ALABAMA REAL ESTATE FINAL EXAM STUDY GUIDE
QUESTIONS WITH 100% CORRECTLY SOLVED
ANSWERS.
1) Which of the following ways of specializing is common in the real estate
_ _ _ _ _ _ _ _ _ _ _ _ _ _
brokerage business? _
A) By type of mortgage financing required
_ _ _ _ _
B) By years of experience in the business
_ _ _ _ _ _
C) By type of property _ _ _
D) By background of client -- Correct Answer ✔✔ C. By type of property
_ _ _ _ _ _ _ _ _ _ _ _
2) Which of the following is included in the legal concept of land?
_ _ _ _ _ _ _ _ _ _ _
A) A corn crop _ _
B) A lake _
C) A felled tree _ _
D) An abandoned vehicle -- Correct Answer ✔✔ B. A lake
_ _ _ _ _ _ _ _ _
3) A property abuts a non-navigable stream. What does the property owner own?
_ _ _ _ _ _ _ _ _ _ _
A) Land to the low-water mark _ _ _ _
B) Underlying land to the middle of the waterway _ _ _ _ _ _ _
C) Land to the high water mark _ _ _ _ _
D) All water to the middle of the waterway -- Correct Answer ✔✔ B.
_ _ _ _ _ _ _ _ _ _ _ _ _
Underlying land to the middle of the waterway _ _ _ _ _ _ _
4) A retailer installs special display counters to exhibit her products. At the end of
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the lease term, the retailer moves to another state, leaving the counters in the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
store. At this point the counters are considered which of the following?
_ _ _ _ _ _ _ _ _ _ _
A) Trade fixtures, and therefore real property
_ _ _ _ _
B) Trade fixtures and therefore personal property
_ _ _ _ _
C) Real property, since the trade fixtures were abandoned
_ _ _ _ _ _ _
, D) Personal property that must be returned to the retailer -- Correct
_ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. Real property, since the trade fixtures were abandoned
_ _ _ _ _ _ _ _ _ _
5) How is a legal life estate created?
_ _ _ _ _ _
A) By an owner's voluntary grant _ _ _ _
B) By operation of law _ _ _
C) Through the four unities _ _ _
D) Through a defeasible conveyance -- Correct Answer ✔✔ B. By operation _ _ _ _ _ _ _ _ _ _ _
of law _
6) Which of the following is true of a homestead?
_ _ _ _ _ _ _ _
A) A homestead interest can be conveyed by one spouse
_ _ _ _ _ _ _ _
B) A homestead interest cannot be exempt from creditors
_ _ _ _ _ _ _
C) A homestead interest is a form of legal life estate
_ _ _ _ _ _ _ _ _
D) A homestead is any privately owned single-family residence -- Correct
_ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. A homestead interest is a form of legal life estate _ _ _ _ _ _ _ _ _ _ _ _
7) Three people have identical rights in a property, share an indivisible interest, but
_ _ _ _ _ _ _ _ _ _ _ _ _
may sell or transfer their interest without consent of the others. This type of
_ _ _ _ _ _ _ _ _ _ _ _ _ _
ownership is: _
A) joint tenancy _
B) tenancy by the entireties _ _ _
C) estate in severalty _ _
D) tenancy in common -- Correct Answer ✔✔ D. tenancy in common _ _ _ _ _ _ _ _ _ _
8) A condominium estate is distinguished by:
_ _ _ _ _
A) Ownership of a share in an association and a condominium lease on the _ _ _ _ _ _ _ _ _ _ _ _ _
owned unit _
B) Tenancy in common interest in airspace and common areas of the _ _ _ _ _ _ _ _ _ _ _
property
C) Fee simple ownership of a unit and undivided share of the common areas
_ _ _ _ _ _ _ _ _ _ _ _
D) Fee simple ownership of an equal share of the entire property -- Correct
_ _ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. Fee simple ownership of a unit and undivided share of_ _ _ _ _ _ _ _ _ _ _ _ _
the common areas _ _
, 9) An easement by prescription requires that:
_ _ _ _ _
A) the use be continuous, known, and permitted by the owner for a period
_ _ _ _ _ _ _ _ _ _ _ _ _
of time _
B) the use by continuous, open, and hostile for a required period of time
_ _ _ _ _ _ _ _ _ _ _ _
C) the owner of an adjoining property be landlocked
_ _ _ _ _ _ _
D) the owner of the affected property be and adverse possessor -- Correct
_ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. the owner of an adjoining property be landlocked _ _ _ _ _ _ _ _ _ _
10) In a lien-theory state:
_ _ _
A) Liens are recorded in trusts as opposed to title records
_ _ _ _ _ _ _ _ _
B) the lender records a lien while the borrower retains title
_ _ _ _ _ _ _ _ _
C) liened properties are foreclosed by strict foreclosure _ _ _ _ _ _
D) trustees retain title during a mortgage period -- Correct Answer ✔✔ B. _ _ _ _ _ _ _ _ _ _ _ _
the lender records a lien while the borrower retains title
_ _ _ _ _ _ _ _ _
11) Five liens have been recorded against a certain house in the following order: first
_ _ _ _ _ _ _ _ _ _ _ _ _ _
mortgage, mechanic's lien, second mortgage, real estate tax lien, special
_ _ _ _ _ _ _ _ _ _
assessment lien. Which lien will be the last one to be paid from the proceeds of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
the sale of the house?
