Real Property Characteristics, Rights & Ownership — Real Estate License practice questions

An estate for years tenancy is BEST characterized by:

1. A fixed duration with definite start and end dates set
2. Indefinite duration terminable at will by either party
3. The same ownership rights as a full fee simple estate
4. A month-to-month tenancy renewing until terminated

Answer: A — A fixed duration with definite start and end dates set

A) Correct - fixed term. B) Wrong - estate at will. C) Wrong - fee simple is ownership. D) Wrong - periodic tenancy.

An encumbrance in property law is BEST described as which of these?

1. Any burden on title, whether financial or non-financial in nature
2. Only a lease of the property with a stated fixed end date
3. Any improvement to the property, such as a fence or driveway
4. A pure ownership right without any burden or limitation

Answer: A — Any burden on title, whether financial or non-financial in nature

A) Correct — encumbrances include liens, easements, restrictions. B) Leases can be encumbrances but are not the definition. C) Improvements are additions, not burdens. D) That is not an encumbrance.

A metes and bounds legal description uses:

1. A point of beginning, bearings, distances, and returning to the start
2. A lot and block number referenced in a recorded subdivision plat
3. A township, range, and section within a federal survey grid pattern
4. A simple street address as printed in a private mailing directory

Answer: A — A point of beginning, bearings, distances, and returning to the start

C) Wrong - rectangular survey. B) Wrong - lot and block. A) Correct - oldest description. D) Wrong - not legal.

Which of the following is considered real property?

1. A built-in dishwasher installed in the kitchen
2. A portable generator kept on the back patio
3. A window air-conditioning unit set in the sash
4. An oriental area rug laid over the hardwood

Answer: A — A built-in dishwasher installed in the kitchen

A) Correct — built-in dishwasher is a fixture and part of real property. B) Movable chattel — personal property. C) Not permanently attached — personal property. D) Movable furnishing — personal property.

"To A so long as land used for church." A stops church use. What happens?

1. Title reverts automatically to grantor
2. Grantor must file suit to reclaim
3. The property escheats to the state
4. A retains full unrestricted title

Answer: A — Title reverts automatically to grantor

A) Correct — fee simple determinable. B) That is subject-to-condition-subsequent. C) No escheat. D) Title ends.

Joint tenants with right of survivorship; one dies. Under classic rule, decedent's share:

1. Passes automatically to surviving JT
2. Passes by intestacy to heirs
3. Property sold, proceeds split evenly
4. Survivor gets life estate, heirs remainder

Answer: A — Passes automatically to surviving JT

A) Correct — survivorship. B) That is TIC. C) No forced sale. D) No such conversion.

A 'freehold' estate refers to which of the following types of interests?

1. Only leasehold interests held under a lease agreement with a landlord
2. Estates of indefinite duration — fee simple absolute and life estates
3. Only cooperative ownership through shares in a corporation for co-ops
4. Only easement interests, whether appurtenant or in gross by type used

Answer: B — Estates of indefinite duration — fee simple absolute and life estates

A) Freehold is the opposite of leasehold. B) Correct — freehold = indefinite duration. C) Co-ops are not freeholds. D) Easements are not freeholds.

An owner died without a will and has no heirs. The property will:

Escheat to the state — the government's right to take ownership of property when there are no legal claimants.

What is a license in real estate?

A personal, revocable, non-assignable permission to use another's property. Example: a ticket to a concert. Can be revoked at any time and doesn't run with the land.

What is a title search?

An examination of public records to verify the seller's right to transfer ownership and identify any claims, liens, or encumbrances.

A buyer submits an offer on Monday. The seller counters on Tuesday. The buyer rejects the counter on Wednesday. Can the buyer now accept the original offer?

No — the seller's counteroffer terminated the buyer's original offer. The original offer no longer exists and cannot be accepted.