PSI NATIONAL EXAM FOR REAL ESTATE LATEST 2024
TEST BANK 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |
ALREADY GRADED A+
Prior to the ______, there was no legal protection for women who endured sexual
harassment from landlords and sellers when they attempted to obtain housing. -
ANSWER: Housing and Community Development Act of 1974
The Federal Trade Commission determines penalty severity based on __________.
Penalties range from a cease-and-desist order to corrective advertising, civil
penalties, consumer and other monetary remedies, and informational remedies. -
ANSWER: Violation Severity
Beginning at a stake and stones about 30 feet from the center of the brook that runs
across the road South westerly from the dwelling house of the late Jebediah Smith
now occupied by the widow Callie Thornton and in the west line of the highway
leading by the dwelling house now occupied by the widow Callie Thornton ... -
ANSWER: Metes and Bounds Legal Description
S ½ SE ¼ NW ¼ Section 14, Township Clarkson - ANSWER: Rectangular Government
Survey System
Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at
the Recorder of Deeds - ANSWER: Lot-And-Block Legal Description
A parcel of land is three-quarters of a mile by 2,800 feet. The price is $2,500 per
acre. How much is the land worth? - ANSWER: 5,280 × .75 (3/4 of a mile) = 3,960 feet
3,960 x 2,800 feet, or 11,088,000 square feet
11,088,000 ÷ 43,560 (square feet in an acre) = 254.55 acres
$2,500 × 254.55 = $636,375
The current property owner conveys ownership to a new owner as long as some
event does or doesn't occur - ANSWER: Fee Simple Determinable Estate
The current property owner conveys ownership to a new owner on a specific
condition - ANSWER: Fee Simple Subject To Condition Subsequent Estate
A lease that ends on a specific date and must be renewed by mutual agreement
between the landlord and tenant - ANSWER: Estate For Years
A lease that automatically renews at the end of its term (such as a month-to-month
lease) - ANSWER: Periodic Estate
,A lease without an established ending that can be terminated by either party -
ANSWER: Estate At Will
A lease in which a tenant (referred to as a holdover tenant) didn't leave when the
lease expired - ANSWER: Estate At Sufferance
One person owns the property with no joint interest by any other person - ANSWER:
Ownership in Severalty
A form of co-ownership in which each co-owner is entitled to possession of the
whole. An owner's ownership is inheritable and, upon the owner's death, doesn't
necessarily pass to the other owners - ANSWER: Tenancy in Common
A form of co-ownership in which equal ownership requires unity of time, title,
interest, and possession. - ANSWER: Joint Tenancy
Examples of common interest ownership - ANSWER: Timeshares, Condos,
Cooperatives
Which legal description method uses compass headings and directions? - ANSWER:
Metes and Bounds
True/False:
Timeshare estates can be sold or passed down to heirs. - ANSWER: True
LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it
was the place for family holiday gatherings, and LaTonya's sister was even married
there. That's why her family is so upset to learn that she plans to sell the bungalow
as soon as she gets it cleaned out. Which real property right allows her to sell the
property? - ANSWER: Disposition
Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to
stay in a beach condo for the first two weeks in May, in perpetuity. They don't
actually own a share of the unit. What did they purchase? - ANSWER: Timeshare Use
The percentage of a property's value the bank loaned/will loan on. It's the ratio of
the loan amount to the property's value, where value is the lesser of either
appraised value or sales price. - ANSWER: Loan-To-Value Ratio
Title that has no defects or clouds to which a reasonable buyer would object -
ANSWER: Marketable Title
Title in which there may be known defects (such as easements), but the title
company has notified the parties of the defect and has agreed to insure against it
(not list it as a policy exception). - ANSWER: Insurable Title
, On average, construction warranties cover structural damage or major construction
defects (such as foundation issues) for ____ years.
Major systems (heating, air conditioning, electrical, etc.) may also be covered for a
period of time, such as ___ to ___ years. - ANSWER: 10
2-5
What's the purpose of a chain of title? - ANSWER: To establish history of past
ownership
Which covenant requires the grantor to execute any necessary legal documents
(within his power) necessary to fix title defects discovered after closing? - ANSWER:
The covenant of further assurances
Two essential elements of a deed are the ______ - ANSWER: Signature of the grantor
and the habendum clause
Covenant in which the grantor holds title to and possession of the property. -
ANSWER: Covenant of Seisin
Covenant in which the grantor has the right to convey both title to and possession of
the property. - ANSWER: Covenant of right to convey
The grantor assures the grantee that there are no encumbrances against the title
other than those identified in public records or the deed itself. - ANSWER: Covenant
against encumbrances
Chain of title always begins with the ________ owner and goes back in time -
ANSWER: Current
A closing agent has several duties to perform before the closing, as well as several
after. Which of the following is a task the closing agent must complete after the
closing?
A. Perform a title search.
B. Arrange payoff of the existing loan.
C. Prepare a closing statement.
D. Obtain title insurance. - ANSWER: B. Arrange payoff of the existing loan
Four characteristics of value: - ANSWER: Demand, utility, scarcity, and transferability
(DUST)
Ashton, an appraiser, is estimating value using the sales comparison approach. He
applies more weight to two comparables over several others he used. What process
is he utilizing? - ANSWER: Correlation
When appraisers look past how a property is being used to determine a more
optimal function, what are they determining? - ANSWER: Highest and best use
TEST BANK 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |
ALREADY GRADED A+
Prior to the ______, there was no legal protection for women who endured sexual
harassment from landlords and sellers when they attempted to obtain housing. -
ANSWER: Housing and Community Development Act of 1974
The Federal Trade Commission determines penalty severity based on __________.
