Principles of Real Estate Quiz | Test Your Real Estate Knowledge

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  • 1/398 Questions

    Property management and real estate asset mangement are both real estate management professions. The primary distinction between the two is: 

    • Property managers always report to an asset manager.
    • Asset managers have greater knowledge of a property's finances. 
    • Property managers handle day-to-day operations while asset managers manage portfolios of properties.
    • Asset managers are primarily responsible for maintenance technicians. 
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Principles Of Real Estate Quiz | Test Your Real Estate Knowledge - Quiz
About This Quiz

You’ve studied hard but still find yourself doubting: "Am I truly ready for the upcoming real estate exam?" You’re familiar with key concepts yet feel uncertain about retaining critical details. Perhaps the problem isn’t your preparation but rather your approach to revision. That's exactly why the Principles of Real Estate Quiz is designed—to pinpoint precisely where you stand.

By identifying your See morestrengths and weaknesses clearly, this quiz enables you to target your studies effectively, boosting confidence and ensuring exam success. Think of it as your personal coach, guiding you smoothly through challenging topics. Begin now to make those exam anxieties a thing of the past.
Disclaimer: This quiz is intended for educational and self-assessment purposes only and does not guarantee passing any official real estate licensing examinations.

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  • 2. 

    People in the real estate business who primarily focus on creating new properties are

    • Broker

    • Developer

    • Zoning administrators

    • Excavators.

    Correct Answer
    A. Developer
  • 3. 

    The term "commercial property" generally refers to

    • Non-owner-occupied properties.

    • Retail, office, and industrial properties.

    • Multi-tenant properties.

    • Retail properties.

    Correct Answer
    A. Retail, office, and industrial properties.
  • 4. 

    Which of the following professionals involved in the real estate business are most concerned about procuring buyers and seller for clients?

    • Brokers and agents.

    • Property Managers

    • Corporate real estate managers.

    • Appraisers

    Correct Answer
    A. Brokers and agents.
  • 5. 

    1.5 Which of the following ways of specializing is common in the real estate brokerage buisness?

    • By type of houses. 

    • By geography.

    • By financial background of client.

    • By type of mortgage.

    Correct Answer
    A. By geography.
  • 6. 

    1.6 What is an advisory service provider?

    • A broker of fee simple titles.

    • A corporate real estate broker.

    • A broker performing non-transactional services for a commission. 

    • A broker who renders real estate services for a fee. 

    Correct Answer
    A. A broker who renders real estate services for a fee. 
  • 7. 

    1.7 The level of government which is most active in regulating real estate licensees is the 

    • Federal goverment

    • State goverment

    • County goverment

    • Municipal government where the person resides. 

    Correct Answer
    A. State goverment
  • 8. 

     2.1 - What guarantees the right of the private ownership of real estate in the United States.

    • Common law.

    • Local statutes

    • The Napoleonic Code

    • The constitution.

    Correct Answer
    A. The constitution.
  • 9. 

    2.2 Which of the following is the best definition of real estate? 

    • Land and personal property 

    • Unimproved land

    • Land and everything permanently attached to it.

    • An ownership interest in land and improvements

    Correct Answer
    A. Land and everything permanently attached to it.
  • 10. 

    2.3 Which of the following is included in the legal concept of land? 

    • The surface of the earth and all natural things permanently attached to the earth.

    • Only the surface of the earth that is delineated by boundaries.

    • The surface of the earth except for lakes and streams.   

    • Everything above, on and below the surface of the earth. 

    Correct Answer
    A. The surface of the earth and all natural things permanently attached to the earth.
    Explanation
    The legal concept of land encompasses: 

    the surface area of the earth
    everything beneath the surface of the earth extending downward to its center
    all natural things permanently attached to the earth
    the air above the surface of the earth extending outward to infinity.

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  • 11. 

    2.4 What are the three unique physical characteristics of land? 

    • Fixed, unchangeable, homogenous.

