Real Estate License – Questions With Accurate
Solutions 2025\2026 A+ Grade
1031 Exchange - accurate answer-Exchanging like-kind property for like-kind
property, resulting in a deferral of capital gains tax; also called a tax-free
exchange
The 1988 Amendments to the Fair Housing Act - accurate answer-A federal
law passed adding two new protected classes; Handicap and Familial Status
Abstract - accurate answer-Written history of property
Acceleration Clause - accurate answer-A mortgage clause where a lender calls
a loan balance due and payable upon the happening of a certain event, like 3
months non-payment
Accretion - accurate answer-Gradual build-up of soil; person gains title to
added land built up on property
Real Estate - accurate answer-Your "bundle of rights" TITLE
Deed - accurate answer-Piece of paper that transfers real property rights from
one person to another
Who has rights in real property? - accurate answer-Government, Lender,
Railroad/Utilities
Land - accurate answer-A spot on the earth that goes down to the center of the
earth and up to infinity.(includes minerals unless otherwise stated)
Location - accurate answer-An economic characteristic of the land (location,
location, location)
Appurtenance - accurate answer-Anything permanently attached to the land
by man or by nature. RUNS WITH THE LAND
What does Appurtenace include? - accurate answer-RIP: Rights,
Improvements, Privileges
,Kinds of Appurtenaces - accurate answer--Natural (trees, pond)
-Man-made (house, FENCES, driveways)
-Mineral rights
-Air rights (the view included)
-Water rights (reasonable use - privilege to flowing water)
Easements - accurate answer-Run with the land
Personal property - accurate answer-Not REAL property
1) easily movable 2) Chattel (cattle)
Bill of Sale - accurate answer-A document used to transfer ownership of
personal property.
Changes between real and personal property - accurate answer-Severance,
Fixture, Trade fixtures, Emblements
Severance - accurate answer-Change of real property to personal property by
severing (tree > firewood)
Fixture - accurate answer-Taking personal property and making it real
property (installing a ceiling fan)
-Garage door remote!
-Key to gas firepit starter!
Swing sets - accurate answer-Personal property, even if set in cement because
it was done for safety of the children
Water softener, DISH satellite - accurate answer-Personal property of
company they are leased from
Trade fixtures - accurate answer-Personal property used in a business and can
be removed by the lessee when the lease terminates. If left after lease ends,
because personal property of the landlord
Emblements - accurate answer-Growing crop in a field that is producing
income AND must be an annual crop (ie. corn, oats) NOT orchards, vineyards,
, berry patches. Personal property of planter and they have right to harvest
once
Government Rights in real property - accurate answer-1) taxation
2) Police power
3) Eminent Domain
4) Escheat
Police power - accurate answer-Maintain order in a community - Zoning,
Building codes, flood maps
Flood maps - accurate answer-FEMA maps where everyone has a flood
number and some properties require flood insurance
Flood insurance - accurate answer-Separate policy for flood protection. NOT a
rider or included in house insurance policy
Eminent Domain - accurate answer-The right of government to take private
property for public good by paying fair market value.
Condemnation - accurate answer-The PROCESS used by the Gov to take
someone's property when exercising the right of eminent domain.
Escheat - accurate answer-The right of the government to take private
property upon the owner dying intestate without heirs or abandonment
Abandoment - accurate answer-When you leave a property and don't pay
taxes, then the government has the right to take the property (Escheat)
Estate - accurate answer-The degree, quantity, nature, and extent of
ownership interest a person has in real property.
POSESSORY RIGHTS
Freehold Estates - accurate answer-Ownership (lifetime)
Can be Fee or lifetime
Leasehold Estates - accurate answer-Renting or leasing (definite period of
time)
Personal property of the tenant
Solutions 2025\2026 A+ Grade
1031 Exchange - accurate answer-Exchanging like-kind property for like-kind
property, resulting in a deferral of capital gains tax; also called a tax-free
exchange
The 1988 Amendments to the Fair Housing Act - accurate answer-A federal
law passed adding two new protected classes; Handicap and Familial Status
Abstract - accurate answer-Written history of property
Acceleration Clause - accurate answer-A mortgage clause where a lender calls
a loan balance due and payable upon the happening of a certain event, like 3
months non-payment
Accretion - accurate answer-Gradual build-up of soil; person gains title to
added land built up on property
Real Estate - accurate answer-Your "bundle of rights" TITLE
Deed - accurate answer-Piece of paper that transfers real property rights from
one person to another
Who has rights in real property? - accurate answer-Government, Lender,
Railroad/Utilities
Land - accurate answer-A spot on the earth that goes down to the center of the
earth and up to infinity.(includes minerals unless otherwise stated)
Location - accurate answer-An economic characteristic of the land (location,
location, location)
Appurtenance - accurate answer-Anything permanently attached to the land
by man or by nature. RUNS WITH THE LAND
What does Appurtenace include? - accurate answer-RIP: Rights,
Improvements, Privileges
,Kinds of Appurtenaces - accurate answer--Natural (trees, pond)
-Man-made (house, FENCES, driveways)
-Mineral rights
-Air rights (the view included)
-Water rights (reasonable use - privilege to flowing water)
Easements - accurate answer-Run with the land
Personal property - accurate answer-Not REAL property
1) easily movable 2) Chattel (cattle)
Bill of Sale - accurate answer-A document used to transfer ownership of
personal property.
Changes between real and personal property - accurate answer-Severance,
Fixture, Trade fixtures, Emblements
Severance - accurate answer-Change of real property to personal property by
severing (tree > firewood)
Fixture - accurate answer-Taking personal property and making it real
property (installing a ceiling fan)
-Garage door remote!
-Key to gas firepit starter!
Swing sets - accurate answer-Personal property, even if set in cement because
it was done for safety of the children
Water softener, DISH satellite - accurate answer-Personal property of
company they are leased from
Trade fixtures - accurate answer-Personal property used in a business and can
be removed by the lessee when the lease terminates. If left after lease ends,
because personal property of the landlord
Emblements - accurate answer-Growing crop in a field that is producing
income AND must be an annual crop (ie. corn, oats) NOT orchards, vineyards,
, berry patches. Personal property of planter and they have right to harvest
once
Government Rights in real property - accurate answer-1) taxation
2) Police power
3) Eminent Domain
4) Escheat
Police power - accurate answer-Maintain order in a community - Zoning,
Building codes, flood maps
Flood maps - accurate answer-FEMA maps where everyone has a flood
number and some properties require flood insurance
Flood insurance - accurate answer-Separate policy for flood protection. NOT a
rider or included in house insurance policy
Eminent Domain - accurate answer-The right of government to take private
property for public good by paying fair market value.
Condemnation - accurate answer-The PROCESS used by the Gov to take
someone's property when exercising the right of eminent domain.
Escheat - accurate answer-The right of the government to take private
property upon the owner dying intestate without heirs or abandonment
Abandoment - accurate answer-When you leave a property and don't pay
taxes, then the government has the right to take the property (Escheat)
Estate - accurate answer-The degree, quantity, nature, and extent of
ownership interest a person has in real property.
POSESSORY RIGHTS
Freehold Estates - accurate answer-Ownership (lifetime)
Can be Fee or lifetime
Leasehold Estates - accurate answer-Renting or leasing (definite period of
time)
Personal property of the tenant
