NATIONAL REAL ESTATE EXAM 3
1. All of the following are properly described by the word "improvement"EXCEPT
A) Streets
B) A sanitary sewer system
C) Trade fixtures
D) The foundation of a building: C) Trade fixtures
2. Real property can become personal property by
A) severance.
B) purchase.
C) hypothecation.
D) attachment.: A) severance.
3. All of the following are physical characteristics of land EXCEPT
A) Indestructibility
B) Uniqueness
C) Immobility
D) Scarcity: D) Scarcity
4. A broker showed an owner-occupied property that had window screens,custom
venetian blinds, and a wall bed to a buyer whose offer was then accepted bythe owner.
Before the close of escrow, the seller may remove
A) all of the identified items because they are trade fixtures.
B) only the venetian blinds as personal property.
C) only the wall bed because it is real property.
D) none of the identified items.: D) none of the identified items.
5. Land is considered to be
A) indestructible.
B) a wasting asset.
C) immune to the forces of supply and demand.
D) subject to personal property rights.: A) indestructible.
6. A rancher owns a parcel of land on which oil is discovered. If the rancherhas not
previously conveyed the oil rights, who owns the oil?
A) The rancher
B) The tenant to whom the property has been leased
C) The state government
D) The federal government: A) The rancher
,7. The type of housing which can become permanent if affixed to the land iscalled
A) on-site built
B) semi-detached single family
C) manufactured
D) multi-family: C) manufactured
8. All of the following are treated as personal property EXCEPT
A) Chattels
B) Trade fixtures
C) Emblements
D) Fructus naturales: D) Fructus naturales
9. Fixtures are
A) treated as real property.
B) considered to be chattels.
C) removable by a tenant before the expiration of the lease.
D) removable by a tenant after the expiration of the lease.: A) treated as realproperty.
10. After the construction of a building in the air rights above a railroadright-of-way, the
trains can
A) operate as usual.
B) no longer use the tracks under the building.
C) use the tracks under the building only if they cause no problem for thebuilding's
occupants.
D) use the tracks under the building as long as they first obtain the buildingowner's
permission.: A) operate as usual.
11. All of the following are economic characteristics of land EXCEPT
A) scarcity.
B) permanence of investment.
C) uniqueness.
D) area preference.: C) uniqueness.
12. Generally, personal property can be distinguished from real property by its
A) greater variety.
B) mobility.
C) cost.
D) multiplicity of use.: B) mobility.
13. An important characteristic of land is that it may be modified or improvedat some point
in time. Depending on its type, an improvement may increase the value of realestate
,greatly. All of the following are considered to be improvements EXCEPT
A) Sewers
B) Crops
C) Buildings
D) Roads: B) Crops
14. Tonya leases store space to Klem for a restaurant, and Klem installs hisovens, booths,
counters, and other equipment. When would these items become real proper-ty?
A) After they are installed
B) After Klem defaults on his rental payments
C) After the lease takes effect
D) If Klem does not remove them at lease expiration: D) If Klem does not removethem at lease
expiration
15. Rights or privileges which are connected with real property, are
A) improvements
B) appurtenances
C) not conveyed with the real estate
D) restricted to air and water rights: B) appurtenances
16. The term improvements, when referring to real estate, would include
A) shrubbery.
B) trees.
C) sidewalks.
D) lawns.: C) sidewalks.
17. Which of the following is NOT a test to identify a fixture?
A) Intent of the parties
B) Size of the item
C) Method of attachment of the item
D) Adaptation of the item to the real estate: B) Size of the item
18. The owner of a house wants to fence the yard for her dog. When the fenceis erected, the
fencing materials are converted to real estate by
A) severance.
B) annexation.
C) immobility.
D) indestructibility.: B) annexation.
19. The uniqueness of land and its inability to be substituted is known as
A) Nonhomogenity
, B) Scarcity
C) Permanence of investment
D) Nonheterogenity: A) Nonhomogenity
20. The rights of ownership of real property include all of the following EX-
CEPT the rightof
A) disposition.
B) exclusion.
C) control.
D) compatibility.: D) compatibility.
21. A bill of sale is used to transfer the ownership of
A) real property.
B) fixtures.
C) personal property.
D) appurtenances.: C) personal property.
22. A real estate broker's responsibility to keep the principal informed of all ofthe facts that
could affect a transaction is the duty of
A) care.
B) disclosure.
C) obedience.
D) accounting.: B) disclosure.
23. Which of the following would be considered dual agency?
A) A broker's acting for both the buyer and the seller in the same transaction
B) Two brokerage companies' cooperating with each other
C) A broker's representing more than one principal
D) A broker's listing and then selling the same property: A) A broker's acting forboth the buyer
and the seller in the same transaction
24. The relationship of a broker to his or her client is that of a(n)
A) trustee.
B) subagent.
C) fiduciary.
D) attorney in fact.: C) fiduciary.
25. A real estate broker acting as the agent of the seller
A) must promote and safeguard the seller's best interest
B) can disclose the seller's minimum price.
