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30 Hour Class - Chapter 1: PA Law Exam > Unit 1 - Questions > Flashcards

Unit 1 - Questions Flashcards

1
Q

In general, a real estate license may NOT accept compensation for selling ______ on behalf of a client.
a. Commercial Property
b. Securities
c. Timeshares
d. Vacant Land

A

b. Securities
A person must have a broker-dealer license in order to sell securities.

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2
Q

The majority of new licensees begin their work in what market?
a. Commercial properties
b. Multi-family residential
c. Property management
d. Single-family residentia

A

d. Single-family residential

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3
Q

An independent contractor licensee
a. Cannot be charged for office space or supplies by the broker
b. Earns commission based on the results of his or her work efforts
c. Is subject to strict direction or control by the broker
d. Is paid for the number of hours worked

A

b. Earns commission based on the results of his or her work efforts

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4
Q

Which is NOT one of the factors used by the IRS to determine whether a real estate agent qualifies as a statutory non-employee?
a. Has a fiduciary relationship with clients
b. Paid for output, not hours worked
c. Properly licensed
d. Written and signed contract with broker

A

a. Has a fiduciary relationship with clients

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5
Q

At the end of the year, what form will an independent contractor receive that details his or her compensation of the year?
a. 1040 ICA
b. 1099-MISC
c. W-2
d. W-4

A

b. 1099-MISC

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6
Q

An employer is responsible for withholding each of these from an employee’s paycheck EXCEPT
a. Income tax
b. Medicare tax
c. Property tax
d. Social security tax

A

c. Property tax

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7
Q

Salesperson L uses the multiple listing service to find the perfect house for buyer B. When B buys the house, who will give L a check for the commission he earned?
a. B, his buyer client
b. L’s broker
c. The manager of the multiple listing service
d. The seller

A

b. L’s broker
as a licensed salesperson, L can accept compensation only from his broker, never from a member of the public

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8
Q

Which is NOT an advantage of a career in real estate sales?
a. Possibility of owning your own brokerage with additional training, education, and experience
b. Potential for unlimited earnings
c. Setting your own hours
d. Predictable income

A

d. Predictable income

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9
Q

When may a person use the term REALTOR®?
a. After closing the first successful transaction
b. As soon as the person passes the real estate license examination
c. Only after becoming a member of the National Association of REALTORS®
d. Upon the sponsorship of his or her broker

A

c. Only after becoming a member of the National Association of REALTORS®

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10
Q

The Multiple listing service (MLS) was created so that
a. Agency agreements and disclosures would not be necessary.
b. Brokers could have a secure place to record a client’s confidential information
c. Member brokers could share listings with a blanket offer of corporation and compensation
d. Sellers and buyers could find each other

A

c. Member brokers could share listings with a blanket offer of corporation and compensation

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11
Q

ABC Cable Inc. in getting ready to build a new call center in Smithton that should attract hundreds of new workers in a small town. What would you expect the immediate effect on home prices in the area to be?
a. Home prices should fall initially.
b. Home prices should rise initially.
c. Home prices should not be affected.
d. It’s not possible to predict.

A

b. Home prices should rise initially.

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12
Q

A large influx of people into a community is likely to result in which type of real estate market?
a. Buyer’s market
b. Seller’s market
c. Should not affect the market
d. Impossible to predict

A

b. Seller’s market

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13
Q

What is the most important factor in determining supply in the real estate market?
a. Economic base of an area
b. Government programs
c. Interest rates
d. Population growth

A

a. Economic base of an area

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14
Q

What is the impact of low inflation on the real estate market?
a. It generally raises interest rates
b. It decreases the cost of a newly built home
c. It increases the price of existing homes
d. The market would not be affected

A

b. It decreases the cost of a newly built home
low inflation generally results in lower wages and lower prices for goods, leading to lower construction costs

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15
Q

What factor is NOT LIKELY to contribute to a buyer’s market?
a. Increased layoffs at a local factory
b. Limited new construction
c. Low construction costs for labor and materials
d. Migration away from the area

A

b. Limited new construction

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16
Q

Which situation would NOT LIKELY result in a seller’s market?
a. High construction costs
b. Low interest rates
c. Migration out of an area
d. Minimal new construction

