Real Estate Principles: A Value Approach (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate) 3rd Edition Test Bank
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1
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements.
Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw land
refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
7. Real estate values derive from the interaction of three different sectors in the economy. Which of the
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements.
Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw land
refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
7. Real estate values derive from the interaction of three different sectors in the economy. Which of the
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
1
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements.
Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw land
refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
7. Real estate values derive from the interaction of three different sectors in the economy. Which of the
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements.
Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw land
refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
7. Real estate values derive from the interaction of three different sectors in the economy. Which of the
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
9. In 2007, the housing market was widely viewed as:
A. a resilient asset class that significantly softened the severity of the recession
B. a surging market pushing prices and new construction to unprecedented levels
C. the primary cause of a major economic downturn
D. unrelated to the condition of the U.S. economy
10. Capital markets can be divided into four main categories: private equity, public equity, private debt, and
public debt. An example of a real estate asset that trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
11. Primarily through land use controls and property tax policy, which of the following branches of
government has the largest influence on real estate values?
A. Local government
B. State government
C. National government
D. Foreign government
12. Competition in the _________, where households and firms compete for the currently available supply of
locations and space, determines the level of rental income for each submarket and property.
A. user market
B. capital market
C. government
D. local market
13. The expected stream of rental income is capitalized into value by converting expected future cash flows
into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
14. Large commercial properties valued well over $10 million are often referred to as:
A. segmented property
B. investment-grade property
C. speculative-grade property
D. immobile property
15. Each property has unique features, whether it is its age, the building design of its structures, or its
location. As such, real estate markets, in contrast to other goods, are considered:
A. homogeneous
B. heterogeneous
C. substitutes
D. complements
16. What proportion of U.S. households own their home?
A. One-third
B. One-half
C. Two-thirds
D. Three-fourths
17. The national government can have a significant impact on the value of real estate through:
A. property tax policy
B. income tax policy
C. building codes
D. real estate licensing requirements
A. a resilient asset class that significantly softened the severity of the recession
B. a surging market pushing prices and new construction to unprecedented levels
C. the primary cause of a major economic downturn
D. unrelated to the condition of the U.S. economy
10. Capital markets can be divided into four main categories: private equity, public equity, private debt, and
public debt. An example of a real estate asset that trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
11. Primarily through land use controls and property tax policy, which of the following branches of
government has the largest influence on real estate values?
A. Local government
B. State government
C. National government
D. Foreign government
12. Competition in the _________, where households and firms compete for the currently available supply of
locations and space, determines the level of rental income for each submarket and property.
A. user market
B. capital market
C. government
D. local market
13. The expected stream of rental income is capitalized into value by converting expected future cash flows
into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
14. Large commercial properties valued well over $10 million are often referred to as:
A. segmented property
B. investment-grade property
C. speculative-grade property
D. immobile property
15. Each property has unique features, whether it is its age, the building design of its structures, or its
location. As such, real estate markets, in contrast to other goods, are considered:
A. homogeneous
B. heterogeneous
C. substitutes
D. complements
16. What proportion of U.S. households own their home?
A. One-third
B. One-half
C. Two-thirds
D. Three-fourths
17. The national government can have a significant impact on the value of real estate through:
A. property tax policy
B. income tax policy
C. building codes
D. real estate licensing requirements
18. The required rate of return that an individual demands on a real estate investment is determined in
the:
A. user market
B. capital market
C. government
D. local market
19. The market for buying, selling, and leasing real estate can be characterized by all of the following
EXCEPT:
A. localized markets
B. highly segmented markets
C. privately negotiated contracts
D. low transaction costs
20. Especially in terms of retail properties, which of the following attributes is considered the most likely to
result in drastic value differences between otherwise similar properties?
A. Structural attributes
B. Financing attributes
C. Location attributes
D. Land attributes
the:
A. user market
B. capital market
C. government
D. local market
19. The market for buying, selling, and leasing real estate can be characterized by all of the following
EXCEPT:
A. localized markets
B. highly segmented markets
C. privately negotiated contracts
D. low transaction costs
20. Especially in terms of retail properties, which of the following attributes is considered the most likely to
result in drastic value differences between otherwise similar properties?
A. Structural attributes
B. Financing attributes
C. Location attributes
D. Land attributes
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1 Key
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent
improvements. Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 01 #1
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 01 #2
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw
land refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 01 #3
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 01 #4
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
Difficulty: Intermediate
Learning Objective: 4
Ling - Chapter 01 #5
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #6
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent
improvements. Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 01 #1
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the following
would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Motor home
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 01 #2
3. When the value of land is considered, it is important to distinguish between land and raw land. Raw
land refers to a(n):
A. building site
B. structure on the land
C. property's infrastructure
D. area that does not include any improvements
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 01 #3
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 01 #4
5. As of 2008, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
Difficulty: Intermediate
Learning Objective: 4
Ling - Chapter 01 #5
6. As of December 2008, the market value of outstanding real estate mortgage debt was:
A. greater than the market value of corporate equities
B. less than the market value of U.S. Treasury securities
C. less than the market value of corporate and foreign bonds
D. greater than the market value of corporate, foreign, and U.S. Treasury debt securities combined
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #6
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7. Real estate values derive from the interaction of three different sectors in the economy. Which of the
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #7
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #8
9. In 2007, the housing market was widely viewed as:
A. a resilient asset class that significantly softened the severity of the recession
B. a surging market pushing prices and new construction to unprecedented levels
C. the primary cause of a major economic downturn
D. unrelated to the condition of the U.S. economy
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 01 #9
10. Capital markets can be divided into four main categories: private equity, public equity, private debt,
and public debt. An example of a real estate asset that trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #10
11. Primarily through land use controls and property tax policy, which of the following branches of
government has the largest influence on real estate values?
A. Local government
B. State government
C. National government
D. Foreign government
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #11
12. Competition in the _________, where households and firms compete for the currently available
supply of locations and space, determines the level of rental income for each submarket and
property.
A. user market
B. capital market
C. government
D. local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #12
following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #7
8. The demand for real estate derives from the need that participants in the user market have for shelter
and convenient access to other locations. The primary participants in the user market include all of the
following EXCEPT:
A. owner occupants
B. tenants
C. renters
D. pension fund managers
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #8
9. In 2007, the housing market was widely viewed as:
A. a resilient asset class that significantly softened the severity of the recession
B. a surging market pushing prices and new construction to unprecedented levels
C. the primary cause of a major economic downturn
D. unrelated to the condition of the U.S. economy
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 01 #9
10. Capital markets can be divided into four main categories: private equity, public equity, private debt,
and public debt. An example of a real estate asset that trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #10
11. Primarily through land use controls and property tax policy, which of the following branches of
government has the largest influence on real estate values?
A. Local government
B. State government
C. National government
D. Foreign government
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #11
12. Competition in the _________, where households and firms compete for the currently available
supply of locations and space, determines the level of rental income for each submarket and
property.
