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Pearson Vue Real Estate Insurance Exam
Questions with Verified Answers
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Consist of 80 multichoice Questions with Answers
- What would result from a condition in a deed?
a. fee simple b. defeasible fee c. chattels real. d. nonfreehold estate Answer B. Defeasible Fee
Fee simple determinable is a defeasible estate that could be lost lost upon the happening of a specified condition. If a deed specifies that a grant shall be only "for as long as"; or while a property is
in a particular use, the length of the estate is really determined by the deed
- J installed central air-conditioning in his home. the compressor unit, which was located outside the home, would be regarded as what? Answer Real property
- an investor's personal assets could be subject to a creditor's claim in a... Answer General Partnership
An active partner and has unlimited personal liability for the debts of the partnership. One general partner can personally obligate the other general partners (Part of Tenancy in Partnership)
- How does an S corporation differ from other corporations? Answer Its investors have no personal liability
- A tenant in a commercial building installed a large sign that was anchored to the building with steel rods. Which term properly describes the sign?
-artificial monuments iron stakes, fences, roads
- Real property interests include... Answer an appurtenance that goes with the land.
Examples buildings, fences, trees, water rights, the ground below, mineral rights, air rights, easements
- What is a form of ownership that is restricted to husbands and wives? Answer Ten- ancy by the entirety.
Each owns the entire parcel. Neither can separately convey and interest during the other's life time. On the death of a spouse, the survivor owns the property
Divorce would change this ownership to a tenancy in common
- A tenancy in common differs from a joint tenancy in that... Answer
tenants in com- mon may have unequal interests
- Chattels real differ from appurtenances in that they Answer Are personal property
The definition of chattel refers to all personal property (things you own other than real estate). An example of chattel is your furniture and car.
- Rights, benefits, and improvements that go with the land are known as Answer
Appurtenances
- which would be classified as real property?
A. Trade Fixtures B. Chattels Real C. Water rights D. Mortgages
- Agreement A written agreement of the parties as to whether an item is a fixture and shall remain with the real estate or shall be regarded as personal property will govern the character of the property between the parties.
- All of the ownership rights that transfer with a fee simple estate are known as Answer bundle of rights
- Items that were formerly personal property but are now regarded as real property would be described as Answer Fixtures
- An example of a real property security would be
A.Condominiums sold with a mandatory rental pool arrangement B. General partnership shares in investment property C. a Pur Autre Vie Estate D. A vested remainder interest Answer
A. Condos sold with a mandatory rental pool arrangement
Real property security Investors are inactive participants, such as limited partner- ships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another.
- What are real property securities? Answer Investment in which investors are inactive participants, such as limited partnerships, investment contracts, and real estate investments trusts. Condos sold as investments with a mandatory rental pool agreement are also real property securities because the investor gives up management control to another.
- Part of a legal description on a deed stated " 38 degrees 7'". What type of description was it? Answer Metes and bounds
- A person other than the grantor has a future interest in a life estate. That interest would be Answer a remainder interest
-a third-party future interest is a remainder interest. An interest that reverted to the grantor would be a reversionary interest
- A life estate was lost by merger. Merger occurred when the Answer remainder interest holder purchased the life tenant's interest.
-The life interest and remainder interest are merged into a single interest
- The statutory right of a widow in the estate of her deceased husband is a Answer dower right
-in some states, a wife is entitled to a percentage of her husband's real property and/or a life estate in the husband's home upon the husbands death
- J had to pay a stock transfer fee when he sold his unit. What type of
development was it? Answer Cooperative
- each owner owns stock in a corporation and has the right to occupy a unity under a propriety lease. unlike condo ownership, co-op taxes and mortgage payments are generally made by the corporation, not by the individual owners.
- A leased far is sold. The growing crops belong to the Answer tenant.
-Growing crops are emblements
- Which of the following rights is considered personal property? Answer Tenant Rights
Tenants rights are chattels real (other rights are real property)
-When N sold to O, N broke the joint tenancy as to his or her interest, and O had a one-third interest. When M died, L took the share by survivorship. L has a two-thirds interest and O has a one-third interest.
- What is a partition action? Answer A court proceeding to break up a co-ownership
-An action to divide the land of a tenancy in common or joint tenancy when the owners cannot agree. The court could physically divide the property (if feasible) or order a sale.
- Which would be considered a limited common element in a condominium?
a. bearing walls between adjoining tenants b. community swimming pool c. parking space designated for a particular unit d. land under the units Answer Bearing walls between adjoining tenants
- commonly owned but reserved for use of a particular unit
- A buyer of a residential unit received a share of stock and occupancy
based on a lease. What type of development was the unit in? Answer Cooperative
-stock ownership + propriety lease ( a lease by a cooperative to a shareholder providing a right to occupy a unity)
- Joint tenancy and tenancy in common are similar in that
a. interest passes to heirs upon death of an owner b. interest of owners must be equal c. a sale of an interest requires approval of other owners d. all owners have equal rights of possession Answer All owners have equal rights of possession
- the only one of four unities present in tenancy in common is possession. there is no survivorship , on the death of tenant in common, his or her interest passes to the heirs by will, trust, or probate rather than to surviving tenants in common.
- A deed to a brother and sister did not specify how title should be taken. Title would be as a. joint tenancy b. tenancy in severalty
-there is no right to survivorship in TIC. Tenants by entirety and joint tenants would go to the survivor and Tenants in severalty would be only 1 owner
- J and his sister K were co-owners of a lot. K became the sole owner automatically when J died, because they owned the lot
a. in severalty b. in joint tenancy c. as community property d. in tenancy by entirety Answer In joint tenancy
Tenancy by entirety is only for spouses. Tenancy in Severalty is ownership by one individual or entity.
- L, M, and N owned property as joint tenants. M died, followed b y the death of N. Title to the property would be held by Answer L in severalty
- Interval exclusive occupancy coupled with a tenancy -in-common interest describes a(n) Answer timeshare ownership
-a time share can be a leasehold or fee simple interest for specified periods of time
- What is the highest form of ownership Answer Fee simple absolute -fee simple ownership has no time limitation and can be freely transferred and can be inherited.
- A property description in a deed mentioned a point of beginning. Which method was the description based on? Answer Metes and bounds
-measures from point to point
- A court will grant a request for partition when title is held Answer in joint tenancy or tenancy in common
- An example of an estate in real property would be
a. joint tenancy b. fee simple c. severalty ownership d. community property
tenant would now have a Answer fee simple
-life estate was lost by merger into greater fee simple interest
- J purchased a property with K as joint tenants. When J died, it was discov- ered that an encumbrance had been placed against J's interest in the property and that J's will provided that the property and interest should pass to L. How would title to the property be held? Answer K in severalty free of encumbrance.
Title passes free of J's encumbrance to the survivor. it does not pass by will.
- A condominium would be described as a(n)
a. undivided interest in the whole b. undivided interest in common areas and separate interest in the individual units c. separate interest in the whole d. divided interest in common areas and undivided interest in each unit Answer undi- vided interest in common areas and separate interest in individual units.
- condo owners own their own air pace, but common areas are owned with the other owners as tenants in common
- Homeowners associations meet the needs of Answer common interest development
-HOAs are present and collect assessments whenever there is a common interest development a
- A life estate could become a fee simple estate by Answer merger of interests
- when the owner of a life estate acquires the reversionary interest in the property, the interests become one and the title is no longer defeasible
