Real Estate Exam - Chapters 1-3

What is an advisory service provider?

A broker who renders real estate services for a fee

Which is true of a cooperative?

A cooperative may hold an owner liable for the unpaid operating expenses of other owners.

One difference between a cooperative estate and a condominium estate is that:

A default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.

What is the "Doctrine of Prior Appropriation?"

A doctrine that gives the state control of water use improvements

How is a conventional life estate created?

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

What is true of homestead?

A homestead interest cannot be conveyed by one spouse.

What distinguishes a freehold estate from a leasehold estate?

A leasehold endures only for a specific period of time.

A portion of land delineated by boundaries is?

A parcel or tract

What is an emblement?

A plant or crop that is considered personal property

Which is considered real property?

A tree growing on a parcel of land

Which of the following is an illustration of the legal concept of elective share?

A widow who was excluded from a will makes a claim to a portion of the couple's principal residence.

Dower refers to:

A wife's life estate interest in her husband's property.

Private ownership rights in this country are not what?

Absolute

The highest form of ownership interest one can acquire in real estate is the:

Absolute fee simple estate

An item can be converted from real to personal property and vice versa by means of which processes?

Affixing and severance

The laws that are most relevant to agents and brokers are those relating to:

Agency Contracts Disclosure Environmental impact Fair housing

A simple definition of real estate is?

Air, water, land, and everything affixed to the land.

Oversees groups of properties, or portfolios.

Asset managers

What does ARELLO stand for?

Association of Real Estate Licensed Law Officials

Under the doctrine of littoral rights, an owner claims ownership of all the land underlying a lake where there are three other abutting property owners. Why would the owner's claim be invalid?

Because the state owns the underlying land

What is the primary thrust of federal involvement in real estate law?

Broad regulation of usage

A seller, buyer, landlord or tenant hires this person to procure the opposite party to the sale or lease transaction.

Broker

Which professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?

Brokers and agents

Unlike tenants in common, joint tenants:

Cannot will their interest to a party outside the tenancy

Property that refers to retail and office properties, and industrial real estate.

Commercial Property

Some of the individual brokerage services that one might perform for a pre-set fee

Comparative price analysis Database search Prospect screening Site analysis

Which level of government controls zoning laws?

County and local

The major sources of real estate law are legislation at federal, state and local level, and:

Court decisions

Real estate professionals perform the following property-related functions:

Creation and improvement Management and maintenance Demolition Investment ownership Regulation Transfer

Serve to remove properties that are no longer economically viable from the market.

Demolition experts

People in the real estate business who primarily focus on creating new properties are:

Developers

Heterogeneity means?

Different

A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists?

Estate from period to period

The distinguishing features of a condominium estate are:

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

Which way of specializing is common in the real estate brokerage business?

Financing background of client

Federal and state statutes, as well as a large body of court decisions, generally referred to as common law, circumscribe what?

How real estate can be developed, managed and transferred.

What are the three unique physical characteristics of land?

Immobile, indestructible, and heterogeneous

The three unique physical characteristics are?

Immobility, Indestructibility and Heterogeneity

Encumbrances and police powers are:

Interests that do not include possession

Property that is held by its owners for investment purposes.

Investment Property

When a tenant in common dies, what happens to the tenant's interest in the estate?

It passes by probate to the deceased tenant's heirs.

When a joint tenant dies, what happens to the tenant's interest in the estate?

It passes to the surviving joint tenants

The overriding test of whether an item is a fixture or personal property is:

Its definition as one or the other in a sale or lease contract.

Which of the following is the best definition of real estate?

Land and everything permanently attached to it

The primary distinction between the legal concepts of land and real estate is that:

Land does not include man-made structures

Which of the following life estates is created by someone other than the owner?

Legal life estate

Agents must develop a thorough awareness of their:

Local market and the properties within it

An interest in real estate is best defined as ownership of:

One or more of the bundle of rights to real property

The "four unities" required to create a joint tenancy include which condition?

Parties must acquire respective interests at the same time.

Real estate in the United States may be owned by?

Privately by individuals and private entities or publicly by government entities.

In a community property state, a basic distinction is made between:

Property acquired during a marriage and property already owned by each party at the time of marriage.