A. user market
B. capital market
C. government
D. local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #12
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13. The expected stream of rental income is capitalized into value by converting expected future cash
flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 01 #13
14. Large commercial properties valued well over $10 million are often referred to as:
A. segmented property
B. investment-grade property
C. speculative-grade property
D. immobile property
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #14
15. Each property has unique features, whether it is its age, the building design of its structures, or its
location. As such, real estate markets, in contrast to other goods, are considered:
A. homogeneous
B. heterogeneous
C. substitutes
D. complements
Difficulty: Basic
Learning Objective: 5
Ling - Chapter 01 #15
16. What proportion of U.S. households own their home?
A. One-third
B. One-half
C. Two-thirds
D. Three-fourths
Difficulty: Intermediate
Learning Objective: 4
Ling - Chapter 01 #16
17. The national government can have a significant impact on the value of real estate through:
A. property tax policy
B. income tax policy
C. building codes
D. real estate licensing requirements
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #17
18. The required rate of return that an individual demands on a real estate investment is determined in
the:
A. user market
B. capital market
C. government
D. local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #18
flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 01 #13
14. Large commercial properties valued well over $10 million are often referred to as:
A. segmented property
B. investment-grade property
C. speculative-grade property
D. immobile property
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #14
15. Each property has unique features, whether it is its age, the building design of its structures, or its
location. As such, real estate markets, in contrast to other goods, are considered:
A. homogeneous
B. heterogeneous
C. substitutes
D. complements
Difficulty: Basic
Learning Objective: 5
Ling - Chapter 01 #15
16. What proportion of U.S. households own their home?
A. One-third
B. One-half
C. Two-thirds
D. Three-fourths
Difficulty: Intermediate
Learning Objective: 4
Ling - Chapter 01 #16
17. The national government can have a significant impact on the value of real estate through:
A. property tax policy
B. income tax policy
C. building codes
D. real estate licensing requirements
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #17
18. The required rate of return that an individual demands on a real estate investment is determined in
the:
A. user market
B. capital market
C. government
D. local market
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 01 #18
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19. The market for buying, selling, and leasing real estate can be characterized by all of the following
EXCEPT:
A. localized markets
B. highly segmented markets
C. privately negotiated contracts
D. low transaction costs
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #19
20. Especially in terms of retail properties, which of the following attributes is considered the most likely
to result in drastic value differences between otherwise similar properties?
A. Structural attributes
B. Financing attributes
C. Location attributes
D. Land attributes
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #20
EXCEPT:
A. localized markets
B. highly segmented markets
C. privately negotiated contracts
D. low transaction costs
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #19
20. Especially in terms of retail properties, which of the following attributes is considered the most likely
to result in drastic value differences between otherwise similar properties?
A. Structural attributes
B. Financing attributes
C. Location attributes
D. Land attributes
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 01 #20
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1 Summary
Category # of Questions
Difficulty: Basic 5
Difficulty: Intermediate 15
Learning Objective: 1 3
Learning Objective: 2 1
Learning Objective: 3 10
Learning Objective: 4 2
Learning Objective: 5 4
Ling - Chapter 01 20
Category # of Questions
Difficulty: Basic 5
Difficulty: Intermediate 15
Learning Objective: 1 3
Learning Objective: 2 1
Learning Objective: 3 10
Learning Objective: 4 2
Learning Objective: 5 4
Ling - Chapter 01 20
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2
1. A principal definition of real estate is as a bundle of rights associated with the possession, use, and
disposition of property. Each of the following is a fundamental characteristic of property rights
EXCEPT:
A. they are enforceable by the government.
B. they apply only to tangible assets.
C. they are nonrevocable.
D. they are enduring.
2. Property rights can be divided into two classes, real and personal. Which of the following is an example
of real property?
A. Vehicles
B. Stocks and bonds
C. Patents
D. Commercial building
3. A fixture is an object that formerly was personal property but has become real property. Of the following
four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if
there is a conflict, which rule prevails)?
A. Manner of the attachment
B. Character of the article and manner of adaptation
C. Intention of the parties
D. Relation of the parties
4. Which of the following items would most likely be considered a fixture?
A. Custom bookshelves
B. Refrigerator in a single-family residence being sold
C. Fence installed by the tenant of a rental property
D. Antique chandelier
5. Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by
different individuals. Interests in real property that include possessions are referred to as:
A. fixtures
B. townships
C. licenses
D. estates
6. Which of the following types of ownership estates is the most complete bundle of rights, and therefore
carries the greatest value?
A. Fee simple absolute
B. Fee simple conditional
C. Ordinary life estate
D. Legal life estate
7. Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring
her residence for future university use. To allow the homeowner to continue to retain all rights of
exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of
disposition, the university may want to purchase a:
A. life estate
B. reverter interest
C. remainder estate
D. tenancy for years
1. A principal definition of real estate is as a bundle of rights associated with the possession, use, and
disposition of property. Each of the following is a fundamental characteristic of property rights
EXCEPT:
A. they are enforceable by the government.
B. they apply only to tangible assets.
C. they are nonrevocable.
D. they are enduring.
2. Property rights can be divided into two classes, real and personal. Which of the following is an example
of real property?
A. Vehicles
B. Stocks and bonds
C. Patents
D. Commercial building
3. A fixture is an object that formerly was personal property but has become real property. Of the following
four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if
there is a conflict, which rule prevails)?
A. Manner of the attachment
B. Character of the article and manner of adaptation
C. Intention of the parties
D. Relation of the parties
4. Which of the following items would most likely be considered a fixture?
A. Custom bookshelves
B. Refrigerator in a single-family residence being sold
C. Fence installed by the tenant of a rental property
D. Antique chandelier
5. Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by
different individuals. Interests in real property that include possessions are referred to as:
A. fixtures
B. townships
C. licenses
D. estates
6. Which of the following types of ownership estates is the most complete bundle of rights, and therefore
carries the greatest value?
A. Fee simple absolute
B. Fee simple conditional
C. Ordinary life estate
D. Legal life estate
7. Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring
her residence for future university use. To allow the homeowner to continue to retain all rights of
exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of
disposition, the university may want to purchase a:
A. life estate
B. reverter interest
C. remainder estate
D. tenancy for years
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8. While leasehold interests are considered estates, they differ from freehold estates in all of the following
respects EXCEPT:
A. leasehold estates are limited in time.
B. the right of disposition is diminished with a leasehold estate.
C. leasehold estates are not titled interests.
D. leasehold estates are possessory interests.
9. Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all of
the following EXCEPT:
A. leasehold interests
B. easements
C. restrictive covenants
D. liens
10. An easement is the right to use land for a specific and limited purpose. Which of the following easements
involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and
gives the dominant parcel some intrusive use of the servient parcel?
A. Affirmative easement appurtenant
B. Negative easement appurtenant
C. Easement in gross
D. License
11. Which of the following is an example of a negative easement appurtenant?
A. A driveway easement across one parcel to another.
B. Rights-of-way for roads.
C
.
A common drive easement where owners of adjoining lots must permit each other to use a driveway
lying on their shaped property line.
D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
12. An important distinction both practically and conceptually is the difference between an easement and a
license. In contrast to an easement, a license:
A. is revocable by the grantor.
B. can be granted orally.
C. is enduring.
D. grants permission to use another's land for a specific and limited purpose.
13. A lien is an interest in real property that serves as security for an obligation. Which of the following is an
example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
14. Which of the following types of liens is automatically superior to any other lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
15. Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is
jointly held. All of the following entities are forms of direct co-ownership EXCEPT:
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
respects EXCEPT:
A. leasehold estates are limited in time.
B. the right of disposition is diminished with a leasehold estate.
C. leasehold estates are not titled interests.
D. leasehold estates are possessory interests.
9. Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all of
the following EXCEPT:
A. leasehold interests
B. easements
C. restrictive covenants
D. liens
10. An easement is the right to use land for a specific and limited purpose. Which of the following easements
involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and
gives the dominant parcel some intrusive use of the servient parcel?
A. Affirmative easement appurtenant
B. Negative easement appurtenant
C. Easement in gross
D. License
11. Which of the following is an example of a negative easement appurtenant?
A. A driveway easement across one parcel to another.
B. Rights-of-way for roads.
C
.
A common drive easement where owners of adjoining lots must permit each other to use a driveway
lying on their shaped property line.
D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
12. An important distinction both practically and conceptually is the difference between an easement and a
license. In contrast to an easement, a license:
A. is revocable by the grantor.
B. can be granted orally.
C. is enduring.
D. grants permission to use another's land for a specific and limited purpose.
13. A lien is an interest in real property that serves as security for an obligation. Which of the following is an
example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
14. Which of the following types of liens is automatically superior to any other lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
15. Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is
jointly held. All of the following entities are forms of direct co-ownership EXCEPT:
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Loading page 11...
16. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without
exclusive possession with respect to the other co-owners. Which of the following types of direct co-
ownership is considered the closest to the fee simple absolute estate?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
17. Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
18. Which of the following types of direct co-ownership combines single person ownership with tenancy in
common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
19. Which of the following forms of co-ownership, historically used for apartment buildings, is not
considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
20. Property rights created from marriage have a clear implication for real estate transactions. Which of the
following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits
of the marriage?"
