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PEARSON VUE EXAM QUESTIONS
"Which of the following rights is considered personal property? - CORRECT ANSWER Tenant Rights
Tenants rights are chattels real (other rights are real property)"
"Owning property as tenants in common permits each owner to - CORRECT ANSWER own unequal
shares
- Tenant-in-common interests need not be equal"
"What is a partition action? - CORRECT ANSWER A court proceeding to break up a co-ownership
-An action to divide the land of a tenancy in common or joint tenancy when the owners cannot agree. The court could physically divide the property (if feasible) or order a sale."
"The lot and block reference in a legal description relates to - CORRECT ANSWER a recorded
subdivision map -the legal description references the recorded map" "What would result from a condition in a deed? a. fee simple b. defeasible fee c. chattels real.
d. nonfreehold estate - CORRECT 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? - CORRECT ANSWER Real property"
"an investor's personal assets could be subject to a creditor's claim in a... - CORRECT ANSWER General
Partnership 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? - CORRECT ANSWER Its investors have no
personal liability"
"L owned an undivided half interest in a property. L now owns the entire property in severalty, although she did not buy or inherit the other one-half interest. L originally owned her undivided one- half interest
as a - CORRECT ANSWER joint tenant
Upon the death of the other joint tenant, the other half became Ls property" "A father wished to deed property to his son and daughter-in-law on a two-thirds and one-third basis.
To do so, title would be - CORRECT ANSWER as tenants in common
A is one owner only, and B and C require equal ownership"
"If a boundary is a private road, the boundary line would be - CORRECT ANSWER the center of the
road similarly, the boundary is a nonnavigable river, the boundary line is the center of the river"
"Areas of land enclosed by standard parallels and guide meridians are known as - CORRECT ANSWER
Government checks (or quadrangles)" "A tenant in a commercial building installed a large sign that was anchored to the building with steel rods. Which term properly describes the sign? A.Fixture B. Trade fixture C. Real Property
D. Emblement - CORRECT ANSWER B. Trade Fixture
Installed by a tenant for the purpose of conducting a business or trade. A tenant can remove a trade fixture but is liable for removal damage to real property ."
"What type of real property description would include reference to an iron stake? - CORRECT ANSWER
Metes and bounds (aka measurements and directions) Shows the boundaries of parcel by measuring from point to point. The measuring points in a metes-and- bounds description are known as monuments. Two types of monuments: -natural monuments: tress, rocks, rivers -artificial monuments: iron stakes, fences, roads"
"Rights, benefits, and improvements that go with the land are known as - CORRECT ANSWER
Appurtenances" "which would be classified as real property? A. Trade Fixtures
"A brother and sister hold land as joint tenants. The sister conveys one-half of her interest to her
husband. Ownership would now be held by the - CORRECT ANSWER Brother sister and her husband as
tenants in common"
"An owner granted a life estate to another but retained a future interest, which was a - CORRECT
ANSWER Reversionary interest
-The interest reverts back to the owners" "K, who had a life estate for the life of L, leased the property to M for five years. What would happen if K
were to die. - CORRECT ANSWER K's heirs would be entitled to K's interest
-the life estate is based on L's life"
"A person other than the grantor has a future interest in a life estate. That interest would be -
CORRECT ANSWER a remainder interest
-a third-party future interest is a remainder interest. An interest that reverted to the grantor would be a reversionary interest"
"A life estate was lost by merger. Merger occurred when the - CORRECT ANSWER remainder interest
holder purchased the life tenant's interest. -The life interest and remainder interest are merged into a single interest"
"The statutory right of a widow in the estate of her deceased husband is a - CORRECT ANSWER dower
right -in some states, a wife is entitled to a percentage of her husband's real property and/or a life estate in the husband's home upon the husbands death"
“Real property interests include... - CORRECT 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? - CORRECT 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"
"J had to pay a stock transfer fee when he sold his unit. What type of development was it? - CORRECT
ANSWER Cooperative
- each owner owns stock in a corporation and has the right to occupy a unity under a propriety lease. unlike condo ownership, co-op taxes and mortgage payments are generally made by the corporation, not by the individual owners."
"A leased far is sold. The growing crops belong to the - CORRECT ANSWER tenant.
-Growing crops are emblements"
"A swimming pool in a condo development would be regarded as - CORRECT ANSWER a common
element
- common areas for all owners" "A buyer of a residential unit received a share of stock and occupancy based on a lease. What type of
development was the unit in? - CORRECT ANSWER Cooperative
-stock ownership + propriety lease ( a lease by a cooperative to a shareholder providing a right to occupy a unity)" "Joint tenancy and tenancy in common are similar in that a. interest passes to heirs upon death of an owner b. interest of owners must be equal c. a sale of an interest requires approval of other owners
d. all owners have equal rights of possession - CORRECT ANSWER All owners have equal rights of
possession
- the only one of four unities present in tenancy in common is possession. there is no survivorship , on the death of tenant in common, his or her interest passes to the heirs by will, trust, or probate rather than to surviving tenants in common." "A deed to a brother and sister did not specify how title should be taken. Title would be as a. joint tenancy b. tenancy in severalty c. tenancy by the entirety
"A court will grant a request for partition when title is held - CORRECT ANSWER in joint tenancy or
tenancy in common"
"A legal description outlines the boundaries of a property. What type of description is it? - CORRECT
ANSWER Metes and bounds (also called measurements and directions)
-it encircles the parcel" "J gave K a life estate, and L was named to receive the interest on K's death. Given these facts: a. K has a reversionary interest b. L has a remainder interest c. K can defeat L's interest by deed or will
d. K cannot borrow on her interest - CORRECT ANSWER L has a remainder interest"
"By purchasing the reversionary interest of the grantor, the former life tenant would now have a -
CORRECT ANSWER fee simple
-life estate was lost by merger into greater fee simple interest" "J purchased a property with K as joint tenants. When J died, it was discovered that an encumbrance had been placed against J's interest in the property and that J's will provided that the property and
interest should pass to L. How would title to the property be held? - CORRECT ANSWER K in severalty
free of encumbrance. Title passes free of J's encumbrance to the survivor. it does not pass by will." "A condominium would be described as a(n) a. undivided interest in the whole b. undivided interest in common areas and separate interest in the individual units c. separate interest in the whole
d. divided interest in common areas and undivided interest in each unit - CORRECT ANSWER undivided
interest in common areas and separate interest in individual units.
