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MT Real Estate practice questions

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Question 1Montana Real Estate License Law, Board Rules, and Commission Regulation

Under Montana law, which activity requires a real estate license?

  1. Managing your own rental property
  2. Leasing a unit in a building you own
  3. Appraising property for a federally regulated lender
  4. Negotiating a purchase for another person for a fee Correct answer.

Explanation

Montana requires a license for anyone who, for another person and for compensation, lists, markets, negotiates, or otherwise participates in a real estate transaction. Appraisal is regulated under a separate appraiser program, and a person dealing with their own property is not acting for another.

Question 2Montana Real Estate License Law, Board Rules, and Commission Regulation

A licensed salesperson in Montana may accept compensation for brokerage services only from:

  1. The Board of Realty Regulation
  2. Any party to the transaction who agrees to pay it
  3. The seller's escrow agent
  4. The employing broker Correct answer.

Explanation

A salesperson's license is affiliated with a broker, and the broker is the party entitled to compensation for brokerage services performed under that license. The broker then pays the salesperson under their own agreement. A salesperson may not accept a brokerage fee directly from a client or from another broker.

Question 3Montana Real Estate License Law, Board Rules, and Commission Regulation

In Montana, the commission a broker charges for listing a home is:

  1. Capped by statute at 6 percent
  2. Set by the Board of Realty Regulation
  3. Set by the local association of REALTORS
  4. Negotiated between the broker and the client Correct answer.

Explanation

Commission rates are determined by negotiation between the broker and the client. Neither the Board, a trade association, nor the statute book sets or caps the rate, and an agreement among competitors to fix rates would also raise antitrust problems.

Question 4Montana Real Estate License Law, Board Rules, and Commission Regulation

Which fiduciary duty requires a broker to place the principal's interests above the broker's own?

  1. Disclosure
  2. Accounting
  3. Loyalty Correct answer.
  4. Reasonable care

Explanation

Loyalty is the duty of undivided faithfulness to the principal, requiring the broker to put the principal's interests ahead of the broker's own and to avoid undisclosed conflicts of interest. Accounting concerns money and documents, disclosure concerns material facts, and reasonable care concerns competence and diligence.

Question 5Montana Real Estate License Law, Board Rules, and Commission Regulation

Montana licensees must complete how many hours of approved continuing education during each two-year license period?

  1. 40 hours
  2. 24 hours Correct answer.
  3. 16 hours
  4. 12 hours

Explanation

Montana requires 24 hours of approved continuing education during each two-year license period as a condition of renewal. The hours must come from courses approved by the Board of Realty Regulation.

Question 6Montana Real Estate License Law, Board Rules, and Commission Regulation

A broker deposits a client's earnest money into the broker's personal business account. This conduct is best described as:

  1. Commingling Correct answer.
  2. Redemption
  3. Novation
  4. Subordination

Explanation

Commingling is the improper mixing of client funds with the broker's own funds. Earnest money must be held in a trust account and kept separate from the broker's business and personal money.

Question 7Montana Real Estate License Law, Board Rules, and Commission Regulation

A Montana salesperson advertises a listing on social media. The advertisement must include:

  1. The seller's name and address
  2. The license expiration date
  3. The salesperson's home address
  4. The name of the employing broker Correct answer.

Explanation

Advertising by a salesperson must identify the broker under whom the salesperson is licensed so the public knows which brokerage stands behind the advertisement. Omitting the broker's name is a violation of the Board's advertising rules.

Question 8Montana Real Estate License Law, Board Rules, and Commission Regulation

A broker wishes to represent both the buyer and the seller in the same transaction. Under Montana law the broker must first:

  1. Obtain written consent from both parties Correct answer.
  2. Obtain the Board's written approval
  3. Refer one party to another brokerage
  4. Reduce the commission charged to one party

Explanation

Dual agency is permitted only after the broker discloses the conflict and obtains the written consent of both the buyer and the seller. Without informed written consent, the broker may not act for both sides.

