National Practice National Ownership (Questions ONLY, ANSWERS WILL BE REVEALED WITH PROPER SUBSCRIPTION)
What five economic characteristics affect the value of land in the marketplace?
What are the three physical characteristics of land?
Explain the differences between the legal concepts of land and real estate.
Define special purpose real estate and give an example.
National Practice
5. Name the five major rights included in the bundle of rights to real estate.
6. Define the “right to use” and describe its limitations.
7. What is the difference between littoral rights and riparian rights?
8. What are the legal tests that determine if an item is a fixture?
9. Name the aspects of real property interests that are regulated by government.
10. Describe the kinds of interests regulated at each level of government.
11. Even though it is attached to a structure, an item may be considered personal property rather than real property if
A. the owner originally intended to remove it after a period of time.
B. it can be removed without altering the appearance of the structure.
C. it is unnecessary to the physical integrity of the structure.
D. the owner installed it at some time after acquiring the real property.
12. Which of the following is considered to be real property?
A. Natural things movable by law.
B. Notes secured by mortgages on real estate.
C. House plants.
D. Permanent fixtures.
13. Name some of the primary uses of legal descriptions.
14. Give a simple description of the metes and bounds method of description.
15. What are the main elements of the rectangular survey system?
16. In the rectangular survey method, why is it necessary to have guide meridians, standard parallels, and quadrangles?
17. Why is it necessary for a complete legal description to include the county and state?
18. A lease is an example of a(n)
A. transfer of a portion of the bundle of rights.
B. encroachment on the bundle of rights.
C. transfer of the complete bundle of rights.
D. transfer of surface rights.
19. The right to build a taller structure on top of an existing structure is an example of
A. the right to encumber.
B. surface rights.
C. the right to liquidate.
D. air rights.
20. What are riparian rights concerned with?
A. Properties within a 3-mile radius of a seaport.
B. Properties used for grazing livestock.
C. Properties that are in designated drought areas.
D. Properties adjacent to flowing bodies of water.
21. Who owns the land under a navigable river?
A. Owners of properties that abut the river.
B. No one.
C. The state.
D. The municipality, if the area is incorporated.
22. A property owner has the right to transfer water rights
A. if the owner has not previously separated the bundle of rights.
B. only to the owner of an adjoining property.
C. only if there are water rights attached to the property.
D. without constraint.
23. Real property can be converted into personal property through the process of
A. severance.
B. accession.
C. affixation.
D. inference.
24. Littoral rights concern which of the following bodies of water?
A. Lakes entirely contained within the boundaries of an owner’s property.
B. Streams and rivers.
C. Navigable lakes, seas, and oceans.
D. Navigable streams and rivers.
25. What is a “fixture?”
A. Any item of personal property located within the boundaries of a parcel of real estate
B. An item of personal property that has been converted to real property
C. An item of real property temporarily placed on land for the purpose of conducting a business
D. An item of personal property that has been left in one location for a period of one year
26. An “improvement” is
A. a modification of land to make it more useful.
B. a modification of a structure to enhance its value.
C. a structure intended as a permanent attachment to land.
D. a parcel of land that has been prepared for development.
27. The legal concept of land does NOT include
A. the surface of the earth.
B. minerals below the surface of the earth.
C. trees and grass.
D. man made improvements.
28. Which of the following is a role of the federal government in real property rights?
A. Establishment of broad standards of usage.
B. Establishment of real estate license laws.
C. Training and licensing of real estate agents.
D. Levying of real estate taxes.
29. In a sale transaction, all fixtures are
A. included in the sale unless named as exceptions.
B. automatically excluded from the sale.
C. required to be removed before closing.
D. sold separately from the real estate.
30. The right to encumber a property means that the owner can
A. build fences and road blocks.
B. use the property as collateral for debt.
C. lease the property.
D. assign the bundle of rights to another.
31. What is characteristic of the allodial system of ownership?
A. The government owns the land.
B. Individuals own land directly.
C. Land ownership is between 2 or more parties.
D. Individuals have only temporary use of land.
32. A commercial tenant installed some ice cream coolers to sell ice cream. Which of the following statements best describes what happens to the coolers upon the expiration of the lease?
A. The tenant would be able to take the coolers only if the tenant paid the owner the fair market value of the cases.
B. The tenant would be able to take the coolers prior to the expiration of the lease since they were trade fixtures that were installed by the tenant.
C. The landlord would be able to keep the coolers because once the coolers were installed they become real property.
D. The owner would be able to keep the coolers as they would be considered emblements.
33. “Real estate” includes such things as
A. fences, sidewalks, and piers on a parcel of land.
B. mobile homes temporarily parked on a parcel of land.
C. timber that has been cut and is lying on a parcel of land.
D. business equipment an owner or tenant has placed on a parcel of land.
34. If a tenant farmer’s lease expired, but several months later he is able to go back and harvest the corn crop, the crops would be known as what?
A. Trade fixtures
B. Emblements
C. Fructus naturales
D. Fixtures
35. Riparian rights concern which of the following bodies of water?
A. Lakes
B. Seas and oceans
C. Streams and rivers
D. Navigable lakes
36. Which of the following is a simple definition of real estate?
A. Real estate is property traded between owners and buyers for money.
B. Real estate is that it is air, water, land, and everything affixed to the land.
C. Real estate is any building affixed to land owned by an individual.
D. Real estate is residential property, but not commercial property.
37. Name the components of a description using the recorded plat method.
38. Explain how a datum or benchmark is used to describe the elevation of a property in a legal description.
39. Define “undivided interest” in real estate.
40. Discuss how the right of possession determines what kind of estate or interest a party has in real estate.
41. What primarily distinguishes freehold estates from leasehold estates?
42. What is the highest form of ownership interest one can acquire in real estate and why?
43. What are the essential characteristics of fee simple defeasible estates?
44. How is a life estate different from a fee simple estate?
45. What is the primary distinction between a freehold estate and a leasehold estate?
46. The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restriction on usage. Why are other estates less desirable?
47. Which type of leasehold estate is commonly referred to as a periodic tenancy?
48. What are a tenant’s primary obligations when leasing a property?
49. States that do not have dower and curtsey usually have
A. Community property laws and full share laws.
B. Community property laws and elective share laws.
C. Community property laws and election decree laws.
D. Community property laws and final decree laws.
50. Homestead, dower and curtesy, and elective share are examples of a
A. a conventional life estate.
B. a legal life estate.
C. an estate created by an owner’s agreement.
D. a fee simple absolute.
51. Encumbrances are examples of
A. illegal interests.
B. eminent domain.
C. public interests.
D. private interests.
52. Of the two kinds of fee simple estate, the kind that is a perpetual estate with no usage restrictions is the
A. fee simple aggregate.
B. fee simple absolute.
C. fee simple defeasible.
D. fee simple determinable.
53. Which of the following statements about eminent domain is TRUE?
A. It can only be applied in cases where the owner agrees with the government’s superior claim.
B. The government agency exercising the power is under no obligation to compensate the owner.
C. The government may take a privately-owned property and use it for any purpose whatever, including reselling for a profit.
D. No private property is exempt from the exercise of this power.
54. In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant?
A. Fee simple absolute
B. Land Trust
C. Life estate with a remainderman
D. Fee simple defeasible
55. To take a property by eminent domain, the government must show that
A. the owner is not putting the property to its highest and best use.
B. the property will be used for the public good.
C. the property has limited value on the open market.
D. the owner agrees to part with the property.
56. The grantor of a life estate names a third party to receive the title when the life tenant dies. What will the third party hold?
A. A less-than-freehold estate.
B. A third party estate.
C. A remainder estate.
D. A pass-along estate.
57. If a tenant occupies a leased property without the consent of the landlord after a lease expires, the type of estate that results is called
A. an estate at sufferance.
B. a holdover estate.
C. an adverse leasehold.
D. a hostile leasehold.
58. If a life tenant purposely damages or misuses a property it is known as what?
A. Pillage
B. An act of contempt
C. Vandalism
D. An act of waste
59. The distinguishing feature of a condition subsequent estate is
A. the grantor must retake possession within a certain time frame if the grantee violates a restriction.
B. the grantor automatically regains title if the grantee violates a restriction.
C. the estate passes to a third party if the grantee violates a condition.
D. the grantee can impose new restrictions on the grantee’s use of the property even after title has passed.
60. What is the difference between a fee simple determinable estate and a fee simple condition subsequent estate?
A. There is no reversion of ownership in determinable estate.
B. There is no reversion of ownership in condition subsequent estate.
C. Reversion of ownership is automatic in the determinable estate.
D. Reversion of ownership is automatic in the condition subsequent estate.
61. If a party has an interest in real estate that includes the right of possession, the party owns
A. an encumbrance.
B. a fractional part of an estate.
C. an enjoinment.
D. an estate in land.
62. An estate from period-to-period will continue as long as
A. the tenant makes, and landlord accepts, regular rent payments.
B. the term specified in the lease.
C. the period is less than a year.
D. the landlord has not given notice of termination.
62. Two people own a house, each having an undivided equal interest. Which of the following best describes what they own?
A. Each owns fifty percent of the physical house and the land it rests on.
B. Each owns one hundred percent of the physical house and the land it rests on.
C. Each owns fifty percent of the estate represented by the real property, but no physical portion of the real property.
D. Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.
