Download Real Estate Dynamics (Capitus) - Study Set: Questions with Detailed Verified Answers and more Exams Real Estate Management in PDF only on Docsity!
REAL ESTATE DYNAMICS (CAPITUS) - STUDY SET
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS)
"1.1 Which of the following is NOT an acceptable method of legally describing a parcel of real estate? A. Street addresses, county, and state. B. Metes and bounds. C. Rectangular surveys.
D. Recorded plats. - CORRECT ANSWER A. Street addresses, county, and state."
"1.2 A base point from which height or depth can be measured to describe air rights or subsurface rights is a: A. Topographic. B. Bench mark. C. Point if beginning.
D. Datum. - CORRECT ANSWER D. Datum."
"1.3 Approximately how many acres are there in a farm that measures 470 feet along the road and 556 feet in depth? A. 261. B. 6. C. 50.
D. 320. - CORRECT ANSWER B. 6."
"1.4 If Mr. Shern's lot has 65 front feet and contains 7,150 square feet, how deep is it? A. 110 ft.
B. 100 ft. C. 65 ft.
D. 464,650 ft. - CORRECT ANSWER A. 110 ft."
"1.5 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: A. Life expectancy. B. Profit margin. C. Net return.
D. Economic life. - CORRECT ANSWER D. Economic life."
"1.6 Crops planted and harvested each year are: A. Personal property. B. emblements. C. Fructus industriales.
D. All of the above. - CORRECT ANSWER D. All of the above."
"1.7 The most distinctive physical characteristic of land is: A. Homogeneity. B. Immobility. C. Situs.
D. Improvements. - CORRECT ANSWER B. Immobility."
"1.8 All of the following are real property EXCEPT:
A. Littoral Right. B. Right of prior appropriation. C. Riparian right.
D. Correlative right. - CORRECT ANSWER C. Riparian Right."
"1.13 If Smith builds a fence on Jones' land by mistake, in good faith, and thinking the fence is on Smith's land, then: A. Jones automatically acquires ownership of the fence by accession. B. Jones may sell the fence and keep the proceeds. C. Jones may require Smith to remove the fence and/or pay damages.
D. Both (A) and (B). - CORRECT ANSWER C. Jones may require Smith to remove the fence
and/or pay damages." "1.14 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: A. Scarcity. B. Situs. C. Improvements.
D. Location. - CORRECT ANSWER A. Scarcity."
"1.15 All of the following are true about a trade fixture EXCEPT: A. It is personal property. B. It is Chattel real. C. It may be removed only after the lease expires.
D. It belongs to the property owner if not removed in a timely manner. - CORRECT ANSWER C.
It may be removed only after the lease expires." "1.16 Dawson sold his 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 of access to the land. Which party has correctly interpreted the agreement? A. Dawson, because he has an implied right of entry. B. Harris, because the agreement was silent as to the right of entry. C. Dawson, but he must pay Harris a reasonable fee for the right of access and reimburse him for any damages caused by the drilling operation.
D. Harris, but he may be liable if his denial was unreasonable. - CORRECT ANSWER A. Dawson,
because he has an implied right of entry." "1.17 A township contains how many square miles? A. 6. B. 16. C. 640.
D. 36. - CORRECT ANSWER D. 36."
"1.18 Which of the following statements about air rights is true? A. Air rights can be leased but not sold unless the entire parcel is being sold. B. The owner can sell the air rights and still retain the surface and subsurface rights. C. Government controls such as zoning have no effect on air rights.
D. Structures are rarely erected on air lots. - CORRECT ANSWER B. The owner can sell the air
rights and still retain the surface and subsurface rights." "1.19 A custom-made storm window would most likely be considered a fixture because of:
C. Value of the item.
D. Legal interest of the annexing party. - CORRECT ANSWER C. Value of the item."
"1.23 The characteristic that distinguishes personal property from real property is: A. Mobility. B. Scarcity. C. Durability.
D. Flexibility. - CORRECT ANSWER A. Mobility."
"1.24 When used in a deed or other real estate document, a legal description describes only the land because: A. A bill of sale is used to convey title to the buildings and other improvements. B. Artificial attachments. such as buildings, cannot be adequately surveyed. C. Buildings and other improvements are considered to be part of the real estate.
D. A street address is used to identify the buildings and improvements. - CORRECT ANSWER C.
Buildings and other improvements are considered to be part of the real estate." "1.25 An item that was personal property but has been attached to and become party of the real property is known as: A. A trade fixture. B. An emblement. C. Fructus industrales.
