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WorksheetsNC Real Estate Exam - Chapter 2 & 4
Total questions: 122
Worksheet time: 4hrs 4mins
Personal property attached to real property is prevented from becoming real property by which of the following?
value
an appurtenance
security agreement & financing statement
mineral rights
Which of the following is a right in the property of another that results from ownership in a particular parcel of real estate?
easement in gross
appurtenant easement
license
condemnation
Which of the following is (are) correct?
An easement provides a nonpossessory interest in land.
The land on which an easement exists is the dominant tenement.
The land that benefits from an easement is the servient tenement.
All of the above.
Easements may be created in all of the following EXCEPT:
condemnation
dedication
prescription
assessment
An easement is terminated:
when the purpose for which the easement was created ceases to exist.
when the adjoining dominant & servient tenements are combines into one tract of land.
by abandonment of the easement by the dominant owner.
all of the above.
If a property owner gives a specific person permission to cross his property, this is a(n):
easement in gross
easement appurtenant
lease
encroachment
The creation of an easement by condemnation results from the exercise of which of the following?
prescription
eminent domain
dedication
implication
A fee simple determinable:
is an example of a nonfreehold estate.
typically stipulates the conveyance is 'as long as' it is used for a particular purpose.
is an example of pur autre vie (for the life of another).
is an example of freehold rights until the original owner's rights are determined to be invalid.
If a widow inherits an estate by will granting her the right of use and possession of a parcel of land for the rest of her life, with the provision that the estate will go to her children in fee simple upon her death, she has received:
an inheritable freehold estate
a life estate with remainder
a life estate pur autre vie
none of the above
The highest and best form of estate in real property is which of the following?
appurtenant easement
defeasible fee
life estate in reversion
fee simple absolute
Estate for years, estates from year to year, estates at will, and estates by sufferance:
are leasehold estates
create a legal relationship between the parties of landlord and tenant
are nonfreehold estates
all of the above
Title held in the name of a corportation with many stockholders is considered to be held as:
severalty
joint tenancy
tenancy in common
tenancy by entireties
Which of the following types of ownership requires unity of interest, title, time and possession?
cooperative
tenancy in common
joint tenancy
condominium
None of the following includes the right of survivor-ship in North Carolina EXCEPT:
tenancy in common
tenancy by the entirety
life estate
joint tenancy
The purchase of a condominium unit receives title to the land on which the condominium is situated as a:
tenant by the entirety
tenant in common
joint tenant
tenant at sufferance
The purchaser of a condominium time-share:
takes title for a specified time period (or periods) each calendar year
may not convey title to anyone else
has a 30-day right to rescind the purchase contract
all of the above
In the cooperative form of ownership:
the owner owns his unit in severalty
each owner owns an interest in the common areas
the owners own the buildings as tenants in common
none of the above
A tenant in common:
may sell her interest in the property
may pledge the entire property as a security for a mortgaged loan
may not bring legal action to partition the property
has the right of survivor-ship in the property
Ownership as tenants by the entirety includes which of the following?
the right of one owner to convey title to his share of ownership without the participation of the other owner
the rights of surviorship
ownership of an unequal interest in the property with another
conversion to ownership as joint tenants if the owners are divorced
An encumbrance always:
has a positive effect on property value
has a negative effect on property value
is a lien
none of the above
All of the following are examples of specific liens EXCEPT:
income tax liens
mortgage liens
mechanic's liens
real property tax liens
Which of the following statements regarding judgment liens is correct?
Judgement liens will not attach to property to which title is held by a husband and wife as tenants by the entirety unless both participated in the creation of the debt and both are named as defendants in the judgements.
Judgement liens have a priority over the real property tax assessment.
Judgement liens have a priority over all liens other than property tax liens.
None of the above.
Liens, easements, encroachments, and restrictive covenants are examples of which of the following?
emblements
estovers
estates
encumbrances
Which of the following is an estate that automatically renews itself for consecutive periods?
estate at will
life estate
estate from year to year
estate for years
New construction time-share properties in North Carolina require:
the developer to have a real estate license before sales are made
project registration with the Commission before marketing the units for sale
all time-share salespersons must have a time-share license in NC
the purchaser to be given a right of rescission for 3 days from purchase.
