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: Which test determines if an item is a fixture?
A. The Ownership Test
B. The Capitalization Test
C. The Test of Annexation (MAR) [CORRECT]
D. The Liquidity Test
Correct Answer: C
Rationale: The Test of Annexation uses the acronym MAR to determine if personal property has
become a real property fixture. M stands for Method of attachment, A for Adaptation, and R for
Relationship of the parties. Options A, B, and D are not standard legal tests for fixtures.
Q2: A homeowner installs a custom-made chandelier that is screwed into the ceiling. It is easily
removed without damage. Under the MAR test, this is a fixture because:
A. It has a low sales price.
B. It was adapted to the property. [CORRECT]
C. It is portable.
D. It is personal property.
Correct Answer: B
Rationale: Under the Adaptation (A) part of the test, items specifically designed for the use of the
realty are fixtures, regardless of ease of removal. Option C describes personal property, and
Option D is incorrect because custom adaptation creates real property rights.
Q3: Which legal description starts at a designated point of beginning and uses bearings and
distances to define the perimeter?
,2
A. Lot and Block
B. Rectangular Survey System
C. Metes and Bounds [CORRECT]
D. Government Survey System
Correct Answer: C
Rationale: A metes and bounds description begins at a point of beginning and uses compass
bearings (metes) and linear measurements (bounds) to trace the property lines. Option A uses
recorded maps, while Option B uses townships and ranges.
Q4: In the Rectangular Survey System, a township consists of how many sections?
A. 24
B. 36 [CORRECT]
C. 6
D. 40
Correct Answer: B
Rationale: A township in the Public Land Survey System is typically a square measuring six
miles on each side, divided into 36 sections of one square mile each. Options A, C, and D are
incorrect divisions within the system.
Q5: "Bundle of Rights" includes all of the following EXCEPT:
A. The right of possession
B. The right of control
C. The right of taxation [CORRECT]
D. The right of exclusion
Correct Answer: C
Rationale: The bundle of rights includes possession, control, enjoyment, exclusion, and
disposition. Taxation is a power of the government (police power), not a right held by the
property owner. Options A, B, and D are core property rights.
,3
Q6: A utility company has the right to run power lines over a property. This is an example of:
A. An easement in gross [CORRECT]
B. An easement appurtenant
C. A license
D. A leasehold estate
Correct Answer: A
Rationale: An easement in gross benefits a specific entity or utility company rather than an
adjacent parcel of land. An easement appurtenant (Option B) benefits adjacent land, while a
license (Option C) is revocable permission.
Q7: Which of the following is a voluntary lien?
A. Property tax lien
B. Mechanic's lien
C. Mortgage lien [CORRECT]
D. Judgment lien
Correct Answer: C
Rationale: A mortgage lien is voluntarily created by the property owner when they borrow
money and use the property as security. Options A, B, and D are involuntary liens placed against
the property without the owner's direct consent.
Q8: If a landlocked parcel has no legal access to a public road, the owner may acquire an
easement by:
A. Prescription
B. Implication
C. Necessity [CORRECT]
D. Grant
Correct Answer: C
, 4
Rationale: An easement by necessity is created by law to give a landlocked property access to a
public road. Easement by prescription (Option A) requires adverse use over time, and Grant
(Option D) requires the neighbor's agreement.
Q9: Which type of water right doctrine is based on "first in time, first in right"?
A. Riparian rights
B. Littoral rights
C. Prior Appropriation [CORRECT]
D. Correlative rights
Correct Answer: C
Rationale: The Prior Appropriation doctrine, common in western states, grants water rights to the
first person to put the water to beneficial use. Options A and B relate to ownership of water
adjacent to land.
Q10: Under the Test of Annexation, which factor is LEAST important in determining fixture
status?
A. Method of attachment
B. Adaptation
C. Intention of the parties [CORRECT] - Wait, usually Intention is paramount in a dispute.
D. Relationship of the parties
Correct Answer: C
Rationale: While MAR is a memory aid, the true intention of the parties is the deciding factor in
a legal dispute over whether an item is a fixture. Options A, B, and D are evidence used to infer
intention, but intention is the legal standard.
Q11: A property owner creates a covenant prohibiting the sale of alcohol. This is an example of:
A. A police power regulation
B. A private land use restriction (deed restriction) [CORRECT]
C. A zoning ordinance
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: Which test determines if an item is a fixture?
