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Common Real Estate Tests Qns & Ans(From 22 Versions
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Common Real Estate Tests Qns & Ans(From 22 Versions
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Real Estate Unit Exam QuestionsLesson 2 exam questions
Unit 1
1. Which economic characteristic of land contains the concept that a land’s value can be affected by
the changes made to it, such as construction of a home or shopping center? Improvements
2. Which physical characteristic of land addresses the concept that while improvements may
deteriorate over time, the land itself cannot be destroyed? Indestructibility
3. Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He
decided to install sewer and underground electric for the entire subdivision, because he thinks
that he will easily recoup his initial infrastructure investment. This is an example of which
economic characteristic of real property? Permanence
4. What's the best definition of land? The earth's surface, extending downward to the center of the
earth and upward to infinity, including permanently attached natural objects
5. Which physical characteristic of land addresses the concept that the geographic location of a
piece of land is fixed and can never be changed? Immobility
6. Sander and Ginny bought an old industrial site and plan to get grant money to put an
environmental education center on the site. There are a few structures on the property, but they
are in disrepair, and it will likely be less expensive to tear them down and build new than to
rehabilitate them. However, the new owners are sure that they’ve made a great investment
because the land is in great shape. This reflects which physical characteristic of real property?
Indestructibility
7. Annette really wants to move to San Francisco, but she’s unsure whether she’ll be able to afford
to live there. Housing is very expensive because there simply is no room to build any new
housing units. Which economic characteristic does this reflect? Scarcity
Unit 2
1. Darrell lives in a very rural area where price levels have remained very low for several years.
What does this indicate about demand for housing in the area? Demand is low
2. Which of the following best describes the goal of governmental land use controls? To ensure the
health, safetly, and welfare of its citizens
3. The Sanchezes learned that the home they recently purchased has a limitation built in to the
deed affecting what sort of aesthetic changes they can make to the outside of their home. This
limitation is imposed by the home’s builder, a small, family-owned construction company. What
kind of limitation is this? Private land use control
4. Real estate is a _______, unlike stocks or bonds. Tangible asset class
5. What is a major advantage of real estate investment over other types of investment? Ability to
leverage
6. Physical possibility, financial feasibility, maximum profitability, and ______ are all considerations
when determining highest and best use. Legal permissibility
7. Real estate investing may be done individually, in partnerships, or through what other means?
Corporations
Lesson 3 Exam Questions
Unit 1
First attempt
1. In regard to fixtures, what does the NC Uniform Commercial Code grant creditors? The right to
, repossess
2. Licensee Casey is working with her buyer client, Mel. Mel has fallen in love with a freestanding
marble statue in the seller’s home and wants to include it in the sale. Which of the following is
true of this situation? The statue is considered personal property, so Mel’s contract must specify
that she wants to include the statue in the sale (if the sellers agree).
3. Which entity regulates and enforces the construction methods of manufactured homes? HUD's
Manufactured Housing Program
4. Licensee Dionne pointed out to her buyer client the items in the house she was showing that
would be considered real property. What is one of the key determinants that show that something
is real property (also known as a fixture)? Permanently affixed on the property
5. Which of the following is a legal term that can mean the right to take products out of the soil?
Profit
6. When a building is built on vacant land, it’s called ______. An improvement
7. Examples of real property and fixtures include which of the following? Shelves attached to the
wall with brackets
8. Chattel is another word for _______. Personal property
9. What's the difference between reversionary interest and remainder interest in a property? With
reversionary interest, the property reverts to the owner after the death of the life tenant. With
remainder interest, the title to the property goes to a named third party following the death of the
life tenant.
10. Littoral rights grant the owners of seaside property the right to unrestricted access to water, but
they only own land to the _______. Median high-water mark
11. The most common type of estate granted is the______________. Free simple estate
12. A _______ is built off-site in pieces according to the state building code and is issued a state
inspection label with a barcode. Modular home
13. Riparian rights grant usage of water on a property owner’s land as long as _______. It doesn’t
adversely affect landowners both up- and downstream
14. IRMA helps identify the four tests of a fixture. The I stands for _______. Intention of the parties
placing the property
15. Which term means “for another’s life"? Pur autre vie
16. Crops that are removed from the ground are also called _______. Emblements
Second attempt
1. Property ownership gives the title holder a bundle of rights. What’s significant about the concept
of a bundle of rights? It describes the ability to separate one right from the others while leaving
the rest of the bundle intact.
2. Noah is a major barbecue freak. He loves cooking just about everything over flames. As a
birthday gift, his wife had a beautiful brick barbecue pit built on the edge of their patio. What is
this an example of? Annexation
3. Jonah wants to convert his manufactured home from personal to real property. Which of the
following actions must he take to as a step to accomplishing his goal? Remove the wheels, axel,
and tongue.
4. Which of the following involves permission to do something on another’s land without actually
possessing any interest or ownership in the land? license
5. Howard is an amateur horticulturist who has worked for years on his prized hybrid roses. When
he and his wife decided to move to a larger home, he made the listing agent add a provision in
the offer acceptance that would allow him to dig up and take the roses with him. What is this an
example of? Severance
6. Which act created federal regulations for the construction of manufactured homes? National
Manufactured Housing Construction and Safety Standards Act of 1976
, 7. Manufactured homes are generally considered _______? Personal property
8. Renea lived above an active coal mine when she noticed that her foundation was settling very
rapidly, and the ground around it was falling inward. She hired an engineer to look at the issue.
