PEARSON VUE EXAM QUESTIONS

PEARSON VUE EXAM QUESTIONS "Which of the following rights is considered personal property? - CORRECT ANSWER Tenant Rights Tenants rights are chattels real (other rights are real property)" "Owning property as tenants in common permits each owner to - CORRECT ANSWER own unequal shares - Tenant-in-common interests need not be equal" "What is a partition action? - CORRECT ANSWER A court proceeding to break up a co-ownership -An action to divide the land of a tenancy in common or joint tenancy when the owners cannot agree. The court could physically divide the property (if feasible) or order a sale." "The lot and block reference in a legal description relates to - CORRECT ANSWER a recorded subdivision map -the legal description references the recorded map" "What would result from a condition in a deed? a. fee simple b. defeasible fee c. chattels real. d. nonfreehold estate - CORRECT ANSWER B. Defeasible Fee Fee simple determinable is a defeasible estate that could be lost lost upon the happening of a specified condition. If a deed specifies that a grant shall be only "for as long as"; or while a property is in a particular use, the length of the estate is really determined by the deed" "J installed central air-conditioning in his home. the compressor unit, which was located outside the home, would be regarded as what? - CORRECT ANSWER Real property" "an investor's personal assets could be subject to a creditor's claim in a... - CORRECT ANSWER General Partnership An active partner and has unlimited personal liability for the debts of the partnership. One general partner can personally obligate the other general partners (Part of Tenancy in Partnership)" "How does an S corporation differ from other corporations? - CORRECT ANSWER Its investors have no personal liability" "L owned an undivided half interest in a property. L now owns the entire property in severalty, although she did not buy or inherit the other one-half interest. L originally owned her undivided one- half interest as a - CORRECT ANSWER joint tenant Upon the death of the other joint tenant, the other half became Ls property" "A father wished to deed property to his son and daughter-in-law on a two-thirds and one-third basis. To do so, title would be - CORRECT ANSWER as tenants in common A is one owner only, and B and C require equal ownership" "If a boundary is a private road, the boundary line would be - CORRECT ANSWER the center of the road similarly, the boundary is a nonnavigable river, the boundary line is the center of the river" "Areas of land enclosed by standard parallels and guide meridians are known as - CORRECT ANSWER Government checks (or quadrangles)" "A tenant in a commercial building installed a large sign that was anchored to the building with steel rods. Which term properly describes the sign? A.Fixture B. Trade fixture C. Real Property D. Emblement - CORRECT ANSWER B. Trade Fixture Installed by a tenant for the purpose of conducting a business or trade. A tenant can remove a trade fixture but is liable for removal damage to real property ." "What type of real property description would include reference to an iron stake? - CORRECT ANSWER Metes and bounds (aka measurements and directions) Shows the boundaries of parcel by measuring from point to point. The measuring points in a metes-and-bounds description are known as monuments. Two types of monuments: -natural monuments: tress, rocks, rivers -artificial monuments: iron stakes, fences, roads" "Rights, benefits, and improvements that go with the land are known as - CORRECT ANSWER Appurtenances" "which would be classified as real property? A. Trade Fixtures B. Chattels Real C. Water rights D. Mortgages - CORRECT ANSWER C. Water Rights" "What are three of the tests of a fixture? - CORRECT ANSWER 1. Adaptability: Legal rather than a physical attachment. If an item is reasonably necessary for the normal use of the property, it probably is a fixture, even though it is not attached 2. Intent: Intent is considered the most important test of a fixture when there isn't an agreement. Did the parties intend that property would become part of the real estate? Can be hard to prove intent. 3. Attachment: Can the item be removed w/o causing major damage to the real property? Is the method of attachment of a permanent nature? 