Property Ownership QUIZ

Question 1

Section 4 contains how many acres?

a. 40
b. 160
c. 640
d. 43,560

Answer 1

A section contains 640 acres.

Question 2

A survey would do all of the following EXCEPT

a. establish boundaries.
b. create legal descriptions.
c. reveal an illegal use such as a commercial

use in a residential zone.

d. find encroachments.

Answer 2

A survey would not find an illegal use.

Question 3

Real estate is bought and sold based on

a. street addresses.
b. property descriptions.
c. plat sizes only.
d. plats and parcels.

Answer 3

Real estate is bought and sold based on property descriptions (also called legal descriptions).

Question 4

The definition of real estate includes

a. land.
b. improvements.
c. rights.
d. all of these.

Answer 4

Real estate includes land, improvements, and rights.

Question 5

Which of the following would ordinarily be considered personal property?

a. Drapery rods
b. Freestanding refrigerator
c. Built-in bookcase
d. Ceiling fan

Answer 5

Personal property is not permanently attached to real estate.

Question 6

All of the following are true about fixtures EXCEPT

a. fixtures typically start as personal property.

b. if the seller is going to keep a fixture,
it must be excluded in the purchase
agreement.

c. trade fixtures are treated the same as all
other fixtures.

d. the intention, attachment, adaptation, and
agreement are all used to define a fixture.

Answer 6

Trade fixtures are personal property and transfer with a bill of sale.

Question 7

A developer bought a 100-acre parcel to sub- divide into one-acre home sites. Which of the following methods of legal description would BEST achieve the developer’s objectives?

a. Government survey
b. Monuments
c. Lot and block
d. Metes and bounds

Answer 7

A subdivided (recorded) plat is the simplest way to divide a large parcel into smaller lots.

Question 8

Which of the following is generally NOT a use classification established by municipal zoning?

a. Residential
b. Mixed
c. Commercial
d. Architectural

Answer 8

The most common zoning classifications are residential, commercial, industrial/manufacturing, agricultural, and mixed use.

Question 9

The method of legal description using a grid of ranges and tiers is called

a. government survey.
b. metes and bounds.
c. informal reference.
d. street address.

Answer 9

The government survey (rectangular survey) established sections, townships, and ranges in the western United States.

Question 10

After completing the plat map, the developer’s next step is to

a. request a certificate of occupancy.
b. pull the building permits.
c. record the plat map.
d. sell the lots.

Answer 10

After receiving the plat map, the second step is to record the map. Then the lots can be sold and building permits pulled.

Question 11

Nonconforming use is a term used in reference to property that
a. extends over lot lines.

b. is in need of deferred maintenance.
c. doesn’t comply with current zoning requirements but may have been grandfathered in.
d. has not been recorded.

Answer 11

When zoning in an area changes, a pre- existing improvement is allowed to continue as a nonconforming use.

Question 12

A light industrial plant has been operating
in compliance with its zoning classification. After a zoning change to single-family residential use, the owners of the industrial plant are permitted to

a. convert the building to condominiums.

b. continue the present use as long as that use
is not enlarged or expanded.

c. build an addition to the plant.

d. rebuild the plant if it is destroyed by natural
causes.

Answer 12

When a previously established use does not comply with the requirements of a new zoning ordinance, it may be allowed to continue only if the established use is not enlarged or expanded. Also, the use may not be resumed after it has been discontinued.

Question 13

At which level are zoning restrictions set?

a. State
b. Federal
c. Local and state
d. Local

Answer 13

Zoning laws are set at the local level.

Question 14

Municipalities require submission of blueprints and construction plans before issuing a building permit in order to

a. provide evidence of compliance with build- ing codes and other local regulations.
b. prevent unfair competition.
c. maintain a list of active developers.
d. control the influx of builders from surrounding areas.

Answer 14

Building permits are required to ensure compliance with building codes and other local regulations.

Question 15

A municipality has authorized the improvement of a particular property in a manner NOT authorized by the zoning ordinance. This is an example of a

a. setback restriction.
b. buffer zone.
c. specific performance.
d. variance.

Answer 15

Permission to vary or deviate from a zoning restriction comes in the form of a variance. Typically, the type of variance in this case would be a conditional use or special-use permit.

Question 16

Which method of legal description uses plat maps?

a. Informal description by street address or rural route
b. Lot and block
c. Government survey
d. Metes and bounds

Answer 16

The lot and block (recorded plat) method of description uses plat maps to show the location and boundaries of individual lots in a land subdivision.

