Real Property Characteristics, Definitions, Ownership, Restrictions, and Transfers

Question 1

Where would the exceptions and reservations appear on a title report?

A: Deed
B: Schedule A
C: Schedule B
D: Title Instructions

Answer 1

C: Schedule B

Question 2

A buyer executes a chattel mortgage in favor of a lender. What type of property would be covered by a chattel mortgage?

A: The real estate
B: An automobile
C: An newly installed furnace
D: Office furniture and equipment

Answer 2

D: Office furniture and equipment

Question 3

A lender is loaning money on a residential property. What type of title insurance would the lender require?

A: Liability
B: Errors and Ommissions
C: Extended
D: Standard

Answer 3

A: Extended

Question 4

Which of the following would be considered a security?

A: Real estate tax
B: Community Property
C: Single family home in an investment pool
D: Cloud on Title

Answer 4

Single family home in an investment pool

Question 5

Property accumulated by husband and wife by the efforts of either, which is equally divisible at time of divorce or dissolution, is termed:

A: Equitable Distribution
B: Community Property
C: Real Property
D: Joint Tenancy

Answer 5

B: Community Property

Question 6

Which of the following would be considered a chattel?

A: an in ground swimming pool
B: a fence
C: Goods or other items of personal property that have not been annexed to the real property.
D: a new furnace

Answer 6

Goods or other items of personal property that have not been annexed to the real property.

Question 7

Alex gives a life estate to Bill and upon Bill’s death it reverts back to Alex. What best represents Alex?

A: reversion
B: fee determinable
C: fee conditional
D: Remainder

Answer 7

Reversion

Question 8

A valid encumbrance affecting title of estate and land (such as a mortgage or judgment) is called a:

A: Chattel mortgage
B: Cloud on title
C: Contract for deed
D: Condemnation

Answer 8

B: Cloud on title

Question 9

The tenant’s right to harvest crops after a lease expires is called:

A: the right of emblements
B: reversion rights
C: remainder rights
D: leasehold rights

Answer 9

The right of Emblements

Question 10

A commercial tenant installs a pizza oven in his new restaurant. The pizza oven would be deemed a/an:

A: Leasehold
B: Encumbrance
C: Chattel
D: Fixture

Answer 10

Chattel

Question 11

What would NOT be a use of police power?

A: Environmental regulations
B: State laws
C: Condemnation of a property
D: Licensing of real estate agents

Answer 11

C: Condemnation of property

Question 12

What would not apply to community property with right of survivorship?

A: avoiding probate
B: Willing to a third party
C: can only be held by husband and wife
D: step up in basis

Answer 12

B: willing to a third party

Question 13

A commercial tenant offers a bank his showcase, furniture, paintings and other items that he has placed in the rental property. The tenant would execute which of the following in favor of the bank?

A: a chattel mortgage
B: an easement
C: a leasehold estate
D: a mortgage

Answer 13

A: a chattel mortgage

Question 14

A husband and wife acquire property during their marriage. The property is titled in one spouse’s name only. At the time of a divorce, the court equally divides the property based upon the state’s jurisdictional laws. Which best describes the state of the couple’s ownership during the divorce?

A: Commingling
B: Community Property
C: Constructive notice
D: Cooperative

Answer 14

B: community property

Question 15

A person owns property with another and upon the death of one party the heirs receive no interest in the property, the title was held:

A: Sole and seperate
B: Joint tenancy
C: In severalty
D: Tenancy in common

Answer 15

B: joint tenancy

Question 16

Perhaps the easiest way to remove a cloud on title is:

A: Eminent domain
B: A quitclaim deed
C: a foreclosure
D: a quiet title action

Answer 16

A quitclaim deed

Question 17

One of the appurtenances to a parcel of land would be a/an:

A: bill of sale
B: Bundle of rights
C: assignment
D: easement in gross

Answer 17

Bundle of rights

Question 18

What would a life tenant hold?

A: Leasehold
B: Fee Simple
C: Sufferance
D: Freehold

Answer 18

D: Freehold

Question 19

The term “Ad Valorem” refers to:

A: a tax that has value
B: According to value
C: a tax to be paid based upon a value set by the government
D: A tax to be paid based on the value set by the lender

Answer 19

a tax to be paid based upon a value set by the government

Question 20

The local city council decides to reduce the assessment rate for a major corporation that is relocating to the area to build a manufacturing plant. Such a reduction is termed:

A: amortization
B: Ad Valorem
C: Abatment
D: Assignment

Answer 20

Abatement

Question 21

How could a trespasser become the owner of real property?

