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Review: Chapters 01 thru 06

Total questions: 60

Worksheet time: 2hrs 59mins

Name
Class
Date
1.

This type of estate cannot pass by inheritance and reverts back to the grantor automatically and immediately at the death of the life tenant.

a)

fee simple estate

b)

fee simple condition subsequent estate

c)

conventional life estate

d)

pur autre vie life estate

2.

Which of the following liens is/are considered a "specific lien" on real estate?

a)

deed of trust

b)

mechanic's lien

c)

real estate taxes

d)

All of these liens are "specific." That means that they are tied to a specific parcel of property. General liens include judgments and income tax liens.

3.

Which of the following statements is/are correct regarding the Interstate Land Sales Full Disclosure Act?


I. If a development contains 25 or more lots, the developer must furnish prospective buyers with a property report.


II. The property report must be given to a prospective purchaser prior to a sales contract being signed.

a)

Only I

b)

Only II

c)

Both I and II

d)

Neither I or II

4.

Regarding the Interstate Land Sales Full Disclosure Act, the purchaser has a ___ day right of rescission.

a)

5

b)

7

c)

10

d)

30

5.

A rectangular-shaped parcel of land, which measures 400 feet by 600 feet, is divided into two equal lots by a creek that runs from the northeast corner to the southwest corner. What is the approximate acreage of each divided parcel?

a)

.55 acres

b)

2.75 acres

c)

3.47 acres

d)

5.51 acres

6.

Assume annual real estate taxes amount to $1,800 and have been paid in advance for the calendar year by the seller. If closing is set for September 15, which of the following is correct?

a)

credit seller $525; debit buyer $1,275

b)

credit seller $1,275; debit buyer $525

c)

credit buyer $525; debit seller $1,275

d)

credit seller $525; debit buyer $525

7.

Which of the following statements is/are true?


I. A freehold estate and a nonfreehold estate will never exist at the same time on the same property.


II. A life estate is a nonfreehold estate.

a)

I only

b)

II only

c)

Both I and II

d)

Neither I nor II

8.

A parcel could be utilized as both a freehold (ownership) and a non-freehold (less than ownership) if the owner of the property also decided to rent it.

a)

True

b)

False

9.

A life estate is a freehold interest. The life tenant is the owner of the property.

a)

True

b)

False

10.

Title to real property may be transferred by which of the following?

a)

bill of sale

b)

oral agreement

c)

ceremony of seizing

d)

laws of intestate succession

11.

Title to ___ property may be transferred by the laws of intestate succession.

a)

real

b)

personal

12.

Title to ___ property may be transferred by a bill of sale.

a)

real

b)

personal

13.

Which of the following statements is/are correct?


I. A "deed of gift" must be recorded within 3 years to be valid.


II. A deed that warrants only against defects or encumbrances that have occurred "by, through, or under the grantor" is a special warranty deed.

a)

I only

b)

II only

c)

Both I and II

d)

Neither I nor II

14.

Smith is interested in purchasing a warehouse for the storage of inventory from his business. If the building which he is considering purchasing is 30 feet high, 28 feet wide and 62 feet long, how many cubic feet of storage space will the building provide?

a)

52,080 cubic feet

b)

177,000 cubic feet

c)

18,000 cubic feet

d)

1,860 cubic feet

15.

Public land use controls include all of the following, EXCEPT:

a)

subdivision regulations

b)

environmental protection laws

c)

master plan specifications

d)

deed restrictions

16.

When an old service station is located in an area that has been rezoned for residential use only, the station may be permitted to continue to operate as a service station under a:


I. Legal nonconforming use

II. Variance

III. Illegal nonconforming use

a)

I only

b)

II only

c)

III only

d)

Both I and II

17.

A ___ is infromation which affects the seller's willingness to sell or a buyer's willingness to buy.

a)

material fact

b)

encumbrance

c)

recorded lien

d)

encroachment

18.

Which of the following would be considered a "material fact" by law in NC?


I. Recorded lien on the property


II. Information about a pending zoning change that would enhance the value of a seller's property even if the agent is a buyer's agent.

a)

I only

b)

II only

c)

Both I and II

d)

Neither I nor II

19.

Aunt Fran decides to sell her property to a church with a fee simple interest, but Aunt Fran reserved or excepted a conventional life estate. Which of the following statements is true regarding this transfer?

a)

The church is the life tenant and Aunt Fran has a reversionary interest.

b)

Aunt Fran is the life tenant and the church has a remainder interest.

c)

The church owns the property and Aunt Fran has established a non-freehold interest.

d)

This is best referred to as a life estate pur autre vie.

20.

The basic premise for controlling the use of land is to protect and promote the health, safety, welfare and morals of the general public. As imposed under the government's right to police power, zoning ordinances do NOT regulate:

a)

the use to which a property may be put

b)

the placement of buildings on the property

c)

the bulk and density of buildings

d)

minimum acceptable material and construction standards

21.

Joe, Moe and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend, Will. After the conveyance, Joe and Moe:

a)

become tenants in common

b)

continue to be joint tenants with Harry

c)

become joint tenants with Will

d)

remain joint tenants with Will becoming a tenant in common

22.

