PENNSYLVANIA REAL ESTATE FUNDAMENTALS FINAL EXAM WITH CORRECT ANSWERS

PENNSYLVANIA REAL ESTATE FUNDAMENTALS FINAL EXAM WITH CORRECT ANSWERS "In Pennsylvania, mine activities refers to - CORRECT ANSWER Subsurface rights" "Pennsylvania requires the seller to provide notice to a purchaser about whether a structure on the land is entitled to support from the underlying this is known as the - CORRECT ANSWER Subsistence support" "Purpose of Real Estate License Laws - CORRECT ANSWER to protect the public from fraud, dishonesty, and incompetence in real estate transactions" "Method of annexation, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is - CORRECT ANSWER a fixture or personal property" "The purpose of the laws concerning asbestos is to - CORRECT ANSWER Minimize the release of asbestos fibers during construction and removal" "To be valid, a lease must meet certain requirements, which are essentially the same as in any other contract. Which of the following is NOT one of those requirements - CORRECT ANSWER Validation" "The leasehold estate that automatically renews itself at the end of the lease is - CORRECT ANSWER Tenancy from period to period" "Many states determine water use by allocating water to users who hold recorded beneficial use permits. This type of water use privilege is called a. riparian rights b. littoral rights c. the doctrine of prior appropriation d. the doctrine of highest and best use - CORRECT ANSWER c. the doctrine of prior appropriation In states that subscribe to the doctrine of prior appropriation, the right to use water is controlled by the state. To secure water rights in these states, a landowner must secure a permit to use a specified amount of water for a beneficial use." "A person who has complete control over a parcel of real estate is said to own a - CORRECT ANSWER fee simple estate. Fee Simple, also known as fee simple absolute is known as the highest degree of ownership. The other "estate" terms are all much more limited forms of ownership - a life estate expires over time, a leasehold estate has a definite term, and a defeasible estate is limited by a certain event happening." "A person wants to ensure that the ownership of real property can be willed to her children. Which form of ownership would the person want? - CORRECT ANSWER fee simple estate" "After a tenant lease expired , the tenant neither vacated nor negotiated a renewal lease . The landlord has declared that she does not want the tenant to remain in the building. The tenant hold - CORRECT ANSWER An estate at sufferance" "A tenant lease will expire in two weeks at which time, the tenant will move into larger quarters on the other side of town . To terminate the agreement. - CORRECT ANSWER Nothing needs to be done the agreement will terminate automatically" "Tenancy from Period to Period - CORRECT ANSWER a leasehold estate that continues to automatically renew each period unless terminated by either party" “Bundle of Legal Rights is property included in - CORRECT ANSWER The definition of real property" "Bundle of rights concept - CORRECT ANSWER Possession, Enjoyment, Exclusion, Disposition, control" "Land is considered to be - CORRECT ANSWER indestructible" "The Comprehensive Plan - CORRECT ANSWER Is not a regulatory document" "buffer zones - CORRECT ANSWER A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use." "Inverse Condemnation - CORRECT ANSWER action, initiated by a property owner against the government, to recover the loss in property value" "The grantor of a deed may place effective restrictions on - CORRECT ANSWER The use of the land" "When a development increases the traffic flow on existing streets and highways, the municipality can fund the cost of transportation improvements that needed because of this development through - CORRECT ANSWER Impact fees" "To protect the public from fraudulent interstate land sales, a developer involved in interstate land sale of 25 or more lots must - CORRECT ANSWER Provide each purchaser with a report of the details of the land, as registered with HUD." "Where are permitted land uses and set- asides, housing projects, transportation issues, and objectives for implementing future controlled development found - CORRECT ANSWER Comprehensive plans" "When is a certificate of occupancy issued? - CORRECT ANSWER After a newly constructed building has been inspected and found satisfactory by the municipal inspector" "To determine whether a location can be put to future use as a retail store , one would examine the - CORRECT ANSWER zoning ordinance" "Corn - CORRECT ANSWER Is an emblement" "In determining intent of a fixture real property, court use the following three basic tests , which of the following are not one of these test - CORRECT ANSWER Method of removal" "Which of the following is not an economic characteristic of real estate - CORRECT ANSWER Indestructibility" "Which of the following is not a part of impact fees ,which are charges made in advance to cover anticipated expenses involving offsite capital improvements - CORRECT ANSWER Installing new parks" "Who is the best person to advice a client on the best way for them to take title to their new home - CORRECT ANSWER An attorney" "Which of the following would probably not