63. The distinguishing feature of a leasehold estate is
A. ownership of an interest by a tenant.
B. temporary ownership of the full bundle of rights in a property.
C. unlimited ownership of one right in the bundle of rights in a property.
D. duration limited by a lease term.
64. Ownership of which of the following is used to define an “interest in real estate?”
A. Deed
B. The bundle of rights
C. Acreage
D. Attachment
65. Which of the following actions is an expression of the public interest known as police power?
A. Enforcing of parking regulations on residential streets
B. Passage of zoning ordinances to control land use
C. Leasing of office space for government use
D. Collection of sales tax on purchases of consumer goods
66. Ownership of some combination of the bundle of rights defines
A. an undivided interest.
B. an interest in real estate.
C. an estate in land.
D. a private interest.
67. What is “escheat?”
A. The principle that gives governments the right to levy real estate taxes.
B. The process by which a squatter can obtain legal title to real estate.
C. The process by which a municipality condemns land and takes it for public use.
D. The process by which ownership of real estate reverts to the state when there are no legal owners.
68. Once the life tenant dies, the life estate portion reverts back to whom?
A. Grantee
B. Life tenant
C. Grantor
D. Revisionary
69. Which of the following rights is conveyed with a leasehold estate?
A. The right to exclude everyone from the premises.
B. The right to encumber the fee interest.
C. The right to sell the premises.
D. The right to possess and use the premises.
70. Unlike a determinable estate, the grantor of a condition subsequent estate
A. has no control over how the property is used.
B. automatically retakes ownership if restrictions are violated.
C. may repossess the property within a limited time frame if restrictions are violated.
D. is limited in the kind of restrictions that can be placed on the grantee.
71. Which best describes a tenancy at sufferance?
A. When the tenant has received oral permission to stay.
B. When the tenant stays beyond her lease without consent.
C. When the tenant has received notice to terminate a lease.
D. When the tenant’s lease has a definite termination date.
72. An interest in real estate that includes the right to possess is considered
A. an estate in land.
B. a freehold estate.
C. a fee simple estate.
D. an encumbrance.
73. If the duration of an owner’s rights in an estate cannot be determined, the owner possesses
A.) an indeterminate legal estate
B.) a leased fee simple estate
C.) a freehold estate
D.) a leasehold estate
74. An estate is transferred with the stipulation that alcohol will never be consumed on the premises or the seller will take back the property. This kind of estate is a
A.) fee simple absolute
B.) pur autre vie
C.) conventional remainder
D.) fee simple defeasible
75. A man had rented a place to live but had stayed beyond his lease without the owner’s consent. This would be
A.) tenancy for years
B.) estate at will
C.) periodic tenancy
D.) estate at sufferance
76. To own an interest in real estate, a person must own
A.) any combination of the bundle of rights
B.) the right to use the real estate
C.) legal title to the real estate
D.) the complete bill of rights
77. A lease agreement was signed for 8 months by the lessor and the lessee. What kind of lease is this?
A.) Tenancy at will
B.) Periodic tenancy
C.) Estate for years
D.) Life estate
78. Which of the following is a freehold tenant?
A.) The owner of a freehold estate
B.) The lessee in a leased property
C.) The lessee of a freehold estate
D.) Any owner of an estate in land
79. Which of the following is NOT an example of an interest in real estate?
A.) A real estate agent’s right to advertise a property for sale
B.) A lender’s right to file a lien against a property
C.) A power company’s right to enter a property to service equipment
D.) A tenant’s right to exclude others
80. An estate at will
A.) cannot be terminated
B.) is terminated only if so stated in the lessee’s last will and testament
C.) terminates on the death of lessor or lessee
D.) terminates on the date specified in the lease agreement
81. Bill and Bob share ownership of a real property, but neither owns a physical portion of the property. The kind of interest they each own is an
A.) invisible interest
B.) intangible interest
C.) undivided interest
D.) insipid interest
82. What are the two types of fee simple estate?
A.) Absolute and defeasible
B.) Absolut and Smirnoff
C.) Absolved and Repentant
D.) Abseil and Climb
83. Why is a fee simple estate called the highest form of ownership interest?
A.) It cannot be taken by eminent domain or have a lien placed against it
B.) It includes the complete bundle of rights with virtually unlimited duration
C.) It extends upwards to infinity
D.) It is not subject to estate taxes when passed on to legal heirs
84. How does a legal life estate differ from a conventional life estate?
A.) The legal life estate is created by a grant, while the conventional estate is created by custom
B.) The legal life estate is created by statute while the conventional life estate is created by a grant
C.) The conventional life estate focuses on protecting the rights of surviving family members while the legal life estate focuses on laws of descent
D.) The conventional life estate does not have to be described in a written document, while the legal life estate does
85. Who decides how title to real estate will be held?
86. What are the primary differences between tenancy in severalty and co-ownership?
87. What are the primary differences between tenancy in common and joint tenancy?
88. What are the primary differences between tenancy by the entireties and joint tenancy?
89. Describe the main features of the concept of community property.
90. What are some of the apparent advantages of a land trust as a way of owning property?
91. What are the primary differences between a condominium and a cooperative as forms of ownership?
92. Describe the main differences between deeded time-share ownership and vacation interval ownership as forms of ownership.
93. In a cooperative, real property is owned only by
A. the individual unit owners.
B. the individual unit owners and the cooperative association.
C. the cooperative developer.
D. the corporate entity of the cooperative association.
94. Which of the following would NOT terminate a joint tenancy?
A. One of the tenants gets married.
B. One of the tenants declares bankruptcy.
C. The property forecloses.
D. One of the tenants sells his or her interest.
95. Which of the following is NOT a feature of a living trust?
A. Can be revoked
B. Any competent adult can be trustee
C. Provides benefits while the trustor is alive
D. Takes effect when the trustor dies
96. Testamentary trusts are distinct from other kinds of trust in that
A. they begin and end at specified times.
B. they may be changed at any time.
C. they may be used for real and personal property.
D. they may name a bank or trust company as trustee.
97. How does a condominium association cover regular maintenance costs?
A. Special levy
B. Annual tax
C. Monthly assessment
D. Mortgage lien
98. In a condominium, who is responsible for maintaining the internal systems of an individual unit?
A. The condominium association
B. The developer
C. The individual unit owner
D. The management company
99. In a cooperative, who pays the mortgage?
A. The cooperative corporation
B. The board of directors
C. The shareholders
D. The management
100. A trust established for the benefit of a third party, but only for the lifetime of the grantor, is called a
A. living trust.
B. testamentary trust.
C. planned trust.
D. beneficial trust.
105. One of the benefits offered by ownership in a tenancy by the entireties is
A. the estate is subject to foreclosure only for jointly incurred debts.
B. the estate may be terminated only by mutual agreement.
C. the estate is not subject to foreclosure.
D. a co-owner may transfer his or her fractional interest without the consent of other co-owners.
10 What is needed to create a condominium property?
A. Condominium declaration and master deed.
B. Secondary deed and overall deed.
C. Deed of record and habitation declaration.
D. Dwelling declaration and deed of premise.
106. The party who holds title to real estate placed in a living trust is
A. the grantor.
B. the grantee.
C. the beneficiary.
D. the trustee.
107. If a joint tenant sells his or her interest to an outside party,
A. the new owner becomes a joint tenant.
B. the new owner is a tenant in common.
C. the joint tenancy terminates and all owners become tenants in common.
D. the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner.
108. In a condominium ownership, who owns the individual condo units?
A. The unit manager
B. Individual owners
C. The cooperative
D. Third party mortgage holders
109. Time-share “ownership” is
A. illegal in most states.
B. fee or leasehold ownership.
C. a form of tenancy by the entireties.
D. not an estate.
110. When a joint tenant dies, what happens to the tenant’s interest in the estate?
A. It passes to the decedent’s heirs, who become joint tenants.
B. It passes as a tenancy in common to the decedent’s heirs.
C. The joint tenancy terminates and becomes a tenancy in common with the decedent’s heirs and the surviving tenants as co-owners.
D. It passes to the surviving joint tenants.
111. In contrast to a tenancy in common, in a joint tenancy
A. there is a single title to the property.
B. there are as many titles to the property as there are co-owners.
C. title is held by a corporate entity.
D. co-owners who are married hold separate titles.
112. A condominium owner’s assessments for maintenance and operation are based on
A. the unit’s pro rata share of floor space.
B. the unit’s pro rata share of the property value as defined in the declaration.
C. the number of shares the owner purchased in the condominium association.
D. the assessed value of the condominium unit.
113. Which type of property ownership issues stock?
Shared housing
Condominium
Time-share
Cooperative
114. The owner of a condominium unit is responsible for maintaining
A. hallways, corridors, and stairwells that provide access to the unit.
B. all common elements on a rotating basis.
C. structural components that support the unit’s part of the building.
D. the internal systems of the unit.
115. What type of lease does a cooperative stockholder have?
A. Short term lease
B. Net lease
C. Proprietary lease
D. Month to month lease
116. Two individuals can own a house as tenants by the entireties if
A. they so elect at the time of acquiring title.
B. they are blood relatives.
C. they are married.
D. they incorporate.
117. When real property is held in a land trust, who controls the property?
A. The trustor
B. The trustee
C. The beneficiary
D. The property manager appointed by the trustee
118. Who creates the cooperative association that buys a cooperative property?
A. The local cooperative board of regulation.
B. The lending institution financing the development.
C. The prospective tenants.
D. The developer.
119. The owner of a unit within a cooperative actually owns
A. shares in a corporation or association and a proprietary lease in a physical unit.
B. a fee simple interest in a physical unit plus a tenancy in common in common elements.
C. a tenancy in common in a physical unit and the common areas.
D. a ground lease in the physical unit’s pro rata share of land and a proprietary lease in the unit.
120. Which best describes ownership in severalty?
A. Ownership of several properties by one person
B. Ownership of property by two or more persons
C. Ownership of a property by one person
D. Ownership of several properties by two or more persons
121. How many owners can there be in a tenancy in severalty?
A. One
B. Two, if married
C. Several
D. Any number
122. A condominium owner can
A. sell or mortgage the condominium unit without hindrance from individual owners of neighboring units.
B. sell the interest in the physical unit separately from the interest in the common elements.
C. exclude non-owners from the unit owner’s pro rata portion of the common elements.
D. exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit.
123. In a time-share freehold, owners acquire
A. undivided interests as tenants in common.
B. a tenancy from period-to-period for a portion of a year.
C. a pro rata share of a leased fee.
D. a tenancy in severalty for a portion of a year.
124. A kind of trust that can only be used with real property is the
A. estate in trust.
B. testamentary trust.
C. land trust.
D. living trust.
125. Which of the following is TRUE of a joint tenancy?
A. The tenants can determine the size of the share owned by each tenant.
B. The size of the tenant’s shares is determined by the amount of equity each has invested in the property.
C. The tenants have an equal and indivisible ownership interest.
D. There can be no more than two co-owners, and each has a fifty percent interest.
126. A partition suit is used for which of the following?
A. Determination of party fences
B. To allow the construction of party walls
C. To force a division of property without all the owner’s consent
D. To change a tenancy by the entireties to some other form of ownership
127. Larry, Moe and Curly own an investment property as tenants in common. Because of a recent business disagreement, Curly wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Curly may seek an equitable distribution of the property by filing what?
