PROPERTY LAW UPDATED 2026 EXAM SCRIPT
QUESTIONS AND SOLUTIONS RATED A+
✔✔Legal life estate - ✔✔Created by state law to protect spousal or homestead rights in
property.
✔✔Encumbrance - ✔✔A claim, charge, or liability that attaches to real estate.
✔✔Lien - ✔✔A charge against property that provides security for a debt or obligation of
the property owner.
✔✔Covenants, conditions, and restrictions (CC&Rs) - ✔✔Private limitations on the use
of land.
✔✔Easement - ✔✔A right to use the land of another.
✔✔Easement appurtenant - ✔✔Said to run with the land when title is transferred.
✔✔Dominant tenement - ✔✔The property that benefits from the easement.
✔✔Servient tenement - ✔✔The property that is burdened by the easement.
✔✔Easement by necessity - ✔✔Arises when land has no access to a street or public
way.
✔✔Easement by prescription - ✔✔Acquired when a claimant has used another's land
for the period required by law.
✔✔License - ✔✔A personal privilege to enter the land of another for a specific purpose.
✔✔Encroachment - ✔✔Occurs when all or part of a structure illegally intrudes on the
land of another.
✔✔Lis pendens - ✔✔Gives notice of litigation in progress that may affect title to
property.
✔✔Government powers acronym - ✔✔PETE: Police power, Eminent domain, Taxation,
Escheat.
✔✔Police power - ✔✔The state's authority to legislate to preserve order, protect the
public health and safety, and promote the general welfare of citizens.
✔✔Eminent domain - ✔✔The government's right to acquire privately owned real estate
for a public or economically beneficial use through condemnation.
, ✔✔Taxation - ✔✔Can include a charge on real estate to raise funds to meet public
needs.
✔✔Escheat - ✔✔Occurs when the state takes control of property after the owner dies
leaving no will or lawful heirs.
✔✔Real estate brokerage - ✔✔The business of bringing people together in a real estate
transaction conducted by a licensed real estate broker.
✔✔Real estate salesperson - ✔✔Conducts brokerage activities on behalf of the broker.
✔✔Appraisal - ✔✔The process of developing an opinion of a property's value based on
established methods and an appraiser's professional judgment.
✔✔Licensing or certification - ✔✔Required for many federally related transactions, and
many states require it for other transactions as well.
✔✔Property Management - ✔✔Conducted by a property manager, a person or
company hired to maintain and manage property on behalf of the property owner.
✔✔Financing - ✔✔The business of providing the funds that make real estate
transactions possible through loans secured by a mortgage or deed of trust on the
property.
✔✔Home Inspection - ✔✔An inspection report will show results of a thorough survey of
observable property conditions.
✔✔Real Estate Counseling - ✔✔Involves independent advice based on sound
professional judgment regarding how to buy, sell, or invest in property.
✔✔Types of Real Property - ✔✔Include residential, commercial, mixed use, industrial,
agricultural, and special purpose, which can be privately or publicly held.
✔✔Discrimination in Housing - ✔✔Prohibited by federal law in the provision of housing
and related services.
✔✔Real Estate Market - ✔✔Reflects the principle of supply and demand, influenced by
the uniqueness and immobility of parcels of real estate.
✔✔Supply and Demand - ✔✔When the supply increases relative to demand, prices go
down, and when demand increases relative to supply, prices go up.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Legal life estate - ✔✔Created by state law to protect spousal or homestead rights in
property.
✔✔Encumbrance - ✔✔A claim, charge, or liability that attaches to real estate.
✔✔Lien - ✔✔A charge against property that provides security for a debt or obligation of
the property owner.
✔✔Covenants, conditions, and restrictions (CC&Rs) - ✔✔Private limitations on the use
of land.
✔✔Easement - ✔✔A right to use the land of another.
✔✔Easement appurtenant - ✔✔Said to run with the land when title is transferred.
✔✔Dominant tenement - ✔✔The property that benefits from the easement.
✔✔Servient tenement - ✔✔The property that is burdened by the easement.
✔✔Easement by necessity - ✔✔Arises when land has no access to a street or public
way.
✔✔Easement by prescription - ✔✔Acquired when a claimant has used another's land
for the period required by law.
✔✔License - ✔✔A personal privilege to enter the land of another for a specific purpose.
✔✔Encroachment - ✔✔Occurs when all or part of a structure illegally intrudes on the
land of another.
✔✔Lis pendens - ✔✔Gives notice of litigation in progress that may affect title to
property.
✔✔Government powers acronym - ✔✔PETE: Police power, Eminent domain, Taxation,
Escheat.
✔✔Police power - ✔✔The state's authority to legislate to preserve order, protect the
public health and safety, and promote the general welfare of citizens.
✔✔Eminent domain - ✔✔The government's right to acquire privately owned real estate
for a public or economically beneficial use through condemnation.
, ✔✔Taxation - ✔✔Can include a charge on real estate to raise funds to meet public
needs.
✔✔Escheat - ✔✔Occurs when the state takes control of property after the owner dies
leaving no will or lawful heirs.
✔✔Real estate brokerage - ✔✔The business of bringing people together in a real estate
transaction conducted by a licensed real estate broker.
✔✔Real estate salesperson - ✔✔Conducts brokerage activities on behalf of the broker.
✔✔Appraisal - ✔✔The process of developing an opinion of a property's value based on
established methods and an appraiser's professional judgment.
✔✔Licensing or certification - ✔✔Required for many federally related transactions, and
many states require it for other transactions as well.
✔✔Property Management - ✔✔Conducted by a property manager, a person or
company hired to maintain and manage property on behalf of the property owner.
✔✔Financing - ✔✔The business of providing the funds that make real estate
transactions possible through loans secured by a mortgage or deed of trust on the
property.
✔✔Home Inspection - ✔✔An inspection report will show results of a thorough survey of
observable property conditions.
✔✔Real Estate Counseling - ✔✔Involves independent advice based on sound
professional judgment regarding how to buy, sell, or invest in property.
✔✔Types of Real Property - ✔✔Include residential, commercial, mixed use, industrial,
agricultural, and special purpose, which can be privately or publicly held.
✔✔Discrimination in Housing - ✔✔Prohibited by federal law in the provision of housing
and related services.
✔✔Real Estate Market - ✔✔Reflects the principle of supply and demand, influenced by
the uniqueness and immobility of parcels of real estate.
✔✔Supply and Demand - ✔✔When the supply increases relative to demand, prices go
down, and when demand increases relative to supply, prices go up.
