Barney Fletcher Real Estate Questions with Complete Verified Solutions 2024/2025, Exams of Real Estate Management

Download Barney Fletcher Real Estate Questions with Complete Verified Solutions 2024/2025 and more Exams Real Estate Management in PDF only on Docsity! Barney Fletcher Real Estate Questions with Complete Verified Solutions 2024/2025 False Surface rights consist of only the right to control, occupy, and use the surface area of a parcel of real estate. T/F? D 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 Which of the following is NOT an improvement of land? A. Building B. Sidewalk C. Corn crop D. Flower bed A 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 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 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 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 Littoral rights is a term referring to all water rights T/F? C 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 The right of one party to possess and use real property exclusive of others is: C 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 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 A salesperson represents the _____ A Which of the following is required to hold a real estate license? A. A person who, for compensation, helps sell his neighbor's home B. A government employee selling land owned by the government C. A property manager leasing property in the course of his employment for the owner. D. All of these choices False Our free enterprise system is free from government economic controls. T/F? the general public The purpose of a state real estate regulatory board is to protect: False A mushroom farm is industrial property. T/F? C Special purpose properties include all of the following EXCEPT: A. Churches B. Hospitals C. Industrial park D. Nursing homes A 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 A hospital is a commercial property. T/F? False An industrial park is commercial property. T/F? D 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 The least accurate method of legal description is the: 640 If a person owns a square parcel of land that is 1 mile on each side, the person owns how many acres? True The government survey method is used in the majority of states in the US. T/F? A 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 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 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 When a metes and bounds survey is used as the legal description of property, the word metes refers to D 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 Boundary markers of land, either natural or man-made, are _____ B 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 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 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 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 title to a property which is free from reasonable doubt as to who is the owner is called: An abstract of title A condensed summary of the documents affecting a property Torrens system a type of land title system whereby owners receive a registered certificate of title through the court is the C 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 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 a subdivider puts a requirement in all of the deeds to properties in a subdivision requiring specified setback requirements stating how close the improvements can be built to each side of the property. This would be an example of a _____. true community property is a statutory estate. T/F? A After buying and settling into her new home, Joanne discovered that the fence of her neighbor, Gloria, encroached ten feet on Joanne's side of the property line. Which of the following is true? A. Joanne may sue Gloria to have the fence removed if there has not been enough time for Gloria to get an easement by prescription B. Joanne has legal recourse in the courts only if she did not inspect the property before she bought it C. Joanne has to own the property for at least three months before she may take any action on getting her land back D. Joanne really doesn't have any legal recourse since the fence was there before she bought the property surviving owners Property held in joint tenancy passes to the ______ upon the death of one of the owners Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants. A joint tenant wants to sell his interest in a real property without the consent of the other joint tenants. Can he do this? C A tenancy in severalty exists when A. husband and wife own property together B. any related persons hold real estate together C. one person owns real estate D. the tenant has the right to sublet C Which of the following best describes ownership in severalty? A. several persons own one piece of real property B. one person owns several pieces of real property C. one person alone owns real property D. property owned by several members of the same family tenancy in common There are three owners of a property. They own 10%, 20% and 70% respectively. What type of ownership do they have? tenants by the entireties A married woman and an unmarried man may not own real estate as C Which of the following forms of ownership are available only to married couples? A. tenancy by the entireties B. community property C. both tenancy by the entireties and community property D. neither tenancy by the entireties not community property False. the purchaser of a joint tenant's interest will become a tenant-in-common with the remaining joint owners If one owner in a joint tenancy sells his interest, the purchaser will be a joint tenant as well. T/F? joint tenants 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 Fee simple title can be held in a trust. T/F? D 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 A tenancy by the entireties will be severed by divorce. T/F? D 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 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 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 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 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 It is possible