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WorksheetsReal Estate Exam Study Questions
Total questions: 79
Worksheet time: 45mins
According to the Georgia Condominium Act, how many days after receiving the disclosure package does a potential buyer have to cancel the contract without penalty?
seven
four
zero
ten
In Georgia, how do married property owners take title?
as either joint tenants or tenants in common, depending on what is in the deed
as tenants by the entirety
as community property owners
as tenants in severalty
Jaimie is part of a business. It is a partnership where all partners are shielded from personal liability, meaning partners cannot be personally held liable for other partners' mistakes. It has over 100 members and is not subject to double taxation. What kind of business is Jaimie most likely part of?
LLP
sole proprietorship
S corp
C corp
A syndicate where all members equally share unlimited personal responsibility for the financial liabilities and obligations of the business would be considered what type of partnership?
general partnership
limited partnership
If a partnership includes equally shared financial responsibility, what type of partnership is it?
general partnership
limited partnership
equitable estate
partnership in-kind
John, Paul, George, and Ringo own a property as joint tenants with the right of survivorship. If Paul passes away, who inherits his share of the property?
John, George, and Ringo split his share equally.
his wife, Linda
his daughter, Stella
It depends on what is specified in his will.
In order to comply with the Georgia Condominium Act, a developer must do what two things to create a new condo in Georgia?
file three documents in the land records of each county the development is located in and incorporate an entity to manage the condo
create a plat map and an environmental impact report
send a disclosure packet to all interested buyers and notify neighboring landowners
complete a land survey and interview any potential buyers
Laurel is part of a business. This business has one general partner and three limited partners (but can be any size) and is a pass-through business for tax purposes. The general partner is not shielded from personal liability, but the limited partners are. What kind of business is Laurel part of?
Limited partnership
General partnership
Sole proprietorship
Corporation
Martha has her property in a trust. Her heir is the beneficiary, and she has named a non-family trustee. She cannot access the property or remove it, and when she dies, her heirs won't pay estate tax on it, and it won't be probated. What kind of trust is this?
irrevocable trust
revocable trust
land trust
testamentary trust
What right does undivided interest give to co-owners of real property?
right to possession of the whole property
right to transfer their property to whoever they choose
right of survivorship
right of quiet enjoyment
Which of the following are two primary types of trusts?
living trusts and testamentary trusts
living trusts and decedent trusts
active trusts and testamentary trusts
active trusts and decedent trusts
Which of the following terms means that a property has only one owner, whether that is a person, corporation, or other legal entity?
Sole ownership (or severalty)
Joint tenancy
Tenancy in common
Community property
A group of co-owners purchase property and take title as joint tenants with rights of survivorship. Person A later decides they want to sell their share to Person B. How will Person B take title?
as a tenant in common
as a joint tenant with rights of survivorship
as a joint tenant with rights of inheritance
as a tenant by the entirety
Which of the following four unities are required for joint tenancy?
unity of interest, time, title, and possession
unity of income, time, title, and possession
unity of interest, time, deed, and possession
unity of income, time, deed, and possession
Which of these is an advantage of using a living trust over a testamentary trust?
Living trusts keep properties out of probate.
Living trusts allow property owners to avoid paying all taxes.
Testamentary trusts can only have one benefactor.
Testamentary trusts don't allow the trustor to choose the trustee.
Rebecca owns a business in her own name. She is personally liable for her business's profits, losses, and legal liabilities. What kind of business is she most likely to have?
ownership in severalty
joint tenancy
tenancy by the entirety
tenants in common
What is one of the main advantages of a revocable trust over an irrevocable trust?
A revocable trust can be changed by the trustor, while an irrevocable trust cannot.
A revocable trust shields properties from liability, while an irrevocable trust does not.
A revocable trust keeps properties out of probate, while an irrevocable trust does not.
A revocable trust is designed for holding land, while an irrevocable trust is not.
In a trust, what is the name of the person who holds title to the property while it is in the trust?
trustee
trustor
beneficiary
trustman
Which of the following is a characteristic of a limited partnership?
A. A limited partnership is made up of both limited and general partners.
B. Limited partners, like general partners, assume unlimited financial liability.
C. Limited partnerships do not need a general partner.
D. Limited partners don't have any financial investment in the partnership.
What does severalty mean?
sole ownership
community property
Co-op boards cannot reject applicants for which of these reasons?
being a member of a class protected by the Fair Housing Act
not having a year's worth of mortgage and maintenance payments in cash post-closing
not making the minimum income requirement
number or type of pets
What is the primary distinction between a PUD and a condo?
PUD owners own the land beneath their unit; condo owners do not.
PUD owners pay HOA dues; condo owners do not.
PUD owners own shares in a corporation; condo owners own their units from the walls in.
PUD owners own their common elements fee simple; condo owners own them as joint tenants.
Which of the four unities states that each co-owner must hold title under the same instrument?
unity of title
unity of interest
unity of possession
unity of time
What is undivided interest?
