Property Characteristics practice test: free Real Estate Salesperson questions

Sample Practice Questions for Property Characteristics

1. Question 1Ref: National Outline — Property Characteristics, 13.75%

   A tenant installs a commercial-grade oven in a rented bakery. Upon lease termination, the tenant removes the oven, leaving minor wall damage. How is the oven classified?

   AReal property because it is permanently attached.BA fixture that must remain with the property.CA trade fixture removable by the tenant.DEmblements that the tenant may harvest.
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   Correct Answer
   C. A trade fixture removable by the tenant.

   A trade fixture is personal property installed by a tenant for business purposes and is removable by the tenant at lease termination. It does not become real property despite attachment. Emblements are cultivated crops, and a standard fixture would remain with the property.

2. Question 2Ref: National Outline — Property Characteristics, 13.75%

   Which of the following is an example of an economic characteristic of real property?

   AImmobilityBUniquenessCIndestructibilityDScarcity
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   Correct Answer
   D. Scarcity

   The keyed answer is "Scarcity". Scarcity is an economic characteristic of real property, meaning land is limited in supply. Immobility, uniqueness, and indestructibility are physical characteristics of real property.

3. Question 3Ref: National Outline — Property Characteristics, 13.75%

   A homeowners association has recorded CC&Rs that restrict exterior paint colors. A new buyer was not told about the restriction before closing. Can the CC&Rs be enforced against the new buyer?

   ANo, because the buyer was not notified of the restriction.BYes, CC&Rs that are properly recorded run with the land.CNo, CC&Rs must be signed by every buyer to be enforceable.DYes, but only if the HOA sends a written notice after closing.
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   B. Yes, CC&Rs that are properly recorded run with the land.

   The keyed answer is "Yes, CC&Rs that are properly recorded run with the land.". CC&Rs that are properly recorded run with the land and are enforceable against subsequent purchasers, regardless of actual notice. The buyer is charged with constructive notice of recorded restrictions. The CC&Rs do not require the buyer's signature for enforceability.

4. Question 4Ref: National Outline — Property Characteristics, 13.75%

   A property owner grants a neighbor the right to cross a portion of the driveway to reach a garage. This right is best described as:

   AAn easement appurtenantBA licenseCAn encroachmentDAn easement in gross
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   Correct Answer
   A. An easement appurtenant

   An easement appurtenant benefits a particular parcel of land and runs with the land. The neighbor's right to use the driveway benefits the neighbor's property specifically. An easement in gross benefits a person, not land; a license is revocable permission; an encroachment is a physical intrusion.

5. Question 5Ref: National Outline — Property Characteristics, 13.75%

   Which method is most commonly used to describe land in urban areas with rectangular lots?

   AMetes and boundsBLot and block (recorded plat)CGovernment survey (section, township, range)DMonuments and natural landmarks
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   Correct Answer
   B. Lot and block (recorded plat)

   The lot and block system references a recorded subdivision plat and is the most common method for describing urban and suburban lots. Metes and bounds uses landmarks and measurements, the government survey is used in western states, and natural landmarks are part of metes and bounds.

6. Question 6Ref: National Outline — Property Characteristics, 13.75%

   The government's power to regulate land use for the health, safety, and welfare of the public is an exercise of:

   AEminent domainBEscheatCPolice powerDTaxation
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   C. Police power

   Police power is the government's authority to regulate land use, zoning, and building codes for the public welfare. Eminent domain is the power to take private property for public use with compensation. Escheat is the reversion of property to the state when there is no heir. Taxation is the power to levy property taxes.

7. Question 7Ref: National Outline — Property Characteristics, 13.75%

   A buyer's inspector discovers an encroachment where a neighbor's fence extends two feet onto the subject property. What is the most likely legal remedy?

   AThe buyer must accept the encroachment as a permanent condition.BThe seller must remove the encroachment or the buyer may seek an injunction.CThe encroachment automatically creates an easement by prescription.DThe buyer may reduce the purchase price by the value of the two feet.
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   Correct Answer
   B. The seller must remove the encroachment or the buyer may seek an injunction.

   An encroachment is a physical intrusion onto another's property. The property owner may seek an injunction requiring removal. The encroachment does not automatically create an easement, and the buyer is not required to accept it. A price reduction may be negotiated but is not the primary legal remedy.