MGRADES EXAMS
Chapter 1 National Real Estate Exam Prep
(Champions School of Real estate)
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Real property - CORRECT ANSWER - Land, improvements attached to land, benefits
rights, and ownership interests that go with the land.
Appurtenance - CORRECT ANSWER - Used to describe rights, privileges or
improvements that belong to or pass with the land.
Improvements - CORRECT ANSWER - Man's additions to the land such as buildings and
landscaping.
Personal Property/Chattel/Personalty - CORRECT ANSWER - a right or interest in things
of a temporary or movable nature; anything not classified as real property.
Bill of Sale - CORRECT ANSWER - A document used to transfer ownership of personal
property. (Addendum may be attached to contract to describe details of transaction.)
Fixture - CORRECT ANSWER - An item that was personal property; however, it has been
attached in a way that it has become real property. "Installed" indicates permanent. Never
freestanding.
Annexation - CORRECT ANSWER - Process of attaching fixture.
Severance/Severed - CORRECT ANSWER - Process of real property becoming personal.
, MGRADES EXAMS
Tests of a fixture - CORRECT ANSWER - Method of attachment, adaptation to the
property(custom built as opposed to stock items) and the intention of the parties attaching the
fixture.
Residential leasing fixtures - CORRECT ANSWER - Fixtures installed by tenants become
real property. Severance only occurs if with agreement.
Trade fixtures - CORRECT ANSWER - Installed by tenant to carry out business. Can be
removed PRIOR to termination. If not removed, it becomes real property.
Emblements - CORRECT ANSWER - Refers to crops which require annual planting.
Ownership can be transferred through bill of sale or farmer can make arrangements to harvest
one time after the sale.
Three physical characteristics of land - CORRECT ANSWER - 1. IMMOBILITY - cant be
moved, real estate is permanent
2. INDESTRUCTIBLE - durability, land is permanent
3. NON-HOMOGENEOUS- (Uniqueness)
Four economic characteristics of land - CORRECT ANSWER - 1. Scarcity- land will be in
short supply where demand is great
2. Modification- land value is greatly influenced by the (improvements) things that are built on it
3. Fixity- Land and buildings, and other improvements to land considered fixed or permanent
investments. Not liquid assets.
4. Situs- Location preference. Land can be worth more based on its location
Legal description - CORRECT ANSWER - Determined by surveyor. It is one of such
certainty and accuracy that one can go to the ground and identify the land.
Metes and Bounds - CORRECT ANSWER - Uses terminal points and angles and always
have a p.o.b. Oldest and most used method of land description.
Chapter 1 National Real Estate Exam Prep
(Champions School of Real estate)
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Real property - CORRECT ANSWER - Land, improvements attached to land, benefits
rights, and ownership interests that go with the land.
Appurtenance - CORRECT ANSWER - Used to describe rights, privileges or
improvements that belong to or pass with the land.
Improvements - CORRECT ANSWER - Man's additions to the land such as buildings and
landscaping.
Personal Property/Chattel/Personalty - CORRECT ANSWER - a right or interest in things
of a temporary or movable nature; anything not classified as real property.
Bill of Sale - CORRECT ANSWER - A document used to transfer ownership of personal
property. (Addendum may be attached to contract to describe details of transaction.)
Fixture - CORRECT ANSWER - An item that was personal property; however, it has been
attached in a way that it has become real property. "Installed" indicates permanent. Never
freestanding.
Annexation - CORRECT ANSWER - Process of attaching fixture.
Severance/Severed - CORRECT ANSWER - Process of real property becoming personal.
, MGRADES EXAMS
Tests of a fixture - CORRECT ANSWER - Method of attachment, adaptation to the
property(custom built as opposed to stock items) and the intention of the parties attaching the
fixture.
Residential leasing fixtures - CORRECT ANSWER - Fixtures installed by tenants become
real property. Severance only occurs if with agreement.
Trade fixtures - CORRECT ANSWER - Installed by tenant to carry out business. Can be
removed PRIOR to termination. If not removed, it becomes real property.
Emblements - CORRECT ANSWER - Refers to crops which require annual planting.
Ownership can be transferred through bill of sale or farmer can make arrangements to harvest
one time after the sale.
Three physical characteristics of land - CORRECT ANSWER - 1. IMMOBILITY - cant be
moved, real estate is permanent
2. INDESTRUCTIBLE - durability, land is permanent
3. NON-HOMOGENEOUS- (Uniqueness)
Four economic characteristics of land - CORRECT ANSWER - 1. Scarcity- land will be in
short supply where demand is great
2. Modification- land value is greatly influenced by the (improvements) things that are built on it
3. Fixity- Land and buildings, and other improvements to land considered fixed or permanent
investments. Not liquid assets.
4. Situs- Location preference. Land can be worth more based on its location
Legal description - CORRECT ANSWER - Determined by surveyor. It is one of such
certainty and accuracy that one can go to the ground and identify the land.
Metes and Bounds - CORRECT ANSWER - Uses terminal points and angles and always
have a p.o.b. Oldest and most used method of land description.
