real property.

Any property that is not classified as real property.

When is a licensee required to disclose third party sources of compensation to client? The licensee is not required to disclose third party compensation. Disclosure is required if based on brokerage office policy. Disclosure is required if monies come from out of state sources. As soon as known, third party compensation must be disclosed.

As soon as known, third party compensation must be disclosed.

Where does a metes and bounds survey begin? At the point of beginning At any monument At any landmark At the terminus

At any landmark

Which of the following is NOT a regulated environmental condition? Electromagnetic fields Cell phone radiation Airport traffic noise Construction in earthquake zones

Cell phone radiation

Which agency in Illinois has responsibility for licensing schools and instructors? Training and Development Department Division of Real Estate Standards Council Advanced Advisory Council

Division of Real Estate

There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property A is said to be which of the following in relation to property B? Subservient estate Servient estate Senior tenant Dominant tenement

Dominant tenement

Which is the "best" description of "Land"? Soil, ground and earth, plus any improvements and fixtures attached, mines, minerals and some airspace. Only the surface of the earth that is delineated by boundaries. The surface of the earth except for lakes and streams. Everything above, on, and below the surface of the earth.

Everything above, on, and below the surface of the earth.

A certain property has the following lien recorded against it: a mortgage lien dating from three years ago; a mechanic's lien dating from two years ago; a mechanic's lien dating from two years ago; a real estate tax lien for the current year; and a second mortgage lien dating from the current year. In case of a foreclosure, which of these liens will be paid first? First mortgage lien Mechanic's lien Real estate tax lien Second mortgage lien

First mortgage lien

Which of the following is NOT an activity included in the definition of Broker? Sells, exchanges, purchases, rents, or leases real estate. Negotiates the sale, exchange, purchase, rental, or leasing of real estate. Holds a non-public open house. Engages in the business of buying, selling, exchanging, renting, or leasing real estate.

Holds a non-public open house.

What are the three unique physical characteristics of land? Fixed, unchangeable, homogeneous. Immobile, indestructible, heterogeneous. Three-dimensional, buildable, marketable. Natural, measurable, inorganic.

Immobile, indestructible, heterogeneous.

Which of the following is NOT TRUE regarding a recorded plat description? It can refer to a survey It can refer to a deed It can describe each boundary line, range line, and township line. It can rely on plat for the legal description

It can describe each boundary line, range line, and township line.

What distinguishes a lien from other types of encumbrance? It involves a monetary claim against the value of the property. It lowers the value of a property. It is created voluntarily by the property owner. It attaches to the property rather than to the owner of the property.

It involves a monetary claim against the value of the property.

Which of the following is a feature of a testamentary trust? I t takes effect only when the trustor dies. It only applies to real property. It is activated at the time of signing. It is created in probate.

It takes effect only when the trustor dies.

Which statement is INCORRECT regarding a recorded plat system? A plat map shows the location and boundaries of individual parcels. It uses a series of landmarks and monuments that are numerically categorized. A block is a contiguous group of lots. Lots and blocks are assigned numbers or letters.

It uses a series of landmarks and monuments that are numerically categorized.

Aunt Molly, who had no legal heirs, died without leaving a will. What will happen to her estate? It will be sold at a public auction. It will be apportioned among the owners of adjacent properties. It will escheat to the state or county after all claims have been settled. It will be donated to charity.

It will escheat to the state or county after all claims have been settled.

With regard to environmental issues, which of the following is TRUE? Licensees must demonstrate expert knowledge of a property's physical conditions. Licensees must disclose potential hazards if known. Licensees have no liability for environmental violations. Licensees are under no obligation to be aware of environmental issues.

Licensees must disclose potential hazards if known.

A property abutting a static body of water has ___________ rights. Allodial Alluvial Littoral Riparian

Littoral

Which of the following is not one of the fundamental reasons for requiring a land description and survey in a real estate transaction? Existence of the property Relationship of the property to adjoining properties Loan options for financing real property Relationship of occupied to recorded lines

Loan options for financing real property

Which of the following is the oldest method to describe land? Metes and bounds system Public land survey system Recorded plat Global positioning system

Metes and bounds system

Surface rights include which of the following? Subsurface rights Water rights Mineral rights Air rights

Mineral rights

Which agency has oversight responsibilities regarding home inspectors? National Home Inspectors Illinois Department of Financial and Professional Regulation National Home Inspectors Federal Home Inspectors Board air Labor Standards Board

National Home Inspectors

Which agency has oversight responsibilities regarding home inspectors? Illinois Department of Financial and Professional Regulation National Home Inspectors Federal Home Inspectors Board Fair Labor Standards Board

National Home Inspectors

Which of the following best describes the concept of "legal title" to real estate?" Ownership of the bundle of rights to real estate. The right of a buyer or lender to obtain ownership. Possession of a deed. Absolute proof of ownership of real estate.

