Deck 16: Real Property and Insurance Law

Question 1

The power of a government to take land for public use from private citizens for just compensation is called

A) zoning rights.
B) easement.
C) eminent domain.
D) community property.

Answer 1

C

Question 2

Margaret owns 3,000 acres of land in Texas. This is an example of which of the following?

A) Physical property
B) Real property
C) Personal property
D) Property held in fee

Answer 2

B

Question 3

Fee simple absolute ownership is

A) ownership to the greatest degree possible.
B) partial ownership.
C) ownership with limitations.
D) ownership with limited rights.

Answer 3

A

Question 4

Which of the following is an example of real property?

A) An acre of land
B) A book
C) A horse
D) Stock investments

Question 5

personal property is personal property that represents a set of rights and interests but has no real physical existence.

A) Intangible
B) Tangible
C) Intellectual
D) Ephemeral

Question 6

Which of the following is not an example of real property?

A) An acre of land
B) The minerals under an acre of land
C) The air above an acre of land
D) None of these choices is correct.

Question 7

Stocks, bonds, intellectual property rights, computers, and iPhones are all examples of which of the following?

A) Real property
B) Personal property
C) Material property
D) Immaterial property

Question 8

Property that is movable or intangible and is not real property is called

A) real property.
B) personal property.
C) property held in fee.
D) None of these choices is correct.

Question 9

A form of property ownership entitling the owner to use, possess, or dispose of the property as she chooses during her lifetime, and which on her death descends to her heirs is called

A) fee simple absolute ownership.
B) tenancy in common.
C) joint tenancy.
D) tenancy by the entirety.

Question 10

Which of the following is not an example of real property?

A) An acre of land
B) The minerals under an acre of land
C) The air above an acre of land
D) A car

Question 11

Roger owns a car, a house, and a large field. Roger has

A) real property only.
B) personal property only.
C) real and personal property.
D) tangible personal property only.

Question 12

Immovable property consisting of land and the buildings and plant life on it is called

A) property.
B) real property.
C) personal property.
D) property held in fee.

Question 13

Which of the following is not an example of personal property?

A) An iPhone
B) A house
C) A horse
D) Intellectual property rights

Question 14

Which of the following statements is true regarding property law?

A) About a quarter of all paralegals work in property law.
B) About one-half of all paralegals work in property law.
C) Almost all paralegals work in property law.
D) Paralegals never work in property law.

Question 15

Using its power of eminent domain, the government takes David's land because it is part of the route for a new highway. The government must

A) fairly compensate David for taking his land.
B) pay David at least half of the market value of his land.
C) let David continue to live on the land for at least one year.
D) notify David's neighbors of the taking.

Question 16

Fee simple absolute is sometimes just called

A) fee absolute.
B) simple absolute.
C) fee simple.
D) simple fee.

Question 17

An example of a restriction to the use of a property owned in fee simple absolute is

A) a neighbor's request not to fence a border of the property.
B) zoning laws prohibiting an owner from running a business on the property.
C) a public petition against a new business being built on the property.
D) All of these choices are correct.

Question 18

Property that has physical substance is

A) physical property.
B) real property.
C) personal property.
D) property held in fee.

Question 19

Which of the following is an example of personal property?

A) An acre of land
B) The minerals under an acre of land
C) The air above an acre of land
D) An iPhone

Question 20

The government decides it wants Maria's land for use for a public highway. The government can take Maria's land using the power of

A) zoning rights.
B) easement.
C) eminent domain.
D) community property.

Question 21

Jack and Betsy co-own a small stable. When Betsy dies, her interest in the stable passes to Jack and not to Betsy's heirs. Jack and Betsy must have owned the stable in

A) community property.
B) tenancy in common.
C) joint tenancy.
D) inheritable tenancy.

Question 22

The sale of real property normally involves three parties. Which of the following is not one of these three parties?

A) Escrow agent
B) Seller
C) Buyer
D) Paralegal

Question 23

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs upon that that party's death is called

A) community property.
B) tenancy in common.
C) joint tenancy.
D) tenancy by the entirety.

Question 24

Frank is a life tenant to a house from his uncle. Which of the following statements is true regarding the house?

A) Frank must live in the house.
B) Frank may tear down the house.
C) Frank may not do anything to the house that would reduce its value for the owner of the future interest in it.
D) None of these choices is correct.

Question 25

money is a sum of money that the buyer puts up along with the offer to buy the property. By doing so, the buyer indicates that he or she is making a serious offer.

A) Real
B) Earnest
C) Contractual
D) Down

Question 26

Co-ownership of property by husbands and wives that is similar to a joint tenancy, except that the spouses cannot separately transfer their interests in the property during their lifetimes, is called

A) a tenancy in common.
B) a joint tenancy.
C) community property.
D) a tenancy by the entirety.

Question 27

Margaret crosses Phyllis's land to get to Margaret's house. This is an example of which type of easement?

