Barney Fletcher Real Estate Exam with correct Answers, Exams of Advanced Education

Download Barney Fletcher Real Estate Exam with correct Answers and more Exams Advanced Education in PDF only on Docsity! Barney Fletcher Real Estate Exam False - Answer- Surface rights consist of only the right to control, occupy, and use the surface area of a parcel of real estate. T/F? D - Answer- Mineral rights are: A. Always considered to be personal property B. Always pass with the land C. Cannot be sold separately from the land D. Pass with the land, unless otherwise specified in the deed C - Answer- Which of the following is NOT an improvement of land? A. Building B. Sidewalk C. Corn crop D. Flower bed A - Answer- Six months after Brady bought his home, he installed custom made storm windows and doors throughout the house. Later, when he sells his property, will these storm windows and doors automatically convey with the house? A. Yes, unless in advance of the sale, Brady clearly specifies that they will be removed. B. Yes, if he lived in the property at least a year before the sale. C. No, because they were not part of the original structure D. No, because they can be removed, if they are taken off carefully A - Answer- David owns property along the banks of the Little Big Horn River. Scott owns property adjoining David's, and has access to the highway, but not to the river. Scott and David grant each other appurtenant easements to cross each others property to get to the road and the river respectively. The riparian rights associated with property ownership belong to: A. David because his property borders the river B. Scott, because he has an easement to cross David's land C. Both David and Scott D. Neither C - Answer- Which of the following is NOT a test of a fixture? A. Manner of attachment B. An agreement between the parties C. Time of attachment D. Manner of adaptation B - Answer- Which of the following best describes a parcel of land? A. The surface of the earth including control of all minerals and substances beneath B. The surface of the earth extending down to the center and upward to the sky C. The earth's surface closely marked by certain boundaries D. The surface of the earth extending down a reasonable distance and up into the air a reasonable distance False - Answer- Littoral rights is a term referring to all water rights T/F? C - Answer- Each of the following is a test of whether or not something is a fixture, EXCEPT: A. Method of attachment B. Adaptability C. Cost D. Relationship of the parties Ownership - Answer- The right of one party to possess and use real property exclusive of others is: C - Answer- A prospective buyer noticed an ornate flag pole attached to the front porch of the house she wants to purchase. She wants to make certain that the flag pole is included in the sale. What should the agent do? A, Because the pole is attached and will automatically convey B. call seller and advise them the buyer wants the pole C. include the flag pole in the offer to purchase D. photograph the flag pole as evidence of its attachment B - Answer- A couple is interested in buying a house that has an odd shaped living room. The current owners had a custom-made, free-standing bookcase built to specifically fit into one part of the room. The buyer believes this is a fixture because it is uniquely adapted to this specific room. The seller believes this is not a fixture because it is free-standing. To avoid any misunderstandings, what should the listing licensee do? A. Assure the seller there is nothing to worry about B. Include a provision in the agreement of sale (and listing contract) that states whether the bookcase is included with the sale or not. C. Assure the buyer there is nothing to worry about D. File an interpleader action in court B - Answer- Real property would include: A. Fixtures B. Each of these choices C. Air space D. Mineral rights D. Nursing homes A - Answer- Commercial property includes all but which of the following? A. horse ranch B. office buildings C. restaurants D. vacant land suitable for commercial development False - Answer- A hospital is a commercial property. T/F? False - Answer- An industrial park is commercial property. T/F? D - Answer- Which of the following is not considered a legal description? A. Metes and bounds B. Lot and block C. Government method of survey D. Street address, city, state and zip code Monuments method - Answer- The least accurate method of legal description is the: 640 - Answer- If a person owns a square parcel of land that is 1 mile on each side, the person owns how many acres? True - Answer- The government survey method is used in the majority of states in the US. T/F? A - Answer- In a real estate contract, the legal description of the property describes the: A. Land only B. Land and improvements C. land, improvements and all rights pertaining to the land D. Land, improvements, rights and rights of easement D. Metes and bounds - Answer- Of the given choices, the best way to describe an irregularly shaped parcel is: