GARE Questions & Answers

True or False: The real estate market is just like the market for any other commodity.

False

True or False: Fixtures are always real property.

True

True or False: Trade fixtures do not include replacement fixtures.

True

The accumulation of soil on an owner's property caused by the movement of water is known as? a. Accretion. b. Riparian. c. Assemblage. d. Annexation.

a. Accretion

Fructus industriales is another term for: a. Emblements. b. Easements. c. Appurtenances. d. Trade fixtures.

a. Emblements

When the action of water moves soil away from a property, that is referred to as: a. Erosion. b. Accretion. c. Heterogeneity. d. Assemblage.

a. Erosion

In a real estate contract, the legal description of the property describes the... a. Land only. b. Land and improvements. c. Land, improvements and all rights pertaining to the land. d. Land, improvements, rights and rights of easement.

a. Land only.

Which contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land? a. Metes and bounds. b. Rectangular survey. c. Subdivision lot and block. d. Government survey.

a. Metes and bounds.

A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. If no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership? a. Sheriff's deed b. Deed in partition c. Certificate of title d. Statutory warrant deed

a. Sheriff's deed

A deed is given and creates a joint tenancy. To be recorded the deed requires: a. Signature of the grantor. b. Signatures of the grantor and all of the joint tenants. c. Signatures of the grantor and one of the joint tenants. d. No signatures, the act of recording serves as constructive notice of ownership.

a. Signature of the grantor.

Residential property is composed primarily of: a. Single-family homes. b. Apartment buildings, no matter how large. c. Commercial buildings that may have a landlord's private apartment. d. A cattle ranch that has a sleeping room in a barn.

a. Single-family homes.

Carla, through her broker, is representing a buyer. Carla finds a house and the sale is made. Carla will receive her commission from which of the following? a. The broker that holds her license. b. The broker that listed the house that Carla sold. c. The settlement attorney handling the closing. d. The buyer, per his or her agreement with Carla.

a. The broker that holds her license.

Davis's son becomes the owner of Davis's land because Davis died without a will. a. The son has received title by descent. b. The son has received title by a cloud. c. The son has received title by an easement. d. The son has received title by a legacy.

a. The son has received title by descent.

Six months after Brady bought his home, he installed custom made storm windows and doors throughout the house. Later, when he sells his property, will these storm windows and doors automatically convey with the house? a. Yes, unless in advance of the sale, Brady clearly specifies that they will be removed. b. Yes, if he lived in the property at least a year before the sale. c. No, because they were not part of the original structure. d. No, because they can be removed, if they are taken off carefully.

a. Yes, unless in advance of the sale, Brady clearly specifies that they will be removed

A quitclaim deed conveys only the interest of the... a. grantor. b. claimant. c. quitor. d. property.

a. grantor.

A real estate license of some kind would be required by each of the following individuals, EXCEPT: a. An individual who locates tenants for a property in return for a fee from the landlord. b. A homeowner selling his or her personal residence. c. An individual who only works with buyers looking to purchase a residence and who is compensated only by those buyers. d. An individual who negotiates options to purchase properties for clients in return for a fee.

b. A homeowner selling his or her personal residence.

Real property would include: a. Fixtures. b. Each of these choices. c. Air space. d. Mineral rights.

b. Each of these choices

The donation of real estate for public use is: a. reverse condemnation. b. eminent domain. c. dedication. d. escheat.

c. dedication.

True or False There will always be plenty of land for everyone who wants to buy some.

False

True or False: A hospital is a commercial property.

False

True or False: A mushroom farm is industrial property.

False

True or False: An assessors parcel number is an adequate legal description.

False

True or False: An increase in value resulting from plottage is known as assemblage.

False

True or False: An industrial park is commercial property.

False

True or False: Combining two or more contiguous parcels real estate into a single parcel is known as plottage.

False

True or False: Density zoning restricts lot sizes.

False

True or False: In an ideal market, the forces of supply and demand are always chaotic.

False

True or False: Land cannot be legally described by referring to other publicly recorded documents.

False

True or False: Our free enterprise system is free from government economic controls.

False

True or False: Personal property is immovable.

False

True or False: Public property includes property owned by churches.

False

True or False: Realtors determine the price of land.

False

True or False: Trade fixtures may not be removed from leased premises once they are affixed.

False

True or False: A datum is used to describe both air and subsurface rights.

True

True or False: A nursing home is a special purpose property.

True

True or False: An informal reference is adequate for use in a rental agreement.

True

True or False: Because investments in real estate tend to be long-term, the real estate market is slow to respond to changes in demand.

True

True or False: Both the parcel of land beneath the air lot and the elevation of the air lot are described for air lots.

True

True or False: In order to enhance the value of a piece of property, a reasonable relationship must exist between a particular parcel of real estate and the character of the improvement.