Ownership of the bundle of rights to real estate.

The "four unities" required to create a joint tenancy include which of the following conditions? Parties must acquire respective interests at the same time. Parties must be legally married at the time of acquiring interest. Parties must be family members. Parties must have joint financial resources.

Parties must acquire respective interests at the same time.

Which of the following is NOT a part of confidential information? Client's business holdings. Minimum a seller will accept for a property. Reason a property is listed on the market. Physical condition of the property.

Physical condition of the property.

What do we call the conversion of real property to personal property by detaching it from the real estate? Detachment Affixing Severance Disengagement

Severance

Which authority regulates involuntary title transfers? Federal law State law Common law Probate law

State law

What guarantees the right of private ownership of real estate in the United States? Common law Local statutes The Napoleonic Code The Constitution

The Constitution

Which environmental legislation created the requirement for environmental impact surveys on large development projects? The National Environmental Policy Act The Clean Air Amendment The Clean Water Act The Superfund Act

The National Environmental Policy Act

What is commonly referred to as "the Act" in Illinois real estate is actually: The Real Estate License Act of 1983 The Real Estate License Act of 2000, as amended 12/31/2009 The IDFPR Act of 2000 The Real Estate Council Act of 1998

The Real Estate License Act of 2000, as amended 12/31/2009

Seller Joe Needy lists his home for $40,000 and the listing agent tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $38,000 and the seller accepts. In this situation: The broker was unethical, but because no one was hurt it is not improper. The broker violated the agency relationship. The broker's action was proper in obtaining a quick offer. Any broker is authorized to encourage bidders.

The broker violated the agency relationship.

What distinguishes a freehold estate from a leasehold estate? A freehold includes the right to dispose or use. The duration of the owner's rights cannot be determined in a freehold. A freehold cannot be defeasible. A leasehold is subject to government restrictions.

The duration of the owner's rights cannot be determined in a freehold.

What is the result when a licensee produces a ready, willing and able buyer, but the seller refused to complete the transaction? The buyer is required to pay the commission. The agency is required to pay the commission. The licensee's firm may be entitled to the commission. The commission becomes null and void.

The licensee's firm may be entitled to the commission.

Jim knowingly acquired a property with a lien attached. What happens to the lien? The property incurs a second lien. The original owner must remove the lien prior to taking possession. The lien is abolished. The lien continues to be against Jim's property.

The lien continues to be against Jim's property.

If a municipality exerts its power of eminent domain against a certain property owner, what happens? The owner must pay higher property taxes or give up the property. The owner must cede an easement without receiving any compensation. The municipality annexes the property. The owner must sell the property or grant an easement to the municipality for just compensation.

The owner must sell the property or grant an easement to the municipality for just compensation.

Which of the following describes a situation in which an easement might be created against the wishes of the property owner? The property has been continuously used as a prescriptive easement with the knowledge but not the permission of the owner for a period of time. The owner of an adjoining property asks the property owner for an easement, is refused, and then uses the property anyway without the knowledge of the owner. The owner of an adjoining property decides he needs to widen his driveway by sharing his neighbor's driveway and sues in court to create an easement by necessity. The owner of an adjoining property grants an easement to a third party that includes an easement on the first property.

The property has been continuously used as a prescriptive easement with the knowledge but not the permission of the owner for a period of time.

Which government entity is the primary regulator of the real estate business? The federal government The county The state The court system

The state

Which of the following statements regarding month-to-month leases is FALSE? They are also called periodic tenancies. They may exist without any written agreement. They have a definite ending date. They can be terminated with proper notice.

They have a definite ending date.

Which of the following statements about federal and state environmental laws is TRUE? Private property owners have no responsibility for compliance with them. They only apply to publicly owned property. Regional land use plans may treat them as optional. They must be incorporated into local land use plans.

They must be incorporated into local land use plans.

Which document contains a summary of the title search? Opinion Abstract Title Certificate Title Insurance Rider Binder Title

Title Certificate

What is the purpose of the license laws? To protect the public To protect the licensee To protect the broker To protect mortgage lenders

To protect the public

When a property is taken by eminent domain, what right does the owner have? To be paid the appraised market value. To receive "just compensation." To remain in residence until the property is redeveloped. To impose deed restrictions on the property.