A. Government survey B. Geodetic survey C. Constant survey D. Metes and bounds C - Answer- When a developer records a plat showing property in three dimensions (length, width and height), he or she would be developing: A. an industrial park complex B. a PUD which is for single family homes only C. a multi-story condominium complex D. A large one story shopping mall the length of a property line - Answer- When a metes and bounds survey is used as the legal description of property, the word metes refers to D - Answer- Which of the following would provide the least accurate description of a parcel of land? A. metes and bounds B. Rectangular survey C. Lot, block, and subdivision D. Tax assessor's reference number Monuments - Answer- Boundary markers of land, either natural or man-made, are _____ B - Answer- An adequate metes and bounds description will have all of the following EXCEPT? A. A definite point of beginning B. Four sides C. Closure D. Linear measurements and compass directions C - Answer- Land located in a rural area of an eastern state would most likely be described by? A. Government rectangular survey B. Lot, block and subdivision C. Metes and bounds D. Reference to other documents D - Answer- One would normally use a survey to identify all of the following except: A. legal location of the property B. Violations of the zoning set-back ordinances C. Encroachments of the property D. Liens on the property A - Answer- Which is an example of constructive notice? A. recording documents in the land records B. telling a person that you have an easement across his land C. receipt of a building permit D. a neighbor telling you about a mineral right he has to your land Marketable title - Answer- title to a property which is free from reasonable doubt as to who is the owner is called: An abstract of title - Answer- A condensed summary of the documents affecting a property Torrens system - Answer- a type of land title system whereby owners receive a registered certificate of title through the court is the C - Answer- Which of the following is not true about a title search? A. it is an examination of public records B. the purpose is to determine defects in the chain of title C. The title searcher goes back at least 100 years D. it is usually performed by a title company or title abstractor A - Answer- Which best describes marketable title? A. reasonably free from the risk of litigation over possible defects B. the right to obtain ownership to property when title is held in another's name C. proof of ownership D. statement of opinion of the title's status color of title - Answer- the legal process of "tacking" relates to an adverse possession claim under ______ State recording act - Answer- The system which provides notification of ownership rights and claims by certain creditors against real property is created by either a quitclaim deed or a quiet title action - Answer- A cloud on title can be removed by C - Answer- Which of the following is NOT a type of title? A. bare legal title B. naked title C. full title D. equitable title True - Answer- Inquiry notice is legal notice presumed by law False - Answer- An acknowledgement means that you agree to what you signed C - Answer- What is the legal process, used by the government, to acquire property from a private citizen? A. eminent domain B. escheat C. condemnation D. taxation D - Answer- An abstract of title would contain: A. The name of the original owner B. a record of all encumbrances, liens, mortgages and court actions C. a record of any transfer of title by devise D. all of these choices False. the purchaser of a joint tenant's interest will become a tenant-in-common with the remaining joint owners - Answer- If one owner in a joint tenancy sells his interest, the purchaser will be a joint tenant as well. T/F? joint tenants - Answer- A mother left her house in her will to her two children. Each child to receive a 50% interest with rights of survivorship. What type of ownership will the children have? True - Answer- Fee simple title can be held in a trust. T/F? D - Answer- a corporation buying real property would take title under: A. joint tenancy B. tenancy in common C. tenancy in partnership D. tenancy in severalty True - Answer- A tenancy by the entireties will be severed by divorce. T/F? D - Answer- The owner of an undivided interest in land with no right of survivorship owns it as a A. tenant-in-common B. joint tenant C. tenant in severalty D. either tenancy-in-common or tenancy in severalty A - Answer- Several persons hold property as tenants in common. One of the owners dies. His interest in the property will: A. pass to his heirs B. pass to this remainderman C. Be equally divided among the other owners D. Be divided between the other owners in direct proportion to their ownership interest D - Answer- The unities of time, title, interest and possession are required in order to create: A. an undivided interest in the property as a whole B. separate ownership C. concurrent ownership D. the right of survivorship D - Answer- Three people bought a property together as joint tenants. Two of them have died. The surviving owner now owns the property: A. as sole joint tenant B. together with the heirs of the deceased owners C. in tenancy by the entireties D. as tenant in severalty B - Answer- Two unrelated persons own a property together. These owners could will their ownership share to their heirs if title was held in: A. Joint tenancy only B. Tenancy in common only C. Both joint tenancy and tenancy in common D. Neither joint tenancy nor tenancy in common True - Answer- It is possible for the creator of the trust, the truster, and the beneficiary to be the same person. T/F? C - Answer- Jones, Smith, and Williams own a property as joint tenants. Which of the following is true? A. If Jones dies, Smith and Williams will own property as tenants by the entireties. B. If Jones dies, Smith and Williams will own the property as tenants in common. C. If Jones and Smith die, Williams will own the property in severalty. D. If any one of the owners die, the property goes to the heirs of the deceased owner B - Answer- What is the most common form of ownership between two or more individuals? A. Joint tenancy B. Tenancy in common C. Community property D. Tenancy by the entireties C - Answer- Bob, Carol, Ted and Alice bought a property as joint tenants many years ago. Alice is now the sole survivor of this group. How does Alice own this property? A. As sole joint tenant B. As a tenant in common C. In severalty D. As a devisee D - Answer- Francoise is awarded a judgment lien against Gerald. Gerald's only asset is his real property worth approximately $20,000. This property already has a tax lien, a mortgage lien and a recorded mechanic's lien. If the property is sold at a foreclosure or trustee's sale, Francoise can expect to collect on the judgment lien, before which of the following? A. The mortgage B. tax lien c. mechanic's lien d. none of above C - Answer- A landscaper has not been paid for landscaping a homeowner's yard. A friend tells him the house is for sale. What should the landscaper do? A. Sue the listing agent B. File an injunction C. File for a mechanic's lien D. Write a letter to the owners demanding immediate payment A - Answer- An easement appurtenant can be terminated by all of the following EXCEPT A. the owner of the servient tenement, by executing a deed releasing his easement interest B. the owner of the dominant tenement, by executing a deed releasing his easement interest C. The dominant and servient tenements are merged D. The owner of the dominant tenement abandons his easement interest D - Answer- Jones buys a lot that has no access by way of a public road. He can gain access to his land by way of his neighbor's land that has public road access A. only if the grantor of the property caused the lot to be landlocked B. only if his neighbor agrees to give him an easement C. only by establishing an easement by prescription D. Either if the grantor of the property caused the lot to be landlocked or if his neighbor agrees to give him an easement D - Answer- All of the following are encumbrances on real property EXCEPT: A. easements B. liens C. deed restrictions D. a license D - Answer- Which of the following statements about liens is ALWAYS true? A. a lien is an encumbrance on title B. a lien arises from a debt C. a lien creates a cloud on title when recorded D. All of these choices A - Answer- Jerry Jones buys a piece of land that has no access to a public road. He can access his land: A. Because the law guarantees all landowners egress and ingress B. only if one of his neighbors grants him an easement C. only by establishing an easement by prescription D. because of the principle of laches B - Answer- All mortgages are? A. Due on sale B. Liens C. Recorded. D. None of these choices D. both a statutory lien and an involuntary lien True - Answer- An easement may be accomplished by operation of law through the government's power of eminent domain in condemnation proceedings. T/F? C - Answer- A local government changed the zoning on a large parcel of property. As a result of the zoning change, the property has decreased in value. The government: A. is required to compensate the owners an amount equal to the appraised value of the property prior to the rezoning B. must pay the owners the difference between the present value and value prior to rezoning C. is not required to pay anything D. is exercising it's power of eminent domain B - Answer- Zoning laws are created and enforced by: A. city governments only B. city and county governments only C. city, county snd state governments only D. city, county, state and federal governments D - Answer- Zelda wants to move into a subdivision with her giraffe. Which of the following would determine whether or not she could move into a home and keep her giraffe on the property? A. Police power because police determine which pets are allowed in residential properties B. building codes C. urban planning with a restriction on regulating pets D. zoning