REAL ESTATE - DEFINITION EXAM
1. The earth's surface extending downward to the center of the earth and
upward into space, including all things permanently attached, is known as:
1 A bundle of legal rights
2 Land
3 Real estate
4 Real property - answer-Real Estate "The correct answer to this is real estate,
but the terms real property and land are often confused with the term "real
estate." However, "land" is a more specific definition, since it includes the earth's
surface and all things attached by nature; while "real property" actually is the
"bundle of legal rights of ownership"
10. A person who has complete control over a parcel of real estate is said to own
a:
1 life estate.
2 defeasible fee estate.
3 fee simple estate.
4 leasehold estate. - answer-fee simple estate. "Fee Simple, also known as fee
simple absolute is known as the highest degree of ownership. The other "estate"
terms are all much more limited forms of ownership - a life estate expires over
time, a leasehold estate has a definite term, and a defeasible estate is limited by
a certain event happening."
100. Addition to the land through natural causes, usually by a change in water
flow.
1 annexation
2 accretion
3 acquisition
4 accession - answer-Accretion "Remember, accretion always has to do with
natural causes, like a river or creek (think "accreektion"), while accession is the
acquisition of title as a result of annexation of fixtures or accretion."
11. The law that requires real estate contracts to be in writing to be enforceable
is the
1 parole evidence rule.
2 law of descent and distribution.
3 statute of limitations.
4 statute of frauds. - answer-Statute of frauds. "Under the Statute of Frauds,
contracts for sale of real property must be in writing to be enforceable -- this is to
prevent FRAUD from occurring. Don't confuse this with the statute of limitations,
which sets limits on the time in which actions may be brought against a person;
constitutional law, which is the law arising from the federal and state
constitutions; or descent, a term used in conjunction with inheritances."
12. The effort that brings about the desired result in a real estate sale is known
as:
1 REALTOR
2 procuring broker
3 principal
4 procuring cause - answer-procuring cause "Procuring cause of sale is the effort
that brings about the desired result - in this instance, a ready, willing, and able
buyer. The other terms refer to people - a principal is the person for whom the
,broker works, while a REALTOR is a member of the National Association of
REALTORS. The term "procuring broker" isn't a term used in real estate at all."
13. A naturally occurring gas that is suspected of causing lung cancer is known
as:
1 Polychlorinated biphenyls (PCBs)
2 radon
3 asbestos
4 lead based paint - answer-radon "While each of these items are environmental
hazards, radon is the radioactive, odorless, tasteless gas produced by the natural
decay of other radioactive substances. The rest of the items are not gas hazards,
but solid ones - asbestos is a mineral, lead-based paint is paint (as the name
states), and PCBs involve electrical equipment."
14. A claim or liability attached to a property is called:
1 a buyer's claim
2 an easement
3 an encumbrance
4 a lien - answer-an encumbrance. "Remember that an encumbrance is any
claim against a property. Restrictions, liens, and buyer's claims (also known as a
vendee's lien) are all FORMS of encumbrances."
15. In an appurtenant easement, the party that benefits is known as the:
1 dominant tenement
2 servient tenement
3 leaser
4 lessee - answer-dominant tenement "The person whose land is benefited by
the easement, and therefore is the DOMINATING PARTY, is considered the
dominant tenement. The servient tenement is the opposite of this. Leaser and
leasee involve lease agreements, and have nothing to do with easements."
16. An encumbrance that affects the title, usually related to money, is known as:
1 an easement by prescription
2 an easement by necessity
3 an easement in gross
4 a lien - answer-a lien "A lien is a charge against a property -- a financial
encumbrance. The other easements listed here do not deal with finances, but are
considered usage encumbrances and affect the way in which the land may be
USED."
17. A recorded legal document that gives constructive notice that an action
affecting a certain property has been filed in court is called:
1 lis pendens
2 estoppel certificate
3 general warranty deed
4 habendum clause - answer-lis pendens "Lis pendens is Latin for "litigation
pending," which will help you to remember that while a lis pendens isn't a lien, it
is notice that litigation (a possible lien) is pending. The other terms listed deal
with deeds (habendum clause and general warranty deed), or mortgages
(estoppel certificate)."