- condo owners own their own air pace, but common areas are owned with the other owners as tenants in common"
"Homeowners associations meet the needs of - CORRECT ANSWER common interest development
-HOAs are present and collect assessments whenever there is a common interest development a"
"A life estate could become a fee simple estate by - CORRECT ANSWER merger of interests
- when the owner of a life estate acquires the reversionary interest in the property, the interests become one and the title is no longer defeasible"
"One quarter of a quarter section contains - CORRECT ANSWER 40 acres"
"Bricks are used to build a backyard barbecue. The bricks have become real property through the
process of - CORRECT ANSWER annexation
Personal property has become attached so as to become real property"
"Creditors can go against the personal assets of investors in a(n) - CORRECT ANSWER General
partnership -General partners are personally liable for debts of the partnership"
"What section is directly north of Section 18 be located? - CORRECT ANSWER NW 1/4 (reference page
"The maximum number of complete townships possible within a ranch that is 26 miles square, would be
- CORRECT ANSWER 16 A township is six miles square, meaning it measures six miles on each side. Four complete townships can be placed in a row either vertically or horizontally in a ranch that is 26 miles square. Four rows, each containing four townships equals 16 townships"
"What section is directly north of Section 2 in a township? - CORRECT ANSWER 35"
"How much fencing would it take to fence a township? - CORRECT ANSWER 24 miles"
"The Office of Interstate Land Sales Registration is concerned with unimproved land sales in interstate
commerce of - CORRECT ANSWER 25 or more parcels
- Requires full disclosure to prevent fraud
- requires disclosure of property information to buyers for unimproved land sales sold in interstate commerce. The act requires a registration with the Office of Interstate Land Sales Registration (OILSR) that is part of HUD. Applies to 25 or more lots. If the buyer does not receive a disclosure report, the purchaser has a seven-day right of rescission from the date of purchase." "The south boundary line of Section 13 Township 2 north range 3 east is a. 9 miles north of the base line
"The SW1/4 of SE 1/4 of NW1/4 of SW1/4 of a section contains - CORRECT ANSWER 640 acres/4 = 160
acres 160 acres/4 = 40 acres 40 acres/ 4 = 10 acres 10 acres/4 = 2.5 acres 2.5 acres" "An estate in real estate a. would be forever b. must be created by grant c. must included immediate possession
d. can run within another estate - CORRECT ANSWER can run within another estate (such as a
leasehold interest in a property held in fee simple)"
"A major difference between a planned unit development and a condominium would be - CORRECT
ANSWER land ownership
In a PUD, the unit owner owns land under the unit as well as a share in the common area. In a condominium, the land is owned in common"
"A business that has the limited liability of a corporation yet is taxed as a partnership would be a(n) -
CORRECT ANSWER LLC
the limited liability company description also applies to S corporations"
"A city purchased land for a dump site. How would the city hold title? - CORRECT ANSWER in severalty
since the city (municipal corporation) would own the property by itself" "Four unities refers to ownership a. in severalty b. as joint tenants c. as tenants in common
d. in partnership - CORRECT ANSWER as joint tenants
the four unities are time, title, interest, and possession"
"Nonstandard quarter sections resulting from land lost by rivers and lakes are designated as - CORRECT
ANSWER government lots (designated by lot number)"
"L,M, N,and O owned property as joint tenants. L sold her interest to P and M died. The property would
be owned by - CORRECT ANSWER N and O as joint tenants and P as tenant in common"
"HOAs would be associated with - CORRECT ANSWER common interest developments (homeowners
associations)" "Which would be subject to double taxation a. REIT b. LLC c. Corporation
d. Partnership - CORRECT ANSWER Corporation
Although S corporations also avoid the double taxation"
"A tenancy in common differs from a joint tenancy in that... - CORRECT ANSWER tenants in common
may have unequal interests"
"Chattels real differ from appurtenances in that they - CORRECT ANSWER Are personal property
The definition of chattel refers to all personal property (things you own other than real estate). An example of chattel is your furniture and car." "L,M, and N are joint tenants. N sells his interest to O, the M dies. Which statement is true: a. Ms heirs, O, and L are joint tenants b. M's heirs and L are joint tenants, but O is a tenant in common c. L's, O's, and M's heirs are all tenants in common
d. L and O are tenants in common - CORRECT ANSWER L and O are tenants in common
-When N sold to O, N broke the joint tenancy as to his or her interest, and O had a one-third interest. When M died, L took the share by survivorship. L has a two-thirds interest and O has a one-third interest." "Which would be considered a limited common element in a condominium? a. bearing walls between adjoining tenants b. community swimming pool c. parking space designated for a particular unit
d. land under the units - CORRECT ANSWER Bearing walls between adjoining tenants
