Principles of real estate Exam Questions and Correct Answers Latest Update 2025 (Already Passed)
A hurricane will often shift large quantities of sandy soil from one end of a barrier island to the other.
Title to this additional land created by the natural forces of accretion is acquired by the owner through a
process called - Answers D. accession.
A grandmother left her home and 100 acres to her church to be used as a camp. In the event the church
attempts to sell or make some other use of the property, the estate would then go to the grandmother's
heirs. This is an example of a a - Answers C. fee simple determinable estate (defeasible qualified by
special limitation).
Three men are not able to agree on the management of their investment property. They may find it
necessary to terminate their joint tenancy through the court-ordered action of - Answers C. partition.
A man has planted strawberries in an empty field near HIS home for the past 15 years. In order for him
to make a legitimate claim of adverse possession, he will have to prove that his possession of the
property was - Answers B. uninterrupted.
A widow is willed property from her deceased husband for the rest of her life, specifying that upon her
death, the title passes to her children. This type of ownership is BEST described as a - Answers D. life
estate with a remainder interest.
A man died, leaving no will and no heirs. His property will be transferred to the state (or county) where
the property is located based on the operation of law called - Answers A. escheat.
A town condemns all property in four downtown blocks to build a new courthouse and social services
building. It is able to do this under the governmental power of - Answers A. eminent domain.
A woman bought a property in another state and never visited the land. A man moved his mobile home
onto land, had a water well drilled, and lived there for 22 years. This man may become the owner of the
land if he has compiled with the state law regarding - Answers D. adverse possession.
A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her
mother. If the daughter should die before the mother, who holds the property? - Answers B. Daughter's
estate
A person has full rights to use and occupy the property for a certain period (e.g. a specified number of
months or years), after which the person must return the property to its owner. This person holds a -
Answers B. leasehold estate.
An electric company is planning to bury electric lines across the backyards of 40 homes in a new
subdivision. They will need to apply for a(n) - Answers C. commercial easement in gross.
The owner of an old plantation plans to deed the property to the state for use as a state park. This gift is
an example of - Answers D. dedication.
,An example of a specific voluntary lien is - Answers A. bank mortgage lien.
A brother gave property to his sister for her lifetime, and at her death, the property is to be transferred
to their cousin. In this situation, the COUSIN'S interest in the property is - Answers C. remainder.
Your neighbors use your driveway to reach their garage on their property.
Your attorney explains that the ownership of the neighbors' real estate
includes an easement appurtenant giving them the right to use your driveway. Your property is the -
Answers C. servient tenement.
An owner of 50 acres of land with 500 feet of frontage on a desirable recreational lake wants to
subdivide the parcel into salable lots. The owner wants to retain control over the lake frontage while
allowing lot owners to have access to the lake. What provides access rights and offers the greatest
protection to prospective purchasers? - Answers C. An easement appurtenant
A construction company placed a new roof on a house four months ago. Because the owner of the
property has not paid for the job done, the company may need to place a - Answers A. mechanic's lien
on the property with a new roof.
A merchant builder-developer is one who: - Answers D. Builds with the intent to sell the finished
property
A landscaping company has not been paid for its work on a property. In order to give public notice of
intent to file a mechanics lien, the company must file a(n) - Answers D. lis pendens.
Terwilliger argues that the long-term fundamentals for real estate development in the US: - Answers A.
Provide significant opportunities due to population growth and movement within the country, the need
to replace obsolete or damaged properties, and changes in technologies affecting the built environment
A neighbor was letting another neighbor leave his camper on her property. She never charged any rent
for the use of her yard. This permission is called - Answers A. a license.
The beach has been gradually washing away so that they house that was 50 feet from the beach is now
only 10 feet away. This is a result of - Answers A. erosion
The interest of a husband in the real estate of his deceased wife is the - Answers A. curtesy right.
Kim Kardashian and Kris Humphries were married in 2011. Prior to marriage, Kris acquired some
property in Frederick County, VA. Now that the honeymoon is over, the couple is now divorcing. Kris
wants Kim to sign over whatever interest she may have in the Frederick County property. The
appropriate deed would be a: - Answers quitclaim deed.
