Rockwell Real Estate Exam
Questions Complete Solutions New
Update (A Grade)
What are the two types of Freehold Estates? - Answers -✔✔ Fee Simple & Life
What are the four types of Leasehold Estates? - Answers -✔✔ (1) Estate for Years, (2)
Estate from Period to Period, (3) Estate at Will, (4) Estate at Sufferance.
What is the most common type of estate? - Answers -✔✔ Fee Simple Estate
Fee Simple Absolute - Answers -✔✔ Title Transfer(deed) conveyed without
qualifications or conditions.
Defeasible Fee Estate - Answers -✔✔ The deed states that the new owner will own the
property until or unless a specified act or event takes place. (qualified fee estate, or a
conditional fee estate)
Fee Simple Determinable - Answers -✔✔ Automatic forfeiture of title. The act or event
prohibited in the deed occurs, title automatically reverts to the person who imposed the
limitation, or to his heirs. (possibility of reverter)
Condition Subsequent - Answers -✔✔ If a prohibited act or event occurs, the person
who imposed the limitation (or his heirs) will regain title only if he takes legal action to do
so.
Fee Simple - Answers -✔✔ A fee simple estate is the highest and most complete form
of real property ownership. It is perpetual, transferable, and inheritable.A fee simple is
classified either as a fee simple absolute or as a defeasible fee estate.
Estate In Land - Answers -✔✔ A possessory interest, which is an interest in property
that includes the right to possess and occupy the property.
Life Estate - Answers -✔✔ A life estate is an ownership interest that lasts only as long
as a specified person, the measuring life, lives.
When that person dies, the property reverts to the reversioners or passes to the
remainderman
Measuring Life - Answers -✔✔ The measuring life is the person upon whose death the
life estate will terminate.It's usually the person who owns the life estate, but not always.
,Estate In Reversion - Answers -✔✔ An estate in reversion is held by the grantor's heirs,
who receive the estate after the end of the measuring life.The heirs are known as
reversioners.
Estate In Remainder - Answers -✔✔ An estate in remainder is held by a designated
third party who receives the estate after the end of the measuring life.The third party is
known as a remainderman.
Leasehold Estate - Answers -✔✔ A leasehold estate gives a tenant exclusive
possession and use of the property for a limited period. The tenant does not have title.
Estate For Years - Answers -✔✔ An estate for years is a lease for a fixed term, which
ends automatically when the term is over.The parties may mutually agree to end the
tenancy sooner by surrender.An estate for years is assignable to a third party.
Periodic Estate - Answers -✔✔ A periodic estate is not limited to a specific term, but
automatically continues from period to period until one party gives the other proper
notice of termination.
Estate At Will - Answers -✔✔ An estate at will has no specific term or rental
interval.Rent is not paid on a regular basis, or else it takes some form other than
money.A landlord has to give notice to terminate an estate at will.
Estate At Sufferance - Answers -✔✔ An estate at sufferance arises when a tenant who
lawfully took possession of the property stays on after the lease ends, without the
permission of the landlord.
Severalty - Answers -✔✔ Ownership in severalty is ownership by one individual (either
one natural person or one artificial person).
Concurrent Ownership - Answers -✔✔ Property is owned concurrently (co-owned) when
two or more persons have undivided interests in it.The forms of concurrent ownership
recognized in Washington are tenancy in common, joint tenancy, and community
property.
Tenancy In Common - Answers -✔✔ In a tenancy in common, the co-tenants' undivided
interests may be equal or unequal.There is no right of survivorship, so a tenant in
common's interest may be willed.
Joint Tenancy - Answers -✔✔ Joint tenants have equal undivided interests in the
property.The key characteristic of a joint tenancy is the right of survivorship.When a joint
tenant dies, her interest automatically passes to the surviving joint tenants.
,Four Unities - Answers -✔✔ To establish or maintain a joint tenancy, there must be
unity of interest, time, title, and possession.
