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Real Estate Pre-Licensing module 1 > module 1 > Flashcards

module 1 Flashcards

1
Q

In real estate, the term improvements most nearly means:
A) Fences, wells, drains and roadways.
B) Additions to the original structure.
C) Everything artificial or constructed except the land.
D) Upgrades to the interior.

A

C) Everything artificial or constructed except the land.

All real estate except land. Includes buildings, fixtures, fences, curbs, sewers, etc.

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2
Q 
A riparian owner is one who owns land bounding on:
A) Municipal property
B) A waterway
C) A national forest
D) Unsurveyed public lands.
A

B) A waterway

The right of a landowner to the use of water on or adjacent to his land that is non-navigable.

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3
Q 
When land is necessary for the protection of water supplies, watershed, and water resources, the land use designation would likely be:
A) Rural
B) Urban
C) Conservation
D) Agricultural
A

C) Conservation

Conservation or preservation land is designated to protect the environment and for the enjoyment of natural surroundings.

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4
Q 
An example of a right, privilege or improvement that belongs to and passes with a property is described as a(n):
A) Emblement
B) Appurtenance
C) Restriction
D) Encroachment
A

B) Appurtenance

An addition to the property which becomes a part of the property and is conveyed to the next owners. Improvements and easements are appurtenances.

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5
Q 
All rights in the land that happen to pass with the conveyance of the land are BEST described as:
A) A reversion interests
B) Warranties
C) Tenements
D) Reservation interests
A

C) Tenements

All rights in land which pass with a conveyance of the land both tangible and intangible.

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6
Q

Regarding Public Access to Shorelines in Hawaii (PASH), all of the following apply to native Hawaiian rights EXCEPT that they:
A) Have access to undeveloped lands privately owned for traditional gathering rights
B) Have access to undeveloped lands privately owned for traditional cultural purposes
C) Have access to undeveloped lands privately owned for access to the shoreline for fishing purposes
D) Have access to developed lands privately owned for religious needs

A

D) Have access to developed lands privately owned for religious needs

Developed lands have not been accessible to Hawaiian groups under PASH.

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7
Q

Which of the following is typically personal property?
A) Gas and mineral rights
B) Water rights
C) A beneficiary’s rights under a real property trust
D) Trade Fixtures

A

D) Trade Fixtures

Trade fixtures are always considered to be personal property even if the fixtures are permanently attached to the building.

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8
Q 
Assume the contract for the sale of real property includes the sale of certain removable items, such as paintings and furniture. Upon delivery of the deed, the seller should also deliver a(n):
A) Bill of sale
B) Estoppel certificate
C) Chattel mortgage
D) Satisfaction piece
A

A) Bill of sale

A bill of sale is given to the buyer by the seller when personal property is sold.

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9
Q

The MOST important factor in determining whether something is a fixture is:
A) The method of its attachment
B) Its size
C) Its weight
D) The intention of the party who attached it

A

D) The intention of the party who attached it

Of the 4 methods to determine whether an item is personal or real property, INTENT is the most important determining factor.

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10
Q 
Which of the following BEST describes personal property:
A) Chattel
B) Appurtenance
C) Fixture
D) Improvement
A

A) Chattel

Chattel is personal property which is tangible.

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11
Q

One is seized of property when he or she:
A) Is the lawful owner
B) Is a trespasser
C) Is in possession of property under a lease
D) Has fulfilled the required period for adverse possession

A

A) Is the lawful owner

Seisen means the possession of real property that the owner is entitled to.

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12
Q 
If A deeds property to B and her heirs, with the stipulation that if B leaves no heirs the property will then go to C, then C now holds which type of estate?
A) Contingent life estate
B) Contingent reversion fee
C) Contingent remainder fee
D) Reversionary interest
A

C) Contingent remainder fee

Remainder interest occurs when the property is given to the third party and not to the grantor or grantor’s estate.

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13
Q

A life estate may be granted:
A) Only when it is for the duration of the grantee’s life
B) For the duration of the life on someone other than the grantee
C) For a definite term
D) Only to a grantee over the age of majority

A

B) For the duration of the life on someone other than the grantee

Life estate can be on the life (or lives) of the person living on the property or on the life (or lives) of someone that does not reside on the property.