Why is an LLP a common business form for medical practices?
because partners are shielded from personal liability if another doctor gets sued for malpractice
because the LLC structure makes it easier to work with insurance agencies
because it is the most favorable structure tax-wise
because HIPAA requirements are easier to meet with the lower reporting requirements for LLPs vs. corporations
What two kinds of ownership do condo owners have?
fee simple absolute and tenancy in common
tenancy by the entirety and fee simple defeasible
tenancy in common and joint tenancy
fee simple absolute and tenancy by the entirety
Which is the most common form of co-ownership for unmarried co-owners?
tenancy in common
joint tenancy
tenancy by the entirety
tenancy by partnership
Tenancy in common only requires one of the four unities. Which one is it?
What type of business organization must have at least 100 shareholders at the beginning of their second taxable year?
a real estate investment trust
a joint venture
a syndicate venture
an S corp
Jaimie is part of a business that protects members from personal liability for business debts, but they can still be held liable if another member does something illegal. It has over 100 members and is not subject to double taxation. What kind of business is Jaimie most likely part of?
LLC
sole proprietorship
S corp
C corp
With which type of land description does a surveyor indicate direction in degrees, minutes, and seconds?
metes and bounds
rectangular survey system
lot and block system
government survey system
Derek paid $5.41 per square foot for a property with dimensions of 200 ft. by 250 ft. What was the full price Derek paid for the property?
$270,500
$135,250
$540,000
$225,000
A 2,100 sq. ft. house is sold for $400,000. Rounded to the nearest cent, what is the cost per square foot?
$190.48
$152.98
$542.21
$220.17
If a rectangular lot has an area of 20,500 sq. ft. and a depth of 200 ft., what is the frontage of the lot?
102.5 ft.
142 ft.
120.5 ft.
400 ft.
A rectangular living room has dimensions of 15 ft. x 22 ft. What is the area of the living room?
330 sq. ft.
74 sq. ft.
230 sq. ft.
370 sq. ft.
36. A datum is:
a single piece of information
a type of graph
a measuring instrument
a unit of length
What is a section?
one of 36 equal square-mile areas in a township
a square area of land with sides of six miles each
a fixed landmark, whether natural or human-made, used as a reference point in a metes and bounds legal description
an imaginary line of latitude used in the rectangular survey system to identify townships in relation to proximity to a principal meridian
Which of the following is an example of an informal reference to a property?
4617 Jade St., Portland, OR
SW 1/4 of SW 1/4 of NE 1/4 of Section 9
Lot C, Block 7 of Moody Shores, Orange County, Florida
Beginning at the intersection of King Road and the south line of Diamond Drive, proceed north 150 ft., then 500 ft. east more or less, to the center of Cline Creek, then continue south 200 ft. to the U.S.G.S. benchmark, then continue north-west to the place of beginning.
Using this information, how many acres is the lot?
9.26 acres
10.4 acres
9.34 acres
11.23 acres
Which survey system uses longitude and latitude lines to map property boundaries?
the rectangular survey system
the metes and bounds system
the lot and block system
the recorded plat system
What unit of measurement is equal to 43,560 sq. ft.?
an acre
a square mile
a township
a section
Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks?
plat
plot
land
squat
One square mile is equal to how many acres?
640
36
43,560
9
What is the total frontage of both Lots A and B, rounded to the nearest whole number?
200 ft.
250 ft.
500 ft.
325 ft.
What is a meridian?
an imaginary line of longitude used to identify a certain area of the earth's surface along a north-south direction
an imaginary line of latitude used to identify a certain area of the earth's surface along an east-west direction
a designated reference point to elevation used by surveyors to determine the elevations of land or property in an area
the area of land between two consecutive base lines
What is a parallel?
a line of latitude
a line of longitude
a square area of land with sides of six miles each
a meridian used in reference to a baseline to identify ranges, tiers, and townships in the rectangular survey method of land description
What is an interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose?
easement
appurtenance
encumbrance
lien
What is a type of easement by implication that occurs when the dominant tenement could not be used without an easement, even without a longstanding, apparent use?
easement by necessity
easement by condemnation
floating easement
easement for light and air
Which party is most likely to put deed restrictions in place?
land developer
local government
the buyer
real estate broker
What is the purpose of special assessments?
to pay for municipal projects that benefit the assessed homeowners
establishes the order in which liens against a property will be settled
to ensure payment for the work that a mechanic or materialman performs
to give a mortgage recorded at a later date priority over a previously recorded mortgage
This is an example of what type of encumbrance?
cloud on title
an encroachment
a license
an easement
The purpose of an attachment lien is:
to secure payment of a debt by seizing property before judgment
to transfer ownership of property
to release a debtor from liability
to provide insurance for property
Do the neighbors have any recourse to have them removed?
Yes, because when city and private restrictions overlap, the stricter of the two is applied.