D. A fixture. - CORRECT ANSWER D. A fixture"
"2.1 The government's right to make laws and regulations for the general welfare is known as:
A. Eminent domain. B. Police power. C. Escheat.
D. The bundle of rights. - CORRECT ANSWER B. Police power."
"2.2 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: A. Entry. B. Escheat C. Eminent domain.
D. Police power. - CORRECT ANSWER C. Eminent Domain."
"2.3 A private landowner has the right to: A. Reject a claim for taxes. B. Repudiate a zoning ordinance. C. Disinherit heirs.
D. Refuse to sell the property or otherwise prevent the city from taking it for use as a street. -
CORRECT ANSWER C. Disinherit heirs."
"2.4 In order to be effective, a lien should be: A. Recorded. B. Published. C. Renewed.
D. Delivered. - CORRECT ANSWER A. Recorded."
"2.9 A right or claim of a creditor to have a debt satisfied from the proceeds of the sale of other debtor's property in the event of default is: A. An attachment. B. A judgement. C. A writ of execution.
D. A lien. - CORRECT ANSWER D. A lien."
"2.10 All of the following forms of deeds contain some covenants or warranties either expressed or implied except: A. General warranty deed. B. Quit claim deed. C. Special warranty deed.
D. Grant deed. - CORRECT ANSWER B. Quit claim deed."
"2.11 Ms. Smith, who is in good health, makes a will leaving her real property to Mr. Jones. Under such circumstances, all of the following are true statements EXCEPT: A. Jones has no interest in Smith's property despite being a devisee. B. Smith's will must be probated after her death in order to pass title to Jones. C. Smith can convey to a third party all the interest she has in the property despite the will.
D. Smith is Jones' heir. - CORRECT ANSWER D. Smith is Jones' heir."
"2.12 Ms. Smith properly executed a power-of-attorney authorizing Mr. Jones to sign a deed for her, pursuant to the closing of a sales contract. Unknown to Mr. Jones or to the purchaser at the time. Ms. Smith died the night before Mr. Jones signed the deed. under these circumstances: A. The conveyance is probably valid.
B. The conveyance is not valid. C. A power-of-attorney lasts until revoked by will of the grantor. D. Power-of-attorney is effective for 60 days after the lifetime of the person granting such
authority. - CORRECT ANSWER B. The conveyance is not valid."
"2.13 Involuntary methods of conveying property include all of the following except: A. Escheat. B. Condemnation. C. Quit claim.
D. Adverse possession. - CORRECT ANSWER C. Quit claim."
"2.14 Under which of the following circumstances would title be transferred by descent? A. Testator has living heirs. B. Voluntary alienation. C. Intestate succession.
D. According to last will and testament. - CORRECT ANSWER C. Intestate succession."
"2.15 Alienation expresses a meaning most completely opposite to: A. Foreclosure of mortgage. B. Transfer of property. C. Acquisition of property.
D. Action by the grantor. - CORRECT ANSWER C. Acquisition of property."
A. Through a reservation in the deed. B. By having the son sign a lease. C. By recording a new plat map and survey.
D. Through an exception in the deed. - CORRECT ANSWER A. Through a reservation in the
deed." "2.20 Which of the following is INCORRECT concerning a conventional life estate? A. The owner is called the life tenant. B. The owner does not have to die for the estate to end. C. Life estates always pass to the remainderman.
D. A life estate may be sold, leased, or mortgaged. - CORRECT ANSWER C. Life estates always
pass to the remainderman." "2.21 A "freehold estate" is defined as one that: A. Has a condition attached to it. B. Includes an estate for years. C. Is similar to a leasehold.
D. Will last indefinetely. - CORRECT ANSWER D. Will last indefinetely."
"2.22 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: A. The mortgage lender. B. The community. C. The breadwinner.
D. The berevered family. - CORRECT ANSWER D. The berevered family."
"2.23 Revocable permissions granted to hunt on another's land is an example of: A. An incorporeal easement. B. A license. C. An easement by prescription.
D. An easement appurtenant. - CORRECT ANSWER B. A license."
"2.24 What do dower and curtesy rights have in common? A. Legal life estate. B. Possessory estate. C. Leasehold estate.
D. Remainder estate. - CORRECT ANSWER A. legal life estate."
"2.25 Which of the following phrases would be most typical of a fee simple determinable estate? A. "provided that" B. "on the expressed condition" C. "with the intention of"
D. "for so long as" - CORRECT ANSWER B. "on the expressed condition""
"3.1 The right of survivorship is associated with: A. Tenancy in common and condominium ownership. B. Tenancy by the entireties and joint tenancy. C. Tenancy in common and joint tenancy.
