31. In analyzing a vacant parcel of land to estimate its value, the first logical step is to determine the:
A. Asking price by the owner
B. Price the owner paid for it
C. Highest and best use
D. Assessed value
Answer: C. Highest and best use
32. When a person takes title in severalty, it means that he or she holds title as:
A. A tenant in common
B. A joint tenant
C. A tenant in partnership
D. Sole owner
Answer: D. Sole owner
33. If a public utility company wanted to take private property for its use and it was unable to “negotiate” a settlement with the owner, they could proceed with the acquisition by:
A. A foreclosure
B. Police power
C. Eminent Domain
D. Escheat
Answer: C. Eminent Domain
34. One of the factors that would have little or no influence on the value of a used home would be:
A. Potential rental income
B. Demand of a financially qualified buyer
C. Original cost of construction
D. Functional plan of the home
Answer: C. Original cost of construction
35. An Exclusive Listing agreement must have:
A. 3 months
B. 6 months
C. a definite time
D. an open end
Answer: C. a definite time
36. A lien will be created when which of the following is recorded?
A. Notice of non-responsibility
B. Trust deed
C. An easement
D. A restriction
Answer: B. Trust deed
37. Property taxes that are unpaid and delinquent:
A. Have priority over any existing mortgages
B. Are not a lien on the property
C. Need not be paid if the property is sold
D. Carry no penalty nor accrue any interest
Answer: A. Have priority over any existing mortgages
38. Which of the following is the most common type of easement on residential property?
A. Prescriptive
B. In gross
C. Right to remove minerals
D. Open end
Answer: B. In gross
39. An item that was originally personal property that has been attached to the building in such a manner that it is now part of the building is known as:
A. Fixture
B. Appurtenance
C. Amenity
D. Easement
Answer: A. Fixture
40. When property is owned by one person, title is being held in:
A. Severalty
B. Tenancy-in-common
C. Joint Tenancy
D. Partnership
Answer: A. Severalty