PSI NATIONAL EXAM FOR REAL ESTATE LATEST 2024
TEST BANK 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |
ALREADY GRADED A+
What is money or property given to make up any difference in value or equity
between two properties in exchange? - ANSWER: BOOT
What is a tax deferred exchange of like kind property, where any additional monies
are taxable to receiver? - ANSWER: 1031 exchange
What is the clause in a mortgage or deed of trust that can be enforced to make the
entire debt due immediately if the the borrower defaults on an installment payment
or other covenant. - ANSWER: ACCELERATION CLAUSE
What is the acquiring of real property as a result of annexation of fixtures or
accretion? - ANSWER: ACCESSION
What is the increase or addition of land by deposit of sand or soil washed up
naturally from river, lake or sea? - ANSWER: ACCRETION
What is the loss in value resulting from property's physical deterioration, external
depreciation and functional obsolescence? - ANSWER: ACCRUED DEPRECIATION
What is done in front of a notary as a formal declaration? - ANSWER:
ACKNOWLEDGEMENT
What is 43,560 square feet? - ANSWER: Acre
What is the legal process that results in tenant being physically removed from leased
premises? - ANSWER: Actual Eviction
When a person expresses information or fact. Thant which is known, direct
knowledge? - ANSWER: Actual Notice
What is the tax levied according to value, generally used to refer to real estate tax,
also called the general tax. - ANSWER: AD Valorem Tax
Adjustable Rate Mortgage - Alternative Mortgage form where the interest rate is tied
to an indexed rate over the life of the loan, allowing interest rate risk to be shared by
borrowers and lenders - ANSWER: ARM
A person takes possession & use of a property belonging to another. Possession
must be open, notorious, hostile & uninterrupted for a certain period of time. -
ANSWER: Adverse Possession
,A written statement, made under oath by a seller or guarantor of real property and
acknowledged by a notary public, in which the grantor 1.) identifies himself and
indicates martial status, 2.) certifies that since the examination of the title no defects
have occurred on the title, and 3.) certifies that he is in possession of the property.
(401) - ANSWER: Affidavit of Title
A relationship in which one party (the principal) authorizes another party (the agent)
to act as the principal's representative in dealing with third parties. - ANSWER:
AGENCY
A person who acts or does business for another. - ANSWER: Agent
What is the act of transferring property to another. May be voluntary (gift or sale) or
involuntary (eminent domain or adverse possession). - ANSWER: Alienation
Also know as "due on sale" clause permits lender to declare balance of loan
immediately due if property is sold; prevents loan assumption without lender
approval - ANSWER: Alienation Clause
A change to the existing content of a contract (words added or deleted). Must be
initialed by all parties. - ANSWER: Amendment
American with Disabilities Act addresses rights of individuals with disabilities in
employment and public accommodations. - ANSWER: ADA
A loan in which the principal as well as the interest is payable in monthly or other
periodic installments over the term of the loan. - ANSWER: Amortized Loan
Change personal property to real property, such as mixing sand, stone and cement,
and making a sidewalk. - ANSWER: Annexation
Appraisal principle that holds that value can increase or decrease based on the
expectation that some future event may or may not occur. - ANSWER: Anticipation
designed to prevent companies from fixing prices, sharing markets, and gaining
unfair monopoly advantages. - ANSWER: Anti Trust Law
An estimate of the quantity, quality, or value of something. The process through
which conclusions of property value are obtained; also refers to the report that sets
forth the process of estimation and conclusion of value. - ANSWER: Appraisal
What is "runs with the land" ? s a right or privilege associated with the property
although not necessarily a part of it. ( ie parking space, easement) irrevocable -
ANSWER: Appurtenance
,Peoples desire for one area over another. location location location. - ANSWER: Area
Preference
Scarcity, Improvements, Permanence, area preference/location. - ANSWER: Four
Economic Characteristics of Real Estate
Immobility, indestructibility, Uniqueness - ANSWER: Three Physical Characteristics of
real Estate
What is PCEED, possession, control, enjoyment, exclusion and disposition. -
ANSWER: Bundle of Rights
once used in insulation and other materials that can cause respiratory diseases. -
ANSWER: Asbestos
The combining of two or more adjoining lots. - ANSWER: assemblage
What is the value set on a property for taxation purposes. - ANSWER: Assessed Value
Tax charge or levy according to established rates. - ANSWER: Assessment
What is the transfer in writing of interest in a mortgage or lease? - ANSWER:
Assignment
Items of personal property that can become real property. ie: construction materials.
