DRE FINAL KNOWLEDGE EXAM
120 Multiple-Choice Questions with Answers and Rationales
1. Which of the following best defines real property?
A. Movable items not permanently attached to land
B. Land and everything permanently attached to it, plus the rights that go with
ownership
C. Only the surface of the earth, excluding air and mineral rights
D. Any item that can be sold at a garage sale
Correct Answer: B
Rationale: Real property includes the land itself, permanent attachments
(improvements and fixtures), and the bundle of legal rights associated with ownership,
such as the rights to possess, use, enjoy, and dispose of the property.
2. A dishwasher installed by a tenant and bolted to the cabinetry is best
classified as a:
A. Trade fixture
B. Chattel
C. Fixture
D. Riparian right
Correct Answer: C
Rationale: Once personal property is permanently affixed to real property with the
intent to make it a permanent part of the premises, it becomes a fixture and legally
transfers with the real estate unless otherwise agreed.
3. The right of an owner to use water from a stream that runs through or borders
their property is called:
A. Riparian rights
B. Littoral rights
C. Police power
D. Escheat
Correct Answer: A
Rationale: Riparian rights apply to owners of land bordering flowing water such as
rivers and streams, granting reasonable use of the water. Littoral rights, by contrast,
apply to land bordering non-flowing bodies such as lakes and oceans.
,4. A freehold estate that lasts for the life of the owner and then passes back to
the original grantor is a:
A. Fee simple absolute
B. Life estate with reversion
C. Estate for years
D. Periodic tenancy
Correct Answer: B
Rationale: A life estate grants ownership for the duration of a measuring life. If the
property returns to the original grantor upon the life tenant's death, the grantor retains a
reversionary interest.
5. The highest form of ownership interest a person can hold in real property is:
A. Fee simple absolute
B. Leasehold estate
C. Life estate
D. Estate at will
Correct Answer: A
Rationale: Fee simple absolute is the most complete form of ownership, giving the
holder unconditional and unlimited power to dispose of the property and it passes to
heirs without restriction.
6. Which type of legal description identifies property using distances and
directions from a point of beginning?
A. Government survey (rectangular survey) system
B. Lot and block system
C. Metes and bounds
D. Street address system
Correct Answer: C
Rationale: Metes and bounds descriptions trace a property's perimeter using compass
directions and distances, starting and ending at a fixed point of beginning.
,7. In the government (rectangular) survey system, a township is divided into how
many sections?
A. 16
B. 24
C. 36
D. 40
Correct Answer: C
Rationale: A township is a 6-mile by 6-mile square divided into 36 sections, each one
mile square and containing 640 acres.
8. A tenancy that automatically renews for successive equal periods, such as
month-to-month, is known as:
A. Estate for years
B. Periodic tenancy
C. Tenancy at sufferance
D. Tenancy at will
Correct Answer: B
Rationale: A periodic tenancy continues for successive periods (such as week-to-week
or month-to-month) until either party gives proper notice to terminate.
9. Air rights and mineral rights are examples of:
A. Personal property
B. Subsurface easements only
C. Divisible interests within the bundle of rights
D. Encroachments
Correct Answer: C
Rationale: Ownership of real property can be divided into separate estates, such as
surface, subsurface (mineral), and air rights, each of which may be sold, leased, or
retained separately.
, 10. A tenant who remains in possession after a lease expires without the
landlord's consent holds a:
A. Tenancy at sufferance
B. Tenancy at will
C. Estate for years
D. Joint tenancy
Correct Answer: A
Rationale: A tenancy at sufferance arises when a tenant who lawfully entered
continues to occupy the premises after the lease term ends without the landlord's
permission, making them a holdover.
11. Which of the following is an example of personal property (chattel)?
A. A built-in bookshelf attached to the wall
B. Freestanding furniture
C. An in-ground swimming pool
D. A mature oak tree
Correct Answer: B
Rationale: Freestanding furniture is movable and not permanently attached to the real
estate, so it remains personal property rather than becoming a fixture.
12. The legal doctrine that determines whether an item is a fixture generally
considers all of the following EXCEPT:
A. Method of attachment
B. Intent of the party who installed it
C. Adaptability to the property's use
D. The original purchase price of the item
Correct Answer: D
Rationale: Courts typically weigh the method and permanence of attachment, the intent
of the installing party, and the item's adaptation to the property's use — not the item's
original cost.