A. Dower
B. Curtesy
C. Elective share
D. Community property
21. Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their
enforcement. All of the following are true regarding the enforcement of restrictive covenants
EXCEPT:
A
.
Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in some
cases states have enacted a time limit on their applicability.
B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character.
C. Courts may refuse to enforce restrictive covenants due to abandonment of the property.
D. Restrictive covenants can be enforced by those who do not hold a legal interest in the property.
22. When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-
ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
exclusive possession with respect to the other co-owners. Which of the following types of direct co-
ownership is considered the closest to the fee simple absolute estate?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
17. Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
18. Which of the following types of direct co-ownership combines single person ownership with tenancy in
common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
19. Which of the following forms of co-ownership, historically used for apartment buildings, is not
considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
20. Property rights created from marriage have a clear implication for real estate transactions. Which of the
following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits
of the marriage?"
A. Dower
B. Curtesy
C. Elective share
D. Community property
21. Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their
enforcement. All of the following are true regarding the enforcement of restrictive covenants
EXCEPT:
A
.
Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in some
cases states have enacted a time limit on their applicability.
B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character.
C. Courts may refuse to enforce restrictive covenants due to abandonment of the property.
D. Restrictive covenants can be enforced by those who do not hold a legal interest in the property.
22. When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-
ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Loading page 12...
23. In some states, mining companies are deemed to own not only the minerals but also the space the
minerals occupied before they were removed, thereby earning the distinction of ownership states.
However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless of
whether the oil or gas migrated from adjacent property, this is referred to as a _____________ state.
A. Manner of attachment
B. Law of capture
C. Intention of the parties
D. Relation of the parties
24. Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations. Ten
years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately,
she has no claim to the land and that upon Bill's death, his ownership interest transferred to Mike. What
type of co-ownership did Bill and Mike have?
A. Tenancy by the entireties
B. Tenancy in common
C. Joint tenancy
D. Condominium
25. The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the
property owners along Oak Street a proportional cost of the new water main. If a property owner refuses
to pay their proportional share of the cost, the city may file a(n):
A. property tax lien.
B. assessment lien.
C. general lien.
D. mechanics' lien.
26. Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly
from the highway to the beach across Jeff's property. The space for this road would be considered
a(n):
A. easement appurtenant.
B. easement in gross.
C. negative easement appurtenant.
D. positive easement appurtenant.
minerals occupied before they were removed, thereby earning the distinction of ownership states.
However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless of
whether the oil or gas migrated from adjacent property, this is referred to as a _____________ state.
A. Manner of attachment
B. Law of capture
C. Intention of the parties
D. Relation of the parties
24. Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations. Ten
years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately,
she has no claim to the land and that upon Bill's death, his ownership interest transferred to Mike. What
type of co-ownership did Bill and Mike have?
A. Tenancy by the entireties
B. Tenancy in common
C. Joint tenancy
D. Condominium
25. The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the
property owners along Oak Street a proportional cost of the new water main. If a property owner refuses
to pay their proportional share of the cost, the city may file a(n):
A. property tax lien.
B. assessment lien.
C. general lien.
D. mechanics' lien.
26. Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly
from the highway to the beach across Jeff's property. The space for this road would be considered
a(n):
A. easement appurtenant.
B. easement in gross.
C. negative easement appurtenant.
D. positive easement appurtenant.
Loading page 13...
2 Key
1. A principal definition of real estate is as a bundle of rights associated with the possession, use, and
disposition of property. Each of the following is a fundamental characteristic of property rights
EXCEPT:
A. they are enforceable by the government.
B. they apply only to tangible assets.
C. they are nonrevocable.
D. they are enduring.
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 02 #1
2. Property rights can be divided into two classes, real and personal. Which of the following is an
example of real property?
A. Vehicles
B. Stocks and bonds
C. Patents
D. Commercial building
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 02 #2
3. A fixture is an object that formerly was personal property but has become real property. Of the
following four rules for determining whether an object has become a fixture, which is the most
dominant (i.e. if there is a conflict, which rule prevails)?
A. Manner of the attachment
B. Character of the article and manner of adaptation
C. Intention of the parties
D. Relation of the parties
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 02 #3
4. Which of the following items would most likely be considered a fixture?
A. Custom bookshelves
B. Refrigerator in a single-family residence being sold
C. Fence installed by the tenant of a rental property
D. Antique chandelier
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 02 #4
5. Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held
by different individuals. Interests in real property that include possessions are referred to as:
A. fixtures
B. townships
C. licenses
D. estates
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 02 #5
6. Which of the following types of ownership estates is the most complete bundle of rights, and therefore
carries the greatest value?
A. Fee simple absolute
B. Fee simple conditional
C. Ordinary life estate
D. Legal life estate
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 02 #6
1. A principal definition of real estate is as a bundle of rights associated with the possession, use, and
disposition of property. Each of the following is a fundamental characteristic of property rights
EXCEPT:
A. they are enforceable by the government.
B. they apply only to tangible assets.
C. they are nonrevocable.
D. they are enduring.
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 02 #1
2. Property rights can be divided into two classes, real and personal. Which of the following is an
example of real property?
A. Vehicles
B. Stocks and bonds
C. Patents
D. Commercial building
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 02 #2
3. A fixture is an object that formerly was personal property but has become real property. Of the
following four rules for determining whether an object has become a fixture, which is the most
dominant (i.e. if there is a conflict, which rule prevails)?
A. Manner of the attachment
B. Character of the article and manner of adaptation
C. Intention of the parties
D. Relation of the parties
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 02 #3
4. Which of the following items would most likely be considered a fixture?
A. Custom bookshelves
B. Refrigerator in a single-family residence being sold
C. Fence installed by the tenant of a rental property
D. Antique chandelier
Difficulty: Intermediate
Learning Objective: 1
Ling - Chapter 02 #4
5. Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held
by different individuals. Interests in real property that include possessions are referred to as:
A. fixtures
B. townships
C. licenses
D. estates
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 02 #5
6. Which of the following types of ownership estates is the most complete bundle of rights, and therefore
carries the greatest value?
A. Fee simple absolute
B. Fee simple conditional
C. Ordinary life estate
D. Legal life estate
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 02 #6
Loading page 14...
7. Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring
her residence for future university use. To allow the homeowner to continue to retain all rights of
exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right
of disposition, the university may want to purchase a:
A. life estate
B. reverter interest
C. remainder estate
D. tenancy for years
Difficulty: Advanced
Learning Objective: 2
Ling - Chapter 02 #7
8. While leasehold interests are considered estates, they differ from freehold estates in all of the
following respects EXCEPT:
A. leasehold estates are limited in time.
B. the right of disposition is diminished with a leasehold estate.
C. leasehold estates are not titled interests.
D. leasehold estates are possessory interests.
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 02 #8
9. Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all
of the following EXCEPT:
A. leasehold interests
B. easements
C. restrictive covenants
D. liens
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 02 #9
10. An easement is the right to use land for a specific and limited purpose. Which of the following
easements involves a relationship between two parcels of land, is a permanent feature of both parcels
involved, and gives the dominant parcel some intrusive use of the servient parcel?
A. Affirmative easement appurtenant
B. Negative easement appurtenant
C. Easement in gross
D. License
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 02 #10
11. Which of the following is an example of a negative easement appurtenant?
A. A driveway easement across one parcel to another.
B. Rights-of-way for roads.
C. A common drive easement where owners of adjoining lots must permit each other to use a driveway
lying on their shaped property line.
