PERRY REAL ESTATE LICENSING FINAL EXAM QUESTIONS
COMPLETE WITH 100% VERIFIED ANSWERS
1. Which of the following best defines a fixture in real estate?
A) A movable item temporarily attached to a property
B) Personal property that has been permanently affixed to the land or
building
C) An item of personal property used in a trade or business
D) A temporary structure placed on land with the owner's permission
Correct Answer: B
Rationale: A fixture is personal property that has been permanently
attached to the land or a building, becoming part of the real property.
2. A property owner conveys a life estate to her aunt. Upon the aunt's
death, the property will revert back to the original owner or her heirs.
What is this future interest called?
A) Remainder
B) Reversion
C) Homestead
D) Easement
Correct Answer: B
Rationale: A reversion is the future interest retained by a grantor who
transfers a lesser estate than they own, such as a life estate.
,3. Two individuals own a property as joint tenants. One owner sells
their interest to a third party without the other's consent. What type
of ownership does the third party now have with the remaining
original owner?
A) Joint tenancy
B) Tenancy by the entirety
C) Tenancy in common
D) Severalty
Correct Answer: C
Rationale: When a joint tenant sells their interest, the joint tenancy is
severed, and the new owner takes title as a tenant in common with the
remaining owner.
4. Which of the following is considered a physical characteristic of
land?
A) Immobility
B) Situs
C) Area preference
D) Assemblage
Correct Answer: A
Rationale: Physical characteristics of land include immobility,
indestructibility, and non-homogeneity. Situs and area preference are
economic characteristics.
5. A buyer purchases a property and receives a deed that grants the
highest and most complete form of ownership. What type of estate
has the buyer received?
A) Fee simple determinable
B) Fee simple absolute
C) Life estate
,D) Leasehold estate
Correct Answer: B
Rationale: Fee simple absolute is the highest and most complete form
of real property ownership, lasting indefinitely.
6. A landlord and tenant enter into a lease agreement for one year.
After the lease expires, the tenant remains on the property and the
landlord accepts rent. What type of tenancy has been created?
A) Tenancy for years
B) Periodic tenancy
C) Tenancy at will
D) Tenancy at sufferance
Correct Answer: B
Rationale: A periodic tenancy is created when a lease expires and the
landlord accepts rent from the tenant, renewing the agreement
automatically for a similar period.
7. Which of the following is an economic characteristic of real estate?
A) Indestructibility
B) Non-homogeneity
C) Situs
D) Immobility
Correct Answer: C
Rationale: Situs (location preference) is an economic characteristic of
land. The others are physical characteristics.
8. A property is owned by three siblings as tenants in common. One
sibling dies. What happens to the deceased sibling's share?
A) It is divided equally among the surviving siblings
B) It passes to the surviving siblings through joint tenancy
, C) It passes to the deceased sibling's heirs
D) It reverts to the state
Correct Answer: C
Rationale: Tenants in common have no right of survivorship. The
deceased owner's interest passes to their heirs or according to their
will.
9. What is the primary difference between real property and personal
property?
A) Real property is movable; personal property is immovable
B) Real property is immovable; personal property is movable
C) Real property is always more valuable
D) Personal property includes land and fixtures
Correct Answer: B
Rationale: Real property is defined as land and anything permanently
attached to it, whereas personal property is movable and not
permanently affixed.
10. A property owner grants an easement to a neighbor allowing the
neighbor to cross their land to access a public road. The neighbor pays
for this right. What type of easement is this?
A) Easement by prescription
B) Easement by necessity
C) Easement in gross
D) Easement appurtenant
Correct Answer: D
Rationale: An easement appurtenant benefits a neighboring parcel of
land (dominant tenement) and burdens the servient tenement.
COMPLETE WITH 100% VERIFIED ANSWERS
1. Which of the following best defines a fixture in real estate?
A) A movable item temporarily attached to a property
B) Personal property that has been permanently affixed to the land or
building
C) An item of personal property used in a trade or business
D) A temporary structure placed on land with the owner's permission
Correct Answer: B
Rationale: A fixture is personal property that has been permanently
attached to the land or a building, becoming part of the real property.
2. A property owner conveys a life estate to her aunt. Upon the aunt's
death, the property will revert back to the original owner or her heirs.
What is this future interest called?
A) Remainder
B) Reversion
C) Homestead
D) Easement
Correct Answer: B
Rationale: A reversion is the future interest retained by a grantor who
transfers a lesser estate than they own, such as a life estate.
,3. Two individuals own a property as joint tenants. One owner sells
their interest to a third party without the other's consent. What type
of ownership does the third party now have with the remaining
original owner?
A) Joint tenancy
B) Tenancy by the entirety
C) Tenancy in common
D) Severalty
Correct Answer: C
Rationale: When a joint tenant sells their interest, the joint tenancy is
severed, and the new owner takes title as a tenant in common with the
remaining owner.
4. Which of the following is considered a physical characteristic of
land?
A) Immobility
B) Situs
C) Area preference
D) Assemblage
Correct Answer: A
Rationale: Physical characteristics of land include immobility,
indestructibility, and non-homogeneity. Situs and area preference are
economic characteristics.
5. A buyer purchases a property and receives a deed that grants the
highest and most complete form of ownership. What type of estate
has the buyer received?
A) Fee simple determinable
B) Fee simple absolute
C) Life estate
,D) Leasehold estate
Correct Answer: B
Rationale: Fee simple absolute is the highest and most complete form
of real property ownership, lasting indefinitely.
6. A landlord and tenant enter into a lease agreement for one year.
After the lease expires, the tenant remains on the property and the
landlord accepts rent. What type of tenancy has been created?
A) Tenancy for years
B) Periodic tenancy
C) Tenancy at will
D) Tenancy at sufferance
Correct Answer: B
Rationale: A periodic tenancy is created when a lease expires and the
landlord accepts rent from the tenant, renewing the agreement
automatically for a similar period.
7. Which of the following is an economic characteristic of real estate?
A) Indestructibility
B) Non-homogeneity
C) Situs
D) Immobility
Correct Answer: C
Rationale: Situs (location preference) is an economic characteristic of
land. The others are physical characteristics.
8. A property is owned by three siblings as tenants in common. One
sibling dies. What happens to the deceased sibling's share?
A) It is divided equally among the surviving siblings
B) It passes to the surviving siblings through joint tenancy
, C) It passes to the deceased sibling's heirs
D) It reverts to the state
Correct Answer: C
Rationale: Tenants in common have no right of survivorship. The
deceased owner's interest passes to their heirs or according to their
will.
9. What is the primary difference between real property and personal
property?
A) Real property is movable; personal property is immovable
B) Real property is immovable; personal property is movable
C) Real property is always more valuable
D) Personal property includes land and fixtures
Correct Answer: B
Rationale: Real property is defined as land and anything permanently
attached to it, whereas personal property is movable and not
permanently affixed.
10. A property owner grants an easement to a neighbor allowing the
neighbor to cross their land to access a public road. The neighbor pays
for this right. What type of easement is this?
A) Easement by prescription
B) Easement by necessity
C) Easement in gross
D) Easement appurtenant
Correct Answer: D
Rationale: An easement appurtenant benefits a neighboring parcel of
land (dominant tenement) and burdens the servient tenement.