    • Immobile, indestructible, heterogenous.

    • Three-dimensional, buildable, marketable.

    • Natural, measurable, inorganic. 

    Correct Answer
    A. Immobile, indestructible, heterogenous.
    Explanation
    Physical characteristics. Land has three unique physical characteristics: immobility, indestructibility, and heterogeneity.

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  • 12. 

    2.5 The primary distinction between the legal concepts of land and real estate is that

    • Real estate includes air above the surface and minerals below the surface. 

    • Real estate is indestructable.

    • Land has no defined boundaries.

    • Land does not include man-made structures. 

    Correct Answer
    A. Land does not include man-made structures. 
  • 13. 

    2.6 The primary distinction between the legal concept of real estate and real property is that

    • Real property includes ownership of a bundle of rights.

    • Real property includes improvements.

    • Real property is physical, not abstract.

    • Real estate can be owned. 

    Correct Answer
    A. Real property includes ownership of a bundle of rights.
    Explanation
    Real property is ownership of real estate and the bundle of rights associated with owning the real estate.

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  • 14. 

    2.7 Which of the following is included in the bundle of rights inherent in ownership?

    • To inherit

    • To tax

    • To transfer

    • To vote

    Correct Answer
    A. To transfer
  • 15. 

    2.8 Which of the following is an example of intangible property? 

    • Real estate

    • Personal property

    • Artwork

    • Stock

    Correct Answer
    A. Stock
  • 16. 

    2.9 The right to use real property is limited by

    • The right of others to use and enjoy their property.

    • The police.

    • Taxation and subordination.

    • Title 12 of the U.S. Civil code.

    Correct Answer
    A. The right of others to use and enjoy their property.
  • 17. 

    2.10 Surface rights, air rights and subsurface rights are

    • Inviolable.

    • Unrelated.

    • Seperable.

    • Not transferrable.

    Correct Answer
    A. Seperable.
  • 18. 

    2.11 Which of the following terms refers to the rights of a property that abuts a stream or river?

    • Allodial

    • Alluvial

    • Littoral

    • Riparian

    Correct Answer
    A. Riparian
  • 19. 

    2.12 What part of a non-navigable waterway does the owner of an abutting property own? 

    • To the low-water mark.

    • To the middle of the waterway.

    • To the high-water mark.

    • None

    Correct Answer
    A. To the middle of the waterway.
  • 20. 

    2.13 What is the "Doctrine of Prior Appropriation?"

    • A pre-emptive zoning ordiance

    • The right of government to confiscate land and improvements.

    • A doctrine that gives the state control of water use and the water supply. 

    • A real estate tax applied to owners of water rights

    Correct Answer
    A. A doctrine that gives the state control of water use and the water supply. 
  • 21. 

    2.14 Which of the following is considered real property? 

    • A tree growing on a parcel of land.

    • A tree that has been cut down and is lying on a parcel of land.

    • A tractor used to mow grass on a parcel of land.

    • A prefabricated shed not yet assembled on a parcel of land. 

    Correct Answer
    A. A tree growing on a parcel of land.
  • 22. 

    2.15 The overriding test of whether an item is a fixture or personal property is

    • How long it has been attached to the real property.

    • Its definition as one or the other in a sale or lease contract

    • How essential it is to the function if the property.

    • How it was treated in previous transactions 

    Correct Answer
    A. Its definition as one or the other in a sale or lease contract
  • 23. 

    2.16 What is an emblement?

    • A piece of equipment affixed to the earth.

    • B.    A limited right to use personal property

    • C.    A sign indicating a property boundary

    • D.    A plant or crop that is considered personal property

    Correct Answer
    A. D.    A plant or crop that is considered personal property
    Explanation
    Plants and crops requiring human intervention and labor are called emblements. Emblements, despite their attachment to land, are considered personal property.

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  • 24. 

