ROCKWELL FUNDAMENTAL PRACTICE EXAM
QUESTIONS AND ANSWERS RATED A+
✔✔A security that is required to be registered by federal law must be registered with
the: - ✔✔Securities and Exchange Commission
✔✔The highest and most complete form of ownership, representing the whole "bundle
of rights," is called: - ✔✔a fee simple absolute
✔✔Like an estate for years, a periodic tenancy: - ✔✔is assignable unless assignment is
prohibited by the terms of the lease agreement
✔✔If A grants a parcel of property to B for the life of C, then: - ✔✔If A grants a parcel of
property to B for the life of C, then:
✔✔Property is owned in severalty when: - ✔✔one person or entity is the sole owner
✔✔In a condominium: - ✔✔each unit is separately owned, but the unit owners share
ownership of the common areas as tenants in common
✔✔Which of the following statements about a lease is true? - ✔✔It is both a contract
and an instrument used to transfer an interest in land.
✔✔A freehold estate whose duration is limited to the lifetime of a specified person is
called: - ✔✔a life estate
✔✔Two unmarried persons take title together in the same deed with no mention of how
they are to hold title. Under the circumstances, it is presumed that they have taken title
as: - ✔✔tenants in common
✔✔When property is held in joint tenancy, upon the death of one of the joint tenants, the
deceased tenant's interest in the property automatically: - ✔✔passes to the other joint
tenant(s)
✔✔Which of the following would be considered community property, rather than
separate property? - ✔✔A house purchased after marriage, paid for using money
earned by the wife at her job
✔✔Kay leases a cabin in the mountains from July 15 to August 30. This is an example
of a: - ✔✔term tenancy
,✔✔If a tenant who came into possession under a valid lease holds over without the
landlord's permission after the lease has expired, it's called: - ✔✔a tenancy at
sufferance
✔✔K purchases the house next door to hers, then deeds it to her mother for her
mother's life, specifying that it will belong to K after her mother's death. This is a: -
✔✔life estate with a reversionary interest
✔✔Title to a city park is most likely held: - ✔✔in severalty
✔✔A tenancy for a fixed term is called: - ✔✔an estate for years
✔✔Which of the following is considered community property in Washington? -
✔✔Property a wife purchased with wages that she earned during her marriage
✔✔A condominium owner leased his unit to a tenant. The interest acquired by the
tenant is called a/an: - ✔✔leasehold estate
✔✔Which of the following would be classified as personal property? - ✔✔Lease
✔✔Tenancy in common always involves: - ✔✔unity of possession
✔✔Two friends purchased real property together with the provision that, in the event of
the death of one of the friends, the other would own the entire property. How did they
take title? - ✔✔Joint tenancy
✔✔When a fee simple owner transfers title by deed, it is presumed that the new owner
(the grantee) receives: - ✔✔a fee simple absolute
✔✔An estate is either: - ✔✔a freehold or a leasehold
✔✔T deeds her home to B for B's lifetime, with the provision that title will pass to C
when B dies. C is referred to as: - ✔✔a remainderman --- A remainderman holds a
future interest, called an estate in remainder, as long as the measuring life remains
alive. On the death of the measuring life, title passes to the remainderman in fee simple.
✔✔An interest in land is called an "estate" if it: - ✔✔is or may become possessory ---
The main characteristic of an estate is that it is possessory.
✔✔A condominium owner fails to pay property taxes. This could result in a: - ✔✔loss of
title of that person's unit only ---- A unit owner's interest in a condominium is separate
from the interests held by all other owners in the project. His failure to pay taxes or a
,mortgage payment will result in a lien, and possible foreclosure, against his interest
only.
✔✔At the end of the period, a periodic tenancy automatically: - ✔✔renews itself unless
one of the parties gives proper notice of termination ------- A periodic tenancy renews
itself at the end of each rental period, unless properly terminated by one of the parties.
(Just cause may be required for the landlord to terminate a residential tenancy.)
✔✔Who makes decisions affecting a particular condominium complex? - ✔✔Association
of unit owners
✔✔When a corporation owns property, title is held: - ✔✔in severalty, in the corporation's
name ---- A corporation is an "artificial person," and as a single entity, owns property in
severalty.
✔✔A leasehold estate: - ✔✔gives the tenant the right of exclusive possession =---- A
leasehold is a possessory estate that lasts for a limited amount of time.
✔✔To be valid, a will generally must be: - ✔✔witnessed by at least two competent
witnesses ------A will must be in writing, signed by the testator, and witnessed by two or
more competent people.
✔✔A valid deed must contain: - ✔✔an adequate description of the property
✔✔The deed that creates the least liability for the grantor is the: - ✔✔quitclaim deed ---
Since there are no warranties in a quitclaim deed, signing it creates no liability for the
grantor.