To receive "just compensation."

What part of a non-navigable waterway does the owner of an abutting property own? To the low-water mark To the middle of the waterway To the high-water mark None of the water

To the middle of the waterway

Which of the following is included in the bundle of rights inherent in ownership? To transfer To tax To inherit To move

To transfer

Who are the essential parties involved when real estate is placed into a trust? Owner, trustor and lawyer Owner, trustor and trustee Trustee, title company, and beneficiary Trustor, trustee, and beneficiary

Trustor, trustee, and beneficiary

When may an item attached to a structure be considered personal property rather than real property? When it can be removed without altering the appearance of the property. When it is unnecessary to the physical integrity of the property. When the owner installed it at some time after acquiring the property. When the owner originally intended to remove it before conveying the property.

When it can be removed without altering the appearance of the property.

A break in the chain of title to a property results in a cloud on title. a title plant. a lien of indeterminate ownership. a duplicate title.

a cloud on title.

A property owner who is selling her land wants to control how it is used in the future. She might accomplish her aim by means of an injunction. a deed restriction. an easement. a land trust.

a deed restriction.

A tenant has refused to vacate an apartment after his lease expires. This is called an estate In escrow. a tenancy at sufferance. an estate in trust. an estate at forbearance.

a tenancy at sufferance.

Of the principal forms of title evidence in Illinois, the one that provides the best evidence is a title certificate. a title insurance policy. a Torrens certificate. an attorney's opinion of abstract.

a title insurance policy.

For a deed to convey title, it is necessary for the deed to be on a standard form. certified by the grantor. accepted by the grantee. signed by the grantee.

accepted by the grantee.

A deed is not valid unless it is written on a standard form. accompanied by a consideration. signed by an attorney. filed with the county recorder.

accompanied by a consideration.

A person claims ownership of a parcel of real estate to a prospective buyer, stating that she has lived on the property for five years and nobody has ever bothered her. The claimant also shows the buyer a copy of the deed. The legal basis of this claim is referred to as prescriptive notice. constructive notice. hostile notice. actual notice.

actual notice.

A central goal of public land use planning is to balance individual property rights with the community's welfare. develop an accord between property owners and tenants. impede development by for-profit developers and construction contractors. subordinate private interests to the public good.

balance individual property rights with the community's welfare.

The Illinois Residential Real Property Disclosure Act requires a seller to give a buyer a written property condition disclosure before the buyer signs an offer to purchase. at the time the buyer first views the property. before accepting the buyer's offer to purchase. at any time before closing.

before accepting the buyer's offer to purchase.

Unlike a deed restriction, a declaration restriction does not attach to the property. cannot be extinguished by a quitclaim deed. cannot be enforced by court injunction. is a public, rather than private, land use control.

cannot be extinguished by a quitclaim deed.

The level of government that focuses on land-use regulations and taxation is the federal. state. county and local. judicial.

county and local.

A hermit lives secretly in a cave on a large property. After twenty years, the hermit makes a claim of ownership. This claim will most likely be upheld through adverse possession. upheld because of the long time of the possession. declined because possession was secretive. declined because the hermit's cave cannot be considered an improvement.

declined because possession was secretive.

Counties and municipalities have the legal right to control land use due to the doctrine of appropriation. delegation of authority by state-level enabling acts. consensus of the local community through referendum. custom and tradition.

delegation of authority by state-level enabling acts.

A boundary description and survey does all of the following, EXCEPT: describe the land with estimated boundaries. provide the legal description of the property. determine the length and direction of landlines. establish the position of landlines on the ground.

describe the land with estimated boundaries.

The concerns of the federal government in regulating real property rights include discrimination. real estate taxes types of ownership. school districts.

discrimination.

The authority that allows governments to control land use is called eminent domain. due process. police power. annexation.

eminent domain.

The highest form of ownership interest one can acquire in real estate is the dower and curtesy. conventional life estate. estate for years. fee simple estate.

fee simple estate.

The distinguishing features of a condominium estate are ownership of a share in an association that owns one's apartment. tenancy in common interest in airspace and common areas of the property. fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas. fee simple ownership of a pro rata share of the entire property.

fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas.

The type of deed that gives the highest assurances of good title is the general warranty deed. bargain and sale deed. special warranty deed. guardian's deed.

general warranty deed.