Question 9Montana Real Estate License Law, Board Rules, and Commission Regulation

A salesperson receives a $5,000 earnest money check made payable to the brokerage at contract signing. The salesperson should:

  1. Forward it to the buyer's lender as proof of funds
  2. Cash it and issue a receipt to the buyer
  3. Hold it in the salesperson's transaction file until closing
  4. Deliver it to the broker for deposit in the trust account Correct answer.

Explanation

Earnest money is held for others and must be treated as trust funds. The salesperson should promptly deliver the check to the broker, who deposits it into the brokerage trust account and receipts the buyer.

Question 10Montana Real Estate License Law, Board Rules, and Commission Regulation

An unlicensed assistant at a Montana brokerage may lawfully:

  1. Prepare and distribute advertising approved by the broker Correct answer.
  2. Quote commission rates to prospective sellers
  3. Host an open house and discuss the property's condition with prospects
  4. Negotiate price and terms with a buyer

Explanation

Unlicensed staff may perform clerical and administrative tasks, such as preparing and distributing advertising that the broker has approved. Activities that involve advising the public, negotiating, or showing property constitute brokerage and require a license.

Question 11Montana Real Estate License Law, Board Rules, and Commission Regulation

A licensee wants to pay an unlicensed friend $500 for referring a seller. This payment is:

  1. Prohibited; referral compensation may go only to licensees Correct answer.
  2. Permissible if paid from the trust account
  3. Permissible if the amount is under $1,000
  4. Permissible if the friend discloses it to the seller

Explanation

Compensation for brokerage activity, including referral fees, may be paid only to licensed brokers and salespersons. Paying an unlicensed person for a referral exposes the licensee to discipline regardless of how the payment is disclosed or funded.

Question 12Montana Real Estate License Law, Board Rules, and Commission Regulation

After a listing agreement expires, the broker's duty of confidentiality regarding information gained during the listing:

  1. Ends at closing
  2. Ends when the listing ends
  3. Passes to the buyer's broker
  4. Continues after the relationship ends Correct answer.

Explanation

Confidentiality is not extinguished when the listing or agency relationship ends; it continues after termination. A broker may not later use or reveal the former principal's confidences to the principal's disadvantage.

Question 13Montana Real Estate License Law, Board Rules, and Commission Regulation

A licensee whose license lapsed two weeks ago and has not been reinstated may:

  1. Complete only transactions already under contract
  2. Perform no brokerage services until reinstated Correct answer.
  3. Work for past clients only
  4. Continue working under a broker's supervision

Explanation

Brokerage services may be performed only under an active license. Once the license lapses the person must stop practicing until the license is reinstated, and supervision by a broker does not cure the lapse.

Question 14Montana Real Estate License Law, Board Rules, and Commission Regulation

A broker opens a second office in another city. What does Montana law require?

  1. Nothing, because one license covers every office in the state
  2. The office must be licensed and supervised by a licensed broker Correct answer.
  3. A separate corporation must be formed for the office
  4. Only the local association of REALTORS must be notified

Explanation

Each location where brokerage business is conducted must be licensed with the Board and placed under the supervision of a licensed broker. A single license does not authorize an unlimited number of unlicensed locations.

Question 15Montana Real Estate License Law, Board Rules, and Commission Regulation

A licensee knows of a material defect in a listed property that poses a risk to occupants. The licensee should:

  1. Wait for the buyer to ask about the defect
  2. Report it only to the lender
  3. Disclose the defect to the prospective buyer Correct answer.
  4. Keep the information confidential as instructed by the seller

Explanation

A licensee must disclose known material defects that affect health or safety to prospective buyers. Confidentiality toward the seller does not justify concealing material facts from the other party.

Question 16Montana Real Estate License Law, Board Rules, and Commission Regulation

Which conduct by a licensee violates fair housing law and Montana license law?