18. This document that defines the relationship between the real estate firm and
the seller is the:
1 disclosure statement
, 2 purchase contract
3 exclusive agency contract
4 listing agreement - answer-listing agreement "While disclosure statements,
purchase contracts, and even exclusive agency contracts are also legal
documents that the broker or salesperson enters into with the clients, but it is
the listing agreement that clearly defines the relationships and agreements
between the broker and principal."
19. The rights of a landowner to use waters of an adjacent stream or river are
known as:
1 livery of seisin
2 littoral rights
3 zoning rights
4 riparian rights - answer-riparian rights "While both riparian and littoral rights
have to do with water, remember that riparian rights have to do with FLOWING
bodies of water, such as rivers. (You might keep in mind that River and Riparian
both begin the same way.) Zoning and seisin both deal with land control."
2. Movable objects, which are not considered real estate, are known as:
1 Emblements
2 Fixtures
3 Personal property
4 Real property - answer-Personal property "Personal property is something that
belongs to a PERSON, and that a PERSON could take with him when moving.
Don't confuse this with real property, which is permanently affixed (and could be
considered the opposite of personal property). Remember that a fixture is an
article of personal property that has become permanently attached to land or a
building, and then becomes a part of the real estate. While emblements are
generally considered personal property, this term refers specifically to annual
crops on a property."
20. The rights of a landowner to use waters of an adjacent lake or ocean are
known as:
1 livery of seisin
2 littoral rights
3 zoning rights
4 riparian rights - answer-littoral rights "Again, while both riparian and littoral
rights concern water, littoral rights specifically apply to nonmoving bodies of
water, like lakes and oceans. Zoning and seisin both deal with land control."
21. A claim or interest revealed by a title search is called a:
1 lis pendens
2 judgment
3 lien
4 cloud on title - answer-cloud on title "It's easy to remember a cloud on a title as
something marring the clear title, like a cloud in the sky marring an otherwise
clear sky. These terms are all related, however, since lis pendens is the
notification that a lien might be placed on a title, or, in other words, that there is
a CLOUD on the title. (A judgment is another type of lien against a property,
issued by a court.)"
22. When the amortized payment of a mortgage remains constant over the
period of the loan but leaves an outstanding balance to be paid at the end, this
payment is called:
1. The earth's surface extending downward to the center of the earth and
upward into space, including all things permanently attached, is known as:
1 A bundle of legal rights
2 Land
3 Real estate
4 Real property - answer-Real Estate "The correct answer to this is real estate,
but the terms real property and land are often confused with the term "real
estate." However, "land" is a more specific definition, since it includes the earth's
surface and all things attached by nature; while "real property" actually is the
"bundle of legal rights of ownership"
10. A person who has complete control over a parcel of real estate is said to own
a:
1 life estate.
2 defeasible fee estate.
3 fee simple estate.
4 leasehold estate. - answer-fee simple estate. "Fee Simple, also known as fee
simple absolute is known as the highest degree of ownership. The other "estate"
terms are all much more limited forms of ownership - a life estate expires over
time, a leasehold estate has a definite term, and a defeasible estate is limited by
a certain event happening."
100. Addition to the land through natural causes, usually by a change in water
flow.
1 annexation
2 accretion
3 acquisition
4 accession - answer-Accretion "Remember, accretion always has to do with
natural causes, like a river or creek (think "accreektion"), while accession is the
acquisition of title as a result of annexation of fixtures or accretion."
11. The law that requires real estate contracts to be in writing to be enforceable
is the
1 parole evidence rule.
2 law of descent and distribution.
3 statute of limitations.
4 statute of frauds. - answer-Statute of frauds. "Under the Statute of Frauds,
contracts for sale of real property must be in writing to be enforceable -- this is to
prevent FRAUD from occurring. Don't confuse this with the statute of limitations,
which sets limits on the time in which actions may be brought against a person;
constitutional law, which is the law arising from the federal and state
constitutions; or descent, a term used in conjunction with inheritances."
12. The effort that brings about the desired result in a real estate sale is known
as:
1 REALTOR
2 procuring broker
3 principal
4 procuring cause - answer-procuring cause "Procuring cause of sale is the effort
that brings about the desired result - in this instance, a ready, willing, and able
buyer. The other terms refer to people - a principal is the person for whom the
,broker works, while a REALTOR is a member of the National Association of
REALTORS. The term "procuring broker" isn't a term used in real estate at all."