120 Multiple-Choice Questions with Answers and Rationales
1. Which of the following best defines real property?
A. Movable items not permanently attached to land
B. Land and everything permanently attached to it, plus the rights that go with
ownership
C. Only the surface of the earth, excluding air and mineral rights
D. Any item that can be sold at a garage sale
Correct Answer: B
Rationale: Real property includes the land itself, permanent attachments
(improvements and fixtures), and the bundle of legal rights associated with ownership,
such as the rights to possess, use, enjoy, and dispose of the property.
2. A dishwasher installed by a tenant and bolted to the cabinetry is best
classified as a:
A. Trade fixture
B. Chattel
C. Fixture
D. Riparian right
Correct Answer: C
Rationale: Once personal property is permanently affixed to real property with the
intent to make it a permanent part of the premises, it becomes a fixture and legally
transfers with the real estate unless otherwise agreed.
3. The right of an owner to use water from a stream that runs through or borders
their property is called:
A. Riparian rights
B. Littoral rights
C. Police power
D. Escheat
Correct Answer: A
Rationale: Riparian rights apply to owners of land bordering flowing water such as
rivers and streams, granting reasonable use of the water. Littoral rights, by contrast,
apply to land bordering non-flowing bodies such as lakes and oceans.
,4. A freehold estate that lasts for the life of the owner and then passes back to
the original grantor is a:
A. Fee simple absolute
B. Life estate with reversion
C. Estate for years
D. Periodic tenancy
Correct Answer: B
Rationale: A life estate grants ownership for the duration of a measuring life. If the
property returns to the original grantor upon the life tenant's death, the grantor retains a
reversionary interest.
5. The highest form of ownership interest a person can hold in real property is:
A. Fee simple absolute
B. Leasehold estate
C. Life estate
D. Estate at will
Correct Answer: A
Rationale: Fee simple absolute is the most complete form of ownership, giving the
holder unconditional and unlimited power to dispose of the property and it passes to
heirs without restriction.
6. Which type of legal description identifies property using distances and
directions from a point of beginning?
A. Government survey (rectangular survey) system
B. Lot and block system
C. Metes and bounds
D. Street address system
Correct Answer: C
Rationale: Metes and bounds descriptions trace a property's perimeter using compass
directions and distances, starting and ending at a fixed point of beginning.
,7. In the government (rectangular) survey system, a township is divided into how
many sections?
A. 16
B. 24
C. 36
D. 40
Correct Answer: C
Rationale: A township is a 6-mile by 6-mile square divided into 36 sections, each one
mile square and containing 640 acres.
8. A tenancy that automatically renews for successive equal periods, such as
month-to-month, is known as:
A. Estate for years
B. Periodic tenancy
C. Tenancy at sufferance
D. Tenancy at will
Correct Answer: B
Rationale: A periodic tenancy continues for successive periods (such as week-to-week
or month-to-month) until either party gives proper notice to terminate.
9. Air rights and mineral rights are examples of:
A. Personal property
B. Subsurface easements only
C. Divisible interests within the bundle of rights
D. Encroachments
Correct Answer: C
Rationale: Ownership of real property can be divided into separate estates, such as
surface, subsurface (mineral), and air rights, each of which may be sold, leased, or
retained separately.
, 10. A tenant who remains in possession after a lease expires without the
landlord's consent holds a:
A. Tenancy at sufferance
B. Tenancy at will
C. Estate for years
D. Joint tenancy
Correct Answer: A
Rationale: A tenancy at sufferance arises when a tenant who lawfully entered
continues to occupy the premises after the lease term ends without the landlord's
permission, making them a holdover.
11. Which of the following is an example of personal property (chattel)?
A. A built-in bookshelf attached to the wall
B. Freestanding furniture
C. An in-ground swimming pool
D. A mature oak tree
Correct Answer: B
Rationale: Freestanding furniture is movable and not permanently attached to the real
estate, so it remains personal property rather than becoming a fixture.
12. The legal doctrine that determines whether an item is a fixture generally
considers all of the following EXCEPT:
A. Method of attachment
B. Intent of the party who installed it
C. Adaptability to the property's use
D. The original purchase price of the item
Correct Answer: D
Rationale: Courts typically weigh the method and permanence of attachment, the intent
of the installing party, and the item's adaptation to the property's use — not the item's
original cost.