D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 02 #11
12. An important distinction both practically and conceptually is the difference between an easement and
a license. In contrast to an easement, a license:
A. is revocable by the grantor.
B. can be granted orally.
C. is enduring.
D. grants permission to use another's land for a specific and limited purpose.
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 02 #12
her residence for future university use. To allow the homeowner to continue to retain all rights of
exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right
of disposition, the university may want to purchase a:
A. life estate
B. reverter interest
C. remainder estate
D. tenancy for years
Difficulty: Advanced
Learning Objective: 2
Ling - Chapter 02 #7
8. While leasehold interests are considered estates, they differ from freehold estates in all of the
following respects EXCEPT:
A. leasehold estates are limited in time.
B. the right of disposition is diminished with a leasehold estate.
C. leasehold estates are not titled interests.
D. leasehold estates are possessory interests.
Difficulty: Intermediate
Learning Objective: 2
Ling - Chapter 02 #8
9. Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all
of the following EXCEPT:
A. leasehold interests
B. easements
C. restrictive covenants
D. liens
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 02 #9
10. An easement is the right to use land for a specific and limited purpose. Which of the following
easements involves a relationship between two parcels of land, is a permanent feature of both parcels
involved, and gives the dominant parcel some intrusive use of the servient parcel?
A. Affirmative easement appurtenant
B. Negative easement appurtenant
C. Easement in gross
D. License
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 02 #10
11. Which of the following is an example of a negative easement appurtenant?
A. A driveway easement across one parcel to another.
B. Rights-of-way for roads.
C. A common drive easement where owners of adjoining lots must permit each other to use a driveway
lying on their shaped property line.
D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 02 #11
12. An important distinction both practically and conceptually is the difference between an easement and
a license. In contrast to an easement, a license:
A. is revocable by the grantor.
B. can be granted orally.
C. is enduring.
D. grants permission to use another's land for a specific and limited purpose.
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 02 #12
Loading page 15...
13. A lien is an interest in real property that serves as security for an obligation. Which of the following is
an example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 02 #13
14. Which of the following types of liens is automatically superior to any other lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 02 #14
15. Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is
jointly held. All of the following entities are forms of direct co-ownership EXCEPT:
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #15
16. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without
exclusive possession with respect to the other co-owners. Which of the following types of direct co-
ownership is considered the closest to the fee simple absolute estate?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Intermediate
Learning Objective: 6
Ling - Chapter 02 #16
17. Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #17
18. Which of the following types of direct co-ownership combines single person ownership with tenancy
in common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #18
an example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 02 #13
14. Which of the following types of liens is automatically superior to any other lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics' lien
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 02 #14
15. Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is
jointly held. All of the following entities are forms of direct co-ownership EXCEPT:
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #15
16. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without
exclusive possession with respect to the other co-owners. Which of the following types of direct co-
ownership is considered the closest to the fee simple absolute estate?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Intermediate
Learning Objective: 6
Ling - Chapter 02 #16
17. Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #17
18. Which of the following types of direct co-ownership combines single person ownership with tenancy
in common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #18
Loading page 16...
19. Which of the following forms of co-ownership, historically used for apartment buildings, is not
considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #19
20. Property rights created from marriage have a clear implication for real estate transactions. Which of
the following marital property rights gives a spouse a one-half claim on all property acquired "from
the fruits of the marriage?"
A. Dower
B. Curtesy
C. Elective share
D. Community property
Difficulty: Basic
Learning Objective: 7
Ling - Chapter 02 #20
21. Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their
enforcement. All of the following are true regarding the enforcement of restrictive covenants
EXCEPT:
A
.
Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in
some cases states have enacted a time limit on their applicability.
B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character.
C. Courts may refuse to enforce restrictive covenants due to abandonment of the property.
D. Restrictive covenants can be enforced by those who do not hold a legal interest in the property.
Difficulty: Advanced
Learning Objective: 4
Ling - Chapter 02 #21
22. When multiple individuals have use of a property, but their interests are not simultaneous, this type of
co-ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Difficulty: Basic
Learning Objective: 8
Ling - Chapter 02 #22
23. In some states, mining companies are deemed to own not only the minerals but also the space the
minerals occupied before they were removed, thereby earning the distinction of ownership states.
However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless
of whether the oil or gas migrated from adjacent property, this is referred to as a _____________
state.
A. Manner of attachment
B. Law of capture
C. Intention of the parties
D. Relation of the parties
Difficulty: Advanced
Learning Objective: 1
Ling - Chapter 02 #23
considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 02 #19
20. Property rights created from marriage have a clear implication for real estate transactions. Which of
the following marital property rights gives a spouse a one-half claim on all property acquired "from
the fruits of the marriage?"
A. Dower
B. Curtesy
C. Elective share
D. Community property
Difficulty: Basic
Learning Objective: 7
Ling - Chapter 02 #20
21. Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their
enforcement. All of the following are true regarding the enforcement of restrictive covenants
EXCEPT:
A
.
Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in
some cases states have enacted a time limit on their applicability.
B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character.
C. Courts may refuse to enforce restrictive covenants due to abandonment of the property.
D. Restrictive covenants can be enforced by those who do not hold a legal interest in the property.
Difficulty: Advanced
Learning Objective: 4
Ling - Chapter 02 #21
22. When multiple individuals have use of a property, but their interests are not simultaneous, this type of
co-ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Difficulty: Basic
Learning Objective: 8
Ling - Chapter 02 #22
23. In some states, mining companies are deemed to own not only the minerals but also the space the
minerals occupied before they were removed, thereby earning the distinction of ownership states.
However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless
of whether the oil or gas migrated from adjacent property, this is referred to as a _____________
state.
A. Manner of attachment
B. Law of capture
C. Intention of the parties
D. Relation of the parties
Difficulty: Advanced
Learning Objective: 1
Ling - Chapter 02 #23
Loading page 17...
24. Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations.
Ten years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that,
unfortunately, she has no claim to the land and that upon Bill's death, his ownership interest
transferred to Mike. What type of co-ownership did Bill and Mike have?
A. Tenancy by the entireties
B. Tenancy in common
C. Joint tenancy
D. Condominium
Difficulty: Advanced
Learning Objective: 6
Ling - Chapter 02 #24
25. The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge
the property owners along Oak Street a proportional cost of the new water main. If a property owner
refuses to pay their proportional share of the cost, the city may file a(n):
A. property tax lien.
B. assessment lien.
C. general lien.
D. mechanics' lien.
Difficulty: Advanced
Learning Objective: 5
Ling - Chapter 02 #25
26. Jeff owns 150 acres between a highway and a public beach. The state would like to build a road
directly from the highway to the beach across Jeff's property. The space for this road would be
considered a(n):
A. easement appurtenant.
B. easement in gross.
C. negative easement appurtenant.
D. positive easement appurtenant.
Difficulty: Advanced
Learning Objective: 3
Ling - Chapter 02 #26
Ten years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that,
unfortunately, she has no claim to the land and that upon Bill's death, his ownership interest
transferred to Mike. What type of co-ownership did Bill and Mike have?
A. Tenancy by the entireties
B. Tenancy in common
C. Joint tenancy
D. Condominium
Difficulty: Advanced
Learning Objective: 6
Ling - Chapter 02 #24
25. The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge
the property owners along Oak Street a proportional cost of the new water main. If a property owner
refuses to pay their proportional share of the cost, the city may file a(n):
A. property tax lien.
B. assessment lien.
C. general lien.
D. mechanics' lien.
Difficulty: Advanced
Learning Objective: 5
Ling - Chapter 02 #25
26. Jeff owns 150 acres between a highway and a public beach. The state would like to build a road
directly from the highway to the beach across Jeff's property. The space for this road would be
considered a(n):
A. easement appurtenant.
B. easement in gross.
C. negative easement appurtenant.
D. positive easement appurtenant.
Difficulty: Advanced
Learning Objective: 3
Ling - Chapter 02 #26
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2 Summary
Category # of Questions
Difficulty: Advanced 6
Difficulty: Basic 11
Difficulty: Intermediate 9
Learning Objective: 1 5
Learning Objective: 2 4
Learning Objective: 3 5
Learning Objective: 4 1
Learning Objective: 5 3
Learning Objective: 6 6
Learning Objective: 7 1
Learning Objective: 8 1
Ling - Chapter 02 26
Category # of Questions
Difficulty: Advanced 6
Difficulty: Basic 11
Difficulty: Intermediate 9
Learning Objective: 1 5
Learning Objective: 2 4
Learning Objective: 3 5
Learning Objective: 4 1
Learning Objective: 5 3
Learning Objective: 6 6
Learning Objective: 7 1
Learning Objective: 8 1
Ling - Chapter 02 26
Loading page 19...