Unity Of Possession - Answers -✔✔ Both joint tenancy and tenancy in common involve
unity of possession.This means that all of the co-tenants have a right to possess the
entire property.
Community Property - Answers -✔✔ Community property is a form of co-ownership that
exists only between two married people.Everything that a married person owns in
Washington is either community property or his or her separate property.Each spouse
has a 50% undivided interest in the community property.
Seperate Property - Answers -✔✔ To be classified as a spouse's separate property,
property acquired during marriage must be one of the following: (1) acquired by gift or
inheritance, (2) purchased with separate funds, or (3) profits or proceeds from separate
property.
Joinder - Answers -✔✔ The signatures of both spouses are necessary to list, sell,
encumber, or purchase community real property.
General Partnership - Answers -✔✔ In a general partnership, all of the partners have a
say in managing the company, and they are personally liable for the partnership's debts.
Partnership Property - Answers -✔✔ If property is acquired in a partnership's name, or if
the deed refers to the partnership, then the property is partnership property.Partners
may possess the property for partnership purposes.But an individual partner isn't a co-
owner of the partnership property, and has no transferable interest in it.
Limited Partnership - Answers -✔✔ A limited partnership has one or more general
partners who manage the business and have unlimited liability.It also has limited
partners, who may participate in management but usually are passive investors, and
who have limited liability.
Limited Liability - Answers -✔✔ Investors who have limited liability are not legally
responsible for the debts, the obligations, or the actions of the entity in which they have
invested.
Corporation - Answers -✔✔ A corporation is an artificial person that is separate from its
stockholders.The stockholders have limited liability and elect a board of directors to
oversee the business.The board appoints the officers, who manage the business.
LLC - Answers -✔✔ In a limited liability company, all of the members have limited
liability.Unlike general partners, the managing members of an LLC are not personally
liable for the company's debts and obligations.And in contrast to most corporations,
LLCs are not subject to double taxation.
, Joint Venture - Answers -✔✔ In a joint venture, two or more legal entities join together
to accomplish a particular project.A joint venture is not an ongoing business.
REIT - Answers -✔✔ In a real estate investment trust, there are at least one hundred
investors, and they have limited liability.To avoid double taxation, the REIT must
distribute most of its income to its investors.
Securities - Answers -✔✔ Securities are investment instruments that represent a
financial interest in an enterprise without direct managerial control over it, such as
shares in a corporation.Securities are subject to regulation by the Securities and
Exchange Commission at the federal level and to blue sky laws at the state level.
Condominium - Answers -✔✔ In a condominium, an owner has title to his dwelling
unit.But he shares ownership of the condominium's common elements with the other
unit owners as tenants in common.For most purposes, including financing and taxation,
each unit is treated as a separate property.
Common Elements - Answers -✔✔ The common elements are parts of the
condominium property that may be used by all of the residents.Ownership of a specific
undivided interest in the common elements is assigned to each unit in the condominium.
Limited Common Elements - Answers -✔✔ Certain features in a condominium, such as
assigned parking spaces or balconies, may be designated as limited common
elements.Ownership of a limited common element is shared by all of the unit
owners.However, the use of a limited common element is reserved for the owner of one
unit.
Cooperative - Answers -✔✔ In a cooperative, the units are not separately owned;
instead, a corporation has title to the whole property.A tenant owns shares in the
corporation and has a proprietary lease for a particular unit.The entire cooperative is
taxed and financed as a single property.
Timeshare - Answers -✔✔ A timeshare involves purchase of the right to use a property
during a particular time slot on a recurring basis.Real estate licensees may handle
resales of timeshares, but not first-time sales, which can be sold only by persons
registered as timeshare salespersons.
Patent - Answers -✔✔ A patent transfers real property from government ownership to
private ownership.
Warranty Deed - Answers -✔✔ The covenants in a warranty deed (sometimes known as
a general warranty deed) cover title defects arising before and during the grantor's
period of ownership.A warranty deed offers the grantee the most protection, and gives
the grantor the most liability.
