2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Real Estate Montana final exam Questions and
Correct Answers | Latest Update
personal property that, by its attachment to real property, is regarded as real estate is
called
✓ -:- a fixture
An object that is affixed to commercial property and used to generate income is called a
✓ -:- trade fixture
real property given in a will is referred to as a
✓ -:- devise
Joe and Kathy want to purchase a home in a neighborhood where they are familiar with the
school system, and know the teachers in the public school that their son will attend. Their
interest in this type of property is called
✓ -:- area preference
Real estate is considered to be immobile and indestructible. Another physical characteristic
of all real estate parcels is that they
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,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- are unique because no two parcels area is the same
What is the main purpose of police power
✓ -:- To protect the health, safety, and welfare of the community.
Harry purchased a 3 acre parcel in the Big Rive County. One day when he was walking his
property, he discovered a gigantic oil deposit. Does Harry own the oil rights
✓ -:- Yes, unless his purchase of the property did not include the oil rights
Jack and Mona own a 10 acre parcel of property. Paul runs a rock quarry on 4 acres of the
property, from which he excavates and sells stone in all shapes and sizes. Paul keeps all
profits from the sale of the stone, and pays Jack and Mona an annual fee for the use of the
land to get the equipment and trucks to the quarry. With this arrangement, which is the
likely scenario
✓ -:- Jack and Mona own the land, and Paul owns the mineral rights
Many states determine the order of water rights by a "first-in-time-first-in-right" theory. The
person or entity who requests use of the water source first is granted water rights to the
source. This theory is called
✓ -:- the doctrine of prior appropriation
2 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Billy Big Mouth inherits a home from his wealthy uncle, and decides to host a party and
provide all guests over the age of 21 with free booze. Eventually, the partiers get out of
control, and the loud music disturbs the neighbors. When the police arrive to tell Billy to
turn the music down, and keep his guests under control, Billy asserts that the property
belongs to him, and he has the right to enjoy the property in whatever way he chooses. He
further asserts that since he enjoys loud music and boisterous guests, he is simply exercising
his right of enjoyment. Why is Billy incorrect in his assertion?
✓ -:- The bundle of rights for property ownership does not include the
right to disturb neighbors
A home is burning, with smoke billowing from the windows. The fire department arrives to
manage the fire and put it out, and the property owner stands in the driveway and prohibits
the fire fighters from entering the property. Is the property owner within his rights?
✓ -:- No, because the right of exclusion is subject to the health and safety
of the community
Helga and Ron Slobbe own a salvage business. In an effort to save money on the lease of
industrial property to run their salvage yard, they move their salvage business to their home,
and set up a salvage yard in their front yard. Neighbors complain about the mess in the front
yard, and the city threatens to evict the Slobbes from their home, clean up the yard; and
3 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
force them to reimburse the city for the cost of the cleanup as a condition of moving back
into the home. Can the city do this?
✓ -:- Yes, because the Slobbes property right of possession is subject to
the rules established by the city zoning laws
If a person has complete control over their property, and the ownership in the property is
not defeasible, what interest does the person have in the property?
✓ -:- fee simple estate
Patricia held fee simple title to a vacant lot adjacent to Mt. Olive Church. She wanted to
donate the lot to Mt. Olive, and her attorney prepared a deed conveying all rights of the
vacant lot to the church "...so long as the lot is used for church-related purposes." After the
completion of the gift, the church will own a
✓ -:- determinable fee estate
Typically, owners of property in a residential subdivision take title subject to certain
covenants, conditions, and restrictions (CC&Rs). Since ownership of the property is
conditional upon the owner obeying these conditions, the estate held is a defeasible fee with
a condition subsequent. Is this type of estate automatically terminated if the property does
not comply with the CC&Rs?
4 | P a g e | G r a d e A + | 2 0 0 2 5
Real Estate Montana final exam Questions and
Correct Answers | Latest Update
personal property that, by its attachment to real property, is regarded as real estate is
called
✓ -:- a fixture
An object that is affixed to commercial property and used to generate income is called a
✓ -:- trade fixture
real property given in a will is referred to as a
✓ -:- devise
Joe and Kathy want to purchase a home in a neighborhood where they are familiar with the
school system, and know the teachers in the public school that their son will attend. Their
interest in this type of property is called
✓ -:- area preference
Real estate is considered to be immobile and indestructible. Another physical characteristic
of all real estate parcels is that they
1 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- are unique because no two parcels area is the same
What is the main purpose of police power
✓ -:- To protect the health, safety, and welfare of the community.
Harry purchased a 3 acre parcel in the Big Rive County. One day when he was walking his
property, he discovered a gigantic oil deposit. Does Harry own the oil rights
✓ -:- Yes, unless his purchase of the property did not include the oil rights
Jack and Mona own a 10 acre parcel of property. Paul runs a rock quarry on 4 acres of the
property, from which he excavates and sells stone in all shapes and sizes. Paul keeps all
profits from the sale of the stone, and pays Jack and Mona an annual fee for the use of the
land to get the equipment and trucks to the quarry. With this arrangement, which is the
likely scenario
✓ -:- Jack and Mona own the land, and Paul owns the mineral rights
Many states determine the order of water rights by a "first-in-time-first-in-right" theory. The
person or entity who requests use of the water source first is granted water rights to the
source. This theory is called
✓ -:- the doctrine of prior appropriation
2 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Billy Big Mouth inherits a home from his wealthy uncle, and decides to host a party and
provide all guests over the age of 21 with free booze. Eventually, the partiers get out of
control, and the loud music disturbs the neighbors. When the police arrive to tell Billy to
turn the music down, and keep his guests under control, Billy asserts that the property
belongs to him, and he has the right to enjoy the property in whatever way he chooses. He
further asserts that since he enjoys loud music and boisterous guests, he is simply exercising
his right of enjoyment. Why is Billy incorrect in his assertion?
✓ -:- The bundle of rights for property ownership does not include the
right to disturb neighbors
A home is burning, with smoke billowing from the windows. The fire department arrives to
manage the fire and put it out, and the property owner stands in the driveway and prohibits
the fire fighters from entering the property. Is the property owner within his rights?
✓ -:- No, because the right of exclusion is subject to the health and safety
of the community
Helga and Ron Slobbe own a salvage business. In an effort to save money on the lease of
industrial property to run their salvage yard, they move their salvage business to their home,
and set up a salvage yard in their front yard. Neighbors complain about the mess in the front
yard, and the city threatens to evict the Slobbes from their home, clean up the yard; and
3 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
force them to reimburse the city for the cost of the cleanup as a condition of moving back
into the home. Can the city do this?
✓ -:- Yes, because the Slobbes property right of possession is subject to
the rules established by the city zoning laws
If a person has complete control over their property, and the ownership in the property is
not defeasible, what interest does the person have in the property?
✓ -:- fee simple estate
Patricia held fee simple title to a vacant lot adjacent to Mt. Olive Church. She wanted to
donate the lot to Mt. Olive, and her attorney prepared a deed conveying all rights of the
vacant lot to the church "...so long as the lot is used for church-related purposes." After the
completion of the gift, the church will own a
✓ -:- determinable fee estate
Typically, owners of property in a residential subdivision take title subject to certain
covenants, conditions, and restrictions (CC&Rs). Since ownership of the property is
conditional upon the owner obeying these conditions, the estate held is a defeasible fee with
a condition subsequent. Is this type of estate automatically terminated if the property does
not comply with the CC&Rs?
4 | P a g e | G r a d e A + | 2 0 0 2 5
