Real Estate Exam

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as: A. property infrastructure B. "raw" land C. developed land D. building site

"raw" land

Which of the following scenarios best illustrates the concept of "easement by presciption"? A. Emma has been using a path through Peter's property openly, with Peter's permission for over 5 years. B. Emma has been using a path through Peter's property openly, without permission for over 15 years. C. Peter has allowed Emma to use a path through his property for 2 years, with the agreement to review it later. D. Emma has been secretly using a path through Peter's property for 10 years

Emma has been using a path through Peter's property openly, without permission for over 15 years.

"Improvement TO the land" refers to buildings and structures erected on the land. True or False

False

The property market is segmented, meaning that investment capital typically comes from local sources only. True or False

False

In a periodic tenancy, the agreement is often oral and the state law governs notice of termination. True or False

True

The manner of attachment is a rule for identifying a fixture, which involves assessing the removal of an object results in damage to the property. True or False

True

The right of exclusive possession in the real property bundle of rights includes the ability to lock your house. True or False

True

The term "Real Estate" can be used to refer to both tangible and intangible assets. True or False

True

Which of the following is NOT important to the location of most commercial properties? A. availability of communications infrastructure B. access to customers C. visibility D. access to schools

access to schools

What type of easement gives the dominant parcel the right to not be intruded upon by the servient parcel? A. affirmative easement B. negative easement C. easement in gross D. easement appurtenant

affirmative easement

The required rate of return that an individual or company expects from a real estate investment is determined by: A. user market B. capital market for both debt and equity C. local market D. government sector

capital market for both debt and equity

The sequence of conveyances passing ownership down through time is known as: A. title chain B. chain of custody C. chain of title D. title sequence

chain of title

An example of a real estate asset that trades in the public equity market is a(n): A. equity REIT B. real property C. home mortgage D. commercial mortgage-backed security (CMBS)

commercial mortgage-backed security (CMBS)

An easement that is permanent and inseparable feature of both parcels involved is: A. easement appurtenant B. easement in gross c. negative easement D. license

easement appurtenant

A developer subdivided his land into various plots and allowed a neighbor to use a particular pathway on his land regularly. After some years, the developer wanted to close off the pathway, but the neighbor claimed he had the right over the pathway. This situation is an example of: A. easement by necessity B. easement appurtenant C. easement by estoppel D. easement by prescription

easement by necessity

What type of easement occurs when a landowner subdivides land, causing a parcel to be landlocked? A. easement by estoppel B. easement by prescription C. implied easement D. easement by prior use

easement by prior use

Which of the following is a Real Property Interest that includes the right of (exclusive) possession? A. lien B. easement C. restrictive covenant D. estate

estate

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements ON the land include: A. sewer systems B. streets C. walkways D. fences

fences

A lien that arises due to events unrelated to the property is known as a: A. mortgage B. mechanics' lien C. general lien D. specific lien

general lien

Real estate markets differ from other asset classes by having all of the following characteristics except: A. segmented market B. homogenous product C. high transaction costs D. local market

homogenous product

Which type of estate ownership includes "right of survivorship"? A. tenancy in common B. joint tenancy C. leasehold interest D. tenancy by the entirety

joint tenancy

Which of the following would be considered a tangible asset? A. lease agreement B. land C. listed REIT D. mortgage

land

Which is NOT a form of Director Co-Ownership? A. joint tenancy B. timeshare C. tenancy by the entirety D. leasehold interest

leasehold interest

Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values? A. local government B. state government C. foreign government D. national government

local government

A property in the heart of New York and another in a rural area in Nebraska may both have modern amenities and similar square footage. Yet, the NYC property is priced significantly higher. This pricing phenomenon emphasizes which real estate market characteristic? A. heterogeneous B. highly segmented markets C. localized markets D. private negotiated contracts

localized markets

Which characteristic of real estate markets refer to the vast differences in values between similar properties based on their respective locations? A. heterogenous B. localized markets C. highly segmented markets D. less liquid/high transaction costs

localized markets

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties? A. financing attributes B. land attributes C. structural attributes D. location attributes

location attributes

Which of the following attributes of a home are the most difficult to observe and value? A. land or site attributes B. structural attributes C. location attributes D. financing attributes

location attributes

Which form of land description is known to be the most unambiguous and appropriate for use in legal documents? A. street address B. tax parcel number C. metes and bounds D. plat lot and block numbers

metes and bounds

Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset? A. fence B. building C. mortgage D. land

mortgage

Which of the following best defines tangle properties?

physical assets that can be owned, such as land or buildings

Which market is integrated rather than segmented like the space market? A. user (space) markets B. professional markets C. property markets D. capital markets

property markets

During a title search of a property that Tom intends to buy, it was discovered that there was a gap in the chain of title. What can Tom do to protect himself from potential legal issues in the future? A. purchase title insurance B. request the seller to fill the gap in the chain of title C. ignore the gap since the title search revealed no other issues D. only A and B

purchase title insurance

Which of the following rights is NOT part if the property bundle of rights? A. right of use and enjoyment B. right to play music at any volume C. right of exclusive possession D. right of disposition

right to play music at any volume

What does the term "Real Estate" represent when referred to as a bundle of rights? A. the industry and profession B. tangible assets such as land and buildings C. rights associated with exclusive possession, use, and disposition of the property D. the process of developing land

rights associated with exclusive possession, use, and disposition of the property

Under what circumstances can a life estate be legally imposed? A. when an individual willingly transfers their property rights to another person but retains a life interest in the property B. when a property is transferred through a will to an heir, with a life interest specified for another person C. special circumstances in law, such as a situation involving Florida homesteads D. when a property owner sells their property but retains a life estate to secure their right to live on the property for life

special circumstances in law, such as a situation involving Florida homesteads

In which form of co-ownership do all share the right of exclusive possession but may hold different sizes of shares? A. joint tenancy B. tenancy in common C. tenancy by the entirety D. leasehold interest

tenancy in common

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of improvement TO the land except: A. sewer systems B. streets C. the building and parking lot D. walkways

the building and parking lot

Sarah and David are married and own a property under tenancy of the entirety. If a creditor to whom David owes money tries to claim a part of the property, what would likely happen? A. the creditor can claim David's share of the property B. the creditor cannot claim any part of the property C. the creditor can place a lien under David clears his debt D. the property would be split, and David would have to sell his share to pay the debt

the creditor cannot claim any part of the property

If a real estate investor from Tokyo purchases office space in London, this best exemplifies which aspect of real estate markets? A. the influence of local governments on property values B. the segmentation found within user (space) markets C. the integration seen within property markets D. the role of state governments in professional real estate licensing

the integration seen within property markets

What distinguishes real estate properties from one another, making each one unique? A. they are homogeneous in nature B. their similar age and design C. their location, age, design and other unique features D. their similar location

their location, age, design and other unique features

Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement TO the land? A. fence B. personal property C. building D. water and sewer systems

water and sewer systems

What is a deed? A. an oral agreement B. written contract to convey a temporary interest C. written contract to convey permanent interest D. a rental agreement

written contract to convey permanent interest