  1. Referring a buyer to a lender with competitive rates
  2. Refusing to show a home because of the buyer's national origin Correct answer.
  3. Advertising a listing in a newspaper
  4. Declining a listing because the seller's price is unrealistic

Explanation

Fair housing law prohibits refusing to show, sell, or rent housing because of a protected characteristic such as national origin, race, color, religion, sex, familial status, or disability. The same conduct is a violation of Montana license law and grounds for discipline.

Question 17Montana Real Estate License Law, Board Rules, and Commission Regulation

A broker representing the seller accepts a $2,000 bonus from the buyer for recommending the buyer's offer, without informing the seller. The broker has:

  1. Acted properly if the bonus is disclosed at closing
  2. Violated only RESPA, not Montana license law
  3. Breached loyalty by accepting undisclosed compensation Correct answer.
  4. Acted properly because buyers may pay bonuses

Explanation

A broker owes the principal undivided loyalty and may not accept compensation from the other party without the principal's knowledge and consent. Undisclosed compensation creates a conflict of interest and is a disciplinable act under Montana license law.

Question 18Montana Real Estate License Law, Board Rules, and Commission Regulation

In Montana, responsibility for supervising a salesperson's brokerage activity rests with:

  1. The local association of REALTORS
  2. The employing broker Correct answer.
  3. The Board of Realty Regulation
  4. The salesperson alone

Explanation

The employing broker is responsible for supervising the brokerage activities of affiliated salespersons and unlicensed staff. The Board and trade associations regulate or advocate at the industry level but do not supervise individual transactions.

Question 19Montana Real Estate License Law, Board Rules, and Commission Regulation

Two brokers dispute who earned the commission on a sale. The claim is generally resolved by determining which broker:

  1. Was the procuring cause of the sale Correct answer.
  2. Charged the lower commission rate
  3. Signed the listing agreement
  4. First showed the property to the buyer

Explanation

Procuring cause is the standard used to decide which broker's efforts set in motion the uninterrupted chain of events that produced the sale, and therefore which broker is entitled to compensation. Priority of showing or the rate charged does not control the result.

Question 20Montana Real Estate License Law, Board Rules, and Commission Regulation

A salesperson leaves Broker A and affiliates with Broker B. Before performing brokerage services for Broker B, the salesperson must:

  1. Complete additional continuing education
  2. Obtain the Board's written permission
  3. Wait 30 days after terminating with Broker A
  4. Have the license transferred to Broker B Correct answer.

Explanation

A salesperson may perform brokerage only under the broker with whom the license is affiliated. The license must be transferred to the new broker before the salesperson begins working there.

Question 21Montana Real Estate License Law, Board Rules, and Commission Regulation

A licensee wishes to buy a listed property personally as an investment. The licensee must:

  1. Pay the listing broker a full commission
  2. Disclose in writing the buyer's licensed status Correct answer.
  3. Obtain Board approval for the purchase
  4. Resign from the brokerage before submitting an offer

Explanation

A licensee acting as a principal in a transaction must disclose the licensed status in writing so the other parties know they are dealing with a real estate professional. Failing to disclose can be grounds for discipline.

Question 22Montana Real Estate License Law, Board Rules, and Commission Regulation

In a lawful dual agency, the broker's duty of loyalty is modified so that the broker:

  1. Owes full loyalty to the seller as the listing broker
  2. Must treat both parties honestly and cannot favor either Correct answer.
  3. Owes confidentiality to neither party
  4. May advocate for whichever party pays more

Explanation

Dual agency limits loyalty and confidentiality: the broker must deal honestly with both parties, disclose material facts, and refrain from advocating one side over the other. The broker does not become the exclusive advocate of either principal.