be included in a list of deed restrictions - CORRECT ANSWER How many family members can live on the property" "physical chracteristics of land - CORRECT ANSWER Immobility, indestructibility, uniqueness, nonhomogeneity means that two properties are the same ." "determine whether a location can be put to future use as a restaurant, one would examine the - CORRECT ANSWER Zoning ordinances" "real estate - CORRECT ANSWER land and anything that is attached to it" "Nonhomogeneity - CORRECT ANSWER uniqueness" "Economic Characteristics of Land - CORRECT ANSWER scarcity, modification, improvements, permanence of investment, area preference. I" "Real property can be converted into personal property through - CORRECT ANSWER severance" "The tenant of a single-family home installs an awning over the buildings front windows to keep the sun away from some delicate hanging plants. Which of the following is TRUE? - CORRECT ANSWER The awning is considered a fixture" "Which entity is generally responsible for creating the requirements for a real estate license - CORRECT ANSWER individual state law" "Seller need to provide notice to a purchase about whether a structure on the land is entitled to support from the underlying coal. - CORRECT ANSWER Coal notice" "Homeowners is building an enclosed front porch on his home . A truckload of lumber that the homeowner purchase has been left in the driveway for use in building the porch . Lumber is considered - CORRECT ANSWER Personal property" "Which of the following is required in Pennsylvania real estate transactions - CORRECT ANSWER Coal mining notice" "What is the process that often produces sink holes or troughs in some Pennsylvania regions - CORRECT ANSWER Mine subsidence" "Restrictive Covenants - CORRECT ANSWER agreements among homeowners not to sell real estate to certain groups of people" "Variance - CORRECT ANSWER Provides relief for property owners who can demonstrate that a zoning ordinance deprives them of the reasonable use of property" "Deed Restrictions - CORRECT ANSWER Provision placed in deeds to control future uses of the property." "Plat - CORRECT ANSWER A map illustrating the sizes and location" "percolation test - CORRECT ANSWER a soil test designed to measure rate of water absorption and drainage such as for septic systems" "Injunction Relief - CORRECT ANSWER An order for the violator of a contract to stop the illegal activity" "Court Injunctions - CORRECT ANSWER is a court order that prevents a party from performing a specific act and may be temporary of permanent" "air pollution - CORRECT ANSWER Is not considered an environmental hazard" "Encapsulation - CORRECT ANSWER Method of sealing disintegrating asbestos" "A lot in a recorded subdivision will not include the - CORRECT ANSWER The year it was subdivided" "A metes-and-bounds description used direction and distance measurements to establish precise boundaries for a parcel. These are used to establish those boundaries. - CORRECT ANSWER Monuments" "An acre consists of how many square feet? - CORRECT ANSWER 43,560" "There are several thousands of these in U.S. cities that are contributing to the cause of the decline of urban values - CORRECT ANSWER Brownfields" "Currently, this is one of the most controversial environmental issues, especially in Pennsylvania - CORRECT ANSWER Waste disposal sites" "The law that contains the broadest liabilities for environmental cleanup is the - CORRECT ANSWER CERCLA" "Which of the following are LEAST likely to have liability under the environmental law ? - CORRECT ANSWER Real estate educators" "With regard to the effect of landfills and hazardous waste sites on the value of surrounding properties, the EPA learned that - CORRECT ANSWER remedial action can reverse the decline at some sites" "What disclosure does the seller property disclosure statement require? - CORRECT ANSWER type of sewage system on the property" "Among the MOST common sources of carbon monoxide in a house - CORRECT ANSWER are malfunctioning furnaces" "Which of the following can protect a buyer from unexpected environmental problems after closing ? - CORRECT ANSWER Environmental Site Assessment" "The MOST important step involved in managing the risk of environmental hazards is to - CORRECT ANSWER Gather and disseminate authoritative information" "What environmental problem is often the often the cause of the decline of urban values? - CORRECT ANSWER Brownfields" "The colorless, odorless, and poisonous gas from the exhaust is called: - CORRECT ANSWER carbon monoxide" "The term encapsulation refers to the - CORRECT ANSWER method of sealing disintegrating asbestos" "One method of sealing off disintegrating asbestos is called - CORRECT ANSWER encapsulation" "What environmental hazard is found in old air conditioners, refrigerators, and freezers? - CORRECT ANSWER Chlorofluorocarbons" "What is required before any federally funded development project is approved? - CORRECT ANSWER Environmental Impact Statement (EIS)" "Contamination by underground storage tanks is - CORRECT ANSWER Regulated by the EPA ." "A monument is used in which type of legal description? a. lot and block b. metes and bounds c. rectangular survey d. street address - CORRECT ANSWER b. metes and bounds The term