real estate questions

A professional opinion of a property's market value, based on established methods and using trained judgement, is performed by

A real estate appraiser

In general, when the supply of a certain commodity increases

Price tends to drop

Which factor primarily affects supply in the real estate market?

Government monetary policy

Which factor is MOST likely to influence demand for real estate?

Wage levels and employment opportunities

Property management, appraisal, financing, and development are all examples of

Specializations within the real estate industry

What type of federal law prohibits discrimination in the provision of housing and housing-related services (including lending) based on individual's race, color, national origin, religion, sex, familial status, or disability?

Fair housing

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town's housing market?

Houses will likely become more expensive

A real estate professional who has several years of experience in the industry decided to retire from actively marketing properties. Now this person helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is this person's profession?

Real estate counselor

Nationwide Multistate Licensing System and Registry was created to register

Mortgage loan originators

Schools would be considered part of which real estate classification?

Special purpose

When demand for a commodity decreases and supply remains the same

Prices tend to fall

The difference between the cost basis of property and its net selling price is

Capital gain

The use of borrowed money to finance an investment is called

Leverage

All of the following are categories of the uses of real property EXCEPT

Developmental

All of the following would affect demand EXCEPT

Monetary policy

All of the following affect how quickly the forces of supply and demand work EXCEPT

Degree of standardization of the property's price

A person who performs a visual survey of a property structure and write a report for a buyer is

A home inspector

Another name for depreciation is

Cost recovery

A person or company responsible for maintaining a client's property and maximizing the return on the client's investment is serving as

A property manager

Detailed information about the age, education, behavior, and other characteristics of members of a population group is called

Demographics

Real estate generally includes all the following EXCEPT

Annual crops

A bookstore rents space in a commercial building. The bookstore has large reading tables fastened to the walls and bookshelves bolted to both the ceiling and the floor that create aisles from the front of the store to the back. These were all installed by the bookstore owner. Which of the following BEST characterizes the contents of the bookstore?

The shelves and tables are trade fixtures and may properly be removed by the bookstore's owner before the lease expires, with the tenant responsible to the landlord for any damage that the removal causes to the premises

The term nonhomogeneity refers to

Uniqueness

Another term for personal property is

Chattels

A property owner want to use water from a river that runs through the property to irrigate a potato field . To do so, the owner is required by state law to submit an application to the Department of Water Resources describing in detail the plan for beneficial use of the water. If the department approves the owner's application, it will issue a permit allowing a limited amount of river water to be diverted onto the property. Based on these facts, it can be assumed that this property owner's state relies on which rule of law?

Doctrine of prior appropriation

The owner of a piece of vacant land removed and sold all the topsoil, limestone, and gravel. At the owner's death, which is TRUE?

The heir of the deceased inherits the property as is

In determining whether an item is real or personal property, a court would NOT consider which of the following?

The cost of the item when it was purchased

Which of the following is a physical characteristic of land?

Idestructibility

Which of the following describes the act by which real property can be converted into personal property?

Severance

While moving into a newly purchased home, the buyer discovered that the seller had taken the ceiling fan that hung over the dining room table. The seller had not indicated that the ceiling fan would be removed, and the contract did not address this issues. Which statement is TRUE?

Ceiling fans are usually considered real estate

A buyer purchased a parcel of land and immediately sold the mineral rights to and oil company. The buyer gave up which of the following?

Subsurface rights

A truckload of lumber that a homeowner purchased has been left in the driveway for use in building a porch. The lumber is considered

Personal property

Method of annexation, adaption to real estate, and agreement between the parties are the legal tests for determining whether an item is

A fixture or personal property

Parking spaces in multi-unit buildings, water rights, and similar things of value that convey with property are classified as

Appurtenances

A resort purchases a large tract of scenic forest land and puts several prefabricated steel buildings there to store landscaping equipment, fuel oil, and propane canisters. Which statement is TRUE regarding this situation?

The resort's action constitutes improvements of the property

A property owner's land is located along the banks of a river. This owner's water rights are called

Riparian rights

A property owner's bundle of legal rights entitles the owner to do all of the following EXCEPT

Exclude utility meter readings

According to law, a trade fixture is usually treated as

Personalty

A buyer is interested in a house that is well designed but is located in a busy area that is problematic for the buyer. The buyer's concern about the property's location is called

Area preference

Which of the following is considered personal property?

Patio furniture

The right of a government body to take ownership of real estate for public use is called

Eminent domain

One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property has

Fee simple absolute

The owner of fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital "so long as it is used for hospital purposes." After completion of the gift, the hospital will own

A fee simple determinable

Your neighbors use your driveway to reach their garage on their property. Your attorney explains that the neighbors' real estate includes an easement appurtenant giving them the right to do this. Your property is

The servient tenement

An easement appurtenant

Runs with the land

A property on Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government's power of

Eminent domain

Which of the following is NOT an example of governmental power?

Remainder

A property owner who has the legal right to use a neighbor's land holds

An easement

Which of the following is a legal life estate?

