NRL: Simulated Exam ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following would be an encumbrance and a lien? - CORRECT
ANSWERS✅✅Deed of trust
A buyer of a residential unit receives stock as a form of ownership. This is best described as:
- CORRECT ANSWERS✅✅Cooperative
Cooperative property is owned by the corporation and residents are shareholders who
purchase stock.
Building permits would be issued under the government's right of: - CORRECT
ANSWERS✅✅Police power
A valid warranty deed must contain all of the following elements, except: - CORRECT
ANSWERS✅✅Signed by grantee
A valid warranty deed does not require grantee's signature.
When selling an individual condominium unit which of the following would be appurtenant
to the unit? - CORRECT ANSWERS✅✅Cabinets in the unit
In a condominium, built-in cabinets are appurtenant.
Title insurance for the lender would cover all of the following EXCEPT: - CORRECT
ANSWERS✅✅No junior liens will appear on title
Title insurance for the lender would cover all of the following EXCEPT "no junior liens will
appear on title."
,Husband & wife own community property and make a will. How is the property distributed
upon the death of one party? - CORRECT ANSWERS✅✅Property passes according to the
will
What would not be a legal principle when applying legal tests to fixtures? - CORRECT
ANSWERS✅✅Cost of the item
What power does the government exercise when it takes private property for public use? -
CORRECT ANSWERS✅✅Eminent domain
Condemnation, or appropriation, describe the act of taking the land. Eminent domain is the
power that makes it possible.
All of the following are examples of real property except: - CORRECT
ANSWERS✅✅Drapes
Drapes are usually not considered real property. In some instances (i.e. drapes custom made
to fit an unusual window), they can be considered real property.
Which of the following does not derive from a city's police power? - CORRECT
ANSWERS✅✅Developer's restrictive covenants
All are government restrictions on land use except C, which is enacted by a private citizen.
Roberta wishes to build her garage 2 feet from her side lot line. City code calls for all side
setbacks to be at least 5 feet. She will need to get what to be able to legally proceed and be
assured that future owners will not have a problem? - CORRECT ANSWERS✅✅A variance
The Smiths purchase a cooperative on the Gold Coast. What will they receive at closing? -
CORRECT ANSWERS✅✅Shares of stock and a proprietary lease
A cooperative is not real estate, but the purchase of shares of stock in a corporation. With the
stock comes a proprietary lease, or the right to occupy a specific unit.
, Which of the following is a general lien? - CORRECT ANSWERS✅✅Judgment lien
A judgment lien is a lien, acquired in a court of law, which attaches to all the defendant's
property (both real and personal). A mortgage is a specific lien against real property only.
The property taxes are a lien against the property being accessed, and a mechanic's lien is
specific to a certain property. An easement is not a lien, but it is an encumbrance on the use
of property. The phrase to remember: "While all liens are encumbrances, not all
encumbrances are liens."
What type of land use doesn't comply with the zoning restriction for where it is located, but is
permitted because it benefits the public? - CORRECT ANSWERS✅✅Conditional use
Conditional uses (hospitals, schools etc) usually do not comply with zoning limitations.
"The subject property" best describes: - CORRECT ANSWERS✅✅The property for which
the value is sought
The appraiser does not consider properties on the market. The subject is the property for
which an opinion of value is sought, also called the base.
What is assessment value? - CORRECT ANSWERS✅✅The value the property taxes are
based on
When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace
and the comparable homes do not. He makes a $3,000 upward adjustment on his sales
comparison approach worksheet. The $3,000 adjustment is based on what appraisal
principle? - CORRECT ANSWERS✅✅Contribution
This is the amount the fireplace "contributes" to the value. It is not necessarily the cost to
install the individual item.
"Net income" best describes: - CORRECT ANSWERS✅✅Income after expenses
Expenses such a trash removal, repairs, and maintenance subtracted from gross income
equals net income.
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following would be an encumbrance and a lien? - CORRECT
ANSWERS✅✅Deed of trust
A buyer of a residential unit receives stock as a form of ownership. This is best described as:
- CORRECT ANSWERS✅✅Cooperative
Cooperative property is owned by the corporation and residents are shareholders who
purchase stock.
Building permits would be issued under the government's right of: - CORRECT
ANSWERS✅✅Police power
A valid warranty deed must contain all of the following elements, except: - CORRECT
ANSWERS✅✅Signed by grantee
A valid warranty deed does not require grantee's signature.
When selling an individual condominium unit which of the following would be appurtenant
to the unit? - CORRECT ANSWERS✅✅Cabinets in the unit
In a condominium, built-in cabinets are appurtenant.
Title insurance for the lender would cover all of the following EXCEPT: - CORRECT
ANSWERS✅✅No junior liens will appear on title
Title insurance for the lender would cover all of the following EXCEPT "no junior liens will
appear on title."
,Husband & wife own community property and make a will. How is the property distributed
upon the death of one party? - CORRECT ANSWERS✅✅Property passes according to the
will
What would not be a legal principle when applying legal tests to fixtures? - CORRECT
ANSWERS✅✅Cost of the item
What power does the government exercise when it takes private property for public use? -
CORRECT ANSWERS✅✅Eminent domain
Condemnation, or appropriation, describe the act of taking the land. Eminent domain is the
power that makes it possible.
All of the following are examples of real property except: - CORRECT
ANSWERS✅✅Drapes
Drapes are usually not considered real property. In some instances (i.e. drapes custom made
to fit an unusual window), they can be considered real property.
Which of the following does not derive from a city's police power? - CORRECT
ANSWERS✅✅Developer's restrictive covenants
All are government restrictions on land use except C, which is enacted by a private citizen.
Roberta wishes to build her garage 2 feet from her side lot line. City code calls for all side
setbacks to be at least 5 feet. She will need to get what to be able to legally proceed and be
assured that future owners will not have a problem? - CORRECT ANSWERS✅✅A variance
The Smiths purchase a cooperative on the Gold Coast. What will they receive at closing? -
CORRECT ANSWERS✅✅Shares of stock and a proprietary lease
A cooperative is not real estate, but the purchase of shares of stock in a corporation. With the
stock comes a proprietary lease, or the right to occupy a specific unit.
, Which of the following is a general lien? - CORRECT ANSWERS✅✅Judgment lien
A judgment lien is a lien, acquired in a court of law, which attaches to all the defendant's
property (both real and personal). A mortgage is a specific lien against real property only.
The property taxes are a lien against the property being accessed, and a mechanic's lien is
specific to a certain property. An easement is not a lien, but it is an encumbrance on the use
of property. The phrase to remember: "While all liens are encumbrances, not all
encumbrances are liens."
What type of land use doesn't comply with the zoning restriction for where it is located, but is
permitted because it benefits the public? - CORRECT ANSWERS✅✅Conditional use
Conditional uses (hospitals, schools etc) usually do not comply with zoning limitations.
"The subject property" best describes: - CORRECT ANSWERS✅✅The property for which
the value is sought
The appraiser does not consider properties on the market. The subject is the property for
which an opinion of value is sought, also called the base.
What is assessment value? - CORRECT ANSWERS✅✅The value the property taxes are
based on
When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace
and the comparable homes do not. He makes a $3,000 upward adjustment on his sales
comparison approach worksheet. The $3,000 adjustment is based on what appraisal
principle? - CORRECT ANSWERS✅✅Contribution
This is the amount the fireplace "contributes" to the value. It is not necessarily the cost to
install the individual item.
"Net income" best describes: - CORRECT ANSWERS✅✅Income after expenses
Expenses such a trash removal, repairs, and maintenance subtracted from gross income
equals net income.