4. Agreement: A written agreement of the parties as to whether an item is a fixture and shall remain with the real estate or shall be regarded as personal property will govern the character of the property between the parties." "All of the ownership rights that transfer with a fee simple estate are known as - CORRECT ANSWER bundle of rights" "Items that were formerly personal property but are now regarded as real property would be described as - CORRECT ANSWER Fixtures" "An example of a real property security would be A.Condominiums sold with a mandatory rental pool arrangement B. General partnership shares in investment property C. a Pur Autre Vie Estate D. A vested remainder interest - CORRECT ANSWER A. Condos sold with a mandatory rental pool arrangement Real property security: Investors are inactive participants, such as limited partnerships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another." "What are real property securities? - CORRECT ANSWER Investment in which investors are inactive participants, such as limited partnerships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another." "Part of a legal description on a deed stated " 38 degrees 7'". What type of description was it? - CORRECT ANSWER Metes and bounds" "A brother and sister hold land as joint tenants. The sister conveys one-half of her interest to her husband. Ownership would now be held by the - CORRECT ANSWER Brother sister and her husband as tenants in common" "An owner granted a life estate to another but retained a future interest, which was a - CORRECT ANSWER Reversionary interest -The interest reverts back to the owners" "K, who had a life estate for the life of L, leased the property to M for five years. What would happen if K were to die. - CORRECT ANSWER K's heirs would be entitled to K's interest -the life estate is based on L's life" "A person other than the grantor has a future interest in a life estate. That interest would be - CORRECT ANSWER a remainder interest -a third-party future interest is a remainder interest. An interest that reverted to the grantor would be a reversionary interest" "A life estate was lost by merger. Merger occurred when the - CORRECT ANSWER remainder interest holder purchased the life tenant's interest. -The life interest and remainder interest are merged into a single interest" "The statutory right of a widow in the estate of her deceased husband is a - CORRECT ANSWER dower right -in some states, a wife is entitled to a percentage of her husband's real property and/or a life estate in the husband's home upon the husbands death" “Real property interests include... - CORRECT ANSWER an appurtenance that goes with the land. Examples: buildings, fences, trees, water rights, the ground below, mineral rights, air rights, easements" "What is a form of ownership that is restricted to husbands and wives? - CORRECT ANSWER Tenancy by the entirety. Each owns the entire parcel. Neither can separately convey and interest during the other's life time. On the death of a spouse, the survivor owns the property Divorce would change this ownership to a tenancy in common" "J had to pay a stock transfer fee when he sold his unit. What type of development was it? - CORRECT ANSWER Cooperative - each owner owns stock in a corporation and has the right to occupy a unity under a propriety lease. unlike condo ownership, co-op taxes and mortgage payments are generally made by the corporation, not by the individual owners." "A leased far is sold. The growing crops belong to the - CORRECT ANSWER tenant. -Growing crops are emblements" "A swimming pool in a condo development would be regarded as - CORRECT ANSWER a common element - common areas for all owners" "A buyer of a residential unit received a share of stock and occupancy based on a lease. What type of development was the unit in? - CORRECT ANSWER Cooperative -stock ownership + propriety lease ( a lease by a cooperative to a shareholder providing a right to occupy a unity)" "Joint tenancy and tenancy in common are similar in that a. interest passes to heirs upon death of an owner b. interest of owners must be equal c. a sale of an interest requires approval of other owners d. all owners have equal rights of possession - CORRECT ANSWER All owners have equal rights of possession - the only one of four unities present in tenancy in common is possession. there is no survivorship , on the death of tenant in common, his or her interest passes to the heirs by will, trust, or probate rather than to surviving tenants in common." "A deed to a brother and sister did not specify how title should be taken. Title would be as a. joint tenancy b. tenancy in severalty c. tenancy by the entirety d. tenancy in common - CORRECT ANSWER Tenancy in Common (TIC) to other than husband and wife if not stated in deed." "J deeded property to K. The deed provided that if K ever used the property for the sale of alcoholic beverages, title would revert to J. The estate created by the conveyance is a(n) - CORRECT ANSWER Estate on condition subsequent. -The estate is presently valid but can be lost" "S and M plan to buy a home together but want to be able to will their property individually to their own children from previous marriages. They should hold title as - CORRECT ANSWER Tenants in Common -there is no right to survivorship in TIC. Tenants by entirety and joint tenants would go to the survivor and Tenants in severalty would be only 1 owner" "J and his sister K were co-owners of a lot. K became the sole owner automatically when J died, because