PSI Real Estate Salesperson exam 1 with complete solutions

Which of the following would NOT be considered Real Property? 1. Mineral Rights 2. A Leasehold Estate 3. Fixtures 4. Air - Answer- 2. A Leasehold Estate The servient estate in an easement appurtenant is the property 1. owned by the landlord 2. on which the easement is placed 3. owned by the tenant 4. that benefits from the easement - Answer- 2. on which the easement is placed Which of the following statements concerning encumbrances is NOT true 1. All encumbrances are liens 2. All liens are encumbrances 3. Restrictions beneficial to the grantee are encumbrances 4. An easement is a physical encumbrance - Answer- 1. All encumbrances are liens Which of the following is not a specific lien? 1. Mortgage Lien 2. State inheritance tax 3. Real Estate taxes 4. Mechanic's Lien - Answer- 2. State Inheritance tax You have entered into a lease that requires you to pay 20% of the owners expenses. Your lease would be an example of 1. variable lease 2. net lease 3. percentage lease 4. gross lease - Answer- 2. Net lease If a husband and wife own an apartment building and the husband owns an undivided three-fourths interest and the wife owns a one-fourth interest, what type of tenancy exists? 1. Leasehold Estate 2. Joint tenancy 3. Tenancy in common 4. Tenancy by the entirety - Answer- 3. Tenancy in common The highest form of ownership a person may hold in Real Estate is? 1. Life Estate 2. Fee Simple 3. Legal life estate 4. base fee - Answer- 2. Fee simple Two unrelated people own a three-unit apartment building as tenants in common. One wants to sell but the others do not. Which of the following statements describes the legal rights of the party who wants to sell? 1. The party may request a court to partition the building 2. The party may require the co-owner to sell 3. The party may record a lis penden on the property 4. The party may refinance the mortgage in his or her own name, thus eliminating the co-owner's interest in the property - Answer- 1. The party may request a court to partition the building Your aunt died intestate and you inherited her house. The way in which you acquired the title to her house is by: 1. curtsey 2. descent 3. escheat 4. laches - Answer- 2. descent Which of the following statements does NOT correctly describe a legal life estate? 1. During his or her life estate the life tenant is generally answerable to the holder of the future interest. 2. The life tenant may not commit any acts that would permanently injure the property. 3. There may be a reversionary interest. 4. There may be a remainder interest. - Answer- 1. During his or her life estate the life tenant is generally answerable to the holder of the future interest. Which of the following is NOT a leasehold estate? 1. An estate for years 2. Periodic estate 3. Time-Share estate 4. Estate from year to year - Answer- 3. A Time-Share estate You are married and own a house under a form of ownership that prohibits you from selling it without the signature of your spouse. Your form of ownership is LEAST likely to be? 1. in severalty 2. a joint tenancy 3. tenancy in common 4. tenancy by the entirety - Answer- 1. in severalty A state wants to build a publicly owned convention center to attract private development in its largest city. Can the state use eminent domain to acquire the land? 1. No, because private investments aren't allowed. 2. Yes, if just compensation is paid to the owners of the land. 3. No, because eminent domain can only be used for highway expansion. 4. Yes, if the owners hold fee-simple interest in the land. - Answer- 2. Yes, if just compensation is paid to the owners of the land. Which of the following grants zoning authority to municipal governments? 1. Eminent domain 2. State enabling acts 3. Laches 4. Escheat - Answer- 2. State enabling acts The city in which you live has a zoning ordinance. The basis for the city to have such an ordinance is 1. eminent domain 2. escheat 3. police power 4. riparian right - Answer- 3. police power Which of the following terms are NOT related? 1. Freehold Estate - fee simple 2. Grantor- person conveying title 3. Leasehold estate - personal property 4. Police Power- deed restriction - Answer- 4. Police power - deed restriction Strict liability under Superfund means that: 1. each of the individual owners is personally responsible for the damages in whole. 2. the owner is responsible to the injured party without excuse. 3. the liability is not limited to the person who currently owns the property but also includes the people who have owned the site in the past. 4. The owner is not responsible to the injured party unless it can be proved that the owner was aware of the problem. - Answer- 2. the owner is responsible to the injured party without excuse. Which of the following does NOT correctly describe how Real Estate licensees should handle the possibility of hazardous substances on a property being sold? 1. Clients should be asked about the possibility of hazardous substances on the property. 2. Licensees should consider the consequences of potential liability. 3. Licensees should be scrupulous in considering environmental issues. 4. Licensees should not disclose the problem because it might harm the seller. - Answer- 4. Licensees should not disclose the problem because it might harm the seller. Sources of groundwater contamination do NOT include: 1. waste disposal sites 2. underground storage tanks 3. use of pesticides in farming communities 4. radon - Answer- 4. radon Your neighbor has given you revocable permission to go hunting on his farm. You have a (an): 1. leasehold estate 2. easement appurtenant 3. license 4. defeasible fee-estate - Answer- 3. license A claim based on adverse possession of property must NOT be: 1. notorious 2. open 3. hostile 4. secretive - Answer- 4. secretive A man gives his friend the right to go hunting on his property for just one day. This is an example of 1. a license 2. an easement in gross 3. an easement in appurtenance 4. an easement by prescription - Answer- 1. a license A person who receives real property by will is called a 1. trustee 2. devisee 3. testator 4. hypothecator - Answer- 2. a devisee Riparian rights would exist in a 1. condominium on a bay 2. house on a bay 3. hotel whose land abuts a large lake 4. cooperative on a river - Answer- 4. cooperative on a river A developer was able to buy 2 adjoining single family lots for $20,000 each. He combined the lots into one parcel with a value of $90,000. The developers actions reflects the process of 1. accession 2. attachment 3. exchange 4. plottage - Answer- 4. plottage A restaurant opened in a neighborhood and was enjoying substantial profits. Within a year another restaurant was built across the street and resulted in the first restaurant losing in the next year, 30% of its profits. This is an example of the principal of 1. competition 2. conformity 3. highest and best use 4. progression - Answer- 1. competition A meat packing plant has just been built one block from your house. The strong odors are lowering property values in your neighborhood. The loss in value would be classified as: 1. functional obsolescence 2. physical deterioration 3. the principle of change 4. external obsolescense - Answer- 4. external obsolescence In the appraisal of public building an appraiser would use the 1. cost approach 2. income cap approach 3. sales comparison approach 4. gross rent multiplier - Answer- 1. cost approach A four bedroom house with o