A) A right-of-way easement
B) A solar easement
C) A driving easement
D) A historic preservation easement

Question 28

An interest in real property that is transferred to another for the life of that individual is called a

A) fee simple.
B) life estate.
C) future interest.
D) personal property interest.

Question 29

Which of the following statements is not true of life estates?

A) The life tenant cannot do anything to the property that would reduce its value for the owner of the future interest in it.
B) The life tenant may use the property for rental income.
C) The life tenant has interest in the property for the duration of his or her life.
D) The life tenant must live on the property.

Question 30

After a buyer has made an offer on a piece of real estate, the seller may do which of the following?

A) Accept the offer
B) Reject the offer
C) Make a counteroffer
D) All of these choices are correct.

Question 31

Julia lives in a historic house in Washington, D.C. She is not allowed to change the outside appearance of the house. This is an example of which type of easement?

A) A right-of-way easement
B) A solar easement
C) A driving easement
D) A historic preservation easement

Question 32

The right of another to use the owner's land for a limited purpose is called a(n)

A) domain.
B) easement.
C) allowance.
D) lease.

Question 33

A gas company is allowed to maintain the gas lines that cross Wilbur's property due to which of the following?

A) Zoning rights
B) Easement
C) Eminent domain
D) Community property

Question 34

is the co-ownership of property in which each party owns an undivided interest in the property, and on the death of one of them, his or her interest automatically passes to the other tenant or tenants.

A) Community property
B) Tenancy in common
C) Joint tenancy
D) Tenancy by the entirety

Question 35

Mary and Mona co-own a small bakery. When Mary dies, her interest in the bakery passes to her daughter, Rachel. Mary and Mona must have owned the bakery in

A) community property.
B) tenancy in common.
C) joint tenancy.
D) inheritable tenancy.

Question 36

is the co-ownership of property by spouses in which each spouse owns an undivided one- half interest of the property that is acquired during the marriage.

A) Tenancy in common
B) Community property
C) Joint tenancy
D) Tenancy by the entirety

Question 37

Ariel is a life tenant to a house from her grandmother. Which of the following statements is true regarding the house?

A) Ariel must live in the house.
B) Ariel may tear down the house.
C) Ariel does not have to live in the house.
D) None of these choices is correct.

Question 38

Which of the following should be specified in an offer to buy real estate?

A) A description of the property
B) The price of the property
C) Designations of which party will bear the costs of repairs needed on the property
D) All of these choices are correct.

Question 39

Renters of property are often referred to as which of the following?

A) Tenants
B) Inhabitors
C) Residents
D) None of these choices is correct.

Question 40

Which of the following does not need to be specified in an offer to buy real estate?

A) A description of the property
B) The price of the property
C) Designations of which party will bear the costs of repairs needed on the property
D) None of these choices is correct.

Question 41

Which of the following statements is true regarding title examinations of commercial properties?

A) Approval of local government zoning authorities may be needed.
B) An environmental regulator may need to sign off on the property's use.
C) There may need to be investigation for prior environmental contaminants.
D) All of these choices are correct.

Question 42

Which of the following is not likely to function as an escrow agent in a sale of real property?

A) A paralegal
B) A title company
C) A bank
D) A special escrow company

Question 43

Which of the following parties are normally involved in the sale of real property?

A) Buyer
B) Seller
C) Escrow agent
D) Buyer and seller
E) Buyer, seller, and escrow agent

Question 44

Inspection of the premises prior to the purchase of real estate is important to detect which of the following?

A) Structural defects
B) Insect infestation
C) Major electrical or plumbing problems
D) All of these choices are correct.
E) None of these choices is correct.

Question 45

A written instrument giving a creditor an interest in the debtor's real property as security for a debt is called a(n)

A) contract.
B) agreement.
C) mortgage.
D) loan.

Question 46

Karina is a paralegal preparing for a closing for the sale of a house. She should

A) order the closing package as far in advance as possible.
B) review each document to make sure the parties' names are listed and spelled correctly.
C) review the deed to ensure that the ownership rights are accurately listed and that the names are correct.
D) All of these choices are correct.

Question 47

Which of the following is not an event that occurs at a real estate closing?

A) The deed to the property is delivered to the buyer.
B) The buyer signs the mortgage note (if the purchase was financed by a mortgage).
C) The seller receives the proceeds of the sale (the purchase price less the amount previously paid by the buyer and less closing costs).
D) The buyer applies for a loan to purchase the real estate.

Question 48

Jon is a paralegal for Anthony. Anthony has a client who is buying a house. Jon is likely to be involved in undertaking the

A) title examination.
B) final contract signing.
C) initial offer.
D) financing plan.

Question 49

Which of the following is another term for the closing?

A) The settlement
B) The closing of escrow
C) The termination
D) The settlement and the closing of escrow

Question 50

A document by which title to real property is transferred from one party to another is called a

A) purchase agreement.
B) mortgage.
C) lease.
D) deed.

