Which event can generally terminate an agency relationship?
A. The client asks a question about financing
B. The buyer tours a second property
C. Expiration of the agency agreement term
D. The agent prints a property flyer
Show answer and reasoning
Correct answer: C. Expiration of the agency agreement term
- A: Asking a question does not terminate agency.
- B: Touring another property does not automatically end agency.
- D: Marketing activity does not terminate agency.
Source: Cornell Legal Information Institute, Wex — 'agency,' creation, actual/apparent authority, and principal liability; https://www.law.cornell.edu/wex/agency
A subdivision plat identifies a parcel as Lot 8, Block 3 of a named subdivision. What type of legal description is this generally using?
A. Metes and bounds only
B. Informal street nickname
C. Personal-property inventory
D. Lot and block
Show answer and reasoning
Correct answer: D. Lot and block
- A: Metes and bounds uses distances/directions, not just lot and block references.
- B: A nickname is not a legal description.
- C: An inventory lists personal property, not land boundaries.
Source: Cornell Legal Information Institute, Wex — 'deed,' required legal description and examples using lots, blocks, metes, and bounds; https://www.law.cornell.edu/wex/deed
An owner bolts a custom commercial refrigeration unit into a building's structure and connects it permanently to the building's utility systems. Which fact most strongly supports treating the unit as a fixture rather than removable personal property?
A. The unit was expensive when originally purchased
B. The owner financed the unit separately from the building
C. Similar units can sometimes be resold after removal
D. Its method and permanence of attachment indicate that it became part of the real estate
Show answer and reasoning
Correct answer: D. Its method and permanence of attachment indicate that it became part of the real estate
- A: Purchase price does not determine whether an item has become part of the real estate.
- B: Separate financing may affect a creditor's rights, but it does not overcome the physical evidence of permanent attachment in this scenario.
- C: The possibility of resale after removal does not establish that this permanently installed unit remains personal property.
Source: Cornell Legal Information Institute, Wex — 'fixture,' attachment, adaptation, and intent discussion; https://www.law.cornell.edu/wex/fixture
What is the purpose of a legal description in a real estate transaction?
A. To summarize visible improvements without defining parcel boundaries
B. To provide a mailing address for tax notices
C. To identify the specific parcel of real property being transferred
D. To state the property's estimated market value
Show answer and reasoning
Correct answer: C. To identify the specific parcel of real property being transferred
- A: An improvement summary may describe what is built on land but does not uniquely identify the parcel conveyed.
- B: A mailing or street address is useful operationally but may change and is not a complete legal parcel description.
- D: Market value is a valuation conclusion, not a boundary or parcel identifier.
Source: Cornell Legal Information Institute, Wex — 'deed,' required legal description and examples using lots, blocks, metes, and bounds; https://www.law.cornell.edu/wex/deed
A property description uses distances, directions, and physical monuments to trace the boundary of land. What type of description is this?
A. Government rectangular survey
B. Lot-and-block description
C. Reference to a street address and postal code
D. Metes and bounds
Show answer and reasoning
Correct answer: D. Metes and bounds
- A: The government survey method uses townships, ranges, and sections rather than a course traced by bearings and distances.
- B: Lot-and-block identifies land by a recorded subdivision plat rather than by successive boundary calls.
- C: A street address is not the boundary-tracing legal-description method described.
Source: Cornell Legal Information Institute, Wex — 'deed,' required legal description and examples using lots, blocks, metes, and bounds; https://www.law.cornell.edu/wex/deed