Time-share property in North Carolina:
must be for a residential use
is considered personal property
is the right to occupy a property during five or more separated time periods over five or more years
allows a bona-fide employee of the developer to sell the units without a real estate license
An example of an appurtenant easement would be:
city water & sewer easement
easement for a neighbor friend to cross a nearby property to access the beach
an easement for the adjoining property to have a driveway over the subject property
a railroad right-of-way easement
All of the following involve ownership of real property EXCEPT:
cooperatives
condominiums
townhouses
time-shares
All of the following are real property EXCEPT:
standing timber
underground minerals
readily movable items
naturally growing vegetation
The item(s) included in a real estate is (are):
trees
fences
built-in-microwave
all of the above
A manufactured home that is towed to the land and placed upon a permanent foundation but still has the wheels, axles, and towing hitch attached will be considered:
personal property
real property
an improvement
a fixture
The concept by which land would increase automatically along a river or stream is known as:
accretion
littoral rights
avulsion
reliction
Which of the following is generally considered real property?
emblements
trade fixtures
a shrub planted in a decorative pot
a perennial shrub planted in the backyard
The phrase "bundle of legal rights":
is part of the definition of real property
is another name for a legal description
refers to the legal documents used in real estate transactions
refers to the tenant's rights in a lease
A trade fixture is considered:
a fixture
an easement
personalty
a license
Real property can become personal property by:
severance
purchase
hypothecation
attachment
A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and electrical outlet covers and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?
none of the items
the draperies and blinds
the hand-painted light switches and electrical outlet covers
the draperies
A business owner rents an empty building to use an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions:
are considered permanent improvements to the property
become the landlord's property once attached to the building
can be legally removed by the tenant at the termination of the lease
can only be removed by the tenant with the landlord's permission
The owner of a house wants to fence the yard for a dog. When the fence is erected, the fencing materials are converted to real estate by:
severance
annexation
immobility
indestructibility
Which of the following has an indefinite ownership period?
fee simple estate
life estate
estate for years
estate at will
Oil, gas and other subsurface rights are generally considered to be:
separate and apart from the rights or interest in the real estate
an item which can never be separated from the real estate and must transfer with the property
items of personalty which the owner can either include or exclude from the transfer
be part of the real estate and it's bundle of rights and automatically transfer to a subsequent owner unless specifically reserved or excepted in the deed
A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "so long as it is used for medical purposes." After the completion of the gift, the hospital will hold a:
pur autre vie estate
fee simple absolute estate
defeasible fee
fee simple to a condition subsequent estate
The rights of the owner of a property located along the banks of a small stream are called:
littoral rights
subjacent rights
riparian rights
hereditaments
A deed conveyed ownership to a grantee "so long as the existing building on the property is not destroyed." Following the transfer, the original grantor has what type of interest?
life estate
ongoing ownership in the property that lasts as long as the condition
fee simple estate
reversionary estate
A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an:
estate in reversion
estate in remainder
estate pur autre vie
estate for the life of another
A person who acquired ownership that can be inherited, with the provision "that the land must always be used for recreational purposes," has:
a fee simple absolute estate
a defeasible fee
a fee simple to a condition subsequent estate
an estate that cannot be sold
A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died. The sister now owns the building:
as a joint tenant with right of survivorship with her brother's heirs
in severalty
as a tenant in common with her brother's heirs
as a life tenant with her brother's heirs having remainder interests
A person currently has the legal right to occupy and use a certain residential structure. The interest in the property could be all of the following, EXCEPT:
fee simple
remainder
leasehold
life estate
Co-owners of a fee simple interest in a small office building are neither related to nor a creditor to each other. One owner dies intestate. The surviving owner would become the sole owner of the property under which of the following rights?
adverse possession
reversionary interest
suvivorship
foreclosure
Three joint tenants with rights of survivorship own a parcel of land. One owner sells his interest to a long-time friend. After the conveyance, the remaining original owners:
become tenants in common with each other
become tenants in common with each other and the newest owner
become joint tenants with the newest owner
remain joint tenants with each other
One of two owners holds an undivided 60% interest and the other holds an undivided 40% interest. The two owners probably hold their interest as:
cooperative owners
tenants by the entireties
community property owners
tenants in common
The owner of a condominium unit learns that a neighbor has failed to pay his condominium association dues. If the neighbor does NOT pay the dues:
a lien can be filed against the condominium complex
a lien can be filed against the neighbor's unit
a lien can only be filed against the common areas of the condominium
the taxing authority can order the condominium be dissolved
In order to create a joint tenancy relationship in the ownership of real estate, there must be unities of:
grantees, ownership, claim of right and possession
title, interest, encumbrance and survivorship
time, title, interest and possession
ownership, possession, heirs and title
The severalty owner of a parcel of land sells it. The buyer insists that the owner's wife also sign the deed. The purpose of obtaining the wife's signature is to:
terminate any rights the wife may have in the property
defeat any curtsey rights
provide evidence that the owner is married
subordinate the wife's signature to the buyer
Which item(s) listed below would be considered part of the "total circumstances test" to determine whether or not an item is a fixture?
