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WorksheetsNC Test Prep Unit I - NC Real Estate Licensure (S)
Total questions: 58
Worksheet time: 32mins
Which of the following would be defined as real estate as opposed to real property?
Wells, driveways, and signs on a parcel of land.
Mobile homes temporarily parked on a parcel of land.
Timber that has been cut and is lying on a parcel of land.
Business equipment an owner or tenant has placed on a parcel of land.
Which of the following would be considered a property improvement?
An alteration to land to make it more useful.
An increase in the value of a property.
A chicken coop permanently attached to land.
A parcel of land that has passed a percolation test.
Which of the following best describes the physical boundaries of land?
The surface of the earth and infinite space above the surface.
The center of the earth and infinite space above the earth.
The surface of the earth and all water and minerals on or below the surface to the center of the earth.
The surface of the earth and the air rights above the surface to the point defined by local zoning.
The "bundle of rights" refers to a set of rights
enjoyed by the owner of a property.
that is synonymous with the Bill of Rights.
guaranteed to citizens by the Statute of Rights.
specified in a deed or land contract.
Which of the following best describes the legal concept of personal property?
Any item which is acquired in a fee simple sale transaction.
Any item of property that is not definable as real property.
Any movable property owned by an individual, partnership, or corporation.
Any item that is not a natural item affixed to the earth.
The right to encumber a property means that the owner can
sell the property to an encumbered party.
pledge the property as collateral for debt.
lease the property.
assign the bundle of rights to another.
A property owner leases 60 acres of agricultural land for a renewable period of 5 years. In the context of real estate rights, this lease represents a(n)
transfer of a portion of the bundle of rights.
encroachment on the bundle of rights.
conveyance of the complete bundle of rights.
encumbrance of the tenant’s rights.
A homeowner is very upset over a drone that a neighbor flies over his house. He takes his case to court to end this possible violation of rights. Does he have a case, and on what basis?
No. The neighbor is not physically on his property.
No. The drone is in the air, so he cannot exercise any surface rights.
Yes. The owner has the right to stop encroachments.
Yes. The drones infringe on his air rights.
Littoral rights apply to which of the following?
Boatable ponds entirely contained within the boundaries of an owner's property.
Streams and rivers.
Navigable lakes, seas, and oceans.
Navigable streams and rivers.
A retired couple has just bought a retirement home with a pier on a large lake. In this case the retirees' water rights extend to
the high water mark of the body of water at the shoreline.
the low water mark of the body of water at the shoreline.
the center of the lake.
the end of the pier.
A waterfront homeowner has just died. What will become of the water rights the owner enjoyed while living in the home?
They revert to the state when the property is sold.
They are extinguished.
They are a personal right belonging to an individual owner, not attaching to the real property.
They transfer with the property when the property is sold.
Riparian rights concern which of the following bodies of water?
Rivers
Lakes
Which of the following best describes a "fixture?"
Any item of personal property positioned within the boundaries of a parcel of real estate.
An item of personal property that has been converted to real property.
An item of real property temporarily placed on land for the purpose of conducting a business.
An item of personal property that has been left in one location for a period of six months.
An item may be considered personal property as opposed to real property provided that
the owner intended to remove it after a period of time.
it can be removed without altering the appearance of the structure.
it is unnecessary to the physical integrity of the structure.
the owner installed it at some time after acquiring the real property.
Two people own a house, each having an undivided equal interest. Which of the following best describes what each party owns?
Fifty percent of the physical house and the land it rests on.
One hundred percent of the home and the land.
Fifty percent of the estate consisting of the indivisible whole of the real property.
Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.
A real property interest that includes the right to possess is considered
an estate in land.
a leasehold estate.
a fee simple estate.
the bundle of rights.
The right to control land usage by zoning and eminent domain is an example of
a public interest.
a police interest.
an encumbrance.
an estate in law.
If the duration of an owner's rights in an estate is not determinable, the owner has
a tenancy at sufferance.
a leased fee simple estate.
a freehold estate.
a leasehold estate.
The distinguishing feature of a leasehold estate is
ownership of an interest by a tenant.
temporary ownership of the full bundle of rights in a property.
unlimited ownership of one right in the bundle of rights in a property.
that the estate is limited by a lease term.
