National Real Estate Exam Quiz: Identify Property Encumbrances
20 questions · exam conditions
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Identify Property EncumbrancesQuestion 1 of 20

A subdivision developer records deed restrictions requiring all homes to be at least 2,500 square feet and prohibiting commercial use. These restrictions are binding on all current and future property owners. What type of encumbrance do these represent?

Private covenants, conditions, and restrictions (CC&Rs)
Zoning ordinances established by local government
Easements in gross benefiting the developer's interests
License agreements modifiable by property owners
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National Real Estate Exam Quiz

National Real Estate Exam Quiz: Identify Property Encumbrances

Practice Identify Property Encumbrances in National Real Estate Exam with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on Identify Property Encumbrances, giving you a quick way to practice the rules, question types, and explanations that matter most for National Real Estate Exam.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

All questions

Question 1

A subdivision developer records deed restrictions requiring all homes to be at least 2,500 square feet and prohibiting commercial use. These restrictions are binding on all current and future property owners. What type of encumbrance do these represent?

  1. Private covenants, conditions, and restrictions (CC&Rs) (correct answer)
  2. Zoning ordinances established by local government
  3. Easements in gross benefiting the developer's interests
  4. License agreements modifiable by property owners
Explanation: These are private deed restrictions, also known as covenants, conditions, and restrictions (CC&Rs), that run with the land and bind all current and future owners. They are created by private parties and recorded in deeds or plats. Choice B is wrong because these are private restrictions, not government zoning. Choice C is wrong because easements grant rights of use, not restrictions on use. Choice D is wrong because these are permanent restrictions, not revocable licenses.

Question 2

A telephone company has the right to install and maintain lines across multiple properties in a neighborhood. This right was granted by the local government through eminent domain proceedings. What type of easement exists?

  1. An easement appurtenant that benefits each individual property in the service area
  2. An easement in gross that benefits the telephone company's business operations (correct answer)
  3. A license agreement that property owners can terminate with appropriate notice
  4. An easement by prescription created through continuous use over statutory time
Explanation: This is an easement in gross because it benefits the telephone company as an entity rather than benefiting any specific parcel of land. Utility easements are typically easements in gross. Choice A is wrong because the easement doesn't benefit the burdened properties. Choice C is wrong because this creates permanent rights, not revocable permission. Choice D is wrong because this was created by government grant, not adverse use.

Question 3

A property owner grants a written easement allowing their neighbor to use a portion of their land for a garden. The easement agreement specifies it will terminate when the neighbor sells their property. What type of easement exists?

  1. An easement appurtenant that transfers automatically to the neighbor's property purchasers
  2. An easement in gross that terminates upon the neighbor's sale of property (correct answer)
  3. A license that can be revoked by either party with reasonable notice
  4. An easement by prescription created through continuous use over statutory periods
Explanation: This is an easement in gross because it benefits the neighbor personally rather than their land, as evidenced by the termination clause upon sale. Personal easements in gross don't transfer to new owners. Choice A is wrong because easements appurtenant automatically transfer with the benefited land. Choice C is wrong because a written easement creates permanent rights, not revocable permission. Choice D is wrong because this was created by express grant, not adverse use.

Question 4

A property owner installs a fence that appears to be on the property line but actually extends two feet onto the neighbor's land. A survey reveals the encroachment after five years. What describes this situation?

  1. An easement by prescription that may ripen into permanent rights
  2. A license that was granted through the neighbor's implied consent
  3. An encroachment that exists regardless of the owner's good faith belief (correct answer)
  4. A covenant violation that subjects the owner to monetary damages
Explanation: This is an encroachment because the fence physically intrudes onto the neighbor's property without permission. Good faith belief about property lines doesn't eliminate the encroachment, though it may affect remedies. Choice A is wrong because structures typically cannot acquire prescriptive easements. Choice B is wrong because no permission was granted, even impliedly. Choice D is wrong because this involves physical intrusion, not breach of contractual restrictions.

Question 5

An office building owner grants a telecommunications company the right to install equipment on the roof and run cables through the building. The agreement is written, recorded, and transfers to future building owners. What type of easement exists?

