Questions with Answers & Detailed Rationales, National Real Estate
Principles, Property Ownership, Agency, Contracts, Financing,
Valuation, Pennsylvania License Law & State Regulations
SECTION 1: PROPERTY OWNERSHIP AND LAND USE (Questions 1–30)
Question 1
Which of the following best describes a fee simple determinable estate?
A. An estate that automatically terminates upon the occurrence of a specified event
B. An estate that lasts for the lifetime of a designated individual
C. An estate that can be terminated only by the owner's voluntary act
D. An estate that continues indefinitely but may be divested by a condition subsequent
Correct Answer: A
Explanation: Fee simple determinable automatically ends when a stated condition occurs,
and the property reverts to the grantor without legal action. Exam Tip: Distinguish this from
fee simple subject to condition subsequent, which requires the grantor to exercise the right
of re-entry.
Question 2
A property owner grants a neighbor the right to cross her land to reach a public road. The
neighbor's right is best described as:
A. A lien
,B. An easement appurtenant
C. A license
D. A profit
Correct Answer: B
Explanation: An easement appurtenant benefits the dominant tenement and burdens the
servient tenement; it runs with the land. Exam Tip: Easements appurtenant attach to the
land, while licenses are personal and revocable.
Question 3
A deed conveys property "to A for life, then to B." What type of estate does B hold?
A. Fee simple absolute
B. Life estate
C. Remainder interest
D. Reversionary interest
Correct Answer: C
Explanation: B holds a remainder interest that becomes possessory upon A's death; the
grantor retains no reversion. Exam Tip: Remainders are future interests created in a third
party, while reversions return to the grantor.
Question 4
Which of the following is an example of a governmental police power restriction on real
property?
,A. A deed restriction limiting property to residential use
B. A zoning ordinance limiting building height
C. A mortgage lien on the property
D. An easement granted to a utility company
Correct Answer: B
Explanation: Zoning ordinances are enacted under the government's police power to protect
public health, safety, and welfare. Exam Tip: Deed restrictions are private, not governmental,
controls.
Question 5
A buyer purchases a home in a subdivision that prohibits fences over four feet tall. This
restriction is an example of:
A. A zoning ordinance
B. A restrictive covenant
C. An eminent domain taking
D. A police power regulation
Correct Answer: B
Explanation: Restrictive covenants are private agreements recorded against the land that
limit property use. Exam Tip: Covenants are enforced by neighbors or a homeowners
association, not by the government.
Question 6
, Which method of legal description identifies a property by reference to a recorded map
showing lot and block numbers?
A. Metes and bounds
B. Government survey system
C. Lot and block system
D. Monument system
Correct Answer: C
Explanation: The lot and block system (recorded plat system) uses subdivision maps to
identify parcels by lot, block, and subdivision name. Exam Tip: Metes and bounds uses
compass directions and distances; the government survey system uses townships, ranges,
and sections.
Question 7
A property owner dies without a will, leaving no heirs. The state takes ownership of the
property through:
A. Eminent domain
B. Escheat
C. Adverse possession
D. Condemnation
Correct Answer: B