ALABAMA REAL ESTATE LICENSE EXAM
PREP TEST BANK 2 – 2026/2027 | 250+
PRACTICE QUESTIONS, CORRECT
ANSWERS & DETAILED RATIONALES |
ALABAMA SALESPERSON LICENSING
EXAM PREPARATION
ALABAMA REAL ESTATE
LICENSE EXAM PREP — TEST
BANK 2
250 Practice Questions with Answers &
Rationales
Questions 1–50: Property Ownership, Land & Legal Descriptions
1. Which characteristic distinguishes real property from personal
property?
A. Real property is always movable
B. Real property is permanently attached to land
C. Personal property is always attached to land
D. Personal property cannot be transferred
Answer: B. Real property is permanently attached to land.
Rationale: Real property consists of land and items permanently
attached to it, while personal property is generally movable.
2. Which item is most likely considered a fixture?
A. Dining table
B. Area rug
C. Built-in dishwasher
D. Television
,Answer: C. Built-in dishwasher.
Rationale: A fixture is personal property that has become attached to
real property.
3. What is the legal process by which personal property becomes
a fixture?
A. Severance
B. Attachment
C. Alienation
D. Accession
Answer: B. Attachment.
Rationale: Attachment is the process of physically or constructively
affixing personal property to real property.
4. A tenant installs equipment specifically for operating a
business. The equipment is generally considered a:
A. Lien
B. Trade fixture
C. Freehold estate
D. Chattel real
Answer: B. Trade fixture.
Rationale: Trade fixtures are items installed by a tenant for business
purposes and are generally removable by the tenant subject to the
lease.
5. What is severance?
A. Attaching personal property to land
B. Removing an item from real property
C. Recording a deed
D. Creating an easement
Answer: B. Removing an item from real property.
Rationale: Severance converts an item that was part of the real
property into personal property.
6. Which is a physical characteristic of real property?
A. Scarcity
,B. Situs
C. Immobility
D. Utility
Answer: C. Immobility.
Rationale: Immobility means land cannot be physically moved from
one location to another.
7. Which is an economic characteristic of real property?
A. Indestructibility
B. Immobility
C. Scarcity
D. Non-homogeneity
Answer: C. Scarcity.
Rationale: Scarcity is an economic characteristic because land
availability is limited.
8. What does situs refer to?
A. The legal description of property
B. The location preference associated with property
C. The physical condition of a building
D. The ownership history
Answer: B. The location preference associated with property.
Rationale: Situs refers to the preference people have for particular
locations.
9. Which principle recognizes that each parcel of land is
considered unique?
A. Scarcity
B. Non-homogeneity
C. Liquidity
D. Substitution
Answer: B. Non-homogeneity.
Rationale: Land parcels differ in location, size, shape, improvements,
and other characteristics.
, 10. What does the term “bundle of rights” describe?
A. Government powers over land
B. Rights associated with ownership of real property
C. Rights held only by lenders
D. Rights belonging exclusively to tenants
Answer: B. Rights associated with ownership of real property.
Rationale: Ownership generally includes rights such as possession,
control, enjoyment, exclusion, and disposition.
11. Which right allows an owner to sell property?
A. Exclusion
B. Disposition
C. Possession
D. Enjoyment
Answer: B. Disposition.
Rationale: The right of disposition allows an owner to transfer or
otherwise dispose of the property.
12. Which government power allows property to be taken for a
public purpose with compensation?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: C. Eminent domain.
Rationale: Eminent domain permits government acquisition of private
property for a public use or purpose subject to applicable
compensation requirements.
13. What is escheat?
A. Government acquisition when an owner dies without qualifying
heirs
B. Government zoning authority
C. Property taxation
D. Mortgage foreclosure
PREP TEST BANK 2 – 2026/2027 | 250+
PRACTICE QUESTIONS, CORRECT
ANSWERS & DETAILED RATIONALES |
ALABAMA SALESPERSON LICENSING
EXAM PREPARATION
ALABAMA REAL ESTATE
LICENSE EXAM PREP — TEST
BANK 2
250 Practice Questions with Answers &
Rationales
Questions 1–50: Property Ownership, Land & Legal Descriptions
1. Which characteristic distinguishes real property from personal
property?
A. Real property is always movable
B. Real property is permanently attached to land
C. Personal property is always attached to land
D. Personal property cannot be transferred
Answer: B. Real property is permanently attached to land.
Rationale: Real property consists of land and items permanently
attached to it, while personal property is generally movable.
2. Which item is most likely considered a fixture?
A. Dining table
B. Area rug
C. Built-in dishwasher
D. Television
,Answer: C. Built-in dishwasher.
Rationale: A fixture is personal property that has become attached to
real property.
3. What is the legal process by which personal property becomes
a fixture?
A. Severance
B. Attachment
C. Alienation
D. Accession
Answer: B. Attachment.
Rationale: Attachment is the process of physically or constructively
affixing personal property to real property.
4. A tenant installs equipment specifically for operating a
business. The equipment is generally considered a:
A. Lien
B. Trade fixture
C. Freehold estate
D. Chattel real
Answer: B. Trade fixture.
Rationale: Trade fixtures are items installed by a tenant for business
purposes and are generally removable by the tenant subject to the
lease.
5. What is severance?
A. Attaching personal property to land
B. Removing an item from real property
C. Recording a deed
D. Creating an easement
Answer: B. Removing an item from real property.
Rationale: Severance converts an item that was part of the real
property into personal property.
6. Which is a physical characteristic of real property?
A. Scarcity
,B. Situs
C. Immobility
D. Utility
Answer: C. Immobility.
Rationale: Immobility means land cannot be physically moved from
one location to another.
7. Which is an economic characteristic of real property?
A. Indestructibility
B. Immobility
C. Scarcity
D. Non-homogeneity
Answer: C. Scarcity.
Rationale: Scarcity is an economic characteristic because land
availability is limited.
8. What does situs refer to?
A. The legal description of property
B. The location preference associated with property
C. The physical condition of a building
D. The ownership history
Answer: B. The location preference associated with property.
Rationale: Situs refers to the preference people have for particular
locations.
9. Which principle recognizes that each parcel of land is
considered unique?
A. Scarcity
B. Non-homogeneity
C. Liquidity
D. Substitution
Answer: B. Non-homogeneity.
Rationale: Land parcels differ in location, size, shape, improvements,
and other characteristics.
, 10. What does the term “bundle of rights” describe?
A. Government powers over land
B. Rights associated with ownership of real property
C. Rights held only by lenders
D. Rights belonging exclusively to tenants
Answer: B. Rights associated with ownership of real property.
Rationale: Ownership generally includes rights such as possession,
control, enjoyment, exclusion, and disposition.
11. Which right allows an owner to sell property?
A. Exclusion
B. Disposition
C. Possession
D. Enjoyment
Answer: B. Disposition.
Rationale: The right of disposition allows an owner to transfer or
otherwise dispose of the property.
12. Which government power allows property to be taken for a
public purpose with compensation?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: C. Eminent domain.
Rationale: Eminent domain permits government acquisition of private
property for a public use or purpose subject to applicable
compensation requirements.
13. What is escheat?
A. Government acquisition when an owner dies without qualifying
heirs
B. Government zoning authority
C. Property taxation
D. Mortgage foreclosure
