PSI PSI Real Estate Principles and Practices 2 — Questions and Answers
Question 1: What is the term for an easement that benefits one parcel of land and burdens another?
- Easement in gross
- Easement appurtenant (Correct answer)
- License
- Profit
Correct answer: Easement appurtenant
An easement appurtenant attaches to and benefits a dominant estate, while burdening a servient estate, and transfers with the land.
Question 2: Under the doctrine of adverse possession, which condition is NOT required for a claimant to gain title?
- Continuous possession
- Open and notorious use
- Payment of fair market value (Correct answer)
- Hostile claim
Correct answer: Payment of fair market value
Adverse possession does not require payment; the claimant must possess the land openly, continuously, hostilely, and exclusively for the statutory period.
Question 3: Which type of deed is most commonly used in foreclosure sales and offers the least protection to the buyer?
- General warranty deed
- Special warranty deed
- Sheriff's deed
- Quitclaim deed (Correct answer)
Correct answer: Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor may have, with no warranties, offering the buyer no protection against title defects.
Question 4: Real property is converted to personal property through a legal process called:
- Annexation
- Severance (Correct answer)
- Dedication
- Accession
Correct answer: Severance
Severance is the process by which real property (such as a tree or a structure) is converted into personal property by detaching it from the land.
Question 5: Which of the following would NOT be considered real property?
- Fruit trees in an orchard
- A barn permanently attached to land
- A harvested crop stored in a silo (Correct answer)
- Underground mineral rights
Correct answer: A harvested crop stored in a silo
Once a crop is harvested and severed from the land, it becomes personal property (chattel); it is no longer considered real property.
Question 6: A title search discovers a cloud on title. What is the most effective way to resolve it?
- Purchase a homeowner's insurance policy
- File a quiet title action (Correct answer)
- Record a new deed
- Obtain a property survey
Correct answer: File a quiet title action
A quiet title action is a lawsuit filed to establish clear ownership of real property and remove any cloud or competing claim on the title.
PSI PSI Real Estate Principles and Practices 2
What is the term for an easement that benefits one parcel of land and burdens another?