C. Concurrent ownership.
D. The right of survivorship. - CORRECT ANSWER D. The right of survivorship."
"3.6 A broker is asked by a husband and wife how they should take title to the home they are buying. The broker should: A. Recommend they consult an attorney. B. Recommend they ask the lender. C. Explain the difference between joint tenants and tenancy in common so they can decide for themselves. D. Ask them what they want in terms of liability and survivorship and then suggest the best
method according to the laws of their particular state. - CORRECT ANSWER A. Recommend
they consult an attorney." "3.7 Smith, Jones, and Black are joint tenants. Smith sells his interest to White. With regard to this conveyance: A. Jones, Black, and White are now joint tenants. B. Jones, Black, and White are now tenants in common. C. White owns a one-third interest as a tenant in common with Jones and Black, who still own one-third each as joint tenants. D. Smith cannot legally convey an interest without a partition suit terminating the co-ownership
obligations. - CORRECT ANSWER C. White owns a one-third interest as a tenant in common
with Jones and Black, who still own one-third each as joint tenants." "3.8 Harper, Murphy, and Jackson own an investment property as tenants in common. Because of a recent business disagreement, Jackson wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Jackson may seek an equitable distribution of the property by filing a: A. Lis pendens.
B. Partnership agreement. C. Partition suit.
D. Declaration of severalty. - CORRECT ANSWER C. Partition suit."
"3.9 The land on which a high-rise condominium stands is owned by: A. A nonprofit corporation. B. The individual unit owners as tenants in common. C. A syndicate.
D. A limited partnership. - CORRECT ANSWER B. The individual unit owners as tenants in
common." "3.10 A deed in favor of James and Rosen with stated proportionate interest of one-third and two thirds, respectively, without the right of survivorship, creates: A. A joint tenancy. B. Tenancy in common. C. Severalty ownership of the property.
D. A general partnership. - CORRECT ANSWER B. Tenancy in common."
"3.11 Laura occupies an apartment in a multiple unit building. Each month she pays the association an assessment for her share of the mortgage payment, property taxes, and a fee for building maintenance. The form of ownership that Laura shares with the other individual owners is called: A. A condominium. B. Time sharing. C. Limited partnership.
D. A cooperative. - CORRECT ANSWER D. A cooperative."
D. For years. - CORRECT ANSWER A. In common."
"3.16 What is the one unity in a tenancy in common ownership? A. Interest. B. Possession. C. Time.
D. Title. - CORRECT ANSWER B. Possession."
"3.17 Prior to John's marriage to Mary he owned forty acres of land. While they were married, John paid $85,000 for a new home and Mary inherited an apartment building valued at $220,000. If they live in a state that recognizes community property ownership, which of the following represents their community property? A. Forty acres of land. B. Home. C. Apartment building.
D. None of the above. - CORRECT ANSWER B. Home."
"3.18 A married woman and an unmarried man may not own real estate as: A. Tenants in common. B. Joint tenants. C. Tenants by the entireties.
D. General partners. - CORRECT ANSWER C. Tenants by the entireties."
"3.19 Phil, Tom, and Bill form a partnership to buy investment property. Their first purchase is a duplex. Phil and Tom invest $15,000 each. Bill agrees to accept all management responsibilities and liability for the partnership. What kind of partnership did they form? A. General.
B. Limited. C. Special.
D. Trust. - CORRECT ANSWER B. Limited."
"3.20 The owner of a cooperative apartment unit: A. Owns stock in a nonprofit corporation. B. Holds fee simple title that may be sold, mortgaged, or leased. C. Owns the unit in fee simple with an undivided interest in the common elements.
D. Holds title in partnership with the other unit owners. - CORRECT ANSWER A. Owns stock in
a nonprofit corporation." "3.21 A creditor may seek satisfaction of a debt from the personal assets of each co-owner of a: A. General partnership. B. Limited partnership. C. Cooperative.
D. All of the above. - CORRECT ANSWER A. general partnership."
"3.22 Kristin has purchased a condominium apartment in Happy Gardens. Which of the following statements about Kristin's ownership rights is true? A. She is entitled to the exclusive use of the lawn in front of her unit. B. She has no liability if another owner in her building is foreclosed. C. Her monthly mortgage payment includes principal, interest, taxes, and hazard insurance. D. She can deduct the cost of swimming pool upkeep from her monthly maintenance fee if she
does not swim. - CORRECT ANSWER B. She has no liability if another owner in her building is
foreclosed."
