Pass Real Estate Exam: National Questions
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Graded Answers Latest Updated 2026
Real estate the surface and subsurface of the earth, plus the air above it extending
into space.
Plus, all permanently attached improvements (buildings, fences,
underground structures or utilities, plantings, etc.).
Real property all the legal rights, powers, and privileges of real estate ownership. The
rights of ownership are often referred to as the bundle of rights.
Bundle of Rights The right of possession (to occupy the property and to hold title to it)
The right of disposition (to sell, transfer, encumber, or dispose of the
property)
The right of control (to control how the property is used)
The right of enjoyment (to use the property in any legal manner)
The right of exclusion (to prohibit others from entering the property)
Personal Property Everything that is not real property. Movable rather than being
permanently attached to real estate. Also known as CHATTEL.
Examples of Personal Property Fixtures, Trade Fixtures, and Emblements
Fixture Has been permanently attached to the land or improvements
and becomes part of the real property. Ex: plumbing, heating
systems, cabinetry, carpets, built-in shelving
Emblements Crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property. The tenant or seller
with rights to harvest the crop retains that right if the property is sold
with a crop already planted.
Trade fixtures items of personal property that a business operator installs as part of
the business operations
M.A.R.I.A Method of Attachment: how permanently is the item attached, and
would removal cause damage?
Adaptability: how does the item fit in the space, and has it been
adapted for the specific space?
Relationship: the landlord/tenant or seller/buyer relationship may affect
the way a court classifies an item
Intention: was the intention always to remove the item or leave it?
Agreement: did the parties have an agreement to treat a particular item
as real property or personal property?
, Economic Characteristics of Real Property scarcity, improvements, permanence of investment, area preference
Physical Characteristics of Land Immobility, Indestructibility, Uniqueness
Legal Description accurately and specifically describes where the property is located and
the size of the lot. It must be used to describe the real estate that's
being sold to ensure the correct property, and only that property, is
included in the sale.
Metes and Bounds This form of legal description identifies boundaries of the property from
one point to the next, giving direction and distance in between the
points. Each point is marked with a monument, which is a natural or
man-made marker. The description always starts and finishes at the
same point.
Lot and Block The lot and block legal description uses reference numbers from a
specific municipality map (also called a plat map). For example, a
subdivision has been divided into parcels (lots) that each exist within a
larger block. This form of legal description is the easiest and most
commonly used.
Government survey or Rectangular survey This is a form of legal description used in most central and western
states. It uses a system of horizontal and vertical lines that divide the
land into squares called townships. The north-south lines are called
range lines. The east-west lines are called township lines. Each township
is 36 square miles. Each square mile is called a section. Property is
identified by its location within a township and section.
Survey A survey is prepared by a licensed surveyor. It includes the legal
description of the property and a map which shows the exact
dimensions of the property and any improvements located on the
property, including easements, buildings, driveways, fences, etc.
Public Controls - governmental powers (P.E.T.E) Police power, Eminent Domain, Taxation and Escheat
Eminent Domain The government's right to acquire private property when deemed
necessary for the good of the public.
Condemnation The administrative process by which the government exercises its
power of eminent domain. The governmental body must decide
which
properties need to be taken before notifying the property owners that
their property is condemned. The property owners may negotiate how
much they will receive as compensation.
Inverse Condemnation Occurs when a property owner believes the use of his or her property
has been destroyed by a government action or regulation, even if the
government hasn't officially taken the property.
Police Power the right of public entities to establish regulations regarding the use of
the land. Zoning and building departments are examples of police
power.
Escheat The government's right to acquire title to real estate when the deceased
party has no will and no heirs can be located. (Dying Intestate)
Taxation The government's right to impose property taxes.
Verified and Provided with Complete A+
Graded Answers Latest Updated 2026
Real estate the surface and subsurface of the earth, plus the air above it extending
into space.
Plus, all permanently attached improvements (buildings, fences,
underground structures or utilities, plantings, etc.).
Real property all the legal rights, powers, and privileges of real estate ownership. The
rights of ownership are often referred to as the bundle of rights.
Bundle of Rights The right of possession (to occupy the property and to hold title to it)
The right of disposition (to sell, transfer, encumber, or dispose of the
property)
The right of control (to control how the property is used)
The right of enjoyment (to use the property in any legal manner)
The right of exclusion (to prohibit others from entering the property)
Personal Property Everything that is not real property. Movable rather than being
permanently attached to real estate. Also known as CHATTEL.
Examples of Personal Property Fixtures, Trade Fixtures, and Emblements
Fixture Has been permanently attached to the land or improvements
and becomes part of the real property. Ex: plumbing, heating
systems, cabinetry, carpets, built-in shelving
Emblements Crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property. The tenant or seller
with rights to harvest the crop retains that right if the property is sold
with a crop already planted.
Trade fixtures items of personal property that a business operator installs as part of
the business operations
M.A.R.I.A Method of Attachment: how permanently is the item attached, and
would removal cause damage?
Adaptability: how does the item fit in the space, and has it been
adapted for the specific space?
Relationship: the landlord/tenant or seller/buyer relationship may affect
the way a court classifies an item
Intention: was the intention always to remove the item or leave it?
Agreement: did the parties have an agreement to treat a particular item
as real property or personal property?
, Economic Characteristics of Real Property scarcity, improvements, permanence of investment, area preference
Physical Characteristics of Land Immobility, Indestructibility, Uniqueness
Legal Description accurately and specifically describes where the property is located and
the size of the lot. It must be used to describe the real estate that's
being sold to ensure the correct property, and only that property, is
included in the sale.
Metes and Bounds This form of legal description identifies boundaries of the property from
one point to the next, giving direction and distance in between the
points. Each point is marked with a monument, which is a natural or
man-made marker. The description always starts and finishes at the
same point.
Lot and Block The lot and block legal description uses reference numbers from a
specific municipality map (also called a plat map). For example, a
subdivision has been divided into parcels (lots) that each exist within a
larger block. This form of legal description is the easiest and most
commonly used.
Government survey or Rectangular survey This is a form of legal description used in most central and western
states. It uses a system of horizontal and vertical lines that divide the
land into squares called townships. The north-south lines are called
range lines. The east-west lines are called township lines. Each township
is 36 square miles. Each square mile is called a section. Property is
identified by its location within a township and section.
Survey A survey is prepared by a licensed surveyor. It includes the legal
description of the property and a map which shows the exact
dimensions of the property and any improvements located on the
property, including easements, buildings, driveways, fences, etc.
Public Controls - governmental powers (P.E.T.E) Police power, Eminent Domain, Taxation and Escheat
Eminent Domain The government's right to acquire private property when deemed
necessary for the good of the public.
Condemnation The administrative process by which the government exercises its
power of eminent domain. The governmental body must decide
which
properties need to be taken before notifying the property owners that
their property is condemned. The property owners may negotiate how
much they will receive as compensation.
Inverse Condemnation Occurs when a property owner believes the use of his or her property
has been destroyed by a government action or regulation, even if the
government hasn't officially taken the property.
Police Power the right of public entities to establish regulations regarding the use of
the land. Zoning and building departments are examples of police
power.
Escheat The government's right to acquire title to real estate when the deceased
party has no will and no heirs can be located. (Dying Intestate)
Taxation The government's right to impose property taxes.