A. Lis pendens
B. Partnership agreement
C. Partition suit
D. Declaration of severalty
128. When does a testamentary trust take effect?
A. At any specified time within the lifetime of the grantor.
B. When the grantor’s will is witnessed and dated.
C. On the death of the grantor.
D. When the beneficiary reaches legal age.
129. Ownership of real estate by a single party is called
A. individual ownership.
B. solitary possession.
C. tenancy in severalty.
D. simple tenancy.
130. If several residents of a cooperative apartment building default on their rent, causing the foreclosure proceedings against the cooperative, which of the following would be TRUE?
A. Only the residents with rent in arrears would be affected because they will be evicted.
B. The corporation owning the property would be dissolved and all of the residents could lose their interest in the cooperative.
C. Foreclosure proceedings would be initiated against each resident by the lender.
D. Only the cooperative’s board of directors would be liable for the mortgage debt.
131. What are the two types of property addressed in community property laws?
A. Owned property and rented property.
B. His property and her property.
C. Real property and common property.
D. Separate property and community property.
132. When a tenant in common dies, what happens to the tenant’s interest in the estate?
A. It is divided equally among the surviving tenants in common.
B. The surviving tenants must buy the interest from the deceased tenant’s heirs or sell their interests to the heirs.
C. It becomes a joint tenancy.
D. It passes by probate to the deceased tenant’s heirs.
133. What are the two basic types of easement and what is the difference?
134. What is a common example of an easement by necessity?
135. How are easements created?
136. Define encroachment and give an example.
137. How is a license different from a personal easement in gross?
138. How are the two types of deed restriction created?
139. Most liens do not convey ownership. What is the one exception to that rule?
What type of lien takes priority over all other liens?
Real property tax lien
140. What factors determine lien priority?
141. How can the priority order of a junior lien be changed?
142. What is a judgment lien and how long does it last?
A judgment lien results from a lawsuit. It attaches to real and personal property as a result of a money judgment issued by a court in favor of a creditor. It lasts for ten years, unless the period is extended as provided within the code.
143. What is a mechanic’s lien?
If a property owner fails to pay for work performed or materials supplied, a worker or supplier can file a mechanic’s lien to force the sale of the property and collect the debt.
144. Which of the following is an example of a voluntary lien?
A. Judgment lien
B. Mortgage lien
C. Vendee’s lien
D. Mechanic’s lien
145. What kind of interest does a lienor usually have in the liened property?
A. A possessory interest
B. Legal ownership of a dominant tenement
C. A legal interest in a pro rata share of the property
D. An equitable interest, except a mortgage lienor in a title-theory state
146. In which kind of easement is there a dominant tenement and a servient tenement?
A. An easement in gross
B. A commercial easement
C. A personal easement
D. An easement appurtenant
147. A lien is a
A. debt incurred by a property owner.
B. promissory note granted by a property owner as security for a debt.
C. creditor’s claim against property as security for a debt of the property owner.
D. document that creates an easement.
148. Which would terminate an easement?
A. Sale of the property by the dominant tenement
B. Sale of the property by the servient tenement
C. Revocation by the servient tenement
D. Merger of the two properties
149. An improvement which crosses over the property line without permission is called a(n)
A. easement.
B. encroachment.
C. license.
D. right of way.
150. A general lien is a lien
A. imposed by statutory law.
B. imposed by court order.
C. placed against an individual rather than against any particular property.
D. placed against any and all property owned by an individual.
151. What is a lien?
A. A promissory note
B. A clouded title
C. A type of easement
D. A creditor’s claim
152. Which of the following is NOT a legal property of liens?
A. Attaches to the property.
B. Terminates when payment is recorded.
C. Generally conveys an equitable interest.
D. Can only exist one at a time against the same property.
153. A property built 23 years ago had a roof overhang that extended 1½ feet onto a neighbor’s property. What could happen?
A. This could create an easement by prescription.
B. The owner of the property could make the owner of the roof pay him for the land.
C. Neither property owner could do anything since it has gone on for so long and hasn’t bothered anyone.
D. The owner of the property may have a better chance of suing to have the encroachment removed because damages could not be awarded that many years later.
154. A court might grant an easement by prescription if
A. a municipality needs to dig a trench across an owner’s property to install a sewer line to a neighboring property, and the owner refuses permission.
B. a property owner sells the front half of a lot and wants to continue using the driveway to reach the rear of the lot.
C. an intruder has been using an owner’s property for a certain period with the owner’s knowledge but without permission.
D. a property owner wants to prevent the owner of an adjoining property from building a second-story addition that blocks the sunlight to his rose garden.
155. A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?
A. Real estate tax lien
B. Federal income tax lien
C. Judgment lien
D. Mortgage lien
156. How can a junior lien’s priority be changed?
A. The lienee can “promote” one lien above another at the request of a lienee.
B. A lienor can sue to have its lien reclassified as superior.
C. If the holder of a superior lien dies, an inferior lien holder automatically moves up on the schedule of priority.
D. A lienor can voluntarily agree to subordinate its lien to another lien.
157. The lienee in a lien is the
A. party who initiates the lien.
B. owner of the property that is subject to the lien.
C. party who has a claim against the owner of the property subject to the lien.
D. property that is given as security for a debt.
158. A film company wants to rent a farm from the farm owner for a two-week film shoot. What type of agreement should be used?
A. Encumbrance
B. Easement
C. License
D. Appurtenance
159. Which of the following is true of easements in general?
A. They involve the property that contains the easement and a non-owning party.
B. They apply to a whole property, not to any specific portion of the property.
C. They cannot be assigned or transferred.
D. They may require a specific use, but cannot prohibit one.
160. Oak Hill subdivision only allows homes over 2,000 sq ft to be built. What is this an example of?
A. Deed restriction
B. Encroachment
C. Prescription
D. Zoning restriction
161. If the owner of property A has a court-ordered easement to drive across property B because it is the only way for A to have access to a public road, the easement is a(n)
A. easement by prescription.
B. personal easement.
C. easement by necessity.
D. easement in gross.
162. Which is NOT a superior lien?
A. Special assessment lien
B. Real estate tax lien
C. Federal and state inheritance tax lien
D. Judgment lien
163. Special assessment tax liens
A. are general liens.
B. are paid on a monthly basis.
C. take priority over mechanic’s liens.
D. cannot be prepaid in full without penalty.
164. Neighbor Fred built a retaining wall that was 2 feet outside his property line. What has Fred created?
A. A deed restriction
B. A license violation
C. An encroachment
D. A zoning exemption
165. Give some examples of when one might own equitable title rather than legal title.
166. Why is “notice” important in determining who holds title to real estate?
167. What is the function of a deed?
168. What is the difference between a bargain and sale deed and a general warranty deed?
169. Describe the four types of will.
170. What happens to Joe’s real estate in your state if Joe dies leaving:
a) a wife, children, and a will;
b) a wife and children, but no will;
c) no legal heirs, and no will?
171. What are the conditions necessary for an involuntary transfer by adverse possession to occur?
172. List the important reasons for creating and maintaining title records.
173. Describe the four principal forms of title evidence.
174. A person receives defective title to a property. The grantor of the title later cures the defect and tries to reclaim the property. The doctrine that may prevent the grantor from succeeding in reclaiming the property is
A. disavowal.
B. embargo.
C. notorious possession.
D. estoppel.
175. Someone who possesses all ownership interests in real property owns
A. equitable title to the real property.
B. legal title to the real property.
C. equitable and legal title to the real property.
D. statutory title to the real property.
176. What are the two forms of owner’s title insurance?
A. Formal and Informal
B. Basic and Comprehensive
C. Short and Long
D. Standard and Extended
177. What is the function of recording a deed?
A. It makes the deed valid.
B. It causes title to pass.
C. It gives constructive notice of ownership.
D. It removes all prior recorded encumbrances.
178. Which is NOT a conveyance clause?
A. A granting clause.
B. A habanero clause.
C. A reserving clause.
D. A tenendum clause.
179. Which document would note a lien on the title?
A. Abstract
B. Title of Record
C. Mirror Title
D. Title of Liens
180. A property may escheat to the state or county if
A. it is abandoned for a period prescribed by law.
B. it is occupied by a hostile possessor.
C. its owner fails to maintain it according to covenants.
D. the state or county needs it for a public project.
181. One of the conditions an adverse possessor must meet in order to obtain legal title to a property is
A. openly possessing and claiming the property without the owner’s consent.
B. occupying the property without an occupancy permit.
C. using the property intermittently and without permission over a period of years.
D. building a permanent structure on the property.
182. Which is NOT one of the four main forms of evidence an owner can use to show marketable title to a buyer?
A. Title insurance policy.
B. Broker’s certificate.
C. An attorney’s opinion of abstract.
D. Torrens certificate.
183. A person who dies without a will is said to be
A. prostrate.
B. intestate.
C. estateless.
D. undevised.
184. Which of the following best describes constructive notice?
A. It is notice published in a newspaper.
B. It is knowledge one could have or should have obtained.
C. It is notice explicitly stated in a legal document.
D. It is knowledge received or imparted through direct experience.
185. Which of the following best describes actual notice?
A. It is notice published in a newspaper.
B. It is knowledge one could have or should have obtained.
C. It is notice explicitly stated in a legal document.
D. It is knowledge received or imparted through direct experience.
186. The court proceeding that generally settles a decedent’s estate is called
A. testate.
B. probate.
C. escheat.
D. distribution.
187. Which of the following is TRUE of a nuncupative will?
A. It is in the testator’s handwriting.
B. Generally, it does not need to be signed in order to be valid.
C. It is valid for the transfer of real property, even if it is not witnessed.
D. Generally, it is not valid for the transfer of real property.
188. All of the following are ways for involuntary alienation to occur EXCEPT
A. abandonment.
B. eminent domain.
C. private grant.
D. foreclosure.
189. A break in the chain of title to a property results in ?
190. The owner of a property creates a deed, leaving the name of the grantee blank, and puts it in a drawer, where it is forgotten for several years. One day, a visitor finds the deed, fills in his name as grantee, and attempts to record it. However, the owner will probably have no trouble disputing the validity of the deed because ?