Question 23Montana Real Estate License Law, Board Rules, and Commission Regulation

The buyer and seller both demand the earnest money held in a broker's trust account. The broker should:

  1. Hold the funds until the parties agree or a court orders release Correct answer.
  2. Give the funds to the seller, who holds title
  3. Keep the funds and pay them out after deducting the commission earned
  4. Give the funds to the buyer, who paid them

Explanation

A broker holding disputed funds is a stakeholder and should not decide the dispute. The broker keeps the money in trust until the parties agree in writing or a court directs disbursement.

Question 24Montana Real Estate License Law, Board Rules, and Commission Regulation

A broker produces a buyer who is ready, willing, and able to buy on the seller's terms, but the seller refuses to close. The broker is generally:

  1. Not entitled to a commission because no sale closed
  2. Entitled to the agreed commission Correct answer.
  3. Entitled to a commission only if the buyer sues the seller
  4. Entitled to half the agreed commission

Explanation

Under the typical listing contract, the broker earns the commission by producing a ready, willing, and able buyer on the terms the seller authorized. The seller's later refusal to perform does not defeat the broker's earned commission.

Question 25Agency Relationships, Fiduciary Duties, and Representation Disclosures

Which fiduciary duty requires a licensee to place the principal's interests above the licensee's own interests?

  1. Loyalty Correct answer.
  2. Accounting
  3. Care
  4. Obedience

Explanation

Loyalty obligates the agent to put the principal's interests ahead of the agent's own and to avoid self-dealing, secret profit, and advocacy for an adverse party. Accounting concerns money and documents, care concerns competence and diligence, and obedience concerns lawful instructions.

Question 26Agency Relationships, Fiduciary Duties, and Representation Disclosures

An agency relationship between a broker and a principal is created when

  1. the broker agrees to act for the principal Correct answer.
  2. the buyer attends a weekend open house
  3. the buyer asks the agent about the property
  4. the agent advertises the property in a newspaper

Explanation

Agency arises from the mutual agreement of principal and agent that the agent will act on the principal's behalf and subject to the principal's control; it does not require a particular form of words, but it does require consent by both sides. Merely meeting an agent, reading advertising, or asking questions does not by itself create the relationship.

Question 27Agency Relationships, Fiduciary Duties, and Representation Disclosures

Before a broker may act as a dual agent in a transaction, the broker must obtain

  1. the approval of the local association of REALTORS
  2. the consent of the buyer only
  3. the informed written consent of both parties Correct answer.
  4. the consent of the seller only

Explanation

Dual agency is permitted only with the informed, written consent of both the buyer and the seller, typically obtained through an agency disclosure and consent form. Without that consent the broker must remain a single agent for one side or decline the representation.

Question 28Agency Relationships, Fiduciary Duties, and Representation Disclosures

A buyer who is shown a listing by the seller's agent but who has signed no representation agreement is best described as

  1. a dual client
  2. a fiduciary of the seller
  3. a subagent of the listing broker
  4. a customer Correct answer.

Explanation

An unrepresented party who is served by another party's agent is a customer, not a client. The agent owes the customer honesty, fairness, and disclosure of known material facts, but not the fiduciary duties of loyalty, advocacy, or confidentiality.

Question 29Agency Relationships, Fiduciary Duties, and Representation Disclosures

A licensee deposits a client's earnest money check into the licensee's personal checking account. This is best characterized as

  1. conversion of funds
  2. an acceptable substitute for an escrow account
  3. a permitted practice if a ledger is kept
  4. commingling of funds Correct answer.

Explanation

Mixing client funds with the licensee's own money is commingling, which breaches the duty of accounting and is prohibited. Conversion occurs when the funds are actually used or misappropriated rather than merely mixed.

Question 30Agency Relationships, Fiduciary Duties, and Representation Disclosures

Which statement about compensation and agency is correct?