they owned the lot a. in severalty b. in joint tenancy c. as community property d. in tenancy by entirety - CORRECT ANSWER In joint tenancy Tenancy by entirety is only for spouses. Tenancy in Severalty is ownership by one individual or entity." "L, M, and N owned property as joint tenants. M died, followed b y the death of N. Title to the property would be held by - CORRECT ANSWER L in severalty" "Interval exclusive occupancy coupled with a tenancy -in-common interest describes a(n) - CORRECT ANSWER timeshare ownership -a time share can be a leasehold or fee simple interest for specified periods of time" "What is the highest form of ownership - CORRECT ANSWER Fee simple absolute -fee simple ownership has no time limitation and can be freely transferred and can be inherited." "A property description in a deed mentioned a point of beginning. Which method was the description based on? - CORRECT ANSWER Metes and bounds -measures from point to point" "A court will grant a request for partition when title is held - CORRECT ANSWER in joint tenancy or tenancy in common" "A legal description outlines the boundaries of a property. What type of description is it? - CORRECT ANSWER Metes and bounds (also called measurements and directions) -it encircles the parcel" "J gave K a life estate, and L was named to receive the interest on K's death. Given these facts: a. K has a reversionary interest b. L has a remainder interest c. K can defeat L's interest by deed or will d. K cannot borrow on her interest - CORRECT ANSWER L has a remainder interest" "By purchasing the reversionary interest of the grantor, the former life tenant would now have a - CORRECT ANSWER fee simple -life estate was lost by merger into greater fee simple interest" "J purchased a property with K as joint tenants. When J died, it was discovered that an encumbrance had been placed against J's interest in the property and that J's will provided that the property and interest should pass to L. How would title to the property be held? - CORRECT ANSWER K in severalty free of encumbrance. Title passes free of J's encumbrance to the survivor. it does not pass by will." "A condominium would be described as a(n) a. undivided interest in the whole b. undivided interest in common areas and separate interest in the individual units c. separate interest in the whole d. divided interest in common areas and undivided interest in each unit - CORRECT ANSWER undivided interest in common areas and separate interest in individual units. - condo owners own their own air pace, but common areas are owned with the other owners as tenants in common" "Homeowners associations meet the needs of - CORRECT ANSWER common interest development -HOAs are present and collect assessments whenever there is a common interest development a" "A life estate could become a fee simple estate by - CORRECT ANSWER merger of interests - when the owner of a life estate acquires the reversionary interest in the property, the interests become one and the title is no longer defeasible" "One quarter of a quarter section contains - CORRECT ANSWER 40 acres" "Bricks are used to build a backyard barbecue. The bricks have become real property through the process of - CORRECT ANSWER annexation Personal property has become attached so as to become real property" "Creditors can go against the personal assets of investors in a(n) - CORRECT ANSWER General partnership -General partners are personally liable for debts of the partnership" "What section is directly north of Section 18 be located? - CORRECT ANSWER NW 1/4 (reference page 5)" "The maximum number of complete townships possible within a ranch that is 26 miles square, would be - CORRECT ANSWER 16 A township is six miles square, meaning it measures six miles on each side. Four complete townships can be placed in a row either vertically or horizontally in a ranch that is 26 miles square. Four rows, each containing four townships equals 16 townships" "What section is directly north of Section 2 in a township? - CORRECT ANSWER 35" "How much fencing would it take to fence a township? - CORRECT ANSWER 24 miles" "The Office of Interstate Land Sales Registration is concerned with unimproved land sales in interstate commerce of - CORRECT ANSWER 25 or more parcels - Requires full disclosure to prevent fraud - requires disclosure of property information to buyers for unimproved land sales sold in interstate commerce. The act requires a registration with the Office of Interstate Land Sales Registration (OILSR) that is part of HUD. Applies to 25 or more lots. If the buyer does not receive a disclosure report, the purchaser has a seven-day right of rescission from the date of purchase." "The south boundary line of Section 13 Township 2 north range 3 east is a. 9 miles north of the base line b. 15 miles east of the meridian c. 3 miles east of the meridian d. 9 miles east of the baseline - CORRECT ANSWER A. Section 13 would be