Question 51

The acts as a neutral party and facilitates the sale of real estate by allowing the buyer and seller to complete the transaction without having to exchange documents and funds directly with each other.

A) real estate agent
B) escrow agent
C) attorney
D) paralegal

Question 52

When a buyer obtains a mortgage, the bank takes a interest in the property.

A) financial
B) security
C) mortgage
D) loan

Question 53

A transfer by a landlord/lessor of real or personal property to a tenant/lessee for a period of time for consideration is called a(n)

A) mortgage.
B) estate.
C) transfer of property.
D) lease.

Question 54

Closing costs include fees paid to which of the following?

A) The lender
B) The escrow agent
C) The title company
D) All of these choices are correct.

Question 55

Which of the following parties is not likely to undertake a title examination?

A) A paralegal
B) A title insurance company
C) The buyer's attorney
D) The seller's attorney

Question 56

involves checking the publicly available records of real estate transactions to make sure that the seller is actually the owner of the property described in the purchase offer and to determine whether claims (such as a tax lien for overdue taxes) on the property exist that were not disclosed by the seller.

A) A title application
B) A title inspection
C) A title examination
D)

Question 57

Under the , lending institutions must notify-within a specified time period- each applicant for a mortgage loan of the precise costs that must be paid at the closing.

A) Real Estate Settlement Procedures Act
B) Real Estate Closing Procedures Act
C) Real Estate Financing Act
D) Real Estate Costs Act

Question 58

Which of the following is likely to function as an escrow agent in a sale of real property?

A) A paralegal
B) A notary public
C) A bank
D) A friend of the seller

Question 59

Which of the following parties is likely to undertake a title examination?

A) A paralegal
B) A title insurance company
C) The buyer's attorney
D) All of these choices are correct.

Question 60

The final step in a sale of real estate is called the

A) signing.
B) transfer.
C) closing.
D) finalization.

Question 61

The premium in an insurance contract is the

A) consideration paid to the insurer.
B) insurance company.
C) property being insured.
D) first payment of the contract.

Question 62

In insurance law, a(n) is a contract for insurance coverage. It spells out the precise terms and conditions as to what will and will not be covered under the contract.

A) premium
B) policy
C) binder
D) agreement

Question 63

In most states, statutes mandate that leases exceeding in duration must be in writing.

A) three months
B) six months
C) one year
D) two years

Question 64

Contracts for the sale of real estate must be in writing as required by

A) the Uniform Commercial Code.
B) the Statute of Frauds.
C) common law.
D) the Constitution.

Question 65

In insurance law, the is the one assuming a risk in return for the payment of a premium.

A) underwriter
B) insured
C) agent
D) broker

Question 66

Without , there can be no enforceable insurance contract.

A) an insurable interest
B) real property
C) tangible property
D) a broker

Question 67

Under the Statute of Frauds, leases

A) exceeding one month's duration must be in writing.
B) exceeding one year's duration must be in writing.
C) of less than one year's duration must be in writing.
D) of less than one month's duration must be in writing.

Question 68

In a lease agreement, the property owner is referred to as the

A) lessee.
B) lessor.
C) lender.
D) principal.

Question 69

A survey that locates all physical improvements on the land in relation to the boundary lines of the land is an survey.

A) "as built"
B) "as designed"
C) "as found"
D) "as located"

Question 70

In insurance law, the is the price paid by the insured for insurance protection for a specified period of time.

A) policy
B) risk
C) insurable interest
D) premium

Question 71

Which of the following is not a typical provision in a real estate sales agreement?

A) Legal description of the property's location and size
B) Rental amount
C) Whether the sale is contingent on the buyer's obtaining financing
D) Prorations of taxes, insurance, or other obligations

Question 72

A written temporary insurance policy is called a

A) binder.
B) liability.
C) casualty.
D) policy.

Question 73

A prediction concerning potential loss based on known and unknown factors is

A) liability.
B) risk.
C) hazard.
D) possibility.

Question 74

Which of the following is an example of shared-property ownership?

A) Lease
B) Fee simple absolute
C) Tenancy by the entirety
D) Life estate

Question 75

In a lease agreement, the party leasing the property is referred to as the

A) lessee.
B) lessor.
C) lender.
D) principal.

Question 76

is the planning that is undertaken to reduce the risk of loss from known and unknown events. In the context of insurance, it involves transferring certain risks from the insured to the insurance company.

A) Allocation of risk
B) Risk classification
C) Risk management
D) Pooling of risk

Question 77

Which of the following is not a typical lease term?

A) Term of lease
B) Quiet enjoyment
C) Purchase price
D) Renewal

Question 78

Insurance contracts can usually be obtained through which of the following?

A) A paralegal
B) An insurance company agent
C) A broker
D) An insurance company agent and a broker

Question 79

The one who assumes a risk in return for payment of a premium is the

A) insured.
B) insurer.
C) company.
D) homeowner.

Question 80

is a prediction concerning potential loss based on known and unknown factors.

A) Risk management
B) Insurance
C) Underwriting
D) Risk