Unit 2

Question 1

Traditionally, ownership rights of real property are described as a barrel of legal rights.

Answer 1

False

Question 2

Trade fixtures that are not removed become the real property of the landlord. Acquiring the property in this way is known as accession and is related to the legal principle of constructive annexation.

Answer 2

True

Question 3

All 50 states have passed laws that require real estate brokers and real estate salespeople to be licensed.

Answer 3

True

Question 4

A real estate licensee must be an expert in all areas of real estate law.

Answer 4

False

Question 5

A buyer particularly liked the ornate brass lighting fixtures in a seller’s house and immediately made an offer, which the seller accepted. On moving day, the buyer discovered that the seller had replaced all the ornate brass lighting fixtures with plain chrome ones. Which of these is MOST likely a correct assumption?

Answer 5

Buyer: “Lighting fixtures are normally considered to be real property.”

Question 6

Which of the following is considered personal property?

Answer 6

Patio furniture

Question 7

The owner of a bicycle repair business installs trade fixtures in a rented space. When the business owner’s lease expires, the business is moved to a new location. Any trade fixtures that remain on the premises after the end of the lease term

Answer 7

became the real property of the landlord.

Question 8

The owner of a piece of vacant land removed and sold all the topsoil, limestone, and gravel. At the owner’s death, which is TRUE?

Answer 8

The heir of the deceased inherits the property as is.

Question 9

Which of the following is NOT a test in determining whether the intent of the person who installed an item was that it be a fixture or personal property?

Answer 9

Cost of the item

Question 10

A property owner wants to use water from a river that runs through the property to irrigate a potato field. To do so, the owner is required by state law to submit an application to the Department of Water Resources describing in detail the plan for beneficial use of the water. If the department approves the owner’s application, it will issue a permit allowing a limited amount of river water to be diverted onto the property. Based on these facts, it can be assumed that this property owner’s state relies on which rule of law?

Answer 10

Doctrine of prior appropriation

Question 11

Growing trees, fences, and buildings are all considered

Answer 11

real estate.

Question 12

When an owner of real estate sells the property to someone else, which of the “sticks” in the bundle of legal rights is the owner as seller using?

Answer 12

Disposition

Question 13

Manufactured housing is the term used for a factory-built home as of

Answer 13

1976.

Question 14

A resort purchases a large tract of scenic forest land and puts several prefabricated steel buildings there to store landscaping equipment, fuel oil, and propane canisters. Which statement is TRUE regarding this situation?

Answer 14

The resort’s action constitutes improvement of the property.

Question 15

Method of attachment, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is

Answer 15

a fixture or personal property.

Question 16

Many states determine the order of water rights to which users of the water hold recorded beneficial use permits. This allocation of water rights is controlled by

Answer 16

the doctrine of prior appropriation.

Question 16

An owner of land is entitled to all land created through an increase in the land resulting from the deposit of soil by the water’s action called

Answer 16

accretion.

Question 17

The purpose of real estate license laws is to protect the public in real estate transactions from fraud, dishonesty, and

Answer 17

incompetence.

Question 18

In some states, a landowner must demonstrate a beneficial use for water under the doctrine of

Answer 18

prior appropriation.

Question 19

In the legal tests to determine whether an item is a fixture, the permanence of its installation is considered under

Answer 19

the method of annexation.

Question 20

The specific areas of law that are important to the real estate professional include the law of contracts, the general property law, the law of agency, and specific

Answer 20

state real estate license law.

Question 21

A buyer purchased a parcel of land and immediately sold the mineral rights to an oil company. The buyer gave up which of the following?

Answer 21

Subsurface rights