3
1. A deed is a special form of written contract used to convey a permanent interest in real property. Unlike
most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
2. The type of deed offered by the grantor is communicated through a phrase such as "does herby grant,
bargain, sell and convey unto . . ." This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
3. The covenants in a deed are the most important differences among types of deeds. Which of the following
covenants promises that the grantor truly has good title and the right to convey it?
A. Covenant of seizin
B. Covenant against encumbrances
C. Covenant of quiet enjoyment
D. Exceptions and reservation clause
4. Which of the following clauses contained in a deed defines or limits the type of interest being conveyed?
A. Recital of consideration
B. Words of conveyance
C. Covenant
D. Habendum clause
5. Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which of
the following types of deeds is considered to be the "highest quality" because it contains the full set of
legal promises the grantor can make?
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
6. Considered a "questionable conveyance of title" by most courts, which of the following types of deeds
is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint:
This type of deed may be used by a developer to convey certain lands of a subdivision to the local
government through dedication.)
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
7. While several kinds of real property conveyances result from events beyond the control of the grantor,
the majority of conveyances are voluntary through a deed. Which of the following is an example of a
voluntary conveyance of real property with a deed?
A. Patent
B. Probate
C. Condemnation
D. Implied Easement
1. A deed is a special form of written contract used to convey a permanent interest in real property. Unlike
most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
2. The type of deed offered by the grantor is communicated through a phrase such as "does herby grant,
bargain, sell and convey unto . . ." This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
3. The covenants in a deed are the most important differences among types of deeds. Which of the following
covenants promises that the grantor truly has good title and the right to convey it?
A. Covenant of seizin
B. Covenant against encumbrances
C. Covenant of quiet enjoyment
D. Exceptions and reservation clause
4. Which of the following clauses contained in a deed defines or limits the type of interest being conveyed?
A. Recital of consideration
B. Words of conveyance
C. Covenant
D. Habendum clause
5. Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which of
the following types of deeds is considered to be the "highest quality" because it contains the full set of
legal promises the grantor can make?
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
6. Considered a "questionable conveyance of title" by most courts, which of the following types of deeds
is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint:
This type of deed may be used by a developer to convey certain lands of a subdivision to the local
government through dedication.)
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
7. While several kinds of real property conveyances result from events beyond the control of the grantor,
the majority of conveyances are voluntary through a deed. Which of the following is an example of a
voluntary conveyance of real property with a deed?
A. Patent
B. Probate
C. Condemnation
D. Implied Easement
Loading page 20...
8. At the death of a property owner, property will convey either in accordance with a will or without a
will. If a will dictates the distribution of the decedent's real property, the property is said to be conveyed
by:
A. patent
B. devise
C. the law of descent
D. dedication
9. While the vast majority of conveyances of real property are private grants through a deed, there are
multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of
easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g.
A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
10. When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for
property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access,
which of the following types of easements will automatically be created to make the land useful?
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
11. An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple
interest is conveyed to a new owner without a deed and without the consent or knowledge of the original
owner, this is said to be conveyed by:
A. Prescription
B. Adverse possession
C. Accretion
D. Reliction
12. Once a document conveying an interest in real property is placed in the public records it is binding on the
public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is
known as the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
13. A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to
completing the sale. Today, the predominant medium through which a seller meets this requirement is by
providing:
A. only a title abstract.
B. only an attorney's opinion of title.
C. only a title insurance commitment.
D. only a Torrens certificate.
14. A law requiring any contract conveying a real property interest to be in writing in order to be enforceable
is a modern application of the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
will. If a will dictates the distribution of the decedent's real property, the property is said to be conveyed
by:
A. patent
B. devise
C. the law of descent
D. dedication
9. While the vast majority of conveyances of real property are private grants through a deed, there are
multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of
easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g.
A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
10. When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for
property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access,
which of the following types of easements will automatically be created to make the land useful?
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
11. An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple
interest is conveyed to a new owner without a deed and without the consent or knowledge of the original
owner, this is said to be conveyed by:
A. Prescription
B. Adverse possession
C. Accretion
D. Reliction
12. Once a document conveying an interest in real property is placed in the public records it is binding on the
public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is
known as the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
13. A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to
completing the sale. Today, the predominant medium through which a seller meets this requirement is by
providing:
A. only a title abstract.
B. only an attorney's opinion of title.
C. only a title insurance commitment.
D. only a Torrens certificate.
14. A law requiring any contract conveying a real property interest to be in writing in order to be enforceable
is a modern application of the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Loading page 21...
15. Unlike other forms of evidence of title, title insurance guards the grantee against certain risks. However,
there are a number of important limits to title insurance. Which of the following is an example of the
limits to title insurance?
A. It does not protect the grantee from the threat of physical damage to the property.
B. It does not protect a grantee against the legal costs of defending the title.
C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense.
D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the
owner's rights of use.
16. Recognizing that only recent conveyances alter the status of title, states have established laws that set
limits on how far back a title search must go. These laws are commonly referred to as:
A. Statute of Frauds
B. recording statutes
C. encroachments
D. marketable title laws
17. One of the most important requirements of a land description is for it to be unambiguous. Which of the
following methods of property description is the most unambiguous and is appropriate for use in legal
documents?
A. Street Address
B. Tax parcel number
C. Reference to prominent features of the land (e.g. monuments, river banks, roads)
D. Metes and bounds
18. The most flexible method of land description, capable of describing even the most irregular of parcels,
can be described as a very precise, compass-directed walk around the boundary of a parcel. This method
is commonly referred to as:
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
19. Most often used in the description of urban property, which of the following methods of land description
contains information regarding the location of various easements and may even contain a list of restrictive
covenants?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
20. Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789,
which of the following methods of land description relies on townships and section numbers as essential
units of identification?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
there are a number of important limits to title insurance. Which of the following is an example of the
limits to title insurance?
A. It does not protect the grantee from the threat of physical damage to the property.
B. It does not protect a grantee against the legal costs of defending the title.
C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense.
D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the
owner's rights of use.
16. Recognizing that only recent conveyances alter the status of title, states have established laws that set
limits on how far back a title search must go. These laws are commonly referred to as:
A. Statute of Frauds
B. recording statutes
C. encroachments
D. marketable title laws
17. One of the most important requirements of a land description is for it to be unambiguous. Which of the
following methods of property description is the most unambiguous and is appropriate for use in legal
documents?
A. Street Address
B. Tax parcel number
C. Reference to prominent features of the land (e.g. monuments, river banks, roads)
D. Metes and bounds
18. The most flexible method of land description, capable of describing even the most irregular of parcels,
can be described as a very precise, compass-directed walk around the boundary of a parcel. This method
is commonly referred to as:
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
19. Most often used in the description of urban property, which of the following methods of land description
contains information regarding the location of various easements and may even contain a list of restrictive
covenants?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
20. Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789,
which of the following methods of land description relies on townships and section numbers as essential
units of identification?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Loading page 22...
3 Key
1. A deed is a special form of written contract used to convey a permanent interest in real property.
Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 03 #1
2. The type of deed offered by the grantor is communicated through a phrase such as "does herby grant,
bargain, sell and convey unto . . ." This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 03 #2
3. The covenants in a deed are the most important differences among types of deeds. Which of the
following covenants promises that the grantor truly has good title and the right to convey it?
A. Covenant of seizin
B. Covenant against encumbrances
C. Covenant of quiet enjoyment
D. Exceptions and reservation clause
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 03 #3
4. Which of the following clauses contained in a deed defines or limits the type of interest being
conveyed?
A. Recital of consideration
B. Words of conveyance
C. Covenant
D. Habendum clause
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 03 #4
5. Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which
of the following types of deeds is considered to be the "highest quality" because it contains the full set
of legal promises the grantor can make?
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 03 #5
1. A deed is a special form of written contract used to convey a permanent interest in real property.
Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
Difficulty: Basic
Learning Objective: 1
Ling - Chapter 03 #1
2. The type of deed offered by the grantor is communicated through a phrase such as "does herby grant,
bargain, sell and convey unto . . ." This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 03 #2
3. The covenants in a deed are the most important differences among types of deeds. Which of the
following covenants promises that the grantor truly has good title and the right to convey it?
