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All of the following are examples of police power EXCEPT: A. zoning ordinances. B. building codes. C. restrictive covenants. D. city planning requirements. - answer>>>C. restrictive covenants.
Real Estate Fundamentals Exam 2025– 2026
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Control by zoning ordinances does NOT regulate: A. the height of building in area. B. the density of improvements. C. the use of the property. D. the price of the property. - answer>>>D. the price of the property.
Which of the following would be included in the "bundle of legal rights?"
A. Control B.. Indestructibility C. Immobility D Uniqueness - answer>>>a. Control
A residential homeowner wants to raise her pet pig in her backyard. Which of the governmental rights would MOST LIKELY prohibit her from doing this? A. Building codes. B. Zoning ordinances. C. Deed restrictions. D. Eminent domain. - answer>>>C. Deed restrictions.
The purpose of bulk zoning is to: A. ensure that certain kinds of uses are incorporated into development. B. specify certain types of architecture for new buildings. C. control density and avoid overcrowding. D. set overall development goals for the community. - answer>>>C. control density and avoid overcrowding.
Under an existing ordinance, no signs that extend more than 3 feet above the highest point of a roof may be placed on any building. An owner wants to erect a 9-foot-high revolving sign on the roof of his store. In order to do this legally, the owner should: A. Apply for a zoning change. B. Apply for variance. C. File a lis pendens. D. Obtain a court judgement. - answer>>>B. Apply for variance.
A wooded area with biking and hiking trails is situated between an industrial park and a residential housing development. This wooded area is considered a: A. P.U.D. B. subdivision. C. utility easement. D. buffer zone. - answer>>>D. buffer zone.
A landowner constructed a building 7 stories high. Several years later the municipality changed the zoning ordinance, prohibiting buildings that exceed 6 stories in height. Which of the following is true regarding the existing 7-story building? A. It is a non-conforming use. B. The building must be demolished. C. It is a conditional use. D. The owner must obtain a variance. - answer>>>A. It is a non-conforming use.
In the process of planning a new subdivision, which of the following steps would a subdivider do first: A. complete plat maps of the subdivision. B. create a land development plan. C. obtain governmental approval and record the plat-map. D. check out the comprehensive plan created by the local government. - answer>>>B. create a land development plan.
The plat for a proposed subdivision is submitted to the: A. municipality. B. property owners. C. developer. D. state. - answer>>>A. municipality.
What is the difference between a sub-divider and a developer? A. A sub-divider buys undeveloped acreage and divides it into smaller lots; a developer improves the land. B. A sub-divider improves the land, a developer buys undeveloped acreage and divides it into smaller lots. C. A developer draws up the plat maps, a sub-divider constructs the homes. D. Developers draw up zoning regulations, sub-dividers draw up the plat maps. - answer>>>A. A sub-divider buys undeveloped acreage and divides it into smaller lots; a developer improves the land.
To allow a more intensive use of subdivision land, a zoning variation would be required to permit which of the following? A. A decrease in the number of buildings allowed per block. B. An increase in the number of building sites per acre. C. Deed restrictions prohibiting the sale of any individual lot to a family of fewer than four persons.
D. Deed restrictions prohibiting the shrinkage of the backyard area in any residential lot. - answer>>>B. An increase in the number of building sites per acre.
Carr is in the business of buying undeveloped acreage and divides it into smaller lots for sale to individuals or developers. Carr is considered a: A. developer. B. real estate broker. C. engineer. D. subdivider. - answer>>>B. real estate broker.
Baird is in the business of buying parcels of land, improving the land, constructing homes on the lot and selling them. She is in business as a: A. developer. B. real estate broker. C. engineer. D. subdivider. - answer>>>A. developer.
A high-rise development which combines office space, stores, and residential units in a single, vertical community is known as a: A. planned unit development/PUD. B. manufactured housing park. C. mixed-use development/MUD. D. timeshare community. - answer>>>C. mixed-use development/MUD.
The right a government has to take private property for a public use or benefit is: A. police power. B. escheat. C. eminent domain. D. confiscation. - answer>>>C. eminent domain.
the remaining portion of the lot. Is the owner eligible for compensation? A. Yes, the city is rezoning the area for a higher use. B. Yes, the city is exercising its power of eminent domain. C. No, the owner can still use the remaining portion of the property. D. No, the city is exercising its police power. - answer>>>B. Yes, the city is exercising its power of eminent domain.
Carr owns property next to property that the city has condemned to extend the runways at the municipal airport. Carr feels his property has diminished in value due to this public use. He may seek compensation by an action of: A. taking. B. condemnation. C. confiscation. D. inverse condemnation. - answer>>>D. inverse condemnation.
If a property owner dies without a will and no legal heirs can be found or the property is abandoned, what power can the government exercise to take the property? A. Police power. B. Eminent domain. C. Escheat. D. Taxation. - answer>>>C. Escheat.