I. The value
II. The size
I only
II only
Both I and II
Neither I nor II
Chrissy owns property that borders a large, navigable lake that has tides. Her property ends:
at the mean high-water mark of the lake
at the lake border
at the center of the lake
five feet before the lake
In North Carolina, what is the rescission period for the purchase of a new condominium?
3 calendar days
5 calendar days
7 calendar days
10 calendar days
In North Carolina, what is the rescission period for the purchase of a new timeshare?
5 calendar days
5 business days
7 calendar days
7 business days
Jack is not married and buys a vacant lot as his sole and separate property. Jack later married Jill and they buy a house together. How is the ownership of the vacant lot now classified?
Jack and Jill own the lot as tenancy by the entirety.
Jack and Jill own the lot as joint tenants.
Jack owns the lot in severalty.
They both own the lot and house as tenants in common.
With regard to a tenancy in common, which of the following is true?
l. Each tenant in common has an equal right to possession and use of the land.
ll. The interest of all of the tenants in common must be equal.
I only
II only
Both I and II
Neither I nor II
Vonda Lee and William purchased a home together in 2003 with the deed simply listing both of them as “grantees” without specifying how they were to hold title. They married each other in early 2004. How do they now likely hold title to the house purchased in 2003 if they have not made any other adjustments to their deed?
tenancy by the entirety
tenancy in severalty
joint tenancy
tenancy in common
When two people who own property under tenancy by the entirety sign a formal separation agreement, which of the following statements is correct?
The ownership changes immediately to tenancy in common.
The ownership changes immediately to joint tenancy.
The ownership must be determined by a court of law.
There is no change in the form of ownership at this time.
Which of the following statement(s) is/are true regarding timeshares in NC?
I. The NC Real Estate Commission can fine a timeshare broker for violations of the NC Timeshare Act.
II. If there are violations of the NC Timeshare Act, the fine per violation is $1,000.
I only
II only
Both I and II
Neither I nor II
Which of the following statements is true?
I. A life estate is a freehold estate.
II. It is possible to have a freehold estate and a non-freehold estate on the same property at the same time.
I only
II only
Both I and II
Neither I nor II
The right to occupy a property for five or more periods of time involving five or more years is considered a:
l. Timeshare
ll. Interest in real property
I only
II only
Both I and II
Neither I nor II
Five days after signing a contract to purchase a new timeshare, the buyer backs out of the deal. How long does the developer have to refund the purchaser’s money?
He has no obligation to return it, as there is a contract.
Thirty days from the date of purchase contract.
Thirty days from the date of cancellation.
Thirty days from the ten-day period in which these monies had to remain in the trust account.
Which of the following would be considered real property?
I. Electrical switch plate covers
II. Gas logs attached to a fireplace
I only
II only
Both I and II
Neither I nor II
Which of the following best defines the ownership in a condominium?
divided fee simple interest in the unit and an undivided tenant in common interest in the common areas
a divided interest in the unit and a divided interest in the common areas
shared ownership rights of both the unit and the common area as tenants in common
separate interest in the unit with the association holding title to the common area
Jason's property is adjacent to a navigable river in North Carolina and Jason wants to sell his property. Which of the following statements is true?
Jason can restrict the public from using that portion of the river that is next to his property
An owner can sell the property and retain his rights to access the river once it is sold
Jason's land ends at the center of the waterway
If Jason obtains proper permits and builds a dock on the river, the dock will automatically become owned by the public
A homeowner objected when a local utility company dug up his garden to install a natural gas line. The company claimed it had a valid easement supported by the county records. The homeowner claimed the easement was not valid because he was unaware of its existence. The easement was:
a valid easement in gross even though the owner did not know about it
a valid appurtenant easement owned by the utility company
not valid because the owner did not authorize the easement
not valid because the owner was not informed of its existence when he purchased the property
The owner of two acres of land sold one acre but retained an appurtenant easement over that land for ingress and egress to his retained lot. The retained lot:
is the dominant tenement
serves as the servient tenement
can be cleared of the easement when it is sold to a third party
is subject to an easement in gross
Title to real estate passes when a valid deed is:
signed and recorded
signed, delivered and accepted
filed and microfilmed
executed and mailed
Title to real estate inherited from a person who died testate is referred to as a:
legacy
bequest
devise
descent
Which of the following is an essential element of a valid North Carolina deed?
