PSI National Real Estate Exam Final
Complete Questions and 100% Correct
Answers (Ultimate Pass Guide)
• What is the main difference between tendency in common and joint tendency is that
with tendency in common, when a co-owner dies? -✓✓the undivided interest passes to
his heirs
• A tenant rented an apartment signing a 15 month lease. After the lease expired, the
tenant paid 1 month's rent and got a receipt. What kind of leasehold does this tenant
have? -✓✓Tenancy at will
• Although states make specific laws governing water rights and the rights in land that
borders water, most states generally follow one of two basic doctrines regarding water
rights. Either riparian and littoral rights are automatically conveyed with property, or all
water rights are controlled by the state under the doctrine of? -✓✓prior appropriation
• Legal description using the government survey system are not generally used in? -
✓✓the original 13 states
• An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called? -✓✓a
mechanic's lien
• Building codes are? -✓✓ordinances that specify construction standards
• An environmental impact statement (IES) -✓✓projects the impact on environment or
proposed project
• A lawsuit for inverse condemnation may be brought by -✓✓the homeowner
• A deed restriction is applicable to the activities of? -✓✓all owners present and future
• A land owner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. What would most likely be used to obtain permission for this
store? -✓✓Conditional use permit or zoning variance
• When preparing a market data estimate of value, what category of adjustment is NOT
essential? -✓✓the original cost of the building
• Depreciation is calculated based on the? -✓✓cost of the building only
, • A competitive market analysis is MOST often used for? -✓✓setting a listing price
• A prospective seller asks a salesperson to recommend a listing price for a property.
The salesperson should suggest? -✓✓a competitive market analysis to determine the
property's value
• A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✓✓anticipation
• A formal appraisal will ALWAYS be REQUIRED when the -✓✓lender wants to sell the
mortgage to the secondary market
• If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? -✓✓Business district zoned for a six-story office building
• Federal Truth-in-lending laws are also known as? -✓✓regulation z.
• Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? -✓✓A couple in their late 60's who need to tap their home equity to
help cover their expenses but do not want to sell their house.
• The FHA functions MOST like? -✓✓an insurance company
• According to the Truth-in-lending act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the -✓✓prepayment penalties
and rebates
• A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to? -✓✓demand immediate payment of the entire note
• In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT? -✓✓more variety loan programs available
• An exclusive right to sell listing obtained by a broker associate belongs to? -✓✓the
employing broker only
• A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is? -✓✓an agent to the broker and a subagent to the principal
Complete Questions and 100% Correct
Answers (Ultimate Pass Guide)
• What is the main difference between tendency in common and joint tendency is that
with tendency in common, when a co-owner dies? -✓✓the undivided interest passes to
his heirs
• A tenant rented an apartment signing a 15 month lease. After the lease expired, the
tenant paid 1 month's rent and got a receipt. What kind of leasehold does this tenant
have? -✓✓Tenancy at will
• Although states make specific laws governing water rights and the rights in land that
borders water, most states generally follow one of two basic doctrines regarding water
rights. Either riparian and littoral rights are automatically conveyed with property, or all
water rights are controlled by the state under the doctrine of? -✓✓prior appropriation
• Legal description using the government survey system are not generally used in? -
✓✓the original 13 states
• An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called? -✓✓a
mechanic's lien
• Building codes are? -✓✓ordinances that specify construction standards
• An environmental impact statement (IES) -✓✓projects the impact on environment or
proposed project
• A lawsuit for inverse condemnation may be brought by -✓✓the homeowner
• A deed restriction is applicable to the activities of? -✓✓all owners present and future
• A land owner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. What would most likely be used to obtain permission for this
store? -✓✓Conditional use permit or zoning variance
• When preparing a market data estimate of value, what category of adjustment is NOT
essential? -✓✓the original cost of the building
• Depreciation is calculated based on the? -✓✓cost of the building only
, • A competitive market analysis is MOST often used for? -✓✓setting a listing price
• A prospective seller asks a salesperson to recommend a listing price for a property.
The salesperson should suggest? -✓✓a competitive market analysis to determine the
property's value
• A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✓✓anticipation
• A formal appraisal will ALWAYS be REQUIRED when the -✓✓lender wants to sell the
mortgage to the secondary market
• If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? -✓✓Business district zoned for a six-story office building
• Federal Truth-in-lending laws are also known as? -✓✓regulation z.
• Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? -✓✓A couple in their late 60's who need to tap their home equity to
help cover their expenses but do not want to sell their house.
• The FHA functions MOST like? -✓✓an insurance company
• According to the Truth-in-lending act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the -✓✓prepayment penalties
and rebates
• A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to? -✓✓demand immediate payment of the entire note
• In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT? -✓✓more variety loan programs available
• An exclusive right to sell listing obtained by a broker associate belongs to? -✓✓the
employing broker only
• A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is? -✓✓an agent to the broker and a subagent to the principal
