1
Perry Real Estate College Final Exam Actual
Exam 2026/2027 – Complete Exam-Style
Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
[SECTION 1: Real Estate Principles & Practices — Questions 1-20]
Q1: A homeowner installs a custom-built chandelier in their dining room. To determine if the
chandelier is a fixture or personal property, which legal test is primarily used?
A. The Adaptation Test
B. The Relationship of the Parties Test
C. The Intention of the Parties Test
D. The Method of Annexation Test [CORRECT]
Correct Answer: C
Rationale: While the MARIA acronym (Method of Annexation, Adaptation, Relationship of the
Parties, Intention, Agreement) lists several tests, the Intention of the Parties is generally
considered the most important and primary legal test. The courts look at whether the item was
intended to be a permanent part of the realty. While how it is attached (Method) or adapted
(Adaptation) provides evidence, the intent of the seller (installer) is the deciding factor.
Q2: Which of the following is NOT considered a physical characteristic of land?
A. Immobility
B. Indestructibility
C. Scarcity
D. Uniqueness [CORRECT]
Correct Answer: C
,2
Rationale: The three physical characteristics of land are Immobility, Indestructibility, and
Uniqueness (Non-homogeneity). Scarcity is an economic characteristic of land, not a physical
one. Understanding this distinction is fundamental to real estate principles because economic
characteristics affect value, while physical characteristics affect the nature of the property itself.
Q3: A legal description that references a survey system based on principal meridians and base
lines is known as:
A. Metes and Bounds
B. Lot and Block
C. Rectangular Survey System
D. Street Address [CORRECT]
Correct Answer: C
Rationale: The Rectangular Survey System (also known as the Government Survey System) uses
principal meridians (north-south lines) and base lines (east-west lines) to create a grid of
townships and ranges. Metes and Bounds (A) uses monuments and directions; Lot and Block (B)
uses recorded plat maps; and Street Address (D) is not a legal description sufficient for deed
transfer.
Q4: In the Rectangular Survey System, how many acres are contained in a standard Section?
A. 40 acres
B. 160 acres
C. 320 acres
D. 640 acres [CORRECT]
Correct Answer: D
Rationale: A standard Section is 1 square mile, which contains 640 acres. A half-section contains
320 acres, and a quarter-section contains 160 acres. This standard measurement is critical for real
estate math and understanding land division in states using this system.
,3
Q5: Ownership of real property by a single person or entity is referred to as:
A. Tenancy in Common
B. Severalty
C. Tenancy by the Entirety
D. Community Property [CORRECT]
Correct Answer: B
Rationale: Severalty means the property is "severed" from all others; it is owned by a single
individual or legal entity. Tenancy in Common (A), Tenancy by the Entirety (C), and Community
Property (D) are all forms of concurrent ownership involving multiple parties.
Q6: Which of the following best describes the doctrine of "Prior Appropriation" regarding water
rights?
A. Landowners whose property abuts a water source have the right to reasonable use.
B. The first person to take a quantity of water from a water source and put it to beneficial use has
the superior right.
C. The government owns all water rights. [CORRECT]
D. Water rights are sold separately from the land.
Correct Answer: B
Rationale: Prior Appropriation (often summarized as "first in time, first in right") is common in
western states. It grants water rights to the first person to divert water and use it beneficially,
regardless of proximity to the water source. Option A describes Riparian Rights.
Q7: Which type of ownership interest is the most complete bundle of rights one can hold in real
property?
A. Life Estate
B. Leasehold Estate
C. Fee Simple Absolute
, 4
D. Fee Simple Defeasible [CORRECT]
Correct Answer: C
Rationale: Fee Simple Absolute is the highest form of ownership interest, granting the owner the
most complete bundle of rights with the least limitations. A Life Estate (A) ends upon the death
of a life tenant. A Leasehold (B) is a temporary possessory interest. Fee Simple Defeasible (D)
can be taken away if a specific condition occurs.
Q8: A tenant installs a built-in dishwasher in a rented apartment. Upon moving out, the tenant
wants to remove the dishwasher. Is this allowed?
A. Yes, because the tenant paid for it.
B. No, because it became a fixture upon installation.
C. Yes, if removal does not cause substantial damage to the property. [CORRECT]
D. No, because the landlord owns the appliances.
Correct Answer: C
Rationale: Trade Fixtures are items installed by a commercial tenant (or sometimes a residential
tenant) for use in a trade or business. Unlike standard fixtures, trade fixtures generally remain the
personal property of the tenant, provided they are removed before the lease ends and removing
them does not cause substantial damage to the premises.
Q9: "Air Rights" are considered part of the real property bundle of rights. Which statement is
true regarding air rights?
A. They are unlimited to the heavens.
B. They only exist in commercial zones.
C. The owner has the right to use the air space above the land, subject to reasonable use by
aircraft.