a seal
recordation
the signature of the grantee
words of conveyance
When the grantor does NOT wish to convey certain property rights:
exceptions must be noted in a separate document
the deed must convey the property with all rights intact
exceptions may be noted in the deed of conveyance
the grantor must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor
A trespasser built a log cabin in a remote area of a national park and occupied the structure for more than 25 years. That person will never be able to claim the property under adverse possession statutes because:
the possession was not notorious
the possession was not open
the property was not privately owned
the property was not properly fenced
The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that:
the seller owned the property
there are no encumbrances against the property
the buyer now owns the property subject to certain claims of the seller
any and all of the seller's interests in the property belong to the buyer
Which of the following statements about North Carolina deeds is correct?
A general warranty deed is the best way for the buyer to receive title.
A special warranty deed gives the seller the greatest degree of liability.
A bargain and sale deed is very much like the special warranty deed.
A gift deed must be recorded within 30 days to remain valid.
A gift deed must be recorded within 30 days to remain valid.
A grantor makes additional warranties beyond those given in a general warranty deed.
The grantor retains an ownership interest in the property.
The grantor is warranting that no undisclosed encumbrances exist against the property.
The grantor's warranties are limited to the time the grantor owned the property.
Regarding title recordation, which of the following statement(s) is/are true?
l. Physically taking possession of the property is constructive notice.
ll. Public notice of recording documents is actual notice.
l only
II only
Both I & II
Neither I nor II
Which of the following would be considered an essential element of a valid deed in North Carolina?
I. Acknowledgement
II. Witnessed
I only
II only
Both I and II
Neither I nor II
All of the following may be discovered in a title search, EXCEPT:
the legal description of the property
liens and judgments
easements
encroachments
Which of the following is TRUE?
The grantor under a special warranty deed warrants that the grantee's title will be defended and protected against any claims whatsoever.
The grantor under a general warranty deed promises that the grantee's title will be defended and protected only against claims resulting from the grantor's ownership.
The grantor under a quitclaim deed only conveys any interest the grantor may have in the property.
A minor will convey absolute ownership interest in a property as long as the signature is obtained in the presence of a parent.
The recording of a deed:
is required in order to fully transfer the title of the real estate
makes the deed enforceable
ensures the grantee's interest in a parcel of real estate
warrants the grantee's title to real property
The recordation of a general warranty deed:
guarantees ownership
protects the interests of the grantee
prevents claims of parties in possession
provides defense against adverse possession
Don, a real estate broker, has agreed to prepare a deed for the seller in a transaction in which he is the listing agent. If he does not charge the seller a separate fee for this service:
He has done nothing illegal since he did not charge a separate fee for his service.
He may have his license suspended or revoked by the North Carolina Real Estate Commission.
He has not violated any rules or laws as long as he obtains consent from both parties prior to engaging in this act.
There is no violation as long as he has a broker’s license.
When the seller of the property gives a deed to a buyer “by, through, or during” the current ownership period of time, what type of deed is given?
General warranty deed
Special warranty deed
Quitclaim deed
Trustees deed
Under the North Carolina Conner Act, all the following documents must be recorded to be enforceable against third parties, EXCEPT:
an easement
a deed of trust
a purchase contract
a set of restrictive covenants
Determine the excise tax to be paid on a house that sells for $268,210 if the buyer makes a $25,000 down payment and the seller takes back a second mortgage for $50,000?
$536.42
$537
$533
$538
All of the following are methods of title assurance EXCEPT:
color of title
title insurance
covenants of title in the deed
title examination by an attorney
Voluntary alienation during life occurs only in which of the following ways?
will
foreclosure
deed delivery
devise
Essential elements of a valid deed include all of the following EXCEPT:
acknowledgment
writing
competent grantor
execution by grantor
The purpose of a deed's being acknowledged is to:
make the deed valid
make the deed eligible for delivery
make the deed eligible for recording
identify the grantee with certainty
Which of the following is the type of notice provided by recording?
actual
reasonable
protective
constructive
Of the following types of deeds, which provides the grantee with the greatest assurance of title?
special warranty
deed of confirmation
grant deed
general warranty
Which of the following covenants assures the grantee that the grantor has the legal capacity to transfer the title?
