Real Estate Review Points-Questions with Correct Answers/
Verified/ 100% Pass
What does PETE stand for? - ✔️✔️Police Power, Eminent Domain, Taxation, Escheat
What is Escheat? - ✔️✔️Abandonment (dying with no will and no heirs with the property being
taken by the state government)
How is LTV calculated? - ✔️✔️Loan amount divided by sale price or appraised value (whichever is
lower) = LTV
What is Eminent domain? - ✔️✔️It is the government taking private property for public good.
What does a title insurance policy list? - ✔️✔️All recorded defects against the title. It just covers
issues that have been recorded.
What does a standard title insurance policy insure against? - ✔️✔️Any recorded title defects or
leins.
What are some things generally covered under an extended title policy? - ✔️✔️Water rights,
questions of survey and adverse possession claims.
What does a standard title insurance policy cover? - ✔️✔️Recorded title defects and liens
What documents would be a condensed history of all records that affect the title? - ✔️✔️An
abstract
What is an abstract? - ✔️✔️A history of all recorded documents that affect the title.
What is a survey used for? - ✔️✔️To find boundaries and check for encroachments.
What is an affidavit of title? - ✔️✔️A sworn statement concerning the title.
,What is a chain of title? - ✔️✔️A list of all owners.
What is a special assessment tax? And what happens if it's not paid? - ✔️✔️It is a real estate tax
and if not paid, the property could be auctioned off.
What is Ad valorem? - ✔️✔️Ad valorem tax is a tax whose amount is based on the value of a
transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales
tax or value-added tax. Another word for
property taxes
What are Ad valorem taxes for? - ✔️✔️General assessment tax, not a special assessment tax.
How are special assessment taxes paid? - ✔️✔️They are normally paid each year for a certain
number of years by the owners of the properties that have been improved.
What do special assessment taxes cover and what do general assessment taxes cover? -
✔️✔️Special assessment taxes are normally to cover the cost of sewers and sidewalks. General
assessment taxes are to cover public good items such as police and fire protection.
What deals with safety in construction? - ✔️✔️Building codes.
What is a tax on the land plus improvements? - ✔️✔️General assessment tax. (The more value (ad
valorem) in the real property, the more one pays in taxes.
What is used to keep things in order such as zoning and building codes? - ✔️✔️Police power.
What is the ability of the government to tax private property? - ✔️✔️Taxation
What word describes Escheat? - ✔️✔️Abandonment
What does TAR stand for? - ✔️✔️TAX, Assessed Value, Rate. As a whole, it basically means taxes.
Test for intent (Method of Fixtures) - ✔️✔️Attachment, Adaptation, Agreement
,Which of the following describes an encroachment? Liquid asset, form of trespass, variance, buffer
zone - ✔️✔️Form of trespass
An estate is... - ✔️✔️The right of ownership.
What rights do I have with Fee Simple Absolute? - ✔️✔️Absolutely ALL the rights.
How long does Fee Simple Absolute last? - ✔️✔️Forever
What rights do I have with Fee Simple Defeasable? - ✔️✔️A fee simple defeasible is a conveyance
of property that has conditions placed on it. The holder of a fee simple defeasible possesses the
property as a fee simple subject to that condition. If the condition is violated or not met, then the
property will either go back to the original grantor or a specified third party.
How long does a Life Estate last? - ✔️✔️For the life of the grantee.
What happens when grantee of Life Estate dies? - ✔️✔️Property reverts back to Grantor or third
party (remainderman)
Which estate can there exist a Remainderman? - ✔️✔️A life estate
How many Freehold Estates are there and what are they? - ✔️✔️There are 3 freehold estates.
They are: 1. Fee Simple or Fee Simple Absolute
2. Fee SImple Defeasable
3. Life Estate
Upon the death of the life tenant, the estate returns to... - ✔️✔️Fee Simple Absolute.
The Grantor or the Remainderman now owns the property in Fee SImple Absolute.
A life estate is ____________________ but generally not inheritable. - ✔️✔️Transferable
, A life estate is transferable but generally not __________________. - ✔️✔️Inheritable
How many leasehold estates are there and what are they? - ✔️✔️There are 4 Leasehold Estates.
They are: 1. Estate for Years
2. Periodic Estate
3. Estate at Will
4. Estate at Sufferance
What interest does a tenant have in the property? - ✔️✔️Leasehold
What interest does a landlord have in the property? - ✔️✔️Lease fee
What is an Estate at Sufferance? - ✔️✔️Landlord is "suffering" because tenant hasn't paid rent and
refuses to leave so now an eviction is necessary to get tenant off the property. The tenant is
insufferable.
What is an Estate for Years? - ✔️✔️An estate which lasts a definite amount of time. Has an
expiration. This is the most common type of Leasehold estate.