Question 17

A tenant installed shelving as a part of her business. At the conclusion of the lease, the tenant

a. may remove the shelving only if she reimburses the landlord.
b. must leave the shelving because it is the landlord’s property.
c. may remove the shelving and is not required to reimburse the landlord.
d. must leave the shelving but may demand that the landlord reimburse her.

Answer 17

Shelving is an example of a trade fixture. Trade fixtures are the tenant’s personal property and may be removed by the tenant at the conclusion of the lease.

Question 18

An area of land that separates two drastically different land use zones is a

a. buffer zone.
b. setback.
c. nonconforming zone.
d. variance.

Answer 18

When adjoining or nearby properties are zoned for drastically different uses, municipalities often create a buffer zone to separate them.

Question 19

The distance that a zoning ordinance requires between a property’s boundaries and its improvements is a

a. buffer zone.
b. range.
c. frontage.
d. setback.

Answer 19

The setback establishes the minimum distance between the boundaries and the improvements located on the property.

Question 20

A method of property description using monuments, distances, and compass directions is the

a. lot and block method.
b. metes-and-bounds method.
c. rectangular survey method.
d. maps and plats method.

Answer 20

The metes-and-bounds method of legal description uses distance and direction measurements to describe the boundaries of a property.

Question 21

All of the following would be considered fixtures EXCEPT

a. plumbing.
b. wiring.
c. a built-in oven.
d. draperies.

Answer 21

Draperies are considered to be personal property because they are not attached.

Question 22

The legal description of land that uses town- ships and sections is

a. rectangular survey.
b. metes and bounds.
c. lot and block.
d. township.

Answer 22

The rectangular survey uses townships and sections to describe land.

Question 23

The principle of the doctrine of prior appropriation determines

a. which user’s water rights have priority.
b. who owns the fixtures.
c. how personal property is distributed.
d. who has access to water rights.

Answer 23

The doctrine of prior appropriation determines which user’s water rights have priority.

Question 24

Which of the following concepts would allow an owner to deviate from zoning regulations and run a day care center in her home in a neighborhood that is zoned residential?

a. Setback
b. Nonconforming use
c. Master plan
d. Special use

Answer 24

Special use is the type of variance that allows for different uses of property.

Question 25

The document confirming that a new building has met all the minimum building standards and is the final regulatory step in the process of offering new construction for sale is called a

a. building permit.
b. certificate of zoning.
c. building code.
d. certificate of occupancy.

Answer 25

A certificate of occupancy is the final step to show that a new building meets minimum building standards.

Question 26

A buyer wants to use a residential property for a small business. Before closing, the buyer should

a. apply for a special use permit.

b. check the zoning to determine if the use is
allowed.

c. call an attorney to request a variance.
d. apply for a sales tax license.

Answer 26

The buyer is expected to verify that the zoning of the property will meet the intended use.

Question 27

Which of the following BEST defines a plat?

a. A method of legal description using sections, townships, and ranges
b. An informal reference to properties in a neighborhood
c. A document used to record a subdivision of land
d. An instrument used by surveyors to locate property boundaries

Answer 27

A plat is a map showing the location and boundaries in subdivision.

Question 28

Which of the following is TRUE about mineral rights?

a. They represent an interest in personal property.
b. They often are held by a third party.
c. They belong to the state.

d. Solid mineral rights are an interest in real
estate, and liquid minerals are considered personal property.

Answer 28

In a sale, if the seller retains the mineral rights and sells them separately from the surface rights, the new buyer who now holds the sub- surface mineral rights is called the third party.

Question 29

A fixture is defined as

a. personal property attached to real property. b. a lien of record.
c. chattel.
d. an encumbrance.

Answer 29

Fixtures are personal property that are attached to improvements.

Question 30

The seller and the buyer have negotiated an offer back and forth. In the original offer, the buyer asked for the seller’s installed hot tub, which the seller had excluded from the marketing, MLS listing, and listing contract. In the final accepted offer, the hot tub is not mentioned. Who will own the hot tub at closing?

a. The seller, because the seller gave notice in the marketing and MLS listing and the listing broker was aware of the exclusion
b. The buyer, because the hot tub is automatically transferred with the property because it is personal property
c. The buyer; the seller would be in breach if the hot tub was removed
d. The seller, because it was excluded in the listing

Answer 30

The hot tub is a fixture and cannot be removed without the seller being in breach because the seller did not specifically exclude it in the purchase agreement.