monument refers to a fixed, unchanging reference point used to locate the point of beginning (POB) for a specific parcel of real estate. A monument is critical to create an accurate metes-and-bounds legal description." "An acre contains - CORRECT ANSWER 43,560 square feet" "Who is required by the condominium laws to prepare a plat map showing the elevations of floors and ceiling surfaces? - CORRECT ANSWER A registered land surveyor" "Which of the following is MOST likely to be included in a legal description of a condominium description? - CORRECT ANSWER Fractional share of the buildings common elements" "A map that shows the location, size, and shape of buildings located on a lot is called a - CORRECT ANSWER Spot survey" "The newly acquired deposited of soil, gravel or sand upon the bank of a river are called - CORRECT ANSWER Alluvion" "Where is the property line generally lactated for property owners whose land borders a lake? - CORRECT ANSWER The middle of the lake" "A lease requires a minimum rent of 1,800 per month, plus 6% of the businesses sales over 130,000. On an annual sales volume of 320,000, the annual rent would be: - CORRECT ANSWER 33,000" "The purpose of security deposite is to - CORRECT ANSWER Repair damage to the property caused by the the tenant" "When a tenant breaches a lease or improperly retains possession of the premises, the landlord may regain possession through a legal process known as - CORRECT ANSWER Actual eviction" "Quite Enjoyment means - CORRECT ANSWER The landlord must give the tenant notice before coming into the apartment." "All of the following are powers of the government EXCEPT - CORRECT ANSWER Condemnation" "A property was seeded to a church " for religious purposes only " conveys a - CORRECT ANSWER Fee simple on condition subsequent" "When does a property's ownership revert to the state via escheat - CORRECT ANSWER Owner dies without a will or heirs" "A person who has complete control over a parcel of real estate is said to own a - CORRECT ANSWER fee simple estate" "What is the maximum security deposit that a landlord may charge for the first year ? - CORRECT ANSWER Up to 2 months rent" "Which of the following is NOT a leasehold estate - CORRECT ANSWER Estate for months" "Which is a characteristic of an appurtenances easement ? - CORRECT ANSWER Runs with the land" "The right of a government body to take ownership of real estate for public use is called - CORRECT ANSWER eminent domain" "A portion of A's building was inadvertently built on person B's land 'z this is called an - CORRECT ANSWER Encroachment" "Under what authority may municipalities and counties enact legislation to preserve order and to protect public health? - CORRECT ANSWER State's enabling acts" "Your neighbors use your driveway to reach their garage on their property. Your attorney explains that ownership of the neighbors' real estate includes an easement appurtenant giving them the driveway right. Your property is the: dominant tenement tenement leasehold servient tenement - CORRECT ANSWER servient tenement B. Dominant vs. Servient: 1. The "holder" of an easement right, or the party that is benefiting from the easement, is referred to as the "dominant tenant". Likewise, the property benefiting from an easement is referred to as the "dominant estate" or "dominant tenement". 2. The party "burdened" by the easement is referred to as the "servient tenant". Likewise, the property burdened by the easement is the "servient estate" or "servient tenement"." "Which of the following is classified as a life estate - CORRECT ANSWER an estate pur autre vie" "All of the following are powers of the government EXCEPT - CORRECT ANSWER Condemnation" "Property deeded to a school "for educational purposes only" conveys a a. fee simple absolute. b. fee simple on condition precedent. c. leasehold interest. d. fee simple on condition subsequent. - CORRECT ANSWER d. fee simple on condition subsequent Property conveyed "for educational purposes only" or some other condition creates a fee simple estate qualified by a "condition subsequent." If the condition is broken, the former owner can initiate legal action to reclaim ownership." "A man conveys ownership of his residence to his daughter but reserves for himself a life estate in the residence. The interest the daughter owns during her father's lifetime is a. pur autre vie. b. a future interest. c. a current interest. d. a leasehold. - CORRECT ANSWER b. a future interest the man has conveyed a future interest to his daughter, known as a remainder interest. During his life, the man owns the life estate and is the life tenant. upon his death, ownership passes to the daughter as the remainderman." "Which is a characteristic of an appurtenant easement? - CORRECT ANSWER Runs with the land" "Where is the property line generally located for Pennsylvania property owners whose land borders Lake Erie ? - CORRECT ANSWER Mean high water mark" "The acquisition of land through deposit if soil or sand washed up by water is called - CORRECT ANSWER Accretion" "Under what conditions may cause property ownership to revert to the state? - CORRECT ANSWER Owner dies without a will or heirs" "What is the term for this newly created increase in land - CORRECT ANSWER