Real Estate Exam Key Concepts

Questions and Answers

Which of these options describes the annexing party's intent to make it permanent?

The annexing party's intent to make it permanent (correct)

The annexing party's interest in the real property

Neither of the above

The method of land description which identifies a parcel by specifying its boundary lines along with the terminal points and the bearing of each side is known as:

Government survey

Metes and bounds (correct)

Lot, block, and tract

Recorded plat

Which of the following is NOT an acceptable method of legally describing a parcel of real estate?

Recorded plats

Metes and bounds

Street addresses, county, and state (correct)

Rectangular surveys

A base point from which height or depth can be measured to describe air rights or subsurface rights is a:

Datum Signup and view all the answers

Approximately how many acres are there in a farm that measures 470 feet along the road and 556 feet in depth?

6 Signup and view all the answers

If Mr. Shern's lot has 65 front feet and contains 7,150 square feet, how deep is it?

110 ft Signup and view all the answers

Real estate investors are not generally interested in how long buildings will last, but in how long they will be profitable. This characteristic is called:

Economic life Signup and view all the answers

The government's right to make laws and regulations for the general welfare is known as:

Police power Signup and view all the answers

The City of Atlanta has condemned Nelson's land in order to extend its rapid transit services. This procedure is made possible because of the city's right of:

Eminent domain Signup and view all the answers

A private landowner has the right to:

Disinherit heirs Signup and view all the answers

In order to be effective, a lien should be:

Recorded Signup and view all the answers

The total collection of rights that may be claimed by private ownership is best described as:

The bundle of rights Signup and view all the answers

In real estate law, the word fee is closest in meaning to:

An estate of inheritance Signup and view all the answers

Which of the following is correct about an estate:

It can exist simultaneously with another estate in the same property Signup and view all the answers

Bob gives an estate to Jim for the life of Sue. Which of the following is true?

Jim has an estate pur autre vie Signup and view all the answers

A right or claim of a creditor to have a debt satisfied from the proceeds of the sale of the debtor's property in the event of default is:

A lien Signup and view all the answers

Except for property tax liens and in some cases mechanic's liens, priority of liens is determined by the:

Date of recording Signup and view all the answers

Jones, a life tenant, grants Smith an easement across Jones's land. Later, Jones dies. The easement will:

Terminate Signup and view all the answers

The Joneses have purchased an acre of land in Elite Acres subdivision and are aware that covenants might limit the ways in which they use their property. Which is true of private restrictions?

Covenants can be based on aesthetic considerations Signup and view all the answers

Unauthorized intrusion of a building, improvement, or other attachment onto neighboring land is:

An encroachment Signup and view all the answers

Smith signs an agreement with Jones to use and possess Jones's land until May 1st. Their agreement creates:

An estate for years Signup and view all the answers

All of the following can be characteristics of an easement EXCEPT:

An easement may be revoked at will by the servient landowner Signup and view all the answers

Telephone lines are examples of:

An easement in gross Signup and view all the answers

The law allows a person furnishing labor or materials for the improvement of real property to file a mechanic's lien against the property if he/she is not paid. Which of the following is correct concerning such liens?

A mechanic's lien will expire if the claimant does not take the necessary steps to enforce it Signup and view all the answers

All of the following can be acceptable methods of terminating an easement EXCEPT:

Revocation of the easement by the owner of the servient estate Signup and view all the answers

Farmer Brown is tired of hard work. He is deeding 165 acres of his farm to his son and keeping only 5 acres and a house for his own use. He will need an easement across his son's land so that he can get to his own. How is the easement created?

Through a reservation in the deed Signup and view all the answers

Which of the following is INCORRECT concerning a conventional life estate?

