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REAL ESTATE FUNDAMENTALS EXAM 2024
| ALL QUESTIONS AND CORRECT
ANSWERS | GRADED A+ | VERIFIED
ANSWERS | LATEST EDITION (JUST
RELEASED)
The rectangular survey method contains townships and sections. What is the distance of each side of a township? ------CORRECT ANSWER----------- ----6 miles How many sections are in a township? ------CORRECT ANSWER------------- --36 sections Garett owns one acre of land. How many square feet of property would he own? ------CORRECT ANSWER---------------43560 Square Feet The process by which the title and ownership interest reverts back to the grantor or remainderman is called: * ------CORRECT ANSWER--------------- Reversion How many acres are in a section? ------CORRECT ANSWER--------------- 640 acres Xiomara just ran 1 mile. How many feet did she run?* ------CORRECT ANSWER---------------5280 FT
When the ownership interest ends immediately upon the occurrence or lack of occurrence of a designated event, it is called: ------CORRECT ANSWER- --------------Fee simple determinable When the ownership interest ends based upon the occurrence of a designated event, but the grantor must go to court to assert his rights, this is called: ------CORRECT ANSWER---------------Fee simple subject to a condition subsequent When the ownership interest is based upon someone other than the life tenant, it is called; ------CORRECT ANSWER---------------Life estate pur autre vie A designated future interest holder in a defeasible fee estate or a life estate is called: ------CORRECT ANSWER---------------Remainderman This is the most common and preferred ownership interest which is also considered the highest and most complete form: ------CORRECT ANSWER---------------Fee simple Mike sells his investment property to his ill Uncle Joe to help him move back to the area. Shayla, Joe's daughter, is the devisee nominated in the Joe's will as his caretaker for the rest of his remaining life and the administrator of his estate. Joe passes away and by reviewing his deed Shayla learns she has no ownership rights to her fathers house. Instead, Mike informs her he is now the owner, What type of Estate would this be? - -----CORRECT ANSWER---------------Ordinary Life Estate
that she will be moving out. Based upon this, what Mary's lease is about to expire. She is not required to notify her landlord type of estate would she possess?* ------CORRECT ANSWER---------------Estate for Years. Mary's lease is about to expire. She is required to notify her landlord that she is moving out. Based upon this. What type of estate would she possess? ------CORRECT ANSWER---------------Periodic Estate Based upon the Landlord and Tenant Act, leases of what duration can be entered into orally and be considered legally binding? ------CORRECT ANSWER---------------3 Years given This is the federal law that requires specific statements and forms to be given to a consumer to advise them of the hazaards and their rights when dealing with lead based paint. ------CORRECT ANSWER--------------- Lead Based Paint Hazard Reduction Act A tasteless, colorless, odorless gas that occurs from the natural decay of minerals in the earth is refer to as what? ------CORRECT ANSWER----------- ----Radon A tasteless, colorless, odorless gas that is created from the burning of fossil fuels is called what? ------CORRECT ANSWER---------------O Carbon Monoxide Monoxide Landfils are sometimes referred to as what? ------CORRECT ANSWER---------------Waste Disposal Sites
What 3 different categories are molds broken into? ------CORRECT ANSWER---------------Pathogens, Toxins, Allergens This environmental hazard is commonly found when moisture in the home is above acceptable levels: ------CORRECT ANSWER---------------O Mold An environmental hazard occurs when these begin to deteriorate and leak toxic substances into the soil and ground water: ------CORRECT ANSWER- --------------Underground Storage Tanks A colorless gas that is emitted from building materials including resins and adhesives is referred to as? ------CORRECT ANSWER---------------Urea Formaldehyde When going through a home, Bob, a Real Estate Agent, tells his clients to look at the mold in the basement around the perimeter of the foundation. It is clearty visible despite there being no report of the hazard. Bob can legally inform his clients of the presence of mold in the home. ------ CORRECT ANSWER---------------False This is the Federal Agency in charge of environmental hazards: whereas, this is the State Agency that is in charge of environmental hazards: ------ CORRECT ANSWER---------------EPA: DEP
The most common legal description used in the eastern United States including Pennsylvania, is known as what? ------CORRECT ANSWER------- --------Metes and Bounds Method This legal description is used in the majority of the United States primariy the midwestem and western states ------CORRECT ANSWER--------------- rectangular Survey Method "Lot 17, of Block C. of the Plainfield Acres Subdivision, in Plainfield Township, recorded in plat book volume 94. page 2326" This is an example of what legal description?" ------CORRECT ANSWER---------------Lot and Block Method Imaginary square tracks of land in the rectangular survey method are called? ------CORRECT ANSWER---------------Townships What is the statute that requires all documents. including leases, to be in writing when a licensee is involved the transaction?* ------CORRECT ANSWER---------------Statue of Frauds The purpose of a security deposit is to provide the landlord money for which of the following purposes? ------CORRECT ANSWER--------------- Property Damage Jack just moved out of his apartment. What is the maximum amount of time he must wait to receive any remaining balance of his security deposit? ------ CORRECT ANSWER---------------30 Days