191. The only clause that is actually required in a deed is the ?
granting clause.
192. A municipality wants to build a water treatment facility, and requires some privately owned land to do so. What procedure enables the municipality to buy the property, even against the owner’s wishes?
A. Estoppel
B. Escheat
C. Alienation
D. Eminent domain
193. A lender’s title insurance policy generally protects
A. the seller against liability for conveying unmarketable title.
B. the buyer against loss of equity through fraud or a disputed title.
C. the lender against the possibility that the lender’s lien cannot be enforced.
D. the lender against liability for certifying that the title records have been searched.
194. Which of the following is TRUE of a nuncupative will?
A. It is in the testator’s handwriting.
B. Generally, it does not need to be signed in order to be valid.
C. It is valid for the transfer of real property, even if it is not witnessed.
D. Generally, it is not valid for the transfer of real property.
195.Which of the following circumstances is likely to render a will invalid?
A. The testator is only 21 years old.
B. The devisee is under duress.
C. The will is unsigned.
D. The will is signed by three witnesses.
196. If an owner of real property dies without leaving a will and with no legal heirs, what will generally happen to the property?
A. It will revert to the state or county by escheat.
B. It will transfer to the decedent’s executor.
C. It will be divided equally among adjoining property owners.
D. It will become a public easement.
197. A buyer has signed a contract to purchase a property but is uncertain of the condition of the title. Who is legally responsible for knowing the condition of the title?
A. The County Recorder
B. The seller’s agent
C. The buyer
D. The mortgage lender
198. Title can be voluntarily transferred by
A. grant, deed, and will.
B. escheat, deed, and covenant.
C. title certificate, will, and deed.
D. sale contract, deed, and warrant of seisin.
199. The property transferred by a will is called the
A. devise.
B. demise.
C. device.
D. assigns.
200. Under the laws of descent, who gets a property when its owner dies without a will and no legal heirs can be found?
A. The federal government
B. The heirs of the previous owner of record
C. The state or county
D. The nearest municipality
201. A person who dies without a will is said to be
A. prostrate.
B. intestate.
C. estateless.
D. undevised.
202. Which of the following best describes actual notice?
A. It is notice published in a newspaper.
B. It is knowledge one could have or should have obtained.
C. It is notice explicitly stated in a legal document.
D. It is knowledge received or imparted through direct experience.
203. What is the function of recording a deed?
A. It makes the deed valid.
B. It causes title to pass.
C. It gives constructive notice of ownership.
D. It removes all prior recorded encumbrances.
204. The question of who owns title to a property is generally a function of
A. who has a bill of sale for the property.
B. who has physical possession of the property.
C. who has the best evidence of ownership.
D. who has a deed for the property.
205. A property may escheat to the state or county if
A. it is abandoned for a period prescribed by law.
B. it is occupied by a hostile possessor.
C. its owner fails to maintain it according to covenants.
D. the state or county needs it for a public project.
206. The type of deed that offers the grantee the fullest protection against claims to the title is the
A. general warranty deed.
B. special warranty deed.
C. quitclaim deed.
D. bargain and defend deed.
207. What is a documentary stamp tax?
A transfer tax based on the price of the property being conveyed
208. A standard owner’s title insurance policy generally protects
the owner against liabilities and losses resulting from title defects
209. A standard owner’s title insurance policy generally protects
the owner against liabilities and losses resulting from title defects
210. What document shows legal alienation of a property?
A. Contract
B. Deed
C. Purchase Agreement
D. Promise to Sell
211. What is a will?
A. A legal instrument for the voluntary transfer of real estate after death.
B. A document that creates an involuntary transfer of property to heirs.
C. A form of deed used to transfer title after the death of a property owner.
D. An executory contract that gives constructive notice of property ownership by an heir.
212. Where would one find information based on constructive notice?
A. Newspaper Postings
B. Court House Records
C. Personal Records
D. Historical Letters
213. Which is NOT one of the three channels of probate deliberation?
A. Testate proceeding.
B. Interstate proceeding.
C. Intestate proceeding with heirs.
D. Intestate proceeding without heirs.
214. The owner of a property creates a deed, leaving the name of the grantee blank, and puts it in a drawer, where it is forgotten for several years. One day, a visitor finds the deed, fills in his name as grantee, and attempts to record it. However, the owner will probably have no trouble disputing the validity of the deed because
A. the grantee was not competent at the time of delivery.
B. there was no intent to deliver it, and no consideration was given.
C. the grantee did not sign it at the time of execution.
D. it was not accompanied by a transfer certificate.
215. James created his own will by writing it out on legal pad. What kind of will is this?
A. Holographic
B. Topographic
C. Transposed
D. Biographical
216. In the Torrens System of recording,
A. public records must be searched to discover the status of title.
B. title insurance is not required.
C. title passes when the conveyance is registered on the title certificate.
encumbrances are not recorded.
D. title passes when the conveyance is registered on the title certificate.
217. Why would a property owner file a quiet title suit?
A. To force the grantor to defend the title against a third party claim
B. To terminate a co-ownership estate when one co-owner is unwilling
C. To keep the owner’s name out of the title records
D. To have an encumbrance removed if the lien holder cannot prove its validity
218. Which of the following is the distinguishing characteristic of a special warranty deed?
A. It makes warranties only for the time the property was owned by the grantor.
B. It conveys both present and any future interest that may be acquired by the grantor.
C. It is the finest and most complete warranty deed that a grantee may receive.
D. It must specify the actual amount of valuable consideration paid by the purchaser.
219. Adverse possession is a form of
A. constructive notice.
B. estoppel.
C. involuntary title transfer.
D. title plant.
===
220. What basically happens in a foreclosure?
221. What are the basic differences between the three types of foreclosure?
222. What are the differences between the two kinds of right of redemption and the right of reinstatement?
223. What happens to the sale proceeds in a judicial sale?
224. What is the purpose of a deficiency judgment?
225. What power does a lender have if a mortgagor defaults in a state that allows non-judicial foreclosure and the mortgage document includes a “power of sale” clause?
226. What happens to the title to a foreclosed property in a strict foreclosure?
227. What is the function of a deed in lieu of foreclosure?
228. All of the following are common consequences suffered by a mortgagor in a foreclosure procedure EXCEPT
A. all or most equity is lost.
B. the mortgagor is embarrassed by public knowledge of the foreclosure.
C. the borrower’s credit is damaged for a long time.
D. the borrower is not allowed to apply for another mortgage for the rest of his or her life.
229. Which statement about a deed in lieu of foreclosure is TRUE?
A. It gives the borrower an opportunity to change the loan terms.
B. It is a deed to the lender in exchange for a reduction in the loan payoff.
C. It avoids public notice of the foreclosure.
D. It is always accepted by the lender since it reduces the costs of foreclosure.
230. One of the negative features of foreclosure for the borrower is
A. the borrower’s credit is damaged, making it difficult to purchase another home.
B. the borrower loses any right to seek another mortgage for seven years.
C. the borrower loses all equity, even if the sale yields more than the amount owed.
D. the process happens so quickly that the borrower has no time to cure the problem.
231. What action must the lender take when a notice of reinstatement occurs?
A. The lender must declare a moratorium on mortgage payments.
B. The lender must pay all fees and renegotiate the mortgage.
C. The lender must dismiss the suit and continue the mortgage.
D. The lender must dismiss the lien and continue the suit.
If reinstatement occurs, the lender must dismiss the suit and the mortgage continues in effect as if no foreclosure had been undertaken.
232. What is a short sale?
A. A lender forces the sale of a mortgaged property without first giving notice of default.
B. A deficiency judgment forces a defaulted borrower to sell personal property to settle a debt.
C. A borrower sells the mortgaged property for less than what is owed on the loan balance.
D. A foreclosed property is sold quickly at a public auction instead of through a standard sales process.
233. Which of the following statements best defines equitable right of redemption?
A. The legal right of a borrower to seek a reduction in payments on a property mortgage.
B. The legal right of a borrower to redeem property between the time of default and the foreclosure sale.
C. The legal right of a borrower to seek a statutory right of reinstatement.
D. The legal right of a borrower to appeal a deficiency judgment within 7 months of notice.
234. Which type of foreclosure involves sale of the mortgaged property under court supervision?
A. Non-judicial
B. Strict
C. Judicial
D. Equitable
235. In a strict foreclosure,
A. a lender takes title to the liened property directly.
B. a lender receives the proceeds from the forced sale of the liened property.
C. the defaulting owner does not have the opportunity to prevent the foreclosure by paying the amounts owed.
D. a foreclosure suit is optional.
236. Which of the following is NOT one of the means of enforcing a lien against real estate?
A. Operation of the law
B. Direct takeover
C. Court action
D. Powers granted in the loan document
237. How long after default does the foreclosure process begin?
A. 90 days
B. 120 days
C. The period set by statute
D. Whatever length the lender customarily uses
238. The period of delinquency allowed before a lender begins foreclosure proceedings is determined by
A. statute.
B. the secondary mortgage market.
C. investors.
D. the lender.
239. In what type of foreclosure is the lender required to file suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain full title to the property?
