WRA Pre Exam Review UPDATED
Questions and CORRECT Answers
What rights to property come with ownership? - CORRECT ANSWER - Control;
Disposition; Quiet enjoyment; Encumber; Exclude; Possession.
What form of ownership allows title to a deceased spouse's property to pass to the surviving
spouse without probate? - CORRECT ANSWER - Survivorship marital property. A
special form of joint tenancy with right of survivorship. Just for married people.
What are some examples of encumbrances? - CORRECT ANSWER - Easement; Liens;
Encroachments; Property taxes and Special assessments.
What type of interest is a leasehold estate? - CORRECT ANSWER - Personal property
interest.
In what form of ownership does a condominium unit owner hold the condominium unit? -
CORRECT ANSWER - Severalty
In what form of ownership does a condominium unit owner hold the common elements? -
CORRECT ANSWER - Tenancy-in-common
Under what form of ownership does an individual purchase stock in a corporation and receive a
lease for a unit from the corporation? - CORRECT ANSWER - Cooperative
What kind of estate do you have if you own your home, even if it is subject to a mortgage? -
CORRECT ANSWER - It is a fee simple absolute, which is a kind of freehold estate.
Which type of property is automatically included in the purchase of real estate? - CORRECT
ANSWER - Real property (land, structures, fixture) Trees, buildings, etc. Personal
property is only included if the parties include it in the accepted offer to purchase.
,What is achieved by recording a deed to property? - CORRECT ANSWER - Constructive
notice of ownership.
How does title insurance serve as evidence of title? - CORRECT ANSWER - It is an
insurance policy to protect the policy holder from defects in title.
What protection does an abstract of title provide to a property owner? - CORRECT
ANSWER - An abstract of title does not provide coverage for gaps in title or clouds on
title.
What is a gap endorsement (gap insurance)? - CORRECT ANSWER - It protects the
property owner from clouds or claims on the title that might appear between the date of the title
commitment and the date the deed showing the new owner is recorded (the gap). The title
commitment is also called the preliminary report.
What type of lien attaches to both real and personal property? - CORRECT ANSWER -
General lien. A specific lien attaches only to the property securing the debt. A chattel mortgage
is an example of a specific lien - "chattel mortgage " is an old-fashioned term for a mortgage on
personal property such as a car loan secured by the car.
Which deed offers the most comprehensive guarantee of title? - CORRECT ANSWER -
Warranty deed.
Which deed offers the least guarantee of title? - CORRECT ANSWER - Quit claim deed.
Land Use Controls and Regulations - 5 items. - CORRECT ANSWER - Private land use
controls: Restrictions, Deed Conditions, Covenants. Public Controls of Permitted Use,
Conditional Use, Non-conformingUse, Variance, Setbacks (Zoning). PUDS (Planned Unit
Development).
, How does one determine the permitted uses for a particular area? - CORRECT
ANSWER - Zoning ordinances, many municipalities post their zoning ordinances online,
contact the local zoning authority for more information on zoning ordinances.
What type of zoning allows land to be used in a way that was already in existence when a zoning
ordinance was enacted but does not comply with current zoning regulations? - CORRECT
ANSWER - Non-conforming use.
A vacant parcel of land that was zoned residential has been re-zoned to conservancy of natural
resources. What type of zoning has occurred? - CORRECT ANSWER - Downzoning.
An owner of a property would like to transfer title. Will the existing deed conditions stay in place
or are they terminated upon transfer of title? - CORRECT ANSWER - The existing deed
conditions "run with the land ". They will survive the transfer.
What is a planned unit development? - CORRECT ANSWER - Is zoning district written
and negotiated specifically for the subject property. It may allow a developer to cluster buildings
and services together in a way that would not be permissible under the municipality's regular
zoning ordinances.
What is a deed restriction? - CORRECT ANSWER - A private land use control. Example,
all houses in the neighborhood must be painted one of five approved colors, no play structures in
backyards. Violation of a deed restriction may result in a fine or an injunction to stab the
prohibited act.
How do agents conduct a market analysis to establish a market value? - CORRECT
ANSWER - They compare comparable properties including active, expired, pending, and
completed transactions. Market value is an opinion of value for which a property would likely
sell to a buyer in an arm's length transaction.