13. A naturally occurring gas that is suspected of causing lung cancer is known
as:
1 Polychlorinated biphenyls (PCBs)
2 radon
3 asbestos
4 lead based paint - answer-radon "While each of these items are environmental
hazards, radon is the radioactive, odorless, tasteless gas produced by the natural
decay of other radioactive substances. The rest of the items are not gas hazards,
but solid ones - asbestos is a mineral, lead-based paint is paint (as the name
states), and PCBs involve electrical equipment."
14. A claim or liability attached to a property is called:
1 a buyer's claim
2 an easement
3 an encumbrance
4 a lien - answer-an encumbrance. "Remember that an encumbrance is any
claim against a property. Restrictions, liens, and buyer's claims (also known as a
vendee's lien) are all FORMS of encumbrances."
15. In an appurtenant easement, the party that benefits is known as the:
1 dominant tenement
2 servient tenement
3 leaser
4 lessee - answer-dominant tenement "The person whose land is benefited by
the easement, and therefore is the DOMINATING PARTY, is considered the
dominant tenement. The servient tenement is the opposite of this. Leaser and
leasee involve lease agreements, and have nothing to do with easements."
16. An encumbrance that affects the title, usually related to money, is known as:
1 an easement by prescription
2 an easement by necessity
3 an easement in gross
4 a lien - answer-a lien "A lien is a charge against a property -- a financial
encumbrance. The other easements listed here do not deal with finances, but are
considered usage encumbrances and affect the way in which the land may be
USED."
17. A recorded legal document that gives constructive notice that an action
affecting a certain property has been filed in court is called:
1 lis pendens
2 estoppel certificate
3 general warranty deed
4 habendum clause - answer-lis pendens "Lis pendens is Latin for "litigation
pending," which will help you to remember that while a lis pendens isn't a lien, it
is notice that litigation (a possible lien) is pending. The other terms listed deal
with deeds (habendum clause and general warranty deed), or mortgages
(estoppel certificate)."
18. This document that defines the relationship between the real estate firm and
the seller is the:
1 disclosure statement
, 2 purchase contract
3 exclusive agency contract
4 listing agreement - answer-listing agreement "While disclosure statements,
purchase contracts, and even exclusive agency contracts are also legal
documents that the broker or salesperson enters into with the clients, but it is
the listing agreement that clearly defines the relationships and agreements
between the broker and principal."
19. The rights of a landowner to use waters of an adjacent stream or river are
known as:
1 livery of seisin
2 littoral rights
3 zoning rights
4 riparian rights - answer-riparian rights "While both riparian and littoral rights
have to do with water, remember that riparian rights have to do with FLOWING
bodies of water, such as rivers. (You might keep in mind that River and Riparian
both begin the same way.) Zoning and seisin both deal with land control."
2. Movable objects, which are not considered real estate, are known as:
1 Emblements
2 Fixtures
3 Personal property
4 Real property - answer-Personal property "Personal property is something that
belongs to a PERSON, and that a PERSON could take with him when moving.
Don't confuse this with real property, which is permanently affixed (and could be
considered the opposite of personal property). Remember that a fixture is an
article of personal property that has become permanently attached to land or a
building, and then becomes a part of the real estate. While emblements are
generally considered personal property, this term refers specifically to annual
crops on a property."
20. The rights of a landowner to use waters of an adjacent lake or ocean are
known as:
1 livery of seisin
2 littoral rights
3 zoning rights
4 riparian rights - answer-littoral rights "Again, while both riparian and littoral
rights concern water, littoral rights specifically apply to nonmoving bodies of
water, like lakes and oceans. Zoning and seisin both deal with land control."
21. A claim or interest revealed by a title search is called a:
1 lis pendens
2 judgment
3 lien
4 cloud on title - answer-cloud on title "It's easy to remember a cloud on a title as
something marring the clear title, like a cloud in the sky marring an otherwise
clear sky. These terms are all related, however, since lis pendens is the
notification that a lien might be placed on a title, or, in other words, that there is
a CLOUD on the title. (A judgment is another type of lien against a property,
issued by a court.)"
22. When the amortized payment of a mortgage remains constant over the
period of the loan but leaves an outstanding balance to be paid at the end, this
payment is called:
