Real Estate Fundamentals - Chapter 4: Encumbrances

20 Questions | Total Attempts: 332

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Real Estate Quizzes & Trivia

Questions and Answers
  • 1. 
    A special claim or interest in real property that is held by someone other than the owner and creates a limitation and/or burden to the real property owner is known as an encumbrance.
    • A. 

      True

    • B. 

      False

  • 2. 
    A type of encumbrance that represents a special interest in real property without having ownership is known as an easement by cooperation.
    • A. 

      True

    • B. 

      False

  • 3. 
    The right to use land owned by another person for a specific purpose is known as an easement.
    • A. 

      True

    • B. 

      False

  • 4. 
    An easement by prescription occurs where there are two adjacent properties with different owners and an easement exists whereby one property owner benefits and the other property owner suffers the burden.
    • A. 

      True

    • B. 

      False

  • 5. 
    An easement in gross is a personal right to use the land of another owner. The most common examples of this type of easement would be the right given to utility companies to run electric, gas, telephone and cable lines through a property.
    • A. 

      True

    • B. 

      False

  • 6. 
    An easement by prescription is created automatically on land-locked land. An easement by prescription would be the only practical way an owner could get to or from a parcel of real property that is surrounded by one or more owners.
    • A. 

      True

    • B. 

      False

  • 7. 
    The taking of private property for public use with just compensation is legal and would be an example of an easement by condemnation.
    • A. 

      True

    • B. 

      False

  • 8. 
    An encroachment occurs when the property of one owner, typically an improvement, extends beyond the property boundary line into the real property of an adjacent owner. Technically this amounts to trespassing.
    • A. 

      True

    • B. 

      False

  • 9. 
    Real estate salespersons should be aware that Pennsylvania requires a survey for all properties bought or sold. This law has been in effect since 1978.
    • A. 

      True

    • B. 

      False

  • 10. 
    Real property boundary lines can only be determined with accuracy by a professional surveyor using a surveying instrument  known as a transfer.
    • A. 

      True

    • B. 

      False

  • 11. 
    A license is the temporary permission to enter and use the real property of another for a specific purpose. An example of a license would be a ticket that entitles the bearer to enter a stadium to watch a sporting event.
    • A. 

      True

    • B. 

      False

  • 12. 
    A legal claim by a creditor against the property of a debtor to obtain payment of a debt is known as a lean-to.
    • A. 

      True

    • B. 

      False

  • 13. 
    Foreclosure is the legal procedure that a lender takes to recover money when a borrower defaults on the mortgage (breaks the mortgage contract usually as a result of of failure to make monthly mortgage payments) that can result in the loss of real property to the owner.
    • A. 

      True

    • B. 

      False

  • 14. 
    In most states it is possible for a borrower who is in default on a mortgage to prevent a foreclosure sale and return the mortgage to its original status by paying all amounts of the debt  that are due plus costs. This is known as a defiency judgement.
    • A. 

      True

    • B. 

      False

  • 15. 
    Pennsylvania law allows a mechanics lien to be filed by a tradesperson, builder, or contractor, subcontractor, or developer when some type of construction or repair work on real estate including material and/or labor has been ordered and completed but has not been paid for by the owner.
    • A. 

      True

    • B. 

      False

  • 16. 
    Pennsylvania law does NOT allow private property to be sold to satisfy unpaid tax liens.
    • A. 

      True

    • B. 

      False

  • 17. 
    Lien holders get paid from the sale proceeds of property in exact order of their lien position. Those who are listed as the first lien holder are paid first; second lien holders are paid second, etc.
    • A. 

      True

    • B. 

      False

  • 18. 
    A subordination agreement in effect lowers the lien position of a lender.
    • A. 

      True

    • B. 

      False

  • 19. 
    Whenever a lawsuit is filed against real property, such as in the case of a mortgage foreclosure or suit to quiet title, a notice of the lawsuit, called a cloud on the title is recorded in the county courthouse to alert any interested party of the pending litigation.
    • A. 

      True

    • B. 

      False

  • 20. 
    At the conclusion of a lawsuit, the court issues an order known as a judgement. The order indicates that money is owed by a debtor to a creditor. A judgement represents a general lien that affects all real and personal property of the debtor.
    • A. 

      True

    • B. 

      False

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