When the engineer concluded the mine below the house was causing the house to sink, Renea
filed suit against the mine. What right was Renea asserting? Her right to subjacent support
9. Which of these benefits the overall community by requiring owners to keep their property
maintained properly or by restricting the visibility or existence of specific items, even on an
individual’s own property? Restrictive covenants
10. When an owner of a life estate dies and the property is returned to the original owner, this is
known as a? Reversion
11. Which of the following refers to rights that come with the land? Appurtenance
12. Mr. Schroeder installed built-in bookcases that he intended to remain as part of the home forever.
This refers to which part of IRMA? Intent of the parties placing the item on the property
13. Kyle owns six acres of land with 400 feet of river frontage. He wants to build a beach along the
river bank to make it easier to swim in the river. He can do this because as the owner of river
frontage, he has ________ rights. Riparian
14. Joe and Martina own a 269-acre farm. Their property is landlocked, but they have permitted water
rights to use the stream located two miles away for irrigation purposes. What type of water rights
do they hold? Prior appropriation
15. Lowell used to own 17 acres of property on the bay. After last year’s hurricanes, Lowell now owns
15.5 acres of bayfront property. Which natural process was responsible for Lowell’s loss of
acreage? Avulsion
16. Property owner Craig likes to sunbathe in the nude in his nice, private backyard. What part of the
bundle of rights allows him to do this legally? Enjoyment
Third attempt
1. Steve’s house is built downhill from Kevin’s. Because it is difficult for his children to play in the
steeply sloped backyard, Steve wants to excavate his backyard to level it out. What right does
Kevin have in this situation? Lateral support
2. Max and Heather bought a cute beachside bungalow six years ago. Their estate has no specified
end date, and their heirs may inherit it. They have all the rights and privileges you can have in
land. This is an example of _______ estate. A fee simple
3. Agricultural fixtures, even if they are installed by a tenant, are _______. Real property
4. In real estate, what are emblements? Cultivated crops
5. Some plants are considered personal property. Which of the following type of plant is considered
personal property? Fruits of industry
6. The term _______ is used to describe units manufactured before 1976. Mobile home
7. Which of the following applies to personal property (also known as chattel)? It is usually
moveable and freestanding
8. Which of these is NOT a right included in a real property owner’s bundle of rights? Encroachment
9. Antonio’s aging mother needs a place to live out her last years. He conveys a home to her, but
only for the length of her lifetime. This is known as _______ estate. An ordinary life
10. _______ is the addition of something to real property. Annexation
11. Plants can be considered real or private property. It just depends on what type of plant they are.
Which of the following are considered real estate? Fruits of nature
12. To what type of estate does pur autre vie apply? Life estate
13. Which term means to change an item from real property to personal property by removing it from
the land? Severance
14. Property owners may keep, sell, or lease their rights. Those rights include which of the following?
Profit and license
, 15. Bart just toured his fourth patio home of the day. To help him remember what he saw in each one,
he’s making notes about décor, updates, and inclusions that will stay with the property. Which of
the following items is NOT considered personal property and would therefore stay with a home?
The chandelier in the foyer
16. Which of the following would be a description used for real property and a fixture? In-ground
Unit 2
First attempt
1. Tina has fee simple ownership of her timeshare unit. Which of these is NOT an example of the type
of ownership she may have? right-to-use
2. Vicky and Lee vacation in Cancun, Mexico every year. They purchased the right to stay in a beach
condo for the first two weeks in May, and their agreement continues for the next 10 years. They
don’t actually own the unit. What did they purchase? Timeshare use
3. Brothers Kevin and Michael buy a house together. They don’t specify how they’d like to hold title, so
their ownership defaults to _______. Tenancy in common
4. In a trust, the trustee is the person who ______. Makes sure the terms of the trust are carried out
5. Which of the following best describes condominium ownership? The space inside the unit itself
belongs to the unit owner, and all owners also share in the ownership of the common elements.
6. Marcia Weinstein died, and her property wasn't held in a trust. Thus, her estate will go through
______ to ensure her property is distributed to her beneficiaries in accordance with her will. Probate
7. In which form of co-ownership is a person's ownership inheritable? Tenancy in common
8. Which one of the following statements about testamentary trusts it true? Testamentary trusts do not
avoid probate
9. Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence.
They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? In
severalty
10. When Edmund died, he left several properties to his heirs. He owned a grocery store and a
campground outright, and a strip mall that was held in a living trust. Which of the properties, if any,
did NOT have to go through the probate process after his death? The strip mall
11. Leon and Beth own 1/13 of a timeshare estate. How many weeks each year do they get to use the
timeshare unit? Four
12. Sole ownership of real estate means title is held _______. In severalty
13. Sheila is unable to use her designated timeshare week this year. What will happen? She can
exchange the week for another
14. What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual
maintenance fee, and in return selecting an accommodation time and having the right to use the unit
for a specified number of years? Vacation
Second attempt
1. Which one of the following statements is true about land trusts?Land trusts generally continue for a
specified term, such as 10, 20, or 30 years.
2. Which of the following statements is true regarding timeshare estates? Timeshare estates can be
sold or passed down to heirs
3. Under a land trust, the owner directs a ______ to hold title to the real estate. Corporate fiduciary
4. There are many advantages to holding property within a trust. One of the most important
advantages is that some trusts ______. Avoid probate
5. Gladys and her husband, Ralph, owned their home as joint tenants. After Ralph died, Gladys owned
the home in severalty. When she dies, which of these will happen to her home? Her heirs, as
described in her will or according to state law, will receive the property.
6. Henry died, and his property wasn't held in a trust. Thus, his estate will go through probate to
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