PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027 | Page 1 | Passing Score: 75%
PERRY REAL ESTATE COLLEGE
PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE
SOLUTIONS!! 2026/2027
REAL ESTATE · Official Exam 2026/2027
100 75% CERTIFIED
QUESTIONS PASSING SCORE RECERTIFICATION
TABLE OF CONTENTS
Section 1 Real Property Ownership and Land Use Controls Q1-22
Section 2 Contracts and Agency Q23-44
Section 3 Real Estate Finance Q45-64
Section 4 Real Estate Valuation and Market Analysis Q65-82
Section 5 Real Estate Law and Closing Q83-100
SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
Instructions: Select the single
EXAM best
|100 answer for each
QUESTIONS| WITHquestion.
COMPLETEThisSOLUTIONS!!
exam is designed for Perry
2026/2027 Real Estate College Final
2026/2027
Exam preparation. Passing score: 75% (75 questions correct).
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 1 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 1 Question 1 of 100
A 55-year-old homeowner conveys her property to her niece but reserves a life estate for
herself. The niece sells her interest to a third party. Ten years later, the homeowner dies.
What happens to the property interest the third party purchased?
A. The third party gains full ownership because the life estate terminated upon the homeowner's
death, giving the remainder holder complete title
B. The third party loses all interest because the life estate holder's death voids any subsequent
transfers of the remainder interest
C. The property reverts to the homeowner's estate because the life estate was the controlling
interest
D. The third party must renegotiate with the homeowner's heirs to validate the remainder interest
Correct Answer: A
Rationale:
When the life tenant dies, the life estate terminates and the remainder becomes fee simple absolute. The
third party who purchased the remainder now holds full title. The life estate does not void the remainder; it
merely delays full possession.
Question 2 Question 2 of 100
A married couple in a community property state purchases a home using community funds,
but the deed lists only the husband's name. The husband attempts to sell without his wife's
consent. What is the legal status?
A. The sale becomes valid if the purchaser has no knowledge of the marriage
B. The sale is valid because only the husband's name appears on the deed
C. The sale is invalid because community property requires both spouses to consent to
conveyance of community real estate regardless of how title is held
D. The sale is partially valid, allowing transfer of only his one-half community interest
Correct Answer: A
Rationale:
In community property states, both spouses must consent to conveyance of community real property even
when title is in one spouse's name. Community funds establish community property, requiring the wife's
consent.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 2 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 3 Question 3 of 100
A developer records restrictive covenants prohibiting fences over four feet. A buyer
constructs a six-foot fence. The HOA demands removal. What is the likely outcome?
A. The HOA cannot enforce because it failed to provide a personal copy before closing
B. The buyer may keep the fence because building permits supersede private covenants
C. The buyer may keep the fence because restrictive covenants are voluntary
D. The buyer must modify the fence because recorded covenants run with the land and bind
subsequent purchasers with constructive notice
Correct Answer: D
Rationale:
Recorded restrictive covenants run with the land and bind subsequent purchasers with constructive
notice. The HOA has standing to enforce. Building permits do not override private covenants.
Question 4 Question 4 of 100
A property owner grants a utility easement across her parcel. She later subdivides and sells
the rear portion with the power lines. The new owner objects to access. What is the likely
result?
A. The utility loses its easement because severance extinguishes it
B. The utility retains its rights because commercial easements in gross for utilities are
transferrable and survive division of the servient estate
C. The new owner may block access because easements in gross are personal and terminate on
transfer
D. The utility must negotiate a new easement for the divided parcel
Correct Answer: B
Rationale:
Utility easements are typically commercial easements in gross that are assignable and survive transfer or
subdivision. The utility's right persists regardless of who owns the underlying property.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 3 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 5 Question 5 of 100
A city exercises eminent domain for a road widening. The owner argues the taking primarily
serves a private shopping center. What principle governs?
A. The taking is unconstitutional because the primary beneficiary is private
B. The taking is valid if the public purpose is legitimate, even if a private party also benefits
C. The private shopping center must compensate the owner directly
D. The taking is valid only if the road provides equal access without commercial benefit
Correct Answer: B
Rationale:
Under the public use doctrine, a taking is valid if it serves a legitimate public purpose even if private
parties also benefit. Courts broadly interpret public use to include infrastructure improvements with
incidental private benefit.
Question 6 Question 6 of 100
A neighbor's garage encroaches two feet onto the owner's property for 18 years. The
adverse possession statute requires 15 years. What is the likely outcome?
A. The neighbor cannot claim adverse possession because he paid taxes only on his own parcel
B. The owner must file suit within one year of discovery or lose rights permanently
C. The owner can demand removal because encroachments are never subject to adverse
possession
D. The neighbor may have acquired title through adverse possession if all statutory elements are
satisfied
Correct Answer: D
Rationale:
Adverse possession requires continuous, open, notorious, exclusive, and hostile possession for the
statutory period. If the garage encroachment meets all elements for 18 years in a 15-year state, the
neighbor may have acquired title.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 4 of
52
PERRY REAL ESTATE COLLEGE
PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE
SOLUTIONS!! 2026/2027
REAL ESTATE · Official Exam 2026/2027
100 75% CERTIFIED
QUESTIONS PASSING SCORE RECERTIFICATION
TABLE OF CONTENTS
Section 1 Real Property Ownership and Land Use Controls Q1-22
Section 2 Contracts and Agency Q23-44
Section 3 Real Estate Finance Q45-64
Section 4 Real Estate Valuation and Market Analysis Q65-82
Section 5 Real Estate Law and Closing Q83-100
SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
Instructions: Select the single
EXAM best
|100 answer for each
QUESTIONS| WITHquestion.
