Legal Aspects of Real Estate UPDATED
Exam Questions and CORRECT Answers
A - CORRECT ANSWER - Under __________, legal disputes were settled on a case-by-
case basis before a judge.
a. the English common law c. the Mexican civil law
b. the Spanish legal system d. None of the above.
B - CORRECT ANSWER - Under __________ , legal disputes were settled by pre-
established statutes.
a. the English common law c. the Mexican judiciary
b. the Spanish civil law d. None of the above.
C - CORRECT ANSWER - The federal and state governments are divided into these
branches:
a. executive, statutory and legislative.
b. judicial, constitutional and executive.
c. legislative, executive and judicial.
d. constitutional, statutory and regulatory.
B - CORRECT ANSWER - __________ is the power of the state or local government to
protect the public well- being.
a. Eminent domain c. The power to tax
b. Police power d. None of the above.
D - CORRECT ANSWER - __________ is the right of the government to take private
property for public use.
a. Judicial authority c. The power to tax
b. Police power d. Eminent domain
,A - CORRECT ANSWER - __________ is the power of the state or local government to
generate revenue and
fund state and local governmental functions under their police power.
a. The power to tax c. The right to vote
b. The commerce clause d. The Spanish common law
B - CORRECT ANSWER - Covenants, conditions and restrictions (CC&Rs) which limit
subdivision sales to
nonminorities violate:
a. federal commerce clauses. c. rent control ordinances.
b. equal protection laws. d. All of the above.
D - CORRECT ANSWER - California has a three-tiered court system consisting of:
a. trial courts, superior courts and appellate courts.
b. superior courts, night courts and trial courts.
c. supra courts, the Supreme Court and night courts.
d. trial courts, appellate courts and the Supreme Court.
C - CORRECT ANSWER - __________ determines the proper physical location of the
court which will hear a case.
a. Jurisdiction c. Venue
b. Appellate d. Police power
B - CORRECT ANSWER - A __________ clause determines in advance which state's law
applies in a dispute.
a. due process c. diversity of citizenship
b. choice-of-law d. small claims
,D - CORRECT ANSWER - The right to possess and use property includes the right to:
a. occupy the property.
b. sell the property.
c. lease the property.
d. All of the above.
B - CORRECT ANSWER - Real estate is characterized as:
a. movable.
b. immovable.
c. personalty
d. none of the above
D - CORRECT ANSWER - The first component of real estate is land, which includes:
a. soil. c. reasonable airspace above the earth.
b. rocks. d. All of the above.
A - CORRECT ANSWER - A fixture is:
a. personal property which has become permanently attached to real estate.
b. real estate which has been condemned.
c. personal property which is no longer associated with real estate.
d. real estate which has been abandoned.
D - CORRECT ANSWER - The ownership interests in real estate include:
a. fee estates. c. leasehold estates.
b. life estates. d. All of the above.
C - CORRECT ANSWER - A person who holds a __________ interest in real estate has
the right to possess and
, control their property indefinitely.
a. leasehold c. fee estate
b. life estate d. profit a prendre
D - CORRECT ANSWER - A(n) __________ is an interest in a parcel of real estate
lasting the lifetime of a named
individual, called a controlling life.
a. periodic tenancy c. controlled interest
b. drilling right d. life estate
A - CORRECT ANSWER - A leasehold estate conveys to a tenant the right to
__________ a fee owner's real estate. a. possess c. destroy
b. sell d. All of the above.
A - CORRECT ANSWER - In a __________, a landlord and tenant agree to successive
rental periods of the same
length, such as in a month-to-month tenancy.
a. periodic tenancy c. tenancy-at-sufferance
b. tenancy-at-will d. life tenancy.
B - CORRECT ANSWER - A(n) ________ grants its holder a nonexclusive personal
privilege to use property.
a. easement c. covenant b. license d. partition
B - CORRECT ANSWER - __________ are improvements made to lease property to meet
the needs of the
occupying tenant
a. Mechanic's liens c. Lease agreements
b. Tenant improvements d. Encroachments
Exam Questions and CORRECT Answers
A - CORRECT ANSWER - Under __________, legal disputes were settled on a case-by-
case basis before a judge.
a. the English common law c. the Mexican civil law
b. the Spanish legal system d. None of the above.