A. Standard
B. Judicial
C. Strict
D. Non-judicial
240. Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald’s house sold for $29,000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ronald still owes?
A. Sue for damages.
B. Sue for specific performance.
C. Seek a deficiency judgment.
D. Seek a lis pendens.
245. One reason a deed in lieu of foreclosure is attractive to some borrowers is that it
A. terminates all existing liens on the property.
B. minimizes the damage to the borrower’s credit.
C. enables the borrower to share in the proceeds when the property is sold.
D. demonstrates that market conditions, not any failure of the mortgagor, are the cause of the default.
246. What basically happens in a foreclosure?
Lienors force a property owner to give up title. This may involve either the lienors’ forcing the owner to sell and pay off the creditors, or taking title directly.
247. What power does a lender have if a mortgagor defaults in a state that allows non-judicial foreclosure and the mortgage document includes a “power of sale” clause?
The lender can give the borrower notice of the default and a chance to cure it, after which the lender may auction the property.
248. What happens to the title to a foreclosed property in a strict foreclosure?
It transfers immediately to the lienholder.
249. What is the function of a deed in lieu of foreclosure?
It avoids foreclosure by transferring legal title to the mortgagee.
250. A property is secured by a mortgage that does not contain a “power of sale” clause. To foreclose, the lien holder will have to
A. file a deficiency suit.
B. file a foreclosure suit.
C. obtain a deed in lieu of foreclosure.
D. obtain a writ to extinguish the lien.
251. Foreclosure is
A. a court-ordered acceleration of loan payments.
B. the final step in a bankruptcy filing.
C. a proceeding to enforce a lien by forcing sale or transfer of a secured property.
D. a proceeding to take equitable title to a property that was liened as security for a mortgage loan.
252. The first step in a judicial foreclosure is
A. acceleration of the loan.
B. filing a suit.
C. obtaining a lis pendens.
D. obtaining a writ of execution.
253. The completion of a foreclosure sale would terminate which of the following?
A. Statutory redemption rights
B. All rights of redemption by the borrower
C. Equitable redemption rights
D. All liability of the borrower to the lender
254. In what type of foreclosure does a lender give a borrower a notice of default in a form prescribed by the state?
A. Judicial foreclosure
B. Strict foreclosure
C. Standard foreclosure
D. Non-judicial foreclosure
255. A strict foreclosure begins with
A. a writ of execution.
B. an appeal to a court.
C. surrender of the deed.
D. proper notice to the delinquent borrower.
256. Which BEST describes an owner’s equity in the property?
257. A promissory note would usually contain each EXCEPT:
258. An instrument that evidences one person owing another money is a (n) :
259. A clause in a mortgage releasing the indebtedness once the loan is paid off is:
260. A mortgage which is subordinate to another mortgage is called a:
261. In an installment land contract, what type of title did the seller retain until the loan was paid?
262. Which form of financing would be the greatest risk to the buyer?
262. When the buyer’s mortgage is more than the market value of a home and the buyer MUST sell the home a/an _________ might be negotiated with the bank
263. What is provision is required in a mortgage to allow a non-judicial foreclosure to force a sale without a foreclosure suit?
A power of sale clause
264. List at least three goals of land use control.
.
265. What are the three phases of land use planning?
266. Why do communities care about growth trends?
267. Name four common types of zone.
268. Give an example of a legal and illegal nonconforming use.
269. What conditions are necessary for a special exception to a zoning regulation?
270. What do subdivision regulations usually cover?
271. What is the policy of concurrency?
272. What does eminent domain allow a government to do?
273. What do deed restrictions do?
274. What is the Doctrine of Laches?
275. Give some examples of materials that are regulated as being harmful to air quality.
276. Give some examples of materials that are regulated as being harmful to soil and water quality.
277. What responsibilities does a seller’s agent have as a result of the Lead-based Paint Act of 1992?
278. One of the major considerations in planning where to allow growth is
A. the number of developers asking for permits.
B. the effect of development on traffic patterns.
C. the median age of the community.
D. the number of housing starts reported for neighboring communities.
279. What is unregulated property use likely to jeopardize?
A. The rights of developers to build new properties.
B. The levels of income tax within the area.
C. The value of properties within an area.
D. The rights of owners to sell their properties.
280. What is the relationship between master planning and zoning ordinances?
A. The compilation of zoning ordinances is the master plan.
B. A master plan eliminates the need for zoning ordinances. v
C. Master planning is a state-level function; zoning is limited to the county level.
D. Zoning ordinances are a primary means of keeping land use in line with the master plan.
281. The National Environmental Policy Act of 1969 requires developers of large projects to
A. carry out a carbon footprint analysis.
B. conduct an environmental impact survey.
C. establish an environmental oversight committee.
D. hire an environmental consultant.
282. A property owner acquired a property by means of a deed that included a deed restriction against building any kind of unattached structures on the property. The owner now wants to build a small office in a separate structure. What can the owner do to overcome the restriction?
A. Apply to the Zoning Board of Appeals for a special permit.
B. Have the necessary parties execute a quitclaim deed.
C. Sue in court to have the deed declared invalid.
D. Obtain written permission to violate the restriction from the original grantor.
283. Leakage of underground storage tanks is a source of
A. air pollution.
B. water and soil pollution.
C. flood hazards.
D. ambient toxicity
284. Which of the following was an important result of the National Environmental Policy Act of 1969?
A. Money was provided for hazardous waste disposal.
B. The Environmental Protection Agency was created.
C. Lead was banned in the manufacture of plumbing materials.
D. Transportation-related noise was banned.
285. Private land use control is primarily exerted by
A. the courts via placement of deed restrictions on private property.
B. the owner of the controlled property via deed restrictions.
C. the owner of the property via zoning ordinances.
D. the grantee of a property via restrictive covenants.
286. One limitation on deed restrictions is that they may not
A. prohibit commercial activities.
B. prohibit construction of buildings.
C. require minimum setbacks.
D. restrict ownership on the basis of race or religion.
287. Who is usually responsible for site plans, subdivision plans, building permits, and ruling on zoning issues?
A. The state legislature
B. The planning commission
C. The zoning board of appeals
D. The city manager
288. The basic intent of zoning ordinances is to
A. establish the basis for public ownership of land for the common good.
B. establish subdivision rules and regulations.
C. specify usage for every parcel within the zoning authority’s jurisdiction.
D. restrict development in unincorporated areas.
289. As evidence that building inspectors have found that a structure complies with building codes and is ready for use, the municipality or county issues a(n)
A. inspection report.
B. release bond.
C. certificate of occupancy.
D. user permit.
290. In what year was the use of lead in paint banned?
A. 1976
B. 1978
C. 1988
D. 1992
291. Which of the following is guaranteed by the U.S. Constitution?
A. The uncontrolled use of real estate.
B. The right to develop the land for the public good.
C. The individual right to own real estate.
D. The individual right to limit land use.
292. How are private usage restrictions such as declaration restrictions enforced?
A. By zoning
B. By condemnation
C. By police power
D. By injunction
293. Which of the following is NOT normally a basic land use consideration of master planners?
A. Social growth
B. Economic growth
C. Building codes and code enforcement
D. Infrastructure adequacy
294. What environmental legislation particularly targeted the cleanup of former industrial sites?
A. Resource Recovery Act of 1970
B. Toxic Substances Control Act of 1976
C. UFFI ban of 1982
D. Brownfields legislation of 2002
295. The individual right to own land is guaranteed by
A. police power.
B. the U.S. Constitution.
C. federal regulations.
D. state law.
296. Under the Superfund Act (CERCLA) and Superfund Amendment and Reauthorization Act of 1986, who can be held liable for environmental violations?
A. The current owner of a property.
B. The party who last surveyed the property.
C. The previous owner of a property.
D. The current and previous owners of a property.
297. The basic intent of zoning ordinances is to
A. establish the basis for public ownership of land for the common good.
B. establish subdivision rules and regulations.
C. specify usage for every parcel within the zoning authority’s jurisdiction.
D. restrict development in unincorporated areas.
298. What is a “buffer zone?”
299. The overall guideline for creating and enforcing zones, building codes, and development requirements is the
300. Which of the following is NOT a way of terminating a restrictive covenant?
301. Which of the following statements about restrictive covenants is TRUE?
302. To obtain a change of the zoning for a particular property, for example, from residential to
303. Which of the following is TRUE of a successful eminent domain proceeding?
304. Why do zoning authorities create different types of zones?
A. To ensure that a variety of construction types is available in the community.
B. To separate different types of uses so that they do not interfere with each other.
C. To preserve low density land uses.
D. To encourage industrial and commercial users to relocate.
305. The Doctrine of Laches states that if property owners are
A. stringent in protecting their property rights, the property owner may lose those rights.
B. stringent in protecting their property rights, the property owner may gain new rights.
C. lax in protecting their property rights, the property owner may lose those rights.
D. lax in protecting their property rights, the property owner may gain new rights.
306. Which of the following situations is most likely to represent an illegal nonconforming use?
A. A homeowner in a residential zone converts her residence to offices.
B. A homeowner builds an attached garage in a neighborhood where all the garages are detached.
C. A storeowner remodels a storefront in accordance with regulations, and then the zoning is changed to residential.
D. A new zoning ordinance outlaws two-story additions after a homeowner completes an addition.
307. Which legislation holds current owners responsible for environmental violations committed by previous owners?
A. The National Environmental Policy Act of 1969
B. The Clean Air Amendment of 1970
C. The Toxic Substances Control Act of 1976
D. The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 1980) and Superfund Amendment (1986)
308. To obtain a change of the zoning for a particular property, for example, from residential to commercial, a property owner would ask the zoning board for a(n)
A. amendment.
B. special exception.
C. plat approval.
D. special ordinance.
309. How does Planned Unit Development zoning differ from ordinary zoning?
A. It applies only to industrial and office parks.
B. It incorporates a number of different zones within a single property boundary.
C. It requires that multiple tracts of land be developed according to a single design for efficient use of space.
D. It requires developers to obtain a separate building permit for every structure.
310. Why are volatile organic compounds (VOCs) considered an environmental hazard?
A. They make groundwater unsafe for consumption.
B. They cause decomposition of any material they are applied to.
C. They emit toxic fumes.
D. They are known to cause cancer if eaten.
311. If a subdivision has a restrictive covenant, it
A. must be adhered to by all subdivision owners.
B. is an ordinance set by the local zoning board.
C. means that the properties cannot be rented.
D. supersedes public policy or law.
312. Private land use controls are primarily implemented by
313. What appraisal methods do tax assessors use to determine the assessed value of a property?
314. What are some circumstances that typically trigger a reassessment of a property?
315. What is a “homestead exemption?”
316. The high school district in your town needs operating funds. How does it regularly obtain them?
317. Is a special assessment a voluntary tax lien or an involuntary tax lien?
318. What protections might your state offer to a homeowner against the inadvertent loss of ownership for failure to pay property tax?