A. Covenant of seizin
B. Covenant against encumbrances
C. Covenant of quiet enjoyment
D. Exceptions and reservation clause
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 03 #3
4. Which of the following clauses contained in a deed defines or limits the type of interest being
conveyed?
A. Recital of consideration
B. Words of conveyance
C. Covenant
D. Habendum clause
Difficulty: Basic
Learning Objective: 2
Ling - Chapter 03 #4
5. Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which
of the following types of deeds is considered to be the "highest quality" because it contains the full set
of legal promises the grantor can make?
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
Difficulty: Intermediate
Learning Objective: 3
Ling - Chapter 03 #5
Loading page 23...
6. Considered a "questionable conveyance of title" by most courts, which of the following types of deeds
is worded to imply no claim of title, but rather only convey what interest the grantor actually has?
(Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the
local government through dedication.)
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 03 #6
7. While several kinds of real property conveyances result from events beyond the control of the grantor,
the majority of conveyances are voluntary through a deed. Which of the following is an example of a
voluntary conveyance of real property with a deed?
A. Patent
B. Probate
C. Condemnation
D. Implied Easement
Difficulty: Basic
Learning Objective: 4
Ling - Chapter 03 #7
8. At the death of a property owner, property will convey either in accordance with a will or without
a will. If a will dictates the distribution of the decedent's real property, the property is said to be
conveyed by:
A. patent
B. devise
C. the law of descent
D. dedication
Difficulty: Basic
Learning Objective: 4
Ling - Chapter 03 #8
9. While the vast majority of conveyances of real property are private grants through a deed, there are
multiple ways in which voluntary conveyance can occur without a deed. Which of the following types
of easements can occur if a landowner gives an adjacent landowner permission to depend on her land?
(E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or
her land.)
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 03 #9
10. When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for
property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of
access, which of the following types of easements will automatically be created to make the land
useful?
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 03 #10
is worded to imply no claim of title, but rather only convey what interest the grantor actually has?
(Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the
local government through dedication.)
A. General warranty deed
B. Special warranty deed
C. Deed of bargain and sale
D. Quitclaim deed
Difficulty: Basic
Learning Objective: 3
Ling - Chapter 03 #6
7. While several kinds of real property conveyances result from events beyond the control of the grantor,
the majority of conveyances are voluntary through a deed. Which of the following is an example of a
voluntary conveyance of real property with a deed?
A. Patent
B. Probate
C. Condemnation
D. Implied Easement
Difficulty: Basic
Learning Objective: 4
Ling - Chapter 03 #7
8. At the death of a property owner, property will convey either in accordance with a will or without
a will. If a will dictates the distribution of the decedent's real property, the property is said to be
conveyed by:
A. patent
B. devise
C. the law of descent
D. dedication
Difficulty: Basic
Learning Objective: 4
Ling - Chapter 03 #8
9. While the vast majority of conveyances of real property are private grants through a deed, there are
multiple ways in which voluntary conveyance can occur without a deed. Which of the following types
of easements can occur if a landowner gives an adjacent landowner permission to depend on her land?
(E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or
her land.)
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 03 #9
10. When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for
property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of
access, which of the following types of easements will automatically be created to make the land
useful?
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
Difficulty: Intermediate
Learning Objective: 5
Ling - Chapter 03 #10
Loading page 24...
11. An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple
interest is conveyed to a new owner without a deed and without the consent or knowledge of the
original owner, this is said to be conveyed by:
A. Prescription
B. Adverse possession
C. Accretion
D. Reliction
Difficulty: Basic
Learning Objective: 5
Ling - Chapter 03 #11
12. Once a document conveying an interest in real property is placed in the public records it is binding on
the public, whether or not they make an effort to learn of it. Based on the common law tradition, this
policy is known as the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 03 #12
13. A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to
completing the sale. Today, the predominant medium through which a seller meets this requirement is
by providing:
A. only a title abstract.
B. only an attorney's opinion of title.
C. only a title insurance commitment.
D. only a Torrens certificate.
Difficulty: Intermediate
Learning Objective: 8
Ling - Chapter 03 #13
14. A law requiring any contract conveying a real property interest to be in writing in order to be
enforceable is a modern application of the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Difficulty: Intermediate
Learning Objective: 6
Ling - Chapter 03 #14
15. Unlike other forms of evidence of title, title insurance guards the grantee against certain risks.
However, there are a number of important limits to title insurance. Which of the following is an
example of the limits to title insurance?
A. It does not protect the grantee from the threat of physical damage to the property.
B. It does not protect a grantee against the legal costs of defending the title.
C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense.
D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the
owner's rights of use.
Difficulty: Intermediate
Learning Objective: 8
Ling - Chapter 03 #15
16. Recognizing that only recent conveyances alter the status of title, states have established laws that set
limits on how far back a title search must go. These laws are commonly referred to as:
A. Statute of Frauds
B. recording statutes
C. encroachments
D. marketable title laws
Difficulty: Basic
Learning Objective: 7
Ling - Chapter 03 #16
interest is conveyed to a new owner without a deed and without the consent or knowledge of the
original owner, this is said to be conveyed by:
A. Prescription
B. Adverse possession
C. Accretion
D. Reliction
Difficulty: Basic
Learning Objective: 5
Ling - Chapter 03 #11
12. Once a document conveying an interest in real property is placed in the public records it is binding on
the public, whether or not they make an effort to learn of it. Based on the common law tradition, this
policy is known as the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Difficulty: Basic
Learning Objective: 6
Ling - Chapter 03 #12
13. A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to
completing the sale. Today, the predominant medium through which a seller meets this requirement is
by providing:
A. only a title abstract.
B. only an attorney's opinion of title.
C. only a title insurance commitment.
D. only a Torrens certificate.
Difficulty: Intermediate
Learning Objective: 8
Ling - Chapter 03 #13
14. A law requiring any contract conveying a real property interest to be in writing in order to be
enforceable is a modern application of the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Difficulty: Intermediate
Learning Objective: 6
Ling - Chapter 03 #14
15. Unlike other forms of evidence of title, title insurance guards the grantee against certain risks.
However, there are a number of important limits to title insurance. Which of the following is an
example of the limits to title insurance?
A. It does not protect the grantee from the threat of physical damage to the property.
B. It does not protect a grantee against the legal costs of defending the title.
C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense.
D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the
owner's rights of use.
Difficulty: Intermediate
Learning Objective: 8
Ling - Chapter 03 #15
16. Recognizing that only recent conveyances alter the status of title, states have established laws that set
limits on how far back a title search must go. These laws are commonly referred to as:
A. Statute of Frauds
B. recording statutes
C. encroachments
D. marketable title laws
Difficulty: Basic
Learning Objective: 7
Ling - Chapter 03 #16
Loading page 25...
17. One of the most important requirements of a land description is for it to be unambiguous. Which of
the following methods of property description is the most unambiguous and is appropriate for use in
legal documents?
A. Street Address
B. Tax parcel number
C. Reference to prominent features of the land (e.g. monuments, river banks, roads)
D. Metes and bounds
Difficulty: Basic
Learning Objective: 9
Ling - Chapter 03 #17
18. The most flexible method of land description, capable of describing even the most irregular of parcels,
can be described as a very precise, compass-directed walk around the boundary of a parcel. This
method is commonly referred to as:
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Basic
Learning Objective: 9
Ling - Chapter 03 #18
19. Most often used in the description of urban property, which of the following methods of land
description contains information regarding the location of various easements and may even contain a
list of restrictive covenants?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Intermediate
Learning Objective: 9
Ling - Chapter 03 #19
20. Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789,
which of the following methods of land description relies on townships and section numbers as
essential units of identification?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Intermediate
Learning Objective: 9
Ling - Chapter 03 #20
the following methods of property description is the most unambiguous and is appropriate for use in
legal documents?
