CA Real Estate Principles Course » 2021 » Section 3 Unit 1 Exam
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Question #1
What's the best definition of real property?
A.
Artificial attachments to land that include things such as fencing, buildings, and walkways
B.
Earth, soil, and air
C.
Land, plus all things permanently attached to it naturally or artificially
D.
Real estate, plus all of the interests, benefits, and rights included in ownership
Question #2
The Acme Company is planning to build a factory on the three-acre property it just purchased in Southern California. The factory will need access to a large amount of water. How will the company gain the right to the water it needs?
A.
It must use reclaimed water from the local water treatment plant.
B.
It must purchase water rights from a current property owner with riparian rights.
C.
It must apply for a water permit from the California State Water Resources Control Board.
D.
It must negotiate a deal with a property owner with previous water rights under the doctrine of prior appropriation.
Question #3
Display shelves installed by a business owner in a rented building are a good example of ______.
A.
Trade fixtures
B.
Real estate
C.
Leased premises
D.
Real property
Question #4
Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property?
A.
Area preference
B.
Improvements
C.
Scarcity
D.
Permanence
Question #5
The owners of Brick and Brack, a development company, have purchased several acres of vacant land for their latest development. They plan to build a community of affordable single-family homes. What category of real estate will these be in after construction?
A.
Commercial
B.
Agricultural
C.
Industrial
D.
Residential
Question #6
Your neighbor bought rights that will prevent you from ever building above two stories. What type of rights are these?
A.
Air
B.
Riparian
C.
Littoral
D.
Mineral
Question #7
Licensee Arlene is helping a client purchase a property that's suitable for use as a private school, meaning it needs to have classrooms, assembly rooms, and sports fields. She locates two properties in the area that have the required attributes. What category of property is this considered?
A.
Commercial
B.
Special purpose
C.
Industrial
D.
Residential
Question #8
Sally and Pete are city dwellers who have always dreamed of living in a rural setting. When Pete inherits a 600-acre cattle ranch from his uncle, they don’t waste a moment packing up and moving to the ranch. What category of real estate is their new home considered?
A.
Residential
B.
Agricultural
C.
Industrial
D.
Commercial
Need help with your exam preparation?
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