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14
Q 
A freehold could be any of the following EXCEPT a(n):
A) Life estate
B) Fee simple estate
C) Estate for years
D) Defeasible fee estate
A

C) Estate for years

Estate for years is a term used in leases for a definite period of time.

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15
Q 
An owner of a life estate can do all of the following EXCEPT:
A) Sell
B) Mortgage
C) Devise
D) Lease
A

C) Devise

A life estate holder cannot pass on his interest in the property by a will (devise). The life estate interest expires upon the death of the life estate holder and will revert to the grantor or go to a remainder person.

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16
Q 
An example of a less-than-freehold estate is a(n):
A) Life estate
B) Leasehold estate
C) Estate on condition subsequent
D) Mortgaged estate
A

B) Leasehold estate

Estates can only be freehold or leasehold. Leasehold interest has a definite time period and reverts back to the fee holder upon the expiration of the lease.

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17
Q

With respect to real property, the term estate is BEST described as:
A) All property left by the deceased
B) A bequest of a specific property in a will
C) Fee simple ownership of property
D) The nature and degree of an interest in real property

A

D) The nature and degree of an interest in real property

Estate is the degree, quantity, nature and extent of interest a person has in real property.

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18
Q 
Unclaimed estates escheat to the state after a period of:
A) 5 years
B) 10 years
C) 15 years
D) 20 years
A

C) 15 years

Escheat occurs when the property is abandoned or a person dies without a will and without heirs. The property goes to the state after 15 years.

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19
Q 
An appropriation of land for some public use made by the owner and accepted for such use by or on behalf of the public, such as streets in a platted subdivision, is called:
A) An easement
B) Dedication
C) A public grant
D) Condemnation
A

B) Dedication

Developers will usually dedicate roads, water tanks, sewer treatment plants to the government after the project is completed. The government is responsible for the maintenance of the improvement once the dedication has occurred.

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20
Q

All of the following statements about deed restrictions are true EXCEPT:
A) They are frequently encountered in residential subdivisions
B) They are called restrictive covenants
C) They terminate on the death of the grantor
D) Once established, they run with the land and are limitations on the use of future grantees

A

C) They terminate on the death of the grantor

Deed restrictions usually run with the life of the land unless a specific termination period is written in the deed restriction.

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21
Q 
An easement appurtenant:
A) Is the usual type of easement granted to utility companies to permit them to run electric lines across the property
B) Runs with the land
C) Has only a dominant estate
D) Benefits the servient estate
A

B) Runs with the land

Easement appurtenant is usually permanent and runs with the life of the land.

22
Q 
An easement created by adverse use is said to have been created by:
A) Express grant
B) Implication of law
C) Reservation
D) Prescription
A

D) Prescription

Prescriptive period is for 20 years or more.

23
Q

When an easement appurtenant exists between two parcels of land that are separately owned, the:
A) Dominant tenement has use of this easement only for ingress and egress
B) Servient tenement must have created the easement in writing
C) Dominant tenement is benefited by the easement
D) Servient tenement may revoke the use of easement by giving proper notice

A

C) Dominant tenement is benefited by the easement

Dominant easement holder goes over the servient easement holder’s land to access their property.

24
Q 
The right of a water company to lay and maintain water mains along the rear of a lot is called a(n):
A) Appurtenance
B) Riparian right
C) Easement in gross
D) Right of encroachment
A

C) Easement in gross

Utility companies usually receive Easements in Gross and not Easement Appurtenant.

25
Q

The most practical method of imposing restrictions on all lots in a large new subdivision is by:
A) Publishing the restriction in a newspaper of general circulation
B) Including the restrictions as covenants in all deeds
C) Recording the restrictions, prior to any sales, in the manner provided by law
D) Posting the restrictions on the property

A

C) Recording the restrictions, prior to any sales, in the manner provided by law

Restrictive covenants are recorded in the deed for the benefit of all who purchase property in the project. Developers create the covenants prior to selling the land to the public.

26
Q 
An easement is presumed abandoned if the owner vacates the property for a continuous period of at least how many years?
A) 7
B) None of these
C) 15
D) 20
A

B) None of these

There is no time period specified on the abandonment of an easement. Non-use does not qualify as an abandonment.