Jack moved out 2 weeks ago and just received his security deposit refund check in the mail. He noticed that several hundred dollars were missing from his refund, but nothing else was in the envelope. What did the landlord fail to provide?* ------CORRECT ANSWER---------------Itemized list of paid repairs Jack is reviewing his new lease and discovers that no house parties are allowed, and the landlord has placed stipulations saying that there cannot be any kegs of beer on the property. What provision of the lease would Jack be reading? ------CORRECT ANSWER---------------Use of Premise Garett was approached by another school to lease a portion of his office space to them for an upcoming training seminar. If he was to lease the space, what would this be referred to as?* ------CORRECT ANSWER-------- -------Sublease Garett was approached by another school to lease the entire office space to them for an upcoming training seminar. If he were to lease the space, it would be referred to as what?* ------CORRECT ANSWER--------------- Assignment This waives a tenant's right to any legal defense, thereby allowing a landlord to pursue a judgment for unpaid rent in the court of law: ------ CORRECT ANSWER---------------Confession of Judgement Patricia owns an apartment building, and one of her leased units is overdue on rent. She begins the eviction ___________toward actual eviction to take
Dr. Gum wants to install brand new dental equipment in his practice. However, most of his equity is currently tied up in the building that he owns. What might be a feasible option for Dr. Gum in order to free up equity while not having to move his practice? ------CORRECT ANSWER---------------Sale and Leaseback Xiomara receives an invoice in the mail for her commercial lease. On the invoice, there is a base fee of rent as well as a portion of property taxes, building insurance, and maintenance fees. In its basic form, what type of lease would this be? * ------CORRECT ANSWER---------------Net Lease When title is held by one owner or entity, it is referred to as what? ------ CORRECT ANSWER---------------Severalty John wants to sell his portion of ownership interest in a lake house in which he is a tenant in common. What must he do before he sells his interest? ---- --CORRECT ANSWER---------------Nothing, he can do what he wants with his share These are the four unities that must be present for joint tenancy to exist: ---- --CORRECT ANSWER---------------Possession, Interest, Time, and Title To be considered tenants in common, ownership interests must be distributed how? ------CORRECT ANSWER---------------unproportional shares distributed however owners see fit
Pat and Carlton are tenants in common. Pat dies testate, and John is assigned as the devisee. Based upon this, who would Cartton own the property with? ------CORRECT ANSWER---------------With John Under joint tenancy, how is ownership interest distributed? ------CORRECT ANSWER---------------They must be equal to all parties Zack. Chris, Kenny, and Nate own a hunting cabin together as Joint Tenants, Nate dies, and his wife Patty is now in charge of his estate. Therefore, who would be the rightful owners of this hunting cabin? " ------ CORRECT ANSWER---------------Zack, Chris, and Kenny This causes a fractional ownership interest to be passed directly back to the other co-owners in a Joint Tenancy: ------CORRECT ANSWER------------ ---Right of Survivorship This is the form of ownership that is given specifically to husband and wife?* ------CORRECT ANSWER---------------Tenants by Entirety This is the legal filing by a co-owner in a joint tenancy when they want to sell the property but the other co-owners refuse to sell. ------CORRECT ANSWER---------------Suit to Partition When taking possession as co-owners, it is legal for a Real Estate agent to advise a client on which type of ownership to choose. ------CORRECT ANSWER---------------False (Not Legal)
The central hallways, sidewalks, green space, and community pool in a condominium would be referred to as what? ------CORRECT ANSWER------ ---------Common Elements Cooperative ownership is considered what type of property? Due to this relationship. what document would you receive at closing? ------CORRECT ANSWER---------------Personal Property, Proprietary Lease This refers to an objective within the boundaries of he law:* ------CORRECT ANSWER---------------Legality of Object What is the term for something of value being exchanged in a contract? ---- --CORRECT ANSWER---------------Consideration According to the PA Rules and Regulations, when someone obtains any form of real estate license, all contracts they execute must be done in writing. What Statute requires this?* ------CORRECT ANSWER--------------- Statute of Frauds Jack, a local landlord, just orally agreed with his tenant to renew the current lease for an additional year. This would be the tenant's second year in the unit. According to the PA Landlord and Tenant Act, this would be considered a legal contract. * ------CORRECT ANSWER---------------True Written o.n the agreement of sale is a closing date of Oct 14th. After having a discussion, you and the listing agent agree to push closing back to Oct 18th. On the 15th you receive a notification that you are in breach of your contract. What rule caused the written word to take precedence over your