Uncle Jake wrote his will out on a notepad. This type of will is called holographic. normal. abstract. virtual.

holographic.

A property is exempt from lead disclosure requirements if it has been certified by an inspector. it is a rental property. it has no separate bedrooms. it is occupied by fewer than five people.

it has been certified by an inspector.

The primary distinction between the legal concepts of land and real estate is that real estate includes air above the surface and minerals below the surface. real estate is indestructible. land has no defined boundaries. land does not include man-made structures.

land does not include man-made structures.

An encumbrance ___________. is a legal estate. reduces the tax burden of the property owner. expands the interest of a freehold estate. limits a freehold interest.

limits a freehold interest.

The most common datum used in the United States is: mean sea level. subsurface mineral level. the bearing. the meander.

mean sea level.

The Illinois Residential Disclosure Act requires that material defects related to which of the following must be disclosed by the seller EXCEPT asbestos. mold. methamphetamine production. mice.

mice.

The only required clause in a deed of conveyance is one that states restrictions and limitations to the estate being conveyed. names the parties, describes the property, and indicates a consideration. states that the grantor has done nothing to impair title to the property being conveyed. states the parties and the type of estate being conveyed.

names the parties, describes the property, and indicates a consideration.

An interest in real estate is best defined as ownership of the full bundle of rights to real property. an estate. one or more of the bundle of rights to real property. the right to possession and use of real property.

one or more of the bundle of rights to real property.

The start of a land measurement involves the surveyor beginning with a benchmark from which a __________ can be determined. point of beginning (POB) gap benchmark link

point of beginning (POB)

A tenancy at will ____. has a definite expiration date. is also called an estate at sufferance. survives the death of the lessor or lessee. remains in effect as long as lease conditions are met.

remains in effect as long as lease conditions are met.

A lender forecloses on a property. The type of deed that will convey ownership after a public auction is reconfirmed by the court is a master deed. partition deed. tax deed. sheriff's deed.

sheriff's deed.

Dioxins, mercury, and Methyl Tertiary Butyl Ether (MTBE) are examples of benign chemicals. air pollutants. soil and water pollutants. naturally occurring substances.

soil and water pollutants.

In a cooperative, unit owners/members own stock. real property. a promissory note. the holding company.

stock.

A professional measurement of a tract of land is a: total station. survey. datum. global position.

survey.

Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is joint tenancy. equal ownership. tenancy in common. estate in severalty.

tenancy in common.

When a single individual or entity owns a fee or life estate in a real property, the type of ownership is tenancy in severalty. tenancy by the entireties. absolute fee simple. legal fee simple.

tenancy in severalty.

The amount of the transfer tax is based on the tax levy. the tax base. the actual sales price of the property conveyed. *Note, in Illinois the tax can be reduced if a buyer has assumed the seller's mortgage "subject to." the tax needs of the local jurisdiction.

the actual sales price of the property conveyed. *Note, in Illinois the tax can be reduced if a buyer has assumed the seller's mortgage "subject to."

The concept that the state controls all bodies of water is called states' rights. the principle of anticipation. the doctrine of public utility. the doctrine of prior appropriation.

the doctrine of prior appropriation.

Licensees are required to disclose to a buyer that a previous occupant suffered from AIDS. the seller is a sexual predator. a murder was committed in a neighboring house. the licensee knows of a latent structural defect.

the licensee knows of a latent structural defect.

Upon the death of the life tenant, a life estate passes to the original owner or other named person. the owner's heirs. the state. the owner's spouse.

the original owner or other named person.

An affirmative easement gives the benefited party the right to possess a defined portion of another's real property. the right to prevent the owner of a real property from using it in a defined way. the right to a defined use of a portion of another's real property. the right to receive a portion of any income generated by another's real property.

the right to a defined use of a portion of another's real property.

A buyer may terminate a purchase contract without liability within ____ business days if a disclosure report indicating a material defect is received after a binding real estate contract has been entered into by all parties: one two three five

three

Constructive notice of ownership of a parcel of real estate is primarily demonstrated through direct inspection to see who is in possession. title insurance. title records. a construction permit.

title records.

Title records do all of the following EXCEPT: establish lien priority. reveal condition of title. give public notice of ownership. transfer ownership.

transfer ownership.

If a property owner demonstrates a need, a zoning board may grant a variance. conditional use permit nonconforming use. grandfathered use.

variance.

An owner transfers title to a property to a buyer in exchange for a consideration. This is an example of voluntary alienation. escheat. hypothecation. estoppel.

voluntary alienation.