Association of REALTORS® Actual Exam 2026/2027 |
Complete Exam-Style Questions with Detailed Rationales |
Graded A+ Verified – Pass Guaranteed
Real Estate Fundamentals & Property Law
Q1: A client is purchasing a property and wants to know the highest form of ownership
interest they can acquire, which offers the most complete bundle of rights indefinitely.
What is this interest called?
A. Life estate
B. Leasehold estate
C. Fee simple absolute [CORRECT]
D. Tenancy in common
Correct Answer: C
Rationale: The best answer is fee simple absolute, as it represents the highest and most
complete form of property ownership, granting the owner the full bundle of rights without
time limitations.
Q2: A homeowner sells a parcel of land that is landlocked, with no road access. The buyer is
granted the right to cross the seller’s remaining adjacent land to reach the public road.
What type of interest has been created?
A. License
B. Easement appurtenant [CORRECT]
C. Encroachment
D. Covenant
Correct Answer: B
Rationale: This choice is correct because an easement appurtenant attaches to the land and
benefits the dominant estate (the landlocked parcel) by granting necessary access across
the servient estate.
Q3: A fence built by a neighbor extends three feet onto your client’s newly purchased
property. How is this situation legally classified?
A. An easement by prescription
B. A restrictive covenant
C. An encroachment [CORRECT]
D. A trade fixture
Correct Answer: C
Rationale: This choice is correct because an encroachment occurs when a structure or
improvement unlawfully extends onto an adjacent property, violating the owner's exclusive
right to possession.
,Q4: A commercial tenant installs specialized shelving units bolted to the walls of a retail
space for their business. Upon lease expiration, what is the legal status of these shelving
units?
A. They become the property of the landlord automatically.
B. They are considered trade fixtures and can be removed by the tenant, provided no
substantial damage is left behind. [CORRECT]
C. They are classified as real property and must remain with the building.
D. They are considered personal property that the landlord must purchase at market value.
Correct Answer: B
Rationale: This choice is correct because trade fixtures are personal property installed by a
tenant for business purposes, and the tenant retains the right to remove them before the
lease ends.
Q5: Two siblings purchase a property together with the right of survivorship. If one sibling
passes away, what happens to their ownership share?
A. It passes to the deceased sibling’s heirs through their will.
B. It escheats to the provincial government.
C. It automatically transfers to the surviving sibling, avoiding probate. [CORRECT]
D. It is sold at auction to settle any outstanding debts of the deceased.
Correct Answer: C
Rationale: This choice is correct because joint tenancy includes the right of survivorship,
meaning the surviving owner automatically inherits the deceased owner’s share outside of
the probate process.
Q6: When describing a property in Nova Scotia, what is the primary identifier used in the
Land Registration system to uniquely identify a specific parcel of land?
A. The municipal civic address
B. The Property Identification Number (PID) [CORRECT]
C. The previous owner’s name
D. The assessed value from the previous year
Correct Answer: B
Rationale: This choice is correct because the PID is the unique, permanent numerical
identifier assigned to every parcel of land in Nova Scotia’s Land Registration system,
ensuring precise legal description.
Q7: A property owner grants their elderly parent the right to live in the home for the
duration of the parent’s life, after which the property will go to the owner’s child. What
interest does the child hold?
A. Life estate
B. Remainder interest [CORRECT]
C. Reversionary interest
D. Leasehold interest
Correct Answer: B
Rationale: This choice is correct because a remainder interest is the right to possess the
property after the termination of a preceding estate, such as a life estate.
, Q8: A buyer discovers a "lis pendens" registered against the title of a home they wish to
purchase. What does this indicate?
A. The property has an unpaid municipal tax lien.
B. There is an active lawsuit or legal claim affecting the title of the property. [CORRECT]
C. The property is zoned for future commercial development.
D. The seller has already signed an agreement of purchase and sale with another buyer.
Correct Answer: B
Rationale: This choice is correct because a lis pendens is a formal notice that a lawsuit has
been filed concerning the property, warning potential buyers that the title is currently in
dispute.
Q9: Which of the following is a requirement for a restrictive covenant to "run with the land"
and bind future owners?
A. It must be renewed every five years by the municipal council.
B. It must be in writing, touch and concern the land, and the parties must have intended for
it to run with the land. [CORRECT]
C. It must be financially compensated by the benefiting party.
D. It must be approved by the Nova Scotia Real Estate Commission.
Correct Answer: B
Rationale: This choice is correct because for a covenant to run with the land, it must meet
specific legal criteria, including being in writing, affecting the use or value of the land, and
showing clear intent to bind successors.
Q10: A joint tenant wishes to sever their interest in a property and convert their ownership
to a tenancy in common. Which action will legally achieve this?
A. Verbally informing the other joint tenant of their decision.
B. Transferring their interest to a third party, even a nominal one, to break the unity of title.
[CORRECT]
C. Changing the locks on the property without the other owner’s consent.
D. Filing a complaint with the local municipality.
Correct Answer: B
Rationale: This choice is correct because severing a joint tenancy requires destroying one of
the four unities (typically title), which is legally accomplished by transferring the interest to
another party.
Q11: What does the term "air rights" refer to in real estate law?
A. The right to install a satellite dish on a neighbor’s roof.
B. The right to use and control the space above the surface of the land, within reasonable
limits. [CORRECT]
C. The right to ventilate a commercial building into a public park.
D. The right to prevent airplanes from flying over the property at any altitude.
Correct Answer: B
Rationale: This choice is correct because air rights are part of the bundle of rights in real
property, allowing the owner to use the space above their land, subject to aviation laws and
zoning.