three miles north of its township line plus one township (6 miles) north of the baseline" "How many acres are in a section of a township? - CORRECT ANSWER 640 acres" "How large is one township? - CORRECT ANSWER 6 mile square (36 sq miles)" "How many feet in a mile? - CORRECT ANSWER 5280 ft" "How many square feet are in one acre - CORRECT ANSWER 43560 sq ft" "A form of ownership where one owner cannot separately convey his or her interest is a - CORRECT ANSWER Tenancy by the entirety Tenancy by the entirety is a joint tenancy between spouses where neither spouse can separately convey their interest." "Which of the following rectangles is large than an acre? a.100' x 420' b. 90' x 450' c. 1 mile x 8' d. 209' x 209' - CORRECT ANSWER 209' x 209' ( one acre is 43560 sq ft)" "A joint venture would be a form of - CORRECT ANSWER partnership a Joint venture is an association formed for a single undertaking with the joint venturers sharing in a profit or loss. A joint venture is treated by the law in most cases as a partnership, however, one joint venturer cannot contractually obligate the other joint venturer into a contract." "A building was torn down leaving material that was classified as personal property. The act was one of - CORRECT ANSWER severance" "A vertical strip of land is six miles wide an is adjacent and west of a principal meridian. The strip would be described as - CORRECT ANSWER range 1 west" "The U.S Geological Survey sets - CORRECT ANSWER benchmarks Markers showing elevation above sea level. Topographical lines follow elevation to show contour of the lands." "The SW1/4 of SE 1/4 of NW1/4 of SW1/4 of a section contains - CORRECT ANSWER 640 acres/4 = 160 acres 160 acres/4 = 40 acres 40 acres/ 4 = 10 acres 10 acres/4 = 2.5 acres 2.5 acres" "An estate in real estate a. would be forever b. must be created by grant c. must included immediate possession d. can run within another estate - CORRECT ANSWER can run within another estate (such as a leasehold interest in a property held in fee simple)" "A major difference between a planned unit development and a condominium would be - CORRECT ANSWER land ownership In a PUD, the unit owner owns land under the unit as well as a share in the common area. In a condominium, the land is owned in common" "A business that has the limited liability of a corporation yet is taxed as a partnership would be a(n) - CORRECT ANSWER LLC the limited liability company description also applies to S corporations" "A city purchased land for a dump site. How would the city hold title? - CORRECT ANSWER in severalty since the city (municipal corporation) would own the property by itself" "Four unities refers to ownership a. in severalty b. as joint tenants c. as tenants in common d. in partnership - CORRECT ANSWER as joint tenants the four unities are time, title, interest, and possession" "Nonstandard quarter sections resulting from land lost by rivers and lakes are designated as - CORRECT ANSWER government lots (designated by lot number)" "L,M, N,and O owned property as joint tenants. L sold her interest to P and M died. The property would be owned by - CORRECT ANSWER N and O as joint tenants and P as tenant in common" "HOAs would be associated with - CORRECT ANSWER common interest developments (homeowners associations)" "Which would be subject to double taxation a. REIT b. LLC c. Corporation d. Partnership - CORRECT ANSWER Corporation Although S corporations also avoid the double taxation" "A tenancy in common differs from a joint tenancy in that... - CORRECT ANSWER tenants in common may have unequal interests" "Chattels real differ from appurtenances in that they - CORRECT ANSWER Are personal property The definition of chattel refers to all personal property (things you own other than real estate). An example of chattel is your furniture and car." "L,M, and N are joint tenants. N sells his interest to O, the M dies. Which statement is true: a. Ms heirs, O, and L are joint tenants b. M's heirs and L are joint tenants, but O is a tenant in common c. L's, O's, and M's heirs are all tenants in common d. L and O are tenants in common - CORRECT ANSWER L and O are tenants in common -When N sold to O, N broke the joint tenancy as to his or her interest, and O had a one-third interest. When M died, L took the share by survivorship. L has a two-thirds interest and O has a one-third interest." "Which would be considered a limited common element in a condominium? a. bearing walls between adjoining tenants b. community swimming pool c. parking space designated for a particular unit d. land under the units - CORRECT ANSWER Bearing walls between adjoining tenants - commonly owned but reserved for use of a particular unit" "An example of an estate in real property would be a. joint tenancy b. fee simple c. severalty ownership d. community property - CORRECT ANSWER Fee simple Fee simple is the degree of ownership (estate) and others are forms of ownership"