for the creator of the trust, the truster, and the beneficiary to be the same person. T/F? C 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 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 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 Amalia owns property and gladly allows her friend Sophie to use the land, reserving for herself the right to periodic inspections. In order to maintain her interest, Amalia should give Sophie: A. a license B. a right of way C. an easement appurtenant D. an easement in gross True Judgment liens are general, statutory, involuntary liens that attach to real and personal property. T/F? B Fred bought a new boat. He hired a contractor to build a dock on his lake-front property. Fred did not pay the contractor. In an attempt to get paid, the contractor may file a: A. mechanic's lien against the boat B. mechanic's lien against the property C. general warranty lien against the boat D. Littoral rights lien against the property D How may an appurtenant easement be terminated? A. If the servient estate is sold. B. When the dominant estate owner dies C. the granting of a license D. if the easement is released by the owner of the dominant estate A Harry sold his riverfront property to Sally, but reserved for himself an easement whereby for the rest of his life, Harry will have the right to cross the property to fish from the river. Which of the following statements is correct about this situation? A. Sally owns the servient estate B. Harry owns the dominant estate C. Sally owns the servient estate and Harry owns the dominant estate D. Sally owns the dominant estate and Harry owns the servient estate True An easement by necessity is one created by operation of law. T/F? C. Which of the following is not a specific lien? A. a recorded property tax lien B. a mechanics lien C. a judgment lien D. a mortgage lien B Which of the following would have priority at a foreclosure sale ordered by a court? A. 1st mortgage B. real estate tax lien C. judgment lien D. mechanics lien an easement the right or privilege that one person has to use property that belongs to another person is referred to as False An easement by implication is one created by operation of law. T/F? A The creation of an easement by prescription is most similar to? A. adverse possession B. unlawful detainer action C. accretion D. police power False Suppliers can get a mechanic's lien only if they have an express, written contract for the material supplied. T/F? B An appurtenant easement can be terminated in each of the following ways, EXCEPT: A. by the holder of the dominant tenement B. by the holder of the servient tenement C. by abandonment D. by court True An IRS lien is a general lien. T/F? D A lien established by the state legislature is A. a statutory lien B. a legislative lien C. an involuntary lien D. both a statutory lien and an involuntary lien True An easement may be accomplished by operation of law through the government's power of eminent domain in condemnation proceedings. T/F? C 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 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 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 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 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 The purpose of a zoning ordinance is to: A. promote the health, safety and general welfare of the public B. promote building conformity 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 Which of the following best describes a condominium? A. personal property B. air lot C. stock ownership D. interval ownership D Which of the following does NOT describe a cooperative form of ownership? A. a corporation owns the land and improvements B. taxes are general liens against a corporation C. unit owners are stockholders D. unit owners hold a real property interest in the land and improvements C In terms of ownership, PUDs most clearly resemble A. leasing B. cooperative ownership C. condominium ownership D. time-share ownership A the costs associated with routine maintenance of the common area in a condominium complex, such as mowing the lawn or snow removal, are financed through: A. payment of homeowners association dues B. payment of special assessments C. pro-rata billing among the unit owners D. none of these choices True Common areas are owned as tenants-in-common with other condominium owners. T/F? C A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct? A. this is illegal advertising B. it is allowed so long as the advertising states "not yet completed" C. this is allowed if they are labeled not yet completed and a completion date is specified D. this is allowed since the rule of caveat emptor reigns B The owner of a unit in a cooperative gains the right to occupy the unit through a: A. stock certificate B. proprietary lease C. rental agreement D. standard lease agreement D Title to a property passes when: A. the deed is signed B. the deed is notarized C. the deed is recorded D. the deed is delivered and accepted A Which of the following is NOT a form of involuntary transfer of property? A. Dedication B. Adverse possession C. sherriffs sale D. Eminent domain grantor A quitclaim deed conveys only the interest of the D After the statutory period has elapsed, what would a person have to do to formally establish clear title through adverse possession? A. file an estoppel certificate B. file a warranty deed C. apply for a writ of attachment D. file suit for quiet title C 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 A A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. if no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership? A. tax deed B. sheriff's deed C. certificate of title D. statutory warrant deed A A deed is given and creates a joint tenancy. To be recorded the deed requires: A. signature of grantor B. signatures of the grantor and all of the joint tenants C. signatures of the grantor and one of the joint tenants D. no signatures, the act of recording serves as constructive notice of ownership False. a nuncupative will is an oral will. A nuncupative will is a handwritten will. B When the grantor of a deed swears that