Real Estate National Practice Test – A
Review of 350+ Pearson VUE Questions
and Correct Answers with Rationales /
Pearson Vue Real Estate Latest Practice
Test Bank
SECTION 1: PROPERTY OWNERSHIP & ESTATES (Questions
1-40)
1. Which estate represents the highest and most complete form of property
ownership?
• A. Life estate
• B. Leasehold estate
• C. Fee simple defeasible
• D. Fee simple absolute
Rationale: Fee simple absolute is the highest and most complete form of ownership,
granting the owner full rights to possess, use, and dispose of the property without any
limitations or conditions. It is inheritable and lasts forever.
2. A deed states that property is granted "to the Smith family, so long as the
property is used for residential purposes." If the property is later converted to
commercial use, what happens to the estate?
• A. It automatically reverts to the grantor (fee simple determinable)
• B. The grantor has the right to enter and terminate the estate
• C. The grantee retains the property in fee simple absolute
• D. The city condemns the property
,Rationale: This is a fee simple determinable, created by language like "so long as" or
"while." When the condition is violated, the estate automatically reverts to the grantor.
The reversion is known as a possibility of reverter.
3. A grantor conveys property "to the school board, but if the property ceases to
be used as a school, the grantor reserves the right to re-enter and terminate the
estate." The school board owns a:
• A. Fee simple determinable
• B. Life estate
• C. Fee simple subject to condition subsequent
• D. Easement
Rationale: This is a fee simple subject to condition subsequent. Unlike a fee simple
determinable (which automatically reverts), the grantor must actively exercise their right
of re-entry to terminate the estate when the condition is violated.
4. A property owner dies without a will and with no identifiable heirs. The
property will likely be transferred to the state through:
• A. Adverse possession
• B. Escheat
• C. Eminent domain
• D. Condemnation
Rationale: Escheat is the reversion of property to the state when an owner dies intestate
(without a will) and with no legal heirs . This is one of the recognized methods of
acquiring title to real property.
5. The ownership of real property by one individual is called:
• A. Joint tenancy
• B. Tenancy in common
• C. Tenancy in severalty
• D. Community property
Rationale: Tenancy in severalty is sole ownership of property by one person or entity.
"Severalty" indicates that the owner is "severed" or separate from other owners.
6. A married couple owns a property as "tenancy by the entirety." Which of the
following is true?
• A. One spouse can convey their interest without the other's consent
, • B. A creditor of one spouse can place a lien on the property
• C. Neither spouse can convey their interest without the other's consent
• D. Divorce does not affect this form of ownership
Rationale: Tenancy by the entirety is a form of co-ownership available only to married
couples . Each spouse owns the entire property, and neither can separately convey an
interest during the other's lifetime. Divorce automatically converts this to a tenancy in
common.
7. A key difference between joint tenancy and tenancy in common is that joint
tenancy includes:
• A. The right of survivorship
• B. The right to sell without consent
• C. Equal ownership shares only
• D. Partition rights
Rationale: The defining feature of joint tenancy is the right of survivorship. When one
joint tenant dies, their interest automatically passes to the surviving joint tenants, not to
their heirs. Tenancy in common does not include survivorship rights.
8. A father and daughter own a property as joint tenants. The father dies. The
daughter now owns the property:
• A. In severalty
• B. As a tenant in common with the father's heirs
• C. In joint tenancy with herself
• D. As a life tenant
Rationale: The right of survivorship means the daughter inherits the father's share
automatically. The daughter then owns the entire property in severalty (sole ownership).
9. Which of the following is NOT a requirement for creating a valid joint tenancy?
• A. Unity of time
• B. Unity of title
• C. Unity of interest
• D. Unity of possession
Rationale: Wait—unity of possession IS a requirement for joint tenancy. The four unities
are: time, title, interest, and possession. If these are not present when the estate is
created, it will be a tenancy in common. The question asks for what is NOT a
requirement—all four are required.
, 10. A 60-year-old woman owns a property and grants a life estate to her 40-year-
old son. The son's life estate will automatically terminate when:
• A. The son moves out
• B. The mother sells the property
• C. The son reaches age 65
• D. The son dies
Rationale: A traditional life estate is measured by the lifetime of the grantee (the son).
Upon the son's death, the property passes to the remainderman designated by the
mother.
11. A property owner grants a life estate to her sister, with the remainder to her
nephew. The sister dies, and the nephew has not yet reached the age of 18. The
property:
• A. Passes to the sister's heirs
• B. Passes to the nephew
• C. Is held by a guardian until the nephew turns 18
• D. Passes to the state
Rationale: The nephew's remainder interest is a vested remainder. The property passes
to him immediately upon the sister's death, regardless of age.
12. An owner grants a life estate to a friend for the friend's lifetime and specifies
that upon the friend's death, the property will go to the owner's son. The son's
interest is called a(n):
• A. Reversion
• B. Remainder
• C. Easement
• D. Executory interest
Rationale: A remainder is a future interest that takes effect after a prior estate (the life
estate) ends. Because the son's interest is designated in the same conveyance, it is a
remainder, not a reversion.