A

c. Migration out of an area

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17
Q

What is the acronym you can use to remember the broad factors that impact the real estate market?
a. PATS
b. PEGS
c. PETE
d. PITI

A

b. PEGS
Physical Economic Government Social

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18
Q

What is another word that refers to the non-homogeneity of real property?
a. Immobility
b. Scarcity
c. Uniformity
d. Uniqueness

A

d. Uniqueness

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19
Q

An increase in the cost of goods or services is known as
a. The cost of money
b. Economic base
c. Inflation
d. Lag time

A

c. Inflation

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20
Q

Which is NOT a physical characteristic of land?
a. Balance
b. Immobility
c. Scarcity
d. Uniqueness

A

a. Balance

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21
Q

When the entire bundle of rights associated with real property is sold, it is known as the _____ which means “I own it and I have the right to sell it”
a. Conveyance of fructus
b. Livery of seisin
c. Livery of situs
d. Transfer of allodial estates

A

b. Livery of seisin

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22
Q

Real Estate is any interest in land, such as a freehold interest, which means the owner has which of the following?
a. Ownership without a mortgage
b. Ownership without an appurtenance or laches
c. Ownership in real property, an estate
d. Possession in accretion with minor ownership

A

c. Ownership in real property, an estate

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23
Q

Mrs. Smith has a lovely hillside home, overlooking a pretty lake. She wants to protect her property from a new hotel that a developer is thinking about building there. What should she do?
a. Mrs. Smith has no recourse except to move
b. Mrs. Smith should seek a deficiency judgment against the developer
c. Mrs. Smith should buy a scenic easement from the current owner of the property
d. Mrs. Smith should buy the entire property and build the hotel herself.

A

c. Mrs. Smith should buy a scenic easement from the current owner of the property

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24
Q

If a trade fixture is not removed by the expiration of the lease, the trade fixture becomes the property of the ______ at the end of the lease term.
a. State of PA
b. Clerk of Court
c. Landlord
d. Morgagee

A

c. Landlord

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25
Q

An _____ in real property is the degree and quality of ownership one holds in the real property.
a. Estate
b. Interest
c. Appurtenance
d. Emblement

A

a. Estate

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26
Q

Listing and sale contracts should clearly define what is real property and personal property in the agreement, and the personal property should always be transferred by which of the following?
a. Deed
b. Deed of trust
c. Bill of trust
d. Bill of sale

A

c. Bill of trust

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27
Q

Real Property can be converted into personal property by?
a. Severance
b. Accession
c. Conversion
d. Affixing

A

a. Severance

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28
Q

One of three physical characteristics of land is _______, which means no two pieces of real estate are exactly the same; each has it’s own characteristics.
a. Nonhomogeneity
b. Accretion
c. Homogeneity
d. Situs

A

a. Nonhomogeneity

29
Q

A buyer was looking at buying a piece of real estate. The property was located in a very exclusive part of town where there were few homes available. He had to pay a premium price in order to purchase the property. These factors reinforce what economic characteristics of real estate?
a. The characteristics of immobility, utility and demand
b. The characteristics of nonhomogeneity, situs and indestructibility
c. The characteristics of demand, scarcity, and situs
d. The characteristics of transferability, utility, and demand.

A

c. The characteristics of demand, scarcity, and situs

30
Q

Which is NOT an example of an attachment?
a. a basketball hoop that is moved into the garage in the winter
b. a greenhouse that is built off the garage
c. the lily pond in the backyard Japanese garden
d. uncut roses on a rose bush planted by the back door

A

a. a basketball hoop that is moved into the garage in the winter (it can be moved)

31
Q

What term describes a right that transfers with ownership of real property?
a. appurtenance
b. encroachment
c. emblement
d. fixture

A

a. appurtenance

32
Q

Physical land and all improvements that are permanently attached to it is known as
a. land
b. real estate
c. real property
d. real and personal property

A

b. real estate

33
Q

A landowner needs water. His land contains no available water source. However, the landowner is given the right to cross over his next-door neighbor’s property to run a pipeline from a river to his land. Which right grants this permission?
a. appropriative
b. Littoral
c. Reliction
d. Riparian