A. Street Address
B. Tax parcel number
C. Reference to prominent features of the land (e.g. monuments, river banks, roads)
D. Metes and bounds
Difficulty: Basic
Learning Objective: 9
Ling - Chapter 03 #17
18. The most flexible method of land description, capable of describing even the most irregular of parcels,
can be described as a very precise, compass-directed walk around the boundary of a parcel. This
method is commonly referred to as:
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Basic
Learning Objective: 9
Ling - Chapter 03 #18
19. Most often used in the description of urban property, which of the following methods of land
description contains information regarding the location of various easements and may even contain a
list of restrictive covenants?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Intermediate
Learning Objective: 9
Ling - Chapter 03 #19
20. Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789,
which of the following methods of land description relies on townships and section numbers as
essential units of identification?
A. metes and bounds
B. subdivision plat lot and block number
C. government rectangular survey
D. tax parcel number
Difficulty: Intermediate
Learning Objective: 9
Ling - Chapter 03 #20
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3 Summary
Category # of Questions
Difficulty: Basic 12
Difficulty: Intermediate 8
Learning Objective: 1 1
Learning Objective: 2 2
Learning Objective: 3 3
Learning Objective: 4 2
Learning Objective: 5 3
Learning Objective: 6 2
Learning Objective: 7 1
Learning Objective: 8 2
Learning Objective: 9 4
Ling - Chapter 03 20
Category # of Questions
Difficulty: Basic 12
Difficulty: Intermediate 8
Learning Objective: 1 1
Learning Objective: 2 2
Learning Objective: 3 3
Learning Objective: 4 2
Learning Objective: 5 3
Learning Objective: 6 2
Learning Objective: 7 1
Learning Objective: 8 2
Learning Objective: 9 4
Ling - Chapter 03 20
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4
1. While most real property in the United States is privately owned, government regulations limit private
property use and therefore play an important role in the determination of property value. Proponents of
government intervention argue that regulation is needed to address the unintended and unaccounted for
consequences of one land user upon others, more commonly referred to as:
A. incomplete information
B. locational monopoly
C. externalities
D. urban sprawl
2. Externalities can play an important role in determining a property's price, either by adding value through
positive externalities or by diminishing value through negative externalities. Which of the following is
most likely to be considered a negative externality?
A. Nearby parks and recreation facilities.
B. Quality neighborhood schools.
C. Public assistance facilities such as homeless shelters.
D. Well-kept landscapes.
3. Development taking place in rural areas well beyond the urban fringe is commonly referred to as:
A. urban sprawl
B. holdout
C. urban service areas
D. homestead
4. It was not until the late 1960's that land use controls moved to the forefront of public interest, as the belief
that the environment was an endless and costless resource was replaced with the notion that the world
was a closed system with limited space, air, water, and other resources. Environmentalists coined which
of the following terms to refer to this new point of view?
A. Smart growth
B. The Silent Spring
C. Spaceship earth
D. Urban sprawl
5. After a structure is built, it is impractical for even a building expert to fully assess the quality of the
construction and the safety hazards it may harbor. This is an example of which of the following problems
that plagues private real estate markets?
A. Externalities
B. Incomplete information
C. Locational monopoly
D. Holdout
6. Growth management laws at the state level require local jurisdictions to plan for and meet certain
requirements. One such requirement prohibits local development unless adequate infrastructure, schools,
police/fire protection, and social services have been put in place first. This requirement is referred to as
the:
A. economic and environmental impact requirement
B. concurrency requirement
C. affordable housing requirement
D. extraterritorial jurisdiction requirement
1. While most real property in the United States is privately owned, government regulations limit private
property use and therefore play an important role in the determination of property value. Proponents of
government intervention argue that regulation is needed to address the unintended and unaccounted for
consequences of one land user upon others, more commonly referred to as:
A. incomplete information
B. locational monopoly
C. externalities
D. urban sprawl
2. Externalities can play an important role in determining a property's price, either by adding value through
positive externalities or by diminishing value through negative externalities. Which of the following is
most likely to be considered a negative externality?
A. Nearby parks and recreation facilities.
B. Quality neighborhood schools.
C. Public assistance facilities such as homeless shelters.
D. Well-kept landscapes.
3. Development taking place in rural areas well beyond the urban fringe is commonly referred to as:
A. urban sprawl
B. holdout
C. urban service areas
D. homestead
4. It was not until the late 1960's that land use controls moved to the forefront of public interest, as the belief
that the environment was an endless and costless resource was replaced with the notion that the world
was a closed system with limited space, air, water, and other resources. Environmentalists coined which
of the following terms to refer to this new point of view?
A. Smart growth
B. The Silent Spring
C. Spaceship earth
D. Urban sprawl
5. After a structure is built, it is impractical for even a building expert to fully assess the quality of the
construction and the safety hazards it may harbor. This is an example of which of the following problems
that plagues private real estate markets?
A. Externalities
B. Incomplete information
C. Locational monopoly
D. Holdout
6. Growth management laws at the state level require local jurisdictions to plan for and meet certain
requirements. One such requirement prohibits local development unless adequate infrastructure, schools,
police/fire protection, and social services have been put in place first. This requirement is referred to as
the:
A. economic and environmental impact requirement
B. concurrency requirement
C. affordable housing requirement
D. extraterritorial jurisdiction requirement
Loading page 28...
7. A contemporary planning movement that explicitly advocates a traditional grid pattern of development
designed to give pedestrian life priority over motor vehicles (e.g., including narrowed streets with houses
close to the street and garage access through side alleys) is commonly referred to as:
A. urban sprawl
B. urban service area
C. traditional residential planning
D. new urbanism
8. Which of the following tools of public land use control represents the earliest method of police power to
regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in
the application of this land use control)
A. Subdivision regulation
B. Zoning
C. Building Codes
D. Planned Unit Developments
9. When a zoning ordinance is revised, some existing land uses then fall outside the new zoning
classification. These land uses are referred to as:
A. special uses
B. nonconforming uses
C. conforming uses
D. exclusionary uses
10. When land use controls impose exceptional hardship and loss of value, a relief mechanism must be
provided. This relief is referred to as a:
A. building code
B. zoning ordinance
C. comprehensive plan
D. variance
11. In order for the board of adjustment to approve a variance, all of the following conditions must be met
EXCEPT:
A. The owner must be unable to use the lot as zoned.
B. The condition is common to other parcels of land in the vicinity.
C. The variance must not materially change the character of the neighborhood.
D. The condition is unique to the lot.
12. A traditional zoning ordinance includes all of the following EXCEPT:
A. Minimum setback requirements
B. Minimum lot dimensions
C. Provisions for special use districts
D. Performance standards
13. State and federal control of land uses has increased greatly over the past 40 years due in part to an
increased awareness of environmental hazards. Which of the following federal environmental control
laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of
abandoned and unregulated waste dumps?
A. Clean Water Act
B. Resource Conservation and Recovery Act
C. Toxic Substances Control Act
D. Comprehensive Environmental Response Compensation and Liability Act
14. Negative externalities can diminish a property's value by imposing costs on the community at large.
In order to offset this detrimental impact, economists advocate "internalizing" these externalities by
implementing:
A. performance standards
B. impact fees
C. growth moratoriums
D. planned unit developments
designed to give pedestrian life priority over motor vehicles (e.g., including narrowed streets with houses
close to the street and garage access through side alleys) is commonly referred to as:
A. urban sprawl
B. urban service area
C. traditional residential planning
D. new urbanism
8. Which of the following tools of public land use control represents the earliest method of police power to
regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in
the application of this land use control)
A. Subdivision regulation
B. Zoning
C. Building Codes
D. Planned Unit Developments
9. When a zoning ordinance is revised, some existing land uses then fall outside the new zoning
classification. These land uses are referred to as:
A. special uses
B. nonconforming uses
C. conforming uses
D. exclusionary uses
10. When land use controls impose exceptional hardship and loss of value, a relief mechanism must be
provided. This relief is referred to as a:
A. building code
B. zoning ordinance
C. comprehensive plan
D. variance
11. In order for the board of adjustment to approve a variance, all of the following conditions must be met
EXCEPT:
A. The owner must be unable to use the lot as zoned.
B. The condition is common to other parcels of land in the vicinity.
C. The variance must not materially change the character of the neighborhood.
D. The condition is unique to the lot.
12. A traditional zoning ordinance includes all of the following EXCEPT:
A. Minimum setback requirements
B. Minimum lot dimensions
C. Provisions for special use districts
D. Performance standards
13. State and federal control of land uses has increased greatly over the past 40 years due in part to an
increased awareness of environmental hazards. Which of the following federal environmental control
laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of
abandoned and unregulated waste dumps?
