Real Estate Exam - Chapters 1-3 Flashcards

Real Estate Exam - Chapters 1-3 Flashcards Which is true of a cooperative?A cooperative may hold an owner liable for the unpaid operating expenses of other owners.If a co-worker in a joint tenancy or tenancy in common wants to dispose of his or her interest against the wishes of

the other co-owners, the co-owner can:

Sue in court for a termination of the tenancy and partition of the property.The laws that are most relevant to agents and brokers are

those relating to:

AgencyContractsDisclosureEnvironmental impactFair housing If a joint tenant sells his or her interest to an outside party:The new owner is a tenant in common

Encumbrances and police powers are:Interests that do not include possession

A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists?Estate from period to period People in the real estate business who primarily focus on

creating new properties are:

Developers Property that refers to retail and office properties, and industrial real estate.Commercial Property A portion of land delineated by boundaries is? A parcel or tract A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered what?Trade fixtures that are personal property Which of the following is an illustration of the legal concept of elective share?A widow who was excluded from a will makes a claim to a portion of the couple's principal residence.Real estate in the United States may be owned by? Privately by individuals and private entities or publicly by government entities.The distinguishing features of a condominium estate are:Fee simple ownership of the airspace in a unit and undivided share of the entire property's common areas.Some of the individual brokerage services that one might perform for a pre-set fee Comparative price analysisDatabase searchProspect screeningSite analysis The most common form of co-ownership when the owners

are not married is:

Tenancy in common What distinguishes a pur autre vie life estate from an ordinary life estate?The pur autre vie estate endures only fro the lifetime of a person other than the grantee.What is true of homestead?A homestead interest cannot be conveyed by one spouse.What distinguishes a freehold estate from a leasehold estate?A leasehold endures only for a specific period of time.

The two principal types of managers are: Property managers and Asset managers

When a single individual or entity owns a fee or life estate

in real property, the type of ownership is:

Tenancy in severalty Two individuals can own a house as tenants by the

entireties if:

They are married

When a joint tenant dies, what happens to the tenant's interest in the estate?It passes to the surviving joint tenants Unlike tenants in common, joint tenants: Cannot will their interest to a party outside the tenancy Federal and state statutes, as well as a large body of court decisions, generally referred to as common law, circumscribe what?How real estate can be developed, managed and transferred.In a community property state, a basic distinction is made

between:

Property acquired during a marriage and property already owned by each party at the time of marriage.Which term refers to the rights of a property that abuts a stream or river?Riparian What part of a non-navigable waterway does the owner of an abutting property own?To the middle of the waterway Who are the essential parties involved in an estate in trust?Trustor, trustee and beneficiary In contrast to a tenancy in common, in a joint tenancy:There is a single title to the property One of the benefits offered by ownership in a tenancy by

the entireties is:

the estate is subject to foreclosure only for jointly incurred debts.Which of the following life estates is created by someone other than the owner?Legal life estate A simple definition of real estate is?Air, water, land, and everything affixed to the land.The distinguishing feature of a defeasible fee simple estate

is that:

The estate may revert to a grantor of heirs if the prescribed use changes.Serve to remove properties that are no longer economically viable from the market.Demolition experts Who owns the property in a time-share estate? The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.

Dower refers to:A wife's life estate interest in her husband's property.

Which is true of a tenancy in common?The tenants share an indivisible interest Which is an example of intangible property? Stock A tenant in common can:Sell, encumber or transfer his or her interest to an outside party without the consent of the other tenants in common.The 5 specializations for brokers and agents. Property typeGeographical areaType of transactionType of clientType of relationship Oversees specific properties on behalf of the owners, making sure the condition of the property and its financial performance meet specific standards?Property managers Which professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?Brokers and agents A unique feature of a land trust is that: The identity of the beneficiary may not be identified.The primary distinction between legal concepts of real

estate and real property is that:

Real property includes ownership of a bundle of rights The Property type specializations are:Residential PropertyCommercial PropertyInvestment Property When real property is held in a land trust, who controls the property?The beneficiary