_ _ _ _
A) Special assessment lien _ _
B) Mechanic's lien _
C) Second mortgage lien _ _
D) Real estate tax lien -- Correct Answer ✔✔ C. Second mortgage lien
_ _ _ _ _ _ _ _ _ _ _
12) For a conveyance by deed between private parties to be valid, the deed must be
_ _ _ _ _ _ _ _ _ _ _ _ _ _
A) warranted by the grantor _ _ _
B) recorded by the grantee _ _ _
C) signed by the grantee _ _ _
D) accepted by the grantee -- Correct Answer ✔✔ D. accepted by the _ _ _ _ _ _ _ _ _ _ _ _
grantee
13) If a person dies with legal heirs and has left no valid will, what happens to the real
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
property owned by that person?
_ _ _ _
A) It is taken by the state according to the process called escheat
_ _ _ _ _ _ _ _ _ _ _
B) It is probated according to the terms agreed to by the heirs
_ _ _ _ _ _ _ _ _ _ _
C) It is probated and passes to the heirs by laws of descent
_ _ _ _ _ _ _ _ _ _ _
QUESTIONS WITH 100% CORRECTLY SOLVED
ANSWERS.
1) Which of the following ways of specializing is common in the real estate
_ _ _ _ _ _ _ _ _ _ _ _ _ _
brokerage business? _
A) By type of mortgage financing required
_ _ _ _ _
B) By years of experience in the business
_ _ _ _ _ _
C) By type of property _ _ _
D) By background of client -- Correct Answer ✔✔ C. By type of property
_ _ _ _ _ _ _ _ _ _ _ _
2) Which of the following is included in the legal concept of land?
_ _ _ _ _ _ _ _ _ _ _
A) A corn crop _ _
B) A lake _
C) A felled tree _ _
D) An abandoned vehicle -- Correct Answer ✔✔ B. A lake
_ _ _ _ _ _ _ _ _
3) A property abuts a non-navigable stream. What does the property owner own?
_ _ _ _ _ _ _ _ _ _ _
A) Land to the low-water mark _ _ _ _
B) Underlying land to the middle of the waterway _ _ _ _ _ _ _
C) Land to the high water mark _ _ _ _ _
D) All water to the middle of the waterway -- Correct Answer ✔✔ B.
_ _ _ _ _ _ _ _ _ _ _ _ _
Underlying land to the middle of the waterway _ _ _ _ _ _ _
4) A retailer installs special display counters to exhibit her products. At the end of
_ _ _ _ _ _ _ _ _ _ _ _ _ _
the lease term, the retailer moves to another state, leaving the counters in the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
store. At this point the counters are considered which of the following?
_ _ _ _ _ _ _ _ _ _ _
A) Trade fixtures, and therefore real property
_ _ _ _ _
B) Trade fixtures and therefore personal property
_ _ _ _ _
C) Real property, since the trade fixtures were abandoned
_ _ _ _ _ _ _
, D) Personal property that must be returned to the retailer -- Correct
_ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. Real property, since the trade fixtures were abandoned
_ _ _ _ _ _ _ _ _ _
5) How is a legal life estate created?