  1. Compensation alone does not create an agency relationship Correct answer.
  2. The party who pays the commission is always the client
  3. A buyer's agent is paid by the buyer in every transaction
  4. A referral fee from a lender creates an agency relationship with the lender

Explanation

Who pays the commission is not controlling; agency depends on mutual consent that one party will act on another's behalf and subject to that party's control. A buyer's agent may be paid from the seller's proceeds through a cooperative arrangement and still owe full fiduciary duties to the buyer.

Question 31Agency Relationships, Fiduciary Duties, and Representation Disclosures

A buyer's agent has been told by the buyer, in confidence, the maximum price the buyer will pay. During negotiations the agent should

  1. record the figure in notes available to cooperating brokers
  2. share the figure with the lender to speed loan approval
  3. disclose the figure to the seller because price is material
  4. keep the figure confidential and negotiate within the client's authorized limits Correct answer.

Explanation

A client's negotiating ceiling is confidential information protected by the duty of loyalty; disclosing it would harm the client's bargaining position. The agent must instead negotiate within the authority the client has given.

Question 32Agency Relationships, Fiduciary Duties, and Representation Disclosures

A buyer touring a listing asks the seller's agent whether the basement has ever taken on water. The seller has told the agent it flooded twice. The agent should

  1. state that the basement is dry because repairs were made
  2. disclose the prior flooding because it is a known material fact Correct answer.
  3. decline to answer because the agent represents the seller
  4. refer the buyer only to the seller's written disclosure statement

Explanation

The duty of honesty and fair dealing owed to all parties, including customers, requires disclosure of known material facts about the property. A history of water intrusion is material because it affects value and the buyer's decision, and loyalty to the seller does not authorize concealment or misstatement.

Question 33Agency Relationships, Fiduciary Duties, and Representation Disclosures

In a properly disclosed dual agency, the licensee may

  1. advocate for whichever party pays the fee
  2. act as a neutral facilitator for both parties Correct answer.
  3. favor the party in the stronger financial position
  4. reveal each party's negotiating limits to the other

Explanation

A dual agent owes duties to both principals, so the agent cannot advocate for one side against the other and must treat both fairly while facilitating the transaction. Confidential information received from one party may not be passed to the other without permission.

Question 34Agency Relationships, Fiduciary Duties, and Representation Disclosures

In designated agency, the broker

  1. assigns different licensees to represent each side Correct answer.
  2. represents neither party as a neutral facilitator
  3. needs a court order before both sides are served
  4. acts only as the seller's single agent

Explanation

Under designated agency the broker appoints one associated licensee to represent the buyer and another to represent the seller, so each party has an advocate within the same firm. The broker typically remains a dual agent and must still obtain informed written consent from both parties.

Question 35Agency Relationships, Fiduciary Duties, and Representation Disclosures

A seller instructs the listing agent to steer buyers of a particular religion away from the property. The agent should

  1. follow the instruction because obedience is a fiduciary duty
  2. resign the listing without explanation
  3. follow it but document the seller's request
  4. refuse the instruction and explain the fair housing law Correct answer.

Explanation

The duty of obedience extends only to lawful instructions, and fair housing law prohibits steering based on protected characteristics. The agent should decline and advise the seller of the legal requirement rather than comply or quietly document the request.

Question 36Agency Relationships, Fiduciary Duties, and Representation Disclosures

While taking a listing, an agent notices a long crack in the foundation wall. Under the duty of care, the agent should

  1. tell every buyer the home is structurally unsound
  2. say nothing because the agent is not an engineer
  3. repair the crack before showings begin
  4. disclose the observation and recommend a professional inspection Correct answer.

Explanation

The duty of care requires the licensee to disclose what was observed and to recommend that the client or buyer obtain expert evaluation, without pretending to expertise the agent lacks. The agent is not obligated to repair the property or to render a structural diagnosis.