- ANSWER: Attachment
The remaining balance, at maturity, on a loan that has not been completely repaid
through periodic payments. Once paid, the outstanding balance is zero. Partially
amortized loan. - ANSWER: Balloon Payment
A deed that contains no stated warranties but implies that the grantor has the legal
authority to transfer title - ANSWER: Bargain & Sale Deed
Imaginary line running east and west used by surveyors as a reference in describing
land under the rectangular survey system - ANSWER: Base line
Permanent reference marks or established points used by surveyors in measuring
differences in elevation. Metes & Bound - ANSWER: Benchmarks
What is a broker price opinion, drive by value of real estate. - ANSWER: BPO
Defunct, derelict, or abandoned commercial or industrial sites; many have toxic
wastes. - ANSWER: Brownfields
, A tract of land between two differently zoned areas. For example, a city might
position a park between a commercial and residential district. - ANSWER: Buffer
Zone
A mathematical process for estimating the value of a property using a proper rate of
return on the investment and the annual net operating incomes expected to be
produced by the property. The formula is expressed as: Income ÷ Rate = Value. -
ANSWER: Capitalization
The rate of return a property will produce on the owner's investment. - ANSWER:
Capitalization Rate
Process of laying two to four feet of soil over the top of a landfill site and planting
grass to enhance aesthetic value and to prevent erosion - ANSWER: Capping
The net spendable income from an investment, determined by deducting all
operating and fixed expenses from gross income. - ANSWER: Cash Flow
"Let the buyer beware" (68) - ANSWER: Caveat Emptor
The document generally given to the purchaser at a tax foreclosure sale. A Certificate
of Sale does not convey title; normally it is an instrument certifying that the holder
received title to the property after the redemption period passed and that the holder
paid the property taxes for that interim period. - ANSWER: Certificate of Sale
A statement of opinion on the status of the title to a parcel of real property based on
an examination of specified public records - ANSWER: Certificate of Title
A history of the ownership affecting title to a parcel of land. - ANSWER: Chain of Title
Prohibits racial discrimination in sale and rental of housing. - ANSWER: Civil Rights
Act 1866
Any document, claim, unreleased lien, or encumbrance that may impair the title to
real property or make the title doubtful; usually revealed by a title search and
removed by either a quitclaim deed or suit to quiet title. - ANSWER: Cloud on Title
A document that legally modifies a will without revoking it. - ANSWER: Codicil
A clause that requires the insured to carry insurance equal to at least a specified
percentage of the insured property's value. Usually 80% - ANSWER: Coinsurance
Clause
law from the judgements and decrees of courts opposed to the legislature. -
ANSWER: Common Law
TEST BANK 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |
ALREADY GRADED A+
What is money or property given to make up any difference in value or equity
between two properties in exchange? - ANSWER: BOOT
What is a tax deferred exchange of like kind property, where any additional monies
are taxable to receiver? - ANSWER: 1031 exchange
What is the clause in a mortgage or deed of trust that can be enforced to make the
entire debt due immediately if the the borrower defaults on an installment payment
or other covenant. - ANSWER: ACCELERATION CLAUSE
What is the acquiring of real property as a result of annexation of fixtures or
accretion? - ANSWER: ACCESSION
What is the increase or addition of land by deposit of sand or soil washed up
naturally from river, lake or sea? - ANSWER: ACCRETION
What is the loss in value resulting from property's physical deterioration, external
depreciation and functional obsolescence? - ANSWER: ACCRUED DEPRECIATION
What is done in front of a notary as a formal declaration? - ANSWER:
ACKNOWLEDGEMENT
What is 43,560 square feet? - ANSWER: Acre
What is the legal process that results in tenant being physically removed from leased
premises? - ANSWER: Actual Eviction
When a person expresses information or fact. Thant which is known, direct
knowledge? - ANSWER: Actual Notice
What is the tax levied according to value, generally used to refer to real estate tax,
also called the general tax. - ANSWER: AD Valorem Tax
Adjustable Rate Mortgage - Alternative Mortgage form where the interest rate is tied
to an indexed rate over the life of the loan, allowing interest rate risk to be shared by
borrowers and lenders - ANSWER: ARM
A person takes possession & use of a property belonging to another. Possession
must be open, notorious, hostile & uninterrupted for a certain period of time. -
ANSWER: Adverse Possession
,A written statement, made under oath by a seller or guarantor of real property and
acknowledged by a notary public, in which the grantor 1.) identifies himself and
indicates martial status, 2.) certifies that since the examination of the title no defects
have occurred on the title, and 3.) certifies that he is in possession of the property.
