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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
2 / 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
4 / monuments. Two types of monuments -natural monuments tress, rocks, rivers -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
5 / 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
7 / an agreement. Did the parties intend that property would become part of the real estate? Can be hard to prove intent.
- Attachment Can the item be removed w/o causing major damage to the real property? Is the method of attachment of a permanent nature?
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- 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
10 / type of description was it? Answer Metes and bounds
- A brother and sister hold land as joint tenants. The sister conveys one-half of her interest to her husband. Ownership would now be held by the Answer Brother sister and her husband as tenants in common
- An owner granted a life estate to another but retained a future interest, which was a Answer Reversionary interest -The interest reverts back to the owners
- K, who had a life estate for the life of L, leased the property to M for five years. What would happen if K were to die. Answer
11 / K's heirs would be entitled to K's interest -the life estate is based on L's life
13 / 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?
14 / Answer Tenant Rights Tenants rights are chattels real (other rights are real property)
- Owning property as tenants in common permits each owner to Answer own un- equal shares
- Tenant-in-common interests need not be equal
- A swimming pool in a condo development would be regarded as Answer a common element
- common areas for all owners
- L,M, and N are joint tenants. N sells his interest to O, the M dies. Which statement is true Answer a. Ms heirs, O, and L are joint tenants b. M's heirs and L are joint tenants, but O is a tenant in common
16 / 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
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- 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 c. tenancy by the entirety d. tenancy in common Answer Tenancy in Common (TIC) to other than husband and wife if not stated in deed.
- J deeded property to K. The deed provided that if K ever used the property for the sale of alcoholic beverages, title would revert to J. The estate created by the conveyance is a(n) Answer Estate on condition subsequent. -The estate is presently valid but can be lost
- The lot and block reference in a legal description relates to
19 / 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?
20 / 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 Answer Fee simple Fee simple is the degree of ownership (estate) and others are forms of ownership
- A legal description outlines the boundaries of a property. What type of description is it? Answer Metes and bounds (also called measurements and directions)