covenant of quiet enjoyment
covenant of right to convey
covenant of seisin
covenant of warranty
Which of the following types of deeds is typically used where one is releasing any interest he/she may have in a parcel of real estate?
quitclaim deed
special warranty deeds
grant deeds
general warranty deeds
A general warranty deed and a quitclaim deed are equally suitable for which of the following?
judicial deed
deed of confirmation
official deed
deed of gift
A grantor left a deed for the grantee to find after the grantor's death. The result was to:
convey the title during the grantor's life
convey the title after the grantor's life
have the title automatically escheat to the state
none of the above
The type of deed used to remove a mortgage lien when the debt is satisfied is a:
deed of surrender
grant deed
deed of release
special warranty deed
If the covenants in a general warranty deed are broken, the grantee's remedy is which of the following?
Sue the grantor for damages in the amount of the loss up to the amount of the purchase price only.
Require the grantor to execute a deed of confirmation only.
Both sue the grantor for damages in the amount of the loss up to the amount of the purchase price and require the grantor to execute a deed of confirmation.
none of the above
The covenants in a general warranty deed will protect the grantee:
against the lawful claims of "all persons whomsoever."
only against the lawful claims arising from the grantor's period of ownership
only if the grantee acquires a valid title insurance policy
never; the general warranty deed provides no protection from the grantor to the grantee
A claim of title by adverse possession may be defeated by the property owner by which of the following?
permission
confirmation
will
condemnation
The type of deed that guarantees the title only against defects that were created during the grantor's ownership is which of the following?
general warranty
special warranty
surrender
release
Which of the following statements regarding a title examination is correct?
The purpose of the title examination is to reassure the purchaser the seller had good an marketable title.
To determine if there are any items, recorded or not, that might negatively impact the seller's title.
The purpose is to determine the quality of title.
The title examination only includes items related to title and does not typically include liens or property tax matters.
The successive conveyances of a title are called:
releases
remises
links in the chain of title
abstracts of title
A title insurance policy can be written to protect all of the following EXCEPT:
owner
seller
lessee
mortgage
With reference to the metes and bounds property description, which of the following is correct?
It is a description by distances and directions.
It is the primary method of description used in the original 13 colonies.
It must have a point of beginning.
All of the above.
Which of the following legal descriptions would not be considered adequate for conveyance in a deed?
reference to metes and bounds
reference to a previously recorded deed
informal reference
reference to plat book and page
Of the following types of deeds, which provides the grantor with the greatest liability?
special warranty
deed of confirmation
grant deed
general warranty deed
In a metes and bounds description, the description must close; that is, it must do which of the following?
end at the northeast corner of property
end at the point of beginning
end at a known government marker
none of the above
Lucy Landlord owns a house that she leases to Tim Tenant. Which of the following estates in real property exists during the time of Tim Tenant's lease?
leasehold estate
freehold estate
neither a leasehold nor a freehold
both a leasehold and a freehold
Which of the following is an adequate property description?
123 Smith Road, North Carolina
the old Martin place
Book 1968, page 924, Halifax County, North Carolina
none of the above
A __________ property description has a point of beginning.
government rectangular system
legal
points and calls
metes and bounds
If a person dies intestate and has no heirs, his property will _____________ to the state.
devise
escheat
demise
grant
A home is sold for $103,250. What is the amount of exercise tax to be paid by the seller?
$206
$207
$103
$104
Two adjoining lots contain the same front footage. Lot A is 900 feet deep and Lot B is 780 feet deep. If Lot A contains 3.45 acres, how many acres are in Lot B? (Round width to whole numbers.)
2.99 acres
3.98 acres
5.56 acres
16.11 acres
A tract of land measuring 165 wide, 350 deep recently sold for $138,600. What is its price per front foot? (Round to the nearest whole dollar.)
$0.41
$269
$369
$840
Carla recently purchased a tract containing 6.48 acres for $79,035. What would be the selling price of a 50 x 225 foot section of this land if she sells it for the same cost per square foot that she had originally paid for it? (Round answer to whole dollar.)
$3,150
$6,300
$11,250
$40,178
A tract of land measuring 750' x 825' is divided into two tracts by a stream that run diagonally though the property. How many acres are in each portion of the property?
14.20 acres
10.65 acres
7.10 acres
3.55 acres
A house was recently sold for $329,560. How much is due for the revenue stamps in this transaction?
$660
$330
$659
$329
A buyer recently purchased a lot containing .3817 acres. How many square feet does this lot contain?
24,275
21,875
17,825
16,627