COMPLETEThisSOLUTIONS!!
exam is designed for Perry
2026/2027 Real Estate College Final
2026/2027
Exam preparation. Passing score: 75% (75 questions correct).
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 1 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 1 Question 1 of 100
A 55-year-old homeowner conveys her property to her niece but reserves a life estate for
herself. The niece sells her interest to a third party. Ten years later, the homeowner dies.
What happens to the property interest the third party purchased?
A. The third party gains full ownership because the life estate terminated upon the homeowner's
death, giving the remainder holder complete title
B. The third party loses all interest because the life estate holder's death voids any subsequent
transfers of the remainder interest
C. The property reverts to the homeowner's estate because the life estate was the controlling
interest
D. The third party must renegotiate with the homeowner's heirs to validate the remainder interest
Correct Answer: A
Rationale:
When the life tenant dies, the life estate terminates and the remainder becomes fee simple absolute. The
third party who purchased the remainder now holds full title. The life estate does not void the remainder; it
merely delays full possession.
Question 2 Question 2 of 100
A married couple in a community property state purchases a home using community funds,
but the deed lists only the husband's name. The husband attempts to sell without his wife's
consent. What is the legal status?
A. The sale becomes valid if the purchaser has no knowledge of the marriage
B. The sale is valid because only the husband's name appears on the deed
C. The sale is invalid because community property requires both spouses to consent to
conveyance of community real estate regardless of how title is held
D. The sale is partially valid, allowing transfer of only his one-half community interest
Correct Answer: A
Rationale:
In community property states, both spouses must consent to conveyance of community real property even
when title is in one spouse's name. Community funds establish community property, requiring the wife's
consent.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 2 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 3 Question 3 of 100
A developer records restrictive covenants prohibiting fences over four feet. A buyer
constructs a six-foot fence. The HOA demands removal. What is the likely outcome?
A. The HOA cannot enforce because it failed to provide a personal copy before closing
B. The buyer may keep the fence because building permits supersede private covenants
C. The buyer may keep the fence because restrictive covenants are voluntary
D. The buyer must modify the fence because recorded covenants run with the land and bind
subsequent purchasers with constructive notice
Correct Answer: D
Rationale:
Recorded restrictive covenants run with the land and bind subsequent purchasers with constructive
notice. The HOA has standing to enforce. Building permits do not override private covenants.
Question 4 Question 4 of 100
A property owner grants a utility easement across her parcel. She later subdivides and sells
the rear portion with the power lines. The new owner objects to access. What is the likely
result?
A. The utility loses its easement because severance extinguishes it
B. The utility retains its rights because commercial easements in gross for utilities are
transferrable and survive division of the servient estate
C. The new owner may block access because easements in gross are personal and terminate on
transfer
D. The utility must negotiate a new easement for the divided parcel
Correct Answer: B
Rationale:
Utility easements are typically commercial easements in gross that are assignable and survive transfer or
subdivision. The utility's right persists regardless of who owns the underlying property.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 3 of
52
, SECTION 1 | REAL PROPERTY OWNERSHIP AND LAND USE CONTROLS | Q1-Q22 | PERRY REAL ESTATE COLLEGE FINAL
EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 2026/2027
Question 5 Question 5 of 100
A city exercises eminent domain for a road widening. The owner argues the taking primarily
serves a private shopping center. What principle governs?
A. The taking is unconstitutional because the primary beneficiary is private
B. The taking is valid if the public purpose is legitimate, even if a private party also benefits
C. The private shopping center must compensate the owner directly
D. The taking is valid only if the road provides equal access without commercial benefit
Correct Answer: B
Rationale:
Under the public use doctrine, a taking is valid if it serves a legitimate public purpose even if private
parties also benefit. Courts broadly interpret public use to include infrastructure improvements with
incidental private benefit.
Question 6 Question 6 of 100
A neighbor's garage encroaches two feet onto the owner's property for 18 years. The
adverse possession statute requires 15 years. What is the likely outcome?
A. The neighbor cannot claim adverse possession because he paid taxes only on his own parcel
B. The owner must file suit within one year of discovery or lose rights permanently
C. The owner can demand removal because encroachments are never subject to adverse
possession
D. The neighbor may have acquired title through adverse possession if all statutory elements are
satisfied
Correct Answer: D
Rationale:
Adverse possession requires continuous, open, notorious, exclusive, and hostile possession for the
statutory period. If the garage encroachment meets all elements for 18 years in a 15-year state, the
neighbor may have acquired title.
PERRY REAL ESTATE COLLEGE FINAL EXAM |100 QUESTIONS| WITH COMPLETE SOLUTIONS!! 2026/2027 -- 2026/2027 | Passing Score: 75% | Page 4 of
52
