PSI Real Estate Test MA - State Portion
Only
A farmer temporarily installs produce coolers in a leased farm stand in order to prevent
spoilage. The coolers would be considered which of the following? - answer Trade
fixtures that are personal property
Property can be converted from real to personal property and from personal to real
property by means of which processes, respectively? - answer Severance and affixing
The highest form of ownership interest one can acquire in real estate is the... - answer
Absolute fee simple estate
The distinguishing feature of a defeasible fee simple estate is the... - answer The estate
may revert to a grantor or heirs of the prescribed usage changes
Maria acquires a property from her uncle Alfonso. When Maria dies, the estate will pass
to Alfonsos other niece, Serena. The type of estate that Maria has in the property is a -
answerConventional life estate
One difference between a cooperative estate and a condominium estate is that -
answerA condominium owner owns a unit of air space whereas the coop owner owns a
proprietary lease
Who are the essential parties involved in an estate in trust? - answerTrustor, trustee,
and beneficiary
A condominium owner enjoys... - answerFee simple ownership of the airspace in a unit
and an undivided share of the entire property's common areas
With various types of junior liens, the order of payment priority is generally established
according to - answerThe date of recordation
What is a lien-theory state in contrast to a title-theory state? - answerA state in which a
mortgager retains title to the property when a mortgage lien is created
A property owner has an easement appurtenant on her property. On day the property is
sold to another party who is opposed to the easement. Following the closing, this
particular form of easement... - answerTransfers with the property
What fundamental legal purpose is fulfilled by title records? - answerGiving constructive
notice of ones rights and interests in the property
, What is "chain of title?" - answerA chronology of successive owners of record of a
parcel of real estate
Which of the following provides the strongest evidence of a marketable title? -
answerTitle insurance
A store owner enters into a lease that charges rent per square foot, a common area fee,
and a portion of the store owners gross income from the property, this kind of lease is
a... - answerPercentage lease
An owner leases a property to a business in exchange for rent. The tenant is required to
pay all operating expenses as well. This is an example of a... - answerNet lease
A lease automatically terminates under which of the following circumstances? -
answerThe tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - answerThe construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - answerTakes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates that
the forested portion of the property must never be razed for development. Three months
later, Rycole proceeds to harvest the trees and turn the area into an effective golf
course. What recourse, if any, does Emily have under the deed condition? - answerShe
has the right to re-possess the property because the grantee has violated the condition
What is the essential purpose of legal descriptions of real property? - answerTo create a
consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - answerThey identify an enclosed
area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a contingency
to procure financing. The buyer extends the financing period in the offer by one week,
signs the form, and mails it back to the seller. At this point the sellers offer... - answerIs
void
Real estate contracts that are not personal service contracts - answerMay be assigned
Which of the following contracts must be in writing to be enforceable? - answerA two-
year lease
Only
A farmer temporarily installs produce coolers in a leased farm stand in order to prevent
spoilage. The coolers would be considered which of the following? - answer Trade
fixtures that are personal property
Property can be converted from real to personal property and from personal to real
property by means of which processes, respectively? - answer Severance and affixing
The highest form of ownership interest one can acquire in real estate is the... - answer
Absolute fee simple estate
The distinguishing feature of a defeasible fee simple estate is the... - answer The estate
may revert to a grantor or heirs of the prescribed usage changes
Maria acquires a property from her uncle Alfonso. When Maria dies, the estate will pass
to Alfonsos other niece, Serena. The type of estate that Maria has in the property is a -
answerConventional life estate
One difference between a cooperative estate and a condominium estate is that -
answerA condominium owner owns a unit of air space whereas the coop owner owns a
proprietary lease
Who are the essential parties involved in an estate in trust? - answerTrustor, trustee,
and beneficiary
A condominium owner enjoys... - answerFee simple ownership of the airspace in a unit
and an undivided share of the entire property's common areas
With various types of junior liens, the order of payment priority is generally established
according to - answerThe date of recordation
What is a lien-theory state in contrast to a title-theory state? - answerA state in which a
mortgager retains title to the property when a mortgage lien is created
A property owner has an easement appurtenant on her property. On day the property is
sold to another party who is opposed to the easement. Following the closing, this
particular form of easement... - answerTransfers with the property
What fundamental legal purpose is fulfilled by title records? - answerGiving constructive
notice of ones rights and interests in the property
, What is "chain of title?" - answerA chronology of successive owners of record of a
parcel of real estate
Which of the following provides the strongest evidence of a marketable title? -
answerTitle insurance
A store owner enters into a lease that charges rent per square foot, a common area fee,
and a portion of the store owners gross income from the property, this kind of lease is
a... - answerPercentage lease
An owner leases a property to a business in exchange for rent. The tenant is required to
pay all operating expenses as well. This is an example of a... - answerNet lease
A lease automatically terminates under which of the following circumstances? -
answerThe tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - answerThe construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - answerTakes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates that
the forested portion of the property must never be razed for development. Three months
later, Rycole proceeds to harvest the trees and turn the area into an effective golf
course. What recourse, if any, does Emily have under the deed condition? - answerShe
has the right to re-possess the property because the grantee has violated the condition
What is the essential purpose of legal descriptions of real property? - answerTo create a
consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - answerThey identify an enclosed
area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a contingency
to procure financing. The buyer extends the financing period in the offer by one week,
signs the form, and mails it back to the seller. At this point the sellers offer... - answerIs
void
Real estate contracts that are not personal service contracts - answerMay be assigned
Which of the following contracts must be in writing to be enforceable? - answerA two-
year lease
