This comprehensive examination bank contains 200 verified questions and answers
designed specifically for candidates preparing for the Nova Scotia Association of
REALTORS® (NSAR) Salesperson Licensing Exam. Developed in alignment with official
course objectives, this resource covers four critical domains: Real Estate Principles, Property
Law, and Ownership; Agency Relationships, Contracts, and Form 400; Nova Scotia
Legislation, Land Registration, and Trust Accounts; and Real Estate Ethics, Professional
Practice, and Market Practices. All questions are original, reflect current Nova Scotia
legislation and Nova Scotia Real Estate Commission regulations, and include detailed
rationales to reinforce learning and ensure exam readiness for professional licensing
candidates.
Candidates are advised to review all questions thoroughly and understand the rationales
provided.
DOMAIN: REAL ESTATE PRINCIPLES, PROPERTY LAW, AND OWNERSHIP
1. What is the highest and most complete form of ownership interest in land recognized
under Nova Scotia property law?
A. Life estate
B. Fee simple absolute
C. Leasehold estate
D. Easement
Correct Answer: B
Rationale: Fee simple absolute represents the most complete ownership interest, allowing
the holder to possess, use, and dispose of the property without limitation other than those
imposed by law.
2. Which form of co-ownership includes the right of survivorship, so that a deceased co-
owner's interest automatically passes to the remaining co-owners?
,A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety only
D. Community property
Correct Answer: B
Rationale: Joint tenancy includes the four unities and the right of survivorship; upon death
the interest vests in the surviving joint tenant(s) outside of the deceased's estate.
3. In a tenancy in common, how are the ownership interests of the co-owners
characterized?
A. They must be equal and undivided with right of survivorship
B. They may be unequal and each owner may freely transfer or will their share
C. They cannot be sold without unanimous consent
D. They automatically convert to joint tenancy after five years
Correct Answer: B
Rationale: Tenancy in common allows unequal shares and free alienation of each
undivided interest; there is no right of survivorship.
4. What is the primary distinction between a freehold estate and a leasehold estate?
A. Freehold estates are always for a fixed term
B. A freehold estate is of indefinite duration while a leasehold is for a fixed or
determinable period
C. Leasehold estates convey fee simple title
D. There is no legal distinction in Nova Scotia
Correct Answer: B
Rationale: Freehold estates (fee simple or life estate) have potentially infinite or life-
measured duration; leaseholds are limited by a fixed or periodic term.
5. An easement appurtenant benefits which party?
A. The dominant tenement
B. The servient tenement only
C. The general public
D. The municipality exclusively
Correct Answer: A
Rationale: An easement appurtenant runs with the land and benefits the dominant
tenement while burdening the servient tenement.
,6. What type of interest is created when a property owner grants another person the
right to use a defined portion of land for a specific purpose without transferring
ownership?
A. Fee simple
B. Easement
C. Mortgage
D. Life estate
Correct Answer: B
Rationale: An easement is a non-possessory interest that allows limited use of another's
land for a defined purpose.
7. Under the doctrine of fixtures, which factor is most influential in determining whether an
item has become part of the real property?
A. The monetary value of the item alone
B. The degree of annexation, adaptation to the property, and intention of the parties
C. Whether the item was purchased after the last sale
D. The colour of the item
Correct Answer: B
Rationale: Courts examine annexation, adaptation, and intention to decide whether a
chattel has become a fixture and therefore part of the realty.
8. What is a life estate?
A. An estate that lasts forever and can be inherited indefinitely
B. An estate measured by the life of a specified person, after which the property reverts
or passes to a remainderman
C. A periodic tenancy renewable yearly
D. A lease for 99 years
Correct Answer: B
Rationale: A life estate endures only for the lifetime of the measuring life and then
terminates according to the terms of the grant.
9. Which of the following is an example of an encumbrance on title?
A. A clear fee simple title with no claims
B. A registered mortgage or a restrictive covenant
C. An unrecorded oral agreement that has expired
D. A survey plan alone
Correct Answer: B
, Rationale: Encumbrances such as mortgages, liens, easements, and restrictive covenants
burden the title and may affect the owner's rights or marketability.
10. What does the term 'severance' refer to in the context of joint tenancy?
A. The physical division of a building
B. The act that converts a joint tenancy into a tenancy in common, destroying the right of
survivorship
C. The registration of a new plan of subdivision
D. The cancellation of a lease
Correct Answer: B
Rationale: Severance breaks one or more of the four unities, converting the joint tenancy
into a tenancy in common so that each share may be dealt with independently.
11. In Nova Scotia, what is the effect of a property owner dying intestate with respect to
real property?
A. The property automatically escheats to the Crown
B. The property is distributed according to the Intestate Succession Act among the heirs
C. The property remains frozen indefinitely
D. Only the spouse inherits all real property regardless of other relatives
Correct Answer: B
Rationale: Intestate real property is distributed under provincial succession legislation
among the entitled heirs after debts and administration expenses.
12. What is the purpose of a restrictive covenant registered against a property?
A. To increase the property tax assessment
B. To limit the use or development of the land for the benefit of other land or a defined
scheme
C. To grant unlimited development rights
D. To transfer ownership to the municipality
Correct Answer: B
Rationale: Restrictive covenants bind the land and restrict certain uses or activities,
typically for the benefit of neighbouring parcels or a subdivision scheme.