True

True or False: Someone may be able to divert water for his or her own use even if it is not fair to other owners.

True

Owner Kelly is leaving the area for a one-year period. She asks salesperson Boren to manage her rental house for $45 per month while she is gone. Which of the following is true in this situation? a. Boren must work through her broker. b. Boren must put the $45 in an interest-bearing escrow account. c. This is OK because the compensation is less than $1,000. d. This is OK because the time element is not more than one year.

a. Boren must work through her broker.

A trade fixture: a. Can be affixed to real property without becoming a legal part of the property. b. When affixed to a real property becomes an improvement. c. Automatically conveys with real property when sold. d. Cannot be removed.

a. Can be affixed to real property without becoming a legal part of the property

David owns property along the banks of the Little Big Horn River. Scott owns property adjoining David's, and has access to the highway, but not to the river. Scott and David grant each other appurtenant easements to cross each other's property to get to the road and the river respectively. The riparian rights associated with property ownership belong to: a. David because his property abuts the river b. Scott, because he has an easement to cross David's land c. Both David and Scott d. Neither, the granting of the easement revoked David's rights and Scott's property does not abut the river

a. David because his property abuts the river

Industrial property includes all but the following: a. Parking lots. b. Warehouses. c. Factories. d. Utility plants.

a. Parking lots

Which of the following do NOT need to be recorded? a. A document affecting title to land. b. A month-to-month lease. c. An easement for a fence. d. A deed of trust.

b. A month-to-month lease.

All of the following items are personal property EXCEPT? a. Trade fixtures. b. A privacy fence. c. Patio furniture. d. Portable dishwasher.

b. A privacy fence

Property taxes on cooperative units are assessed in the form of: a. Individual tax bills for each unit. b. A single tax bill prorated among individual units. c. Annual tax bills based on the type of unit. d. Biannual tax bills based on the type of unit.

b. A single tax bill prorated among individual units.

Joe gives Bill a quitclaim deed to 5 acres of land. A year later a court determines that Joe did not have any interest in the property. Which of the following is true with respect to Bill's interest in the land? a. Bill owns the land since the court action took place after he received the deed from Joe. b. Bill has no interest in the land. c. Bill can win a suit against Joe for misrepresentation. d. The court will order Joe to return Bill's purchase price.

b. Bill has no interest in the land.

A salesperson represents the: a. Seller b. Broker c. Buyer d. Lender

b. Broker

An associate broker who sells a house for a client is paid a commission by the: a. Employing client only. b. Broker only. c. Customer. d. Either by the client or the broker.

b. Broker only

Soil from Smith's land is washed down and deposited on Brown's property. Who owns the soil? a. Smith. b. Brown. c. The state. d. The city or county in which the property is located.

b. Brown

The rights of a condominium owner are defined by the: a. Management agreement and the landlord-tenant laws. b. Bylaws and the condominium declaration. c. Bylaws and the corporate charter. d. Bylaws and the landlord-tenant laws.

b. Bylaws and the condominium declaration.

An adequate metes and bounds description will have all of the following EXCEPT: a. A definite point of beginning. b. Four sides. c. Closure. d. linear measurements and compass directions.

b. Four sides.

All of the following are true about trade fixtures EXCEPT? a. They are articles of personal property. b. If affixed to leased premises, they belong to the landlord. c. They are necessary parts of a tenant's trade or business. d. They do not usually include replacement fixtures.

b. If affixed to leased premises, they belong to the landlord

A couple is interested in buying a house that has an odd shaped living room. The current owners had a custom-made, free-standing bookcase built to specifically fit into one part of the room. "The buyer believes this is a fixture because it is uniquely adapted to this specific room. The seller believes this is not a fixture because it is free-standing. To avoid any misunderstandings, what should the listing licensee do?" a. Assure the seller that there is nothing to worry about. b. Include a provision in the agreement of sale (and listing contract) that states whether the bookcase is included with the sale or not. c. Assure the buyer that there is nothing to worry about. d. file an interpleader action in court.

b. Include a provision in the agreement of sale (and listing contract) that states whether the bookcase is included with the sale or not

Boundary markers of land, either natural or man-made, are: a. Benchmarks. b. Monuments. c. Liens. d. Metes.

b. Monuments.

LUI scales that relate land, building coverage, and open spaces have become increasingly important in the development of: a. Condominium projects. b. PUDs. c. Time-shares. d. City planning.

b. PUDs.

It may be assumed that a deed has been delivered and accepted if it has been: a. Signed. b. Recorded. c. Sealed. d. Notarized.

b. Recorded.

Which of the following is NOT essential to the validity of a deed? a. Name and signature of the grantor. b. Recording of the deed. c. Words of conveyance. d. Property description.

b. Recording of the deed.

