Set 5 completes this five-part practice series with Real Property and Business Associations & Relationships. The 50 questions are split evenly between the two subjects and have been realigned to the current NCBE foundational-concepts outline rather than older bar-review topic lists.
Real Property covers estates and future interests, co-ownership, landlord-tenant rules, covenants and servitudes, mortgages, foreclosure, deeds, recording, and marketable title. Business Associations focuses on agency, general partnerships, corporations, LLCs, promoters, authority, fiduciary duties, shareholder litigation, and limited-liability principles.
These subjects reward careful classification. Before choosing an answer, name the interest, relationship, entity, or source of authority involved; that extra few seconds often prevents a rule from the wrong category from taking over your analysis.
Want to test yourself? Select one answer for each question and avoid opening the optional explanations while you play. At the end, tap “See Answers & My Score” to reveal the correct answers, explanations, and your result automatically.
Format note: These are original four-choice, single-best-answer doctrine drills, not official NCBE questions or a full NextGen simulation. The official NextGen UBE also uses select-two-of-six standalone items, integrated question sets, and performance tasks. Pair this quiz with the official NCBE sample questions and current content scope.
- ✔ Freehold estates and future interests
- ✔ Concurrent ownership and waste
- ✔ Leases and constructive eviction
- ✔ Covenants, servitudes, mortgages and title
- ✔ Agency and authority
- ✔ General partnerships
- ✔ Corporations, promoters and shareholder rights
- ✔ LLCs, fiduciary duties and limited liability
Real Property: Estates, Future Interests & Co-Ownership (Q1–13)
REAL PROPERTY — PART 1Classify present and future estates, survivorship interests, waste, deeds, and recording priorities.
1. A "fee simple determinable" automatically terminates and reverts to the grantor when:
View Answer & Explanation Optional
Correct Answer: A — A fee simple determinable is created with limiting language ("so long as," "while," "during") and automatically reverts to the grantor (via a possibility of reverter) the moment the stated condition occurs — no court action needed.
2. A "fee simple subject to condition subsequent" differs from a fee simple determinable because:
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Correct Answer: C — The key distinction: fee simple determinable automatically ends; fee simple subject to condition subsequent requires the grantor to affirmatively exercise a right of entry (power of termination) — the grantee's estate does not automatically expire.
3. A "vested remainder" exists when the remainder is:
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Correct Answer: C — A vested remainder is one held by an ascertained (identified) person with no unfulfilled condition precedent — it is ready to become possessory the moment the preceding estate ends.
4. A "contingent remainder" exists when the remainder is held by:
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Correct Answer: A — A contingent remainder may fail if the person is never born/ascertained or the condition never occurs, making it the more uncertain of the two remainder types.
5. A future interest in a transferee that will cut short another transferee’s estate or the grantor’s retained estate is generally called:
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Correct Answer: D — An executory interest is a future interest held by a transferee that becomes possessory by divesting, or cutting short, another interest. It differs from a reversion or possibility of reverter, which are retained by the grantor.
6. A joint tenancy is characterized by the "four unities" of time, title, interest, and possession -- and its most distinctive feature is:
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Correct Answer: D — The right of survivorship is what makes joint tenancy distinct. When a joint tenant dies, their share automatically passes to the surviving co-owners — it cannot be devised by will or pass through intestacy.
7. A joint tenancy can be severed (converted to a tenancy in common) by:
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Correct Answer: C — A conveyance by one joint tenant to a third party severs the joint tenancy as to that share, because the new owner doesn't share the same time and title as the remaining joint tenants — creating a tenancy in common between the new owner and the remaining joint tenant(s).
8. Tenancy by the entirety is a form of concurrent ownership that:
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Correct Answer: D — Tenancy by the entirety is like a joint tenancy but stronger — available only to married couples in recognizing jurisdictions, with survivorship rights and protection against individual creditors, since neither spouse can unilaterally sever it.
9. A life tenant's duties to the remainderman include an obligation not to commit "waste." Voluntary (affirmative) waste occurs when the life tenant:
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Correct Answer: B — Voluntary (affirmative) waste involves active acts of destruction — tearing down structures or stripping resources beyond what existed at the time the life estate was created. Permissive waste (failing to repair) is a separate concept.
10. A life tenant substantially changes property in a way that increases its value but alters the property’s character. This type of conduct is commonly described as:
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Correct Answer: A — Ameliorative waste is a substantial alteration that changes the property’s character even though the change may increase its value. Modern courts may be more flexible about such changes when circumstances have materially changed.