Life estates always pass to the remainderman Signup and view all the answers

A freehold estate is defined as one that:

Will last indefinitely Signup and view all the answers

A 'homestead' might be defined as a family home. Some states have Homestead Laws which afford some protection for the home from seizure to pay debts of a deceased owner/breadwinner. These laws are designed to protect:

The bereaved family Signup and view all the answers

Revocable permission granted to hunt on another's land is an example of:

A license Signup and view all the answers

What do dower and curtesy rights have in common?

Legal life estate Signup and view all the answers

Which of the following phrases would be most typical of a fee simple determinable estate?

'For so long as' Signup and view all the answers

All of the following items are personal property EXCEPT:

A privacy fence Signup and view all the answers

A seller wishes to remove certain shrubs planted in the front yard and not include them in the sales price of the home. What is true?

The seller may do so only if permission for the removal is specifically stated in the sales contract. Signup and view all the answers

A permanent addition to a building is:

Real property Signup and view all the answers

The transfer of land ownership automatically includes:

Fixtures Signup and view all the answers

Water rights along a large, navigable lake or ocean are known as:

Littoral rights Signup and view all the answers

Water table refers to the:

Level at which percolating water is found below the earth's surface. Signup and view all the answers

Of the following items which is considered real property?

Riparian rights Signup and view all the answers

All of the following are appurtenances EXCEPT:

Trade fixtures Signup and view all the answers

Real property is changed into personal property by:

Severance Signup and view all the answers

Which of the following would be considered an artificial monument when used in a metes and bounds legal description?

A fence corner Signup and view all the answers

An adequate metes and bounds description will have all of the following EXCEPT:

Four sides Signup and view all the answers

The point of beginning on a plat of survey is marked with reference to a:

Benchmark Signup and view all the answers

If a man has 6 acres of land and deeds 3/4 of it to a son and the remainder to a nephew, how many square feet of land does the nephew acquire?

65,340 Signup and view all the answers

How many cubic feet of space is there in a warehouse that is 610 feet wide by 140 feet deep and has an 18 foot ceiling?

1,537,200 Signup and view all the answers

Which of the following would be acceptable on a sales contract?

Legal description attached and made a part hereof by reference Signup and view all the answers

When it is necessary to prepare a new metes and bounds description, it should be done by:

A licensed surveyor Signup and view all the answers

You have a prospective purchaser for a home, and the listing agent has not been able to provide you with a legal description. Which statement describes your best course of action?

Find the legal description yourself at the courthouse or on the computer Signup and view all the answers

If the only land description you have provided on your offer is the street address:

This contract is probably unenforceable. Signup and view all the answers

A metes and bounds description must have all the following EXCEPT:

The approximate square footage or acreage Signup and view all the answers

A metes and bounds description might be insufficient if:

It does not have enough sides to close Signup and view all the answers

Which of the following best describes a parcel of land?

The surface of the earth extending down to the center and upward to infinity Signup and view all the answers

In determining whether an item is a fixture, which of the following would not be considered?

Value of the item Signup and view all the answers

The characteristic that distinguishes personal property from real property is:

Mobility Signup and view all the answers

When used in a deed or other real estate document, legal description describes only the land because:

Buildings and other improvements are considered to be part of the real estate Signup and view all the answers

An item that was personal property but has been attached to and become part of the real property is known as:

A fixture Signup and view all the answers

Crops planted and harvested each year are:

All of the above Signup and view all the answers

The most distinctive physical characteristic of land is:

Immobility Signup and view all the answers

All of the following are real property EXCEPT:

Cut timber Signup and view all the answers

The law of capture refers to the:

Process of removing oil and gas from the land. Signup and view all the answers

The sum of all factors that affect value is called:

Situs Signup and view all the answers

Ownership of personal property is transferred by:

Bill of sale Signup and view all the answers

A landowner's right to use water from a bordering stream or river is called:

Riparian right Signup and view all the answers

If Smith builds a fence on Jones' land by mistake, in good faith, and thinks the fence is on Smith's land, then:

Jones may require Smith to remove the fence and/or pay damages. Signup and view all the answers

The fact that an acre of land in a rural area cannot fulfill as many needs as an acre of urban land describes the economic characteristic of:

Scarcity Signup and view all the answers

All of the following are true about a trade fixture EXCEPT:

It may be removed only after the lease expires Signup and view all the answers

Dawson sold a 500-acre farm to Harris but reserved the right to drill for oil. Later, when Dawson arrives with oil drilling equipment, he is denied the right access to the land. Which party has correctly interpreted the agreement?