A: adverse possession
B: affidavit of title
C: Easements of pertinent
D: Easement by prescription

Answer 21

adverse possession

Question 22

A new developer is giving some of the land in the subdivision to the city for the construction of new streets. The developer’s act of giving land to a public agency is called:

A: disintermediation
B: deed of trust
C: dedication
D: deed restrictions

Answer 22

Dedication

Question 23

The owner of a undivided interest in land with no rights of survivorship owns it by:

A: Join tenancy
B: tenancy in common
C: Community property
D: Sole and Seperate

Answer 23

tenancy in common

Question 24

A tax levy on real property for government improvements (i.e. curbs, sewers and sidewalks) is known as:

A: ad valorem tax
B: special assessment tax
C: flat rate tax
D: a tax based upon the value of the property

Answer 24

special assessment tax

Question 25

The right to use, enjoy, possess and dispose of real property is commonly referred to as: A: bundle of rights B: bill of sale C: billing codes D: Encumbrance

Answer 25

bundle of rights

Question 26

The term dedication refers to: A: the transfer of real property by a private owner to a public agency B: the right acquired by the owner of one parcel of land to use the adjacent land of another C: An additional fee charged by a lender to make the yield on lower market interest rate loans competitive with higher interest conventional loans D: an instrument used in many states in place of a mortgage

Answer 26

the transfer of real property by a private owner to a public agency

Question 27

A buyer decides to buy a house and all the furniture in it. The buyer and seller should execute which of the following? A: a habendum clause B: a mortgage and promissory note C: a deed and a mortgage D: a deed and bill of sale

Answer 27

A deed and bill of sale

Question 28

The term appurtenance: A: refers to rights that only last for a certain period of time B: Means "runs with the land" C: refers to the rights a tenant owns in the landlords property D: is best exemplified by an easement in gross

Answer 28

means "runs with the land:

Question 29

A parcel of land that separates two other parcels (i.e. a parcel between a residential and commercial strip of land) is called a/an: A: assesses property B: fully capitalized property C: bill of sale D: buffer zone

Answer 29

buffer zone

Question 30

An instrument in writing that transfers ownership of tangible property is called a/an: A: Listing B: Mortgage C: Bill of sale D: Blanket mortgage

Answer 30

bill of sale

Question 31

A tax levied upon the sales price of an automobile would termed a:

Answer 31

ad valorem tax

Question 32

A city decides to create a park to separate a residential neighborhood from a commercial strip of land. The area that the park occupies would be known as a: A: buffer zone B: adverse possession C: easement D: redlined area

Answer 32

buffer zone

Question 33

A home is sold at public auction (foreclosure sale). The proceeds of this sale will first be used to pay: A: Second mortgage liens B: Sheriffs cost of sale C: real estate taxes D: Mortgage liens

Answer 33

sheriffs cost of sale

Question 34

With regard to real estate, accretion refers to which of the following processes? A: gradual building up of the property B: continual regression of the property C: funds entering the wrong accounts D: erosion at the shore line of a home with riparian rights

Answer 34

gradual building up of the property

Question 35

Which of the following is true of the common area of a condominium project? A: the common area in a condominium is owned by the government and does not require insurance coverage B: the owners association usually has liability insurance coverage for common area C: each owner maintains an individual policy over the common area D: the owners insure only their own individual units, and the common areas are left uninsured

Answer 35

the owners association usually has liability insurance coverage for common area

Question 36

A deed used to transfer title states that the conveyance will remain in effect "so long as the property is not used for the sale of alcoholic beverages." The buyer would receive what kind of estate? A: A fee tail estate B: Reversionary Estate C: Fee Simple defeasible Estate D: Fee simple absolute estate

Answer 36

C: Fee Simple defeasible Estate

Question 37

Sally wishes to guarantee that her grandchildren receive her home and farm after her son dies. She should then: A: Put the property in joint tenancy with herself and the grandchildren B: Make the children tenants in common with their father C: Devise the property directly to the grandchildren D: Leave her son a life estate, naming the grandchildren as a remainder interest

Answer 37

D: Leave her son a life estate, naming the grandchildren as a remainder interest

Question 38

Which of the following statements regarding condominium ownership is correct? A: A unit owner has a proprietary lease B: An owner must take title as joint tenants with other owners C: A unit owner may devise the property D: unit owners do not receive a property tax bill

Answer 38

C: A unit owner may devise the property

Question 39

What warrant indicates that the grantee is the owner of the property? A: Recordation B: Further assurance C: Seizin D: Quiet Enjoyment

Answer 39

C: Seizin

Question 40

When a Quit Claim deed is used, what type of interest does the grantee have? A: Warranties to clear title B: Whatever interest the grantor held C: Quiet Enjoyment D: Covenant of seisin

Answer 40

B: Whatever interest the grantor held

Question 41

When a woman has an interest in land that will continue as long as she lives, she has: A: An easement B: A fee simple estate C: An estate for years D: A life estate

Answer 41

D: A life estate

Question 42

What would an owner's policy of title insurance cover? A: Forged documents B: Unrecorded documents C: Gaps in the chain of title D: All items recorded on the public record

Answer 42

D: All items recorded on the public record

Question 43

The owner of a undivided interest in land with no rights of survivorship owns it by: A: a joint tenancy B: tenancy in common C: absolute ownership D: Severalty

Answer 43

B: tenancy in common

Question 44

The open, notorious, hostile, and uninterrupted possession of the property of another under claim or color of title is called: A: acceleration B: Adverse possession C: Easement by prescription D: Easement by necessity

Answer 44

B: Adverse possession