A man has an easement appurtenant to cross over another's property in order to reach the public road.
This man is considered to have a(n) - Answers A. dominant tenement.
, An elderly woman passed away. She had no other living family members but did have a will. In this case,
her estate will - Answers C. pass to whoever is named in the will.
A will that is drawn in its maker's own handwriting and then signed by that person without witnesses is
known as a - Answers A. holographic will.
A town is levying charges to all homeowners along a street where the town is putting in curb and gutters
plus streetlights. The charges for these improvements, which will add to the value of the real estate, are
called - Answers D. special assessments.
A man has an easement appurtenant as a dominant tenement across a woman's property, which allows
him to have an extra-wide driveway big enough for him to store his boat. This easement may be
terminated if - Answers C. the man sells his boat and wants to terminate the easement.
Terwilliger's perspective of the potential financial rewards to careers in development is that: - Answers
A. Development can lead to significant wealth if a risk-adjusted return is properly evaluated and the
project is soundly financed
The owner of a vacant lot next to a hospital was persuaded to make a gift of the lot. She had her
attorney prepare a deed that conveyed the ownership of the lot to the hospital "so long as it is used for
medical purposes." After the completion of the gift, the hospital will own a - Answers D. fee simple
defeasible qualified by a special limitation (fee simple determinable).
A man owns 20 acres of farmland with a farmhouse, two barns, and numerous outbuildings that he will
leave to his son when he dies. The man has a - Answers A. freehold estate.
A portion of a building that was inadvertently built on another person's land is - Answers C.
encroachment.
A decedent left a will giving his neighbor the right to use a well on the decedent's land as long as the
neighbor was alive. The neighbor's interest in the property is properly called - Answers B. a license.
A money encumbrance that affects the title to property is called a(n) - Answers B. lien.
What information does the law presume that the pubic knows by recording documents in the public
record? - Answers A. Constructive notice
Which of the following is a public (governmental) limitation on private ownership?
A. Deed restriction
B. Eminent domain
C. Covenants, conditions, and restrictions (CC&Rs)
D. Encroachment - Answers B. Eminent domain
A hurricane will often shift large quantities of sandy soil from one end of a barrier island to the other.
Title to this additional land created by the natural forces of accretion is acquired by the owner through a
process called - Answers D. accession.
A grandmother left her home and 100 acres to her church to be used as a camp. In the event the church
attempts to sell or make some other use of the property, the estate would then go to the grandmother's
heirs. This is an example of a a - Answers C. fee simple determinable estate (defeasible qualified by
special limitation).
Three men are not able to agree on the management of their investment property. They may find it
necessary to terminate their joint tenancy through the court-ordered action of - Answers C. partition.
A man has planted strawberries in an empty field near HIS home for the past 15 years. In order for him
to make a legitimate claim of adverse possession, he will have to prove that his possession of the
property was - Answers B. uninterrupted.
A widow is willed property from her deceased husband for the rest of her life, specifying that upon her
death, the title passes to her children. This type of ownership is BEST described as a - Answers D. life
estate with a remainder interest.
A man died, leaving no will and no heirs. His property will be transferred to the state (or county) where
the property is located based on the operation of law called - Answers A. escheat.
A town condemns all property in four downtown blocks to build a new courthouse and social services
building. It is able to do this under the governmental power of - Answers A. eminent domain.
A woman bought a property in another state and never visited the land. A man moved his mobile home
onto land, had a water well drilled, and lived there for 22 years. This man may become the owner of the
land if he has compiled with the state law regarding - Answers D. adverse possession.
A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her
mother. If the daughter should die before the mother, who holds the property? - Answers B. Daughter's
estate
A person has full rights to use and occupy the property for a certain period (e.g. a specified number of
months or years), after which the person must return the property to its owner. This person holds a -
Answers B. leasehold estate.
An electric company is planning to bury electric lines across the backyards of 40 homes in a new
subdivision. They will need to apply for a(n) - Answers C. commercial easement in gross.
The owner of an old plantation plans to deed the property to the state for use as a state park. This gift is
an example of - Answers D. dedication.