Grant moved from a home he owned in fee simple to live in another country. He continued to pay taxes on the property while living in the foreign country. Can Grant expect to forfeit his ownership? A. Yes, because Grant's abandonment constitutes waste. B. Yes, because Grant's abandonment restricted the use of the land. C. No, because Grant has not abandoned the property as long as taxes are paid.
D. No, because the right to abandon property is included in fee simple ownership. - answer>>>C. No, because Grant has not abandoned the property as long as taxes are paid.
General real estate taxes are also known as: A. special assessments. B. ad valorem taxes. C. appropriation funds. D. general, voluntary liens. - answer>>>B. ad valorem taxes.
A married couple owns real property with an assessed value of $30,000. A neighbor's real property has an assessed value of $35,000. If the tax rate is the same for both properties, which of the following is TRUE about the property tax? A. The neighbor will pay a higher ad valorem tax than the married couple. B. The neighbor will pay a higher improvement tax than the married couple. C. The married couple will pay a higher ad valorem tax than the neighbor. D. They will both pay the same amount of ad valorem tax. - answer>>>A. The neighbor will pay a higher ad valorem tax than the married couple.
A city planned to replace sidewalks in a particular neighborhood. Which type of tax would most likely be levied to pay for the sidewalks? A. Capital gain tax. B. Special assessment tax. C. Ad valorem tax. D. Inheritance tax. - answer>>>B. Special assessment tax.
The current market value of a property is $35,000. For tax purposes, it is assessed at 40 percent of market value. The tax rate is $4 per $100 of assessed value. What is the amount of the tax due? A. $560.
D. A restrictive covenant. - answer>>>B. A recorded mortgage.
Which of the following is a voluntary lien? A. Mortgage lien B. Mechanic's lien C. Real estate tax lien D. Judgment lien - answer>>>A. Mortgage lien
What is the difference between a general lien and a specific lien? A. A general lien cannot be enforced in a court, while a specific lien can be enforced. B. A specific lien is held by one person, while a general lien is held by at least two persons. C. A general lien affects all of the debtor's property, while a specific lien affects only a certain piece of property. D. A specific lien covers real estate, while a general lien covers personal property. - answer>>>C. A general lien affects all of the debtor's property, while a specific lien affects only a certain piece of property.
A property owner has not managed to pay the annual property taxes on his home. He also owns a tract of timberland but has managed to pay the annual property taxes on it. The delinquent taxes would result in: A. a lien against the property with the home. B. a lien against all of the property owner's real property. C. a lien against the property owner's real and personal property. D. no lien whatsoever. - answer>>>A. a lien against the property with the home.
An owner owns a house and separate farm. He pays the taxes on the farm, but not on the house. The delinquent taxes on the house could result in: A. a lien against the farm. B. a lien against the house.
C. a lien against both the house and farm. D. a lien against the property owner's real and personal property. - answer>>>B. a lien against the house.
A court orders real estate to be sold to satisfy an unpaid lien in an action known as a(n): A. encumbrance. B. attachment. C. seizure. D. foreclosure. - answer>>>D. foreclosure.
Which of the following liens will take priority over all other liens, even those previously recorded? A. mortgage lien. B. real estate tax lien. C. judgment lien. D. mechanic's lien. - answer>>>B. real estate tax lien.
The priority of a lien would most likely be determined by all of the following EXCEPT: A. recording date. B. the dollar amount of the lien. C. type of lien. D. the effective date of the lien. - answer>>>B. the dollar amount of the lien.
Normally, the priority of general liens is determined by: A. the order in which they are filed or recorded. B. the order in which the cause of action arose. C. the size of the claim. D. the court. - answer>>>A. the order in which they are filed or recorded.
In absence of an agreement to the contrary, the mortgage having priority will be the one: A. for the highest amount. B. which was recorded first.
D. encroachment. - answer>>>B. lien.
Easements and encroachments are examples of: A. liens on real property. B. encumbrances on real property. C. eminent domain. D. police power. - answer>>>B. encumbrances on real property.
Which of the following would be classified as an encumbrance that would affect the physical condition of the property? A. Judgement. B. Mechanics liens. C. Mortgages. D. Easements. - answer>>>D. Easements.
When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n): A. deficiency judgment. B. lis pendens. C. estoppel certificate. D. mechanic's lien. - answer>>>D. mechanic's lien.
A mechanic's lien would be properly classified as a(n): A. equitable lien. B. voluntary lien. C. general lien. D. specific lien. - answer>>>D. specific lien.
A property owner contracted to have a swimming pool installed on her property. When the pool
was completed, she refused to pay for the improvement, and the contractor filed a lien for nonpayment. This lien was most likely a: A. general lien. B. special lien. C. specific lien. D. voluntary lien. - answer>>>C. specific lien.
A painter did some work on an owner's house and was not paid. The owner also owned several other properties in the same neighborhood. The painter would most likely file a mechanic's lien against: A. all the owner's real property. B. all the owner's personal property. C. the owner's property worked on by the painter. D. both the owner's real and personal property. - answer>>>C. the owner's property worked on by the painter.