13. Which interest in land is considered personal property rather than real property?
A. Fee simple
B. A leasehold interest for a term of years
C. An easement appurtenant
D. A life estate
designed specifically for candidates preparing for the Nova Scotia Association of
REALTORS® (NSAR) Salesperson Licensing Exam. Developed in alignment with official
course objectives, this resource covers four critical domains: Real Estate Principles, Property
Law, and Ownership; Agency Relationships, Contracts, and Form 400; Nova Scotia
Legislation, Land Registration, and Trust Accounts; and Real Estate Ethics, Professional
Practice, and Market Practices. All questions are original, reflect current Nova Scotia
legislation and Nova Scotia Real Estate Commission regulations, and include detailed
rationales to reinforce learning and ensure exam readiness for professional licensing
candidates.
Candidates are advised to review all questions thoroughly and understand the rationales
provided.
DOMAIN: REAL ESTATE PRINCIPLES, PROPERTY LAW, AND OWNERSHIP
1. What is the highest and most complete form of ownership interest in land recognized
under Nova Scotia property law?
A. Life estate
B. Fee simple absolute
C. Leasehold estate
D. Easement
Correct Answer: B
Rationale: Fee simple absolute represents the most complete ownership interest, allowing
the holder to possess, use, and dispose of the property without limitation other than those
imposed by law.
2. Which form of co-ownership includes the right of survivorship, so that a deceased co-
owner's interest automatically passes to the remaining co-owners?
,A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety only
D. Community property
Correct Answer: B
Rationale: Joint tenancy includes the four unities and the right of survivorship; upon death
the interest vests in the surviving joint tenant(s) outside of the deceased's estate.
3. In a tenancy in common, how are the ownership interests of the co-owners
characterized?
A. They must be equal and undivided with right of survivorship
B. They may be unequal and each owner may freely transfer or will their share
C. They cannot be sold without unanimous consent
D. They automatically convert to joint tenancy after five years
Correct Answer: B
Rationale: Tenancy in common allows unequal shares and free alienation of each
undivided interest; there is no right of survivorship.
4. What is the primary distinction between a freehold estate and a leasehold estate?
A. Freehold estates are always for a fixed term
B. A freehold estate is of indefinite duration while a leasehold is for a fixed or
determinable period
C. Leasehold estates convey fee simple title
D. There is no legal distinction in Nova Scotia
Correct Answer: B
Rationale: Freehold estates (fee simple or life estate) have potentially infinite or life-
measured duration; leaseholds are limited by a fixed or periodic term.
5. An easement appurtenant benefits which party?
A. The dominant tenement
B. The servient tenement only
C. The general public
D. The municipality exclusively
Correct Answer: A
Rationale: An easement appurtenant runs with the land and benefits the dominant
tenement while burdening the servient tenement.
,6. What type of interest is created when a property owner grants another person the
right to use a defined portion of land for a specific purpose without transferring
ownership?
A. Fee simple
B. Easement
C. Mortgage
D. Life estate
Correct Answer: B
Rationale: An easement is a non-possessory interest that allows limited use of another's
land for a defined purpose.
7. Under the doctrine of fixtures, which factor is most influential in determining whether an
item has become part of the real property?
A. The monetary value of the item alone
B. The degree of annexation, adaptation to the property, and intention of the parties
C. Whether the item was purchased after the last sale
D. The colour of the item
Correct Answer: B
Rationale: Courts examine annexation, adaptation, and intention to decide whether a
chattel has become a fixture and therefore part of the realty.
8. What is a life estate?
A. An estate that lasts forever and can be inherited indefinitely
B. An estate measured by the life of a specified person, after which the property reverts
or passes to a remainderman
C. A periodic tenancy renewable yearly
D. A lease for 99 years
Correct Answer: B
Rationale: A life estate endures only for the lifetime of the measuring life and then
terminates according to the terms of the grant.
9. Which of the following is an example of an encumbrance on title?
A. A clear fee simple title with no claims
B. A registered mortgage or a restrictive covenant
C. An unrecorded oral agreement that has expired
D. A survey plan alone
Correct Answer: B
, Rationale: Encumbrances such as mortgages, liens, easements, and restrictive covenants
burden the title and may affect the owner's rights or marketability.
10. What does the term 'severance' refer to in the context of joint tenancy?
A. The physical division of a building
B. The act that converts a joint tenancy into a tenancy in common, destroying the right of
survivorship
C. The registration of a new plan of subdivision
D. The cancellation of a lease
Correct Answer: B
Rationale: Severance breaks one or more of the four unities, converting the joint tenancy
into a tenancy in common so that each share may be dealt with independently.
11. In Nova Scotia, what is the effect of a property owner dying intestate with respect to
real property?
A. The property automatically escheats to the Crown
B. The property is distributed according to the Intestate Succession Act among the heirs
C. The property remains frozen indefinitely
D. Only the spouse inherits all real property regardless of other relatives
Correct Answer: B
Rationale: Intestate real property is distributed under provincial succession legislation
among the entitled heirs after debts and administration expenses.
12. What is the purpose of a restrictive covenant registered against a property?
A. To increase the property tax assessment
B. To limit the use or development of the land for the benefit of other land or a defined
scheme
C. To grant unlimited development rights
D. To transfer ownership to the municipality
Correct Answer: B
Rationale: Restrictive covenants bind the land and restrict certain uses or activities,
typically for the benefit of neighbouring parcels or a subdivision scheme.
13. Which interest in land is considered personal property rather than real property?
A. Fee simple
B. A leasehold interest for a term of years
C. An easement appurtenant
D. A life estate