  1. An easement appurtenant where the building serves as the dominant estate
  2. An easement in gross that benefits the telecommunications company's business operations (correct answer)
  3. A license agreement that future building owners can terminate with notice
  4. An easement by necessity created due to the company's operational requirements
Explanation: This is an easement in gross because it benefits the telecommunications company as an entity rather than any specific parcel of land. The written, recorded nature confirms it's a permanent easement, not a license. Choice A is wrong because the building is the servient (burdened) estate, not the benefited estate. Choice C is wrong because recorded easements create permanent rights, not revocable licenses. Choice D is wrong because this was created by express grant, not legal necessity.

Question 6

A property owner allows their neighbor to use their driveway to access a landlocked parcel. This permission is given orally and can be revoked at any time by the property owner. What type of arrangement exists?

  1. An easement appurtenant that permanently benefits the landlocked property owner
  2. An easement by necessity that cannot be terminated by either party
  3. A license that grants temporary permission but creates no permanent rights (correct answer)
  4. An encroachment that violates the servient property owner's exclusive rights
Explanation: This is a license because it's revocable permission to use another's property without creating any permanent rights or interests in real estate. Licenses are personal privileges that don't run with the land. Choice A is wrong because easements are permanent and typically require written agreements. Choice B is wrong because easements by necessity are permanent legal rights. Choice D is wrong because this involves permission, not unauthorized intrusion.

Question 7

A homeowner verbally agrees to let their neighbor store a boat in their backyard during winter months. The arrangement is informal and either party can end it at any time. What type of agreement exists?

  1. An easement appurtenant that benefits the neighbor's adjacent property for storage
  2. An easement in gross that creates personal rights for the boat owner
  3. A license that grants revocable permission without creating permanent property rights (correct answer)
  4. An encroachment that violates the homeowner's exclusive ownership and possession rights
Explanation: This is a license because it's revocable permission to use another's property without creating any permanent interests in real estate. The informal, terminable nature confirms it's a license rather than an easement. Choice A is wrong because easements are permanent and typically require writing. Choice B is wrong because easements create permanent rights, not revocable arrangements. Choice D is wrong because permission was granted, preventing this from being an encroachment.

Question 8

Two adjacent property owners share a common driveway that serves both properties. The driveway easement was created by a written agreement and recorded in the public records. What type of easement exists?

  1. An easement in gross that personally benefits both individual property owners
  2. An easement appurtenant where each property serves as both dominant and servient (correct answer)
  3. A license agreement that either party can revoke with proper notice
  4. An easement by prescription created through continuous use over statutory periods
Explanation: This is a reciprocal easement appurtenant where each property benefits from using the other's portion of the driveway. Each property serves as both dominant estate (benefited) and servient estate (burdened). Choice A is wrong because the easement benefits the land, not individuals personally. Choice C is wrong because this is a permanent easement, not a revocable license. Choice D is wrong because this was created by written agreement, not adverse use.

Question 9

A subdivision's recorded plat contains restrictions prohibiting the keeping of livestock and requiring minimum setbacks from property lines. These restrictions apply to all lots in the subdivision. What type of encumbrance exists?

  1. Deed restrictions or covenants that run with the land in perpetuity (correct answer)
  2. Zoning ordinances established by county government for agricultural protection purposes
  3. Easements appurtenant that benefit common areas within the subdivision development
  4. License agreements that individual lot owners can modify through petition processes
Explanation: These are deed restrictions or covenants contained in the recorded plat that create uniform standards for the entire subdivision. They run with the land and bind all current and future owners. Choice B is wrong because plat restrictions are private, not government zoning. Choice C is wrong because these restrict property use rather than grant use rights. Choice D is wrong because platted restrictions are binding, not revocable licenses.

Question 10

A landlocked property owner has no access to a public road except by crossing neighboring land. The courts determine that access is necessary for reasonable use of the property. What type of easement exists?