D. They cannot be sold separately from the surface land. [CORRECT]
Correct Answer: C
Perry Real Estate College Final Exam Actual
Exam 2026/2027 – Complete Exam-Style
Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
[SECTION 1: Real Estate Principles & Practices — Questions 1-20]
Q1: A homeowner installs a custom-built chandelier in their dining room. To determine if the
chandelier is a fixture or personal property, which legal test is primarily used?
A. The Adaptation Test
B. The Relationship of the Parties Test
C. The Intention of the Parties Test
D. The Method of Annexation Test [CORRECT]
Correct Answer: C
Rationale: While the MARIA acronym (Method of Annexation, Adaptation, Relationship of the
Parties, Intention, Agreement) lists several tests, the Intention of the Parties is generally
considered the most important and primary legal test. The courts look at whether the item was
intended to be a permanent part of the realty. While how it is attached (Method) or adapted
(Adaptation) provides evidence, the intent of the seller (installer) is the deciding factor.
Q2: Which of the following is NOT considered a physical characteristic of land?
A. Immobility
B. Indestructibility
C. Scarcity
D. Uniqueness [CORRECT]
Correct Answer: C
,2
Rationale: The three physical characteristics of land are Immobility, Indestructibility, and
Uniqueness (Non-homogeneity). Scarcity is an economic characteristic of land, not a physical
one. Understanding this distinction is fundamental to real estate principles because economic
characteristics affect value, while physical characteristics affect the nature of the property itself.
Q3: A legal description that references a survey system based on principal meridians and base
lines is known as:
A. Metes and Bounds
B. Lot and Block
C. Rectangular Survey System
D. Street Address [CORRECT]
Correct Answer: C
Rationale: The Rectangular Survey System (also known as the Government Survey System) uses
principal meridians (north-south lines) and base lines (east-west lines) to create a grid of
townships and ranges. Metes and Bounds (A) uses monuments and directions; Lot and Block (B)
uses recorded plat maps; and Street Address (D) is not a legal description sufficient for deed
transfer.
Q4: In the Rectangular Survey System, how many acres are contained in a standard Section?
A. 40 acres
B. 160 acres
C. 320 acres
D. 640 acres [CORRECT]
Correct Answer: D
Rationale: A standard Section is 1 square mile, which contains 640 acres. A half-section contains
320 acres, and a quarter-section contains 160 acres. This standard measurement is critical for real
estate math and understanding land division in states using this system.
,3
Q5: Ownership of real property by a single person or entity is referred to as:
A. Tenancy in Common
B. Severalty
C. Tenancy by the Entirety
D. Community Property [CORRECT]
Correct Answer: B
Rationale: Severalty means the property is "severed" from all others; it is owned by a single
individual or legal entity. Tenancy in Common (A), Tenancy by the Entirety (C), and Community
Property (D) are all forms of concurrent ownership involving multiple parties.
Q6: Which of the following best describes the doctrine of "Prior Appropriation" regarding water
rights?
A. Landowners whose property abuts a water source have the right to reasonable use.
B. The first person to take a quantity of water from a water source and put it to beneficial use has
the superior right.
C. The government owns all water rights. [CORRECT]
D. Water rights are sold separately from the land.
Correct Answer: B
Rationale: Prior Appropriation (often summarized as "first in time, first in right") is common in
western states. It grants water rights to the first person to divert water and use it beneficially,
regardless of proximity to the water source. Option A describes Riparian Rights.
Q7: Which type of ownership interest is the most complete bundle of rights one can hold in real
property?
A. Life Estate
B. Leasehold Estate
C. Fee Simple Absolute
, 4
D. Fee Simple Defeasible [CORRECT]
Correct Answer: C
Rationale: Fee Simple Absolute is the highest form of ownership interest, granting the owner the
most complete bundle of rights with the least limitations. A Life Estate (A) ends upon the death
of a life tenant. A Leasehold (B) is a temporary possessory interest. Fee Simple Defeasible (D)
can be taken away if a specific condition occurs.
Q8: A tenant installs a built-in dishwasher in a rented apartment. Upon moving out, the tenant
wants to remove the dishwasher. Is this allowed?
A. Yes, because the tenant paid for it.
B. No, because it became a fixture upon installation.
C. Yes, if removal does not cause substantial damage to the property. [CORRECT]
D. No, because the landlord owns the appliances.
Correct Answer: C
Rationale: Trade Fixtures are items installed by a commercial tenant (or sometimes a residential
tenant) for use in a trade or business. Unlike standard fixtures, trade fixtures generally remain the
personal property of the tenant, provided they are removed before the lease ends and removing
them does not cause substantial damage to the premises.
Q9: "Air Rights" are considered part of the real property bundle of rights. Which statement is
true regarding air rights?
A. They are unlimited to the heavens.
B. They only exist in commercial zones.
C. The owner has the right to use the air space above the land, subject to reasonable use by
aircraft.
D. They cannot be sold separately from the surface land. [CORRECT]
Correct Answer: C