A

a. appropriative

34
Q

Over the last several years, the tide has been depositing silt onto the property along a coastal inlet, increasing the size of the property. This is an example of
a. Accretion
b. Avulsion
c. Erosion
d. Reliction

A

a. Accretion
the gradual addition to dry land by the forces of nature

35
Q

J buys a house from K. J assumed that the curtains would be included in the price, even though the agreement of sale did not list them. What is the best argument J could make to persuade a judge if this goes to court?
a. “K mentioned that they went with the house”
b. “my agent assured me they were included”
c. “the curtains were custom-made for the odd-shaped window”
d. “the curtains were in the ad that appeared in the paper”

A

c. “the curtains were custom-made for the odd-shaped window”

36
Q

A bench and table are installed as a leasehold improvement in the breakfast nook of a rented single-family home. The bench and tables are bolted to the floor and must have been installed by the ___ and would most likely be ___ property.
a. landlord / personal
b. landlord / real
c. tenant / personal
d. tenant / real

A

b. landlord / real

37
Q

B bought a farm, and the sale included two tractors. What is required at the settlement to transfer ownership of those tractors?
a. bill of sale
b. deed
c. purchase agreement
d. sales contract

A

a. bill of sale
bill of sale is used to transfer ownership of personal property

38
Q

Which item is LEAST LIKELY to be a fixture?
a. the built-in washer that’s at the repair shop on the day of closing
b. the curio cabinet in the living room that matches the room decor
c. the keys to the house
d. the white picket fence around the house

A

b. the curio cabinet in the living room that matches the room decor

39
Q

Which of these is NOT considered when determining whether an item is a fixture or personal property?
a. intention of the annexer
b. manner of annexation
c. value of the annexation item
d. relationship of the parties

A

c. value of the annexation item

40
Q

H owns a small commercial building that he rents to L, who opens a ceramics shop. L installs a kiln. Four years later, H sells the property to A, who wants to start her own pottery business. When L’s lease is up, who owns the kiln?
a. former tenant L
b. new tenant A
c. Property owner H
D. It’s impossible to tell without more information

A

a. former tenant L

41
Q

Which is NOT an example of an improvement?
a. the barn on the back of the property
b. the fence running along the edge of the property
c. the line of pine trees planted along the edge of the property
d. the sewer line running along the front of the property

A

c. the line of pine trees planted along the edge of the property
an improvement is any man-made attachment to the land. Although someone may have planted the pine trees, they are not, in fact, improvements but natural attachments.

42
Q

A homeowner is preparing to build a pool and deck in the backyard. The contractor just delivered a load of lumber and concrete to his house for construction beginning next week. That lumber and concrete would be considered
a. improvements
b. personal property
c. real property
d. trade fixtures

A

b. personal property
once construction is underway, they will become part of the real property.

43
Q

When J bought D’s house, D turned over the house keys as part of the transaction. The house keys have become real property through the process of
a. actual annexation
b. adoption
c. agreement
d. constructive annexation

A

d. constructive annexation
the keys are attached conceptually, as opposed to physically, because of close association with real property, which is known as constructive annexation

44
Q

Each of these terms could be used to describe a tractor EXCEPT
a. appurtenance
b. chattel
c. personal property
d. personalty

A

a. appurtenance
an appurtenance is a right that goes along with ownership of real property. the other choices are synonymous terms to describe moveable property that is not attached to the land.

45
Q

What is another term for emblements?
a. fructus industriales
b. fructus naturales
c. leasehold improvements
d. trade fixture

A

a. fructus industriales
crops, forests, or other plants intended to benefit the farmers of such plants

46
Q

Physical land, its attachments, and its bundle of rights is known as
a. land
b. real estate
c. real property
d. real and personal property

A

c. real property
defined as the actual physical land, everything that is permanently attached to it, as well as the bundle of rights

47
Q

Which is NOT an example of avulsion?
a. after a storm, part of J’s property collapses in a mudslide.
b. during a drought, the lake dries up, giving U more land on which to grow a garden
c. a flash flood pulls G’s barn and the land on which it sat into the river
d. T’s hillside is torn away in an earthquake

