FREE CRS Ethics and Professional Standards Questions and Answers
What best describes the type of agency typical in property management - in which an agent has limited power?
Explanation:
A general agency in real estate is where an agent has limited power. This is very common in property management situations.
Probate of a will means:
Explanation:
Probate of a will refers to the process of filing and submitting the will to the court to establish its authenticity and determine how the property of the deceased person will be distributed among the beneficiaries. This legal procedure ensures that the wishes of the testator, as outlined in the will, are honored and that the rightful heirs receive their inheritance.
Under these rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties.
Explanation:
Under riparian rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties. The only limitation owners have is they cannot stop or prevent the flow of water. Riparian rights vary from state to state but most grant unrestricted use. Unrestricted use means owners have the right to access it for swimming, boating, fishing, building docs, etc.
What is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent?
Explanation:
Fee simple absolute or (fee simple for short) is an estate in land. It is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent and is only limited by government powers which we’ll cover later on. Fee simple absolute is the greatest interest in a parcel of land that one can possibly own. The fee simple estate has unlimited duration and can be passed on to heirs.
Which of the following terms would include the interests, benefits, and rights inherent in the Ownership of Real Estate?
Explanation:
Real Property refers to land and any structures or improvements attached to it. It includes the interests, benefits, and rights that come with owning real estate, such as the right to possess, use, and transfer the property. Chattel refers to movable personal property, while Personal Property refers to any property that is not real property. Trade Fixtures are items that are attached to a property for business purposes but can be removed by the tenant. Therefore, Real Property is the correct term that encompasses the interests, benefits, and rights inherent in the ownership of real estate.
Your uncle died without a will, and you inherited his real estate. How you would acquire his estate is by:
Explanation:
Succession is the correct answer because when someone dies without a will, their property is distributed to their heirs according to the laws of intestate succession. As the nephew/niece of the deceased, you would be considered an heir and would therefore inherit the real estate. Accession refers to the acquisition of property through the addition of improvements or natural growth, which is not applicable in this scenario. Escheat occurs when a person dies without any known heirs and their property reverts to the state, which is also not applicable here. Avulsion refers to the sudden removal of land by natural forces, which is unrelated to inheriting property.
Extrajudicial settlement of estate means:
Explanation:
Extrajudicial settlement of estate refers to the process of settling the estate among the heirs without involving the court. This means that the heirs agree on how to distribute the assets and liabilities of the deceased person's estate without the need for court intervention. It is a simpler and more informal way of handling the estate, often used when there is no dispute among the heirs and the estate is not complex.
When you buy real property, you gain several different kinds of rights. One of which are rights called "subsurface rights." What are subsurface rights?
Explanation:
The surface rights are the rights to use the surface of the earth. Subsurface rights are the rights to the natural resources lying below the earth's surface. Interestingly an owner may transfer rights without transferring the subsurface rights. For example, a landowner can sell his rights to an oil and gas company on his land but still own the land itself.
A real estate salesperson is employed by a Real Estate Broker who is accredited by John Doe Development Corporation. Said the salesperson has a serious prospective buyer but was interested in a competitor Developer project. What should the salesperson do to close the sale?
Explanation:
The salesperson should convince the buyer to buy from the project he is handling by highlighting all the advantages and selling points of the project. This is the best approach because the salesperson is employed by the Real Estate Broker who is accredited with John Doe Development Corporation. It would be unethical for the salesperson to affiliate with another broker or try to close the sale without obtaining proper authorization from the competitor Developer. Therefore, the salesperson should focus on promoting the project they are involved with and provide compelling reasons for the buyer to choose that particular project.
The share of an illegitimate child is equivalent to
Explanation:
The share of an illegitimate child is 1/2 of the share of a legitimate child. This means that an illegitimate child would receive half of what a legitimate child would receive in terms of inheritance or property distribution.
If an unmarried person dies, his estate shall be inherited by:
Explanation:
If an unmarried person dies without a will, their estate is typically inherited by their closest living relatives. In this case, the correct answer is "Parents only." This means that if the person has both parents alive at the time of their death, the parents will inherit their entire estate. Other relatives like siblings (brother and sister), and nephews and nieces would not be entitled to inherit the estate in this scenario.