27
Q 
The beneficiary in a Land Trust normally owns:
A) Real property
B) Personal property
C) All of the property in trust
D) Real estate
A

B) Personal property

Land trust is a device to hold title to land in a trust with the beneficial ownership held by the landowner and is considered to be personal property.

28
Q

Manuel owns land registered in Land Court. He borrows $100,000 from Bart and signs a mortgage encumbering the land. The mortgage has never been registered. Manuel then sells the land to Lee who registered the title in Land Court. In what position does Lee find himself?

A) He is liable for the mortgage whether or not he knew about it
B) He is liable because he knew about the mortgage
C) He is liable when Bart takes him to court
D) He is not liable because the mortgage was not registered

A

D) He is not liable because the mortgage was not registered

An unregistered lien on land court property will not have a priority of liens on the subject property. Lee is not liable for the mortgage that Manuel borrowed.

29
Q 
It is characteristic of a fee simple estate that it cannot be:
A) Subdivided
B) Inherited
C) Both of the above
D) None of the above
A

D) None of the above

Fee simple property can be subdivided and inherited.

30
Q

These statements regarding restrictive covenants on real property are all true, EXCEPT:
A) They run with the land
B) They are enforceable in a court of equity unless contrary to public opinion
C) They are limited to a specific time period
D) They may be removed from the record without legal action

A

C) They are limited to a specific time period

Restrictive covenants are usually not limited to a time period and runs with the life of the land.

31
Q 
Mom and Dad own their own home as tenants in common. Mom deeds her share to the two children before she dies. Dad decides to sell the house. Who should sign the listing?
A) Dad
B) Mom and Dad
C) Dad and both children
D) Dad and one of the children
A

C) Dad and both children

Dad and the children are legal owners of the property and should sign the listing agreement.

32
Q 
An owner's interest in the property over and above all liens mortgages thereon is:
A) A surplus
B) A profit
C) A security
D) Equity
A

D) Equity

Equity is the difference between the fair market value and the outstanding mortgage balance on the property.

33
Q 
If Jorge and Mary owned an undivided interest in the property, and when Jorge died Jorge's share would pass on to Jorge's children and heirs, and when Mary died Mary's share would pass on to Jorge, how do Jorge and Mary hold title to the property?
A) Joint tenancy
B) Tenancy in common
C) Tenancy in severalty
D) Tenancy by the entirety
A

B) Tenancy in common

Jorge willed his share to his children and Mary willed her share to Jorge which is allowed in Tenancy in Common.

34
Q 
Henry is married to Winifred in 1988. Henry buys property in 1990 and takes ownership by severalty. Subsequently, Henry dies. Winifred could petition for:
A) Dower
B) Curtesy
C) Elective share
D) Community property
A

C) Elective share

The Elective Rights became effective after July 1, 1977 whereas dower and curtesy rights ended on July 1, 1977.

35
Q 
Only a husband and wife may hold title to real property as:
A) Joint tenants
B) Tenants by the entirety
C) Tenants in common
D) Tenants by the severalty
A

B) Tenants by the entirety

In Hawaii, only males and females that are married can hold title to property in Tenancy by the Entirety.

36
Q

Two sisters, F and M, inherit real property from their mother with no stipulation except that one-third is to go to F and two-thirds to M. Which of the following is true?
A) F and M are joint tenants of the property
B) M may not mortgage her interest in the property without F’s consent
C) Upon F’s death, her part of the property reverts to M
D) Upon M’s death, her share passes to her heirs or devisees

A

D) Upon M’s death, her share passes to her heirs or devisees

When unequal shares of property are held by two or more owners, the title must be in Tenancy in Common.

37
Q

If title to a farm is held in tenancy by the entirety, which of the following is true?
A) A specifically enforceable contract to sell the farm must be signed by husband and wife
B) A creditor of one spouse can assert a valid lien on the farm
C) Either husband or wife may partition the property
D) The shares may be unequal

A

A) A specifically enforceable contract to sell the farm must be signed by husband and wife

38
Q

A disadvantage of land trust is that:
A) The land trust can be used as an effective replacement for the agreement of sale
B) Actual owners must be disclosed on any governmental application for zoning
C) A land trust can permit an owner to divide his beneficial interest into smaller units of ownership so that it can be given as gifts over a period of years
D) After the trust is established, it is possible to keep the names of the beneficial interest confidential

A

B) Actual owners must be disclosed on any governmental application for zoning

39
Q

All of the following forms of ownership are recognized under Hawaii law EXCEPT:
A) Tenancy in common
B) Joint tenancy with survivorship rights
C) Community property
D) Tenancy by the entirety

A

C) Community property

Hawaii is not a community property state.