    2.17 An item can be converted from real to personal property and vice versa by means of which processes?

    • Assemblage and plottage

    • Application and dissolution

    • Affixing and severance

    • Personalty and severalty

    Correct Answer
    A. Affixing and severance
  • 25. 

    2.18 The major sources of real estate law are legislation at federal, state and local level, and 

    • Court decision

    • Professional real estate associations

    • Real estate commissions

    • Local practices

    Correct Answer
    A. Court decision
  • 26. 

    2.19 What is the primary thrust of federal involvement in real estate law?

    • Taxation

    • Licensing

    • Broad regulation of usage

    • Zoning

    Correct Answer
    A. Broad regulation of usage
    Explanation
    In regulating real property rights, the federal government is primarily concerned with broad standards of real property usage, natural disaster, land description, and discrimination. 
    The federal government does not levy real estate taxes.

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  • 27. 

    2.20 Which level of government controls zoning laws?

    • State

    • Taxing authorities

    • Federal

    • County and local

    Correct Answer
    A. County and local
  • 28. 

    2.21 A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered which of the following?

    • Trade fixtures that are real property.

    • Trade fixtures that are personal property

    • Permanent fixtures that are real property

    • Permanent fixtures that are personal property. 

    Correct Answer
    A. Trade fixtures that are personal property
  • 29. 

    2.22 Under the doctrine of littoral rights, an owner claims ownership of all of the land underlying a lake where there are three other abutting property owners. Which of the following is true?

    • The owner's claim is invalid, because the state owns the underlying land.

    • The owner's claim is invalid, because the underlying land is shared equally with the other owners.

    • The owner's claim is invalid, because he may only own underlying land to the middle of the lake.

    • The owner's claim is valid, because the lake is navigable.

    Correct Answer
    A. The owner's claim is invalid, because the state owns the underlying land.
    Explanation
    Littoral rights: abutting property owners own land to high water mark; may use, but state owns underlying land.

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  • 30. 

    3.1 An interest in real estate is best defined as ownership of?

    • the full bundle of rights to real property an estate.

    • One or more of the bundle of rights to real property.

    • An estate

    • The right to possession and use of real property.  

    Correct Answer
    A. One or more of the bundle of rights to real property.
  • 31. 

    3.2 Encumbrances and police powers are 

    • Interest that do not include possession.

    • Limited forms of an estate.

    • Unrelated to interests.

    • Types of public interests.

    Correct Answer
    A. Interest that do not include possession.
    Explanation
    Interests are principally distinguished by whether they include possession. If the interest-holder enjoys the right of possession, the party is considered to have an estate in land, or, familiarly an estate. If a private interest-holder does not have the right to possess, the interest is an encumbrance. If the interest-holder is not private, such as a government entity, and does not have the right to possess, the interest is some form of public interest. An encumbrance enables a non-owning party to restrict the owner's bundle of rights. Tax liens, mortgages, easements, and encroachments are examples.

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  • 32. 

    3.3 What distinguishes a freehold estate from a leasehold estate?

    • A freehold includes the right to dispose or use. 

    • A leasehold endures only for a specific period of time.

    • A freehold cannot be defeasible.

    • A leasehold is subject to government restrictions. 

    Correct Answer
    A. A leasehold endures only for a specific period of time.
  • 33. 

    3.4 The highest form of ownership interest one can acquire in real estate is the

    • Dower and curtsey.

    • Conventional life estate.

    • Defeasible fee simple estate.

    • Absolute fee simple estate. 

    Correct Answer
    A. Absolute fee simple estate. 
  • 34. 

    3.5 The distinguishing feature of a defeasible free simple estate is that

    • It can be passed on to heirs.

    • It has no restrictions on use.

    • The estate may revert to a grantor or heirs if the prescribed use changes.

    • It is of unlimited duration.

