NATIONAL PEARSON VUE REAL ESTATE EXAM PREP WORKBOOK

NATIONAL PEARSON VUE REAL ESTATE EXAM PREP WORKBOOK TRUE OR FALSE - Economic obsolescence results from an inharmonious land use in a neighborhood. The statement is true. An obsolescence typically means there is a negative effect on a property that may or may not be curable. The economic obsolescence results in a negative value effect to a property due to something outside the property lines (e.g., a shopping center on the other side of the subdivision retaining wall without a buffer zone). Economic obsolescence is rarely curable. TRUE OR FALSE - A consideration in determining whether or not an object is a fixture includes the adaptation of the object. The statement is true. The three measures of a fixture are (1) it is attached, (2) it is through adaptation that it is to remain with real property, or (3) through an agreement of the parties, the item is treated as a fixture and remains with the real property. TRUE OR FALSE - An encroachment can be found on the deed. The statement is false. An encroachment can be found on a survey or an improvement location certificate (ILC). TRUE OR FALSE - Rita Smith leases a restaurant to Diego Jones for five years. Jones installs his own ovens, booths, counters, and other equipment. These items are considered personal property and can be removed at the end of the lease. The statement is true. These are called trade fixtures. Personal and real items are used for a trade- a business. The trade fixtures are the property of the tenant unless the tenant does not remove them no later than termination of the lease; they then become real property, and belong to the owner of the real estate. TRUE OR FALSE - The sellers removed the attached microwave, which had not been excluded in the sale. The sellers are in breach. The statement is true. It is typical for the microwave to adapted and sometimes is attached; therefore, it must stay with the real property. If the seller wanted it, it needed to have been excluded in the written contract. TRUE OR FALSE - A shared driveway and a party wall are both examples of easements in gross. The statement is false.