319. Certain classes of property owner and types of property are exempted or immune from real property taxation in many areas. The protected categories usually include
A. recreational properties.
B. properties owned by a government agency.
C. properties that comply with the Americans with Disabilities Act.
D. properties occupied by single-parent families.
320. What is the role of local tax districts?
A. To encourage the sale of properties.
B. To increase the value of properties within the district.
C. To collect property taxes.
D. To assess property taxes on commercial properties.
321. What option is available to a homeowner who receives a tax bill that he or she feels is too high?
A. File an appeal to adjust the millage rate.
B. Ask for an adjustment to the district’s budget.
C. File a complaint with the local board of assessment review.
D. Live with it until the next assessment period.
322. Which of the following can levy real estate property taxes?
A. The Internal Revenue Service.
B. A utility company.
C. A tax district.
D. A court of law.
323. What is the purpose of an equalization factor in ad valorem taxation?
A. It modifies a local tax rate to bring it into conformity with statutory tax rates.
B. It changes the assessed value of an individual property to make it reflect the assessed values of other properties in the same neighborhood.
C. It adjusts assessments in a locality to make them more consistent with an average level for the state or other higher-level jurisdiction.
D. It adjusts the amount of the homestead exemption in a certain area to make it proportionally equivalent to the average homestead exemption in other areas.
324. What is a unique characteristic of a special assessment tax?
A. It only applies to properties that will benefit from the public improvement.
B. The equalization board discounts levies for properties not affected by the public improvement.
C. More valuable properties that stand to benefit will pay proportionately more taxes.
D. It creates an involuntary junior lien on the property.
325. A tax rate of 4% might be expressed in any of the following ways EXCEPT
A. 4 mills
B. $4 per $100
C. $40 per $1,000
D. 40 mills
326. The purpose of a homestead tax exemption is
A. to exempt qualified property owners from ad valorem taxation.
B. to offer some amount of tax relief on an owner’s principal residence.
C. to encourage multiple property investment.
D. to exempt owners of principal residences who rent their properties.
327. In calculating the tax base of an area,
A. exemptions are added to assessed values.
B. exemptions are subtracted from assessed values.
C. the tax levy is added to the budget shortfall.
D. the millage rate is multiplied by the tax levy.
328. A special assessment creates a voluntary tax lien if
A. all taxpayers in a taxing district have voted for it.
B. the affected property owners have requested the improvement.
C. a taxing entity initiates the assessment.
D. the improvement to be funded is for the general good.
329. To qualify for a homestead exemption, a property owner generally must
A. reside on the property.
B. have a house on the property.
C. be 55 years old.
D. have children.
330. A homeowner’s property tax bill is derived by
A. dividing the tax requirement by the tax base.
B. multiplying each district’s tax rate by the assessed value of the owner’s property.
C. dividing tax dollars needed by the taxable assessed value.
D. multiplying the tax requirement by the tax base.
331. What does a tax certificate do?
A. Certifies to tax collectors that a property owner has paid all ad valorem taxes on the property for the calendar year.
B. Entitles its holder to apply for a tax deed after a certain period.
C. Exempts its holder from paying taxes on the particular property referenced by the certificate.
D. Waives a property owner’s rights of redemption in a foreclosure.
332. The buyer of a tax certificate
A. obtains immediate legal title to a foreclosed property.
B. is exempted from the payment of property taxes for one calendar year.
C. agrees to pay the taxes due on a property in return for the right to apply for a deed.
D. obtains the right to bid on a property at a tax sale.
333. What is a tax deed?
A. A conveyance instrument for a property that is sold to enforce a tax lien.
B. A document recorded in title records showing that property taxes have been paid.
C. A notice to a homeowner that a tax lien has been entered against the property.
D. A document that gives a municipal authority the power to collect an individual tax bill.
334. Which of the following does NOT receive revenues from property taxes?
A. Parks
B. Fire services
C. School districts
D. Private enterprises
335. Local taxing authorities find taxing land to be beneficial. Which of the following is NOT one of those benefits?
A. Property tax revenue is predictable
B. Property taxes are hard to conceal from taxing authorities
C. Property taxes raise more revenue than income and sales tax
D. In most cases, land has some measure of productivity and the government shares in that
336. Where does a property owner file an assessment complaint?
337. As part of the assessment process, taxing entities sometimes use an equalization process to
338. What are ad valorem taxes based on?
339. What is an ad valorem tax levy?
340. Assessors are usually not allowed to do “spot” assessments of individual parcels unless:
341. The same millage rate might be expressed in any of the following ways EXCEPT
A. 3 mills.
B. $3 per $100.
C. $30 per $1,000.
D. 3 percent.
342. What are 2 reasons for making land the basis of taxation
343. Special tax district vs. permanent tax district
344. Tax bills are calculated based on?
345. Which of the following is a benefit to the local taxing authorities to taxing property?
346. A millage rate is derived by?
347. A town is replacing a sidewalk that serves five homes. The length of the sidewalk is 200 feet. Mary’s property has 38 feet of front footage. If the cost of the project to be paid by a special assessment is $7,000, what will Mary’s assessment be?
A. $1,400
B. $1,330
C. $184
D. $1,840
348. The tax assessment ratio for a house valued at $250,000 is 80%. If the tax rate is $2.00 per $100 what is the annual tax?
A. $500
B. $5,000
C. $400
D. $4,000
349. A school district’s tax rate is 10 mills. The school district’s required revenue from taxes is $1,000,000. What is the tax base of the area?
A. $1,000
B. $1,000,000
C. $10,000,000
D. $100,000,000
350. Which of the following jurisdictions are empowered to levy ad valorem taxes on real property?
A. Federal, state, and county jurisdictions
B. State, county, and local jurisdictions
C. Counties, cities, and municipalities
D. Federal, state, and county special assessment districts
351. What is a contract?
352. John Junior, age 14, under duress from his father, signs a contract to buy a $75,000 sports car from his father, John Senior, for $10 a week plus a promise to “be a good boy” around the house, even though both father and son know that Junior intends to drive the car without license or insurance. Do you think a court would enforce this contract if either party decided not to go through with it?
353. The Statute of Frauds requires that most contracts that convey an interest in real estate be in writing. What does it mean to say under this doctrine that an oral contract may be valid, but not enforceable?
354. What happens to an offer made to a seller if the seller changes one of the terms, signs the offer, and returns it to the buyer?
355. When does an offer or counteroffer become a contract?
356. What is the relationship between an executory contract and an executed contract?
357. Describe the legal remedies a damaged party has when another party to a contract breaches the contract.
358. All of the following will terminate a contract EXCEPT
A. performance of the contract.
B. mutual agreement to cancel the contract.
C. assignment of the contract.
D. abandonment of the contract.
359. Which is NOT one of the three factors needed for the capacity to contract?
Being currently employed.
Being of legal age.
Being of legitimate authority.
Being of mental competency.
360. An implied contract may be deemed to exist if
A. the parties do not disavow an express contract that has expired.
B. the parties act as if there is a contract.
C. an offering party does not receive written notice that the offer has been rejected.
D. the parties promise to perform their part of the agreement if the other party performs.
361. A buyer submits an offer to a seller and then dies in a car accident. Before learning of the buyer’s death, the seller accepts the offer. Which of the following is true?
A. The seller can force the buyer’s estate to go through with the purchase.
B. The buyer’s death terminated the offer.
C. The seller must make a new offer with the same terms to the buyer’s heirs.
D. The buyer’s heirs have the option of enforcing the contract.
362. The necessary condition of mutual consent may be found lacking in a contract if
A. the two parties did not discuss every possible interpretation of the contract’s provisions.
B. the offer that was accepted is vague.
C. one party did not have the legal authority to sign the contract.
D. the agreement is unwritten.
363. A buyer decides after making an offer on a house that he would rather buy a different one. What does he have to do to get out of the first offer?
A. Re-submit the offer with a lower price that the seller is sure to reject
B. Wait for the offer to expire
C. Revoke the offer before the seller has accepted it
D. Make an offer on the second house and let the first seller keep the earnest money deposit
364. Why are insurance policies called “aleatory” contracts?
A. The insurance company dictates the terms of the policy.
B. The considerations offered by the parties are extremely unequal.
C. The rights of the insured party to seek court relief are extremely limited.
D. The insurer performs the promised action only if a specified chance event occurs
365. A person sells a summer cottage appraised at $100,000 to a stranger for $50,000. The seller’s family wants to challenge the validity of the sale contract. The most apparent weakness of the contract that they might be able to attack is the
A. illegality of the contract’s intent.
B. insufficiency of the consideration exchanged for the property.
C. lack of consent on the part of the seller’s family.
D. lack of good faith on the part of the buyer.
366. What is forfeiture?
A. The party breaching a contract to enter into an alternative contract.
B. The party breaching a contract to give up a consideration.
C. The party suffering the breach having the right to sue the breaching party.
D. The party suffering the breach seizing property from the breaching party.
367. What is a contract?
A. A legal form signed by two parties agreeing to exchange considerations.
B. An agreement between the legal representatives of two parties committing their principles to take action if certain conditions arise.