    Correct Answer
    A. The estate may revert to a grantor or heirs if the prescribed use changes.
    Explanation
    The two types of fee simple defeasible are determinable and condition subsequent. Determinable. The deed to the determinable estate states usage limitations. If the restrictions are violated, the estate automatically reverts to the grantor or heirs. Condition subsequent. If any condition is violated, the previous owner may repossess the property. However, reversion of the estate is not automatic: the grantor must re-take physical possession within a certain time frame.

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  • 35. 

    3.6 Upon the death of the owner, a life estate passes to

    • The original owner or other named person.

    • The owner's heirs.

    • The state.

    • The owner's spouse. 

    Correct Answer
    A. The original owner or other named person.
  • 36. 

    3.7 How is a conventional life estate created?

    • It happens automatically when title transfers unless a fee simple is specifically claimed. 

    • A fee simple owner grants the life estate to a life tenant.

    • It is created by judicial action.

    • It is created by a statutory period of adverse possession. 

    Correct Answer
    A. A fee simple owner grants the life estate to a life tenant.
  • 37. 

    3.8 What distinguishes a pur autre vie life estate from an ordinary life estate? 

    • The pur autre vie estate endures only for the lifetime of the grantor. 

    • The pur autre estate endures only for the lifetime of the grantee.

    • The pur autre estate endures only for the lifetime of a person other than the grantee. 

    • The pur autre estate cannot revert to the grantor.

    Correct Answer
    A. The pur autre estate endures only for the lifetime of a person other than the grantee. 
    Explanation
    Pur autre vie. A pur autre vie life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman).

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  • 38. 

    3.9 Which of the following life estates is created by someone other than the owner?

    • Conventional life estate.

    • Ordinary life estate.

    • Legal life estate.

    • Community property life estate.

    Correct Answer
    A. Legal life estate.
  • 39. 

    3.10 Which of the following is true of a homestead? 

    • A homestead interest cannot be conveyed by one spouse. 

    • A homestead interest cannot be passed to the children of the head of household.

    • A homestead interest is a form of conventional life estate. 

    • A homestead is a primary or secondary residence occupied by a family.

    Correct Answer
    A. A homestead interest cannot be conveyed by one spouse. 
    Explanation
    Homestead. A homestead is one's principal residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts. 
    Homestead laws generally provide that:

    all or portions of one's homestead are exempt from a forced sale executed for the collection of general debts (judgment liens). The various states place different limits on this exemption.
    tax debts, seller financing debt, debts for home improvement, and mortgage debt are not exempt 
    the family must occupy the homestead
    the homestead interest cannot be conveyed by one spouse; both spouses must sign the deed conveying homestead property
    the homestead exemption and restrictions endure over the life of the head of the household, and pass on to children under legal age. State laws define specifically how the interest transfers upon the death of the household head
    homestead interests in a property are extinguished if the property is sold or abandoned 
    in some states the exemption is automatic; in others, homeowners must file for the exemption.

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  • 40. 

    3.11 Dower refers to

    • Joint tenancy of husband and wife. 

    • A wife's life estate interest in her husband's property.

    • A wife's homestead interest.

    • A child's life estate interest in his or her parents' homestead. 

    Correct Answer
    A. A wife's life estate interest in her husband's property.
  • 41. 

    3.12 Which of the following is an illustration of the legal concept of elective share?

    • A surviving spouse places a lien on a debtor's property.

    • A widow who was excluded from a will makes a claim to a portion of the couple's principal residence. 

    • A spouse who loses her home because of her husband's gambling debt sues in court for exemption from the debt.

    • A widower whose spouse died without a will sues to change the provisions of the will.

    Correct Answer
    A. A widow who was excluded from a will makes a claim to a portion of the couple's principal residence. 
    Explanation
    Elective share. Elective share is a state-level statute enabling a surviving spouse to make a minimum claim to the deceased spouse's real and personal property in place of the provisions for such property in the decedent's will.

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  • 42. 