Question 37Agency Relationships, Fiduciary Duties, and Representation Disclosures

A moving company offers a licensee $100 for each client who hires it. The licensee may accept the payment only if

  1. the moving company is licensed in the same state
  2. the payment is disclosed to the client in writing Correct answer.
  3. the amount is less than the licensee's commission
  4. the client signs a dual agency agreement

Explanation

Compensation received from a third party in connection with a transaction is a potential secret profit and breaches loyalty unless it is disclosed to the client and the client consents. The size of the payment and the vendor's licensing status do not cure the undisclosed conflict.

Question 38Agency Relationships, Fiduciary Duties, and Representation Disclosures

A licensee must disclose the nature of the agency relationship to a prospective party before

  1. the party reveals confidential information Correct answer.
  2. the closing statement is prepared
  3. the multiple listing service entry is made
  4. the listing agreement expires

Explanation

Agency disclosure must come early enough that the party understands whom the licensee represents before sharing confidential financial or negotiating information. Disclosure at closing or after the fact is too late to protect the party.

Question 39Agency Relationships, Fiduciary Duties, and Representation Disclosures

A broker never signs a representation agreement, but she routinely advises a buyer, reviews contracts for him, and negotiates on his behalf, and the buyer relies on her to do so. A court would most likely find

  1. a designated agency
  2. a subagency
  3. a customer relationship
  4. an implied agency Correct answer.

Explanation

Agency can arise from the conduct of the parties rather than a written contract; where the broker acts on the buyer's behalf and the buyer relies on that conduct, an implied agency exists. Written agreements are a best practice and often required by statute for enforceability of compensation, but they are not the only route to a fiduciary relationship.

Question 40Agency Relationships, Fiduciary Duties, and Representation Disclosures

When a cooperating broker acts as a subagent of the listing broker, the cooperating broker's fiduciary duty runs to

  1. both the buyer and the seller
  2. the buyer
  3. the cooperating broker's own broker only
  4. the seller Correct answer.

Explanation

A subagent steps into the listing broker's shoes and owes the seller the same fiduciary duties the listing broker owes, while also answering to the listing broker. The buyer in a subagency arrangement is a customer with no fiduciary claim on the cooperating broker.

Question 41Agency Relationships, Fiduciary Duties, and Representation Disclosures

A licensee listed a home and learned that the seller would accept $30,000 below the asking price. The listing expired, and the same licensee is now engaged by a buyer who wants that home. Which is correct?

  1. The licensee may share the figure because the listing has expired
  2. The licensee may share the figure if the buyer keeps it confidential
  3. The licensee must not use that confidential information for the buyer Correct answer.
  4. The licensee is now a dual agent and may reveal the figure to either side

Explanation

Confidential information acquired during an agency relationship remains protected after the relationship ends and may not be used against the former client. The licensee may represent the buyer, but must not exploit the seller's former negotiating position.

Question 42Agency Relationships, Fiduciary Duties, and Representation Disclosures

A salesperson exceeds her authority by signing a binding contract in the broker's name. The broker later learns of the contract and accepts its benefits. The agency relationship is created by

  1. ratification Correct answer.
  2. estoppel
  3. operation of law
  4. novation

Explanation

Ratification occurs when a principal, with knowledge of the facts, approves an act performed without authority, which makes the act binding as though originally authorized. Estoppel instead bars a principal from denying agency when a third party has relied on appearances the principal created.

Question 43Agency Relationships, Fiduciary Duties, and Representation Disclosures

An agent arranges to buy her own listing through a relative without telling the seller of her interest. The seller's best remedy is to

  1. rescind the sale and seek damages for breach of loyalty Correct answer.
  2. accept the sale because the deed has recorded
  3. collect the commission from the multiple listing service
  4. only file a complaint with the licensing authority

Explanation

Self-dealing without full disclosure and the principal's consent is a breach of the duty of loyalty, and the principal may rescind the transaction and recover any losses. A licensing complaint is a separate regulatory consequence and does not replace the seller's civil remedies.

