RE Broker Exam UPDATED ACTUAL
Exam Questions and CORRECT Answers
Co-operatives - CORRECT ANSWER - Ownership of shares in owning corporation, plus
proprietary lease in a unit. The corporation has sole, undivided ownership.
Easement Appurtenant - CORRECT ANSWER - Dominant tenant's right to use or restrict
adjacent servient tenant by necessity to landlocked owners. (Attaches to the real estate)
Easement in Gross - CORRECT ANSWER - Personal easement, non-transferable and ends
with the death of the easement holder. Commercial easements in gross are transferable, granted
to the business.
License - CORRECT ANSWER - Personal, doesn't attach (ends with death or contract),
non-transferable, revocable
Lien theory state - CORRECT ANSWER - Lender of mortgaged property holds equitable
title rather than legal title; borrower holds legal title.
Title theory state - CORRECT ANSWER - Lender holds legal title to the mortgaged
property until the mortgagor satisfies the terms and obligations of the loan.
Superior liens - CORRECT ANSWER - By rank:
1) real estate taxes
2) special assessments
3) federal estate tax
4) state inheritance
Junior liens - CORRECT ANSWER - By date of recording:
,Federal income tax
Judgment
Mortgage
Vendor's
Mechanics
Mortgage Lien - CORRECT ANSWER - Liquidation of collateral property
Judicial mortgage lien - CORRECT ANSWER - Court ordered, deficiency judgments,
redemption rights
Non-judicial mortgage lien - CORRECT ANSWER - "Power of sale" granted to lender, no
deficiency or redemption rights.
Strict mortgage lien - CORRECT ANSWER - Court orders legal transfer of title directly to
the lender without public sale
Notice - CORRECT ANSWER - How ownership is evidenced to the public
Actual notice - CORRECT ANSWER - Knowledge acquired directly through evidence
Constructive notice - CORRECT ANSWER - Knowledge one could have obtained
(lawfully) - recording of the notice
Deed requirements - CORRECT ANSWER - 1) Grantor
2) Grantee
3) In writing
4) Legal description of land
5) Granting clause
, 6) Consideration
7) Grantor's signature
8) Acknowledgment
9) Delivery + acceptance
Bargain and sale deed - CORRECT ANSWER - "I own but I won't defend"
General warranty deed - CORRECT ANSWER - "I own and I will defend"
Special warranty deed - CORRECT ANSWER - "I own and I warranty myself only"
Quitclaim deed - CORRECT ANSWER - "I may/may not own and I won't defend"
Documentary stamp tax - CORRECT ANSWER - (transfer tax) tax on conveyance of real
property based on price of property conveyed, ad valorem
Order of transfer: testate with heirs - CORRECT ANSWER - 1) Creditors
2) Homestead
3) Heirs by will
Order of transfer: intestate with heirs - CORRECT ANSWER - 1) Creditors
2) Homestead
3) Heirs by laws of descent
Order of transfer: intestate without heirs - CORRECT ANSWER - 1) Creditors
2) Escheats to the state
Examples of evidence of title - CORRECT ANSWER - Title insurance
Exam Questions and CORRECT Answers
Co-operatives - CORRECT ANSWER - Ownership of shares in owning corporation, plus
proprietary lease in a unit. The corporation has sole, undivided ownership.
Easement Appurtenant - CORRECT ANSWER - Dominant tenant's right to use or restrict
adjacent servient tenant by necessity to landlocked owners. (Attaches to the real estate)
Easement in Gross - CORRECT ANSWER - Personal easement, non-transferable and ends
with the death of the easement holder. Commercial easements in gross are transferable, granted
to the business.
License - CORRECT ANSWER - Personal, doesn't attach (ends with death or contract),
non-transferable, revocable
Lien theory state - CORRECT ANSWER - Lender of mortgaged property holds equitable
title rather than legal title; borrower holds legal title.
Title theory state - CORRECT ANSWER - Lender holds legal title to the mortgaged
property until the mortgagor satisfies the terms and obligations of the loan.
Superior liens - CORRECT ANSWER - By rank:
1) real estate taxes
2) special assessments
3) federal estate tax
4) state inheritance
Junior liens - CORRECT ANSWER - By date of recording:
,Federal income tax
Judgment
Mortgage
Vendor's
Mechanics
Mortgage Lien - CORRECT ANSWER - Liquidation of collateral property
Judicial mortgage lien - CORRECT ANSWER - Court ordered, deficiency judgments,
redemption rights
Non-judicial mortgage lien - CORRECT ANSWER - "Power of sale" granted to lender, no
deficiency or redemption rights.
Strict mortgage lien - CORRECT ANSWER - Court orders legal transfer of title directly to
the lender without public sale
Notice - CORRECT ANSWER - How ownership is evidenced to the public
Actual notice - CORRECT ANSWER - Knowledge acquired directly through evidence
Constructive notice - CORRECT ANSWER - Knowledge one could have obtained
(lawfully) - recording of the notice
Deed requirements - CORRECT ANSWER - 1) Grantor
2) Grantee
3) In writing
4) Legal description of land
5) Granting clause
, 6) Consideration
7) Grantor's signature
8) Acknowledgment
9) Delivery + acceptance
Bargain and sale deed - CORRECT ANSWER - "I own but I won't defend"
General warranty deed - CORRECT ANSWER - "I own and I will defend"
Special warranty deed - CORRECT ANSWER - "I own and I warranty myself only"
Quitclaim deed - CORRECT ANSWER - "I may/may not own and I won't defend"
Documentary stamp tax - CORRECT ANSWER - (transfer tax) tax on conveyance of real
property based on price of property conveyed, ad valorem
Order of transfer: testate with heirs - CORRECT ANSWER - 1) Creditors
2) Homestead
3) Heirs by will
Order of transfer: intestate with heirs - CORRECT ANSWER - 1) Creditors
2) Homestead
3) Heirs by laws of descent
Order of transfer: intestate without heirs - CORRECT ANSWER - 1) Creditors
2) Escheats to the state
Examples of evidence of title - CORRECT ANSWER - Title insurance
