PSI Real Estate Exam
Chain of Title - ANS- The historical records of all owners and encumbrances of a specific
parcel of real estate is known as
Property Disclosure Force - ANS- Before making an offer on a property, the buyer should
have received and read
Usury Laws - ANS- Laws that determine the maximum interest rate a lender can charge
are known as
Option Contract - ANS- A contract in which one party purchases the right to buy at a
fixed price within a specified period is
The leases will be unaffected - ANS- A buyer offered to purchase an occupied fourplex.
Should her offer be accepted, which of these is TRUE regarding the current leases?
Specifically stated by a deed - ANS- A joint tenancy with right of survivorship is created
Certificate of Reasonable Value (CRV) - ANS- When an eligible veteran is negotiating to
purchase a home with a U.S. Department of Veterans Affairs (VA)-guaranteed loan, as
part of the loan process, the VA will issue
to execute and deliver a deed to the sister - ANS- A property owner wants to give his
property to his sister. The BEST way to transfer title to her would be
an option contract - ANS- A buyer agrees to buy a property, and then changes his mind.
The seller in this agreement has no recourse against the buyer. The contract was
verify that the deed was signed without duress - ANS- While notarizing is NOT required
to create a valid deed, the primary purpose of acknowledgment in this use is to
Economic Base - ANS- The ability of a community to attract income and business is
known as the community's
The transaction is closed - ANS- Unless some other written agreement has been made,
the brokerage will usually receive the brokerage commission when
fully amortized budget loan - ANS- A buyer wants a loan that has no adjustments or
balloons and that will pay all the monthly taxes and insurance, along with principal and
, interest. The buyer also wants to have the loan fully paid off when the last payment is
made. The lender will MOST likely recommend which loan?
that reasonable accommodations be provided for people with disabilities. - ANS- The
Americans with Disabilities Act (ADA) requires
the true cost of credit or annual percentage rate (APR). - ANS- The Truth in Lending Act
requires that lenders supply borrowers with information applying to
the disabled tenant will be required to pay a larger security deposit to cover the costs of
returning the unit to its original condition. - ANS- A person with a physical disability has
found an apartment that must be remodeled to accommodate her needs. All of these are
allowed by the landlord in this case EXCEPT
the tenancy interest will pass to the surviving tenants upon the death of a co-tenant. -
ANS- Tenancy with survivorship means
ownership versus possession. - ANS- The difference between a freehold and a leasehold
estate is
divide the after-tax cash flow by the equity and multiply by 100%. - ANS- To compute the
return on investment (ROI), a property manager must
Material Fact - ANS- Information that is important to buyers that could change their
decision to purchase a property is known as
Progression - ANS- The owners of the smaller model of houses in the neighborhood may
find that the values of their homes are affected by what principle?
closets - ANS- Which external area can be included in the calculation of the gross living
area (GLA) of a property?
Obtains the legal title at closing - ANS- In a land contract, the buyer
Open listing and exclusive agency listing - ANS- Under which of these listing
agreements can owners of listed property sell the property on their own without having
to pay the listing broker a commission?
A property tax lien for the current year - ANS- A title search for a property under contract
has revealed several outstanding liens against the property. Which of these liens has
highest priority?
640 acres per section. - ANS- A section in the rectangular survey system contains
Chain of Title - ANS- The historical records of all owners and encumbrances of a specific
parcel of real estate is known as
Property Disclosure Force - ANS- Before making an offer on a property, the buyer should
have received and read
Usury Laws - ANS- Laws that determine the maximum interest rate a lender can charge
are known as
Option Contract - ANS- A contract in which one party purchases the right to buy at a
fixed price within a specified period is
The leases will be unaffected - ANS- A buyer offered to purchase an occupied fourplex.
Should her offer be accepted, which of these is TRUE regarding the current leases?
Specifically stated by a deed - ANS- A joint tenancy with right of survivorship is created
Certificate of Reasonable Value (CRV) - ANS- When an eligible veteran is negotiating to
purchase a home with a U.S. Department of Veterans Affairs (VA)-guaranteed loan, as
part of the loan process, the VA will issue
to execute and deliver a deed to the sister - ANS- A property owner wants to give his
property to his sister. The BEST way to transfer title to her would be
an option contract - ANS- A buyer agrees to buy a property, and then changes his mind.
The seller in this agreement has no recourse against the buyer. The contract was
verify that the deed was signed without duress - ANS- While notarizing is NOT required
to create a valid deed, the primary purpose of acknowledgment in this use is to
Economic Base - ANS- The ability of a community to attract income and business is
known as the community's
The transaction is closed - ANS- Unless some other written agreement has been made,
the brokerage will usually receive the brokerage commission when
fully amortized budget loan - ANS- A buyer wants a loan that has no adjustments or
balloons and that will pay all the monthly taxes and insurance, along with principal and
, interest. The buyer also wants to have the loan fully paid off when the last payment is
made. The lender will MOST likely recommend which loan?
that reasonable accommodations be provided for people with disabilities. - ANS- The
Americans with Disabilities Act (ADA) requires
the true cost of credit or annual percentage rate (APR). - ANS- The Truth in Lending Act
requires that lenders supply borrowers with information applying to
the disabled tenant will be required to pay a larger security deposit to cover the costs of
returning the unit to its original condition. - ANS- A person with a physical disability has
found an apartment that must be remodeled to accommodate her needs. All of these are
allowed by the landlord in this case EXCEPT
the tenancy interest will pass to the surviving tenants upon the death of a co-tenant. -
ANS- Tenancy with survivorship means
ownership versus possession. - ANS- The difference between a freehold and a leasehold
estate is
divide the after-tax cash flow by the equity and multiply by 100%. - ANS- To compute the
return on investment (ROI), a property manager must
Material Fact - ANS- Information that is important to buyers that could change their
decision to purchase a property is known as
Progression - ANS- The owners of the smaller model of houses in the neighborhood may
find that the values of their homes are affected by what principle?
closets - ANS- Which external area can be included in the calculation of the gross living
area (GLA) of a property?
Obtains the legal title at closing - ANS- In a land contract, the buyer
Open listing and exclusive agency listing - ANS- Under which of these listing
agreements can owners of listed property sell the property on their own without having
to pay the listing broker a commission?
A property tax lien for the current year - ANS- A title search for a property under contract
has revealed several outstanding liens against the property. Which of these liens has
highest priority?
640 acres per section. - ANS- A section in the rectangular survey system contains
