Real Estate Sales Exam Real Estate Sales Property Ownership and Rights Questions and Answers 2 — Questions and Answers
Question 1: A property owner grants a neighbor the right to cross their land to access a public road. What type of interest has been created?
- Easement appurtenant (Correct answer)
- License
- Fee simple absolute
- Life estate
Correct answer: Easement appurtenant
An easement appurtenant grants a right to use another's land for a specific purpose, such as access, and runs with the land.
Question 2: Which of the following best describes the concept of 'bundle of rights' in real estate ownership?
- The complete set of legal rights associated with property ownership (Correct answer)
- A group of mortgages bundled together for sale
- The rights granted to a tenant under a lease
- The rights held by a homeowners association
Correct answer: The complete set of legal rights associated with property ownership
The bundle of rights includes the rights to possess, use, enjoy, exclude others, and dispose of real property.
Question 3: A developer places a restriction in all deeds within a subdivision prohibiting commercial use. This is an example of which type of restriction?
- Deed restriction (restrictive covenant) (Correct answer)
- Zoning ordinance
- Easement by necessity
- Encroachment
Correct answer: Deed restriction (restrictive covenant)
A deed restriction, also called a restrictive covenant, is a private limitation placed on property use by the grantor through the deed.
Question 4: Under the doctrine of prior appropriation, water rights are determined by which principle?
- First in time, first in right (Correct answer)
- Riparian ownership of adjacent land
- Equal sharing among all property owners
- Government allocation based on property size
Correct answer: First in time, first in right
Prior appropriation grants water rights based on who first put the water to beneficial use, regardless of land proximity.
Question 5: Which type of co-ownership includes the right of survivorship and requires the four unities of time, title, interest, and possession?
- Joint tenancy (Correct answer)
- Tenancy in common
- Tenancy by the entirety
- Community property
Correct answer: Joint tenancy
Joint tenancy requires the four unities and includes the right of survivorship, meaning a deceased owner's share passes to surviving co-owners.
Question 6: A homeowner discovers that a neighbor's fence extends two feet onto their property. This situation is legally known as what?
- Encroachment (Correct answer)
- Adverse possession
- Prescriptive easement
- Trespass
Correct answer: Encroachment
An encroachment occurs when a structure or improvement illegally extends onto another person's property.
Real Estate Sales Exam Real Estate Sales Property Ownership and Rights Questions and Answers 2
A property owner grants a neighbor the right to cross their land to access a public road.
What type of interest has been created?