Penalties range from a cease-and-desist order to corrective advertising, civil
penalties, consumer and other monetary remedies, and informational remedies. -
ANSWER: Violation Severity
Beginning at a stake and stones about 30 feet from the center of the brook that runs
across the road South westerly from the dwelling house of the late Jebediah Smith
now occupied by the widow Callie Thornton and in the west line of the highway
leading by the dwelling house now occupied by the widow Callie Thornton ... -
ANSWER: Metes and Bounds Legal Description
S ½ SE ¼ NW ¼ Section 14, Township Clarkson - ANSWER: Rectangular Government
Survey System
Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at
the Recorder of Deeds - ANSWER: Lot-And-Block Legal Description
A parcel of land is three-quarters of a mile by 2,800 feet. The price is $2,500 per
acre. How much is the land worth? - ANSWER: 5,280 × .75 (3/4 of a mile) = 3,960 feet
3,960 x 2,800 feet, or 11,088,000 square feet
11,088,000 ÷ 43,560 (square feet in an acre) = 254.55 acres
$2,500 × 254.55 = $636,375
The current property owner conveys ownership to a new owner as long as some
event does or doesn't occur - ANSWER: Fee Simple Determinable Estate
The current property owner conveys ownership to a new owner on a specific
condition - ANSWER: Fee Simple Subject To Condition Subsequent Estate
A lease that ends on a specific date and must be renewed by mutual agreement
between the landlord and tenant - ANSWER: Estate For Years
A lease that automatically renews at the end of its term (such as a month-to-month
lease) - ANSWER: Periodic Estate
,A lease without an established ending that can be terminated by either party -
ANSWER: Estate At Will
A lease in which a tenant (referred to as a holdover tenant) didn't leave when the
lease expired - ANSWER: Estate At Sufferance
One person owns the property with no joint interest by any other person - ANSWER:
Ownership in Severalty
A form of co-ownership in which each co-owner is entitled to possession of the
whole. An owner's ownership is inheritable and, upon the owner's death, doesn't
necessarily pass to the other owners - ANSWER: Tenancy in Common
A form of co-ownership in which equal ownership requires unity of time, title,
interest, and possession. - ANSWER: Joint Tenancy
Examples of common interest ownership - ANSWER: Timeshares, Condos,
Cooperatives
Which legal description method uses compass headings and directions? - ANSWER:
Metes and Bounds
True/False:
Timeshare estates can be sold or passed down to heirs. - ANSWER: True
LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it
was the place for family holiday gatherings, and LaTonya's sister was even married
there. That's why her family is so upset to learn that she plans to sell the bungalow
as soon as she gets it cleaned out. Which real property right allows her to sell the
property? - ANSWER: Disposition
Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to
stay in a beach condo for the first two weeks in May, in perpetuity. They don't
actually own a share of the unit. What did they purchase? - ANSWER: Timeshare Use
The percentage of a property's value the bank loaned/will loan on. It's the ratio of
the loan amount to the property's value, where value is the lesser of either
appraised value or sales price. - ANSWER: Loan-To-Value Ratio
Title that has no defects or clouds to which a reasonable buyer would object -
ANSWER: Marketable Title
Title in which there may be known defects (such as easements), but the title
company has notified the parties of the defect and has agreed to insure against it
(not list it as a policy exception). - ANSWER: Insurable Title
, On average, construction warranties cover structural damage or major construction
defects (such as foundation issues) for ____ years.
Major systems (heating, air conditioning, electrical, etc.) may also be covered for a
period of time, such as ___ to ___ years. - ANSWER: 10
2-5
What's the purpose of a chain of title? - ANSWER: To establish history of past
ownership
Which covenant requires the grantor to execute any necessary legal documents
(within his power) necessary to fix title defects discovered after closing? - ANSWER:
The covenant of further assurances
Two essential elements of a deed are the ______ - ANSWER: Signature of the grantor
and the habendum clause
Covenant in which the grantor holds title to and possession of the property. -
ANSWER: Covenant of Seisin
Covenant in which the grantor has the right to convey both title to and possession of
the property. - ANSWER: Covenant of right to convey
The grantor assures the grantee that there are no encumbrances against the title
other than those identified in public records or the deed itself. - ANSWER: Covenant
against encumbrances
Chain of title always begins with the ________ owner and goes back in time -
ANSWER: Current
A closing agent has several duties to perform before the closing, as well as several
after. Which of the following is a task the closing agent must complete after the
closing?
A. Perform a title search.
B. Arrange payoff of the existing loan.
C. Prepare a closing statement.
D. Obtain title insurance. - ANSWER: B. Arrange payoff of the existing loan
Four characteristics of value: - ANSWER: Demand, utility, scarcity, and transferability
(DUST)
Ashton, an appraiser, is estimating value using the sales comparison approach. He
applies more weight to two comparables over several others he used. What process
is he utilizing? - ANSWER: Correlation
When appraisers look past how a property is being used to determine a more
optimal function, what are they determining? - ANSWER: Highest and best use