A landowner conveys a parcel of property with the provision that the land cannot be developed for retail purposes. The new owner immediately begins to develop a retail shopping outlet, the grantor finds out and takes the property back. What kind of estate did this landowner convey?
Fee simple absolute.
Life estate with reversion.
Life estate with condition subsequent.
Fee simple defeasible.
Ned grants his sister Alice an estate for as long as she lives. Her descendants, however, cannot inherit the estate. What kind of estate is it?
An estate pur autre vie.
An estate for years.
An ordinary life estate.
A legal life estate.
Homestead estates are examples of
a conventional life estate.
a legal life estate.
an estate created by an owner's agreement.
a fee simple absolute.
Louis owned a boat and a house before marrying Barbara. While she was single, Barbara owned a new car. The two got married and bought a second home. As a wedding present, Barbara’s father bought Louis a motorcycle. Under the law of community property, what property can Louis sell without his wife’s consent or signature?
Which of the following items are included in the lease?
The boat and house.
The boat, house, and motorcycle.
The second home and the motorcycle.
The boat and motorcycle.
Katelyn rents an apartment for one year. What rights has she acquired under the leasehold?
The right to exclude everyone from the premises.
The right to encumber the fee interest.
The right to sell the premises.
The right to possess and use the premises.
An estate from period-to-period will continue as long as
the tenant makes, and landlord accepts, regular rent payments.
the term specified in the lease.
the period is less than a year.
the landlord has not sold the property.
An estate at will
cannot be terminated.
is terminated only if so stated in the lessee's last will and testament.
terminates on the death of lessor or lessee.
terminates on the date specified in the lease agreement.
A tenant continues to occupy an apartment after lease expiration without the consent of the landlord. This type of estate is called
an estate at sufferance.
a holdover estate.
a canceled leasehold.
a hostile leasehold.
A tenant without a lease has been sending the landlord monthly rent checks, and the landlord continues to accept the payments. What kind of leasehold estate exists?
Estate for years.
Estate from period to period.
Estate at will.
Estate at sufferance.
A fee or life estate is held by an individual. This form of estate is referred to as a(an)
tenancy in severalty.
tenancy by the entireties.
absolute fee simple.
legal fee simple.
Six people have identical rights in a property and enjoy an indivisible interest. However any of the owners may sell or transfer his/her interest without consent of the others. This form of ownership is a
joint tenancy.
homestead ownership.
tenancy in common.
estate in severalty.
The "four unities" required to create a joint tenancy include which of the following conditions?
Parties must acquire respective interests at the same time.
Parties must be residents of the same state at the time of acquiring the interest.
Parties must be family members.
Parties must have joint financial responsibility.
Unlike tenants in common, joint tenants
own distinct portions of the physical property.
cannot will their interest to a party outside the tenancy.
may own unequal shares of the property.
cannot encumber their interest to outside parties.
Which of the following life estates is created by operation of law rather than by the owner?
Conventional life estate.
Ordinary life estate.
Legal life estate.
Community property life estate.
Which of the following is true of a homestead?
A homestead interest cannot be conveyed by one spouse.
A homestead interest cannot be passed to the children of the head of household.
A homestead interest is a form of conventional life estate.
A homestead is a primary or secondary residence occupied by a family.
True
False
A tenant in common can
sell or transfer his interest without the consent of the other tenants in common.
use his or her interest in the estate to encumber the entire estate.
sell, encumber or transfer his or her interest only to the other tenants in common.
sell, encumber or transfer his or her interest only with the consent of all the other tenants in common.
Which of the following would be considered community property?
Property acquired before marriage
A motorcycle bought after the marriage with separate property funds
Income derived from community property
A mother’s heirloom wedding ring gifted to the wife after her wedding
When real property is held in a land trust, who controls the property?
The trustor
The trustee
The beneficiary
The mortgagee
In a community property state, John marries Patricia. Prior to the marriage John owned an SUV. During the marriage, John bought a Buick, John and Patricia bought a second property with money earned from Patricia's job, and each individual received a motorcycle from Patricia's uncle as a gift. What property is community property in this marriage?
The SUV, the Buick, and the second property.
The SUV, the Buick, the second property, and the motorcycles.
The Buick and the second property.
The Buick, the second property, and the motorcycles.