C. A document in which one or more parties promise to deliver goods or services in return for payment of an agreed price.
D. An intangible agreement between parties to perform or refrain from performing some act.
368. Which of the following statements about contract revocation is TRUE?
A. It may not relieve the revoking party of contract obligations.
B. It cancels all obligations of both parties.
C. It can only be used if both parties agree to the revocation.
D. It leaves the non-revoking party without any legal remedies.
369. A contract that conveys an interest in real estate must
A. contain a legal description of the property.
B. be written on a form approved by the state bar association.
C. be either nuncupative or holographic.
D. be recorded within three days to be enforceable.
370. In a suit for damages by reason of default, the damaged party may claim liquidated damages if
A. the contract stated a specific amount due to a damaged party.
B. the contract stated that a defaulting party could not profit from the contract.
C. the defaulting party owns property that can be foreclosed to pay the damages.
D. the contract stated that a damaged party could take legal action to enforce the contract.
371. Oral contracts are
A. always illegal.
B. sometimes valid, but never enforceable.
C. sometimes valid, but possibly unenforceable.
D. no different from implied contracts in the eyes of the law.
372. Which of the following contracts can be assigned to another party?
A. An exclusive listing agreement
B. An exclusive agency agreement
C. A contract for the sale of a house
D. An employment contract between a broker and a salesperson
373. A buyer makes an offer with a 48-hour expiration time. 12 hours later, she changes her mind and informs the seller that the offer is withdrawn? What is the status of the offer?
A. The offer remains an offer until the expiration time has passed, and the seller may accept it.
B. The contract is invalid but enforceable; the seller may sue for breach of contract.
C. The offer is extinguished along with the seller’s right to accept it.
D. The contract is valid but unenforceable unless the buyer reinstates it within the original expiration period.
374. A bilateral contract is one in which
A. both parties promise to do something in exchange for the other party’s performance.
B. both parties receive equal consideration.
C. both parties agree to perform a service.
D. one party promises to do something if the other party performs first.
375. An unconscionable contract is one that
A. illegal in purpose.
B. gives one party only the option of accepting or rejecting the contract.
C. is triggered by unforeseeable, random events.
D. takes unfair advantage of the party with weaker bargaining power.
376. If a state allows for a cooling-period rescission in the contracting process, a party may
A. extend the expiration period for accepting or rejecting an offer.
B. cancel a contract within a statutory period for any reason with no penalty.
C. revoke a contract at any time before the other party has performed its obligations.
D. return the contract to the status of an offer or counteroffer that has not yet been accepted.
377. Can an oral contract between a buyer and a seller to transfer real estate be enforced?
A. Yes, any oral contract is legally binding.
B. Yes, provided it was witnessed by a broker.
C. No, real estate sales contracts must be in writing.
D. No, unless the property is worth less than $75,000.
378. Al offered seller Tim $60,000 for a parcel of land but Tim never responded to Al’s offer. Two weeks later Tim sold the land for $58,000 to an out-of-state buyer. Neighbor Al has sued for breach of contract. What can be said about Al’s actions?
A. Al has legal rights due to his being the first offer.
B. Al has legal rights due to his offer being higher than the out-of-town buyer’s amount.
C. There is a contract because there was a good faith offer by Al.
D. There is no contract unless both parties have an agreement.
379. Once a transaction closes, a contract is said to be
A. executed.
B. executory.
C. executive.
D. executant.
380. A homeseller signs a listing agreement with a broker and the next week decides not to sell and revokes the listing. Which of the following is true?
381. What is rescission?
382. A breach of contract is
383. A party sells a summer cottage appraised at $100,000 to a stranger for $50,000. The seller’s family wants to challenge the validity of the sale contract. The most apparent weakness of the contract that they might be able to attack is the?
384. An oral contract to sell mineral rights is performed by both parties. Six months later, the seller has second thoughts and wants to reclaim the rights under the Statue of Frauds. What is the likelihood that the seller will succeed?
385. The valuable consideration necessary to make a contract valid must be?
386. An implied contract may be deemed to exist between parties if
387. If an offeree alters any part of an offer and then signs it,
A. the offeror must accept the contract with its alterations.
B. the original offer is extinguished and the offeror is not bound by any agreement.
C. the original offer becomes a contract with the alterations subject to acceptance or rejection by the offeror.
D. the altered offer is a valid contract.
388. In which circumstances would a buyer most likely sue for specific performance?
389. What is the statute of limitations?
390. Parties can agree to replace a cancelled contract with another contract by the process of?
391. Which of the following is an executory contract?
392. How much time does a seller have to accept a buyer’s offer if the offer does not have an expiration date?
393. When does an offer become a contract?
394. Which of the following is a legally-required element of a valid and enforceable real estate contract?
A.) Notarized agreement
B.) Valuable consideration
C.) An offer
D.) Earnest money
395. What are some of the assurances about construction quality provided to home buyers by federal laws and regulations?
396. What are some of the typical requirements for well and septic systems?
397. What does a footing do?
398. What is a sill plate and what does it do?
399. What are the three types of frame construction?
400. What is the most common type of heating system in North America and how does it work?
401. What are the two types of heat pumps available?
402. Name three types of pipes used in plumbing systems.
403. What is the difference between voltage and amperage?
404. The Minimum Property Standards is
A. a national building code.
B. a model zoning law.
C. a set of construction standards promulgated by the American Association of Property Insurers.
D. a set of HUD regulations for buildings constructed under HUD housing programs.
405. Which of these types of wire would probably not be found in a residence?
A. Romex cable
B. Copper wire
C. Greenfield conductor
D. Steel wire
406. Which is the most common type of framing for residential construction?
A. Balloon
B. Platform
C. Stud
D. Post and beam
407. What type of pipe is inexpensive, lightweight and utilized in areas where hard water is a problem?
A. Brass
B. PVC
408. Which of the following is NOT part of a septic system?
A. Leach field
B. Floating slab
C. Distribution box
D. Septic tank
409. How is amperage calculated?
A. Cubic feet per minute
B. Voltage
C. Meters per second
D. Watts or kilowatts
410. What dictates the minimum and maximum pressures allowed for plumbing fixtures?
A. The building codes
B. The certificate of occupancy
C. The zoning laws
D. The blueprints
411. All of the following are guidelines usually provided by a state’s Department of Health for the location of wells EXCEPT
A. location must allow access for inspection and maintenance.
B. well must not be located where the water table is less than 10 feet below the surface.
C. location must not be subject to seasonal flooding.
D. well must be uphill from known sources of pollution.
412. What kind of refrigerant is used for cooling in air conditioners?
A. Methane
B. Carbon dioxide
C. Propane
D. Freon
413. What amount of heat energy is needed to raise the temperature of one pound of water by one degree F?
A. A British Thermal Unit
B. One watt
C. One joule
D. An American Thermal Unit
414. Which foundation is a flat concrete pad poured directly on the ground?
A. Fundamental foundation
B. Joist framing
C. Slab-on-grade
D. Pitch foundation
415. The part of the foundation that transmits loads directly to the soil is called
A. the basement.
B. the stud.
C. the transmitter.
D. the footing.
416. In wood framing, what are the members called that frame the structure?
A. Studs
B. Beams
C. Joists
D. Rafters
417. What is the National Electric Code?
A. A professional code prescribing safe practices for members of the United Brotherhood of Electrical Workers.
B. A federal law mandating procedures and materials that must be used in all residential construction in the United States.
C. A national standard for the safe installation of electrical wiring and equipment voluntarily adopted by many states and municipalities.
D. A national standard for professional practices voluntarily adopted by many electrical workers’ unions and associations.
418. To ensure that a proposed construction project will not have a negative impact on the environment, developers may be required to
A. comply with the Minimum Property Standards code.
B. obtain a building permit from HUD.
C. file an environmental impact statement.
D. hire a federal environmental engineer as project foreman.
419. What does the R-factor measure?
A. The range of temperatures that a heating unit can provide.
B. How much insulation a material provides.
C. How many gallons of water a well can replenish per day.
D. How much shade a property possesses.
420. Which type of pipe is typically found in drainage systems?
421. Construction standards for the provision of building accessibility for elderly and disabled persons are mandated by the federal
422. Ventilation air is the air used for providing
423. Which of the following is NOT an aspect of a house’s construction that a competent real estate agent is expected to know about?
424. What onsite system is designed to treat and dispose of domestic sewage?
425. A _________ is a protective device containing a wire that melts and breaks the circuit when the current exceeds a certain value.
426. The slope of the roof is also known as
427. What type of insulation is used for work on flat roofs, on basement walls, as perimeter insulation at concrete slab edges, and in cathedral ceilings?