_ _ _ _ _ _
A) By an owner's voluntary grant _ _ _ _
B) By operation of law _ _ _
C) Through the four unities _ _ _
D) Through a defeasible conveyance -- Correct Answer ✔✔ B. By operation _ _ _ _ _ _ _ _ _ _ _
of law _
6) Which of the following is true of a homestead?
_ _ _ _ _ _ _ _
A) A homestead interest can be conveyed by one spouse
_ _ _ _ _ _ _ _
B) A homestead interest cannot be exempt from creditors
_ _ _ _ _ _ _
C) A homestead interest is a form of legal life estate
_ _ _ _ _ _ _ _ _
D) A homestead is any privately owned single-family residence -- Correct
_ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. A homestead interest is a form of legal life estate _ _ _ _ _ _ _ _ _ _ _ _
7) Three people have identical rights in a property, share an indivisible interest, but
_ _ _ _ _ _ _ _ _ _ _ _ _
may sell or transfer their interest without consent of the others. This type of
_ _ _ _ _ _ _ _ _ _ _ _ _ _
ownership is: _
A) joint tenancy _
B) tenancy by the entireties _ _ _
C) estate in severalty _ _
D) tenancy in common -- Correct Answer ✔✔ D. tenancy in common _ _ _ _ _ _ _ _ _ _
8) A condominium estate is distinguished by:
_ _ _ _ _
A) Ownership of a share in an association and a condominium lease on the _ _ _ _ _ _ _ _ _ _ _ _ _
owned unit _
B) Tenancy in common interest in airspace and common areas of the _ _ _ _ _ _ _ _ _ _ _
property
C) Fee simple ownership of a unit and undivided share of the common areas
_ _ _ _ _ _ _ _ _ _ _ _
D) Fee simple ownership of an equal share of the entire property -- Correct
_ _ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. Fee simple ownership of a unit and undivided share of_ _ _ _ _ _ _ _ _ _ _ _ _
the common areas _ _
, 9) An easement by prescription requires that:
_ _ _ _ _
A) the use be continuous, known, and permitted by the owner for a period
_ _ _ _ _ _ _ _ _ _ _ _ _
of time _
B) the use by continuous, open, and hostile for a required period of time
_ _ _ _ _ _ _ _ _ _ _ _
C) the owner of an adjoining property be landlocked
_ _ _ _ _ _ _
D) the owner of the affected property be and adverse possessor -- Correct
_ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ C. the owner of an adjoining property be landlocked _ _ _ _ _ _ _ _ _ _
10) In a lien-theory state:
_ _ _
A) Liens are recorded in trusts as opposed to title records
_ _ _ _ _ _ _ _ _
B) the lender records a lien while the borrower retains title
_ _ _ _ _ _ _ _ _
C) liened properties are foreclosed by strict foreclosure _ _ _ _ _ _
D) trustees retain title during a mortgage period -- Correct Answer ✔✔ B. _ _ _ _ _ _ _ _ _ _ _ _
the lender records a lien while the borrower retains title
_ _ _ _ _ _ _ _ _
11) Five liens have been recorded against a certain house in the following order: first
_ _ _ _ _ _ _ _ _ _ _ _ _ _
mortgage, mechanic's lien, second mortgage, real estate tax lien, special
_ _ _ _ _ _ _ _ _ _
assessment lien. Which lien will be the last one to be paid from the proceeds of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
the sale of the house?
_ _ _ _
A) Special assessment lien _ _
B) Mechanic's lien _
C) Second mortgage lien _ _
D) Real estate tax lien -- Correct Answer ✔✔ C. Second mortgage lien
_ _ _ _ _ _ _ _ _ _ _
12) For a conveyance by deed between private parties to be valid, the deed must be
_ _ _ _ _ _ _ _ _ _ _ _ _ _
A) warranted by the grantor _ _ _
B) recorded by the grantee _ _ _
C) signed by the grantee _ _ _
D) accepted by the grantee -- Correct Answer ✔✔ D. accepted by the _ _ _ _ _ _ _ _ _ _ _ _
grantee
13) If a person dies with legal heirs and has left no valid will, what happens to the real
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
property owned by that person?
_ _ _ _
A) It is taken by the state according to the process called escheat
_ _ _ _ _ _ _ _ _ _ _
B) It is probated according to the terms agreed to by the heirs
_ _ _ _ _ _ _ _ _ _ _
C) It is probated and passes to the heirs by laws of descent
_ _ _ _ _ _ _ _ _ _ _