ordinances B - Answer- Which of the following would NOT be a proper exercise of police power by a county? A. restricting land use B. restricting occupancy to single women only C. requiring building permits D. requiring setback distances from property boundaries C - Answer- What is the difference between a building that has a conditional use permit and a building that is a (legally) nonconforming use but has no variance or conditional use permit? A. the nature of the structure B. the size of the structures C. whether the use pre-dated a zoning change D. None of these choices-there is no difference A - Answer- The purpose of a zoning ordinance is to: A. promote the health, safety and general welfare of the public B. promote building conformity C. comply with federal regulations D. assure higher resale values B - Answer- The zoning in a particular area requires minimum lot sizes of at least 7,500 square feet. Sally owns a vacant lot in the corner of the tract that contains only 7,000 square feet. In order to build a home on that lot, Sally would need: A. No special approval B. A variance C. A spot zoning change D. A change to the zoning ordinance which governs this entire tract B - Answer- the purpose of city planning is to A. establish commerce in a city B. guide the future development of a city C. enact taxation laws D. create employment D - Answer- All of the following statements are true with regard to restrictive covenants in a deed EXCEPT: A. the covenant runs with the land B. the covenant may be removed without legal action C. the covenant does not need a termination date D. the covenant might be at variance with Fair Housing laws D - Answer- Which of the following does NOT result from local and state government legislation? A. Building codes B. housing codes C. subdivision regulations D. subdivision covenants True - Answer- Restrictive covenants are a type of private zoning. T/F? Developers - Answer- Deed restrictions are imposed by _____ zoning estoppel - Answer- A developer has been assembling parcels into a larger lot so as to build a retail center. There have been many discussions with the zoning board, which has given assurances that the zoning in the area will not be changed. Just before the developer applies for the building permit, the board changes the zoning to residential. What will the developer request from a court? C - Answer- Zoning ordinances are rights of: A. the federal government B. state governments C. counties, towns, and municipalities D. private land owners True - Answer- A zoning board could issue a permit for a hospital to be built in an area zoned residential. T/F? D - Answer- Private restrictions cannot: A. be based on aesthetic considerations B. restrict the owner's lawful use of the land C. take precedence over zoning ordinances D. restrict the grantee's conveyance of the property C - Answer- Which of the following is the BEST example of a buffer zone? A. an industrial park located between an area zoned residential and another zoned commercial B. an office park located between an apartment project and an area zoned for industrial use C. a recreation park located between an apartment complex and an area zoned for single family homes D. a highway that separates residential property from commercial property deed restrictions - Answer- limitations that a person places on the use of property that she or he owns are _____ C - Answer- private restrictions cannot A. be based on aesthetic considerations B. restrict the owner's lawful use of the land C. take precedence over a zoning ordinance unless they are more restrictive than the zoning ordinance D. restrict the square footage of the improvements True - Answer- Bulk zoning controls industrial construction. T/F? A - Answer- The owner of a cooperative apartment unit: A. owns stock in a non-profit corporation B. Holds fee simple title that may be sold, mortgages or leased C. owns the unit in fee simple with an undivided interest in the common elements D. holds title in partnership with unit owners B - Answer- Property taxes on cooperative units are assessed in the form of: A. individual tax bills for each unit B. a single tax bill prorated among individual units C. annual tax bills based on the type of unit D. biannual tax bills based on the type of unit B - Answer- Which of the following best describes a condominium? A. personal property C. novation D. authentication B - Answer- A quitclaim deed is generally used for which of the following? A. to convey only the fee simple title B. to remove a cloud on the title C. to convey the title to property that is transferred by the probating of a will D. to burden the grantor the liability for defective title grantor. Buyer is grantee - Answer- when conveying property by deed, the seller is referred to as: True - Answer- If a person has a will but no executor has been named, the court will appoint an administrator. T/F? D - Answer- Jennings decided she will acquire title to a piece of unused land by adverse possession. In order to do this, Jennings' occupancy