What principle of value represents the effect on a property when surrounding properties are not
of a similar quality or condition? - CORRECT ANSWER - Regression
Questions and CORRECT Answers
What rights to property come with ownership? - CORRECT ANSWER - Control;
Disposition; Quiet enjoyment; Encumber; Exclude; Possession.
What form of ownership allows title to a deceased spouse's property to pass to the surviving
spouse without probate? - CORRECT ANSWER - Survivorship marital property. A
special form of joint tenancy with right of survivorship. Just for married people.
What are some examples of encumbrances? - CORRECT ANSWER - Easement; Liens;
Encroachments; Property taxes and Special assessments.
What type of interest is a leasehold estate? - CORRECT ANSWER - Personal property
interest.
In what form of ownership does a condominium unit owner hold the condominium unit? -
CORRECT ANSWER - Severalty
In what form of ownership does a condominium unit owner hold the common elements? -
CORRECT ANSWER - Tenancy-in-common
Under what form of ownership does an individual purchase stock in a corporation and receive a
lease for a unit from the corporation? - CORRECT ANSWER - Cooperative
What kind of estate do you have if you own your home, even if it is subject to a mortgage? -
CORRECT ANSWER - It is a fee simple absolute, which is a kind of freehold estate.
Which type of property is automatically included in the purchase of real estate? - CORRECT
ANSWER - Real property (land, structures, fixture) Trees, buildings, etc. Personal
property is only included if the parties include it in the accepted offer to purchase.
,What is achieved by recording a deed to property? - CORRECT ANSWER - Constructive
notice of ownership.
How does title insurance serve as evidence of title? - CORRECT ANSWER - It is an
insurance policy to protect the policy holder from defects in title.
What protection does an abstract of title provide to a property owner? - CORRECT
ANSWER - An abstract of title does not provide coverage for gaps in title or clouds on
title.
What is a gap endorsement (gap insurance)? - CORRECT ANSWER - It protects the
property owner from clouds or claims on the title that might appear between the date of the title
commitment and the date the deed showing the new owner is recorded (the gap). The title
commitment is also called the preliminary report.
What type of lien attaches to both real and personal property? - CORRECT ANSWER -
General lien. A specific lien attaches only to the property securing the debt. A chattel mortgage
is an example of a specific lien - "chattel mortgage " is an old-fashioned term for a mortgage on
personal property such as a car loan secured by the car.
Which deed offers the most comprehensive guarantee of title? - CORRECT ANSWER -
Warranty deed.
Which deed offers the least guarantee of title? - CORRECT ANSWER - Quit claim deed.
Land Use Controls and Regulations - 5 items. - CORRECT ANSWER - Private land use
controls: Restrictions, Deed Conditions, Covenants. Public Controls of Permitted Use,
Conditional Use, Non-conformingUse, Variance, Setbacks (Zoning). PUDS (Planned Unit
Development).
, How does one determine the permitted uses for a particular area? - CORRECT
ANSWER - Zoning ordinances, many municipalities post their zoning ordinances online,
contact the local zoning authority for more information on zoning ordinances.
What type of zoning allows land to be used in a way that was already in existence when a zoning
ordinance was enacted but does not comply with current zoning regulations? - CORRECT
ANSWER - Non-conforming use.
A vacant parcel of land that was zoned residential has been re-zoned to conservancy of natural
resources. What type of zoning has occurred? - CORRECT ANSWER - Downzoning.
An owner of a property would like to transfer title. Will the existing deed conditions stay in place
or are they terminated upon transfer of title? - CORRECT ANSWER - The existing deed
conditions "run with the land ". They will survive the transfer.
What is a planned unit development? - CORRECT ANSWER - Is zoning district written
and negotiated specifically for the subject property. It may allow a developer to cluster buildings
and services together in a way that would not be permissible under the municipality's regular
zoning ordinances.
What is a deed restriction? - CORRECT ANSWER - A private land use control. Example,
all houses in the neighborhood must be painted one of five approved colors, no play structures in
backyards. Violation of a deed restriction may result in a fine or an injunction to stab the
prohibited act.
How do agents conduct a market analysis to establish a market value? - CORRECT
ANSWER - They compare comparable properties including active, expired, pending, and
completed transactions. Market value is an opinion of value for which a property would likely
sell to a buyer in an arm's length transaction.
What principle of value represents the effect on a property when surrounding properties are not
of a similar quality or condition? - CORRECT ANSWER - Regression
