PSI MA Real Estate Exam Study Guide
Latest Update Graded A
Appraisal ✔✔An estimation of a property's value, usually prepared by a professional who is
licensed in this field.
Brokerage ✔✔The business of bringing people together in a real estate transaction.
Commerical ✔✔The types of properties that include office spaces, shopping centers, stores,
theaters, hotels, parking facilities, etc.
Development ✔✔The term for the construction of improvements upon the land.
Elevation Certificate ✔✔Insurance agents are required to obtain one of these on any property
before issuing quotes for flood insurance.
Financing ✔✔The pledging of real property and collateral for the repayment of a loan through a
mortgage or deed of trust.
,Flood Insurance ✔✔This type of homeowner's insurance policy covers "rising water" problems
such as a burst water main, overloaded drains, and melting snow. It is usually an optional add-on
policy that becomes effective 30 days after purchase, unless the property is in a specific area and
is collateral for a federal loan, in which case it is a mandatory policy and effective immediately.
Improvements ✔✔Additions to property that increase its value or enhance its appearance. It can
include buildings, fixtures, and landscaping.
Property Management ✔✔A broad term for a person or company hired to maintain and manage a
property on behalf of its owners, and who are to maximize the owner's returns.
Special Flood Hazard Area ✔✔Properties in this area are required by federal law to have special
insurance as part of any federally-backed mortgages.
Subdivision ✔✔The process of splitting a single property into smaller parcels.
Residential ✔✔The type of properties that include single and multi-family homes.
,Industrial ✔✔The types of properties that include warehouses, factories, power plants, and other
manufacturing areas, even if the property has a storefront attached.
Agricultural ✔✔The types of properties that include farmlands, timberlands, orchards, and
ranches.
Special Purpose ✔✔The types of properties that include churches, schools, cemeteries, and
government-held lands.
Real Estate Market ✔✔The setting where real property is bought and sold and prices are
established.
Submarket ✔✔A real estate market defined by property type and/or geographic location.
National Association of Realtors ✔✔A professional real estate organization that requires
members to uphold a specific set of ethics and pay dues. In turn, the members can call
themselves Realtors.
, Seller's Market ✔✔The situation where demand for real property is greater than the supply,
which causes sale prices to rise and builders to become more motivated to build.
Location ✔✔This characteristic of real property is important because a parcel's value is impacted
by surrounding land uses.
Demographics ✔✔This factor determines the quantity and type of housing in demand in a
particular area. It evaluates family sizes, ratio of adults to children, number of senior citizens,
family incomes, lifestyles, etc.
Property ✔✔This term refers to both a physical article and the rights and interests involved in its
use of ownership.
Rights of Ownership ✔✔A "bundle" of legal rights associated with owned property. These rights
include possession, control of the property (within legal bounds), enjoyment of the property,
exclusion, and disposition.
Appurtenance ✔✔Anything that is used with land for its benefits. Examples include subsurface,
air, and water rights, as well as gardens and certain easements.
Latest Update Graded A
Appraisal ✔✔An estimation of a property's value, usually prepared by a professional who is
licensed in this field.
Brokerage ✔✔The business of bringing people together in a real estate transaction.
Commerical ✔✔The types of properties that include office spaces, shopping centers, stores,
theaters, hotels, parking facilities, etc.
Development ✔✔The term for the construction of improvements upon the land.
Elevation Certificate ✔✔Insurance agents are required to obtain one of these on any property
before issuing quotes for flood insurance.
Financing ✔✔The pledging of real property and collateral for the repayment of a loan through a
mortgage or deed of trust.
,Flood Insurance ✔✔This type of homeowner's insurance policy covers "rising water" problems
such as a burst water main, overloaded drains, and melting snow. It is usually an optional add-on
policy that becomes effective 30 days after purchase, unless the property is in a specific area and
is collateral for a federal loan, in which case it is a mandatory policy and effective immediately.
Improvements ✔✔Additions to property that increase its value or enhance its appearance. It can
include buildings, fixtures, and landscaping.
Property Management ✔✔A broad term for a person or company hired to maintain and manage a
property on behalf of its owners, and who are to maximize the owner's returns.
Special Flood Hazard Area ✔✔Properties in this area are required by federal law to have special
insurance as part of any federally-backed mortgages.
Subdivision ✔✔The process of splitting a single property into smaller parcels.
Residential ✔✔The type of properties that include single and multi-family homes.
,Industrial ✔✔The types of properties that include warehouses, factories, power plants, and other
manufacturing areas, even if the property has a storefront attached.
Agricultural ✔✔The types of properties that include farmlands, timberlands, orchards, and
ranches.
Special Purpose ✔✔The types of properties that include churches, schools, cemeteries, and
government-held lands.
Real Estate Market ✔✔The setting where real property is bought and sold and prices are
established.
Submarket ✔✔A real estate market defined by property type and/or geographic location.
National Association of Realtors ✔✔A professional real estate organization that requires
members to uphold a specific set of ethics and pay dues. In turn, the members can call
themselves Realtors.
, Seller's Market ✔✔The situation where demand for real property is greater than the supply,
which causes sale prices to rise and builders to become more motivated to build.
Location ✔✔This characteristic of real property is important because a parcel's value is impacted
by surrounding land uses.
Demographics ✔✔This factor determines the quantity and type of housing in demand in a
particular area. It evaluates family sizes, ratio of adults to children, number of senior citizens,
family incomes, lifestyles, etc.
Property ✔✔This term refers to both a physical article and the rights and interests involved in its
use of ownership.
Rights of Ownership ✔✔A "bundle" of legal rights associated with owned property. These rights
include possession, control of the property (within legal bounds), enjoyment of the property,
exclusion, and disposition.
Appurtenance ✔✔Anything that is used with land for its benefits. Examples include subsurface,
air, and water rights, as well as gardens and certain easements.
