, Principles of Real Estate 1 EXAM REVIEW
QUESTIONS AND ANSWERS 100%
CORRECT AND UPDATED!
Which of the following is an example of a limited common element? - ANSWER Parking
Space
A married couple buys a home for $400,000. Five years later, they sell it for $550,000.
How much of their sale is taxable capital gain? - ANSWER $0.
They get a $500,000 capital gains tax exclusion, and they made $150,000 in profit, so
all of their profit is excluded from taxation.
Arthur, Beatrice, Candace, Dmitri, and Evenlyn bought a property does each of them
own? - ANSWER 20%.
They share the unity of interest, they each own an equal share 1/5 or 20 percent.
The following are all common types of unilateral contracts, EXCEPT - ANSWER
Purchase Agreements
Reward offers, contests, and commissions are common types of unilateral contracts
that you are likely to encounter.
An owner lives in a single family dwelling but only owns the building. The homeowners
association owns and maintains the grounds, the pool, and the exercise room. All of the
owners in the area share the common areas. What does the owner live in? - ANSWER
A condominium
Which of the following is NOT a unique characteristic of land that also sets it apart from
personal property? - ANSWER Malleability
One way land is special and separate from personal property is that it has three unique
physical characteristics, inmobility, indestructibility and non homogeneity.
According to what legal concept do contracts involving the sale or transfer of real estate
need to be in writing? - ANSWER Statute of Frauds
QUESTIONS AND ANSWERS 100%
CORRECT AND UPDATED!
Which of the following is an example of a limited common element? - ANSWER Parking
Space
A married couple buys a home for $400,000. Five years later, they sell it for $550,000.
How much of their sale is taxable capital gain? - ANSWER $0.
They get a $500,000 capital gains tax exclusion, and they made $150,000 in profit, so
all of their profit is excluded from taxation.
Arthur, Beatrice, Candace, Dmitri, and Evenlyn bought a property does each of them
own? - ANSWER 20%.
They share the unity of interest, they each own an equal share 1/5 or 20 percent.
The following are all common types of unilateral contracts, EXCEPT - ANSWER
Purchase Agreements
Reward offers, contests, and commissions are common types of unilateral contracts
that you are likely to encounter.
An owner lives in a single family dwelling but only owns the building. The homeowners
association owns and maintains the grounds, the pool, and the exercise room. All of the
owners in the area share the common areas. What does the owner live in? - ANSWER
A condominium
Which of the following is NOT a unique characteristic of land that also sets it apart from
personal property? - ANSWER Malleability
One way land is special and separate from personal property is that it has three unique
physical characteristics, inmobility, indestructibility and non homogeneity.
According to what legal concept do contracts involving the sale or transfer of real estate
need to be in writing? - ANSWER Statute of Frauds