If a mechanic's lien is NOT enforced within the statutory period of time, which of the following occurs? A. The lien is foreclosed. B. The lien expires. C. The lien is withdrawn. D. A court will order an attachment. - answer>>>B. The lien expires.
A property had a judgment filed against it. This was the result of a: A. mechanic's lien. B. law suit. C. mortgage foreclosure. D. tax sale. - answer>>>B. law suit.
of the debtor be sold to pay the debt? A. Real estate tax lien. B. Mechanic's lien. C. Judgment lien. D. Assessment. - answer>>>C. Judgment lien.
A person owns a car, boat and farm land. If a judgment were issued against the person, which of the properties could the lien be placed on: A. only the farm land. B. only the car. C. only the boat. D. the car, boat and farm land. - answer>>>D. the car, boat and farm land.
A statutory lien created in favor of suppliers and laborers to secure payment for materials supplied and services rendered in the improvement of real property is called a: A. Judgement. B. Mechanic's lien. C. Lis pendens. D. Mortgage lien. - answer>>>B. Mechanic's lien.
A private agreement, usually contained in a deed that restricts the use of real property is called: A. a deed restriction. B. a building code. C. an encroachment. D. a license. - answer>>>A. a deed restriction.
Deed restrictions may NOT legally control or limit: A. sizes and types of structures to be built. B. potential future uses of the properties. C. the race of future owners and occupants of a property.
D. exterior finish and decoration of the structures. - answer>>>C. the race of future owners and occupants of a property.
Which of the following statements is correct about restrictive covenants? A. They are agreements in a deed between private parties placing limitations on real property. B. They apply only to developers and do not bind subsequent buyers. C. They are agreements placed in a deed by government agencies. D. Restrictions cannot be terminated. - answer>>>A. They are agreements in a deed between private parties placing limitations on real property.
A subdivision was developed, and one of the deed restrictions covering all of the properties in the subdivision set aside the back six feet of each parcel as a combination green belt area and bicycle path. Homeowner Baird plans to convert the back one-half of her yard into an organic garden. Her neighbors can: A. do nothing because individual homeowners have no authority in this matter. B. go to court in an attempt to obtain injunctive relief. C. force homeowner Baird to sell his property. D. share in the profits from Baird's garden. - answer>>>A. do nothing because individual homeowners have no authority in this matter.
If the government zoning regulations conflict with the private deed restrictions, which would take precedence? A. Government zoning regulations. B. Private deed restrictions. C. The more restrictive would take precedence. D. Private deed restrictions if they were recorded before the zoning was enacted. - answer>>>C. The more restrictive would take precedence.
B. a building code. C. a zoning ordinance. D. a deed restriction. - answer>>>D. a deed restriction.
Grant owned two acres of land. He sold one acre to Falk and reserved for himself an appurtenant easement over Falk's land for ingress and egress. Grant's land will benefit from easement and: A. is the servient estate (tenement). B. is the dominant estate (tenement). C. can be cleared of the easement when Grant sells the withheld acre to a third party. D. is subject to an easement in gross. - answer>>>B. is the dominant estate (tenement).
A decedent left a will giving his neighbor the right to use a well on the decedent's land as long as the neighbor lived. The neighbor's interest in the property is properly called a(n): A. license. B. easement in gross. C. easement appurtenant. D. life estate. - answer>>>B. easement in gross.
An owner divides a parcel into several lots, one of which is completely surrounded by other lots and has no street access. Which of the following is true? A. The municipality must construct a street to create access. B. The owner must create an easement by condemnation to provide access. C. An easement by prescription should be granted. D. An easement by necessity should be created for the landlocked parcel. - answer>>>D. An easement by necessity should be created for the landlocked parcel.
Grant owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into smaller lots, but she wants to retain control over the lake
frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser? A. An easement. B. An appurtenant easement. C. An easement by necessity. D. A license. - answer>>>B. An appurtenant easement.
An owner has a house with a scenic view, but could lose the view if the adjoining property is developed. Which of the following actions can the owner do to preserve the view? A. Have the adjoining property rezoned. B. Acquire an easement from the adjoining owner. C. File a lawsuit if the adjoining owner builds. D. Purchase title insurance. - answer>>>B. Acquire an easement from the adjoining owner.
Your neighbors use your driveway to reach their garage which is on their property. Your attorney explains that ownership of the neighbors' real estate includes an easement appurtenant giving them the right to do this. Your property is the: A. leasehold interest. B. dominant tenement. C. servient tenement. D. license property. - answer>>>C. servient tenement.
Falk and Grant share a common driveway on a boundary line between their two properties. Can the right of use for the driveway be transferred to Falk's heirs when they inherit the property after Falk dies? A. Yes, it is an easement appurtenant and inheritable. B. Yes, it is an easement in gross and transferable.