13. An owner grants a life estate to a friend and does not name a remainderman.
Upon the friend's death, the property will revert to the original owner. The
original owner's interest is called a:
• A. Reversion
• B. Remainder
Review of 350+ Pearson VUE Questions
and Correct Answers with Rationales /
Pearson Vue Real Estate Latest Practice
Test Bank
SECTION 1: PROPERTY OWNERSHIP & ESTATES (Questions
1-40)
1. Which estate represents the highest and most complete form of property
ownership?
• A. Life estate
• B. Leasehold estate
• C. Fee simple defeasible
• D. Fee simple absolute
Rationale: Fee simple absolute is the highest and most complete form of ownership,
granting the owner full rights to possess, use, and dispose of the property without any
limitations or conditions. It is inheritable and lasts forever.
2. A deed states that property is granted "to the Smith family, so long as the
property is used for residential purposes." If the property is later converted to
commercial use, what happens to the estate?
• A. It automatically reverts to the grantor (fee simple determinable)
• B. The grantor has the right to enter and terminate the estate
• C. The grantee retains the property in fee simple absolute
• D. The city condemns the property
,Rationale: This is a fee simple determinable, created by language like "so long as" or
"while." When the condition is violated, the estate automatically reverts to the grantor.
The reversion is known as a possibility of reverter.
3. A grantor conveys property "to the school board, but if the property ceases to
be used as a school, the grantor reserves the right to re-enter and terminate the
estate." The school board owns a:
• A. Fee simple determinable
• B. Life estate
• C. Fee simple subject to condition subsequent
• D. Easement
Rationale: This is a fee simple subject to condition subsequent. Unlike a fee simple
determinable (which automatically reverts), the grantor must actively exercise their right
of re-entry to terminate the estate when the condition is violated.
4. A property owner dies without a will and with no identifiable heirs. The
property will likely be transferred to the state through:
• A. Adverse possession
• B. Escheat
• C. Eminent domain
• D. Condemnation
Rationale: Escheat is the reversion of property to the state when an owner dies intestate
(without a will) and with no legal heirs . This is one of the recognized methods of
acquiring title to real property.
5. The ownership of real property by one individual is called:
• A. Joint tenancy
• B. Tenancy in common
• C. Tenancy in severalty
• D. Community property
Rationale: Tenancy in severalty is sole ownership of property by one person or entity.
"Severalty" indicates that the owner is "severed" or separate from other owners.
6. A married couple owns a property as "tenancy by the entirety." Which of the
following is true?
• A. One spouse can convey their interest without the other's consent
, • B. A creditor of one spouse can place a lien on the property
• C. Neither spouse can convey their interest without the other's consent
• D. Divorce does not affect this form of ownership
Rationale: Tenancy by the entirety is a form of co-ownership available only to married
couples . Each spouse owns the entire property, and neither can separately convey an
interest during the other's lifetime. Divorce automatically converts this to a tenancy in
common.
7. A key difference between joint tenancy and tenancy in common is that joint
tenancy includes:
• A. The right of survivorship
• B. The right to sell without consent
• C. Equal ownership shares only
• D. Partition rights
Rationale: The defining feature of joint tenancy is the right of survivorship. When one
joint tenant dies, their interest automatically passes to the surviving joint tenants, not to
their heirs. Tenancy in common does not include survivorship rights.
8. A father and daughter own a property as joint tenants. The father dies. The
daughter now owns the property:
• A. In severalty
• B. As a tenant in common with the father's heirs
• C. In joint tenancy with herself
• D. As a life tenant
Rationale: The right of survivorship means the daughter inherits the father's share
automatically. The daughter then owns the entire property in severalty (sole ownership).
9. Which of the following is NOT a requirement for creating a valid joint tenancy?
• A. Unity of time
• B. Unity of title
• C. Unity of interest
• D. Unity of possession
Rationale: Wait—unity of possession IS a requirement for joint tenancy. The four unities
are: time, title, interest, and possession. If these are not present when the estate is
created, it will be a tenancy in common. The question asks for what is NOT a
requirement—all four are required.
, 10. A 60-year-old woman owns a property and grants a life estate to her 40-year-
old son. The son's life estate will automatically terminate when:
• A. The son moves out
• B. The mother sells the property
• C. The son reaches age 65
• D. The son dies
Rationale: A traditional life estate is measured by the lifetime of the grantee (the son).
Upon the son's death, the property passes to the remainderman designated by the
mother.
11. A property owner grants a life estate to her sister, with the remainder to her
nephew. The sister dies, and the nephew has not yet reached the age of 18. The
property:
• A. Passes to the sister's heirs
• B. Passes to the nephew
• C. Is held by a guardian until the nephew turns 18
• D. Passes to the state
Rationale: The nephew's remainder interest is a vested remainder. The property passes
to him immediately upon the sister's death, regardless of age.
12. An owner grants a life estate to a friend for the friend's lifetime and specifies
that upon the friend's death, the property will go to the owner's son. The son's
interest is called a(n):
• A. Reversion
• B. Remainder
• C. Easement
• D. Executory interest
Rationale: A remainder is a future interest that takes effect after a prior estate (the life
estate) ends. Because the son's interest is designated in the same conveyance, it is a
remainder, not a reversion.
13. An owner grants a life estate to a friend and does not name a remainderman.
Upon the friend's death, the property will revert to the original owner. The
original owner's interest is called a:
• A. Reversion
• B. Remainder