Yes, because private regulations always override city regulations.
No, because the city code has outlined this as a permitted use, they have no recourse.
No, they have no recourse due to the fact that CC&Rs cannot restrict agricultural activity.
Which of the following agencies would NOT be able to put a tax lien on a property if the associated taxes were not paid?
HOA
IRS
city tax office
county tax office
What is a lien that applies to a certain property only?
specific lien
general lien
involuntary lien
voluntary lien
56. Which of these statements most accurately reflects how lien priority works (after tax liens are settled)?
Liens are prioritized by the date they were recorded.
Liens are prioritized by the amount owed.
Liens are prioritized by the type of property involved.
Liens are prioritized by the lender's preference.
Edna has an easement that allows her to use a part of Meena's driveway to reach her home. Which of these BEST describes Edna's role in the easement?
A. dominant tenement
B. servient tenement
C. active notice
D. constructive notice
Which type of easement allows the owner of a landlocked parcel of land to gain access to their property?
easement by necessity
easement in gross
easement by prescription
easement by condemnation
When must a mechanic's lien be filed?
within 90 days of completion of the project or delivery of materials
within one year of signing a contract
within 30 days of the commencement of the labor
within three years of the commencement of the labor
If a deed restriction is in conflict with a fair housing law, what happens with the deed restriction and how is the deed affected?
The deed restriction is unenforceable and the deed remains valid.
The deed restriction overrides the fair housing law.
The deed becomes void.
The fair housing law is ignored.
Jessica's neighbor, Nick, decides to pave his driveway, and it extends onto Jessica's property without her permission. What is Nick's driveway?
an encroachment
an easement
a license
a deed restriction
Carla's parcel of land becomes "landlocked" by a surrounding property after a sale. Which scenario is MOST likely?
Carla's property will be granted an easement by necessity.
Carla will need the other owner's permission to access the property.
Carla will have to sue for an easement by prescription.
Carla doesn't need to do anything. She may access her property however she likes.
John gave Peter the right to fish on John's property until John passes away. What type of easement is this an example of?
easement in gross
easement by necessity
easement by condemnation
easement for light and air
Frank has recently been notified that the house next to his property has been purchased. As the property is landlocked, the new neighbor has been granted the right to build a driveway through the back of Frank's land. What type of encumbrance is this?
an easement
a property lien
a property encroachment
a deed restriction
Which of these is an instrument that can create an easement by grant?
a deed
a court decision
an HOA rule
a survey
What kind of lien is an IRS tax lien?
involuntary, general
voluntary, general
voluntary, specific
involuntary, specific
Jeremy's fence encroaches on Selena's property. Which of these is NOT a way that Selena can try to resolve the encroachment?
tear down the encroaching fence
ask Jeremy to move the fence
sue Jeremy to force him to move the fence
sell Jeremy a small slice of her yard
Which of these liens will normally take priority over the others?
tax lien
mechanic's lien
mortgage lien
vendor's lien
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is a federal law that does what?
provides broad federal authority to respond directly to releases of hazardous substances that may endanger public health or the environment
protects people and the environment from the harmful effects of air pollution
protects public drinking water supplies by instituting standards for drinking water quality
requires home sellers to disclose lead-based paint hazards for properties built prior to 1978
What is eminent domain?
the power of government to seize private property for public use (government must pay the property owner just compensation)
the enforcement of state and local laws with which developers must comply before land can be subdivided
the act of sharing at least one common boundary with another property
a land use that does not adhere to current zoning law but was established previously
What is the straight-line depreciation recovery period for a commercial investment property?
39 years
27.5 years
524 months
Emilio bought a single-family home for 400,000.Sixyearslater,hesolditfor 545,000. How much of the profit will he have to pay capital gains tax on?
$0
$145,000
$545,000
$400,000
What are brownfields?
properties contaminated by hazardous substances
water reclamation areas
wetlands that have been paved over
authorized landfills for hazardous waste disposal
Which of these is a federal law that provides broad federal authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment?
CERCLA
SARA
RESPA
TILA
What is the governmental act of seizing private land through the exercise of the power of eminent domain?
condemnation
eminent domain
area variance
Which of these describes the power of the government to seize private property for public use (as long as the government pays the property owner just compensation)?
eminent domain
nonconforming use
condemnation
deed restriction
Which of these is a legal document from a local authority that authorizes a construction or remodeling project?
building permit
certificate of occupancy
use variance
area variance
Lester, a single gentleman, bought a primary residence for 700,000.Tenyearslater,hesolditfor 1,500,000. How much money will he owe capital gains taxes on?
$550,000
$800,000
$1,500,000
$700,000
What is a tax shelter?
any strategy used to minimize the amount of taxable income and, therefore, to reduce taxes owed to the government
a way to ensure your property taxes don't go up in any given tax year
the amount a person can deduct for business expenses as a real estate agent
