A legal method of acquiring title through open, hostile, and continuous possession for a statutory period.
Why Adverse Possession matters on the exam
This term belongs to Transfer of Title. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Adverse Possession
Every Freehold question shows why the right answer is right — and cites its source.
A brokerage is sued after an agent misrepresents square footage to a buyer. The buyer's attorney names both the agent and the broker as defendants even though the broker never spoke with the buyer. This is most likely an application of:
Vicarious liability
Escheat
Adverse possession of the property
The doctrine of laches
Show answer & explanation
Vicarious liability — Because the agent's misrepresentation occurred while conducting brokerage business, the broker can be named as a defendant under vicarious liability principles even absent personal involvement.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which of the following is NOT one of the recognized ways an agency relationship is created?
Adverse possession
Express agreement
Implied conduct
Ratification
Show answer & explanation
Adverse possession — Adverse possession is a method of acquiring title to real property, not a method of creating agency; agency is created by express agreement, implied conduct, ratification, or estoppel.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
When a lease expires and the tenant remains in possession while continuing to pay rent that the landlord accepts, this situation is generally treated as a:
Estate for years, usually renewed for the identical original term
Holdover tenancy, typically converting to a periodic tenancy
A genuine tenancy at sufferance that cannot be ended by either party
Freehold estate granted by adverse possession
Show answer & explanation
Holdover tenancy, typically converting to a periodic tenancy — When a landlord accepts rent from a tenant who stays past the lease expiration, the arrangement typically becomes a holdover tenancy that courts treat as a periodic tenancy, often month to month.
Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management
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