Law of Contracts Exam Questions With Appropriate
Solutions.
Severance - accurate answers-Which term describes the process of real
property becoming personal property by detaching it from the land?
Accoutrement
Annexation
Emblement
Severance
Uniqueness - accurate answers-Physical characteristics of land include its
immobility, indestructibility, and ______.
Location
Permanence of investment
Scarcity
Uniqueness (nonhomogeneity)
Severance - accurate answers-Ted's seller client is adamant that she'll be
uprooting and taking most of the fruit trees in the backyard when she sells her
home. Ted makes a note to himself that he'll need to include the ______ of the
trees in the comments for his listing.
Abatement
Annexation
Defenestration
Severance
Contract Law - accurate answers-Which area of real estate law governs the
use of contracts, explains the elements required to make a contract valid, and
describes what happens if a breach of contract should occur?
Contract law
General property law
Law of agency
State-specific license laws
Disposition - accurate answers-Basic property rights include the rights of
possession, control, exclusion, enjoyment, and ______.
Destruction
Disposition
,Encroachment
Reliction
Improvements - accurate answers-Juan has decided to invest his small
inheritance in real estate. He is drawn to the fact that he can add a building
where there wasn't one previously and immediately increase the value of his
investment. Which economic characteristic of real property is this?
Area preference
Improvements
Permanence
Scarcity
Enjoyment - accurate answers-Which of the following is included with real
property rights?
Enjoyment
Hazardous acts
Right to destroy
Right to encroach
Immobility - accurate answers-Which physical characteristic of land
addresses the concept that the geographic location of a piece of land is fixed
and can never be changed?
Immobility
Indestructibility
Situs (location)
Uniqueness
Area preference - accurate answers-Allen and Lewis are friends who each
recently purchased real estate. Allen purchased a patio home in a small town
an hour from the city, while Lewis purchased a condo in a really hot area near
the city center. Although they paid similar amounts for their properties,
Lewis' condo is worth much more two years later. Which economic
characteristic does this demonstrate?
Area preference
Improvements
Permanence
Scarcity
,Exclusion - accurate answers-Sarah owns her own home. As part of her basic
property rights, she has the right to decide who may or may not access the
property. Which right is this?
Disposition
Enjoyment
Exclusion
Possession
Real estate license law - accurate answers-Which area of real estate law
covers the requirements of a licensee when performing real estate activities
within the state, including continuing education requirements, supervisory
requirements, and prohibited conduct?
Contract law
General property law
Law of agency
Real estate license law
Indestructibility - accurate answers-Sander and Ginny bought an old
industrial site and plan to get grant money to put an environmental education
center on the site. There are a few structures on the property, but they are in
disrepair, and it will likely be less expensive to tear them down and build new
than to rehabilitate them. However, the new owners are sure that they've
made a great investment because the land is in great shape. This reflects
which physical characteristic of real property?
Immobility
Improvements
Indestructibility
Uniqueness
Uniqueness - accurate answers-Which physical characteristic of land
addresses the concept that land isn't interchangeable and one piece of land
isn't exactly like another?
Immobility
Indestructibility
Permanence of investment
Uniqueness
A (They allow the owner to use the open space above buildings) - accurate
answers-Which of the following is true about air rights?
, A. They allow the owner to use the open space above buildings.
B. They allow the owner to use the space directly below buildings.
C. They cannot be bought or sold.
D. They include mineral rights.
A (HUD's Manufactured Housing Program) - accurate answers-Which
organization regulates and enforces the construction methods used for
manufactured homes?
A. HUD's Manufactured Housing Program
B. Texas Department of Housing and Community Affairs (TDHCA)
C. Texas Department of Transportation
D. Uniform Construction Code
D (The bundle of rights) - accurate answers-What is the name of a term which
explains the complexity of property ownership rights and how rights for a
single property can be "owned" by multiple parties at the same time?
A. Littoral rights
B. Physical component rights
C. Riparian rights
D. The bundle of rights
Profit and license - accurate answers-Property owners may keep, sell, or lease
their rights. Those rights include which of the following?
Collusion
Encroachment
Profit and license
Tax-free status
Appurtenance - accurate answers-Which of the following refers to the
inherent or automatic rights that are the natural consequences of property
ownership such as water rights?
Appurtenance
Bundle of rights
Servient
Title
Permanence - accurate answers-Jacob is a developer who purchased 78 acres
and had it subdivided into half-acre lots. He decided to install sewer and
underground electric for the entire subdivision, because he thinks that he will
Solutions.