The three unique physical characteristics are? Immobility, Indestructibility and Heterogeneity What guarantees the right of private ownership of real estate in the United States?The Constitution When a tenant in common dies, what happens to the tenant's interest in the estate?It passes by probate to the deceased tenant's heirs.In a time-share freehold, owner acquire: Undivided interests as tenants in common.In a cooperative, real property is owned only by: The corporate entity of the cooperative association.Which level of government controls zoning laws? County and local An item can be converted from real to personal property and vice versa by means of which processes?Affixing and severance The owner of a cooperative owns:Shares in a corporation or association and a proprietary lease in a physical unit.Real estate professionals perform the following

property-related functions:

Creation and improvementManagement and maintenanceDemolitionInvestment ownershipRegulationTransfer The primary distinction between the legal concepts of land

and real estate is that:

Land does not include man-made structures Upon the death of the owner, a life estate passes to:The original owner or other named person How is a conventional life estate created? A fee simple owner grants the life estate to a life tenant.When an estate is held in a trust, who holds legal title?The trustee

A condominium owner can:Sell or mortgage the condominium unit without hindrance

from individual owners of neighboring units.What is an advisory service provider?A broker who renders real estate services for a fee

Surface rights, air rights and subsurface rights are:Seperable

Under the doctrine of littoral rights, an owner claims ownership of all the land underlying a lake where there are three other abutting property owners. Why would the owner's claim be invalid?Because the state owns the underlying land What is an emblement?A plant or crop that is considered personal property Property that is owned and used for habitation. Residential Property Property that is held by its owners for investment purposes.Investment Property Which is included in the bundle of rights inherent in ownership?To transfer State license laws are administered in each state by a?Real estate commission A condominium owner's assessments for maintenance and

operation are based on:

The unit's pro rata share of the property value as defined in the declaration.The "four unities" required to create a joint tenancy include which condition?Parties must acquire respective interests at the same time.The right to use real property is limited by: The right of others to use and enjoy their property What does ARELLO stand for?Association of Real Estate Licensed Law Officials The level of government which is most active in regulating

real estate licensees is the:

State government An interest in real estate is best defined as ownership of:One or more of the bundle of rights to real property Which is considered real property?A tree growing on a parcel of land

Homogeneity means?Similarity Classifications of Real Estate by UseResidentialResidential IncomeOfficeRetailIndustrialFarm and RanchSpecial purposeLand Property management and real estate asset management are both real estate management professions. The primary

distinction between the two is that:

Property managers handle day-to-day operations while asset managers manage portfolios of properties.The highest form of ownership interest one can acquire in

real estate is the:

Absolute fee simple estate Which is true of a joint tenancy?The tenants have an equal and indivisible ownership interest.Which of the following is the best definition of real estate?Land and everything permanently attached to it One difference between a cooperative estate and a

condominium estate is that:

A default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.Private ownership rights in this country are not what?Absolute The legal concept of land encompasses:The surface area of the earthEverything beneath the surface of the earth extending downward to its center.All natural things permanently attached to the earthThe air above the surface of the earth extending outward to infinity.What is the "Doctrine of Prior Appropriation?" A doctrine that gives the state control of water use improvements Agents must develop a thorough awareness of their:Local market and the properties within it Which of the following is included in the legal concept of land?The surface of the earth an all natural things permanently attached to the earth.What are the three unique physical characteristics of land?Immobile, indestructible, and heterogeneous Which way of specializing is common in the real estate brokerage business?Financing background of client State real estate license laws comprise: the primary body of laws and regulations governing real estate brokerage practice.The 4 property type agentsResidentalCommercialIndustrialLand A seller, buyer, landlord or tenant hires this person to procure the opposite party to the sale or lease transaction.Broker The overriding test of whether an item is a fixture or

personal property is:

Its definition as one or the other in a sale or lease contract.One of the most important kinds a knowledge a realtor should know.Real estate financing The major sources of real estate law are legislation at

federal, state and local level, and:

Court decisions Oversees groups of properties, or portfolios. Asset managers Three people have identical rights but unequal shares in a property, share and indivisible interest, and may sell or transfer their interest without consent of the others. This

type of ownership is:

Tenancy in common What is the primary thrust of federal involvement in real estate law?Broad regulation of usage