FIN 455 CHAPTER 1 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
1) Real estate refers to the physical land and improvements constructed on the land. T/F - Answers
True
2) Real property refers to the ownership rights associated with real estate. T/F - Answers True
3) A quitclaim deed says that the grantor "quits" whatever claim he has in the property in favor of the
grantee. T/F - Answers True
4) It is illegal to give a quitclaim deed if the grantor has no claim in the property. T/F - Answers False
5) The term real estate refers to the ownership rights associated with the physical land and
improvements. T/F - Answers False
6) A fee simple estate is a type of freehold estate. T/F - Answers True
7) As compared to other types of deeds, a general warranty deed provides the most comprehensive
warranties about the quality of the title to the property. T/F - Answers True
8) After a house is purchased, contractors cannot ask the new owner of the house to pay any bills that
were outstanding before the house was sold. T/F - Answers False
9) A reciprocal easement agreement allows two or more parties to access each other's property. T/F -
Answers True
10) A lien waiver provides certification that contractor's on newly constructed properties have been
compensated. T/F - Answers True
11) A lessee is a person who holds the title to a piece of property. T/F - Answers False
12) The grantee typically conveys title to the grantor by means of a deed. T/F - Answers False
13) If a lender is to repossess or bring about the sale of a property if the borrower defaults on the
mortgage loan, the lender is said to have a ________ in the real estate.
A) Freehold interest
B) Lease interest
C) Secured interest
D) Quitclaim - Answers Lease Interest
14) A(n) ________ estate represents the most complete form of ownership of real estate; the owner
is free to divide it up into lesser estates and sell, lease, or borrow against them as he or she wishes.
A) Fee simple
B) Freehold
C) Leasehold
D) Life - Answers Fee Simple
15) Mr. Smith has allowed Mrs. Jones to run a sewer line through Mr. Smith's backyard so that Mrs.
Jones has access to the city sewer system. This is an example of a(n):
A) Easement
B) Encumbrance
C) Estate for years
D) Title assurance - Answers Easement
16) Which type of deed offers the grantee the MOST protection?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Officer's deed - Answers General warranty deed
17) What term BEST describes a person that owns a property and is conveying title to the property to
another person?
A) Mortgagor
B) Grantor
C) Mortgagee
D) Grantee - Answers Grantor
18) What type of estate lasts for an indefinite period of time?
A) Freehold estate
B) Estate from year-to-year
C) Leasehold estate
D) Estate for years - Answers Freehold Estate
19) Which of the following is NOT a good method of title assurance?
A) Seller provides a warranty in the deed
1) Real estate refers to the physical land and improvements constructed on the land. T/F - Answers
True
2) Real property refers to the ownership rights associated with real estate. T/F - Answers True
3) A quitclaim deed says that the grantor "quits" whatever claim he has in the property in favor of the
grantee. T/F - Answers True
4) It is illegal to give a quitclaim deed if the grantor has no claim in the property. T/F - Answers False
5) The term real estate refers to the ownership rights associated with the physical land and
improvements. T/F - Answers False
6) A fee simple estate is a type of freehold estate. T/F - Answers True
7) As compared to other types of deeds, a general warranty deed provides the most comprehensive
warranties about the quality of the title to the property. T/F - Answers True
8) After a house is purchased, contractors cannot ask the new owner of the house to pay any bills that
were outstanding before the house was sold. T/F - Answers False
9) A reciprocal easement agreement allows two or more parties to access each other's property. T/F -
Answers True
10) A lien waiver provides certification that contractor's on newly constructed properties have been
compensated. T/F - Answers True
11) A lessee is a person who holds the title to a piece of property. T/F - Answers False
12) The grantee typically conveys title to the grantor by means of a deed. T/F - Answers False
13) If a lender is to repossess or bring about the sale of a property if the borrower defaults on the
mortgage loan, the lender is said to have a ________ in the real estate.
A) Freehold interest
B) Lease interest
C) Secured interest
D) Quitclaim - Answers Lease Interest
14) A(n) ________ estate represents the most complete form of ownership of real estate; the owner
is free to divide it up into lesser estates and sell, lease, or borrow against them as he or she wishes.
A) Fee simple
B) Freehold
C) Leasehold
D) Life - Answers Fee Simple
15) Mr. Smith has allowed Mrs. Jones to run a sewer line through Mr. Smith's backyard so that Mrs.
Jones has access to the city sewer system. This is an example of a(n):
A) Easement
B) Encumbrance
C) Estate for years
D) Title assurance - Answers Easement
16) Which type of deed offers the grantee the MOST protection?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Officer's deed - Answers General warranty deed
17) What term BEST describes a person that owns a property and is conveying title to the property to
another person?
A) Mortgagor
B) Grantor
C) Mortgagee
D) Grantee - Answers Grantor
18) What type of estate lasts for an indefinite period of time?
A) Freehold estate
B) Estate from year-to-year
C) Leasehold estate
D) Estate for years - Answers Freehold Estate
19) Which of the following is NOT a good method of title assurance?
A) Seller provides a warranty in the deed
