Legal Aspects Combined Review

A REIT must include at least .......... Investors?

100

A broker must maintain records of any transaction for at least ........after closing?

3 years

The statute of limitations for a breach of fiduciary duties is...?

3 years

An agency relationship may be terminated by which of the following means...?

Accomplishment of purpose Expiration of the agency agreement Mutual agreement

An easement may be terminated by which of the following means...?

Express termination Termination by estoppel Termination by prescription

A business trust which deals principally with interest in land, generally organized to conform to the IRS, is referred to as a...?

REIT

Which of the following is an example of an involuntary lien...?

Tax lien Mechanic's lien Judgment lien

Which of the following is an example of concurrent title...?

Tenancy in partnership Tenancy in common Joint tenancy

A joint tenancy must include which of the following unities of ownership...?

Unity of possession Unity of time Unity of title

Which of the following is an example of a material fact...?

a leaking roof

An agency relationship is created between a seller and a/an...?

broker

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...?

community property

An apartment building, owned by a corporation, and in which tenancy in an apartment unit is obtained by purchase of shares of the stock of the corporation, and where the owner of such shares is entitled to occupy a specific apartment in the building, is referred to as a...?

cooperative

An estate arising when the tenant wrongfully holds over after the expiration of the term is known as a/an...?

estate at sufferance

An estate which vests after the termination of the prior estate is known as a/an...?

estate in remainder

Property or estate ownership that reverts back to the grantor after a temporary ownership period is known as a/an...?

estate in reversion

Real estate agents should advise their clients as to how to hold title...? (t/f)

false

This is an inheritable estate in land providing the greatest interest of any form of title...?

free simple absolute

Agency that exists as a result of actions of the parties is known as...?

implied agency

This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another...?

independent contractor

A lien imposed against a property without the consent of the owner is known as a/an...?

involuntary lien

The undivided ownership of a property interest by two or more persons, each of whom has a right to an equal share in the interest and a right of survivorship, is known as...?

joint tenancy

A person to whom property is rented under a lease is referred to as the...?

lessee

One who rents property to another under a lease is known as the...?

lessor

The individual who enters into a listing contract with a principal is referred to as the...?

listing agent

A listing contract between a seller and broker creates what type of agency...?

special agency

A real estate agent typically serves as a/an...?

special agent

An agent with limited authority to act on behalf of the principal is known as a...?

special agent

Involuntary liens are also known as statutory liens...? (t/f)

true

One of the benefits of the right of survivorship is the elimination of probate...? (t/f)

true

Ostensible agency is typically created by estoppel...? (t/f)

true

Ownership in a cooperative includes a proprietary lease...? (t/f)

true

Unless specified otherwise, ownership in a tenancy in common is shared equally between the owners...? (t/f)

true

This is a legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party...?

trust

According to the ........, all of the owners in a joint tenancy have an equal ownership in the property?

unity of interest

A tenancy in common must include which of the following...?

unity of possession

According to the .........., all of the owners in a joint tenancy have the right to occupy the property?

unity of possession

Express agency is created through which of the following...?

a listing contract

In a ............, the owner has a fee simple interest in the air space, or four walls in which they live or occupy, plus common areas which are owned as a tenancy in common?

condominium

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it, is known as a...?

corporation

This exists when a landowner has no access to roads and is landlocked...?

easement by necessity

This refers to a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract...?

exclusive right to sell agreement

Community property automatically includes the right of survivorship...? (t/f)

false

Easements do not run with the land...? (t/f)

false

Which of the following provides the right of possession and control but not title...?

leasehold estate

This is a form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation...?

lien

A freehold estate created for the duration of the life or lives of certain named persons is known as a/an...?

life estate

A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a...?

listing contract

Any fact that would influence the decision of a reasonably prudent person is known as a...?

material fact

Which of the following offers the least amount of protection to the broker...?

open listing

Title to real property held in the name of only one person is known as...?

ownership in severalty

A lease that automatically renews for successive periods unless terminated by either party is known as a...?

periodic tenancy

The individual who finds the buyer (or seller) for the property is referred to as the...?

selling agent

Land encumbered by an easement is referred to as the...?

servient tenement

A lien that attaches to one specific property only is known as a/an...?

specific lien

A statute prescribing a period of limitation for the bringing of certain kinds of legal action is know as the...?

statue of limitations

A partnership organized for participation in a real estate venture is known as a...?

syndicate

Which of the following costs are shared among the owners in a tenancy in common...?

taxes, expenses, insurance

Which of the following is an example of a tenancy in common...?

time-share

A TDS form is not required when property is transferred between husband and wife...? (t/f)

true

A mortgage lien is an example of a voluntary lien...? (t/f)

true

A property manager is an example of a general agent...?(t/f)

true

A real estate broker cannot collect a commission unless he/she has an express contract with the seller...? (t/f)

true

If a broker represents a seller in a transaction, who operates as a third party to the agency relationship...?

a prospective buyer

This refers to the relationship between principal and the principal's agent which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...?

agency

One who acts for and with authority from another called the principal is known as a/an...?

agent

A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is referred to as a/an...?

associate broker

An agent's compensation for performing the duties of the agency is known as a...?

commission

The land benefiting from an easement is known as the...?

dominant tenement

A right, privilege or interest limited to a specific purpose which one party has in the land of another is referred to as a/an...?

easement

a utility easement is an example of an

easement in gross

Which of the following court cases determined that an agent is only responsible for performing a diligent visual inspection...?

easton vs. strassburger

Which of the following offers the most amount of protection to the broker...?

exclusive right to sell agreement

An agency relationship created by oral or written agreement between a principal and the agent is known as...?

express agency

A contract that has been put into words, either spoken or written, is referred to as a/an...?

express contract

An easement created by a deed or by a will is known as a/an...?

express easement

An estate of indeterminable duration is known as a/an...?

freehold estate

An agent with full authority over one property of the principal is known as a...?

general agent

A lien on all the property of a debtor is known as a/an...?

general lien

A division of real or personal property among co-owners is known as...?

partition

A tenancy in common can be terminated through...?

partition

An estate from year to year is also known as...?

periodic tenancy

This refers to the adoption or approval of an act performed on behalf of a person without previous authorization, after the acts have been performed...?

ratification

This refers to a person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee...?

real estate broker

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker, is referred to as a...?

real estate salesperson

Which of the following exists without a contract or lease, and is unspecific in duration or the exchange of payment...?

tenancy at will

A joint tenancy that is severed becomes a...?

tenancy in common

An ownership of real property by two or more persons, each of whom has an undivided interest, without the right of survivorship, is known as...?

tenancy in common

According to the ........., if one of the owners in a joint tenancy passes away, the other owners automatically receive their share of ownership?

the right of survivor ship

What is the distinguishing factor between a tenancy in common and a joint tenancy...?

the right of survivor ship

Who is responsible for completing the Transfer Disclosure Statement form...?

the seller only

A broker is entitled to a commission if they find a ready, willing, and able buyer for the seller...? (t/f)

true

A leasehold estate is an example of a non-freehold estate...? (t/f)

true

A life estate is a non-inheritable estate...? (t/f)

true

A real estate salesperson must work under a sponsoring broker...?(t/f)

true

An agent is required to disclosure all known material facts to the customer...? (t/f)

true

An open listing is an example of an exclusive listing contract...? (t/f)

true

An owner in a tenancy in common can sell their share of ownership in the property without the consent of the other owners...? (t/f)

true

According to the ........., all of the owners in a joint tenancy must have acquired their interest in the property at the same time?

unity of time

According to the ........., all of the owners in a joint tenancy must have acquired their interest in the property through the same deed?

unity of title