Alabama Real Estate Final Exam Study
Guide - 60 Hour Course Test Bank
Which of the following ways of specializing is common in the real estate brokerage
business?
A. By type of mortgage financing required
B. By years of experience in the business
C. By type of property
D. By background of client - CORRECT ANSWER-C. By type of property
Which of the following is included in the legal concept of land?
A. A corn crop
B. A lake
C. A felled tree
D. An abandoned vehicle - CORRECT ANSWER-B. A lake
A property abuts a non-navigable stream. What does the property owner own?
A. Land to the low-water mark
B. Underlying land to the middle of the waterway
C. Land to the high water mark
D. All water to the middle of the waterway - CORRECT ANSWER-B. Underlying land to
the middle of the waterway
A retailer installs special display counters to exhibit her products. At the end of the lease
term, the retailer moves to another state, leaving the counters in the store. At this point
the counters are considered which of the following?
,A. Trade fixtures, and therefore real property
B. Trade fixtures and therefore personal property
C. Real property, since the trade fixtures were abandoned
D. Personal property that must be returned to the retailer - CORRECT ANSWER-C.
Real property, since the trade fixtures were abandoned
How is a legal life estate created?
A. By an owner's voluntary grant
B. By operation of law
C. Through the four unities
D. Through a defeasible conveyance - CORRECT ANSWER-B. By operation of law
Which of the following is true of a homestead?
A. A homestead interest can be conveyed by one spouse
B. A homestead interest cannot be exempt from creditors
C. A homestead interest is a form of legal life estate
D. A homestead is any privately owned single-family residence - CORRECT ANSWER-
C. A homestead interest is a form of legal life estate
Three people have identical rights in a property, share an indivisible interest, but may
sell or transfer their interest without consent of the others. This type of ownership is:
A. joint tenancy
B. tenancy by the entireties
C. estate in severalty
D. tenancy in common - CORRECT ANSWER-D. tenancy in common
, A condominium estate is distinguished by:
A. Ownership of a share in an association and a condominium lease on the owned unit
B. Tenancy in common interest in airspace and common areas of the property
C. Fee simple ownership of a unit and undivided share of the common areas
D. Fee simple ownership of an equal share of the entire property - CORRECT
ANSWER-C. Fee simple ownership of a unit and undivided share of the common areas
An easement by prescription requires that:
A. the use be continuous, known, and permitted by the owner for a period of time
B. the use by continuous, open, and hostile for a required period of time
C. the owner of an adjoining property be landlocked
D. the owner of the affected property be and adverse possessor - CORRECT
ANSWER-C. the owner of an adjoining property be landlocked
In a lien-theory state:
A. Liens are recorded in trusts as opposed to title records
B. the lender records a lien while the borrower retains title
C. liened properties are foreclosed by strict foreclosure
D. trustees retain title during a mortgage period - CORRECT ANSWER-B. the lender
records a lien while the borrower retains title
Five liens have been recorded against a certain house in the following order: first
mortgage, mechanic's lien, second mortgage, real estate tax lien, special assessment
lien. Which lien will be the last one to be paid from the proceeds of the sale of the
house?
A. Special assessment lien
B. Mechanic's lien
C. Second mortgage lien
Guide - 60 Hour Course Test Bank
Which of the following ways of specializing is common in the real estate brokerage
business?
A. By type of mortgage financing required
B. By years of experience in the business
C. By type of property
D. By background of client - CORRECT ANSWER-C. By type of property
Which of the following is included in the legal concept of land?
A. A corn crop
B. A lake
C. A felled tree
D. An abandoned vehicle - CORRECT ANSWER-B. A lake
A property abuts a non-navigable stream. What does the property owner own?
A. Land to the low-water mark
B. Underlying land to the middle of the waterway
C. Land to the high water mark
D. All water to the middle of the waterway - CORRECT ANSWER-B. Underlying land to
the middle of the waterway
A retailer installs special display counters to exhibit her products. At the end of the lease
term, the retailer moves to another state, leaving the counters in the store. At this point
the counters are considered which of the following?
,A. Trade fixtures, and therefore real property
B. Trade fixtures and therefore personal property
C. Real property, since the trade fixtures were abandoned
D. Personal property that must be returned to the retailer - CORRECT ANSWER-C.
Real property, since the trade fixtures were abandoned
How is a legal life estate created?
A. By an owner's voluntary grant
B. By operation of law
C. Through the four unities
D. Through a defeasible conveyance - CORRECT ANSWER-B. By operation of law
Which of the following is true of a homestead?
A. A homestead interest can be conveyed by one spouse
B. A homestead interest cannot be exempt from creditors
C. A homestead interest is a form of legal life estate
D. A homestead is any privately owned single-family residence - CORRECT ANSWER-
C. A homestead interest is a form of legal life estate
Three people have identical rights in a property, share an indivisible interest, but may
sell or transfer their interest without consent of the others. This type of ownership is:
A. joint tenancy
B. tenancy by the entireties
C. estate in severalty
D. tenancy in common - CORRECT ANSWER-D. tenancy in common
, A condominium estate is distinguished by:
A. Ownership of a share in an association and a condominium lease on the owned unit
B. Tenancy in common interest in airspace and common areas of the property
C. Fee simple ownership of a unit and undivided share of the common areas
D. Fee simple ownership of an equal share of the entire property - CORRECT
ANSWER-C. Fee simple ownership of a unit and undivided share of the common areas
An easement by prescription requires that:
A. the use be continuous, known, and permitted by the owner for a period of time
B. the use by continuous, open, and hostile for a required period of time
C. the owner of an adjoining property be landlocked
D. the owner of the affected property be and adverse possessor - CORRECT
ANSWER-C. the owner of an adjoining property be landlocked
In a lien-theory state:
A. Liens are recorded in trusts as opposed to title records
B. the lender records a lien while the borrower retains title
C. liened properties are foreclosed by strict foreclosure
D. trustees retain title during a mortgage period - CORRECT ANSWER-B. the lender
records a lien while the borrower retains title
Five liens have been recorded against a certain house in the following order: first
mortgage, mechanic's lien, second mortgage, real estate tax lien, special assessment
lien. Which lien will be the last one to be paid from the proceeds of the sale of the
house?
A. Special assessment lien
B. Mechanic's lien
C. Second mortgage lien
