ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
John owns the dominant estate with an easement appurtenant. John sells the property.
What happens to the easement? - ANSWER It belongs to the buyer.
A commercial tenant's lease will expire at the end of this month. He is currently in the
process of removing his display cases from the shop. What is true? - ANSWER He
can take these trade fixtures as long as he removes them prior to the lease end.
John, Maria and Mark are joint tenants. Mark dies. Maria sells her share to Jane. John and
Jane are: - ANSWER Tenants in common
A surveyor has described a property from a point of beginning 200 feet north on Broad St.
from the oak tree at the intersection of Main St. and Broad St., then 90° east for 100 ft., then
90° north for 50 ft., then 90° west for 100 ft., then 90° south for 50 feet back to the point of
beginning. What type of description is this? - ANSWER Metes and bounds
Joe received payment from his title insurance company to compensate him for a defect in his
title. Subsequently he was awarded a judgment against the seller, and collected the funds
from the seller, to compensate him for the same defect. The title company has claimed the
right to a refund from Joe. What clause in the title policy allows the title company to make
this claim? - ANSWER Subrogation
A buyer who wants to be sure that he is getting good title to a property should rely on: -
ANSWER General warranty deed
1
,An older home has been updated for technology to eliminate what type of depreciation? -
ANSWER functional obsolescence
A broker has listed his own property for sale. Which of the following statements is true? -
ANSWER The broker must always disclose this dual role.
A party inherits a property. He wants to sell it quickly, as he wants the cash. He contacts a
broker to list the property for $300,000. The broker knows that homes in that neighborhood
are selling for $325,000 and more. What should the broker do? - ANSWER Provide
the seller with a CMA and encourage the seller to price it correctly.
A seller has received and accepted an offer on his property with a closing date of November
15th, time is of the essence. Two days before closing, the seller notifies the buyer that he
will be unable to close on the required date but will be able to close 2 days later if the buyer
agrees. At that point this contract is: - ANSWER voidable at the option of the buyer.
Study this one! When does a buyer's offer become a binding contract? -
ANSWER When it is accepted and the acceptance is communicated.
A property where there has been a murder is referred to as: - ANSWER stigmatized
Who would inspect an oil and gas lease for compliance with the law? - ANSWER the
EPS
Study this one! A landlord and tenant negotiate a verbal lease agreement on the phone for
an 8-month term. The tenant later decides not to move in. What term best describes the
lease agreement these two parties had? - ANSWER valid and enforceable
A senior apartment complex has more than 80% of the units occupied by someone 55 years
old or older. There is a vacant apartment. Can they refuse to lease it to a single mother with
a child? - ANSWER Yes.
2
,Which of the following statements about Contract for Deed is FALSE? -
ANSWER Legal title is transferred to the buyer when the agreement is signed.
An agreement allowing a tenant to match or better any purchase offer the landlord receives
before the property will be sold to another is called: - ANSWER a right of first refusal
agreement
Redlining is an illegal practice for: - ANSWER Title companies
Which of the following is an example of illegal commingling? - ANSWER A
broker/landlord deposits tenant security checks in an operating account.
Study this one! Which of the following would not be an example of police power? -
ANSWER deed restrictions
Study this one! John has waterfront property along a navigable river and the right to use
that water. What kind of rights does he have? - ANSWER Riparian rights
The standard policy of title insurance: - ANSWER Protects the buyer
What is the main disadvantage to a lender who chooses to accept deed in lieu of
foreclosure? - ANSWER The lender must accept responsibility for subordinate liens
on the property
Study this one! A buyer has defaulted on a sales contract. The seller has agreed to keep the
earnest money deposit as compensation. What remedy has the seller agreed to? -
ANSWER liquidated damages
3
, A license holder who advertises a listed property as having "the most beautiful view of the
city" is probably: - ANSWER puffing
A buyer's inspection report on a property shows the presence of asbestos on the property.
Which of the following statements about asbestos is FALSE? - ANSWER The owner of
the property must remove the asbestos
A buyer has a signed sales contract and has not yet gone to closing. His interest in the
property is called: - ANSWER equitable title
A sales agent has just attended a seminar on the benefits of using social media in marketing
her client's properties. She is very excited to begin to use all the wonderful ideas that were
presented. In order to advertise her client's properties on social media she will need: -
ANSWER Written permission from the owner
Electronic signatures are the equivalent of handwritten signatures: - ANSWER If
both the buyer and seller agree to their use
Mary, an unlicensed individual, owns a three-family property. She lives in one unit and rents
out the other two. She chooses to discriminate when selecting her tenants. If the services of
a broker are not involved and she does not discriminate in her advertising, she can
discriminate for any reason except: - ANSWER Color/Race
Study this one! A physically handicapped tenant has modified an apartment to meet his
needs at his own expense. His lease is about to expire, and he plans to move. The landlord
wants the apartment restored to its original condition. What is true? - ANSWER The
tenant must restore the apartment at his own expense
Study this one! John owns a residential rental property. He has leased an apartment to a
visually impaired tenant who has a guide dog. John's usual lease agreement has a "no pets
policy" clause. What is true in this situation? - ANSWER John must allow the tenant
to keep the guide dog
4
John owns the dominant estate with an easement appurtenant. John sells the property.