he is conveying title of his own free will, his action is referred to as: A. Execution B. acknowledgment C. novation D. authentication B 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 when conveying property by deed, the seller is referred to as: True If a person has a will but no executor has been named, the court will appoint an administrator. T/F? D 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 B. escheat C. condemnation D. adverse possession C 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 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 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 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 All of the following would be considered an involuntary alienation of property EXCEPT: A. Foreclosure B. Eminent domain C. devise D. adverse possession B Under which of the following conditions would a buyer most likely sue for specific performance? A. if the seller did not inform the buyer that the property being purchased is a servient estate (easement placed upon it) B. If the seller defaulted on the contract before closing C. if the broker lied about the location of the schools D. if the salesperson misquoted the size of the lot False An open listing contract in which the seller agrees to pay a commission to the first broker who produces a ready, willing and able buyer is a bilateral contract. T/F? D A contract may be all of the following except: A. exclusive authorization or right to sell B. lease C. contract of sale D. prospectus True A novation is the substitution of a new legal obligation for an old one D After an offer to purchase has been made and accepted, the salesperson may alter the contract under which of the following circumstances? A. if there was a minor detail omitted B. if the closing date changes C. is the salesperson's broker approves the change D. with the approval of all parties involved in the contract A A salesperson took a listing on a property which had a crack in the foundation caused by water seepage. It was obvious that the owner had filled in and painted over the crack although the owner advised the sales agent that the seepage problem had been corrected, when in fact it had not. If the salesperson shows the property without advising potential buyers of the seepage problem, the salesperson would be guilty of: A. fraud B. misrepresentation C. puffery D. nothing A An offer is made to a seller and the seller makes a counteroffer. prior to the buyer accepting the counteroffer, the seller receives a better offer from another prospective buyer. Under these circumstances, the seller: A. may withdraw the counteroffer B. should advise the second offeror to wait C. can accept the second offer without recourse D. is bound by the terms of the counteroffer A Which of the following is essential for a contract for the sale of real property to be upheld by a court? A. written form B. earnest money deposit C. removal of all liens and encumbrances D. all of the above A An owner less a property with a broker. the broker shows the property and receives an offer, but is unable to present the offer to the owner. Two days later, the owner cancels the listing agreement. what should be done with the earnest money deposit received with the offer to purchase agreement? A. returned to the buyer B. given to the seller C. split between the broker and the seller D. split between the broker and the buyer C In the event of a breach of contract, the injured party may: A. sue for damages only B. sue for specific performance only C. sue for either damages or specific performance D. sue for both damages and specific performance False It is necessary to prove that money damages were suffered in order to rescind a contract. T/F? A Licensee Lenny shows a home to Prospect Paul. Lenny tells Paul that this house has the best view of the lake. Paul buys the house and later discovers that a neighbor down the street has a view that in Paul's opinion is a better view than his own. This is an example of: A. puffing B. mistake C. misrepresentation D. fraud D C. sue for specific performance D. any of these choices D 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 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 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 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 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 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 A statute law that sets a time frame within which someone must bring a lawsuit is called statute of limitations. T/F? B 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 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 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 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 C. split the deposit with the buyer D. split the deposit with the seller C A purchaser submits an offer to a seller with the condition that the property is to be finances by a conventional loan at no more than 10% interest. If the seller agrees but such financing cannot be obtained, which of the following is true? A. The purchaser loses his deposit but is relieved of further liability B. the seller is obligated to return the deposit plus interest C. the purchaser may request his deposit be returned D. the seller can sue for specific performance B How does a purchaser obtain equitable title to a property? A. with an abstract B. through a valid contract C. by deed D. by an estoppel certificate Estate in reversion What type of estate could be present in both a life estate and a leased-fee estate? A A buyer enters into a contract for the purchase of property, agreeing to make a specified down payment, and further agreeing to regular monthly payments to the seller, who is holding legal title, for a specified period of time. This describes what type of contract? A. installment contract B. purchase money mortgage C. option contract D. agreement contract D Upon signing a management contract with an owner, a broker becomes a/an: A. trustee B. receiver C. director D. agent C Which of the following would cause a deed to be void? A. fraud B. undue influence C. illegal purpose D. duress A