PSI Real Estate Exam Prep 2025-2026
What is it called when a borrower attempts to sell a property without paying off the loan?
- ANS- Alienation
Vincent and Wendy are married and are buying a property. Their combined annual
income is $60,000. Subsequently, a lender determines that Vincent and Wendy qualify for
payments that constitute 23% of their income. What is the value of the monthly
payments? - ANS- $1,150.00
Global Company X wants to purchase several large tracts of adjacent properties but does
not want to reveal interest in the land until the deals are done. Global Company X
contracts with an agent, Alice, to act the principal in the transactions. In this scenario,
which term best describes Alice's role? - ANS- Undisclosed principal
Which of the following is not personal property? - ANS- Fixture
Russell owns land right next to a stream of water that passes across Russell's vast land.
However, Russell does not use the water and just lets the water flow its natural course.
Summer is a cattle farmer that lives five miles away down-stream and travels to the
stream to collect water so that summer may water her cattle. One day, Russell decides
that he's going to divert the stream so that he may grow a garden. Under a riparian
jurisdiction, may Russell do this? - ANS- No
A building that is valued at $120,000 is being depreciated over 27.5 years. After 17 years,
how much will the building have depreciated? - ANS- $74,181.88
Wendy lives in a constructed home that was built ten years ago and was purchased from
a builder. The written sales contract did not state any additional warranties regarding the
property. Does the home have a warranty of fitness? - ANS- No, because the home was
built ten years ago.
Betsy is selling their grandmother's house to Christopher because Betsy's grandmother
has since moved to Bota Raton. The house was built in 1963, but Betsy's grandmother
did not own the property until 1982, after Betsy's grandfather was deceased. What must
be given to Christopher during the escrow phase? - ANS- EPA lead-based paint
pamphlet
What is the one major difference between lien theory states? - ANS- The deed does not
remain with the buyer in title theory states.
Which document shows the chain of title of a property? - ANS- Abstract
, Dillion, a non-licensed professional, discovers an open source of asbestos in their
commercial property. Which of the following actions should Dillion immediately take? -
ANS- Encapsulation
Which type of loan requires PMI until the borrower has 20% equity in the property? -
ANS- Insured conventional loan
Recently a homeowner's house suffered damage in a grease fire. What offers coverage
for this type of property damage? - ANS- Home insurance
A developer recently developed land and homes to be sold on the market. In the
covenants they recorded into record, they stated that the homes may be used only as
single-family homes. Is this a lawful exercise of private regulation on land? - ANS- Yes
What is the term for the money that was lent to a borrower in exchange for the promise of
future repayment? - ANS- Loan
Javier and Karina own property and have the right of survivorship. What type of
ownership to Javier and Karina share? - ANS- Joint Tenancy
What obligation is discharged when an eviction has occurred? - ANS- Obligation to pay
Briana and Caden are in a dispute on who owns a certain property. What type of lawsuit
should be filed? - ANS- Quiet title action
In which approach is the value of the land calculated independently of the structure? -
ANS- Cost approach
Giselle holds a lease from January 13, 2002 to December 15, 2002. On September 12
2002, what type of lease tenancy does Gisselle have? - ANS- Tenancy for years
A seller has prepaid landscaper service fees for a 3-month duration. The prepayment
amount was $900. At the end of the 1st month, the property was sold to a buyer. What is
the prorated amount that will be debited to the buyer? - ANS- $600
When is there a seller's market? - ANS- Fewer houses are for sale than there are buyers
to buy them
If the GRM of a property is 110 and the monthly potential gross income for that property
is $1,400, what is the estimated value of that property? - ANS- $154,000
Which of the following is a valid lease? - ANS- -Written
-Unwritten lease
What is it called when a borrower attempts to sell a property without paying off the loan?
- ANS- Alienation
Vincent and Wendy are married and are buying a property. Their combined annual
income is $60,000. Subsequently, a lender determines that Vincent and Wendy qualify for
payments that constitute 23% of their income. What is the value of the monthly
payments? - ANS- $1,150.00
Global Company X wants to purchase several large tracts of adjacent properties but does
not want to reveal interest in the land until the deals are done. Global Company X
contracts with an agent, Alice, to act the principal in the transactions. In this scenario,
which term best describes Alice's role? - ANS- Undisclosed principal
Which of the following is not personal property? - ANS- Fixture
Russell owns land right next to a stream of water that passes across Russell's vast land.
However, Russell does not use the water and just lets the water flow its natural course.
Summer is a cattle farmer that lives five miles away down-stream and travels to the
stream to collect water so that summer may water her cattle. One day, Russell decides
that he's going to divert the stream so that he may grow a garden. Under a riparian
jurisdiction, may Russell do this? - ANS- No
A building that is valued at $120,000 is being depreciated over 27.5 years. After 17 years,
how much will the building have depreciated? - ANS- $74,181.88
Wendy lives in a constructed home that was built ten years ago and was purchased from
a builder. The written sales contract did not state any additional warranties regarding the
property. Does the home have a warranty of fitness? - ANS- No, because the home was
built ten years ago.
Betsy is selling their grandmother's house to Christopher because Betsy's grandmother
has since moved to Bota Raton. The house was built in 1963, but Betsy's grandmother
did not own the property until 1982, after Betsy's grandfather was deceased. What must
be given to Christopher during the escrow phase? - ANS- EPA lead-based paint
pamphlet
What is the one major difference between lien theory states? - ANS- The deed does not
remain with the buyer in title theory states.
Which document shows the chain of title of a property? - ANS- Abstract
, Dillion, a non-licensed professional, discovers an open source of asbestos in their
commercial property. Which of the following actions should Dillion immediately take? -
ANS- Encapsulation
Which type of loan requires PMI until the borrower has 20% equity in the property? -
ANS- Insured conventional loan
Recently a homeowner's house suffered damage in a grease fire. What offers coverage
for this type of property damage? - ANS- Home insurance
A developer recently developed land and homes to be sold on the market. In the
covenants they recorded into record, they stated that the homes may be used only as
single-family homes. Is this a lawful exercise of private regulation on land? - ANS- Yes
What is the term for the money that was lent to a borrower in exchange for the promise of
future repayment? - ANS- Loan
Javier and Karina own property and have the right of survivorship. What type of
ownership to Javier and Karina share? - ANS- Joint Tenancy
What obligation is discharged when an eviction has occurred? - ANS- Obligation to pay
Briana and Caden are in a dispute on who owns a certain property. What type of lawsuit
should be filed? - ANS- Quiet title action
In which approach is the value of the land calculated independently of the structure? -
ANS- Cost approach
Giselle holds a lease from January 13, 2002 to December 15, 2002. On September 12
2002, what type of lease tenancy does Gisselle have? - ANS- Tenancy for years
A seller has prepaid landscaper service fees for a 3-month duration. The prepayment
amount was $900. At the end of the 1st month, the property was sold to a buyer. What is
the prorated amount that will be debited to the buyer? - ANS- $600
When is there a seller's market? - ANS- Fewer houses are for sale than there are buyers
to buy them
If the GRM of a property is 110 and the monthly potential gross income for that property
is $1,400, what is the estimated value of that property? - ANS- $154,000
Which of the following is a valid lease? - ANS- -Written
-Unwritten lease