What happens to the easement? - ANSWER It belongs to the buyer.
A commercial tenant's lease will expire at the end of this month. He is currently in the
process of removing his display cases from the shop. What is true? - ANSWER He
can take these trade fixtures as long as he removes them prior to the lease end.
John, Maria and Mark are joint tenants. Mark dies. Maria sells her share to Jane. John and
Jane are: - ANSWER Tenants in common
A surveyor has described a property from a point of beginning 200 feet north on Broad St.
from the oak tree at the intersection of Main St. and Broad St., then 90° east for 100 ft., then
90° north for 50 ft., then 90° west for 100 ft., then 90° south for 50 feet back to the point of
beginning. What type of description is this? - ANSWER Metes and bounds
Joe received payment from his title insurance company to compensate him for a defect in his
title. Subsequently he was awarded a judgment against the seller, and collected the funds
from the seller, to compensate him for the same defect. The title company has claimed the
right to a refund from Joe. What clause in the title policy allows the title company to make
this claim? - ANSWER Subrogation
A buyer who wants to be sure that he is getting good title to a property should rely on: -
ANSWER General warranty deed
1
,An older home has been updated for technology to eliminate what type of depreciation? -
ANSWER functional obsolescence
A broker has listed his own property for sale. Which of the following statements is true? -
ANSWER The broker must always disclose this dual role.
A party inherits a property. He wants to sell it quickly, as he wants the cash. He contacts a
broker to list the property for $300,000. The broker knows that homes in that neighborhood
are selling for $325,000 and more. What should the broker do? - ANSWER Provide
the seller with a CMA and encourage the seller to price it correctly.
A seller has received and accepted an offer on his property with a closing date of November
15th, time is of the essence. Two days before closing, the seller notifies the buyer that he
will be unable to close on the required date but will be able to close 2 days later if the buyer
agrees. At that point this contract is: - ANSWER voidable at the option of the buyer.
Study this one! When does a buyer's offer become a binding contract? -
ANSWER When it is accepted and the acceptance is communicated.
A property where there has been a murder is referred to as: - ANSWER stigmatized
Who would inspect an oil and gas lease for compliance with the law? - ANSWER the
EPS
Study this one! A landlord and tenant negotiate a verbal lease agreement on the phone for
an 8-month term. The tenant later decides not to move in. What term best describes the
lease agreement these two parties had? - ANSWER valid and enforceable
A senior apartment complex has more than 80% of the units occupied by someone 55 years
old or older. There is a vacant apartment. Can they refuse to lease it to a single mother with
a child? - ANSWER Yes.
2
,Which of the following statements about Contract for Deed is FALSE? -
ANSWER Legal title is transferred to the buyer when the agreement is signed.
An agreement allowing a tenant to match or better any purchase offer the landlord receives
before the property will be sold to another is called: - ANSWER a right of first refusal
agreement
Redlining is an illegal practice for: - ANSWER Title companies
Which of the following is an example of illegal commingling? - ANSWER A
broker/landlord deposits tenant security checks in an operating account.
Study this one! Which of the following would not be an example of police power? -
ANSWER deed restrictions
Study this one! John has waterfront property along a navigable river and the right to use
that water. What kind of rights does he have? - ANSWER Riparian rights
The standard policy of title insurance: - ANSWER Protects the buyer
What is the main disadvantage to a lender who chooses to accept deed in lieu of
foreclosure? - ANSWER The lender must accept responsibility for subordinate liens
on the property
Study this one! A buyer has defaulted on a sales contract. The seller has agreed to keep the
earnest money deposit as compensation. What remedy has the seller agreed to? -
ANSWER liquidated damages
3
, A license holder who advertises a listed property as having "the most beautiful view of the
city" is probably: - ANSWER puffing
A buyer's inspection report on a property shows the presence of asbestos on the property.
Which of the following statements about asbestos is FALSE? - ANSWER The owner of
the property must remove the asbestos
A buyer has a signed sales contract and has not yet gone to closing. His interest in the
property is called: - ANSWER equitable title
A sales agent has just attended a seminar on the benefits of using social media in marketing
her client's properties. She is very excited to begin to use all the wonderful ideas that were
presented. In order to advertise her client's properties on social media she will need: -
ANSWER Written permission from the owner
Electronic signatures are the equivalent of handwritten signatures: - ANSWER If
both the buyer and seller agree to their use
Mary, an unlicensed individual, owns a three-family property. She lives in one unit and rents
out the other two. She chooses to discriminate when selecting her tenants. If the services of
a broker are not involved and she does not discriminate in her advertising, she can
discriminate for any reason except: - ANSWER Color/Race
Study this one! A physically handicapped tenant has modified an apartment to meet his
needs at his own expense. His lease is about to expire, and he plans to move. The landlord
wants the apartment restored to its original condition. What is true? - ANSWER The
tenant must restore the apartment at his own expense
Study this one! John owns a residential rental property. He has leased an apartment to a
visually impaired tenant who has a guide dog. John's usual lease agreement has a "no pets
policy" clause. What is true in this situation? - ANSWER John must allow the tenant
to keep the guide dog
4