A tree on a property is real property while rooted in the soil. When the tree is cut down, it becomes personal property. This is an example of: a. Conversion. b. Severance. c. Appropriation. d. Reassessment.

b. Severance

Which of the following is NOT essential for a deed to be valid? a. Signature of the grantor. b. Signature of the grantee. c. Words of conveyance. d. Adequate description of the property.

b. Signature of the grantee.

Two real estate developers are working on similar but competing commercial developments. Both projects are finished at approximately the same time and are of similar quality and purpose. Which of the following would most likely characterize the reasons that one succeeds while the other fails? a. Supply and demand. b. Situs. c. Plottage value. d. Nonhomogeneity.

b. Situs

Which of the following best describes a parcel of land? a. The surface of the earth including control of all minerals and substances beneath. b. The surface of the earth extending down to the center and upward to the sky. c. The earth's surface closely marked by certain boundaries. d. The surface of the earth extending down a reasonable distance and up into the air a reasonable distance.

b. The surface of the earth extending down to the center and upward to the sky

When a developer records a plat showing property in three dimensions (length, width and height), he or she would be developing: a. An industrial park complex b. A PUD which is for single family homes only c. A multi-story condominium complex d. A large one-story shopping mall

c. A multi-story condominium complex

A real estate developer who plans to build a large industrial park must buy property from three different owners before he can proceed with his development plans. This would be considered... a. The development stage of planning. b. Plottage value. c. Assemblage. d. Contiguous combination.

c. Assemblage

Merging two or more properties into common ownership is known as ______, while any increase in value that results is known as ______. a. Progression; regression. b. Plottage; assemblage. c. Assemblage; plottage d. Situs; production.

c. Assemblage; plottage

Sam has obtained his broker's license but is not functioning in a supervisory capacity. Instead, he is acting in the capacity of a salesperson. Sam is a(n): a. Principal Broker. b. Salesperson. c. Associate Broker. d. None of these choices.

c. Associate Broker

Which of the following is NOT an example of a real estate contract? a. Purchase and sales agreement. b. Lease agreement. c. Bill of sale. d. An offer to purchase agreement.

c. Bill of sale

Which of the following estates would be subject to probate? a. A person died intestate. b. A person died testate. c. Both a person who died testate and a person who died intestate. d. Neither a person who died testate nor a person who died intestate.

c. Both a person who died testate and a person who died intestate.

All property other than real property is known as: a. Fixtures. b. Appurtenances. c. Chattel. d. Easements.

c. Chattel

A developer is considering construction of a new subdivision in a rural area on a very hilly tract of land. What type of map will be most beneficial to the developer in making his decision to build? a. Elevation. b. Plat. c. Contour. d. Flood plain.

c. Contour.

Each of the following is a test of whether or not something is a fixture, EXCEPT: a. Method of attachment. b. Adaptability. c. Cost. d. Relationship of the parties.

c. Cost

Title to real property passes when a deed is: a. Executed. b. Acknowledged. c. Delivered and accepted by the grantee. d. Recorded.

c. Delivered and accepted by the grantee.

Which type of deed creates the most liability for a seller? a. Special warranty deed b. Universal warranty deed c. General warranty deed d. Quitclaim deed

c. General warranty deed

Which of the following deeds creates the greatest liability for the grantor? a. Quitclaim deed. b. Bargain and sale deed. c. General warranty deed. d. Special warranty deed.

c. General warranty deed.

A licensed real estate salesperson may legally accept an extra commission for a difficult sale from: a. An appreciative seller. b. A thankful buyer. c. His or her broker-employer. d. The mortgage lender.

c. His or her broker-employer

A prospective buyer noticed an ornate flag pole attached to the front porch of the house she wants to purchase. She wants to make certain that the flag pole is included in the sale. What should the agent do? a. Because the pole is attached and will automatically convey b. Call the seller and advise them the buyer wants the pole c. Include the flag pole in the offer to purchase d. Photograph the flag pole as evidence of its attachment

c. Include the flag pole in the offer to purchase

Ima Conman owns a house. He sells his house to Mr. Dupe who pays all cash and agrees not to record the deed and not to move in for six months. A month after the first sale, Mr. Conman then sells the same house to Mr. Clueless, who records the deed and moves into the property. Some months later Mr. Dupe arrives to take possession of the house and discovers Mr. Clueless. If the case gets to court, which of the following is most likely to be true: a. Mr. Dupe will be awarded title since he bought the house before Mr. Clueless. b. The court would order the home sold and the proceeds divided between the 2 claimants. c. Mr. Clueless will obtain title by estoppel. d. Mr. Dupe will obtain title by estoppel.

c. Mr. Clueless will obtain title by estoppel.

