PSI New Jersey Real Estate State Practice Exam

An easement differs from a deed in that an easement:

1. Allows for the use of land without ownership

2. Transfers ownership of the property

3. Is a permanent fixture of the property

4. Requires a tax assessment

The correct answer is: Allows for the use of land without ownership

An easement allows for the use of land without transferring ownership of the property, which is the primary characteristic that distinguishes it from a deed. A deed is a legal document that conveys ownership rights of real estate from one party to another. When someone holds an easement, they have the right to use a portion of someone else's property for a specific purpose, such as accessing a road or utility lines, without attaining ownership of that land. The other options focus on aspects that do not define easements. For instance, transferring ownership is the main function of a deed, while easements merely grant usage rights. The assertion that easements are a permanent fixture of the property does not fully capture their nature, as easements can be temporary or can be terminated under certain conditions. Lastly, the requirement of a tax assessment is not a characteristic of easements; property taxes are usually assessed based on ownership rather than the rights granted under an easement.