NC Real Estate Exam Prep Superior School Ch.2 Questions and Answers

NC Real Estate Exam Prep Superior School Ch.2 Questions and Answers The concept by which land would increase automatically along a river or stream is known as: A accretion B littoral rights C avulsion D reliction -Answer-A Accretion is the gradual buildup of land along a river a stream. It increases automatically because the land owner does not have to do anything to gain the increase. It is the opposite of erosion. Which of the following is generally considered real property? A emblements B trade fixtures C a shrub planted in a decorative pot D a perennial shrub planted in the backyard -Answer-D Real property includes the land and all of the appurtenances that go with it. Emblements, the right of the previous owner to harvest crops through the current growing season is not considered part of the land. Both trade fixtures and the shrub in a separate container or pot are considered personal property and not part of the land. The phrase "bundle of legal rights": A is part of the definition of real property B is another name for a legal description C refers to the legal documents used in real estate transactions D refers to the tenant's rights in a lease -Answer-A The transfer of real property includes the transfer of a bundle of rights, including all of the rights, interests and appurtenances that are part of the property. These are referenced by the acronym DEEPC, disposition enjoyment, exclusion, possession and control. A trade fixture is considered: A a fixture B an easement C personalty D a license -Answer-C Typically fixtures are part of the real property and get transferred with the property. Trade fixtures are those items used in a trade and business and they remain personalty. This means the tenant may remove these items so long as they do so before the expiration of the lease. Real property can become personal property by: A severance B purchase C hypothecation D attachment -Answer-A The act of permanently attaching personal property and transforming it into a fixture is called annexation. The act of turning real property into personal property is called severance. A good example would be the trees growing on the property which are considered real property. Severance occurs when they are cut down and severed from the property and they become firewood which is personal property. A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and electrical outlet covers and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction? A none of the items B the draperies and blinds C the hand-painted light switches and electrical outlet covers D the draperies -Answer-D Parties to a transaction are able to specifically contract for certain items to either transfer or remain with the property. The standard NCBA/NCAR purchase contract considers and lists all of the other items as fixtures which are to remain with the property. The draperies are not considered a fixture and the seller may remove them. A business owner rents an empty building to use an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions: A are considered permanent improvements to the property B become the landlord's property once attached to the building C can be legally removed by the tenant at the termination of the lease D can only be removed by the tenan