MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO RIGHTS AND INTERESTS IN REAL ESTATE

Which of the following best defines an easement?
a) Complete ownership of a property
b) Limited right to use another’s property
c) Right to exclude others from a property
d) Temporary possession of a property

Answer: b) Limited right to use another’s property

What is the primary purpose of a deed?
a) Identify property boundaries
b) Transfer ownership of real estate
c) Establish property taxes
d) Ensure property insurance

Answer: b) Transfer ownership of real estate

Which type of easement is typically associated with a landlocked property?
a) Negative easement
b) Affirmative easement
c) Prescriptive easement
d) Easement by necessity

Answer: d) Easement by necessity

What type of lien takes priority over all other liens?
a) Property tax lien
b) Mechanic’s lien
c) Federal income tax lien
d) Judgment lien

Answer: c) Federal income tax lien

Which document outlines any defects in title before the property is sold?
a) Warranty deed
b) Title insurance
c) Quitclaim deed
d) Title report

Answer: d) Title report

What type of ownership involves the right of survivorship?
a) Tenancy in common
b) Joint tenancy
c) Community property
d) Sole ownership

Answer: b) Joint tenancy

In real estate, what does “encumbrance” refer to?
a) A claim against the property
b) A type of property tax
c) Legal right to use another’s land
d) The process of land surveying

Answer: a) A claim against the property

What does the term “lien” signify in real estate?
a) Transfer of property ownership
b) Limitation on property use
c) Legal claim on property as security for a debt
d) Right to use the property for a specific purpose

Answer: c) Legal claim on property as security for a debt

Which type of easement is granted to a neighbor allowing them access to a nearby water source?
a) Easement by prescription
b) Negative easement
c) Affirmative easement
d) Easement appurtenant

Answer: c) Affirmative easement

What is the primary function of a “lis pendens” notice?
a) Indicates a pending lawsuit related to the property
b) Provides information on property tax assessments
c) Establishes property boundaries
d) Transfers property ownership

Answer: a) Indicates a pending lawsuit related to the property

In a condominium, what do individual unit owners typically hold?
a) Fee simple absolute interest
b) Joint tenancy rights
c) Proprietary leaseholds
d) Common stock interest

Answer: c) Proprietary leaseholds

What type of deed offers the greatest protection to the grantee?
a) Quitclaim deed
b) Bargain and sale deed
c) Special warranty deed
d) General warranty deed

Answer: d) General warranty deed

Which type of co-ownership does NOT include the right of survivorship?
a) Joint tenancy
b) Tenancy by the entirety
c) Tenancy in common
d) Community property

Answer: c) Tenancy in common

What is a “cloud on title” in real estate?
a) A property without a clear owner
b) An invalid mortgage document
c) A defect or claim that might invalidate title
d) A property with multiple owners

Answer: c) A defect or claim that might invalidate title

What document is recorded to give public notice of a lien against a property?
a) Title report
b) Mortgage agreement
c) Deed of trust
d) Lien instrument

Answer: d) Lien instrument

What is the purpose of title insurance in a real estate transaction?
a) To guarantee a clear title
b) To set property boundaries
c) To establish property taxes
d) To determine property ownership rights

Answer: a) To guarantee a clear title

Which type of easement involves a right-of-way for utility companies?
a) Negative easement
b) Affirmative easement
c) Prescriptive easement
d) Easement in gross

Answer: d) Easement in gross

What type of estate lasts for the lifetime of the grantee?
a) Fee simple determinable
b) Fee simple absolute
c) Life estate
d) Fee tail estate

Answer: c) Life estate

In a leasehold estate, who holds the ownership interest in the property?
a) Lessor
b) Lessee
c) Sublessee
d) Trustee

Answer: b) Lessee

Which interest in real estate involves the right to possess and use the property for a specific period?
a) Easement
b) Fee simple absolute
c) Leasehold estate
d) Life estate

Answer: c) Leasehold estate

What type of deed provides the least protection to the grantee?
a) General warranty deed
b) Special warranty deed
c) Bargain and sale deed
d) Quitclaim deed

Answer: d) Quitclaim deed

Which type of co-ownership requires unity of time, title, interest, and possession?
a) Tenancy by the entirety
b) Joint tenancy
c) Tenancy in common
d) Community property

Answer: b) Joint tenancy

What does the term “dominant tenement” refer to in an easement?
a) Land burdened by the easement
b) Land benefiting from the easement
c) Land under joint ownership
d) Land with multiple encumbrances

Answer: b) Land benefiting from the easement

Which lien takes priority based on the time of filing or recording?
a) Property tax lien
b) Mechanic’s lien
c) Federal income tax lien
d) Judgment lien

Answer: b) Mechanic’s lien

In a mortgage, what does the “mortgagor” refer to?
a) The lender
b) The borrower
c) The title company
d) The property appraiser

Answer: b) The borrower

What is an “easement by prescription” based on?
a) Written agreement
b) Continuous, unauthorized use
c) A recorded deed
d) Mutual consent

