Question: In a deed-of-trust arrangement, who holds legal title during the loan term?

Answer Options: A. Beneficiary B. Borrower C. Trustee D. Seller.

Answer: C. Trustee. 16

Question: Which deed would provide Garth with the least protection?

Answer Options: A. General warranty deed B. Limited warranty deed C. Quitclaim deed D. Special warranty deed.

Answer: C. Quitclaim deed. 17

Question: Which is a characteristic of tenancy in common?

Answer Options: A. Right of survivorship B. Equal interests are mandatory C. Each owner has an undivided interest with no right of survivorship D. Interests cannot be transferred.

Answer: C. Each owner has an undivided interest with no right of survivorship. 18

Question: Ned owns the right to occupy a resort unit for the same week every year. What does he own?

Answer Options: A. Cooperative B. Condominium C. Timeshare D. Estate at will.

Answer: C. Timeshare. 19

Question: Evercrusty Estates is owned by individuals who pay taxes on their units and may mortgage, devise, or sell their interests. What type of ownership is this?

Answer Options: A. Condominium B. Cooperative C. Interval ownership D. Timeshare.

Answer: A. Condominium. 20

Question: Cooperative owners generally own personal property in the form of shares and receive a proprietary lease.

Answer Options: True False.

Answer: True. 21

Question: What is an advantage of ownership in severalty?

Answer Options: A. Decisions require approval from co-owners B. The owner has complete control over the property C. It creates survivorship rights D. It prevents transfer.

Answer: B. The owner has complete control over the property. 22

Question: Why might Jade’s application to purchase a cooperative unit be rejected?

Answer Options: A. Cooperative boards may approve or reject prospective owners B. Cooperatives cannot be financed C. She must own the land first D. Cooperative shares cannot be sold.

Answer: A. Cooperative boards may approve or reject prospective owners. 23

Question: Oscar owns shares in a cooperative. What real property does Oscar directly own?

Answer Options: A. His unit B. The common areas C. A percentage of the land D. None—the shares are personal property.

Answer: D. None—the shares are personal property. 24

Question: What best describes a timeshare?

Answer Options: A. Ownership or occupancy rights limited to specified time periods B. A month-to-month lease C. A cooperative share D. A life estate.

Answer: A. Ownership or occupancy rights limited to specified time periods. 25

Question: What generally happens to a corporation’s real estate if the corporation goes bankrupt?

Answer Options: A. A co-owner automatically receives it B. The shareholders’ heirs inherit it C. It may be liquidated to pay debts D. It must be partitioned.

Answer: C. It may be liquidated to pay debts. 26

Question: In a trust, the trustor transfers title to a trustee to hold for a beneficiary.

Answer Options: True False.

Answer: True. 27

Question: Two people own property as tenants in common, with interests of 80% and 20%. How much of the property may either owner occupy?

Answer Options: A. 25% B. 33% C. 40% D. 100%.

Answer: D. 100%. Government powers and land-use controls 28

Question: Match each zoning term with its definition.

Answer Options: Buffer zone Building code Comprehensive plan Conditional-use permit Moratorium Master plan separates incompatible uses construction standards temporary development halt long-range community plan permitted use subject to conditions.

Answer: Buffer zone — separates incompatible uses; Building code — construction standards; Comprehensive/master plan — long-range community plan; Conditional-use permit — permitted use subject to conditions; Moratorium — temporary development halt. 29