PEARSON VUE EXAM QUESTIONS AND ANSWERS
Real property interests include... - Answer -an appurtenance that goes with the land.
Examples: buildings, fences, trees, water rights, the ground below, mineral rights, air
rights, easements
What is a form of ownership that is restricted to husbands and wives? - Answer -
Tenancy by the entirety.
Each owns the entire parcel. Neither can separately convey and interest during the
other's life time. On the death of a spouse, the survivor owns the property
Divorce would change this ownership to a tenancy in common
What would result from a condition in a deed?
a. fee simple
b. defeasible fee
c. chattels real.
d. nonfreehold estate - Answer -B. Defeasible Fee
Fee simple determinable is a defeasible estate that could be lost lost upon the
happening of a specified condition.
If a deed specifies that a grant shall be only "for as long as"; or while a property is in a
particular use, the length of the estate is really determined by the deed
J installed central air-conditioning in his home. the compressor unit, which was located
outside the home, would be regarded as what? - Answer -Real property
an investor's personal assets could be subject to a creditor's claim in a... - Answer -
General Partnership
which would be classified as real property?
A. Trade Fixtures
B. Chattels Real
C. Water rights
D. Mortgages - Answer -C. Water Rights
What are three of the tests of a fixture? - Answer -1. Adaptability: Legal rather than a
physical attachment. If an item is reasonably necessary for the normal use of the
property, it probably is a fixture, even though it is not attached
, 2. Intent: Intent is considered the most important test of a fixture when there isn't an
agreement. Did the parties intend that property would become part of the real estate?
Can be hard to prove intent.
3. Attachment: Can the item be removed w/o causing major damage to the real
property? Is the method of attachment of a permanent nature?
4. Agreement: A written agreement of the parties as to whether an item is a fixture and
shall remain with the real estate or shall be regarded as personal property will govern
the character of the property between the parties.
All of the ownership rights that transfer with a fee simple estate are known as - Answer
-bundle of rights
Items that were formerly personal property but are now regarded as real property would
be described as - Answer -Fixtures
An example of a real property security would be
A.Condominiums sold with a mandatory rental pool arrangement
B. General partnership shares in investment property
C. a Pur Autre Vie Estate
D. A vested remainder interest - Answer -A. Condos sold with a mandatory rental pool
arrangement
Real property security: Investors are inactive participants, such as limited partnerships,
investment contracts, and real estate investments trusts.
Condos sold as investments with a mandatory rental pool agreement are also real
property securities because the investor gives up management control to another.
What are real property securities? - Answer -Investment in which investors are inactive
participants, such as limited partnerships, investment contracts, and real estate
investments trusts.
Condos sold as investments with a mandatory rental pool agreement are also real
property securities because the investor gives up management control to another.
Part of a legal description on a deed stated " 38 degrees 7'". What type of description
was it? - Answer -Metes and bounds
An active partner and has unlimited personal liability for the debts of the partnership.
One general partner can personally obligate the other general partners (Part of Tenancy
in Partnership)
How does an S corporation differ from other corporations? - Answer -Its investors have
no personal liability
Real property interests include... - Answer -an appurtenance that goes with the land.
Examples: buildings, fences, trees, water rights, the ground below, mineral rights, air
rights, easements
What is a form of ownership that is restricted to husbands and wives? - Answer -
Tenancy by the entirety.
Each owns the entire parcel. Neither can separately convey and interest during the
other's life time. On the death of a spouse, the survivor owns the property
Divorce would change this ownership to a tenancy in common
What would result from a condition in a deed?
a. fee simple
b. defeasible fee
c. chattels real.
d. nonfreehold estate - Answer -B. Defeasible Fee
Fee simple determinable is a defeasible estate that could be lost lost upon the
happening of a specified condition.
If a deed specifies that a grant shall be only "for as long as"; or while a property is in a
particular use, the length of the estate is really determined by the deed
J installed central air-conditioning in his home. the compressor unit, which was located
outside the home, would be regarded as what? - Answer -Real property
an investor's personal assets could be subject to a creditor's claim in a... - Answer -
General Partnership
which would be classified as real property?
A. Trade Fixtures
B. Chattels Real
C. Water rights
D. Mortgages - Answer -C. Water Rights
What are three of the tests of a fixture? - Answer -1. Adaptability: Legal rather than a
physical attachment. If an item is reasonably necessary for the normal use of the
property, it probably is a fixture, even though it is not attached
, 2. Intent: Intent is considered the most important test of a fixture when there isn't an
agreement. Did the parties intend that property would become part of the real estate?
Can be hard to prove intent.
3. Attachment: Can the item be removed w/o causing major damage to the real
property? Is the method of attachment of a permanent nature?
4. Agreement: A written agreement of the parties as to whether an item is a fixture and
shall remain with the real estate or shall be regarded as personal property will govern
the character of the property between the parties.
All of the ownership rights that transfer with a fee simple estate are known as - Answer
-bundle of rights
Items that were formerly personal property but are now regarded as real property would
be described as - Answer -Fixtures
An example of a real property security would be
A.Condominiums sold with a mandatory rental pool arrangement
B. General partnership shares in investment property
C. a Pur Autre Vie Estate
D. A vested remainder interest - Answer -A. Condos sold with a mandatory rental pool
arrangement
Real property security: Investors are inactive participants, such as limited partnerships,
investment contracts, and real estate investments trusts.
Condos sold as investments with a mandatory rental pool agreement are also real
property securities because the investor gives up management control to another.
What are real property securities? - Answer -Investment in which investors are inactive
participants, such as limited partnerships, investment contracts, and real estate
investments trusts.
Condos sold as investments with a mandatory rental pool agreement are also real
property securities because the investor gives up management control to another.
Part of a legal description on a deed stated " 38 degrees 7'". What type of description
was it? - Answer -Metes and bounds
An active partner and has unlimited personal liability for the debts of the partnership.
One general partner can personally obligate the other general partners (Part of Tenancy
in Partnership)
How does an S corporation differ from other corporations? - Answer -Its investors have
no personal liability