of the land must be: A. Hostile to the interest of the true owner B. continuous C. open and notorious D. all of these choices True - Answer- A notary public witnesses an acknowledgment D - Answer- A quitclaim deed may be used to: A. transfer ownership of a fee simple estate B. transfer interest in a life estate C. terminate an easement D. any of the above A - Answer- A deed is acknowledged by A. the grantor B. a notary public C. the grantee D. the clerk of the court A - Answer- the covenant whereby one warrants that he is the possessor and owner of property being conveyed is the covenant of: A. seizen B. habendem C. possession D. further assistance B - Answer- A deed may be recorded once it is signed by the grantor and: A. signed by the grantee B. acknowledged C. the seller has vacated the property D. all of these choices are required B - Answer- Three people own a piece of property as tenants in common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell could file a suit, against the third, for: A. foreclosure B. partition C. detachment D. severance True - Answer- Title by accession is involuntary alienation. T/F? B - Answer- The act of recording a deed in the public record's office designated for that purpose, results in which of the following? A. title will pass to the new owner on the date of recording B. serves as constructive notice to the public C. it protects the buyer from encumbrances D. serves as actual notice of ownership Grantee - Answer- When the property is conveyed by deed, the buyer is referred to as the: C - Answer- The covenant in a deed which guarantees to the grantee that no one has any other interest in the property , that will disturb the grantee's possession of the property, is known as the: A. the covenant of further assistance B. covenant against encumbrances C. covenant of quiet enjoyment D. covenant of seizen False - Answer- Descent and distribution is a form of voluntary alienation. T/F? C - Answer- A special warranty deed would include which of the following covenants? A. a covenant of warranty B. a covenant of quiet enjoyment C. a covenant against grantor's acts D. All of these choices B - Answer- Which of the following do NOT need to be recorded? A. a document affecting title to land B. month to month lease C. an easement for a fence D. a deed of trust special warranty deed - Answer- a deed in which the grantor protects the grantee only against claims that arise during the time that the grantor owned the property is referred to as a A - Answer- Each of the following is an involuntary method of conveying property EXCEPT A. quitclaim deed B. escheat C. condemnation D. adverse possession C - Answer- Title to real property is conveyed by deed when: A. signed by the grantor B. recorded by the grantee C. delivered and accepted D. signed by the grantee C - Answer- When would title be transferred by the laws of intestate succession? A. testator has living heirs B. voluntary alienation C. pursuant to descent and distribution D. there is a will D - Answer- In order to examine a recorded deed, which of the following is necessary? A. written permission of the owner B. an inquiry notice C. a court order D. none of these choices D - Answer- If a seller deposits the deed with an escrow agent but the seller dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow due to the: A. parties' consent B. law of contracts C. the parol evidence rule D. the doctrine of relation-back C - Answer- All of the following would be considered an involuntary alienation of property EXCEPT: A. Foreclosure B. Eminent domain C. devise D. adverse possession B - Answer- Under which of the following conditions would a buyer most likely sue for specific performance? specific performance - Answer- court action taken to require the parties to a contract to carry out the terms and ovations of a contract is known as a suit for: A - Answer- A buyer makes an offer to purchase a home for $95,000. The seller makes a counteroffer of $100,000. which of the following statements is true? A. the seller is now the offeror B. if the buyer rejects the counteroffer the seller has the choice to accept the original offer C. the original offer remains open until its expiration date D. the seller must formally reject the original offer before making the counteroffer A. The Parol Evidence Rule states that a written agreement will override any previous oral agreement - Answer- The Parol Evidence Rule controls which of the following: A. an oral agreement leading to a written contract B. a dispute between cooperating brokers C. a settlement which occurs while a licensee is imprisoned D. None of the above A - Answer- A homeowner tells a broker that he would like to sell his house. The broker agrees to sell the house. This agreement would be considered: A. an express contract B. an implied contract C. an illegal contract as it requires a writing D. an equilateral contract D - Answer- Vernon presents an offer to a seller with the provision that it must be accepted within 72 hours. Under which