A

b. during a drought, the lake dries up, giving U more land on which to grow a garden
avulsion is the eronsion of land through natural causes, such as flooding or earthquakes, which may remove soil or cause the collapse of riverbanks. U is gaining land through the process of reliction

48
Q

If a tenancy is terminated before a crop is ready to harvest, a tenant farmer has the right to re-enter the land later to harvest the crop. This rule is known as the doctrine of
a. appropriation
b. appurtenance
c. emblements
d. fructus industriales

A

c. emblements
the doctrine of emblements allows a tenant farmer to re-enter the land to harvest crops that were planted by the tenant farmer even after the land has been sold to a new owner

49
Q

What are two main types of possessory interest in real property?
a. easements and freehold estates
b. freehold estates and leasehold estates
c. easements and liens
d. liens and leasehold estates

A

b. freehold estates and leasehold estates

50
Q

Which statement about fee simple absolute estate is FALSE?
a. Fee simple absolute is the highest, freest form of ownership
b. a fee simple absolute estate is both transferable and inheritable
c. a person can own a fee simple absolute estate indefinitely
d. a person transferring a fee simple interest can put no limitations on the new owner

A

d. a person transferring a fee simple interest can put no limitations on the new owner
even when the current owner holds the property as a fee simple absolute, he or she can put limitations on the property that the new owner must follow.

51
Q

V owns 20 acres of land in the mountains and decides to deed the land to a cousin. V wants to ensure that the pristine beauty of the property is not marred by development and indicates in the deed that at least 10 acres must remain undeveloped. This is an example of:
a. fee simple absolute
b. fee simple defeasible
c. leasehold
d. life pur autre vie

A

b. fee simple defeasible
since V put a condition on the property, V limited what could be done with the property. This type of freehold estate is also called fee simple defeasible or qualified fee.

52
Q

J sold his land to F with the condition that F does not disturb the spring house built in 1750 that’s on the back of the property. When F tore the spring house down to install a swimming pool, J exercised his right of re-entry. What type of estate did J grant F, and what does J have to do to get the land back?
a. determinable fee estate; J gets the property automatically
b. determinable fee estate; J goes to court
c. fee simple subject to a condition subsequent; J gets the property automatically
d. fee simple subject to a condition subsequent; J goes to court

A

d. fee simple subject to a condition subsequent; J goes to court
the right of re-entry, which is an element of a fee simple subject to a condition subsequent estate, means that the original grantor has to prove in court that the condition occurred, it is not automatic. The possibility of reverter, which is an element of the determinable fee estate, is automatic.

53
Q

B owns property in fee simple. He grants a life estate to Z and a remainder estate to X. The life estate is based on Z’s life. Life tenant Z cannot
a. give the life estate away to someone else
b. live on the property
c. sell the life estate to a stranger
d. will the life estate to a family member

A

d. will the life estate to a family member
Z’s life estate is present estate. Z can live on the property, sell the life estate, or give the life estate away, but Z cannot will the life estate since the estate will terminate at Z’s death.

54
Q

G bought a house for K to live in, although G remains the owner. When K dies, G wants to retain possession of the property. Who will own the property when K dies and what is that person called?
a. the owner of the property will be G, who is the remainderman
b. the owner of the property will be G, who is the reversioner
c. the owner of the property will be K’s heir, who is the new life tenant
d. the owner of the property of the property will be K’s heir, who is the remainderman.

A

b. the owner of the property will be G, who is the reversioner
Ownership and possession of the property will revert to G when the life tenant K dies. G is the reversioner

55
Q

M conveys a life estate to N for as long as P shall live, and then to T. N dies before P dies. Now who has the present interest in the estate?
a. M, the grantor
b. N’s heirs
c. P, the measuring life
d. T, the remainderman

A

d. T, the remainderman
a life estate pur autre vie is inheritable. therefore, if life tenant N dies before measuring life P, dies, the life estate goes to N’s heirs.