Land is sold to a church so long as the land is used only for religious purposes. What type of freehold estate is described?

a)

tenancy for years

b)

fee simple absolute

c)

conventional life estate

d)

defeasible fee

23.

Deed restrictions are a means by which:

a)

local zoning laws are enforced

b)

the planning commission controls developers

c)

municipalities enforce building restrictions

d)

grantors control the future use of the property

24.

Acceptable material and construction standards are usually regulated by what?

a)

building codes

b)

zoning codes

c)

developers

d)

state and municipal legislators

25.

Which of the following would terminate a Tenancy by the Entireties?

a)

Divorce

b)

Legal separation

c)

A partition action

d)

A unilateral sale of an interest in the property

26.

Which of the following items would be included in the bundle of rights of a land owner?


I. Mineral rights

II. Easements

III. The land

IV. The privilege or right to sell the land.

a)

III only

b)

I, II and III

c)

III and IV

d)

I, II, III and IV

27.

What type of ownership is an individual unit owner's parking space at a condominium complex?

a)

Proprietary lease of common areas.

b)

Limited common area with a fractional undivided interest as tenants in common.

c)

Amenity utilization of the common area.

d)

Joint tenancy with right of survivorship of the the common area.

28.

A developer owns 2 acres and plans to subdivide them into 6 individual lots. If the six lots are all equal in size and each one is 100 feet wide, what is the depth of the lots?

a)

145.20 feet

b)

189.60 feet

c)

249.50 feet

d)

329.25 feet

29.

What is true about eminent domain?

a)

Eminent domain is the process by which the government condemns land.

b)

The Department of Transportation is exempted from compensating land owners for critical road widening projects.

c)

Should the government condemn a rental property, the lease is automatically terminated.

d)

In order to establish eminent domain the government must meet the elements of adverse possession.

30.

A city evicts tenants of an apartment complex by the power of eminent domain because of a planned highway expansion. Does the city have to pay compensation and does the city have to let the tenants finish their lease terms.

a)

The city does not have to allow the tenants to finish their lease terms an because they are not the owner of the apartment building, the tenants have no right to compensation.

b)

The city would have to allow the tenants to complete their lease term and must pay them compensation.

c)

The city does not have to allow the tenants to complete their lease term, but the city will have to compensate the tenants.

d)

The city may never condemn an apartment building or other facility that is currently occupied.

31.

A neighbor regularly mows a vacant lot next door. After several years the neighbor erects a fence on the vacant lot. After several more years the neighbor wishes to claim adverse possession of the vacant lot. Can the neighbor claim adverse possession?

a)

No, his use was not open and notorious.

b)

No, because the neighbor has failed to pay vacant lot's property taxes.

c)

Yes, assuming the neighbor met the minimum number of years to claim adverse possession.

d)

Yes, because all the neighbor had to do was physically occupy the land.

32.

Which method of land measurement uses meridians and range lines?

a)

Government rectangular survey.

b)

Government metes and bounds.

c)

Government plat maps.

d)

Assessor's parcel numbers.

33.

What is the system of land measurement that uses stakes, markers and monuments?

a)

Government rectangular survey.

b)

Metes and bounds.

c)

Lot and block.

d)

Recorded plat.

34.

A developer requires all builders within the subdivision to build a certain standard home and also requires that no home may be built smaller than 4,000 square feet. What type of restriction has the developer created and how may it be enforced?

a)

Zoning, enforced through the zoning board.

b)

Building codes, enforced through state and city building councils.

c)

Building permits, enforced through the city or county in which the property is located.

d)

Private deed restrictions, enforced through a court of law.

35.

Two friends are interested in purchasing a piece of real estate as co-owners. What is the MOST likely way that they will hold title in North Carolina?

a)

Severalty.

b)

Tenancy by the entireties.

c)

Joint tenants.

d)

Tenants in common.

36.

A "Quiet Title Action" can best be described as a lawsuit which is:

a)

filed to establish ownership or interests of real property and/or to remove a cloud on title.

b)

used to evict a disruptive tenant.

c)

used by a buyer to force a seller to sell the property because the seller is in breach

d)

used by a seller to convey title to a buyer through a quit claim deed.

37.

Which of the following adds land due to natural changes along non-navigable streams?

a)

Reliction

b)

Avulsion

c)

Accretion

d)

Erosion

38.

Which of the following would be considered emblements?

a)

Trees and bushes

b)

Oil and minerals

c)

Wheat and corn

d)

Water and air

39.

Liens, easements, mechanic's liens and restrictive covenants are all examples of:

a)

emblements

b)

estovers

c)

encumbrances

d)

estates

40.

The condemnation of private property for public use is exercised under which government right?

a)

Taxation

b)

Escheat

c)

Manifest Destiny

d)

Eminent Domain

41.

The recording of a deed:

a)

is all that is required to transfer the title to real estate.

b)

gives constructive notice of the ownership of real property.

c)

insures the interest in a parcel of real estate.

d)

warrants the title to real property.

42.

recorded deeds are

a)

valid

b)

enforceable

c)

actual

d)

required

43.