Reliction" "All of the following will terminate an easement EXCEPT - CORRECT ANSWER release of the right of easement to the dominant tenement" "A lot is encumbered by a sewer easement that runs where the foundation of a building would be. How will this affect the owner, who wants to build a house? - CORRECT ANSWER The house must be constructed to avoid the easement." "A daughter conveys the ownership of her apartment building to nursing home, anticipating that the rental income will help pay for her fathers care there. When her father dies, the daughter will recapture the ownership of the apartment building. This is an example of a - CORRECT ANSWER Life Estate pur autre vie" "For land to be taken by the government under its right of eminent domain, which of the following must apply? A) The taking must be for a public purpose. B) There must be a statutory dedication. C) This must be an adverse action. D) There must be constructive notice. - CORRECT ANSWER A) The taking must be for a public purpose." "Which of the following transactions would be the best to be described as involving a ground lease? - CORRECT ANSWER With the landowners permission, a tenant builds and owns a shopping center in a vacant land lease for the land leases from the landowner" "What is the maximum amount of security deposit that a residential landlord may charge for the first year - CORRECT ANSWER Up to two months' rent" "How soon must the landlord return the tenants security deposit after termination of the lease - CORRECT ANSWER 30 days" "A tenant who transfers all rights for the remaining term of the lease to a third party is - CORRECT ANSWER assigning the lease" "Net Lease - CORRECT ANSWER lease in which the tenant pays some or all of the operating expenses of the property in addition to rent" "Actual Eviction - CORRECT ANSWER suit for possession; legal removal of a tenant" "eminent domain - CORRECT ANSWER Power of a government to take private property for public use." "Constructive Eviction - CORRECT ANSWER if landlord fails to perform duties and tenant refuses to pay rent and abandons premise due to the breach of contract" "Partial Eviction - CORRECT ANSWER if the landlord prevents you from entering a part of the premises" "Zoning does not affect such things as - CORRECT ANSWER Deed restrictions" "Zoning - CORRECT ANSWER A planning tool used to separate industry and business from residential neighborhoods." "Zoning Ordinance - CORRECT ANSWER A law that limits the permitted uses of land and maximum density of development in a community." "Zoning Affects: - CORRECT ANSWER permitted use of the land, lot sizes, types of structures, building heights, setbacks( the minimum distance structures may be built from streets or sidewalks) density(the ratio of land area to structure area or population) protection of natural resources" "Zoning Hearing Board are established to hear complaints about - CORRECT ANSWER The effect of a zoning ordinance" "A new zoning ordinance is enacted. A building that is permitted to continue in its former use even though that use does not comply with a new zoning ordinance is an example of - CORRECT ANSWER . a nonconforming use" "Under the Interstate Land Sales Full Disclosure Act, what is the outcome if the property report is not given to the prospective purchaser before the contract is signed? - CORRECT ANSWER The purchaser may revoke the contract, at the purchaser's option, up to midnight of the seventh calendar day following the signing of the contract." "A new zoning ordinance is enacted. A building that is permitted to continue in its former use even though that use does not comply with a new zoning ordinance is an example of - CORRECT ANSWER a nonconforming use" "A homeowner is putting up new siding and has purchased the materials that are now sitting in their driveway, waiting to be installed. At this point, the siding material are considered - CORRECT ANSWER Personal property" "The buyers asked their real estate agent to help them determine the correct way to take tittle to their new home . - CORRECT ANSWER Real estate agent should suggest that the buyers consult an attorney." "A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called - CORRECT ANSWER area preference" "A metes-and-bounds legal description - CORRECT ANSWER must commence and finish at the same identifiable point" "Lead-Based Paint Hazard Reduction Act of 1992, requires the following from sellers and landlords of residential dwellings. Which of the following is NOT part of that disclosure? - CORRECT ANSWER Buyers have up to 10 days to conduct a risk assessment or inspection for the presence of lead-based paint hazards." "CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites, - CORRECT ANSWER impose strict, joint and several and retro active liability on potentially responsible parties" "Which of the following describes the process of creating a landfill site? - CORRECT ANSWER Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants" "Contamination from underground storage tanks is - CORRECT ANSWER addressed by EPA regulations" "CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites, - CORRECT ANSWER impose strict, joint and several, and retroactive liability on potentially responsible parties"