Scott's Michigan Real Estate Brokers Test Prep. Exam Questions And Correct Answer New Update
1 view 0 purchase
Course
Scott\'s Michigan Real Estate Brokers
Institution
Scott\'s Michigan Real Estate Brokers
Scott's Michigan Real Estate Brokers Test Prep. Exam Questions And Correct Answer New Update
A neighbor had encroached on a property but the owner did not complain within the legally specified time period. The neighbor would obtain rights to the land by:
A » license
B » easement by necessity...
Scott's Michigan Real Estate Brokers Test
Prep. Exam Questions And Correct Answer
New Update
A neighbor had encroached on a property but the owner did not complain within the
legally specified time period. The neighbor would obtain rights to the land by:
A » license
B » easement by necessity
C » easement by prescription
D » easement in gross - Answer -(C) An encroachment (fence, tree limb, etc.) that
remains for a lengthy period can become an easement by prescription (continuous,
open, notorious).
(A) License must be given by permission. (B) Easements by necessity are created if a
land is landlocked. (D) Gross easements are non-appurtenant (utility, railroads).
A property that has added value making it a better buy due to the benefit of an
easement is called:
A » appurtenant tenement
B » servient tenement
C » dominant tenement
D » gross easement - Answer -(C) A dominant tenement is the land benefitting from the
use of an easement across the servient tenement (B).
The easement is appurtenant (tied to) the land of the dominant tenement. Gross
easement (D) is a non-appurtenant easement (such as utility, railroads). Appurtenant
tenement (A) is not a real estate term.
In a normal life estate, which of the following could a life tenant NOT do?
A » Sell the property
B » Will it to a niece
C » Rent out a storage barn and make extra profit
D » Renovate a storage barn - Answer -(B) A life estate is non-inheritable; thus the life
tenant could NOT will it to his niece.
A life tenant can (A) sell the property, (C) rent out a storage barn or (D) renovate a
storage barn.
On July 1, a contractor started work. On August 15, the work was completed. The
general contractor was paid but the material vendor was not. On Oct. 1, the material
vendor filed a mechanic's lien. What is the effective date for the mechanic's lien?
A » July 1
B » Aug. 15
C » Oct. 1
,D » A material vendor cannot file a mechanic's lien - Answer -(A) A mechanic`s lien
takes priority based on the date the work was started, which was July 1, not (B) Aug. 15
when the work was completed, or (C) Oct. 1 when the lien was filed. (D) It can be filed
for either work OR materials that are unpaid.
A corporation who purchased a piece of real estate as a co-owner with an individual
would usually take title in which of the following manners?
A » Joint tenancy
B » Tenancy in common
C » Tenancy by the entirety
D » Community property - Answer -(B) A corporation owns property individually in
"severalty."
However, when buying along with an individual, they would be tenants in common. (A)
They cannot be joint tenants or (C) tenants by the entirety as both have right of
survivorship and corporations do not die. (D) Community property is marital property.
In doing a survey, monuments are sometimes used:
A » to establish an address for historical properties
B » to legally describe a piece of real estate
C » in a lot and block description
D » in the geodetic survey system - Answer -(B) Monuments (a stake, well, boulder,
etc.) are used in the metes and bounds description and are used in giving a legal
description.
(A) Monuments have nothing to do with an address of a historical property. (C) A lot
and block description gives a lot number, block number, subdivision, county and state.
(D) The geodetic survey system uses benchmarks to describe land.
A legal description included Range 2 East and Tier 1 North of a principal meridian. This
is an example of a:
A » metes and bounds description
B » rectangular survey system description
C » lot and block description
D » geodetic survey system description - Answer -(B) The rectangular survey system
uses principal meridians and range and tier lines.
(A) A metes and bounds description gives a physical description of the property
boundaries. (C) A lot and block description uses lot numbers and block numbers on a
plat map. (D) The geodetic survey system uses benchmarks to describe land.
The authority the government has to require that all buildings for human living have
restrooms is called:
A » eminent domain
B » taxation
C » police power
,D » escheat - Answer -(C) Police power is where the government keeps things in order;
e.g., zoning ordinances and building codes - restrooms would fall under this.
(A) Eminent domain is the right of the government to take private property for public
good. (B) Taxation deals with the government being able to tax real property. (D)
Escheat is when a person dies with no will and no heirs (or abandons the property) and
the property goes to the state government.
A city wanted to take land as the space was needed to install a cloverleaf, allowing
easier access to an interstate highway. The owner of the property refused to sell to the
city. As a result of this, the city started the process of acquiring the property against the
owner's wishes. This process is referred to as:
A » condemnation
B » eminent domain
C » escheat
D » police power - Answer -(A) Condemnation is the PROCESS used to take private
property for the public good.
(B) Eminent domain is the RIGHT of the government to take private property for the
public good. (C) Escheat is when a person dies with no will and no heirs (abandons the
property) and the state government takes ownership. (D) Police power is keeping things
in order, such as zoning and building codes.
A person owned a property using it for residential use. The zoning on this lot was then
changed to commercial. The person can continue to use the lot for a residential use as
an example of a:
A » down zoning
B » variance
C » non-conforming use
D » buffer zone - Answer -(C) A non-conforming use is where one used a property
before the zoning change for a certain use and is allowed to continue that same use.
(A) Down zoning is going from a more intensive use to a less intensive use, such as
multi-family to single family. (B) A variance is changing something after the zoning is in
place, such as a change or variance regarding a setback line. (D) A buffer zone
separates two incompatible areas.
A property was down zoned with the courts upholding the down zoning decision. An
owner's property in the affected area is now less valuable due to the down zoning. This
person can receive from the government:
A » the full market value of the property
B » the full value of the property after the down zoning is factored in
C » compensation based on the difference in value before and after the down zoning
D » no compensation - Answer -(D) Down zoning does not require the government to
pay any compensation for any change to value. Eminent Domain is where the
government must pay if land is taken from a private party for the public good.
, (A), (B) and (C) are all false in that no compensation is paid based on down zoning.
What is the purpose of an appraisal?
A » This is a scientific inexact way of determining value
B » To give an average value derived from various sources
C » To give a determination of value
D » To give an estimate of value - Answer -(D) An appraisal is used to estimate value
only.
(A) An appraisal is not an inexact science and does not determine value, only
estimates. (B) An appraiser does not usually average items together to come up with a
value; an appraiser normally does analysis of comparable properties lending more
weight to some than others. (C) Buyers determine value - appraisers estimate value.
In the cost approach to value, which of the following would LEAST affect depreciation?
A » Land value going down
B » Physical deterioration to a building
C » Functional obsolescence on a property
D » Exterior obsolescence where a property is next to a toxic dump site - Answer -(A)
Land value going down does not affect depreciation as land never depreciates.
(B) Physical deterioration, (C) functional obsolescence and (D) exterior obsolescence
are the three items that cause depreciation.
Which of the following would be considered functional obsolescence?
A » A poor lay-out design
B » Termite damage
C » Wear and tear
D » Adverse economic conditions - Answer -Functional obsolescence refers to factors
INSIDE the property lines that lower the value that are not related to physical
deterioration.
(A) Poor design is clearly that. (B) & (C) both relate to physical deterioration. (D) is a
part of economic (outside) obsolescence.
Which approach to value would an appraiser be using when one adds the land value to
the depreciated replacement cost of a property?
A » Market Data
B » Cost
C » Income
D » Gross Rent Multiplier - Answer -(B) The cost approach formula consists of three
steps: take current replacement cost minus depreciation plus land value to determine
current fair market value.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StuviaGradeA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