(401) - ANSWER: Affidavit of Title
A relationship in which one party (the principal) authorizes another party (the agent)
to act as the principal's representative in dealing with third parties. - ANSWER:
AGENCY
A person who acts or does business for another. - ANSWER: Agent
What is the act of transferring property to another. May be voluntary (gift or sale) or
involuntary (eminent domain or adverse possession). - ANSWER: Alienation
Also know as "due on sale" clause permits lender to declare balance of loan
immediately due if property is sold; prevents loan assumption without lender
approval - ANSWER: Alienation Clause
A change to the existing content of a contract (words added or deleted). Must be
initialed by all parties. - ANSWER: Amendment
American with Disabilities Act addresses rights of individuals with disabilities in
employment and public accommodations. - ANSWER: ADA
A loan in which the principal as well as the interest is payable in monthly or other
periodic installments over the term of the loan. - ANSWER: Amortized Loan
Change personal property to real property, such as mixing sand, stone and cement,
and making a sidewalk. - ANSWER: Annexation
Appraisal principle that holds that value can increase or decrease based on the
expectation that some future event may or may not occur. - ANSWER: Anticipation
designed to prevent companies from fixing prices, sharing markets, and gaining
unfair monopoly advantages. - ANSWER: Anti Trust Law
An estimate of the quantity, quality, or value of something. The process through
which conclusions of property value are obtained; also refers to the report that sets
forth the process of estimation and conclusion of value. - ANSWER: Appraisal
What is "runs with the land" ? s a right or privilege associated with the property
although not necessarily a part of it. ( ie parking space, easement) irrevocable -
ANSWER: Appurtenance
,Peoples desire for one area over another. location location location. - ANSWER: Area
Preference
Scarcity, Improvements, Permanence, area preference/location. - ANSWER: Four
Economic Characteristics of Real Estate
Immobility, indestructibility, Uniqueness - ANSWER: Three Physical Characteristics of
real Estate
What is PCEED, possession, control, enjoyment, exclusion and disposition. -
ANSWER: Bundle of Rights
once used in insulation and other materials that can cause respiratory diseases. -
ANSWER: Asbestos
The combining of two or more adjoining lots. - ANSWER: assemblage
What is the value set on a property for taxation purposes. - ANSWER: Assessed Value
Tax charge or levy according to established rates. - ANSWER: Assessment
What is the transfer in writing of interest in a mortgage or lease? - ANSWER:
Assignment
Items of personal property that can become real property. ie: construction materials.
- ANSWER: Attachment
The remaining balance, at maturity, on a loan that has not been completely repaid
through periodic payments. Once paid, the outstanding balance is zero. Partially
amortized loan. - ANSWER: Balloon Payment
A deed that contains no stated warranties but implies that the grantor has the legal
authority to transfer title - ANSWER: Bargain & Sale Deed
Imaginary line running east and west used by surveyors as a reference in describing
land under the rectangular survey system - ANSWER: Base line
Permanent reference marks or established points used by surveyors in measuring
differences in elevation. Metes & Bound - ANSWER: Benchmarks
What is a broker price opinion, drive by value of real estate. - ANSWER: BPO
Defunct, derelict, or abandoned commercial or industrial sites; many have toxic
wastes. - ANSWER: Brownfields
, A tract of land between two differently zoned areas. For example, a city might
position a park between a commercial and residential district. - ANSWER: Buffer
Zone
A mathematical process for estimating the value of a property using a proper rate of
return on the investment and the annual net operating incomes expected to be
produced by the property. The formula is expressed as: Income ÷ Rate = Value. -
ANSWER: Capitalization
The rate of return a property will produce on the owner's investment. - ANSWER:
Capitalization Rate
Process of laying two to four feet of soil over the top of a landfill site and planting
grass to enhance aesthetic value and to prevent erosion - ANSWER: Capping
The net spendable income from an investment, determined by deducting all
operating and fixed expenses from gross income. - ANSWER: Cash Flow
"Let the buyer beware" (68) - ANSWER: Caveat Emptor
The document generally given to the purchaser at a tax foreclosure sale. A Certificate
of Sale does not convey title; normally it is an instrument certifying that the holder
received title to the property after the redemption period passed and that the holder
paid the property taxes for that interim period. - ANSWER: Certificate of Sale
A statement of opinion on the status of the title to a parcel of real property based on
an examination of specified public records - ANSWER: Certificate of Title
A history of the ownership affecting title to a parcel of land. - ANSWER: Chain of Title
Prohibits racial discrimination in sale and rental of housing. - ANSWER: Civil Rights
Act 1866
Any document, claim, unreleased lien, or encumbrance that may impair the title to
real property or make the title doubtful; usually revealed by a title search and
removed by either a quitclaim deed or suit to quiet title. - ANSWER: Cloud on Title
A document that legally modifies a will without revoking it. - ANSWER: Codicil
A clause that requires the insured to carry insurance equal to at least a specified
percentage of the insured property's value. Usually 80% - ANSWER: Coinsurance
Clause
law from the judgements and decrees of courts opposed to the legislature. -
ANSWER: Common Law