11. A "warranty deed" provides the grantee with which of the following covenants?
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Correct Answer: B — A general warranty deed includes the full package of title covenants: seisin, right to convey, against encumbrances, warranty, quiet enjoyment, and further assurances — the grantor promises to defend the title against all claims, even those arising before the grantor owned the property.
12. A "quitclaim deed" conveys:
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Correct Answer: B — A quitclaim deed gives the grantee exactly what the grantor has — which could be everything or nothing — with zero title warranties. If the grantor had no interest, the grantee gets nothing and cannot sue the grantor.
13. Under a "race-notice" recording statute, a subsequent purchaser is protected from a prior unrecorded conveyance only if:
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Correct Answer: C — Race-notice statutes require the subsequent bona fide purchaser to satisfy both conditions: no notice of the prior conveyance AND first to record. Pure race statutes only require first to record; pure notice statutes only require no notice.
Real Property: Leases, Mortgages, Covenants & Title (Q14–25)
REAL PROPERTY — PART 2Move through leasehold rules, servitudes, mortgage rights, foreclosure, deficiency exposure, and marketable title.
14. A "tenancy at will" is one that:
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Correct Answer: A — A tenancy at will has no fixed duration and can be ended by either party at any time, though many states require reasonable advance notice by statute.
15. A "holdover tenant" (one who remains in possession after a lease term ends) can generally be treated by the landlord as either:
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Correct Answer: D — At common law, the landlord has the election to treat a holdover tenant either as a trespasser (seek eviction) or to bind them to a new periodic tenancy on the same terms as the original lease.
16. When a tenant assigns their lease to a new tenant, the original tenant:
View Answer & Explanation Optional
Correct Answer: B — An assignment transfers the entire leasehold to the assignee, who is in privity of estate with the landlord. But the original tenant remains on the hook via privity of contract unless the landlord expressly releases them (novation).
17. Constructive eviction occurs when:
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Correct Answer: B — Constructive eviction is a landlord's wrongful act (or failure to act) that makes the premises uninhabitable, entitling the tenant to vacate and treat the lease as terminated — but the tenant must actually leave to claim it.
18. For the burden of a traditional real covenant to run with the land at law, which group of requirements is generally relevant?
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Correct Answer: C — Traditional real-covenant analysis generally looks for a writing, intent that the covenant bind successors, notice, a covenant that touches and concerns the land, and the required horizontal and vertical privity. Equitable-servitude analysis does not use the same privity requirements.
19. For the burden of an equitable servitude to bind a successor, which statement best distinguishes it from the traditional burden of a real covenant?
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Correct Answer: D — Equity does not impose the traditional horizontal- and vertical-privity requirements used for the burden of a real covenant. A writing or recognized exception, intent, notice, and a restriction tied to the land remain central to equitable-servitude analysis.
20. A mortgage given to the seller or to a lender to finance the buyer’s acquisition of the mortgaged property is commonly called:
View Answer & Explanation Optional
Correct Answer: A — A purchase-money mortgage secures financing used to acquire the property itself. It may be given to the seller for unpaid purchase price or to a third-party lender whose funds finance the acquisition.
21. The "equity of redemption" gives a mortgagor the right to:
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Correct Answer: D — The equity of redemption is the mortgagor's common law right to reclaim the property after default by paying the full amount owed, before the foreclosure sale is completed.
22. An acceleration clause in a mortgage or promissory note generally allows the lender, after a specified default, to:
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Correct Answer: D — An acceleration clause permits the lender to declare the full unpaid debt due after the contractually specified default. Enforcement remains subject to the mortgage documents and applicable foreclosure and consumer-protection law.
23. A non-judicial (power of sale) foreclosure allows a lender to sell the mortgaged property without court approval when:
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Correct Answer: A — States permitting non-judicial foreclosure allow lenders to sell property through a trustee or under a power of sale in the deed of trust, following strict statutory notice requirements — it's faster and cheaper than judicial foreclosure.
24. If a foreclosure sale brings in less than the amount owed on the mortgage debt, a deficiency judgment may allow the lender to:
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Correct Answer: C — A deficiency is the portion of the mortgage debt left unpaid after foreclosure-sale proceeds are credited. Where applicable law permits, the lender may seek a deficiency judgment for that remaining balance; state law can limit or prohibit such judgments.
