Real Estate Law I Final Review
Exam|2025 questions and verified
answers|Grade A material
Decisions of trial courts are recorded and published, and are considered precedent
for future decisions. True or False? - CORRECT ANSWER - Flase
Skills used by paralegals in real estate practice include? - CORRECT ANSWER -
preparation of legal documents.
The air space immediately above the surface of privately owned land is owned by
the government. True or False? - CORRECT ANSWER - False
Which of these is considered real property? - CORRECT ANSWER - An acre of land
Which of the following is an ownership transfer that takes place upon the death of
the previous owner? - CORRECT ANSWER - Devise
Intangible personal property includes things such as televisions, air conditioners, and
dishwashers. True or False ? - CORRECT ANSWER - False
Under the feudal system, vassals paid money to the lord in exchange for the right to
live on and use a portion of the lord's land. True or False? - CORRECT ANSWER -
True
Which of these is considered intangible personal property? - CORRECT ANSWER -
A copyright
A deed transfers ownership only to the property described in the deed. True or
False? - CORRECT ANSWER - True
Which is the highest and best kind of estate an owner can have? - CORRECT
ANSWER - Fee simple absolute
Treatises are practice books published by state bar associations. True or False? -
CORRECT ANSWER - False
The rules on adverse possession - CORRECT ANSWER - vary from state to state.
No special language is required to create a fee simple absolute. True or False? -
CORRECT ANSWER - True
,Soybeans produced by labor are considered real property. True or False? -
CORRECT ANSWER - False
The law of real property is generally governed by the - CORRECT ANSWER - law of
the state in which the real property is located.
An estate at will is restricted in its duration to a fixed period. True or False? -
CORRECT ANSWER - False
Life estates may be created by
deed will.
express agreement.
all of the answers are correct. - CORRECT ANSWER - All of the answers are
correct
The transferor of real property is called a - CORRECT ANSWER - grantor
What kind of rights does an adjoining property owner to a river, stream, or natural
lake have? - CORRECT ANSWER - Beneficial rights
A person can obtain title by adverse possession by camping in a state park for seven
continuous years. True or false? - CORRECT ANSWER - false
When a gift is complete, the gift is irrevocable. True or False? - CORRECT
ANSWER - true
Legal blogs are also called blawgs. true or false - CORRECT ANSWER - true
Most states interpret a conveyance without limitation as transferring a fee simple
determinable to the grantee. True or false? - CORRECT ANSWER - true
Rose bushes that grow in soil are considered real property. True or false? -
CORRECT ANSWER - true
mortgage loan - CORRECT ANSWER - Definition:Loan secured by real property.
Fannie Mae and Freddie Mac are privately owned corporations organized to provide
a secondary market for single-family and multifamily residential loans. True or false -
CORRECT ANSWER - true
What is the limit on the loan amount the VA will guarantee? - CORRECT ANSWER -
25 percent of the loan amount
A graduated payment mortgage is a partially amortized loan. true or false -
CORRECT ANSWER - false
Commercial banks tend to keep mortgage loans in their portfolio through maturity.
True or false - CORRECT ANSWER - false
, Depositors' accounts with commercial banks are insured by - CORRECT ANSWER -
FDIC
Thrifts that survived the savings and loan collapse in the 1980s and 1990s were
converted into federal savings banks. true or false - CORRECT ANSWER - true
The primary market consists of lenders who originate mortgage loans for the
purpose of selling the loans to investors. true or false - CORRECT ANSWER - true
Mortgage banking companies originate mortgage loans for insurance companies,
commercial banks, pension funds, savings banks, and other investors. True or false -
CORRECT ANSWER - true
The monthly payments on a construction loan are amortized. true or false -
CORRECT ANSWER - false
The housing recession and mortgage crisis that started in 2007 caused an increased
number of loan defaults and financial solvency of banks. true or false - CORRECT
ANSWER - true
In most cases, the Small Business Administration (SBA) - CORRECT ANSWER -
guarantees loans made by private lending institutions approved by the SBA.
In a straight-line amortized loan the payments become smaller as the loan matures.
True or false - CORRECT ANSWER - true
The secondary market consists of - CORRECT ANSWER - investors who purchase
mortgage loans
Fannie Mae is an example of a - CORRECT ANSWER - warehousing agency
Conduit lenders do NOT do which of the following? - CORRECT ANSWER - Hold
mortgages for the full term of repayment
Subprime borrowers tend to be minority, low-income, and less well educated than
most borrowers.
True False - CORRECT ANSWER - true
Which type of amortization plan is most commonly used? - CORRECT ANSWER -
Fully amortized plan
A lender that makes conventional loans generally requires a higher loan-to-value
ratio than what is required for an insured or guaranteed loan.