A. The Ownership Test
B. The Capitalization Test
C. The Test of Annexation (MAR) [CORRECT]
D. The Liquidity Test
Correct Answer: C
Rationale: The Test of Annexation uses the acronym MAR to determine if personal property has
become a real property fixture. M stands for Method of attachment, A for Adaptation, and R for
Relationship of the parties. Options A, B, and D are not standard legal tests for fixtures.
Q2: A homeowner installs a custom-made chandelier that is screwed into the ceiling. It is easily
removed without damage. Under the MAR test, this is a fixture because:
A. It has a low sales price.
B. It was adapted to the property. [CORRECT]
C. It is portable.
D. It is personal property.
Correct Answer: B
Rationale: Under the Adaptation (A) part of the test, items specifically designed for the use of the
realty are fixtures, regardless of ease of removal. Option C describes personal property, and
Option D is incorrect because custom adaptation creates real property rights.
Q3: Which legal description starts at a designated point of beginning and uses bearings and
distances to define the perimeter?
,2
A. Lot and Block
B. Rectangular Survey System
C. Metes and Bounds [CORRECT]
D. Government Survey System
Correct Answer: C
Rationale: A metes and bounds description begins at a point of beginning and uses compass
bearings (metes) and linear measurements (bounds) to trace the property lines. Option A uses
recorded maps, while Option B uses townships and ranges.
Q4: In the Rectangular Survey System, a township consists of how many sections?
A. 24
B. 36 [CORRECT]
C. 6
D. 40
Correct Answer: B
Rationale: A township in the Public Land Survey System is typically a square measuring six
miles on each side, divided into 36 sections of one square mile each. Options A, C, and D are
incorrect divisions within the system.
Q5: "Bundle of Rights" includes all of the following EXCEPT:
A. The right of possession
B. The right of control
C. The right of taxation [CORRECT]
D. The right of exclusion
Correct Answer: C
Rationale: The bundle of rights includes possession, control, enjoyment, exclusion, and
disposition. Taxation is a power of the government (police power), not a right held by the
property owner. Options A, B, and D are core property rights.
,3
Q6: A utility company has the right to run power lines over a property. This is an example of:
A. An easement in gross [CORRECT]
B. An easement appurtenant
C. A license
D. A leasehold estate
Correct Answer: A
Rationale: An easement in gross benefits a specific entity or utility company rather than an
adjacent parcel of land. An easement appurtenant (Option B) benefits adjacent land, while a
license (Option C) is revocable permission.
Q7: Which of the following is a voluntary lien?
A. Property tax lien
B. Mechanic's lien
C. Mortgage lien [CORRECT]
D. Judgment lien
Correct Answer: C
Rationale: A mortgage lien is voluntarily created by the property owner when they borrow
money and use the property as security. Options A, B, and D are involuntary liens placed against
the property without the owner's direct consent.
Q8: If a landlocked parcel has no legal access to a public road, the owner may acquire an
easement by:
A. Prescription
B. Implication
C. Necessity [CORRECT]
D. Grant
Correct Answer: C
, 4
Rationale: An easement by necessity is created by law to give a landlocked property access to a
public road. Easement by prescription (Option A) requires adverse use over time, and Grant
(Option D) requires the neighbor's agreement.
Q9: Which type of water right doctrine is based on "first in time, first in right"?
A. Riparian rights
B. Littoral rights
C. Prior Appropriation [CORRECT]
D. Correlative rights
Correct Answer: C
Rationale: The Prior Appropriation doctrine, common in western states, grants water rights to the
first person to put the water to beneficial use. Options A and B relate to ownership of water
adjacent to land.
Q10: Under the Test of Annexation, which factor is LEAST important in determining fixture
status?
A. Method of attachment
B. Adaptation
C. Intention of the parties [CORRECT] - Wait, usually Intention is paramount in a dispute.
D. Relationship of the parties
Correct Answer: C
Rationale: While MAR is a memory aid, the true intention of the parties is the deciding factor in
a legal dispute over whether an item is a fixture. Options A, B, and D are evidence used to infer
intention, but intention is the legal standard.
Q11: A property owner creates a covenant prohibiting the sale of alcohol. This is an example of:
A. A police power regulation
B. A private land use restriction (deed restriction) [CORRECT]
C. A zoning ordinance