,An example of a specific voluntary lien is - Answers A. bank mortgage lien.
A brother gave property to his sister for her lifetime, and at her death, the property is to be transferred
to their cousin. In this situation, the COUSIN'S interest in the property is - Answers C. remainder.
Your neighbors use your driveway to reach their garage on their property.
Your attorney explains that the ownership of the neighbors' real estate
includes an easement appurtenant giving them the right to use your driveway. Your property is the -
Answers C. servient tenement.
An owner of 50 acres of land with 500 feet of frontage on a desirable recreational lake wants to
subdivide the parcel into salable lots. The owner wants to retain control over the lake frontage while
allowing lot owners to have access to the lake. What provides access rights and offers the greatest
protection to prospective purchasers? - Answers C. An easement appurtenant
A construction company placed a new roof on a house four months ago. Because the owner of the
property has not paid for the job done, the company may need to place a - Answers A. mechanic's lien
on the property with a new roof.
A merchant builder-developer is one who: - Answers D. Builds with the intent to sell the finished
property
A landscaping company has not been paid for its work on a property. In order to give public notice of
intent to file a mechanics lien, the company must file a(n) - Answers D. lis pendens.
Terwilliger argues that the long-term fundamentals for real estate development in the US: - Answers A.
Provide significant opportunities due to population growth and movement within the country, the need
to replace obsolete or damaged properties, and changes in technologies affecting the built environment
A neighbor was letting another neighbor leave his camper on her property. She never charged any rent
for the use of her yard. This permission is called - Answers A. a license.
The beach has been gradually washing away so that they house that was 50 feet from the beach is now
only 10 feet away. This is a result of - Answers A. erosion
The interest of a husband in the real estate of his deceased wife is the - Answers A. curtesy right.
Kim Kardashian and Kris Humphries were married in 2011. Prior to marriage, Kris acquired some
property in Frederick County, VA. Now that the honeymoon is over, the couple is now divorcing. Kris
wants Kim to sign over whatever interest she may have in the Frederick County property. The
appropriate deed would be a: - Answers quitclaim deed.
A man has an easement appurtenant to cross over another's property in order to reach the public road.
This man is considered to have a(n) - Answers A. dominant tenement.
, An elderly woman passed away. She had no other living family members but did have a will. In this case,
her estate will - Answers C. pass to whoever is named in the will.
A will that is drawn in its maker's own handwriting and then signed by that person without witnesses is
known as a - Answers A. holographic will.
A town is levying charges to all homeowners along a street where the town is putting in curb and gutters
plus streetlights. The charges for these improvements, which will add to the value of the real estate, are
called - Answers D. special assessments.
A man has an easement appurtenant as a dominant tenement across a woman's property, which allows
him to have an extra-wide driveway big enough for him to store his boat. This easement may be
terminated if - Answers C. the man sells his boat and wants to terminate the easement.
Terwilliger's perspective of the potential financial rewards to careers in development is that: - Answers
A. Development can lead to significant wealth if a risk-adjusted return is properly evaluated and the
project is soundly financed
The owner of a vacant lot next to a hospital was persuaded to make a gift of the lot. She had her
attorney prepare a deed that conveyed the ownership of the lot to the hospital "so long as it is used for
medical purposes." After the completion of the gift, the hospital will own a - Answers D. fee simple
defeasible qualified by a special limitation (fee simple determinable).
A man owns 20 acres of farmland with a farmhouse, two barns, and numerous outbuildings that he will
leave to his son when he dies. The man has a - Answers A. freehold estate.
A portion of a building that was inadvertently built on another person's land is - Answers C.
encroachment.
A decedent left a will giving his neighbor the right to use a well on the decedent's land as long as the
neighbor was alive. The neighbor's interest in the property is properly called - Answers B. a license.
A money encumbrance that affects the title to property is called a(n) - Answers B. lien.
What information does the law presume that the pubic knows by recording documents in the public
record? - Answers A. Constructive notice
Which of the following is a public (governmental) limitation on private ownership?
A. Deed restriction
B. Eminent domain
C. Covenants, conditions, and restrictions (CC&Rs)
D. Encroachment - Answers B. Eminent domain