Question 44Agency Relationships, Fiduciary Duties, and Representation Disclosures

Which set of obligations is owed to an unrepresented customer in a transaction?

  1. Obedience to the customer's instructions
  2. Honest and fair dealing with disclosure of known material facts Correct answer.
  3. Full confidentiality of financial information
  4. Loyalty and advocacy

Explanation

A customer receives honesty, fair dealing, and disclosure of known material facts, but not the fiduciary duties reserved for clients. Loyalty, confidentiality, and obedience run only to the principal the licensee represents.

Question 45Real Property Ownership, Estates, Encumbrances, and Land Use Controls

A conveyance grants ownership of a parcel with no stated conditions, no expiration date, and full rights to sell or leave it to heirs. Which estate does this create?

  1. Life estate
  2. Estate for years
  3. Fee simple determinable
  4. Fee simple absolute Correct answer.

Explanation

A fee simple absolute is the largest estate recognized: it is of potentially infinite duration, freely alienable, inheritable, and subject to no stated terminating event. Lesser freehold and leasehold estates either end at a death, at a fixed date, or on a stated occurrence.

Question 46Real Property Ownership, Estates, Encumbrances, and Land Use Controls

An easement that benefits a neighboring parcel and passes automatically with title to that parcel whenever it is sold is best described as:

  1. A profit a prendre
  2. An easement in gross
  3. An easement appurtenant Correct answer.
  4. A license

Explanation

An easement appurtenant attaches to a dominant tenement and is transferred automatically with that land, regardless of whether the deed mentions it. An easement in gross benefits a person rather than a parcel, and neither a license nor a profit shares the appurtenant characteristics described.

Question 47Real Property Ownership, Estates, Encumbrances, and Land Use Controls

A lakefront owner tells a neighbor she may walk across the yard to reach the water; the permission is oral and the owner may withdraw it at any time. This arrangement is:

  1. An easement by prescription
  2. An easement by necessity
  3. A license Correct answer.
  4. A dedication

Explanation

A license is revocable permission to use another's land; it creates no interest in real property and is not binding on a later purchaser. Easements by prescription or necessity arise only from statutory use periods or strict necessity, not from casual permission.

Question 48Real Property Ownership, Estates, Encumbrances, and Land Use Controls

An owner's oddly shaped lot cannot physically accommodate the front setback required by the zoning ordinance. The owner seeks relief from the board of adjustment. The appropriate request is:

  1. A conditional use permit
  2. A variance Correct answer.
  3. Rezoning of the parcel
  4. A nonconforming use designation

Explanation

A variance authorizes a departure from a dimensional standard such as setback, height, or lot coverage when strict application would cause practical difficulty or unnecessary hardship. Rezoning changes the district classification, and a conditional use permit approves a use already listed as permissible with conditions.

Question 49Real Property Ownership, Estates, Encumbrances, and Land Use Controls

Two unmarried buyers take title as tenants in common, holding unequal fractional shares. When one of them dies, that owner's interest:

  1. Reverts to the original grantor
  2. Escheats to the state
  3. Passes to the deceased owner's heirs Correct answer.
  4. Passes automatically to the surviving co-owner

Explanation

Tenants in common have no right of survivorship, so each owner may devise the interest by will or have it pass by intestate succession. Survivorship is a feature of joint tenancy, which requires express language and the four unities.

Question 50Real Property Ownership, Estates, Encumbrances, and Land Use Controls

Under Montana law, a claimant asserting title to land by adverse possession must ordinarily hold the land for at least five years and must also:

  1. Pay the taxes levied on the land during that period Correct answer.
  2. Post a public notice on the parcel for the full holding period
  3. Obtain a licensed survey of the parcel's boundary lines
  4. Record a notice of the claim with the county clerk and recorder

Explanation

Montana's five-year adverse possession statute protects a claimant only if the taxes levied on the land were paid during the period of occupancy. The other acts are not statutory conditions of the claim.