Answer: b) Continuous, unauthorized use

What is the purpose of a “metes and bounds” description in property surveys?
a) To establish property taxes
b) To outline property boundaries using natural landmarks
c) To determine property ownership rights
d) To assess property value

Answer: b) To outline property boundaries using natural landmarks

Which form of co-ownership involves the right of survivorship?
a) Tenancy in common
b) Joint tenancy
c) Tenancy by the entirety
d) Partnership

Answer: b) Joint tenancy

What document is used to transfer ownership of personal property?
a) Deed
b) Bill of sale
c) Title report
d) Mortgage agreement

Answer: b) Bill of sale

Which type of estate is subject to a specific condition or trigger?
a) Fee simple determinable
b) Fee simple absolute
c) Life estate
d) Fee tail estate

Answer: a) Fee simple determinable

What type of deed guarantees the grantor has the right to convey the property but offers no warranties?
a) Quitclaim deed
b) General warranty deed
c) Special warranty deed
d) Bargain and sale deed

Answer: a) Quitclaim deed

In joint tenancy, how is ownership interest passed on when one tenant dies?
a) According to the will
b) To the government
c) Through probate
d) By right of survivorship

Answer: d) By right of survivorship

Which document provides evidence of ownership for personal property?
a) Deed
b) Bill of sale
c) Title insurance
d) Mortgage agreement

Answer: b) Bill of sale

What does the acronym “HOA” stand for in real estate?
a) Home Offer Agreement
b) Homeowners Association
c) House Ownership Agreement
d) Housing Oversight Authority

Answer: b) Homeowners Association

What is a “fixture” in real estate?
a) An immovable item that was once personal property but is now attached to the real property
b) A legal document establishing property boundaries
c) A type of easement
d) A shared ownership agreement

Answer: a) An immovable item that was once personal property but is now attached to the real property

Which document specifies the rights and obligations of a tenant and landlord in a rental agreement?
a) Deed
b) Lease
c) Title report
d) Mortgage agreement

Answer: b) Lease

What type of lien is placed on a property to secure payment for work done on the property?
a) Property tax lien
b) Mechanic’s lien
c) Federal income tax lien
d) Judgment lien

Answer: b) Mechanic’s lien

What does “adverse possession” refer to in real estate?
a) Transferring property to a new owner
b) Unlawful possession of another’s property over time, leading to ownership
c) Joint ownership of property
d) A legal claim against a property

Answer: b) Unlawful possession of another’s property over time, leading to ownership

Which interest in real estate involves the right to use another’s property for a specific purpose?
a) Easement
b) Fee simple absolute
c) Leasehold estate
d) Life estate

Answer: a) Easement

What is the purpose of a title search in a real estate transaction?
a) To establish property taxes
b) To guarantee a clear title
c) To determine property boundaries
d) To assess property value

Answer: b) To guarantee a clear title

What is a “covenant” in real estate?
a) A claim against a property
b) A promise or agreement made regarding the use of the property
c) A type of deed
d) A form of co-ownership

Answer: b) A promise or agreement made regarding the use of the property

In real estate, what is the purpose of a “survey”?
a) To establish property taxes
b) To determine property boundaries and dimensions
c) To transfer property ownership
d) To assess property value

Answer: b) To determine property boundaries and dimensions

What is a “lienholder” in real estate?
a) The property appraiser
b) The borrower in a mortgage agreement
c) The entity holding a legal claim on a property
d) The title company

Answer: c) The entity holding a legal claim on a property

Which type of co-ownership involves equal rights of possession and survivorship?
a) Joint tenancy
b) Tenancy in common
c) Tenancy by the entirety
d) Community property

Answer: a) Joint tenancy

What does “quiet enjoyment” mean in a lease agreement?
a) Renting property without disturbances or interference
b) An agreement to reduce noise levels in shared properties
c) Using the property for business purposes
d) Legal ownership of the property

Answer: a) Renting property without disturbances or interference

What document transfers ownership of real property from one party to another?
a) Title report
b) Deed
c) Lease agreement
d) Bill of sale

Answer: b) Deed

In real estate, what is “escrow”?
a) A type of lien on the property
b) An impartial third party that holds funds and documents during a real estate transaction
c) The legal process of transferring property ownership
d) A type of property tax

Answer: b) An impartial third party that holds funds and documents during a real estate transaction

Which type of estate terminates upon the occurrence or non-occurrence of a specified event?
a) Fee simple determinable
b) Fee simple absolute
c) Life estate
d) Fee tail estate

Answer: a) Fee simple determinable

What does “tenancy at sufferance” refer to in real estate?
a) An agreement to share ownership of property
b) Unlawful possession by a tenant after the lease has expired
c) A legal claim on a property
d) A type of easement

Answer: b) Unlawful possession by a tenant after the lease has expired

What is the purpose of a “deed of trust” in a mortgage transaction?
a) To outline property boundaries
b) To transfer property ownership
c) To hold funds during the transaction
d) To provide security for the repayment of a loan

Answer: d) To provide security for the repayment of a loan