National Real Estate Salesperson Supplemental Exam

Joint tenancy carries the right of survivorship (a deceased co-owner's interest automatically passes to the surviving joint tenants, avoiding probate) and requires equal interests, while in tenancy in common shares may be unequal and a deceased owner's interest passes to their heirs.

An easement appurtenant benefits a specific parcel (the dominant estate) and transfers automatically with that land, while an easement in gross benefits a person or entity (e.g., a utility company maintaining power lines) and has no dominant tenement.

In a condominium each unit is separately deeded — the owner holds the unit in severalty and the common elements as a tenant in common with the other owners — whereas in a cooperative a corporation holds title and the buyer owns shares (personal property) plus a proprietary lease for occupancy.

Eminent domain is the government's right to initiate a taking of private property for public use with just compensation, while inverse condemnation is an action brought by the owner seeking compensation when a nearby public project diminishes the property's use and value without a direct taking.

Under an exclusive agency listing the seller keeps the right to sell the property personally without owing a commission, while under an exclusive right-to-sell the broker earns a commission regardless of who sells the property.

With a purchase money mortgage the buyer receives legal title immediately and gives the seller a security interest (mortgage), whereas under a land contract the seller/vendor keeps legal title and the buyer/vendee holds only equitable title and possession until all payments are made.

A buyer who takes 'subject to' is not personally obligated for the debt and is not liable for a foreclosure deficiency (the original seller/borrower may remain liable), while a buyer who assumes the mortgage becomes personally obligated on the debt.

Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages (Fannie Mae primarily conventional loans) in the secondary market rather than lending directly to consumers, while Ginnie Mae neither buys nor sells loans but guarantees securities issued by private offerors and backed by government FHA/VA/USDA loans.

An index lease adjusts rent up or down periodically based on an external economic indicator such as the consumer price index, while a graduated lease provides specified rent increases at set future dates written into the lease.

A void contract has no legal force because it lacks an essential element (e.g., a forged signature means it was never a contract), while a voidable contract appears valid on its face but may be rescinded by the injured party (e.g., consent obtained by duress, fraud, undue influence, or mistake).

Puffing is permissible exaggeration of a property's benefits (opinion, not fact) and fraud is intentional misrepresentation of a material fact relied on to a party's detriment, while negligent misrepresentation occurs when the professional should have known a statement of material fact was false — no intent required, but liability for damages still attaches.

Commingling is the always-illegal mixing of client money with personal or general business funds (e.g., depositing earnest money in the broker's operating account instead of the trust account), while conversion is the illegal use of entrusted client money for unauthorized purposes.