Page 1 of 148
California Real Estate Principles - Questions
& Correct Answers | Latest Update |
Complete A+ Guide
1. What is the legal definition of real estate?
A) Land and all man-made structures
B) Land, plus all permanently attached natural and man-made
objects
C) Only the surface of the earth
D) Personal property used on land
Answer: B
Rationale: Real estate includes land and anything permanently
attached (fixtures), natural (trees, water) or artificial
(buildings).
,Page 2 of 148
2. Which of the following is NOT a fixture?
A) Built-in dishwasher
B) Chandelier screwed into ceiling
C) Free-standing refrigerator
D) Central air conditioning unit
Answer: C
Rationale: A free-standing refrigerator is personal property
(chattel) because it is not permanently attached.
3. Scenario: A seller installs a custom chandelier using
screws. Before closing, the seller wants to take it. Can they?
A) Yes, because it’s personal property
B) No, because screws indicate annexation
C) Yes, if stated in the contract as excluded
D) No, unless buyer agrees
Answer: C
Rationale: Under the doctrine of fixtures, anything attached is
real property unless specifically excluded in the purchase
agreement.
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4. What are the three legal tests for a fixture?
A) Annexation, adaptation, intention
B) Attachment, ownership, value
C) Size, weight, cost
D) Contract, deed, title
Answer: A
Rationale: Annexation (physical attachment), adaptation
(customized to property), intention (party’s intent at time of
attachment).
5. The bundle of legal rights includes all EXCEPT:
A) Right of possession
B) Right of control
C) Right of taxation
D) Right of disposition
Answer: C
Rationale: Taxation is a government power, not a right of
ownership.
, Page 4 of 148
6. Fee simple absolute is best described as:
A) Ownership for life only
B) Maximum ownership rights possible
C) Ownership subject to a condition
D) Leasehold interest
Answer: B
Rationale: Fee simple absolute is the highest form of ownership,
indefinite duration, no restrictions except government powers.
7. A life estate terminates upon:
A) Sale of property
B) Death of the life tenant
C) Payment of mortgage
D) Transfer to remainderman
Answer: B
Rationale: A life estate lasts for the life of the measuring
person (life tenant).
California Real Estate Principles - Questions
& Correct Answers | Latest Update |
Complete A+ Guide
1. What is the legal definition of real estate?
A) Land and all man-made structures
B) Land, plus all permanently attached natural and man-made
objects
C) Only the surface of the earth
D) Personal property used on land
Answer: B
Rationale: Real estate includes land and anything permanently
attached (fixtures), natural (trees, water) or artificial
(buildings).
,Page 2 of 148
2. Which of the following is NOT a fixture?
A) Built-in dishwasher
B) Chandelier screwed into ceiling
C) Free-standing refrigerator
D) Central air conditioning unit
Answer: C
Rationale: A free-standing refrigerator is personal property
(chattel) because it is not permanently attached.
3. Scenario: A seller installs a custom chandelier using
screws. Before closing, the seller wants to take it. Can they?
A) Yes, because it’s personal property
B) No, because screws indicate annexation
C) Yes, if stated in the contract as excluded
D) No, unless buyer agrees
Answer: C
Rationale: Under the doctrine of fixtures, anything attached is
real property unless specifically excluded in the purchase
agreement.
,Page 3 of 148
4. What are the three legal tests for a fixture?
A) Annexation, adaptation, intention
B) Attachment, ownership, value
C) Size, weight, cost
D) Contract, deed, title
Answer: A
Rationale: Annexation (physical attachment), adaptation
(customized to property), intention (party’s intent at time of
attachment).
5. The bundle of legal rights includes all EXCEPT:
A) Right of possession
B) Right of control
C) Right of taxation
D) Right of disposition
Answer: C
Rationale: Taxation is a government power, not a right of
ownership.
, Page 4 of 148
6. Fee simple absolute is best described as:
A) Ownership for life only
B) Maximum ownership rights possible
C) Ownership subject to a condition
D) Leasehold interest
Answer: B
Rationale: Fee simple absolute is the highest form of ownership,
indefinite duration, no restrictions except government powers.
7. A life estate terminates upon:
A) Sale of property
B) Death of the life tenant
C) Payment of mortgage
D) Transfer to remainderman
Answer: B
Rationale: A life estate lasts for the life of the measuring
person (life tenant).