True False - CORRECT ANSWER - false
Which payment mortgage permits the borrower to pay lower monthly payments for
the first few years of the loan and larger payments for the remainder of the term? -
CORRECT ANSWER - Graduated payment mortgage
Exam|2025 questions and verified
answers|Grade A material
Decisions of trial courts are recorded and published, and are considered precedent
for future decisions. True or False? - CORRECT ANSWER - Flase
Skills used by paralegals in real estate practice include? - CORRECT ANSWER -
preparation of legal documents.
The air space immediately above the surface of privately owned land is owned by
the government. True or False? - CORRECT ANSWER - False
Which of these is considered real property? - CORRECT ANSWER - An acre of land
Which of the following is an ownership transfer that takes place upon the death of
the previous owner? - CORRECT ANSWER - Devise
Intangible personal property includes things such as televisions, air conditioners, and
dishwashers. True or False ? - CORRECT ANSWER - False
Under the feudal system, vassals paid money to the lord in exchange for the right to
live on and use a portion of the lord's land. True or False? - CORRECT ANSWER -
True
Which of these is considered intangible personal property? - CORRECT ANSWER -
A copyright
A deed transfers ownership only to the property described in the deed. True or
False? - CORRECT ANSWER - True
Which is the highest and best kind of estate an owner can have? - CORRECT
ANSWER - Fee simple absolute
Treatises are practice books published by state bar associations. True or False? -
CORRECT ANSWER - False
The rules on adverse possession - CORRECT ANSWER - vary from state to state.
No special language is required to create a fee simple absolute. True or False? -
CORRECT ANSWER - True
,Soybeans produced by labor are considered real property. True or False? -
CORRECT ANSWER - False
The law of real property is generally governed by the - CORRECT ANSWER - law of
the state in which the real property is located.
An estate at will is restricted in its duration to a fixed period. True or False? -
CORRECT ANSWER - False
Life estates may be created by
deed will.
express agreement.
all of the answers are correct. - CORRECT ANSWER - All of the answers are
correct
The transferor of real property is called a - CORRECT ANSWER - grantor
What kind of rights does an adjoining property owner to a river, stream, or natural
lake have? - CORRECT ANSWER - Beneficial rights
A person can obtain title by adverse possession by camping in a state park for seven
continuous years. True or false? - CORRECT ANSWER - false
When a gift is complete, the gift is irrevocable. True or False? - CORRECT
ANSWER - true
Legal blogs are also called blawgs. true or false - CORRECT ANSWER - true
Most states interpret a conveyance without limitation as transferring a fee simple
determinable to the grantee. True or false? - CORRECT ANSWER - true
Rose bushes that grow in soil are considered real property. True or false? -
CORRECT ANSWER - true
mortgage loan - CORRECT ANSWER - Definition:Loan secured by real property.
Fannie Mae and Freddie Mac are privately owned corporations organized to provide
a secondary market for single-family and multifamily residential loans. True or false -
CORRECT ANSWER - true
What is the limit on the loan amount the VA will guarantee? - CORRECT ANSWER -
25 percent of the loan amount
A graduated payment mortgage is a partially amortized loan. true or false -
CORRECT ANSWER - false
Commercial banks tend to keep mortgage loans in their portfolio through maturity.
True or false - CORRECT ANSWER - false
, Depositors' accounts with commercial banks are insured by - CORRECT ANSWER -
FDIC
Thrifts that survived the savings and loan collapse in the 1980s and 1990s were
converted into federal savings banks. true or false - CORRECT ANSWER - true
The primary market consists of lenders who originate mortgage loans for the
purpose of selling the loans to investors. true or false - CORRECT ANSWER - true
Mortgage banking companies originate mortgage loans for insurance companies,
commercial banks, pension funds, savings banks, and other investors. True or false -
CORRECT ANSWER - true
The monthly payments on a construction loan are amortized. true or false -
CORRECT ANSWER - false
The housing recession and mortgage crisis that started in 2007 caused an increased
number of loan defaults and financial solvency of banks. true or false - CORRECT
ANSWER - true
In most cases, the Small Business Administration (SBA) - CORRECT ANSWER -
guarantees loans made by private lending institutions approved by the SBA.
In a straight-line amortized loan the payments become smaller as the loan matures.
True or false - CORRECT ANSWER - true
The secondary market consists of - CORRECT ANSWER - investors who purchase
mortgage loans
Fannie Mae is an example of a - CORRECT ANSWER - warehousing agency
Conduit lenders do NOT do which of the following? - CORRECT ANSWER - Hold
mortgages for the full term of repayment
Subprime borrowers tend to be minority, low-income, and less well educated than
most borrowers.
True False - CORRECT ANSWER - true
Which type of amortization plan is most commonly used? - CORRECT ANSWER -
Fully amortized plan
A lender that makes conventional loans generally requires a higher loan-to-value
ratio than what is required for an insured or guaranteed loan.
True False - CORRECT ANSWER - false
Which payment mortgage permits the borrower to pay lower monthly payments for
the first few years of the loan and larger payments for the remainder of the term? -
CORRECT ANSWER - Graduated payment mortgage