25. At closing, a seller who has promised to deliver marketable title generally must provide title that is:
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Correct Answer: B — Marketable title is title reasonably free from doubt: a reasonable buyer should not face a substantial risk of litigation over ownership or serious undisclosed defects. The standard does not require perfect title against every imaginable claim.
Business Associations: Agency, Partnerships & LLCs (Q26–38)
BUSINESS ASSOCIATIONS — PART 1Apply agency authority, promoter duties, LLC governance, partnership formation, dissociation, partner authority, and vicarious liability.
26. An agency relationship is generally created when:
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Correct Answer: A — Agency is a consensual relationship: both the principal's manifestation and the agent's consent are required. It doesn't have to be written — it can be created informally or even implied by conduct.
27. "Actual authority" of an agent may be either express or implied. Implied actual authority exists when:
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Correct Answer: D — Implied actual authority covers what the agent reasonably understands is necessary to carry out their express authority — like an agent authorized to manage a store implicitly having authority to hire staff. It flows from the principal to the agent, unlike apparent authority which flows from the principal to the third party.
28. A principal is bound by a contract the agent makes without authority if the principal later:
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Correct Answer: C — Ratification allows a principal to retroactively adopt an agent's unauthorized act, binding themselves to the transaction as if authority had existed from the beginning — provided the principal had knowledge of the material facts and ratified the entire act.
29. Before a corporation is formed, a promoter signs a contract on behalf of the planned corporation. Unless the other party agrees otherwise, the promoter is generally:
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Correct Answer: D — A promoter who enters a pre-incorporation contract is generally personally liable unless the contract provides otherwise or the other party later agrees to a novation. A corporation may adopt the contract after formation, but adoption alone ordinarily does not release the promoter.
30. A corporate promoter who acquires property and then arranges for the new corporation to buy it generally must:
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Correct Answer: A — Promoters owe fiduciary-style duties in organizing the corporation and may not use the position for undisclosed self-dealing or secret profits. Full disclosure to appropriate, disinterested decision-makers is central to the analysis.
31. Which statement best describes a core feature of a limited liability company (LLC)?
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Correct Answer: A — An LLC is a separate entity whose members generally are not personally liable solely because they are members. Its internal management may be member-managed or manager-managed as provided by governing law and the operating agreement.
32. An LLC operating agreement generally serves to:
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Correct Answer: C — An operating agreement is the principal private governance document for an LLC. It can alter many default rules about management and member relations, but mandatory statutory provisions still control.
33. Assume an LLC statute provides that an LLC is member-managed unless its operating agreement states that it is manager-managed. The operating agreement is silent. Who ordinarily has management authority?
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Correct Answer: A — Under the stated default rule, silence in the operating agreement leaves the LLC member-managed. The members therefore exercise the management authority provided by the governing statute.
34. A general partnership is formed when:
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Correct Answer: C — A general partnership generally arises when two or more persons associate to carry on as co-owners a business for profit. No special filing is ordinarily required, and parties can create a partnership even if they did not use the word "partnership."
35. Under modern partnership law, a partner’s “dissociation” generally means that the partner:
View Answer & Explanation Optional
Correct Answer: B — Dissociation describes a partner’s departure from the partnership relationship. It does not automatically mean dissolution in every case; the consequences, including continuation, winding up, and any buyout, depend on the governing partnership law and agreement.
36. A partner enters a contract in the ordinary course of the partnership’s business. The partnership is generally bound when:
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Correct Answer: C — Each partner is generally an agent of the partnership for its business. An act apparently carrying on the ordinary course can bind the partnership unless the partner lacked authority and the third party knew or had notice of the lack of authority.
37. A person who is not actually a partner may nevertheless face partnership liability to a third party under a partnership-by-estoppel theory when:
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Correct Answer: B — Partnership-by-estoppel principles can impose liability when a person holds out, or knowingly permits another to hold them out, as a partner and a third party extends credit or otherwise relies on that representation.
38. A principal is generally vicariously liable for a tort committed by an employee when the tort occurs:
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Correct Answer: A — Under respondeat superior, an employer or principal is generally vicariously liable for an employee’s tort committed within the scope of employment. Independent-contractor liability is treated differently and is subject to separate exceptions.
Business Associations: Corporations, Fiduciary Duties & Shareholder Rights (Q39–50)
BUSINESS ASSOCIATIONS — PART 2Finish with formation, bylaws, fiduciary duties, conflicted transactions, derivative claims, shareholder voting, officer authority, veil piercing, and LLC member liability.
39. A corporation is formed when:
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Correct Answer: D — A corporation is a creature of statute — it legally exists only upon the proper filing and acceptance of articles of incorporation (or a certificate of incorporation) with the state.