C) should present to the seller only the highest offer for the property.
1. All of the following are properly described by the word "improvement"EXCEPT
A) Streets
B) A sanitary sewer system
C) Trade fixtures
D) The foundation of a building: C) Trade fixtures
2. Real property can become personal property by
A) severance.
B) purchase.
C) hypothecation.
D) attachment.: A) severance.
3. All of the following are physical characteristics of land EXCEPT
A) Indestructibility
B) Uniqueness
C) Immobility
D) Scarcity: D) Scarcity
4. A broker showed an owner-occupied property that had window screens,custom
venetian blinds, and a wall bed to a buyer whose offer was then accepted bythe owner.
Before the close of escrow, the seller may remove
A) all of the identified items because they are trade fixtures.
B) only the venetian blinds as personal property.
C) only the wall bed because it is real property.
D) none of the identified items.: D) none of the identified items.
5. Land is considered to be
A) indestructible.
B) a wasting asset.
C) immune to the forces of supply and demand.
D) subject to personal property rights.: A) indestructible.
6. A rancher owns a parcel of land on which oil is discovered. If the rancherhas not
previously conveyed the oil rights, who owns the oil?
A) The rancher
B) The tenant to whom the property has been leased
C) The state government
D) The federal government: A) The rancher
,7. The type of housing which can become permanent if affixed to the land iscalled
A) on-site built
B) semi-detached single family
C) manufactured
D) multi-family: C) manufactured
8. All of the following are treated as personal property EXCEPT
A) Chattels
B) Trade fixtures
C) Emblements
D) Fructus naturales: D) Fructus naturales
9. Fixtures are
A) treated as real property.
B) considered to be chattels.
C) removable by a tenant before the expiration of the lease.
D) removable by a tenant after the expiration of the lease.: A) treated as realproperty.
10. After the construction of a building in the air rights above a railroadright-of-way, the
trains can
A) operate as usual.
B) no longer use the tracks under the building.
C) use the tracks under the building only if they cause no problem for thebuilding's
occupants.
D) use the tracks under the building as long as they first obtain the buildingowner's
permission.: A) operate as usual.
11. All of the following are economic characteristics of land EXCEPT
A) scarcity.
B) permanence of investment.
C) uniqueness.
D) area preference.: C) uniqueness.
12. Generally, personal property can be distinguished from real property by its
A) greater variety.
B) mobility.
C) cost.
D) multiplicity of use.: B) mobility.
13. An important characteristic of land is that it may be modified or improvedat some point
in time. Depending on its type, an improvement may increase the value of realestate
,greatly. All of the following are considered to be improvements EXCEPT
A) Sewers
B) Crops
C) Buildings
D) Roads: B) Crops
14. Tonya leases store space to Klem for a restaurant, and Klem installs hisovens, booths,
counters, and other equipment. When would these items become real proper-ty?
A) After they are installed
B) After Klem defaults on his rental payments
C) After the lease takes effect
D) If Klem does not remove them at lease expiration: D) If Klem does not removethem at lease
expiration
15. Rights or privileges which are connected with real property, are
A) improvements
B) appurtenances
C) not conveyed with the real estate
D) restricted to air and water rights: B) appurtenances
16. The term improvements, when referring to real estate, would include
A) shrubbery.
B) trees.
C) sidewalks.
D) lawns.: C) sidewalks.
17. Which of the following is NOT a test to identify a fixture?
A) Intent of the parties
B) Size of the item
C) Method of attachment of the item
D) Adaptation of the item to the real estate: B) Size of the item
18. The owner of a house wants to fence the yard for her dog. When the fenceis erected, the
fencing materials are converted to real estate by
A) severance.
B) annexation.
C) immobility.
D) indestructibility.: B) annexation.
19. The uniqueness of land and its inability to be substituted is known as
A) Nonhomogenity
, B) Scarcity
C) Permanence of investment
D) Nonheterogenity: A) Nonhomogenity
20. The rights of ownership of real property include all of the following EX-
CEPT the rightof
A) disposition.
B) exclusion.
C) control.
D) compatibility.: D) compatibility.
21. A bill of sale is used to transfer the ownership of
A) real property.
B) fixtures.
C) personal property.
D) appurtenances.: C) personal property.
22. A real estate broker's responsibility to keep the principal informed of all ofthe facts that
could affect a transaction is the duty of
A) care.
B) disclosure.
C) obedience.
D) accounting.: B) disclosure.
23. Which of the following would be considered dual agency?
A) A broker's acting for both the buyer and the seller in the same transaction
B) Two brokerage companies' cooperating with each other
C) A broker's representing more than one principal
D) A broker's listing and then selling the same property: A) A broker's acting forboth the buyer
and the seller in the same transaction
24. The relationship of a broker to his or her client is that of a(n)
A) trustee.
B) subagent.
C) fiduciary.
D) attorney in fact.: C) fiduciary.
25. A real estate broker acting as the agent of the seller
A) must promote and safeguard the seller's best interest
B) can disclose the seller's minimum price.
C) should present to the seller only the highest offer for the property.