Questions Complete Solutions New
Update (A Grade)
What are the two types of Freehold Estates? - Answers -✔✔ Fee Simple & Life
What are the four types of Leasehold Estates? - Answers -✔✔ (1) Estate for Years, (2)
Estate from Period to Period, (3) Estate at Will, (4) Estate at Sufferance.
What is the most common type of estate? - Answers -✔✔ Fee Simple Estate
Fee Simple Absolute - Answers -✔✔ Title Transfer(deed) conveyed without
qualifications or conditions.
Defeasible Fee Estate - Answers -✔✔ The deed states that the new owner will own the
property until or unless a specified act or event takes place. (qualified fee estate, or a
conditional fee estate)
Fee Simple Determinable - Answers -✔✔ Automatic forfeiture of title. The act or event
prohibited in the deed occurs, title automatically reverts to the person who imposed the
limitation, or to his heirs. (possibility of reverter)
Condition Subsequent - Answers -✔✔ If a prohibited act or event occurs, the person
who imposed the limitation (or his heirs) will regain title only if he takes legal action to do
so.
Fee Simple - Answers -✔✔ A fee simple estate is the highest and most complete form
of real property ownership. It is perpetual, transferable, and inheritable.A fee simple is
classified either as a fee simple absolute or as a defeasible fee estate.
Estate In Land - Answers -✔✔ A possessory interest, which is an interest in property
that includes the right to possess and occupy the property.
Life Estate - Answers -✔✔ A life estate is an ownership interest that lasts only as long
as a specified person, the measuring life, lives.
When that person dies, the property reverts to the reversioners or passes to the
remainderman
Measuring Life - Answers -✔✔ The measuring life is the person upon whose death the
life estate will terminate.It's usually the person who owns the life estate, but not always.
,Estate In Reversion - Answers -✔✔ An estate in reversion is held by the grantor's heirs,
who receive the estate after the end of the measuring life.The heirs are known as
reversioners.
Estate In Remainder - Answers -✔✔ An estate in remainder is held by a designated
third party who receives the estate after the end of the measuring life.The third party is
known as a remainderman.
Leasehold Estate - Answers -✔✔ A leasehold estate gives a tenant exclusive
possession and use of the property for a limited period. The tenant does not have title.
Estate For Years - Answers -✔✔ An estate for years is a lease for a fixed term, which
ends automatically when the term is over.The parties may mutually agree to end the
tenancy sooner by surrender.An estate for years is assignable to a third party.
Periodic Estate - Answers -✔✔ A periodic estate is not limited to a specific term, but
automatically continues from period to period until one party gives the other proper
notice of termination.
Estate At Will - Answers -✔✔ An estate at will has no specific term or rental
interval.Rent is not paid on a regular basis, or else it takes some form other than
money.A landlord has to give notice to terminate an estate at will.
Estate At Sufferance - Answers -✔✔ An estate at sufferance arises when a tenant who
lawfully took possession of the property stays on after the lease ends, without the
permission of the landlord.
Severalty - Answers -✔✔ Ownership in severalty is ownership by one individual (either
one natural person or one artificial person).
Concurrent Ownership - Answers -✔✔ Property is owned concurrently (co-owned) when
two or more persons have undivided interests in it.The forms of concurrent ownership
recognized in Washington are tenancy in common, joint tenancy, and community
property.
Tenancy In Common - Answers -✔✔ In a tenancy in common, the co-tenants' undivided
interests may be equal or unequal.There is no right of survivorship, so a tenant in
common's interest may be willed.
Joint Tenancy - Answers -✔✔ Joint tenants have equal undivided interests in the
property.The key characteristic of a joint tenancy is the right of survivorship.When a joint
tenant dies, her interest automatically passes to the surviving joint tenants.
,Four Unities - Answers -✔✔ To establish or maintain a joint tenancy, there must be
unity of interest, time, title, and possession.
Unity Of Possession - Answers -✔✔ Both joint tenancy and tenancy in common involve
unity of possession.This means that all of the co-tenants have a right to possess the
entire property.
Community Property - Answers -✔✔ Community property is a form of co-ownership that
exists only between two married people.Everything that a married person owns in
Washington is either community property or his or her separate property.Each spouse
has a 50% undivided interest in the community property.
Seperate Property - Answers -✔✔ To be classified as a spouse's separate property,
property acquired during marriage must be one of the following: (1) acquired by gift or
inheritance, (2) purchased with separate funds, or (3) profits or proceeds from separate
property.
Joinder - Answers -✔✔ The signatures of both spouses are necessary to list, sell,
encumber, or purchase community real property.
General Partnership - Answers -✔✔ In a general partnership, all of the partners have a
say in managing the company, and they are personally liable for the partnership's debts.
Partnership Property - Answers -✔✔ If property is acquired in a partnership's name, or if
the deed refers to the partnership, then the property is partnership property.Partners
may possess the property for partnership purposes.But an individual partner isn't a co-
owner of the partnership property, and has no transferable interest in it.
Limited Partnership - Answers -✔✔ A limited partnership has one or more general
partners who manage the business and have unlimited liability.It also has limited
partners, who may participate in management but usually are passive investors, and
who have limited liability.
Limited Liability - Answers -✔✔ Investors who have limited liability are not legally
responsible for the debts, the obligations, or the actions of the entity in which they have
invested.
Corporation - Answers -✔✔ A corporation is an artificial person that is separate from its
stockholders.The stockholders have limited liability and elect a board of directors to
oversee the business.The board appoints the officers, who manage the business.
LLC - Answers -✔✔ In a limited liability company, all of the members have limited
liability.Unlike general partners, the managing members of an LLC are not personally
liable for the company's debts and obligations.And in contrast to most corporations,
LLCs are not subject to double taxation.
, Joint Venture - Answers -✔✔ In a joint venture, two or more legal entities join together
to accomplish a particular project.A joint venture is not an ongoing business.
REIT - Answers -✔✔ In a real estate investment trust, there are at least one hundred
investors, and they have limited liability.To avoid double taxation, the REIT must
distribute most of its income to its investors.
Securities - Answers -✔✔ Securities are investment instruments that represent a
financial interest in an enterprise without direct managerial control over it, such as
shares in a corporation.Securities are subject to regulation by the Securities and
Exchange Commission at the federal level and to blue sky laws at the state level.
Condominium - Answers -✔✔ In a condominium, an owner has title to his dwelling
unit.But he shares ownership of the condominium's common elements with the other
unit owners as tenants in common.For most purposes, including financing and taxation,
each unit is treated as a separate property.
Common Elements - Answers -✔✔ The common elements are parts of the
condominium property that may be used by all of the residents.Ownership of a specific
undivided interest in the common elements is assigned to each unit in the condominium.
Limited Common Elements - Answers -✔✔ Certain features in a condominium, such as
assigned parking spaces or balconies, may be designated as limited common
elements.Ownership of a limited common element is shared by all of the unit
owners.However, the use of a limited common element is reserved for the owner of one
unit.
Cooperative - Answers -✔✔ In a cooperative, the units are not separately owned;
instead, a corporation has title to the whole property.A tenant owns shares in the
corporation and has a proprietary lease for a particular unit.The entire cooperative is
taxed and financed as a single property.
Timeshare - Answers -✔✔ A timeshare involves purchase of the right to use a property
during a particular time slot on a recurring basis.Real estate licensees may handle
resales of timeshares, but not first-time sales, which can be sold only by persons
registered as timeshare salespersons.
Patent - Answers -✔✔ A patent transfers real property from government ownership to
private ownership.
Warranty Deed - Answers -✔✔ The covenants in a warranty deed (sometimes known as
a general warranty deed) cover title defects arising before and during the grantor's
period of ownership.A warranty deed offers the grantee the most protection, and gives
the grantor the most liability.
