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PENNSYLVANIA REAL ESTATE FUNDAMENTALS FINAL EXAM
WITH CORRECT ANSWERS
"In Pennsylvania, mine activities refers to - CORRECT ANSWER Subsurface rights"
"Pennsylvania requires the seller to provide notice to a purchaser about whether a structure on
the land is entitled to support from the underlying this is known as the - CORRECT ANSWER
Subsistence support"
"Purpose of Real Estate License Laws - CORRECT ANSWER to protect the public from fraud,
dishonesty, and incompetence in real estate transactions" "Method of annexation, adaptation to real estate, and agreement between the parties are the
legal tests for determining whether an item is - CORRECT ANSWER a fixture or personal
property"
"The purpose of the laws concerning asbestos is to - CORRECT ANSWER Minimize the release
of asbestos fibers during construction and removal" "To be valid, a lease must meet certain requirements, which are essentially the same as in any
other contract. Which of the following is NOT one of those requirements - CORRECT ANSWER
Validation"
"The leasehold estate that automatically renews itself at the end of the lease is - CORRECT
ANSWER Tenancy from period to period"
"Many states determine water use by allocating water to users who hold recorded beneficial use permits. This type of water use privilege is called a. riparian rights b. littoral rights c. the doctrine of prior appropriation
d. the doctrine of highest and best use - CORRECT ANSWER c. the doctrine of prior
appropriation In states that subscribe to the doctrine of prior appropriation, the right to use water is controlled by the state. To secure water rights in these states, a landowner must secure a permit to use a specified amount of water for a beneficial use."
"A person who has complete control over a parcel of real estate is said to own a - CORRECT
ANSWER fee simple estate.
Fee Simple, also known as fee simple absolute is known as the highest degree of ownership. The other "estate" terms are all much more limited forms of ownership - a life estate expires over time, a leasehold estate has a definite term, and a defeasible estate is limited by a certain event happening." "A person wants to ensure that the ownership of real property can be willed to her children.
Which form of ownership would the person want? - CORRECT ANSWER fee simple estate"
"After a tenant lease expired , the tenant neither vacated nor negotiated a renewal lease. The landlord has declared that she does not want the tenant to remain in the building. The tenant
hold - CORRECT ANSWER An estate at sufferance"
"A tenant lease will expire in two weeks at which time, the tenant will move into larger quarters
on the other side of town. To terminate the agreement. - CORRECT ANSWER Nothing needs
to be done the agreement will terminate automatically"
"Tenancy from Period to Period - CORRECT ANSWER a leasehold estate that continues to
automatically renew each period unless terminated by either party"
“Bundle of Legal Rights is property included in - CORRECT ANSWER The definition of real
property"
"Bundle of rights concept - CORRECT ANSWER Possession, Enjoyment, Exclusion, Disposition,
control"
"Land is considered to be - CORRECT ANSWER indestructible"
"The Comprehensive Plan - CORRECT ANSWER Is not a regulatory document"
"buffer zones - CORRECT ANSWER A strip of land, usually used as a park or designated for a
similar use, separating land dedicated to one use from land dedicated to another use."
"Inverse Condemnation - CORRECT ANSWER action, initiated by a property owner against the
government, to recover the loss in property value"
"Which of the following would probably not be included in a list of deed restrictions - CORRECT
ANSWER How many family members can live on the property"
"physical chracteristics of land - CORRECT ANSWER Immobility, indestructibility, uniqueness,
nonhomogeneity means that two properties are the same ." "determine whether a location can be put to future use as a restaurant, one would examine the
CORRECT ANSWER Zoning ordinances"
"real estate - CORRECT ANSWER land and anything that is attached to it"
"Nonhomogeneity - CORRECT ANSWER uniqueness"
"Economic Characteristics of Land - CORRECT ANSWER scarcity, modification, improvements,
permanence of investment, area preference. I"
"Real property can be converted into personal property through - CORRECT ANSWER
severance" "The tenant of a single-family home installs an awning over the buildings front windows to keep
the sun away from some delicate hanging plants. Which of the following is TRUE? - CORRECT
ANSWER The awning is considered a fixture"
"Which entity is generally responsible for creating the requirements for a real estate license -
CORRECT ANSWER individual state law"
"Seller need to provide notice to a purchase about whether a structure on the land is entitled to
support from the underlying coal. - CORRECT ANSWER Coal notice"
"Homeowners is building an enclosed front porch on his home. A truckload of lumber that the homeowner purchase has been left in the driveway for use in building the porch. Lumber is
considered - CORRECT ANSWER Personal property"
"Which of the following is required in Pennsylvania real estate transactions - CORRECT
ANSWER Coal mining notice"
"What is the process that often produces sink holes or troughs in some Pennsylvania regions -
CORRECT ANSWER Mine subsidence"
"Restrictive Covenants - CORRECT ANSWER agreements among homeowners not to sell real
estate to certain groups of people"
"Variance - CORRECT ANSWER Provides relief for property owners who can demonstrate that
a zoning ordinance deprives them of the reasonable use of property"
"Deed Restrictions - CORRECT ANSWER Provision placed in deeds to control future uses of the
property."