Which of the following is less than a freehold estate?

a)

Defeasible fee estate

b)

Leasehold estate

c)

Life estate

d)

Fee simple absolute estate

44.

What type of deed is normally used to convey real estate in a typical sale of residential real estate?

a)

General warranty deed

b)

Bargain and sale deed

c)

Special warranty deed

d)

Quit claim deed

45.

John and Marsha each owned property prior to their marriage. The individual parcels that they owned were held in severalty. Once John and Marsha got married what is the status of the title to the property?

a)

They will automatically hold the property as tenants by the entireties.

b)

They will hold title to the property as tenants in common.

c)

The property will remain in their individual names as property held in severalty.

d)

They will hold title to the property as joint tenants with a right of survivorship.

46.

What is the size of a section of real estate?

a)

640 acres

b)

6 miles square

c)

43,560 square feet

d)

460 acres

47.

What is the size of a township?

a)

640 acres

b)

6 miles square

c)

43,560 square feet

d)

460 acres

48.

How many acres are contained in the following legal description: the SW1/4 of the NE 1/4 of the NW 1/4 and the SW 1/2 of the NW 1/4?

a)

70 Acres

b)

90 Acres

c)

120 Acres

d)

160 Acres

49.

What is the amount of the excise taxes charged to a seller who sells a property for $143,250?

a)

$287

b)

$242

c)

$300

d)

$378

50.

The owner of a property wants to build a garage which is in violation of the existing setback requirements for the parcel of real estate. In order to build the garage and eliminate issues with the setback requirements, the homeowner will need to obtain:

a)

an easement from their neighbor.

b)

a license issuing them permission.

c)

approval from the local HOA.

d)

a variance.

51.

Subdivision regulations in North Carolina are administered and enforced by:

a)

the state Department of Transportation.

b)

the developer and the local homeowner's association.

c)

the city and county local municipalities.

d)

through the state office of Code Enforcement.

52.

With regard to road disclosures in North Carolina:

a)

a public street is guaranteed to be approved and maintained by NCDOT.

b)

a licensee must disclose whether the streets are public or private and who has the responsibility for maintaining the street.

c)

the buyer representative and the listing agent are not required to make street disclosures. Such disclosures are the seller's responsibility.

d)

all public streets are maintained by NCDOT or our automatically maintained by the municipality where the streets are located.

53.

Jason, a buyer, is purchasing a property and is concerned about the location of a fence and the exact size of the parcel. He expresses his concerns about these items to his buyer representative. What is the BEST response of the licensee who is representing Jason?

a)

Tell him that title insurance provides coverage for such defects and issues.

b)

Advise Jason that when the property is appraised, the appraiser will verify these items.

c)

Advise Jason that if he is concerned about encroachments and property lines he should obtain a survey.

d)

Reassure Jason that the closing attorney will provide him with a full opinion letter that will address these issues.

54.

Which of the following is an example of an encumbrance?

a)

A lien which has been satisfied and paid in full.

b)

A lis pendens filed at the register of deeds.

c)

A driveway that is shared by two neighbors.

d)

A fence that is extending two feet over the property line.

55.

The Marketable Title Act of NC is best summarized by which of the following statements?

a)

The attorney shall disburse no funds from closing until the buyer's deed has been properly recorded.

b)

A deed is considered to be of good quality if an unbroken chain of title can be documented for the past 30 years.

c)

A fixture always remains personal property until it has been paid for in full.

d)

The seller is assuring that they have good marketable title and the buyer, in turn, will have good marketable title.

56.

Which of the following debts or liens would be subject to the Homestead Exemption Act of NC?

a)

Past due taxes which have not been paid.

b)

Liens of judgment creditors.

c)

A first deed of trust on which the lender is attempting to foreclose.

d)

A mechanic's lien which has been appropriately recorded.

57.

When do real property taxes become a lien in North Carolina?

a)

September 1st

b)

January 1st

c)

July 1st

d)

Once they are past due

58.

Karen purchased a property and has a written and recorded document that gives her permanent ingress and egress to her parcel across an adjacent property. Which of the following statements is correct regarding Karen's situation?

a)

She owns the servient parcel and the parcel over which the easement runs is the dominant parcel.

b)

Karen has an easement in gross which is an appurtenance and travels with the property.

c)

She owns the dominant parcel and the adjacent property is the servient parcel.

d)

Karen has a license which will end when her term of ownership terminates.

59.

The North Carolina Real Estate Commission consists of nine members, three of which must have a license and two which must be members of the public and not licensed. Which of the following is also true regarding the NCREC?

a)

Seven of the NC Real Estate commission members are appointed by the Governor, one is appointed by the house and one is appointed by the senate.

b)

The NC Real Estate Commission will not hear commission disputes between the agent and their client, but they will assist in the resolution of fee disputes between real estate licensees

c)

The NC Real Estate Commission is led by a commission chair that is also appointed by the Governor.

d)

The terms of the NC Real Estate Commission are life-long appointments.

60.

The terms of the real estate Commissioners are for ___ years.

a)

two

b)

three

c)

five

d)

four