ARE 306 EXAM II November 4, 1999 Select the best answer. You may use one 3x5 card of notes, handwritten, front and back, and no other materials. 1. An easement is a nonpossessory interest in real property that provides some right of use. a. True b. False 2. Farms are not subject to municipal zoning. a. True b. False 3. Farms are not subject to county zoning, except for certain large hog farms. a. True b. False 4. Which is an example of an easement in gross. a. an access road across the land of another b. a hunting right c. a prohibition against putting up a clothesline d. none of the above 5. Which is an example of an easement appurtenant. a. an access road across the land of another b. a hunting right c. a prohibition against putting up a clothesline d. none of the above 6. Which is an example of a restrictive covenant. a. an access road across the land of another b. a hunting right c. a prohibition against putting up a clothesline d. none of the above 7. How may an easement be created. a. express grant in a deed b. express reservation in a deed c. prescription d. all of the above8. A provision in a deed that provides that any house built on the property must contain 2,000 square feet of space or more is an example of: a. an easement b. a life estate c. a lease d. a restrictive covenant 9. Negligence is an issue when one property owner damages the undeveloped property of another by undermining it. a. True b. False 10. Adverse possession does not affect the ownership of property. a. True b. False 11. Which is not an element of adverse possession. a. exclusive b. hostile c. permissive d. duration for the statutory period 12. For the government to take private property without the consent of the owner the purpose must be public and compensation must be paid. a. True b. False 13. In North Carolina, CP&L may condemn private property. a. True b. False 14. The U.S. Constitution restricts governmental takings of private property? a. True b. False15. The term "inverse condemnation" appplies to all condemnation actions. a. True b. False 16. The term "regulatory taking" applies only to physical invasions of private property. a. True b. False 17. An owner of a life estate who discovers oil and pumps it commits: a. fraud b. larceny c. waste d. no problem 18. Formerly personal property that has become real property by attachment to the land. a. easement b. emblement c. fixture d. none of the above 19. A counteroffer not a revocation of an option. a. True b. False 20. A deed must be delivered to be valid. a. True b. False 21. Survivorship property may pass by will. a. True b. False22. Real property rights include: a. disposition b. possession c. use d. all of the above 23. The owner of a vested future interest in real property can sell that interest. a. True b. False 24. The owner of a vested future interest in real property can use that interest. a. True b. False 25. The owner of a vested future interest in real property has no right to possess the property. a. True b. False 26. Property owned as tenants in common carries a right of survivorship. a. True b. False 27. Property owned as joint tenants in North Carolina carries a right of survivorship. a. True b. False 28. Which is not a duty of a life tenant? a. make repairs b. pay taxes c. avoid waste d. make improvements 29. Any group of people may hold property as tenants by the entireties. a. True b. False30. A creditor of both spouses may execute against property held as tenants by the entireties. a. True b. False 31. Trust property does not benefit the trustee. a. True b. False 32. Ownership of annual crops passes with the land. a. True b. False 33. An optionee is not bound to purchase the property subject to the option. a. True b. False 34. A counteroffer by the optionee negates the option. a. True b. False 35. An optionee has priority over subsequent purchasers if the option was recorded. a. True b. False 36. Since an option pertains to real property it is not necessary to satisfy all the elements of a contract. a. True b. False 37. If the optionee exercises the option the optionor is bound to sell the property to the optionee. a. True b. False38. A preemptive right and a right of first refusal are synonyms. a. True b. False 39. A preemptive right requires that the owner of the property sell the property at a specified price when the holder of the right exercises the preemptive right. a. True b. False 40. The rule against perpetuities limits the time within which contingent interests in real property may vest. a. True b. False 41. Which rule requires that contracts for the sale of real estate be in writing? a. statute of frauds b. parol evidence rule c. integration clause d. none of the above 42. North Carolina state law requires that all real estate sales contracts follow a form specified by statute. a. True b. False 43. The party seeking enforcement of a real estate sales contract need not have signed it. a. True b. False 44. Remedies for breach of a real estate sales contract include: a. specific performance b. rescission and restitution c. damages d. any of the above45. A buyer of real property under a long-term sales contract receives the deed upon making the last payment, a. True b. False 46. All deeds require: a. competent grantor b. operative words of conveyance c. acceptance by the grantee d. all of the above 47. A person under the age of 18 cannot own real property in North Carolina. a. True b. False 48. A grantor under a warranty deed guarantees: a. that the grantor owns the property b. that title is free from encumbrances c. that grantor will defend the title d. all of the above 49. A two party security interest in real property: a. mortgage b. easement c. covenant d. deed of trust 50. A three party security interest in real property: a. mortgage b. easement c. covenant d. deed of trust 51. North Carolina is a lien theory state. a. True b. False52. Causes all payments under a security agreement to become due and payable upon default: a. equity of redemption b. due on sale clause c. acceleration clause d. deficiency judgment 53. The right of the debtor to pay off the debt secured by a deed of trust: a. equity of redemption b. due on sale clause c. acceleration clause d. deficiency judgment 54. Causes all payments under a security agreement to become due and payable upon
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