Oversees specific properties on behalf of the owners, making sure the condition of the property and its financial performance meet specific standards?

Property managers

The two principal types of managers are:

Property managers and Asset managers

Property management and real estate asset management are both real estate management professions. The primary distinction between the two is that:

Property managers handle day-to-day operations while asset managers manage portfolios of properties.

The 5 specializations for brokers and agents.

Property type Geographical area Type of transaction Type of client Type of relationship

State license laws are administered in each state by a?

Real estate commission

One of the most important kinds a knowledge a realtor should know.

Real estate financing

The primary distinction between legal concepts of real estate and real property is that:

Real property includes ownership of a bundle of rights

The 4 property type agents

Residental Commercial Industrial Land

Classifications of Real Estate by Use

Residential Residential Income Office Retail Industrial Farm and Ranch Special purpose Land

Property that is owned and used for habitation.

Residential Property

The Property type specializations are:

Residential Property Commercial Property Investment Property

The term "commercial property" generally refers to:

Retail, office and industrial properties

Which term refers to the rights of a property that abuts a stream or river?

Riparian

A condominium owner can:

Sell or mortgage the condominium unit without hindrance from individual owners of neighboring units.

A tenant in common can:

Sell, encumber or transfer his or her interest to an outside party without the consent of the other tenants in common.

Surface rights, air rights and subsurface rights are:

Seperable

The owner of a cooperative owns:

Shares in a corporation or association and a proprietary lease in a physical unit.

Homogeneity means?

Similarity

The level of government which is most active in regulating real estate licensees is the:

State government

Which is an example of intangible property?

Stock

If a co-worker in a joint tenancy or tenancy in common wants to dispose of his or her interest against the wishes of the other co-owners, the co-owner can:

Sue in court for a termination of the tenancy and partition of the property.

The most common form of co-ownership when the owners are not married is:

Tenancy in common

Three people have identical rights but unequal shares in a property, share and indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is:

Tenancy in common

When a single individual or entity owns a fee or life estate in real property, the type of ownership is:

Tenancy in severalty

What guarantees the right of private ownership of real estate in the United States?

The Constitution

When real property is held in a land trust, who controls the property?

The beneficiary

In a cooperative, real property is owned only by:

The corporate entity of the cooperative association.

The distinguishing feature of a defeasible fee simple estate is that:

The estate may revert to a grantor of heirs if the prescribed use changes.

A unique feature of a land trust is that:

The identity of the beneficiary may not be identified.

If a joint tenant sells his or her interest to an outside party:

The new owner is a tenant in common

Upon the death of the owner, a life estate passes to:

The original owner or other named person

Who owns the property in a time-share estate?

The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.

What distinguishes a pur autre vie life estate from an ordinary life estate?

The pur autre vie estate endures only fro the lifetime of a person other than the grantee.

The right to use real property is limited by:

The right of others to use and enjoy their property

The legal concept of land encompasses:

The surface area of the earth Everything beneath the surface of the earth extending downward to its center. All natural things permanently attached to the earth The air above the surface of the earth extending outward to infinity.

Which of the following is included in the legal concept of land?

The surface of the earth an all natural things permanently attached to the earth.

Which is true of a joint tenancy?

The tenants have an equal and indivisible ownership interest.

Which is true of a tenancy in common?

The tenants share an indivisible interest

When an estate is held in a trust, who holds legal title?

The trustee

A condominium owner's assessments for maintenance and operation are based on:

The unit's pro rata share of the property value as defined in the declaration.

In contrast to a tenancy in common, in a joint tenancy:

There is a single title to the property

Two individuals can own a house as tenants by the entireties if:

They are married

What part of a non-navigable waterway does the owner of an abutting property own?

To the middle of the waterway

Which is included in the bundle of rights inherent in ownership?

To transfer

A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered what?

Trade fixtures that are personal property

Who are the essential parties involved in an estate in trust?

Trustor, trustee and beneficiary

In a time-share freehold, owner acquire:

Undivided interests as tenants in common.

One of the benefits offered by ownership in a tenancy by the entireties is:

the estate is subject to foreclosure only for jointly incurred debts.

State real estate license laws comprise:

the primary body of laws and regulations governing real estate brokerage practice.