56
Q

H has lived in her home for 30 years with her sister A. H’s son E will inherit H’s estate, but she wants to ensure A is still allowed to live in the home if she dies before A. H grants A a life estate. When H dies, which statement is TRUE?
a. A has a life estate where she is the life tenant and H is the measuring life. E is the remainderman
b. A is both the life tenant and the measuring life for the estate; E has a reversionary interest.
c. A is the measuring life of this life estate and E is the life tenant with a reversionary interest.
d. A’s life estate ends when H dies, and E takes possession of the property as reversioner

A

b. A is both the life tenant and the measuring life for the estate; E has a reversionary interest.

57
Q

R conveys a life estate a daughter C for as long as she lives, and then to son D. Who is D, and what does he own?
a. remainderman, present estate
b. remainderman, future estate
c. reversioner, present estate
d. reversioner, future estate

A

b. remainderman, future estate

58
Q

Of these, which estate is NOT inheritable?
a. fee simple absolute
b. fee simple defeasible
c. life estate pur autre vie
d. ordinary life estate

A

d. ordinary life estate

59
Q

L leases his property to S. L is the ___ and S is the ___.
a. landlord / lessor
b. lessee / lessor
c. lessor / lessee
d. tenant / landlord

A

c. lessor / lessee

60
Q

A leasehold estate is
a. personal property
b. real property
c. both personal property and real property
d. neither personal property nor real property

A

a. personal property

61
Q

Lessors have a(n) ____ interest in real property.
a. absolute
b. present
c. reversionary
d. temporary

A

c. reversionary

62
Q

N rents her house to D. D has a ___ estate, and N has a ____ estate. if N moves back into the house at the end of the lease, N will have a ___ estate.
a. leased fee / leasehold / freehold
b. leased fee / leased fee / leasehold
c. leasehold / leased fee / freehold
d. leasehold / leased fee / leasehold

A

c. leasehold / leased fee / freehold

63
Q

A tenant agrees to rent an apartment for six months for $700 a month. At the end of the six months, the lease automatically renews for another six months. What does the situation describe?
a. estate for years
b. holdover tenancy
c. periodic tenancy
d. tenancy at will

A

c. periodic tenancy
A lease that automatically renews like this is a periodic tenancy, also called an estate from year to year, even if it is a month-to-month lease.

64
Q

W owns two duplexes. When he dies, his four tenants must vacate the premises. What kind of estate does this indicate?
a. periodic tenancy
b. tenancy at sufferance
c. tenancy at will
d. tenancy for years

A

c. tenancy at will
A tenancy at will is not an inheritable estate, and it does not survive the death of the property owner (or a lessee). the leaseholds of these four tenants are terminated when W dies.

65
Q

M’s lease expired, but she continues living in the apartment without her landlord’s permission. This situation is considered a
a. periodic tenancy
b. tenancy at sufferance
c. tenancy at will
d. tenancy for years

A

b. tenancy at sufferance
Tenancy at sufferance, also known as an estate at sufferance, describes possession of property by a tenant who came into possession of the property under a valid lease but stays on after the lease expires without the landlord’s permission.

66
Q

R agrees to rent an apartment from K for three months for $500 a month. He moves January 1 and moves out March 31 without giving notice. What type of leasehold estate is this?
a. periodic tenancy
b. tenancy at sufferance
c. tenancy at will
d. tenancy for years

A

d. tenancy for years
A tenancy for years has a specific time frame, such as three months, along with a set payment per month. Even though it is not for a full year, this still describes a tenancy for years, which requires no notice to end.

67
Q

Y’s friend from college moves to town. Y lets her move into his house while she is looking for a job. What type of leasehold estate is the most likely to be?
a. periodic tenancy
b. tenancy at sufferance
c. tenancy at will
d. tenancy for years

A

c. tenancy at will
Since there is no specified time frame for the end of the lease, nor is there money exchanged, this is a tenancy at will. If the friend agrees to pay you some money once a month, then you would have a periodic tenancy

68
Q

Generally speaking, if a landlord accepts rent from a holdover tenant after the lease expires, what type of tenancy is created?
a. periodic tenancy
b. tenancy at sufferance
c. tenancy at will
d. tenancy for years

A

a. periodic tenancy
In most cases, if a landlord accepts rent from a holdover tenant after the lease has expired, the landlord has essentially agreed to terms, and a month-to-month or periodic tenancy is automatically created

30 Hour Class - Chapter 1: PA Law Exam (23 decks)

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