  1. An easement appurtenant created by express grant from the neighboring owner
  2. An easement by necessity created by law due to landlocked conditions (correct answer)
  3. An easement in gross that personally benefits the landlocked property owner
  4. An easement by prescription created through adverse use over time
Explanation: This is an easement by necessity, which is created by law when property becomes landlocked and requires access across another's land for reasonable use. Courts will imply such easements even without the servient owner's consent. Choice A is wrong because no express grant was made. Choice C is wrong because this benefits the land, not the owner personally. Choice D is wrong because this is created by legal necessity, not adverse use.

Question 11

A gas company has permanent rights to install and maintain pipelines under a residential subdivision. These rights were acquired before the homes were built and are recorded in all individual lot deeds. What type of easement exists?

  1. An easement appurtenant that benefits each individual residential lot owner
  2. An easement in gross that benefits the gas company's utility operations (correct answer)
  3. A license agreement that homeowners can collectively terminate through majority vote
  4. An easement by prescription created through continuous underground use over time
Explanation: This is an easement in gross because it benefits the gas company as an entity rather than any specific piece of land. Utility easements are characteristically easements in gross that don't require dominant estates. Choice A is wrong because the easement doesn't benefit the residential lots. Choice C is wrong because utility easements create permanent rights, not revocable licenses. Choice D is wrong because these rights were acquired by grant, not adverse use.

Question 12

A property's deed contains restrictions prohibiting the sale of alcohol and requiring that any violation will result in automatic forfeiture to the original grantor's heirs. What type of encumbrance has been created?

  1. A fee simple subject to condition subsequent creating potential forfeiture rights for heirs (correct answer)
  2. An easement in gross that benefits the grantor's heirs regarding property usage
  3. A revocable license allowing the heirs to monitor compliance with usage restrictions
  4. An encroachment that limits the current owner's exclusive development rights
Explanation: This creates a fee simple subject to condition subsequent, where violation of the stated condition (prohibition against alcohol sales) gives the grantor's heirs the right to reclaim the property. This is more than a simple deed restriction - it's a defeasible estate. Choice B is wrong because easements grant use rights, not reversionary interests. Choice C is wrong because this creates binding conditions with forfeiture consequences, not revocable permission. Choice D is wrong because this involves legal restrictions on use, not unauthorized physical intrusion.

Question 13

A homeowner has used a shortcut path across their neighbor's property to reach the lake for 20 years. The use was open, continuous, and without the neighbor's permission, but the neighbor never objected. What type of easement may have been created?

  1. An easement appurtenant created by express written agreement between parties
  2. An easement by prescription created through adverse use over time (correct answer)
  3. An easement by necessity created due to the landlocked nature of property
  4. An easement in gross created for the personal benefit of individuals
Explanation: This describes an easement by prescription, which is created through open, notorious, continuous, and adverse use for the statutory period (varies by state, often 10-20 years). The use must be without permission and with the true owner's knowledge. Choice A is wrong because no written agreement exists. Choice C is wrong because the property isn't landlocked. Choice D is wrong because this benefits the neighboring land, making it appurtenant.

Question 14

A deed contains a restriction stating that the property can never be used for the sale of alcoholic beverages. This restriction was included when the property was originally sold by a church. What type of encumbrance is this?

  1. A deed restriction limiting permitted property uses (correct answer)
  2. An easement in gross benefiting the church
  3. A license agreement terminable by the owner
  4. An encroachment violating zoning ordinances
Explanation: This is a deed restriction or covenant that runs with the land, limiting how the property can be used. Deed restrictions are private limitations placed on property use that bind current and future owners. Choice B is wrong because easements grant rights to use property, not restrict its use. Choice C is wrong because deed restrictions are permanent, not revocable licenses. Choice D is wrong because this is a private restriction, not a physical intrusion.

Question 15

A property owner discovers that the neighbor's swimming pool equipment extends one foot onto their land. The equipment was installed three years ago with professional surveying that incorrectly identified the property line. What exists?

  1. An easement by prescription that will become permanent after statutory period
  2. A license that was granted through reliance on professional survey
  3. An encroachment that occurred despite good faith efforts to respect boundaries (correct answer)
  4. A covenant violation that breaches the subdivision's recorded development restrictions
Explanation: This is an encroachment because the equipment physically intrudes onto another's property without permission. Survey errors don't eliminate the encroachment, though they may affect legal remedies and liability. Choice A is wrong because structures cannot typically acquire prescriptive rights. Choice B is wrong because no permission was sought or granted. Choice D is wrong because this involves physical intrusion, not violation of contractual restrictions.