40. Corporate bylaws primarily function as:
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Correct Answer: B — Bylaws set internal governance procedures, such as rules for meetings and officers, but they cannot override the corporation’s articles of incorporation or mandatory provisions of governing corporate law.
41. Directors owe a "duty of care" to the corporation, which generally requires them to act:
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Correct Answer: D — The duty of care requires directors to be reasonably informed and deliberate — not to be right, just to act as a reasonably prudent person would. The business judgment rule protects directors from liability for honest mistakes made after reasonable deliberation.
42. The duty of loyalty requires directors to:
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Correct Answer: C — The duty of loyalty addresses self-dealing, conflicts of interest, misuse of corporate opportunities, and similar conduct in which a director’s personal interests may conflict with duties owed to the corporation. The consequences of disclosure or approval depend on the governing corporate statute and applicable fiduciary law.
43. When a director has a conflict of interest in a corporate transaction, the transaction may still be valid if:
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Correct Answer: B — A conflicted transaction is not automatically invalid. Depending on governing corporate law, disclosure and approval by qualified disinterested directors or shareholders, or a showing that the transaction was fair to the corporation, can affect whether the transaction is protected or enforceable.
44. A "derivative suit" is brought by a shareholder:
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Correct Answer: A — Derivative suits allow shareholders to enforce corporate claims (like suing directors for breach of fiduciary duty) when the board refuses to do so — any damages recovered belong to the corporation, not the individual shareholder who brought the suit.
45. A shareholder claim is most likely derivative, rather than direct, when the alleged injury is:
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Correct Answer: C — A derivative action seeks to enforce a right belonging to the corporation, so the corporation is the primary injured party. A direct action instead vindicates a shareholder’s own separate right or injury.
46. A shareholder who is entitled to vote at a corporate meeting generally may vote:
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Correct Answer: B — Corporate statutes generally permit shareholders to vote in person or by proxy, subject to applicable formalities and the corporation’s governing documents.
47. Cumulative voting, when available for electing directors, is designed primarily to:
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Correct Answer: B — Cumulative voting lets a shareholder aggregate votes that otherwise would be spread across director seats and concentrate them on selected candidates. This can give a minority block a better chance to elect a director.
48. A corporate officer’s contract may bind the corporation when the officer acts with:
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Correct Answer: A — Like other agents, corporate officers can bind the corporation when acting within actual authority or when the corporation’s manifestations create apparent authority on which the third party reasonably relies.
49. A court may disregard limited liability and hold owners personally liable for entity obligations under a veil-piercing theory when:
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Correct Answer: D — Veil piercing is an exceptional remedy. Courts look to the governing jurisdiction’s factors, which can include misuse of the entity form, commingling, failure to respect separateness, undercapitalization, and whether limited liability would promote fraud or injustice.
50. A member of an LLC is generally personally liable for an LLC obligation when:
View Answer & Explanation Optional
Correct Answer: B — LLC members generally are not personally liable solely because of member status. Personal liability can still arise from a personal guarantee, the member’s own tortious conduct, veil piercing, or another independent legal basis.
You have now reached the end of the five-set series. Use the subject-by-subject score pattern to decide what comes next: revisit rules you repeatedly missed, then shift to official integrated question sets and performance tasks.
Frequently Asked Questions
What Real Property topics are in the current NextGen bar exam scope?▾
The current Real Property outline includes present and future interests, co-ownership, landlord-tenant relationships, covenants and servitudes, real-estate contracts, mortgages and foreclosure, deeds, recording, and related title rules.
Is the Rule Against Perpetuities tested as a foundational Real Property concept on the current NextGen UBE?▾
No. The July 2026 through February 2027 NCBE content scope expressly states that the Real Property foundational-concepts outline does not include the Rule Against Perpetuities.
What Business Associations topics does this set cover?▾
This set focuses on the current foundational outline: agency, authority and vicarious liability, general partnerships, corporations and LLCs, promoters, management and control, fiduciary duties, direct and derivative litigation, and limited-liability principles.
Are these official NCBE Real Property or Business Associations questions?▾
No. They are original study questions aligned to the current content outline and should be paired with official NCBE samples for full-format practice.
Educational practice only. These original questions are not official NCBE materials and do not predict a bar-exam score. Rules can be tested through supplied legal resources and may vary by jurisdiction; use the current NCBE content scope and your jurisdiction’s official guidance as your controlling sources.