What are two ways the government can acquire privately held land? - ✔️✔️Eminent domain &
Escheat
An estate that lasts only so long as a specified condition is met is known as a - ✔️✔️Qualified Fee
An irrevocable right to use the lands of another is called? - ✔️✔️An easement
A holder of a freehold estate has rights of... - ✔️✔️Ownership
Which estate usually does NOT terminate upon the death of the holder of the estate? - ✔️✔️Estate
for years
Verified/ 100% Pass
What does PETE stand for? - ✔️✔️Police Power, Eminent Domain, Taxation, Escheat
What is Escheat? - ✔️✔️Abandonment (dying with no will and no heirs with the property being
taken by the state government)
How is LTV calculated? - ✔️✔️Loan amount divided by sale price or appraised value (whichever is
lower) = LTV
What is Eminent domain? - ✔️✔️It is the government taking private property for public good.
What does a title insurance policy list? - ✔️✔️All recorded defects against the title. It just covers
issues that have been recorded.
What does a standard title insurance policy insure against? - ✔️✔️Any recorded title defects or
leins.
What are some things generally covered under an extended title policy? - ✔️✔️Water rights,
questions of survey and adverse possession claims.
What does a standard title insurance policy cover? - ✔️✔️Recorded title defects and liens
What documents would be a condensed history of all records that affect the title? - ✔️✔️An
abstract
What is an abstract? - ✔️✔️A history of all recorded documents that affect the title.
What is a survey used for? - ✔️✔️To find boundaries and check for encroachments.
What is an affidavit of title? - ✔️✔️A sworn statement concerning the title.
,What is a chain of title? - ✔️✔️A list of all owners.
What is a special assessment tax? And what happens if it's not paid? - ✔️✔️It is a real estate tax
and if not paid, the property could be auctioned off.
What is Ad valorem? - ✔️✔️Ad valorem tax is a tax whose amount is based on the value of a
transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales
tax or value-added tax. Another word for
property taxes
What are Ad valorem taxes for? - ✔️✔️General assessment tax, not a special assessment tax.
How are special assessment taxes paid? - ✔️✔️They are normally paid each year for a certain
number of years by the owners of the properties that have been improved.
What do special assessment taxes cover and what do general assessment taxes cover? -
✔️✔️Special assessment taxes are normally to cover the cost of sewers and sidewalks. General
assessment taxes are to cover public good items such as police and fire protection.
What deals with safety in construction? - ✔️✔️Building codes.
What is a tax on the land plus improvements? - ✔️✔️General assessment tax. (The more value (ad
valorem) in the real property, the more one pays in taxes.
What is used to keep things in order such as zoning and building codes? - ✔️✔️Police power.
What is the ability of the government to tax private property? - ✔️✔️Taxation
What word describes Escheat? - ✔️✔️Abandonment
What does TAR stand for? - ✔️✔️TAX, Assessed Value, Rate. As a whole, it basically means taxes.
Test for intent (Method of Fixtures) - ✔️✔️Attachment, Adaptation, Agreement
,Which of the following describes an encroachment? Liquid asset, form of trespass, variance, buffer
zone - ✔️✔️Form of trespass
An estate is... - ✔️✔️The right of ownership.
What rights do I have with Fee Simple Absolute? - ✔️✔️Absolutely ALL the rights.
How long does Fee Simple Absolute last? - ✔️✔️Forever
What rights do I have with Fee Simple Defeasable? - ✔️✔️A fee simple defeasible is a conveyance
of property that has conditions placed on it. The holder of a fee simple defeasible possesses the
property as a fee simple subject to that condition. If the condition is violated or not met, then the
property will either go back to the original grantor or a specified third party.
How long does a Life Estate last? - ✔️✔️For the life of the grantee.
What happens when grantee of Life Estate dies? - ✔️✔️Property reverts back to Grantor or third
party (remainderman)
Which estate can there exist a Remainderman? - ✔️✔️A life estate
How many Freehold Estates are there and what are they? - ✔️✔️There are 3 freehold estates.
They are: 1. Fee Simple or Fee Simple Absolute
2. Fee SImple Defeasable
3. Life Estate
Upon the death of the life tenant, the estate returns to... - ✔️✔️Fee Simple Absolute.
The Grantor or the Remainderman now owns the property in Fee SImple Absolute.
A life estate is ____________________ but generally not inheritable. - ✔️✔️Transferable
, A life estate is transferable but generally not __________________. - ✔️✔️Inheritable
How many leasehold estates are there and what are they? - ✔️✔️There are 4 Leasehold Estates.
They are: 1. Estate for Years
2. Periodic Estate
3. Estate at Will
4. Estate at Sufferance
What interest does a tenant have in the property? - ✔️✔️Leasehold
What interest does a landlord have in the property? - ✔️✔️Lease fee
What is an Estate at Sufferance? - ✔️✔️Landlord is "suffering" because tenant hasn't paid rent and
refuses to leave so now an eviction is necessary to get tenant off the property. The tenant is
insufferable.
What is an Estate for Years? - ✔️✔️An estate which lasts a definite amount of time. Has an
expiration. This is the most common type of Leasehold estate.
What are two ways the government can acquire privately held land? - ✔️✔️Eminent domain &
Escheat
An estate that lasts only so long as a specified condition is met is known as a - ✔️✔️Qualified Fee
An irrevocable right to use the lands of another is called? - ✔️✔️An easement
A holder of a freehold estate has rights of... - ✔️✔️Ownership
Which estate usually does NOT terminate upon the death of the holder of the estate? - ✔️✔️Estate
for years