✔✔An extended coverage title insurance policy covers all of the problems a standard
coverage policy does, plus: - ✔✔problems that should be revealed by a property
inspection
✔✔When a grantor swears before a notary public that her signature on the deed is
genuine and voluntary, it is called: - ✔✔acknowledgment
✔✔To acquire marketable title, an adverse possessor may have to: - ✔✔file a quiet title
action --- A quiet title action is a lawsuit to determine the ownership of property. After
fulfilling the requirements for adverse possession, the adverse possessor often has to
file a quiet title action to make her title marketable.
✔✔An adverse possessor's use and possession of the land must be: - ✔✔open and
notorious
, ✔✔The covenants in a warranty deed warrant against: - ✔✔title defects that arose
either before or during the grantor's period of ownership
✔✔A home was purchased and then later resold by a third-party relocation company.
Which type of deed would they use in order to make no assurances about defects that
may have existed before they obtained title? - ✔✔Special warranty deed --- A special
warranty deed makes no assurances about title defects that may have existed before
the grantor obtained title, only those that arose during the grantor's ownership.
✔✔To remove a cloud from the title of your property, you would most likely obtain a/an:
- ✔✔quitclaim deed -- A quitclaim deed can be used to remove a cloud on title. If
someone who has a possible claim against the title executes a quitclaim deed in favor
of the property owner, that releases any interest that person may have and clears the
owner's title.
✔✔In a typical real estate transaction, when does the title pass to the purchaser? -
✔✔Upon delivery and acceptance of the deed --- Title transfers upon delivery and
acceptance of the deed, which occurs when the transaction closes. (Possession may be
transferred before or after the title.)
✔✔In a title insurance policy, the title company: - ✔✔agrees to indemnify the policy
holder against losses due to defects covered by the policy
✔✔Who benefits the most from recording a warranty deed? - ✔✔Grantee -- The grantee
is the one who has acquired an interest in the land, and she is the one who benefits the
most from recording the deed to provide constructive (legal) notice of that interest.
✔✔The usual reason for using a quitclaim deed is to: - ✔✔cure clouds on the title --
Quitclaim deeds are used to cure clouds on title. Unlike warranty deeds, quitclaim
deeds do not convey after-acquired title and they do not contain any warranties.
✔✔The mortgagee's title insurance policy protects the: - ✔✔lender
✔✔Title insurance policies never protect a property owner from losses due to: -
✔✔governmental action -- No type of title insurance policy covers condemnation or
other government actions.
✔✔Title to land is passed from the government to a private party with a document called
a/an: - ✔✔patent - The government uses a patent to transfer title to a private party.
✔✔A grantee who fails to record his or her deed: - ✔✔could lose title to a subsequent
good faith purchaser
QUESTIONS AND ANSWERS RATED A+
✔✔A security that is required to be registered by federal law must be registered with
the: - ✔✔Securities and Exchange Commission
✔✔The highest and most complete form of ownership, representing the whole "bundle
of rights," is called: - ✔✔a fee simple absolute
✔✔Like an estate for years, a periodic tenancy: - ✔✔is assignable unless assignment is
prohibited by the terms of the lease agreement
✔✔If A grants a parcel of property to B for the life of C, then: - ✔✔If A grants a parcel of
property to B for the life of C, then:
✔✔Property is owned in severalty when: - ✔✔one person or entity is the sole owner
✔✔In a condominium: - ✔✔each unit is separately owned, but the unit owners share
ownership of the common areas as tenants in common
✔✔Which of the following statements about a lease is true? - ✔✔It is both a contract
and an instrument used to transfer an interest in land.
✔✔A freehold estate whose duration is limited to the lifetime of a specified person is
called: - ✔✔a life estate
✔✔Two unmarried persons take title together in the same deed with no mention of how
they are to hold title. Under the circumstances, it is presumed that they have taken title
as: - ✔✔tenants in common
✔✔When property is held in joint tenancy, upon the death of one of the joint tenants, the
deceased tenant's interest in the property automatically: - ✔✔passes to the other joint
tenant(s)
✔✔Which of the following would be considered community property, rather than
separate property? - ✔✔A house purchased after marriage, paid for using money
earned by the wife at her job
✔✔Kay leases a cabin in the mountains from July 15 to August 30. This is an example
of a: - ✔✔term tenancy
,✔✔If a tenant who came into possession under a valid lease holds over without the
landlord's permission after the lease has expired, it's called: - ✔✔a tenancy at
sufferance
✔✔K purchases the house next door to hers, then deeds it to her mother for her
mother's life, specifying that it will belong to K after her mother's death. This is a: -
✔✔life estate with a reversionary interest
✔✔Title to a city park is most likely held: - ✔✔in severalty
✔✔A tenancy for a fixed term is called: - ✔✔an estate for years
✔✔Which of the following is considered community property in Washington? -
✔✔Property a wife purchased with wages that she earned during her marriage
✔✔A condominium owner leased his unit to a tenant. The interest acquired by the
tenant is called a/an: - ✔✔leasehold estate
✔✔Which of the following would be classified as personal property? - ✔✔Lease
✔✔Tenancy in common always involves: - ✔✔unity of possession
✔✔Two friends purchased real property together with the provision that, in the event of
the death of one of the friends, the other would own the entire property. How did they
take title? - ✔✔Joint tenancy
✔✔When a fee simple owner transfers title by deed, it is presumed that the new owner
(the grantee) receives: - ✔✔a fee simple absolute
✔✔An estate is either: - ✔✔a freehold or a leasehold
✔✔T deeds her home to B for B's lifetime, with the provision that title will pass to C
when B dies. C is referred to as: - ✔✔a remainderman --- A remainderman holds a
future interest, called an estate in remainder, as long as the measuring life remains
alive. On the death of the measuring life, title passes to the remainderman in fee simple.