Which of the following is true of a cooperative?
A cooperative may hold an owner liable for the unpaid operating expenses of other tenants.
The owners have a fee simple interest in the airspace of their respective apartments.
Owners may sublease their apartments even if they sell their stock in the cooperative.
Which of the following is true of a tenancy in common?
The co-owners must be related.
The owners enjoy an indivisible interest.
The tenants must acquire their interests at the same time.
The tenants must pay equal amounts for their interest in the estate.
Carissa and Robert acquire a condominium as tenants in common. In this circumstance, Carissa can
sell her interest to a third party without the consent of Robert.
use her interest in the estate to mortgage the entire estate.
sell her interest only to Robert.
sell encumber or transfer her interest only with the consent of Robert.
When a tenant in common dies, what happens to the tenant's interest in the estate?
It is divided equally among the surviving tenants in common.
The surviving tenants must buy the interest from the deceased tenant's heirs or sell their interests to the heirs.
It becomes a joint tenancy.
It passes by probate to the deceased tenant's heirs.
Which of the following is true of a joint tenancy?
The tenants can determine the size of the share owned by each tenant.
The size of the tenant's shares is determined by the amount of equity each has invested in the property.
The tenants have an equal and indivisible ownership interest.
There can be no more than two co-owners, and each has a fifty percent interest.
In contrast to a tenancy in common, in a joint tenancy
there is a single title to the property.
there are as many titles to the property as there are co-owners.
title is held by a trustee.
co-owners who are married hold separate titles.
The new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner.
the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner.
the joint tenancy continues with the new owner as the third joint tenant.
the joint tenancy terminates and all owners become tenants in common.
the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner.
When a joint tenant dies, what happens to the tenant's interest in the estate?
It passes to the decedent's heirs, who become joint tenants.
It passes as a tenancy in common to the decedent's heirs.
The joint tenancy terminates and becomes a tenancy in common with the decedent's heirs and the surviving tenants as co-owners.
It passes to the surviving joint tenants.
Under what conditions can two individuals own a property as tenants by the entireties?
If they so elect at the time of acquiring title.
If they are blood relatives.
If they are married.
If they incorporate.
When an estate is held in a trust, which party holds legal title?
The beneficiary.
The trustor.
The trustee.
The grantor.
Tanya buys a 4-bedroom condominium. As the new owner, she has the right to
sell or mortgage the unit without impediment from individual owners of neighboring units.
sell the interest in the physical unit separately from the interest in the common elements.
prevent non-owners from using the unit owner's portion of the common elements.
exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit.
The unit's pro rata share of the property value as defined in the declaration is:
the unit's pro rata share of floor space.
the unit's pro rata share of the property value as defined in the declaration.
the number of shares the owner purchased in the condominium association.
the assessed value of the condominium unit.
By contrast to a condominium, the owner of a cooperative owns:
shares in a corporation or association and a proprietary lease in a physical unit.
a fee simple interest in a physical unit plus a tenancy in common in common elements.
a tenancy in common in a physical unit and the common areas.
a ground lease in the physical unit's pro rata share of land and a proprietary lease in the unit.
In a cooperative, real property is owned only by:
the individual unit owners.
the individual unit owners and the cooperative association.
the cooperative developer.
the corporate entity of the cooperative association.
In a time-share freehold, owners acquire:
undivided interests in the property as tenants in common.
a renewable periodic tenancy from for a portion of a year.
a pro rata share of a leased fee.
a tenancy in severalty for a portion of a year.
A party has just purchased a manufactured housing unit. When is this property considered real property?
As soon as it is purchased
As soon as it is constructed
As soon as it is affixed to the ground
This form of property is considered personal property at all times.
Kiki's annual lease expires on December 31st. On January 7th, Kiki has still not vacated the premises. In this case, what happens to this person's tenancy and what is the resulting leasehold estate called, if anything?
The tenancy becomes a leasehold by prescription.
The estate becomes a holdover tenancy, a periodic leasehold estate.
What happens when a tenant holds over without the landlord's consent?
The estate becomes a tenancy at sufferance.
The estate becomes a periodic tenancy.
The estate becomes a delinquent estate for years tenancy subject to immediate eviction.
There is no subsequent tenancy; the tenant must vacate immediately.