B - CORRECT ANSWER - Under __________ , legal disputes were settled by pre-
established statutes.
a. the English common law c. the Mexican judiciary
b. the Spanish civil law d. None of the above.
C - CORRECT ANSWER - The federal and state governments are divided into these
branches:
a. executive, statutory and legislative.
b. judicial, constitutional and executive.
c. legislative, executive and judicial.
d. constitutional, statutory and regulatory.
B - CORRECT ANSWER - __________ is the power of the state or local government to
protect the public well- being.
a. Eminent domain c. The power to tax
b. Police power d. None of the above.
D - CORRECT ANSWER - __________ is the right of the government to take private
property for public use.
a. Judicial authority c. The power to tax
b. Police power d. Eminent domain
,A - CORRECT ANSWER - __________ is the power of the state or local government to
generate revenue and
fund state and local governmental functions under their police power.
a. The power to tax c. The right to vote
b. The commerce clause d. The Spanish common law
B - CORRECT ANSWER - Covenants, conditions and restrictions (CC&Rs) which limit
subdivision sales to
nonminorities violate:
a. federal commerce clauses. c. rent control ordinances.
b. equal protection laws. d. All of the above.
D - CORRECT ANSWER - California has a three-tiered court system consisting of:
a. trial courts, superior courts and appellate courts.
b. superior courts, night courts and trial courts.
c. supra courts, the Supreme Court and night courts.
d. trial courts, appellate courts and the Supreme Court.
C - CORRECT ANSWER - __________ determines the proper physical location of the
court which will hear a case.
a. Jurisdiction c. Venue
b. Appellate d. Police power
B - CORRECT ANSWER - A __________ clause determines in advance which state's law
applies in a dispute.
a. due process c. diversity of citizenship
b. choice-of-law d. small claims
,D - CORRECT ANSWER - The right to possess and use property includes the right to:
a. occupy the property.
b. sell the property.
c. lease the property.
d. All of the above.
B - CORRECT ANSWER - Real estate is characterized as:
a. movable.
b. immovable.
c. personalty
d. none of the above
D - CORRECT ANSWER - The first component of real estate is land, which includes:
a. soil. c. reasonable airspace above the earth.
b. rocks. d. All of the above.
A - CORRECT ANSWER - A fixture is:
a. personal property which has become permanently attached to real estate.
b. real estate which has been condemned.
c. personal property which is no longer associated with real estate.
d. real estate which has been abandoned.
D - CORRECT ANSWER - The ownership interests in real estate include:
a. fee estates. c. leasehold estates.
b. life estates. d. All of the above.
C - CORRECT ANSWER - A person who holds a __________ interest in real estate has
the right to possess and
, control their property indefinitely.
a. leasehold c. fee estate
b. life estate d. profit a prendre
D - CORRECT ANSWER - A(n) __________ is an interest in a parcel of real estate
lasting the lifetime of a named
individual, called a controlling life.
a. periodic tenancy c. controlled interest
b. drilling right d. life estate
A - CORRECT ANSWER - A leasehold estate conveys to a tenant the right to
__________ a fee owner's real estate. a. possess c. destroy
b. sell d. All of the above.
A - CORRECT ANSWER - In a __________, a landlord and tenant agree to successive
rental periods of the same
length, such as in a month-to-month tenancy.
a. periodic tenancy c. tenancy-at-sufferance
b. tenancy-at-will d. life tenancy.
B - CORRECT ANSWER - A(n) ________ grants its holder a nonexclusive personal
privilege to use property.
a. easement c. covenant b. license d. partition
B - CORRECT ANSWER - __________ are improvements made to lease property to meet
the needs of the
occupying tenant
a. Mechanic's liens c. Lease agreements
b. Tenant improvements d. Encroachments