of the following circumstances would the offer terminate? A. seller accepts the offer, but Vernon dies before receiving a copy of the accepted offer. B. the seller resubmits the offer with a minor change as to settlement date C. The seller wants to wait a week before acceptance D. Any of these choices would terminate the offer C - Answer- Which of the following is required for a contract to be valid? A. in writing B. an earnest money deposit C. consideration D. signature and seal of a notary public D - Answer- Which of the following could be recognized as consideration in a valid contract? A. a mortgage note with interest B. a promise to install a cabinet C. a note without interest D. any of these choices C - Answer- Which of the following is an example of a unilateral contract? A. a sales contract for a piece of property B. an appraisal C. a promise of a reward for the return of a lost dog D. a marriage C - Answer- Which of the following does not have to exist for a valid contract to be enforceable in the sale of real estate? A. the contract must be in writing B. an offer and acceptance C. performance D. consideration D - Answer- Bill has a contract in place to purchase Sam's house. Bill later changes his mind and defaults on the contract. Sam would have which of the following remedies? A. rescind the contract B. sue for damages C. sue for specific performance D. any of these choices D - Answer- Lloyd Christmas owns a house which he has decided to rent to Harry Dunne. No written contract exists and there has been no discussion as to lawn care. Harry takes it upon himself to mow the lawn each week. Lloyd appreciates that and so reduces the bill for the rent by $50. This goes on for several months. As to the discount for the lawn care, what type of contract exists? A. an express, unilateral contract B. an express, bilateral contract C. an implied, unilateral contract D. an implied, bilateral contract B - Answer- Under common law, acceptance of a unilateral contract takes place: A. when a written contract is signed by both parties B. at the completion of the requested act C. when the offeree communicates a promise to do the requested act D. when the offeror states a promise D - Answer- John, an adult, entered into a contract with Paul, who is 16 years old. When John learned that Paul was a minor he decided to terminate the contract. Which of the following statements is true? A. Contracts with minors are automatically void. B. Contracts with minors are voidable at the option of the adult C. the contract is valid and binding on both parties D. the contract is valid and binding only on John B - Answer- A buyer makes an offer to purchase a piece of property. The seller changes the date of occupancy by one day, and signs the contract. If the purchaser does not agree with this change, which of the following is true? A. the buyer only has 72 hours to accept a change of this type B. the purchaser has no further liability C. the seller and purchaser could both sue for specific performance D. the seller may keep the deposit as liquidated damages A - Answer- Which of the following is true of a contract under novation? A. A new contract replaces the old one B. The old contract is void C. The original parties to the contract remain jointly and severally liable with the new parties D. A new party is assigned the rights of an old party Novation - Answer- A buyer and seller entered into a valid contract. The buyer, for personal reasons, asked to be released from the contract. The buyer located someone else to buy the property. The seller entered into a new contract with the other person and released the first buyer from any obligation. This would be an example of: True - Answer- A statute law that sets a time frame within which someone must bring a lawsuit is called statute of limitations. T/F? B - Answer- The loan contingency clause in a valid sales contract will contain all of the following except A. the amount of the loan B. the name of the lender C. the date of the commitment D. the interest rate of the loan an assignment - Answer- To transfer the rights contained in a note, mortgage or lease from one party to another, by a written instrument is referred to as _______ D - Answer- Mark is 16 years old and has inherited $50,000 from his grandfather. Mark contracts with Harold, an adult, to purchase his video game center. One year later, Mark decides he wants to cancel the contract. Which of the following statements is true? A. The contract between Mark and Harold is illegal. B. If Harold learns that Mark is a minor, he (Harold) may declare the contract void. C. Mark can sell the property D. Mark may declare the contract with Harold void and get his money back A - Answer- A real estate broker presents an offer to the seller on a property with the provision that the seller has 6 days to accept the offer. At the end of the 3rd day, the buyer withdraws the offer. What should the broker do? A. Return the earnest money deposit to the buyer B. give the earnest money deposit to the seller