Exam 1

Question 1

True or False: A property may be transferred without a deed.

Answer 1

True

Question 2

The term used to describe the ability to sell a property quickly for a fair market value is:

Answer 2

Liquidity

Question 3

Bill and Mike go in together to purchase 640 acres of land to hunt on. Ten years later, Bill dies and Bill’s wife tries to sell his half of the land. Mike informs her that unfortunately she has no claim on the land and that it is all his now. What type of co-ownership is this?

Answer 3

Joint Tenancy

Question 4

Charles is 75 with no heirs. While meeting with his lawyer about some estate planning issues, the lawyer suggests that Charles donate his current home to his church under the condition that he be allowed to live there for the rest of his life. This is an example of what type of ownership estate?

Answer 4

Ordinary Life Estate with Remainder Interest

Question 5

A life estate with remainder interest created by the owner is:

Answer 5

Ordinary Life Estate with Remainder Interest

Question 6

A life estate with remainder interest imposed by the law is:

Answer 6

Legal Life Estate with Remainder Interest

Question 7

Using the address of your home is a sufficient description of it for legal purposes.

Answer 7

False

Question 8

A neighborhood association was formed to improve the community. The built parks, bike paths, landscaped the entrance, and invited entertainers to perform at the 4th of July celebration. All of this has contributed to a rise in property values. What describes the reason for this increase?

Answer 8

Positive externalities

Question 9

Which of the following is not considered to be improvement on the land? 
    A)    fence 
    B)    deck 
    C)    storm drain 
    D)    building

Answer 9

Building

Question 10

Rules used by courts to determine whether an item is a fixture include all EXCEPT:
A) relation of the parties
B) character of the article and manner of adaptation
C) possession of the item
D) intention of the parties
E) manner of attachment

Answer 10

Possession of the item

Question 11

True or False. The majority of property tax appeals are denied.

Answer 11

False

Question 12

The actions of government can result in:

Answer 12

Changes in property rights, interest rates, tax structure.

Question 13

True or False. The federal government is responsible for levying property taxes.

Answer 13

False. The local government is.

Question 14

True or False. Real estate contracts that convey an interest in real property must be in writing.

Answer 14

True

Question 15

How many square feet are in one acre?

Answer 15

43560 square feet

Question 16

Why is joint tenancy a poor choice of co-ownership for condominium owners?

Answer 16

• “Right of survivorship” restricts inheritance to heirs of the last surviving owner
• Difficult to create and easily disrupted
• Prevented or restricted by law in some states

Question 17

Explain how the national government can influence the value of real estate.

Answer 17

Income tax policy affects the incentive to invest in it. Housing subsidy programs affects the level and type of housing construction. Government-related financial agencies like FDIC effects operations of real estate capital markets. Environmental protection law affect the use of real estate.