✔✔An interest in land is called an "estate" if it: - ✔✔is or may become possessory ---
The main characteristic of an estate is that it is possessory.
✔✔A condominium owner fails to pay property taxes. This could result in a: - ✔✔loss of
title of that person's unit only ---- A unit owner's interest in a condominium is separate
from the interests held by all other owners in the project. His failure to pay taxes or a
,mortgage payment will result in a lien, and possible foreclosure, against his interest
only.
✔✔At the end of the period, a periodic tenancy automatically: - ✔✔renews itself unless
one of the parties gives proper notice of termination ------- A periodic tenancy renews
itself at the end of each rental period, unless properly terminated by one of the parties.
(Just cause may be required for the landlord to terminate a residential tenancy.)
✔✔Who makes decisions affecting a particular condominium complex? - ✔✔Association
of unit owners
✔✔When a corporation owns property, title is held: - ✔✔in severalty, in the corporation's
name ---- A corporation is an "artificial person," and as a single entity, owns property in
severalty.
✔✔A leasehold estate: - ✔✔gives the tenant the right of exclusive possession =---- A
leasehold is a possessory estate that lasts for a limited amount of time.
✔✔To be valid, a will generally must be: - ✔✔witnessed by at least two competent
witnesses ------A will must be in writing, signed by the testator, and witnessed by two or
more competent people.
✔✔A valid deed must contain: - ✔✔an adequate description of the property
✔✔The deed that creates the least liability for the grantor is the: - ✔✔quitclaim deed ---
Since there are no warranties in a quitclaim deed, signing it creates no liability for the
grantor.
✔✔An extended coverage title insurance policy covers all of the problems a standard
coverage policy does, plus: - ✔✔problems that should be revealed by a property
inspection
✔✔When a grantor swears before a notary public that her signature on the deed is
genuine and voluntary, it is called: - ✔✔acknowledgment
✔✔To acquire marketable title, an adverse possessor may have to: - ✔✔file a quiet title
action --- A quiet title action is a lawsuit to determine the ownership of property. After
fulfilling the requirements for adverse possession, the adverse possessor often has to
file a quiet title action to make her title marketable.
✔✔An adverse possessor's use and possession of the land must be: - ✔✔open and
notorious
, ✔✔The covenants in a warranty deed warrant against: - ✔✔title defects that arose
either before or during the grantor's period of ownership
✔✔A home was purchased and then later resold by a third-party relocation company.
Which type of deed would they use in order to make no assurances about defects that
may have existed before they obtained title? - ✔✔Special warranty deed --- A special
warranty deed makes no assurances about title defects that may have existed before
the grantor obtained title, only those that arose during the grantor's ownership.
✔✔To remove a cloud from the title of your property, you would most likely obtain a/an:
- ✔✔quitclaim deed -- A quitclaim deed can be used to remove a cloud on title. If
someone who has a possible claim against the title executes a quitclaim deed in favor
of the property owner, that releases any interest that person may have and clears the
owner's title.
✔✔In a typical real estate transaction, when does the title pass to the purchaser? -
✔✔Upon delivery and acceptance of the deed --- Title transfers upon delivery and
acceptance of the deed, which occurs when the transaction closes. (Possession may be
transferred before or after the title.)
✔✔In a title insurance policy, the title company: - ✔✔agrees to indemnify the policy
holder against losses due to defects covered by the policy
✔✔Who benefits the most from recording a warranty deed? - ✔✔Grantee -- The grantee
is the one who has acquired an interest in the land, and she is the one who benefits the
most from recording the deed to provide constructive (legal) notice of that interest.
✔✔The usual reason for using a quitclaim deed is to: - ✔✔cure clouds on the title --
Quitclaim deeds are used to cure clouds on title. Unlike warranty deeds, quitclaim
deeds do not convey after-acquired title and they do not contain any warranties.
✔✔The mortgagee's title insurance policy protects the: - ✔✔lender
✔✔Title insurance policies never protect a property owner from losses due to: -
✔✔governmental action -- No type of title insurance policy covers condemnation or
other government actions.
✔✔Title to land is passed from the government to a private party with a document called
a/an: - ✔✔patent - The government uses a patent to transfer title to a private party.
✔✔A grantee who fails to record his or her deed: - ✔✔could lose title to a subsequent
good faith purchaser
