Quiz 3: Property Ownership (Answers can be found after the quiz.)
1. A broker showed a tenant-occupied property that had a wooden fence, chandelier,
and custom tile. Before the close of escrow, the tenant may remove:
a. all of the trade fixtures.
b. only the chandelier.
c. only the wooden fence.
d. none of the items.
2. A "bundle of legal rights":
a. is included with real property.
b. is not included with all real property.
c. is also called chattel.
d. is moveable.
3. Which of the following is considered personal property?
a. fireplace mantel.
c. fences.
b. ceiling fans.
d. drapes.
4. All of the following are properly described by the word improvement EXCEPT
a. Streets
c. Personal belongings.
b. Utilities.
d. Landscaping.
5. Which of the following impacts the value of land?
a. Indestructibility
d. Indestructibility, uniqueness and
b. Uniqueness
immobility all impact the value of land.
c. Immobility
6. Real property is
a. Indestructible.
b. Relatively scarce.
c. Immobile.
d. All of the above.
7. Mr. Owens owns a parcel of land on which oil is discovered. If Mr. Owens or a
previous property owner of the land has not previously conveyed the oil rights, who
owns the oil?
a. Mr. Owens.
b. The original owner of the land.
c. The Department of the Interior.
d. The Bureau of Land Management (BLM)
8. The type of housing that can become permanent if legally attached to land is called:
a. a modular home.
c. a manufactured home.
b. a single family home
d. a multi-family home.
9. All of the following items are treated as personal property EXCEPT
a. Chattels
d. Fructus naturales
b. Fructus industrials
c. the Crop
10. A fixture:
a. could be a leasehold improvement.
b. is not real property.
c. can be removed by a tenant before the expiration of a lease.
d. is not attached.
11. According to law, a trade fixture is usually treated as:
a. a fixture.
c. personal property or chattel fixtures.
b. an easement.
d. real property.
12. Maria is interested in a house that fits her needs, but it is located next to a shopping
center where she is not sure she wants to live. Her concern about her area preference
is also referred to as:
a. contour and elevation of the parcel.
c. prevailing winds.
b. situs.
d. nonhomogeneity.
13. All of the following items define the use of land EXCEPT:
a. Permanence of investment.
b. Access to utilities.
c. Wind intensity.
d. Contour and elevation of the parcel.
14. All of the following are included in the right to control property EXCEPT:
a. The right to sell the property to a relative.
b. The right to exclude the utilities’ meter reader.
c. The right to exclude unwanted guests from the property.
d. The right to control the backyard landscaping.
15. Real property can become personal property by
a. severance (separating it from the attached real property).
b. adding more personal property.
c. waiting for the expiration of the statute of limitations.
d. attaching more real property.
16. All of the following are economic characteristics of land EXCEPT
a. scarcity.
c. uniqueness.
b. permanence of investment.
d. area preference.
17. Mr. Elm leases a unit in a Casino for a Denny’s Restaurant. Denny’s installs their
own ovens, booths, counters, and other equipment. When would these items become
real property?
a. After they are installed
b. If Denny’s defaulted on its lease payments
c. After the lease takes effect
d. If Denny’s does not remove them at the expiration of its lease.
18. Rights or privileges which are connected with real property, are:
a. Called improvements.
b. Called appurtenances.
c. Not included with the sale of real property.
d. Always included with the sale of real property.
19. The difference between personal property and real property is:
a. personal property cannot be moved.
c. cost.
b. real property cannot be moved.
d. range of color.
20. The uniqueness of land and its inability to be substituted is known as
a. Nonhomogenity
b. Scarcity
c. Permanence of investment
d. Nonheterogenity
21. All of the following are considered to be land improvements EXCEPT
a. Sewers
c. Buildings
b. Emblements
d. Roads
22. All of the following is an improvement EXCEPT:
a. A residence.
c. A garage.
b. Outside furniture.
d. A gazebo.
23. Ownership property rights include all of the following EXCEPT:
a. disposition.
c. control.
b. exclusion.
d. Previously sold mineral rights.
24. A bill of sale is used to transfer the ownership of:
a. real property.
c. personal property.
b. fixtures.
d. appurtenances.
25. Which of the following is NOT a test to identify a fixture?
a. Intent of the parties
b. Size of the item
c. Method of attachment of the item
d. Adaptation of the item to the real estate
26. A property owner installs a fence around her backyard. When the fence is installed,
the fencing materials are converted to real estate by:
a. severance.
c. immobility.
b. annexation.
d. indestructibility.
Quiz 3: Property Ownership
Answer Key
1. d. Unless stated differently in the contract, only personal property may be removed from the
property.
2. a. Purchasing real property means buying rights of ownership, or a bundle of legal rights.
3. d. Personal property, such as drapes, are removable.
4. c. Personal property is not considered an improvement.
5. d. Indestructibility, uniqueness and immobility all impact the value of land.
6. d. Real property is indestructible, relatively scarce and immobile.
7. a. If the oil rights have not been previously sold off, Mr. Owens should still own the oil rights.
8. c. Manufactured housing is initially considered personal property, but may, if done legally,
become real property.
9. d. Fructus naturales is real property and is transferred by deed.
10. a. A leasehold improvement is a real property improvement usually negotiated and installed to
benefit a commercial tenant.
11. c. A trade fixture, if installed by the present tenant, can be removed by the tenant prior to the
termination of the lease. It is considered personal property or a chattel fixture.
12. b. Area preference refers to people‟s preferences and choices in an area and is also known as
situs.
13. a. Contour, elevation, access to utilities and wind intensity all define land use.
14. b. The right of “exclusion” allows an owner to exclude someone else from entering the property,
but the owner cannot restrict a „meter reader‟.
15. a. Severing or separating an item from real property results in the item becoming personal
property.
16. c. Uniqueness is a physical characteristic of real estate, along with immobility and
indestructibility.
17. d. Trade fixtures are personal property, but if they are not removed by the tenant, they become
part of the real property.
18. b. Appurtenances are rights or privileges associated with the property and generally convey with
the sale. As we will discuss later on in the „zoning and land use‟ area, sometimes a land-owner is
allowed to use a property a certain way, but a new owner may not be able to continue that same use..
19. b. Personal property is distinct from real property in that it is movable.
20. a. Nonhomogenity is another for term for uniqueness, as two parcels of land are never exactly
alike. Even if the properties look the same, the location of the properties is always different/unique.
21. b. Emblements are annuals, not perennials; personal property not a land improvement.
22. b. An improvement is an immovable, man-made object.
23. d. The bundle of legal rights include possession, control, enjoyment, exclusion and deposition.
These rights may have been previously sold.
24. c. Personal property is conveyed by a bill of sale, while real property is conveyed by deed.
25. b. The overall test to identify a fixture is intent, determined by method of attachment, adaptation,
or agreement.
26. b. Annexation is the opposite of severance. Personal property (fencing) is converted to real estate
once it is permanently attached or annexed to the land.