NC REAL ESTATE EXAM PREP SUPERIOR
SCHOOL CH.2 QUESTIONS WITH 100%
ACCURATE ANSWERS
The concept by which land would increase automatically along a river or stream is known as:
A accretion
B littoral rights
C avulsion
D reliction - Accurate answers A
Accretion is the gradual buildup of land along a river a stream. It increases automatically because the
land owner does not have to do anything to gain the increase. It is the opposite of erosion.
Which of the following is generally considered real property?
A emblements
B trade fixtures
C a shrub planted in a decorative pot
D a perennial shrub planted in the backyard - Accurate answers D
Real property includes the land and all of the appurtenances that go with it. Emblements, the right of
the previous owner to harvest crops through the current growing season is not considered part of the
land. Both trade fixtures and the shrub in a separate container or pot are considered personal property
and not part of the land.
The phrase "bundle of legal rights":
A is part of the definition of real property
B is another name for a legal description
C refers to the legal documents used in real estate transactions
D refers to the tenant's rights in a lease - Accurate answers A
The transfer of real property includes the transfer of a bundle of rights, including all of the rights,
interests and appurtenances that are part of the property. These are referenced by the acronym DEEPC,
disposition enjoyment, exclusion, possession and control.
A trade fixture is considered:
A a fixture
, B an easement
C personalty
D a license - Accurate answers C
Typically fixtures are part of the real property and get transferred with the property. Trade fixtures are
those items used in a trade and business and they remain personalty. This means the tenant may
remove these items so long as they do so before the expiration of the lease.
Real property can become personal property by:
A severance
B purchase
C hypothecation
D attachment - Accurate answers A
The act of permanently attaching personal property and transforming it into a fixture is called
annexation. The act of turning real property into personal property is called severance. A good example
would be the trees growing on the property which are considered real property. Severance occurs when
they are cut down and severed from the property and they become firewood which is personal
property.
A seller is under contract to sell a property using the standard offer to purchase and contract. The
elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and
electrical outlet covers and draperies fashioned from fabric coordinated with the wallpaper. Which of
the following items may the seller legally remove before the close of the transaction?
A none of the items
B the draperies and blinds
C the hand-painted light switches and electrical outlet covers
D the draperies - Accurate answers D
Parties to a transaction are able to specifically contract for certain items to either transfer or remain
with the property. The standard NCBA/NCAR purchase contract considers and lists all of the other items
as fixtures which are to remain with the property. The draperies are not considered a fixture and the
seller may remove them.
A business owner rents an empty building to use an ice cream parlor. The tenant subsequently installs
large freezer units and several service counters. These additions:
A are considered permanent improvements to the property
B become the landlord's property once attached to the building
C can be legally removed by the tenant at the termination of the lease
D can only be removed by the tenant with the landlord's permission - Accurate answers C
These items are considered trade fixtures and as such remain personalty.
SCHOOL CH.2 QUESTIONS WITH 100%
ACCURATE ANSWERS
The concept by which land would increase automatically along a river or stream is known as:
A accretion
B littoral rights
C avulsion
D reliction - Accurate answers A
Accretion is the gradual buildup of land along a river a stream. It increases automatically because the
land owner does not have to do anything to gain the increase. It is the opposite of erosion.
Which of the following is generally considered real property?
A emblements
B trade fixtures
C a shrub planted in a decorative pot
D a perennial shrub planted in the backyard - Accurate answers D
Real property includes the land and all of the appurtenances that go with it. Emblements, the right of
the previous owner to harvest crops through the current growing season is not considered part of the
land. Both trade fixtures and the shrub in a separate container or pot are considered personal property
and not part of the land.
The phrase "bundle of legal rights":
A is part of the definition of real property
B is another name for a legal description
C refers to the legal documents used in real estate transactions
D refers to the tenant's rights in a lease - Accurate answers A
The transfer of real property includes the transfer of a bundle of rights, including all of the rights,
interests and appurtenances that are part of the property. These are referenced by the acronym DEEPC,
disposition enjoyment, exclusion, possession and control.
A trade fixture is considered:
A a fixture
, B an easement
C personalty
D a license - Accurate answers C
Typically fixtures are part of the real property and get transferred with the property. Trade fixtures are
those items used in a trade and business and they remain personalty. This means the tenant may
remove these items so long as they do so before the expiration of the lease.
Real property can become personal property by:
A severance
B purchase
C hypothecation
D attachment - Accurate answers A
The act of permanently attaching personal property and transforming it into a fixture is called
annexation. The act of turning real property into personal property is called severance. A good example
would be the trees growing on the property which are considered real property. Severance occurs when
they are cut down and severed from the property and they become firewood which is personal
property.
A seller is under contract to sell a property using the standard offer to purchase and contract. The
elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and
electrical outlet covers and draperies fashioned from fabric coordinated with the wallpaper. Which of
the following items may the seller legally remove before the close of the transaction?
A none of the items
B the draperies and blinds
C the hand-painted light switches and electrical outlet covers
D the draperies - Accurate answers D
Parties to a transaction are able to specifically contract for certain items to either transfer or remain
with the property. The standard NCBA/NCAR purchase contract considers and lists all of the other items
as fixtures which are to remain with the property. The draperies are not considered a fixture and the
seller may remove them.
A business owner rents an empty building to use an ice cream parlor. The tenant subsequently installs
large freezer units and several service counters. These additions:
A are considered permanent improvements to the property
B become the landlord's property once attached to the building
C can be legally removed by the tenant at the termination of the lease
D can only be removed by the tenant with the landlord's permission - Accurate answers C
These items are considered trade fixtures and as such remain personalty.