Severance - accurate answers-Which term describes the process of real
property becoming personal property by detaching it from the land?
Accoutrement
Annexation
Emblement
Severance
Uniqueness - accurate answers-Physical characteristics of land include its
immobility, indestructibility, and ______.
Location
Permanence of investment
Scarcity
Uniqueness (nonhomogeneity)
Severance - accurate answers-Ted's seller client is adamant that she'll be
uprooting and taking most of the fruit trees in the backyard when she sells her
home. Ted makes a note to himself that he'll need to include the ______ of the
trees in the comments for his listing.
Abatement
Annexation
Defenestration
Severance
Contract Law - accurate answers-Which area of real estate law governs the
use of contracts, explains the elements required to make a contract valid, and
describes what happens if a breach of contract should occur?
Contract law
General property law
Law of agency
State-specific license laws
Disposition - accurate answers-Basic property rights include the rights of
possession, control, exclusion, enjoyment, and ______.
Destruction
Disposition
,Encroachment
Reliction
Improvements - accurate answers-Juan has decided to invest his small
inheritance in real estate. He is drawn to the fact that he can add a building
where there wasn't one previously and immediately increase the value of his
investment. Which economic characteristic of real property is this?
Area preference
Improvements
Permanence
Scarcity
Enjoyment - accurate answers-Which of the following is included with real
property rights?
Enjoyment
Hazardous acts
Right to destroy
Right to encroach
Immobility - accurate answers-Which physical characteristic of land
addresses the concept that the geographic location of a piece of land is fixed
and can never be changed?
Immobility
Indestructibility
Situs (location)
Uniqueness
Area preference - accurate answers-Allen and Lewis are friends who each
recently purchased real estate. Allen purchased a patio home in a small town
an hour from the city, while Lewis purchased a condo in a really hot area near
the city center. Although they paid similar amounts for their properties,
Lewis' condo is worth much more two years later. Which economic
characteristic does this demonstrate?
Area preference
Improvements
Permanence
Scarcity
,Exclusion - accurate answers-Sarah owns her own home. As part of her basic
property rights, she has the right to decide who may or may not access the
property. Which right is this?
Disposition
Enjoyment
Exclusion
Possession
Real estate license law - accurate answers-Which area of real estate law
covers the requirements of a licensee when performing real estate activities
within the state, including continuing education requirements, supervisory
requirements, and prohibited conduct?
Contract law
General property law
Law of agency
Real estate license law
Indestructibility - accurate answers-Sander and Ginny bought an old
industrial site and plan to get grant money to put an environmental education
center on the site. There are a few structures on the property, but they are in
disrepair, and it will likely be less expensive to tear them down and build new
than to rehabilitate them. However, the new owners are sure that they've
made a great investment because the land is in great shape. This reflects
which physical characteristic of real property?
Immobility
Improvements
Indestructibility
Uniqueness
Uniqueness - accurate answers-Which physical characteristic of land
addresses the concept that land isn't interchangeable and one piece of land
isn't exactly like another?
Immobility
Indestructibility
Permanence of investment
Uniqueness
A (They allow the owner to use the open space above buildings) - accurate
answers-Which of the following is true about air rights?
, A. They allow the owner to use the open space above buildings.
B. They allow the owner to use the space directly below buildings.
C. They cannot be bought or sold.
D. They include mineral rights.
A (HUD's Manufactured Housing Program) - accurate answers-Which
organization regulates and enforces the construction methods used for
manufactured homes?
A. HUD's Manufactured Housing Program
B. Texas Department of Housing and Community Affairs (TDHCA)
C. Texas Department of Transportation
D. Uniform Construction Code
D (The bundle of rights) - accurate answers-What is the name of a term which
explains the complexity of property ownership rights and how rights for a
single property can be "owned" by multiple parties at the same time?
A. Littoral rights
B. Physical component rights
C. Riparian rights
D. The bundle of rights
Profit and license - accurate answers-Property owners may keep, sell, or lease
their rights. Those rights include which of the following?
Collusion
Encroachment
Profit and license
Tax-free status
Appurtenance - accurate answers-Which of the following refers to the
inherent or automatic rights that are the natural consequences of property
ownership such as water rights?
Appurtenance
Bundle of rights
Servient
Title
Permanence - accurate answers-Jacob is a developer who purchased 78 acres
and had it subdivided into half-acre lots. He decided to install sewer and
underground electric for the entire subdivision, because he thinks that he will