oral negotiation? ------CORRECT ANSWER---------------Parole Evidence Rule A legal and enforceable contract is: ------CORRECT ANSWER--------------- Valid You just received an agreement of sale, and it was missing the specific identification of real property. Which contract category would this fall under? ------CORRECT ANSWER---------------Voidable Grace is 16 and just received a large music endorsement contract. Per the law, this contract would be considered:* ------CORRECT ANSWER----------- ----Voidable Both buyer and seller have agreed to the terms and conditions set forth in the contract and are 20 days away from closing. Based upon both parties performing what is necessary to buy and sell the property, respectively. what type of contract do they have? ------CORRECT ANSWER--------------- Bilateral Seth places an offer on a commercial building to open a new distillery. However, he places a period of due diligence in an option contract in order for him to ensure that he can acquire the appropriate liquor license to operate the business. Base ipon this information, what tupe of contract would he have with the seller? ------CORRECT ANSWER--------------- Unilateral
This is one action a seller can take in order to hold a buyer accountable in the event of a default on the contract.* ------CORRECT ANSWER------------- --Hold Liquidated Damages What allows a creditor the direct ability to automaticaly collect in the event of default? ------CORRECT ANSWER---------------Confession of Judgement In PA. a client has _________years from the ______________to file a lawsuit to enforce ones contract rights. ------CORRECT ANSWER------------- --4 years; Breach of the Contract What is defined as all that is on the surface, below the surface, the air space above, and whatever is attached by nature? ------CORRECT ANSWER---------------Land These are the three physical characteristics of land: ------CORRECT ANSWER---------------Indestructible, Different, Fixed This economic characteristic implies that the value of land, as an investment, is economically feasible over the long term: ------CORRECT ANSWER---------------Permanence This economic characteristic fluctuates based upon the personal preference for one location over another: ------CORRECT ANSWER---------- -----Situs
Which of the following are the economic characteristics of land?" ------ CORRECT ANSWER---------------Limited Supply, Improvements, Permanence, Situs This is defined as land and whatever is permanently attached to the land by man: * ------CORRECT ANSWER---------------Real Property This includes the definition of Real Estate, as well as the rights, benefits. and interests that an owner has: ------CORRECT ANSWER---------------Real Estate A Real Property Owner's right to use and construct or improve their property as they see fit is referred to as what?* ------CORRECT ANSWER-- -------------Enjoyment A Real Property Owner's right to keep others off of their property is referred to as what?* ------CORRECT ANSWER---------------Exclusion Real Property in PA is conveyed using which of the following documents?* ------CORRECT ANSWER---------------Agreement of sale This is the action by which an item of Personal Property is changed to Real Property as a result of permanent attachment to the land or building: whereas Real Property that is converted back to Personal Property is done
This is an annual, seasonal crop, such as corn; which is considered to be Personal Property even though it is attached to the land.* ------CORRECT ANSWER---------------Emblement If a trade fixture is not removed before a lease expires, it becomes the Real Property of the Landlord unless the terms of the lease indicate otherwise. * ------CORRECT ANSWER---------------True This type of construction has wooden framing, pitched roofs, and comes in a large number of designs and options and is delivered to site in two to four large sections. Whereas, this type of construction is manufactures in a factory in several pieces an delivered to site to be erected.* ------CORRECT ANSWER---------------Modular; Pre-Fab A special claim or interest in real property that is held by someone other than the owner and creates a limitation or burden to the real property owner is known as an______________ ------CORRECT ANSWER--------------- Encumbrance The 2 types of encumbrances are?* ------CORRECT ANSWER--------------- Incorporeal Rights and Liens This is an agreement between lien holders to change the priority of their liens. ------CORRECT ANSWER---------------subordination Agreement
The Wilkins' and the Thompsons are next door neighbors. Mr. Wilkins wants to access the river they live next to, but the only way to do so is through the Thompson's property. Therefore, Mr. Thompson allows an easement to legally allow his neighbor to access the river. What type of easement would this be? ------CORRECT ANSWER---------------Easement appurtenent Mike owns a piece of property. Prior to selling his property, he files a restriction on the deed to not allow any mobile homes on the property in the future. This would be an example of what?* ------CORRECT ANSWER------- --------Deed Restriction This is the right to use the land of another for a specific purpose: ------ CORRECT ANSWER---------------Easement The Wilkins' and the Thompsons are next door neighbors. Mr. Wilkins wants to access the river they live next to, but the only way to do so is through the Thompson's property. Therefore, Mr. Thompson allows an easement to legally allow his neighbor to access the river across his property. In this example, what tenement would Mr. Thompson be? " ------ CORRECT ANSWER---------------Servient tenement This easement is a personal right and is non-transferable. ------CORRECT ANSWER---------------Easemen in gros The Smiths and the Hendershots live across the street from one another. Mr. Smith approaches Mrs. Hendershot about using the side of their yard to get to the nearby beach. In this example, what easement would the Smiths be seeking? " ------CORRECT ANSWER---------------Easement in gross