40
Q

The reciprocal beneficiary law extends certain rights and benefits that were previously only available to married couples to couples that are legally prohibited from marrying (gay and lesbian) under Hawaii state law. In order to enter into a valid relationship all of the following are necessary except:
A) Each party must be at least twenty-one years old
B) Each party sign a declaration of reciprocal beneficiary relationship
C) The parties be legally prohibited from marrying one another
D) The parties be unmarried

A

A) Each party must be at least twenty-one years old

In Hawaii, legal age is 18.

41
Q

A recorded private covenant in a new subdivision can be:
A) Less strict than the county zoning code
B) More strict than the zoning code
C) Enforced by the county planning department
D) Enforced by taking the violator’s land back by the association

A

B) More strict than the zoning code

42
Q

House A’s rock wall was built into House B’s lot by 4.5 inches in agricultural zoned land
A) House A owner must get an encroachment agreement from House B owner
B) The 4.5 inches is not deemed to be an encroachment by state law
C) House A owner must remove the part of the wall that is in House B’s lot.
D) House A’s wall can be 18 inches into House B’s lot and not be deemd to be an encroachment

A

B) The 4.5 inches is not deemed to be an encroachment by state law

The States De Minimus Structure Position Discrepancies gives a minor allowable tolerance of 9 inches for agricultural land.

43
Q

Three brothers inherit a house from mom in Tenancy in Common. Brother 1 deeds his share to his daughter
A) Brothers 2 and 3 must give consent to the transfer
B) The transfer does not need Brothers 2 and 3 to consent
C) Brother 1 must petition for a partition suit sale
D) Transfer is illegal and void

A

B) The transfer does not need Brothers 2 and 3 to consent

Under Tenancy in Common ownership one is free to sell, give away, or will away his interest as he sees fit and the new owner simply becomes a new tenant in common with the other owner or owners.

44
Q

Five sibligns own a 5 acre farm lot in Joint Tenancy
A) When sibling 1 dies, the property must go through probate
B) When sibling 3 dies, his share goes to his daughter
C) Sibling 5 can deed her share to her husband in her will
D) None of the above

A

D) None of the above

45
Q 
If a payment of $57.75 interest only is made every three months on a $4,200 loan, what is the rate of interest?
A) 5 1/2%
B) 1 3/8%
C) 4 1/8%
D) 18 1/6%
A

A) 5 1/2%

46
Q 
On February 15, 1987, a three-year fire insurance policy was purchased for $306. A tax for the calendar year in the amount of $621.60 has been paid when the house was sold on June 15, 1988. What is the unused portion due at closing?
A) $506.70
B) $472.70
C) $454.90
D) $420.90
A

A) $506.70

47
Q 
A woman purchased a property for $35,000. She made a 10% deposit. She obtained a mortgage for 75% of the purchase price, with a 1% origination fee. What additional cash does she need at closing?
A) $9,012.50
B) $9,762.50
C) $8,774.50
D) $5,512.50
A

D) $5,512.50

48
Q 
Seller wants to net $160,000 from the sale of her property. She must pay $2,500 miscellaneous charges and will receive a $1,500 tax credit from the buyers. The broker will receive an 8% commission. What will the selling price be?
A) $178,300
B) $175,000
C) $173,000
D) $171,200
A

B) $175,000

49
Q 
A property sold for 15% less than the $170,000 list price. The 6% commission is split equally by the broker and salesperson. If the salesperson gives 20% of her commission to her assistant salesperson, what will she retain?
A) $6936
B) $4335
C) $4080
D) $3468
A

D) $3468

50
Q 
One salesperson with Mahalo Realty made an arrangement with the firm to receive a $200 draw each week against her commission. If the commission she receives is 1.75 percent and she sold $1,800,000 for the year, what is true?
A) Her commission earned is $31,500
B) She earned $21,100 over her draw
C) Both of the above
D) None of the above
A

C) Both of the above

Real Estate Pre-Licensing module 1 (1 decks)

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