Dawson, because he has an implied right of entry Signup and view all the answers

A township contains how many square miles?

36 Signup and view all the answers

Which of the following statements about air rights is true?

The owner can sell the air rights and still retain the surface and subsurface rights. Signup and view all the answers

Study Notes

Real Estate Exam Key Concepts

Police Power: The authority of the government to regulate for public welfare, distinct from eminent domain and other rights.
Eminent Domain: The government's power to seize private property for public use after fair compensation, as demonstrated by the City of Atlanta.
Bundle of Rights: Refers to the total collection of rights associated with property ownership, including the right to sell, lease, or use the property.
Lien Recording: For a lien to be enforceable, it must be recorded; this establishes priority over debts.
Estate Types:
- A fee simple estate is inheritable.
- An estate pur autre vie is measured by the life of someone other than the owner.
Easements: Rights to use another person's land for a specific purpose.
- Easements can be created through deeds or by necessity.
- They do not automatically continue after the dominant tenant’s death if granted for a life estate.
Servient vs Dominant Estate:
- The servient estate is the property burdened by the easement.
- The dominant estate is the property that benefits from the easement.
Marketable Title: A property title that is clear and free of disputes, which will support real estate sales.
Real vs Personal Property:
- Real property includes land and structures permanently affixed to it.
- Personal property is movable and includes items such as furniture or vehicles.
Fixture: An item initially considered personal property but attached to real property, becoming part of it unless specified otherwise.
Trade Fixtures: Items used for business that can be removed by the tenant, unlike ordinary fixtures which belong to the property owner if not removed timely.

Water Rights and Land Descriptions

Riparian Rights: Rights of a landowner to water from a bordering river or stream.
Littoral Rights: Rights pertaining to bodies of water like lakes or oceans.
Land Description Methods:
- Metes and Bounds: This method defines a parcel based on measurements and boundaries.
- Lot and Block: Descriptions that rely on recorded plats.
- Rectangular Survey System: Division of land into townships and sections.

Legal Terms and Their Implications

Homestead Laws: Protects a family home from being seized for debts, safeguarding the bereaved family.
Dower and Curtesy: Legal rights granted to a spouse to inherit a portion of the other spouse's estate upon death.
Mechanics' Lien: A security interest in the property for contractors and suppliers who have not been paid for their work, with priority dependent on recording.
Encroachment: The unauthorized intrusion of a building or structure onto another person's property.
Liabilities and Easements: Easements can terminate under certain conditions, such as abandonment or if the use is continuously obstructed.

Calculations and Real Estate Math

Township Size: Each township consists of 36 square miles, equating to 640 acres.
Area Calculations:
- To determine the acres or square footage, formulas involving length and width are applied.
- Remember: 1 acre = 43,560 square feet.
Volume Measurements: For cubic spaces, multiply width, depth, and height.

Characteristics of Real Estate

Immobility: Land cannot be moved; it is fixed in location.
Uniqueness: No two parcels of land are the same, a principle that drives real estate value.
Economic Characteristics: Factors like scarcity, location, and improvements substantially impact property value and desirability.

This summary encapsulates key concepts, terms, and calculations relevant to real estate, aiming to aid in exam preparation and understanding of the subject.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on key concepts in real estate such as police power, eminent domain, and different types of estates. This quiz covers essential terminology and principles you need for your real estate examination. Prepare for your exam by reviewing these critical concepts!