Question 16

A subdivision developer includes deed restrictions requiring architectural approval for new construction and prohibiting commercial signs. The restrictions specify they will automatically terminate after 30 years. What type of encumbrance exists?

  1. Covenants with a specified termination date that run with the land temporarily (correct answer)
  2. Zoning regulations that will be superseded by future municipal planning decisions
  3. Easements in gross that benefit the developer's architectural review committee
  4. License agreements that can be renewed by homeowner association majority vote
Explanation: These are deed restrictions or covenants that run with the land but have a built-in termination date. They bind current and future owners until the specified expiration. Choice B is wrong because these are private restrictions, not government zoning. Choice C is wrong because these restrict property use rather than grant use rights. Choice D is wrong because these are binding restrictions with automatic termination, not renewable licenses.

Question 17

A homeowners association enforces architectural standards requiring approval for exterior modifications and prohibiting certain types of fencing. These standards are found in the subdivision's recorded declaration. What type of encumbrance do these represent?

  1. Covenants, conditions, and restrictions (CC&Rs) (correct answer)
  2. Zoning regulations established by local government
  3. Easements in gross benefiting common areas
  4. License agreements modifiable by majority vote
Explanation: These are CC&Rs (covenants, conditions, and restrictions) that are private contractual obligations running with the land in a subdivision. They're created by developers and enforced by homeowners associations. Choice B is wrong because these are private restrictions, not government zoning. Choice C is wrong because these are restrictions on use, not rights to use property. Choice D is wrong because CC&Rs are binding restrictions, not revocable licenses.

Question 18

A property owner discovers that their neighbor's fence extends two feet onto their land. The fence has been in place for 15 years, and both parties were unaware of the boundary issue until a recent survey. What type of encumbrance exists?

  1. An easement by prescription that has matured into a permanent right
  2. A license that can be terminated immediately by the property owner
  3. An encroachment that constitutes a trespass on the neighboring property (correct answer)
  4. A covenant running with the land that binds future property owners
Explanation: This is an encroachment because the fence physically intrudes onto the neighbor's property without permission. An encroachment is an unauthorized intrusion of a structure onto another's property. Choice A is wrong because easements by prescription require open, continuous use with the owner's knowledge. Choice B is wrong because no permission was granted. Choice D is wrong because covenants are contractual agreements, not physical intrusions.

Question 19

A shopping center owner allows a customer to park in their lot while shopping. The customer has no written agreement and the permission can be withdrawn at any time. What type of arrangement exists?

  1. An easement appurtenant that benefits the customer's vehicle storage needs
  2. An easement in gross that creates permanent rights for individual customers
  3. A license that grants temporary permission without creating property interests (correct answer)
  4. An encroachment that violates the shopping center's exclusive ownership rights
Explanation: This is a license because it's revocable permission to use another's property without creating any permanent rights or interests in real estate. Licenses are common for temporary uses like parking. Choice A is wrong because easements are permanent and benefit land, not personal needs. Choice B is wrong because easements create permanent rights, and this is revocable. Choice D is wrong because permission was granted, making this not an encroachment.

Question 20

A farmer sells the front portion of their property but retains an easement to cross the sold land to reach their remaining back acreage. What type of easement has been created?

  1. An easement in gross that personally benefits the farmer's individual needs
  2. An easement appurtenant where the back acreage is the dominant estate (correct answer)
  3. A license agreement that the new owner can revoke at any time
  4. An easement by necessity that automatically terminates when access alternatives exist
Explanation: This is an easement appurtenant because it benefits the farmer's retained land (dominant estate) and burdens the sold land (servient estate). The easement runs with both properties and transfers to future owners. Choice A is wrong because the easement benefits the land, not the farmer personally. Choice C is wrong because easements are permanent rights, not revocable licenses. Choice D is wrong because this was created by reservation, not necessity.