428. In _____________ construction, exterior wall studs continue through the first and second stories.
429. Real estate licensees should know enough about building ordinances to be able to
430. Why do taxing entities sometimes use an equalization process when assessing properties?
A. To level out the unevenness of valuations from one area to another
B. To tailor millage rates to a wide range of assessed values within the taxing district
C. To make tax rates equal across all jurisdictions
D. To make all tax bills equal within the taxing district
431. The primary agents of private land use control are
A. courts by means of police power.
B. property owners by means of zoning ordinances.
C. property owners by means of deed restrictions.
D. grantees by means of restrictive covenants.
432. A metes and bounds description must
A. describe the parcel’s boundaries as a complete, closed perimeter.
B. conform to the standards set for the plat of survey.
C. use rods and acres to quantify linear and area measurements.
D. contain a distinct point of beginning and point of ending.
433. An item associated with an item of real property may be distinguished as real or personal property by determining whether it
A. is valued at a certain percentage of the value of the associated item.
B. is physically smaller than the associated item.
C. is permanently attached to land or structures of the associated item.
D. was acquired at the same time as the associated item.
434. Included in the definition of “real estate” are
A. a mobile home parked temporarily on a rented lot.
B. fences and roads on a parcel of land.
C. trees cut down and lying on a parcel of land.
D. business equipment installed by a tenant on leased property.
435. What purpose is served by recording a deed?
A. It clears all encumbrances.
B. It validates the deed.
C. It transfers title.
D. It gives constructive notice of ownership.
436. To own an “interest in real estate,” one must own
A. a deed.
B. an improvement.
C. some part of the bundle of rights.
D. acreage.
437. Zoning ordinances are primarily intended to
A. prevent urban development from encroaching on rural areas
B. establish how every parcel in the zoning authority’s area of control can be used.
C. regulate subdivision expansion.
D. buffer residential and industrial uses.
438. What does an owner own if the duration of his or her rights in an estate cannot be determined?
A. A permanent life estate
B. A freehold estate
C. A leasehold estate
D. A durable leased fee estate
439. Restrictive covenants
A. can never be changed or removed.
B. are never used for residential properties.
C. take priority over less restrictive zoning ordinances.
D. may be discriminatory if established before ownership transfers.
440. Which of the following is required for a legal description to be adequate?
A. It must be written by a licensed real estate attorney.
B. It must accurately locate and identify the boundaries of the property and distinguish it from all other properties.
C. It must be included in a survey of the property conducted by a licensed surveyor.
D. It must accurately identify property boundaries and locate and describe all improvements on the property.
441. A person who owns all ownership interests in real property is said to own
A. statutory title.
B. juridical title.
C. equitable title.
D. legal title.
442. Conditions and covenants differ in that
A. conditions can be created only at the time of transferring ownership.
B. conditions can be created at any time.
C. a breach of covenant causes ownership to be forfeited.
D. covenants are enforceable in court.
443. To be valid and enforceable, a contract must
A. include earnest money.
B. be notarized.
C. convey legal title.
D. include valuable consideration.
444. The owner of a cooperative owns a(n)
A. proprietary lease.
B. estate for years.
C. commercial lease.
D. periodic lease.
445. Where do the overall guidelines for zoning, building codes, and development requirements in a jurisdiction come from?
A. The jurisdiction’s master plan
B. The jurisdiction’s economic development committee
C. State enabling acts
D. State court decisions
446. When no legal heirs can be found for the deceased owner of a property, the laws of descent give the property to
A. the winning bidder in a sheriff’s sale.
B. the county or state.
C. the heirs of the previous owner of record.
D. a registered charity in the nearest municipality.
447. Except in a title-theory state, a mortgage lienor has a (an) _________ in the liened property.
A. security interest
B. an equitable interest
C. a pro rata share of a legal interest
D. a dominant interest
448. One day, a nosy visitor finds a deed in the attic of a house. The deed is signed by the grantor, who is deceased, but the grantee is not named. The visitor writes in his own name and attempts to record the deed. However, the deed will probably not hold up because
A. there was no consideration and no intent to deliver.
B. the grantor did not sign a transfer certificate and attach it to the deed.
C. the grantee did not sign the deed in the presence of the grantor.
D. the grantor was deceased at the time of delivery.
449. Bob can grant his sister Mary an estate for as long as she lives without the right to pass it to heirs by granting a(n)
A. ordinary life estate.
B. estate for years.
C. legal life estate.
D. estate pur autre vie.
450. What is the basis for determining the amount of a condominium owner’s monthly assessment for operations and maintenance?
A. The unit’s appraised value
B. The number of shares the owner purchased in the condominium association
C. The unit’s pro rata ownership share as defined in the declaration
D. The unit’s pro rata share of total floor space in the building
451. A deed in lieu of foreclosure
A. changes the loan terms.
B. wipes out all liens.
C. increases the costs of foreclosure.
D. avoids public notice of a foreclosure.
452. When a joint tenant dies, that tenant’s interest
A. passes to the surviving joint tenants.
B. passes to the decedent’s heirs as a tenancy in common.
C. passes to the decedent’s heirs and the surviving tenants as a divided tenancy in common.
D. passes to the decedent’s heirs as a joint tenancy.
453. What is the result of a break in the chain of title to a property?
A. A quitclaim deed is issued.
B. Title escheats to the state.
C. Title reverts to the last owner before the break.
D. There is a cloud on the title.
454. A court orders Jerry to allow neighbor Loretta to drive across his property because it is the only way Loretta can reach her property from a public road. The easement created is an
A. easement in gross.
B. easement by prescription.
C. easement by personal license.
D. easement by necessity.
455. In a case of mortgage loan delinquency, it is the ______ that determines when foreclosure proceedings will commence.
A. law
B. lender
C. borrower
D. investors
456. Stan’s home undergoes foreclosure. The property has the following liens recorded against it: an unpaid real estate tax bill for the current year; a first mortgage dated ten years earlier; a second mortgage dated three years earlier; and a mechanic’s lien entered for work beginning six months earlier. When the property is sold, the LAST lien to be paid off is the
A. property tax lien.
B. first mortgage.
C. mechanic’s lien.
D. second mortgage.
457. Of the wood framing systems used in residential construction today, the most common is
A. platform-frame.
B. balloon-frame.
C. pillar and girder.
D. post and beam.
458. Unlike deed restrictions, declaration restrictions
A. cannot be extinguished by a quitclaim deed.
B. do not attach to the property.
C. focus on construction requirements.
D. are used only on commercial properties.
459. What is the purpose of Planned Unit Development zoning?
A. To regulate the placement of industrial and office parks
B. To combine multiple zoning categories within a single property boundary
C. To enable a single building permit to cover every structure in a subdivision
D. To promote an efficient land use design that maximizes open space when whole tracts are developed
460. When a contract is revoked,
A. the non-revoking party has no legal recourse but to accept the revocation.
B. both parties must agree for the revocation to take effect.
C. neither party has any further obligations.
D. the revoking party may still have obligations to the other party.
461. A valid contract that conveys an interest in real estate must contain
A. a novation clause.
B. a title certificate.
C. a legal description of the property.
D. the signature of a member of the state bar association.
462. Unlike other property taxes, a special assessment tax
A. does not create a lien on the property.
B. applies a reduced tax rate to properties not affected by the project to be funded.
C. applies only to properties which will directly benefit from the project to be funded.
D. taxes properties with a higher assessed value at a proportionately higher rate.
463. What kind of clause in a mortgage or trust deed enables a non-judicial foreclosure to occur?
A. Power of attorney
B. Power of sale
C. Due on sale
D. Damages
464. Ownership rights, such as those to possess and use a property,
A. cannot be violated.
B. are absolute.
C. vary with the type of property involved.
D. are subject to what the law allows.
465. How is the tax base of an area calculated?
A. Exemptions are added to the sum of assessed values.
B. The tax levy is subtracted from the budget shortfall.
C. The millage rate is divided by the tax levy.
D. Exemptions are subtracted from the sum of assessed values.
466. A court orders transfer of a mortgaged property to the lender in a ___________ foreclosure.
A. possessory
B. judicial
C. no-fault
D. strict
467. In a foundation, the load is transmitted to the soil by the
A. load exchanger.
B. footings.
C. platforms.
D. lintels.
468. A seller accepts an offer without realizing that the buyer has died since making the offer. Which of the following best describes the status of the contract?
A. The contract requires the buyer’s estate to complete the purchase before the estate is probated.
B. The contract requires the buyer’s heirs to complete the purchase after the estate is settled.
C. The offer was terminated by the buyer’s death; there is no contract.
D. The seller must convey the property to the buyer’s heirs under the terms of the contract as originally accepted.
469. Plumbing fixtures in a building have a minimum and maximum pressure requirement that is dictated by
A. the plumbing contractor.
B. the water company.
C. the building code.
D. zoning.
470. If ABC Company has the right to build a structure on top of DEF’s existing structure, ABC owns
A. a dominant tenement.
B. air rights.
C. the right to improve.
D. surface rights.
471. Two individuals own a house as tenants by the entireties. They can do this because they
A. are incorporated.
B. acquired title at the same time.
C. are related by blood.
D. are married.
472. Bob signs a six-month apartment lease agreement with John. What kind of lease is this?
A. Tenancy at sufferance
B. Estate from period to period
C. Estate at will
D. Estate for years
473. In a tenancy in common, the co-owners
A. are necessarily married.
B. own equal shares of the estate.
C. share an indivisible interest.
D. acquire their interests at the same time.
474. An estate is transferred with the stipulation that trees on the premises will never be cut down or the seller will take back the property. This kind of estate is a
A. fee simple defeasible.
B. fee simple absolute.
C. pur autre vie.
D. conventional remainder.
475. Legal title to an estate in trust is held by the
A. trustor.
B. trustee.
C. beneficiary.
D. grantor.
476. Eminent domain
A. is applicable only when the owner agrees with the government’s superior claim.
B. may be exercised with no obligation to compensate the owner.
C. may be applied to any privately-owned property and for any purpose whatever, including reselling for a profit.
D. can take a property from an unwilling property owner by a process of condemnation.
477. One of the unique features of the Torrens System of recording is that
A. conveyance occurs when it is registered on the certificate.
B. it requires a complete title search to discover title status.
C. title insurance is mandatory.
D. encumbrances are recorded in order of priority.
478. An encroachment arises when
A. a property owner grants a neighbor permission to build a structure that hangs over the property boundary.
B. an easement is recorded on the title of a property.
C. one property physically intrudes into another without authorization.
D. a property owner builds a structure that is at variance with a zoning ordinance.
479. At what level of government is the real estate business primarily regulated?
A. The U.S. Constitution
B. The federal court system
C. The U.S. Congress
D. The state legislature
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