A. Clean Water Act
B. Resource Conservation and Recovery Act
C. Toxic Substances Control Act
D. Comprehensive Environmental Response Compensation and Liability Act
14. Negative externalities can diminish a property's value by imposing costs on the community at large.
In order to offset this detrimental impact, economists advocate "internalizing" these externalities by
implementing:
A. performance standards
B. impact fees
C. growth moratoriums
D. planned unit developments
Loading page 29...
15. A major problem in buildings constructed prior to the early 1970's, which of the following environmental
hazards commonly associated with insulation has been the focus of costly cleanups at many public
buildings, especially schools?
A. Asbestos
B. Radon
C. PCBs (Polychlorinated biphenyls)
D. LUSTs (leaking underground storage tanks)
16. The right of government to acquire private property, without the owner's consent, for public use in
exchange for just compensation is referred to as:
A. inverse condemnation
B. regulatory taking
C. eminent domain
D. dedication
17. All of the following statements are true in describing the determination of just compensation
EXCEPT:
A. The value of the property is based on its highest and best use at the time.
B. The value of the property is determined solely by its current use.
C
.
The value is the amount that restores the property owner to a financial position equivalent to that
existing before the property was taken.
D. The value is the market value of the property if completely taken, or the total value of all financial loss
if partially taken.
18. Real estate taxes represent the largest single source of revenue for a large portion of local governments.
Most property taxes are applied in relation to the value of the property, or in other words, they are:
A. effective tax rates
B. ad valorem taxes
C. tax-exempt
D. regressive
19. A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly
developing. However, the city claims to have the right to control urban development even in the proposed
area. The right the city is attempting to invoke is referred to as:
A. extraterritorial jurisdiction.
B. urban service area.
C. comprehensive plan.
D. growth constraint.
20. While most property taxes are levied in order to finance services that benefit the community, special
assessments are levied to pay for specific improvements that benefit a particular group of properties. All
of the following characteristics of special assessments are true EXCEPT:
A. They are considered ad valorem taxes.
B. They are applied as pro rata charges.
C. They are levied directly on the properties benefited.
D. They are commonly used to finance streets, storm water systems, sidewalks, and other area
improvements.
21. The right to pay unpaid taxes, plus interest and penalties, before public sale and to reclaim full title of the
property is referred to as:
A. inverse condemnation
B. foreclosure
C. equity right of redemption
D. regulatory taking
hazards commonly associated with insulation has been the focus of costly cleanups at many public
buildings, especially schools?
A. Asbestos
B. Radon
C. PCBs (Polychlorinated biphenyls)
D. LUSTs (leaking underground storage tanks)
16. The right of government to acquire private property, without the owner's consent, for public use in
exchange for just compensation is referred to as:
A. inverse condemnation
B. regulatory taking
C. eminent domain
D. dedication
17. All of the following statements are true in describing the determination of just compensation
EXCEPT:
A. The value of the property is based on its highest and best use at the time.
B. The value of the property is determined solely by its current use.
C
.
The value is the amount that restores the property owner to a financial position equivalent to that
existing before the property was taken.
D. The value is the market value of the property if completely taken, or the total value of all financial loss
if partially taken.
18. Real estate taxes represent the largest single source of revenue for a large portion of local governments.
Most property taxes are applied in relation to the value of the property, or in other words, they are:
A. effective tax rates
B. ad valorem taxes
C. tax-exempt
D. regressive
19. A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly
developing. However, the city claims to have the right to control urban development even in the proposed
area. The right the city is attempting to invoke is referred to as:
A. extraterritorial jurisdiction.
B. urban service area.
C. comprehensive plan.
D. growth constraint.
20. While most property taxes are levied in order to finance services that benefit the community, special
assessments are levied to pay for specific improvements that benefit a particular group of properties. All
of the following characteristics of special assessments are true EXCEPT:
A. They are considered ad valorem taxes.
B. They are applied as pro rata charges.
C. They are levied directly on the properties benefited.
D. They are commonly used to finance streets, storm water systems, sidewalks, and other area
improvements.
21. The right to pay unpaid taxes, plus interest and penalties, before public sale and to reclaim full title of the
property is referred to as:
A. inverse condemnation
B. foreclosure
C. equity right of redemption
D. regulatory taking
Loading page 30...
22. One of the main criticisms of property taxes is that the property tax of lower income households is higher
than that of higher income households, as a percentage of their respective incomes. In other words, taxes
are criticized for being:
A. regressive
B. comprehensive
C. concurrent
D. extraterritorial
23. In the state of Florida, for example, homeowners may qualify for a tax exemption in which up to $50,000
will be deducted from the assessed value of the property before taxes are calculated as long as the
property owner occupies a home as the family's principal residence and has claimed residency within the
state. This exemption is better known as the:
A. ad valorem exemption
B. affordable housing exemption
C. growth moratorium
D. homestead exemption
24. Given the following information, compute the property tax rate for the community in percentage terms.
Total budget expenditures: $108 million, Total non-property tax income: $50 million, Total assessed
value of all properties: $2 billion, Total exemptions: $550 million.
A. 2.5%
B. 4.0%
C. 10.0%
D. 12.0%
25. Tax rates are usually stated in mills. Assuming the tax rate in percentage terms is 6.5%, convert this rate
to mills.
A. 0.065 mills
B. 6.5 mills
C. 65 mills
D. 650 mills
26. Given the following information, compute the effective tax rate for the particular piece of property
in percentage terms. Market value of property: $325,000, Assessed value of property: $250,000,
Exemptions: $50,000, Taxes paid: $5,363.
A. 1.50%
B. 2.35%
C. 1.65%
D. 2.68%
27. Given the following information, compute the taxable value for the particular piece of property in dollar
terms. Market value of property: $500,000, Assessed value of property: 85 % of the market value of the
property, Exemptions: $50,000, Taxes paid: $8,250.
A. $75,000
B. $375,000
C. $416,750
D. $425,000
than that of higher income households, as a percentage of their respective incomes. In other words, taxes
are criticized for being:
A. regressive
B. comprehensive
C. concurrent
D. extraterritorial
23. In the state of Florida, for example, homeowners may qualify for a tax exemption in which up to $50,000
will be deducted from the assessed value of the property before taxes are calculated as long as the
property owner occupies a home as the family's principal residence and has claimed residency within the
state. This exemption is better known as the:
A. ad valorem exemption
B. affordable housing exemption
C. growth moratorium
D. homestead exemption
24. Given the following information, compute the property tax rate for the community in percentage terms.
Total budget expenditures: $108 million, Total non-property tax income: $50 million, Total assessed
value of all properties: $2 billion, Total exemptions: $550 million.
A. 2.5%
B. 4.0%
C. 10.0%
D. 12.0%
25. Tax rates are usually stated in mills. Assuming the tax rate in percentage terms is 6.5%, convert this rate
to mills.
A. 0.065 mills
B. 6.5 mills
C. 65 mills
D. 650 mills
26. Given the following information, compute the effective tax rate for the particular piece of property
in percentage terms. Market value of property: $325,000, Assessed value of property: $250,000,
Exemptions: $50,000, Taxes paid: $5,363.
A. 1.50%
B. 2.35%
C. 1.65%
D. 2.68%
27. Given the following information, compute the taxable value for the particular piece of property in dollar
terms. Market value of property: $500,000, Assessed value of property: 85 % of the market value of the
property, Exemptions: $50,000, Taxes paid: $8,250.
A. $75,000
B. $375,000
C. $416,750
D. $425,000
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Subject
Business Law