"Plat - CORRECT ANSWER A map illustrating the sizes and location"
"percolation test - CORRECT ANSWER a soil test designed to measure rate of water absorption
and drainage such as for septic systems"
"Injunction Relief - CORRECT ANSWER An order for the violator of a contract to stop the illegal
activity"
"Court Injunctions - CORRECT ANSWER is a court order that prevents a party from performing
a specific act and may be temporary of permanent"
"air pollution - CORRECT ANSWER Is not considered an environmental hazard"
"Encapsulation - CORRECT ANSWER Method of sealing disintegrating asbestos"
"A lot in a recorded subdivision will not include the - CORRECT ANSWER The year it was
subdivided" "A metes-and-bounds description used direction and distance measurements to establish precise
boundaries for a parcel. These are used to establish those boundaries. - CORRECT ANSWER
Monuments"
"The term encapsulation refers to the - CORRECT ANSWER method of sealing disintegrating
asbestos"
"One method of sealing off disintegrating asbestos is called - CORRECT ANSWER
encapsulation"
"What environmental hazard is found in old air conditioners, refrigerators, and freezers? -
CORRECT ANSWER Chlorofluorocarbons"
"What is required before any federally funded development project is approved? - CORRECT
ANSWER Environmental Impact Statement (EIS)"
"Contamination by underground storage tanks is - CORRECT ANSWER Regulated by the EPA ."
"A monument is used in which type of legal description? a. lot and block b. metes and bounds c. rectangular survey
d. street address - CORRECT ANSWER b. metes and bounds
The term monument refers to a fixed, unchanging reference point used to locate the point of beginning (POB) for a specific parcel of real estate. A monument is critical to create an accurate metes-and-bounds legal description."
"An acre contains - CORRECT ANSWER 43,560 square feet"
"Who is required by the condominium laws to prepare a plat map showing the elevations of floors
and ceiling surfaces? - CORRECT ANSWER A registered land surveyor"
"Which of the following is MOST likely to be included in a legal description of a condominium
description? - CORRECT ANSWER Fractional share of the buildings common elements"
"A map that shows the location, size, and shape of buildings located on a lot is called a -
CORRECT ANSWER Spot survey"
"The newly acquired deposited of soil, gravel or sand upon the bank of a river are called -
CORRECT ANSWER Alluvion"
"Where is the property line generally lactated for property owners whose land borders a lake? -
CORRECT ANSWER The middle of the lake"
"A lease requires a minimum rent of 1,800 per month, plus 6% of the businesses sales over
130,000. On an annual sales volume of 320,000, the annual rent would be: - CORRECT
ANSWER 33,000"
"The purpose of security deposite is to - CORRECT ANSWER Repair damage to the property
caused by the the tenant" "When a tenant breaches a lease or improperly retains possession of the premises, the landlord
may regain possession through a legal process known as - CORRECT ANSWER Actual eviction"
"Quite Enjoyment means - CORRECT ANSWER The landlord must give the tenant notice
before coming into the apartment."
"All of the following are powers of the government EXCEPT - CORRECT ANSWER
Condemnation"
"A property was seeded to a church " for religious purposes only " conveys a - CORRECT
ANSWER Fee simple on condition subsequent"
"When does a property's ownership revert to the state via escheat - CORRECT ANSWER
Owner dies without a will or heirs"
"A person who has complete control over a parcel of real estate is said to own a - CORRECT
ANSWER fee simple estate"
"What is the maximum security deposit that a landlord may charge for the first year? -
CORRECT ANSWER Up to 2 months rent"
"Which of the following is NOT a leasehold estate - CORRECT ANSWER Estate for months"
a. fee simple absolute. b. fee simple on condition precedent. c. leasehold interest.