Homestead

An owner conveys ownership of a residence to a church but reserves a life estate in the residence. The future interest held buy the church is

A reversion

The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbor's property. The fence is an example of

An encroachment

A homeowner may be allowed certain protection from judgments of creditors as a result of the state's

Homestead rights

A person has permission from a property owner to hike on the owner's property during the autumn months. The hiker has

A license

A homestead is a legal life estate in real estate that is

Occupied as the family home

Because a homeowner failed to pay the real estate taxes on time, the taxing authority imposed a claim against the homeowner's property. This claim is known as a

A lien

The type of easement that is a right-of-way for a utility company's power lines is

An easement in gross

The process by which government takes control of a property after the owner dies without a will or lawful heirs is

Escheat

A landowner has divided a large parcel of land into smaller parcels and has recently sold a tract near a nature preserve that is landlocked and cannot be entered except through one of the other tracts. The buyer of that property will probably be granted what type of easement by court action?

Easement by necessity

All of the following will terminate an easement EXCEPT

Release of the right of easement to the dominant tenement

A license is an example of

A personal privilege

The four unities of possession, interest, time, and title are associated with which of the following?

Joint tenancy

A parcel of property was purchased by two friends. The deed they received from the seller at closing transferred the property without stipulating a form of ownership. The two friends took title as which of the following?

Tenants in common

Three people are joint tenants with rights of survivorship in a tract of land. One owner conveys his interest to a friend. Which statement is TRUE?

The other two owners remain joint tenants

A man owns one of 20 units in fee simple, along with a 5% ownership share in the parking facilities, recreation center, and grounds. What kind of property does he own?

Condominium

A trust is a legal arrangement in which property is held for the benefit of a third party by

A trustee

According to some states, any real property that either spouse owns at the time of marriage remains separate property. Further, any real property acquired by either spouse during the marriage (except by gift or inheritance or with the proceeds of separate property) belongs to both of them equally. What is this form of ownership called?

Community property

Three people were concurrent owners of a parcel of real estate. When one of the owners dies, that interest became part of the deceased's estate. The deceased was

A tenant in common

A legal arrangement under which the title to real property is held to protect the interests of a beneficiary is

A trust

A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called

Cooperative

An owner purchased an interest in a house in Beachfront. The owner is entitled to the right of possession only between July 10 and August 4 of each year. Which of the following is MOST likely the type of ownership that has been purchased?

Time-share

A corporation is a legal entity, recognized as an artificial person. Property owned solely by the corporation is owned in

Severalty

Which of the following refers to ownership by one person?

Severalty

A married couple co-owns a farm and has the right of survivorship. This arrangement is MOST likely

An estate by the entirety

The real property interest that takes the form of personal property is

Cooperative unit ownership

Two people are co-owners of a small office building with the rights of survivorship. One of the co-owners dies intestate and leaves nothing to be distributed to heirs. Which of the following would explain why the surviving co-owner acquired the deceased's interest?

Joint tenancy

Which of the following is MOST likely evidence of ownership in a cooperative?

Shareholder stock

An ownership interest that can be an estate interest or a right of use is

A time-share

Which statement applies to both joint tenancy and tenancy by the entirety?

The last survivor becomes a severalty owner

Which of the following is NOT a form of co-ownership?

Ownership in severalty

If property is held by two or more owners as joint tenants, the interest of a deceased co-owner will be passed to

The surviving owner or owners

When surveying land, a surveyor refers to the principal meridian that is

Within the rectangular survey system area in which the land being surveyed is located

The N1/2 of the SW1/4 of a section contains how many acres?

80

In describing real estate, the method that may use a property's physical features to determine boundaries and measurements is

Metes and bounds

How many acres are contained in the tract described as "beginning at the NW corner of the SW1/4, then south along the west line to the SW corner of the section, then east along the south line of the section 2,640 feet, more or less, to the SE corner of the said SW 1/4, then in straight line to the POB"?

80 acres

As a legal description, "the northwest 1/4 of the southwest 1/4 of Section 6, Township 4 North, Range 7 West" is defective because it contains no reference to

A principal meridian

Which of the following are NOT basic components of a metes-and-bounds description?

Base lines, principal meridians, and township

What is the shortest distance between Section 1 and Section 36 in the same township?

Four miles

In any township, what is the number of the section designated as the school section?

16

The LEAST specific method for identifying real property is

Street address

The basic requirements for a valid conveyance are governed by

State law

Every deed must be signed by

The grantee

A 15-year-old recently inherited a parcel of real estate and has decided to sell it. If the 15-year-old executes a deed conveying the property to a purchaser, such a conveyance would be

Voidable

A form authorizing one person to execute documents for another is called

A power of attorney

The grantee receives greatest protection with what type of deed?

General warranty

Party Y receives a deed from party X. The granting clause of the deed states, "I hereby remise, release, alienate, and convey to Y the following real property." What type of deed has Y received?

Special warranty

Under the covenant of quiet enjoyment, a grantor

Ensures that the title will be good against the title claims of third parties

Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property?

Bargain and sale

At which of the following steps did title to the house actually transfer or pass to B?

Step 1: A decided to convey a house to B

Step 2: A signed a deed transferring title to B

Step 3: A have the signed deed to B, who accepted it

Step 4: B took the deed to the county recorder's office and had it recorded

Step 3

P signed a deed transferring ownership of P's house to Q. To provide evidence that P's signature was genuine, P executed a declaration before a notary. This declaration is known as

An acknowledgement

Title to real estate may be transferred during a person's lifetime by

Involuntary alienation