section 1 real estate exam questions

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

A Federal ID # identifies a person or a corporation. It does not identify real property. The other choices are all valid methods of legal description. The correct answer is: Taxpayer Federal ID#. Question

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

A bill of sale is used to convey personal property, not real property. The correct answer is: Bill of sale.

A mushroom farm is industrial property. Select one: a. True b. False

A mushroom farm is agricultural property. The correct answer is: False

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

A street address is NOT a valid legal description because the street name is subject to change. The correct answer is: Street address, city, state and zip code.

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

An easement is not recognized as personal property. The correct answer is: An easement.

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

Any property not known as real property is chattel (personal property). The correct answer is: Chattel.

Economic controls on the economy in general are enacted by: Select one: a. The federal government only. b. State governments only. c. Both federal and state governments. d. Neither federal nor state governments.

Economic controls on the economy are enacted by both the federal and state governments. The correct answer is: Both federal and state governments.

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

Metes and bounds contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land. The correct answer is: Metes and bounds.

Which of the following in NOT automatically included in the sale of real property? Select one: a. An easement. b. Plumbing fixtures. c. Trade fixtures. d. Built-in kitchen appliances

Trade fixtures are personal property of the tenant who installed them for the operation of his business. The correct answer is: Trade fixtures.

Realtors determine the price of land. Select one: a. True b. False

Supply and demand determines the price of land. The correct answer is: False

When pricing is allowed to react to the principles of supply and demand, the free enterprise system determines what will be produced. Select one: a. True b. False

The statement is true. The correct answer is: True

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

The right to possess and use property exclusive of others is the text book definition of ownership. The correct answer is: Ownership.

In determining whether an item is a fixture, which of the following would Na. Method of attachment. b. Adaptation to the real estate. C. Value of the item. d. Legal interest of the annexing party.OT be considered?

The value of an item is immaterial to determining whether or not it is a fixture. It is not one of the listed tests of a fixture. The correct answer is: Value of the item.

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

This is known as accretion. The correct answer is: Accretion.

Price is the amount paid for a parcel of real estate in an actual transaction. Select one: a. True b. False

This is true. The correct answer is: True

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

This is true. The correct answer is: True

A nursing home is a special purpose property. Select one: a. True b. False

A nursing home is considered a special purpose property. The correct answer is: True

The real estate market is just like the market for any other commodity. Select one: a. True b. False

Because each parcel of land is unique and has distinctive characteristics, no parcel is like any other and thus the real estate market is unlike any other commodity market. The correct answer is: False

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? Select one: 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.

Boren is "employed" by her broker and can only receive compensation through her broker for any act of real estate brokerage, therefore the arrangements must be made with the broker and Kelly. No salesperson may act on his or her own. All brokerage activity must be through the employing broker. The correct answer is: Boren must work through her broker.

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

Fructus industrialis is another term for emblements. The correct answer is: Emblements.

Land cannot be legally described by referring to other publicly recorded documents.a. True b. False

Land can be described by referring to other recorded documents, if the documents contain an adequate legal description. The correct answer is: False

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

Parks, schools and libraries are almost always public property. A retail store is not public property because it is not owned by a governmental agency. The correct answer is: Retail stores open to the public.

Public property includes property owned by churches. Select one: a. True b. False

Public property is government owned property. The correct answer is: False

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? Select one: 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

Remember, a sales agent only receives compensation from his or her employing broker. The correct answer is: From her employing broker

If a property owner has littoral rights, it signifies that his property is on the edge of: Select one: a. A river. b. A stream. c. A navigable waterway. d. An ocean.

Riparian rights are rights of a property owner whose property abuts on a river, stream or flowing waterway. Littoral refers to tidal waters such as lakes and oceans. The correct answer is: An ocean.

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? Select one: a. 160. b. 80. c. 40. 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 The correct answer is: 20.

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

Soil being removed from a parcel by the action of water is known as erosion. The correct answer is: Erosion.

The least accurate method of legal description is the: Select one: a. Monuments method. b. U.S. Government Rectangular Survey method. c. Recorded plat. d. Metes and bounds method.

The monuments approach is the least accurate approach to legal description because monuments are sometimes destroyed. The metes and bounds approach is similar, but will use more precise measurements and descriptions. The correct answer is: Monuments method.

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

The salesperson is an "agent" of the broker that he represents. The correct answer is: Broker

Trade fixtures may not be removed from leased premises once they are affixed. Select one: a. True b. False

The statement is false. Trade fixtures are removable from leased premises. The correct answer is: False

A bill of sale is to personal property as a deed is to real property. Select one: a. True b. False

The statement is true -- bills of sale are used to transfer personal property while deeds are used to transfer real property. The correct answer is: True

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. Select one: a. True b. False

The statement is true. For example, what is an over improvement in one neighborhood might be an expected feature in another neighborhood. The correct answer is: True

Fixtures are always real property. Select one: a. True b. False

The statement is true. Trade fixtures are personal, "fixtures" are real. The correct answer is: True

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... Select one: a. The development stage of planning. b. Plottage value. c. Assemblage. d. Contiguous combination.

This would be considered assemblage. The correct answer is: Assemblage.

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

Cost is NOT one of the tests of a fixture. Of the items listed, only plumbing fixtures are an AUTOMATIC conveyance. Trade fixtures and emblements generally do not convey. As a general rule anything that is portable never conveys. Obviously if these other items are included in the contract they could convey. We are talking about automatic conveyance. The correct answer is: Cost.

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

Metes and bounds contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land. The correct answer is: Metes and bounds.

When a metes and bounds survey is used as the legal description of property, the word metes refers to: Select one: a. Monuments b. Areas twenty-four miles square c. Parallel lines that run north and south d. The length in inches, feet or yards of a property line

Metes is the length of a property line in inches, feet, yards, rods or any linear measurements. Bounds are the monuments used to identify the boundary of the property. The correct answer is: The length in inches, feet or yards of a property line

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

Monuments can be a natural object such as a tree, a rock or river. They can also be artificial markers, something that is permanently placed by man. A surveyor's benchmark is an example of an artificial monument, but when used to define the area of a parcel of land, it is considered a monument. The correct answer is: Monuments.

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? Select one: 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.

Storm windows and doors which are "custom made" for a property are considered fixtures since they have been adapted to the property. In order for Brady to legally remove them after the sale of the property, Brady would have to clearly indicate BEFORE THE SALE that these items are excluded from the sale. The correct answer is: Yes, unless in advance of the sale, Brady clearly specifies that they will be removed.

Which of the following would provide the least accurate description of a parcel of land? Select one: a. Metes and bounds. b. Rectangular survey. c. Lot, block and subdivision. d. Tax assessor's reference number.

Tax assessor's numbers are not used for legal descriptions. The correct answer is: Tax assessor's reference number.

The actual amount of money paid for a particular parcel of real estate is said to be that property's: Select one: a. Value. b. Price. c. Market value. d. Settlement value.

The actual amount of money paid for a particular parcel of real estate is said to be that property's price. The correct answer is: Price.

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

When two or more adjoining properties are combined into a larger tract of land, it is known as assemblage. Think of it as assembling more than one property together. The correct answer is: Assemblage.