d. fee simple on condition subsequent. - CORRECT ANSWER d. fee simple on condition
subsequent Property conveyed "for educational purposes only" or some other condition creates a fee simple estate qualified by a "condition subsequent." If the condition is broken, the former owner can initiate legal action to reclaim ownership." "A man conveys ownership of his residence to his daughter but reserves for himself a life estate in the residence. The interest the daughter owns during her father's lifetime is a. pur autre vie. b. a future interest. c. a current interest.
d. a leasehold. - CORRECT ANSWER b. a future interest
the man has conveyed a future interest to his daughter, known as a remainder interest. During his life, the man owns the life estate and is the life tenant. upon his death, ownership passes to the daughter as the remainderman."
"Which is a characteristic of an appurtenant easement? - CORRECT ANSWER Runs with the
land" "Where is the property line generally located for Pennsylvania property owners whose land
borders Lake Erie? - CORRECT ANSWER Mean high water mark"
"The acquisition of land through deposit if soil or sand washed up by water is called - CORRECT
ANSWER Accretion"
"Under what conditions may cause property ownership to revert to the state? - CORRECT
ANSWER Owner dies without a will or heirs"
"What is the term for this newly created increase in land - CORRECT ANSWER Reliction"
"All of the following will terminate an easement EXCEPT - CORRECT ANSWER release of the
right of easement to the dominant tenement" "A lot is encumbered by a sewer easement that runs where the foundation of a building would be.
How will this affect the owner, who wants to build a house? - CORRECT ANSWER The house
must be constructed to avoid the easement."
"A daughter conveys the ownership of her apartment building to nursing home, anticipating that the rental income will help pay for her fathers care there. When her father dies, the daughter will
recapture the ownership of the apartment building. This is an example of a - CORRECT
ANSWER Life Estate pur autre vie"
"For land to be taken by the government under its right of eminent domain, which of the following must apply? A) The taking must be for a public purpose. B) There must be a statutory dedication. C) This must be an adverse action.
D) There must be constructive notice. - CORRECT ANSWER A) The taking must be for a public
purpose." "Which of the following transactions would be the best to be described as involving a ground
lease? - CORRECT ANSWER With the landowners permission, a tenant builds and owns a
shopping center in a vacant land lease for the land leases from the landowner" "What is the maximum amount of security deposit that a residential landlord may charge for the
first year - CORRECT ANSWER Up to two months' rent"
"How soon must the landlord return the tenants security deposit after termination of the lease -
CORRECT ANSWER 30 days"
"A tenant who transfers all rights for the remaining term of the lease to a third party is -
CORRECT ANSWER assigning the lease"
"Net Lease - CORRECT ANSWER lease in which the tenant pays some or all of the operating
expenses of the property in addition to rent"
"Actual Eviction - CORRECT ANSWER suit for possession; legal removal of a tenant"
"eminent domain - CORRECT ANSWER Power of a government to take private property for
public use."
"Constructive Eviction - CORRECT ANSWER if landlord fails to perform duties and tenant
refuses to pay rent and abandons premise due to the breach of contract"
"The buyers asked their real estate agent to help them determine the correct way to take tittle to
their new home. - CORRECT ANSWER Real estate agent should suggest that the buyers
consult an attorney." "A buyer is interested in a house that fits most of her needs, but it is located in a busy area where
she is not sure she wants to live. Her concern about the property's location is called - CORRECT
ANSWER area preference"
"A metes-and-bounds legal description - CORRECT ANSWER must commence and finish at the
same identifiable point" "Lead-Based Paint Hazard Reduction Act of 1992, requires the following from sellers and
landlords of residential dwellings. Which of the following is NOT part of that disclosure? -
CORRECT ANSWER Buyers have up to 10 days to conduct a risk assessment or inspection for
the presence of lead-based paint hazards." "CERCLA regulations for administration of the Superfund, which helps pay for cleanup of
uncontrolled hazardous waste sites, - CORRECT ANSWER impose strict, joint and several and
retro active liability on potentially responsible parties"
"Which of the following describes the process of creating a landfill site? - CORRECT ANSWER
Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants"
"Contamination from underground storage tanks is - CORRECT ANSWER addressed by EPA
regulations" "CERCLA regulations for administration of the Superfund, which helps pay for cleanup of
uncontrolled hazardous waste sites, - CORRECT ANSWER impose strict, joint and several, and
retroactive liability on potentially responsible parties"