The right of one party to possess and use real property exclusive of others is: a. Hypothecation. b. Partition. c. Ownership. d. Prescription.

c. Ownership

Barney owns a lot valued at $84,000. He purchases an adjoining lot for $66,000 and merges the two properties. The current appraised value of the newly formed lot is $177,500. This is an example of: a. Accretion. b. Avulsion. c. Plottage. d. Hypothecation.

c. Plottage

A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct? a. This is illegal advertising. b. It is allowed so long as the advertising states not yet completed. c. This is allowed if they are labeled not yet completed and a completion date is specified. d. This is allowed since the rule of caveat emptor reigns.

c. This is allowed if they are labeled not yet completed and a completion date is specified.

Which of the following is NOT a test of a fixture? a. Manner of attachment. b. An agreement between the parties. c. Time of attachment. d. Manner of adaptation.

c. Time of attachment

In determining whether an item is a fixture, which of the following would NOT be considered? a. Method of attachment. b. Adaptation to the real estate. c. Value of the item. d. Legal interest of the annexing party.

c. Value of the item

Should a potential buyer of a condominium be particularly concerned about the financial condition of the homeowners association? a. Yes, because the homeowners association pays the property taxes on the entire complex. b. No, because each owner pays his or her own share of the property taxes. c. Yes, because if there inadequate reserves and repairs need to be made it could result in assessments. d. No, because each owner pays his or her own mortgage payment.

c. Yes, because if there inadequate reserves and repairs need to be made it could result in assessments.

In terms of ownership, PUDs most clearly resemble... a. leasing. b. cooperative ownership. c. condominium ownership. d. time-share ownership.

c. condominium ownership.

A parcel of land described as the S ½ of the NW ¼ of the NE ¼ of Section 12, T2N, R4E would contain how many acres? a. 160. b. 80. c. 40. d. 20.

d. 20. Section 12 -- like all sections -- has 640 acres. Start with the 640 acres then work backwards, dividing by the denominator (bottom number) in each fraction. 640/4/4/2 = 20

A parcel of land that is 36 miles square would contain how many townships? a. 1. b. 4. c. 16. d. 36.

d. 36.

Which of the following is NOT an economic control on the free enterprise system? a. Power of taxation. b. Control of the money supply. c. Granting of tax shelters or tax credits to spur investments. d. Allowing voters to decide by referendum if they want a bond issue to pay for a new school.

d. Allowing voters to decide by referendum if they want a bond issue to pay for a new school.

Which of the following is NOT recognized as personal property? a. A lease. b. A mortgage that secures personal property. c. Cattle and horses. d. An easement.

d. An easement

A quitclaim deed may be used to: a. Transfer ownership of a fee simple estate b. Transfer interest in a life estate c. Terminate an easement d. Any of the above

d. Any of the above

The merging of adjacent properties into one of common ownership or usage is known as: a. Annexation. b. Abutment. c. Marshaling. d. Assemblage.

d. Assemblage

Meredith "fell in love" with and made an offer to purchase a beautiful Cape Cod style house. When she learned that the seller had accepted her offer, she was so happy that she agreed to pay the selling agent an extra commission for her effort. How will the sales agent receive her "extra" commission, when the sale is consummated? a. From the buyer b. From the seller and buyer as agreed c. From the settlement attorney handling the closing d. From her employing broker

d. From her employing broker

Of the given choices, the best way to describe an irregularly shaped parcel is: a. Government survey. b. Geodetic survey. c. Constant survey. d. Metes and bounds.

d. Metes and bounds.

Mineral rights: a. Are considered to be personal property. b. Always pass with the land. c. Cannot be sold separately from the land. d. Pass with the land, unless otherwise specified in the deed.

d. Pass with the land, unless otherwise specified in the deed

Which of the following would be classified as a fixture? a. Pond. b. Pasture. c. Diesel tractor. d. Rail fence.

d. Rail fence

A bill of sale would be used instead of a deed for all EXCEPT which of the following? a. Boat. b. Car. c. Motorcycle. d. Real estate.

d. Real estate

Which of the following choices would be LEAST likely to be public property? a. Parks. b. Schools. c. Libraries. d. Retail stores open to the public.

d. Retail stores open to the public.

Which of the following is not considered a legal description? a. Metes and bounds. b. Lot and block. c. Government method of survey. d. Street address, city, state and zip code.

d. Street address, city, state and zip code.

Which of the following is NOT a legal description of real property? a. Metes and bounds. b. Lot and block. c. Rectangular survey system. d. Taxpayer Federal ID#.

d. Taxpayer Federal ID#.

Jones died and left a will in which Titus was named to settle Jones' affairs. Titus would be called the estate's... a. administrator. b. testator. c. accountant. d. executor.

d. executor.