Practice Questions Flashcards
While moving into a newly purchased home, the buyer discovered that the seller had taken the ceiling fan that hung over the dining room table. The seller had not indicated that the ceiling fan would be removed, and the contract did not address this issue. Which statement is TRUE?
The answer is ceiling fans are normally considered real estate.
When in a box, a ceiling fan is personal property, but once it is installed in the ceiling, it is considered real property.
The buyers have asked their real estate agent to help them determine the correct way to take title to their new home. In this situation, the real estate agent should
The answer is suggest that the buyers consult an attorney.
Only attorneys are trained and licensed to prepare documents defining or transferring rights in property and to give advice on matters of law. Licensees should suggest that the buyers consult legal counsel.
Which of the following is required in Pennsylvania real estate transactions?
The answer is Coal Mining Notice.
Because of the possibility of mine subsidence, Pennsylvania law requires that sellers provide a Coal Mining Notice to purchasers indicating that a structure on the land may not be protected against damage caused by subsidence caused by coal mining. Special insurance is available to cover damage by mine subsidence.
Method of annexation, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is
The answer is a fixture or personal property.
The tests used to determine whether an item is real or personal property include the intent of the parties, method of annexation, adaption to real estate, and the agreement between the parties.
Who, if anyone, is permitted to obtain aviation easements over land surrounding airports?
The answer is local government authorities.
Pennsylvania law permits local government authorities to obtain aviation easements (air rights) over land surrounding airports to prevent interference with takeoffs and landings.
A landlord leases store space to a tenant for a restaurant. The tenant installs ovens, booths, counters, and other equipment. When, if ever, do these items become real property?
The answer is when the lease expires.
Trade fixtures must be removed on or before the last day the property is rented. Fixtures that are not removed become the real property of the landlord. Acquiring property in this way is known as accession (this is related to the legal principle of constructive annexation).
The bundle of legal rights is included in the definition of
The answer is real property.
The definition of real property includes more than the physical nature of either “land” or “real estate.” Real property includes interests, rights, and benefits associated with ownership.
What economic characteristic refers to people’s preference for a specific area?
The answer is situs.
Situs may be called area preference and refers to the unique quality about a place that makes it more or less desirable because of convenience, reputation, and history.
Location is often considered the single most important economic characteristic of land
Which of the following is a physical characteristic of real estate?
The answer is indestructibility.
Indestructibility refers to a physical characteristic of real estate, not an economic characteristic.
The buyers fell in love with Lot 17A and entered into an agreement to purchase the lot. A few days later, the owner’s son decided that he wanted Lot 17A. The owner is not permitted to make a substitution based on the characteristic of
The answer is uniqueness.
Uniqueness is also known as non-homogeneity and is the concept that no two parcels of property are the same, or are in the same location. There can be no substitute because each is unique.
The rights, privileges, and improvements that belong to the land and are conveyed when ownership transfers are
The answer is appurtenances.
Real property is often coupled with the term appurtenances, which is defined as the rights, privileges, and improvements that belong to the land. Appurtenances are connected to the real estate and are conveyed when ownership transfers.
The primary intent of zoning regulations is to
The answer is ensure the health, safety, and welfare of the community.
Zoning ordinances are regulatory tools that help communities regulate and control how land is used for the protection of public health, safety, and welfare. They also help implement the comprehensive plan by regulating and controlling the use of land and structures within designated land-use districts, in part by separating conflicting land uses.
Which of the following very often have time restrictions?
The answer is covenants, conditions, and restrictions (CC&Rs). Unlike most deed restrictions, many CC&Rs have time limitations; in time, they may become inoperative or they may be extended if approved by the required number of owners.
Soil absorption and drainage are measured by a
The answer is percolation test.
The purpose of a percolation test is to measure soil absorption or drainage capacity. Percolation tests are often used to determine whether the soil being tested will support a septic system.
To protect the public from fraudulent interstate land sales, a developer involved in interstate land sales of 25 or more lots must
The answer is provide each purchaser with a report of the details of the land, as registered with HUD.
The interstate sale of unimproved lots, with land being sold without having been seen by the purchaser, may be subject to the federal Interstate Land Sales Full Disclosure Act. This law requires registration of the details of the land with HUD and also requires that the purchaser be provided with a detailed property report.