    3.13 A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists?

    • Estate for years

    • Estate from period to period

    • Estate at will

    • Estate at sufferance

    Correct Answer
    A. Estate from period to period
    Explanation
    The estate for years is a leasehold estate for a definite period of time, with a beginning date and an ending date.
    In an estate from period-to-period, also called a periodic tenancy, the tenancy period automatically renews for an indefinite period of time, subject to timely payment of rent. At the end of a tenancy period, if the landlord accepts another regular payment of rent, the leasehold is considered to be renewed for another period.
    The estate at will, also called a tenancy at will, has no definite expiration date and hence no "renewal" cycle. The landlord and tenant agree that the tenancy will have no specified termination date, provided rent is paid on time and other lease conditions are met.
    In an estate at sufferance, a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord. Usually such an estate involves a tenant who fails to vacate at the expiration of the lease,  continuing occupancy without any right to do so.

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  • 43. 

    4.1 When a single individual or entity owns a fee or life estate in a real property, the type of ownership is

    • Tenancy in severalty.

    • Tenancy by the entireties.

    • Absolute fee simple.

    • Legal fee simple.

    Correct Answer
    A. Tenancy in severalty.
    Explanation
    If a single party owns the fee or life estate, the ownership is a tenancy in severalty. Synonyms are sole ownership, ownership in severalty, and estate in severalty.
    Tenancy by the entireties is a form of ownership reserved exclusively for husband
    and wife. It features survivorship, equal interests, and limited exposure to
    foreclosure.
    fee simple An estate representing the highest form of legal ownership of real property, particularly the fee simple absolute estate.

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  • 44. 

    4.2 Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is

    • Joint tenancy.

    • Equal ownership.

    • Tenancy in common

    • Estate in severalty.

    Correct Answer
    A. Tenancy in common
  • 45. 

    4.3 The "four unities" required to create a joint tenancy include which of the following conditions?

    • Parties must acquire respective interests at the same time.

    • Parties must be legally married at the time of acquiring interest. 

    • Parties must be family members.

    • Parties must have joint financial resources.

    Correct Answer
    A. Parties must acquire respective interests at the same time.
    Explanation
    joint tenancy A form of real property ownership in which co-owners share all rights and interests equally
    and indivisibly; entails right of survivorship. Parties must establish tenancy at the same time and with a
    single deed.

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  • 46. 

    4.4 Unlike tenants in common, joint tenants

    • Own distinct portions of the physical properties. 

    • Cannot will their interest to a party outside the tenancy.

    • May own unequal shares of the property.

    • Cannot sell their interest to outside parties.

    Correct Answer
    A. Cannot will their interest to a party outside the tenancy.
    Explanation
    In a joint tenancy, two or more persons collectively own a property as if they were a single person. Rights and interests are indivisible and equal: each has a shared interest in the whole property which cannot be divided up.

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  • 47. 

    4.5 In a community property state, a basic distinction is made between

    • Property acquired together and property acquired separately over the duration of the marriage.

    • Property owned privately versus property owned by the state.

    • Property acquired during a marriage and property already owned by each party at the time of marriage.

    • Property acquired during the marriage and property acquired after the marriage.

    Correct Answer
    A. Property acquired during a marriage and property already owned by each party at the time of marriage.
  • 48. 

    4.6 Who are the essential parties involved in an estate in trust?

    • Owner, trustor and lawyer.

    • Owner, trustor and trustee.

    • Trustee, title company, and beneficiary.

    • Trustor, trustee and beneficiary.

    Correct Answer
    A. Trustor, trustee and beneficiary.
  • 49. 

    4.7 The distinguishing features of a condominium estate are

    • Ownership of a share in an association that owns one's apartment.

    • Tenancy in common interest in airspace and common areas of the property.

    • Fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas.

    • Fee simple ownership of a pro rata share of the entire property.

    Correct Answer
    A. Fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas.
    Explanation
    A condominium unit is one airspace unit together with the associated interest in the
    common elements.

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  • Apr 09, 2025
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