1
SC PSI Real Estate Exam Prep. QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Which of the following describes the term appreciation? - (answers)An increase in
the value of property
When ownership of a mortgage is transferred from one company or individual to
another, it is called: - (answers)An assignment
A mortgage loan which requires the remaining balance be paid at a specific point
in time is called a: - (answers)Balloon mortgage
The following reason accounts for why bridge loans are not used much anymore: -
(answers)More second mortgage lenders now will lend at a high to loan value.
Sellers would rather accept offers from buyers who have already sold their
property.
A title which is free of liens or legal questions as to ownership of the property is
called a_______________title. - (answers)Clear title
What is the collateral in a home loan? - (answers)The property itself
The adjustment date on adjustable rate mortgage is: - (answers)The date the
interest rate changes
,2
What is the deposit made by potential buyer to show he is serious about buying a
house called? - (answers)Earnest money deposit
A right-of-way which gives persons other than the owner access to our over a
property is known as an: - (answers)Easement
Which best describes a subdivision? - (answers)A housing development created
by dividing a tract of land into individual lots
When someone contributes to the construction or rehabilitation of a property
with labor or services rather than cash, that contribution is called: -
(answers)Sweat equity
A two-step mortgage is defined as: - (answers)An adjustable rate mortgage with
one interest rate for the first five or seven years and a different rate for the
remainder of the term
A legal document evidencing a person's right to or ownership of a property is
called a: - (answers)Title
If you were buying a house that include furnishing, you would receive a written
document transferring title to the personal property. This document is called a: -
(answers)Bill of sale
,3
An oral or written agreement that is binding in a court of law is called a: -
(answers)Contract
The part of the purchase price of a property that the buyer pays in cash and does
not finance with the mortgage is called the: - (answers)Down payment
A female named in a will to administer an estate is called an: - (answers)Executrix
The greatest possible interest a person can have in real estate is called: -
(answers)Fee simple
Required for properties located in federally designated flood areas, this type of
insurance compensates for physical property damage resulting from flooding. It is
called - (answers)Flood insurance
The following is true of a government loan: - (answers)Guaranteed by the
Department of veteran affairs. (VA)
Guaranteed by the rural housing service. (RHS)
It is insured by the Federal housing administration. (FHA)
The person conveying an interest in real property is called: - (answers)The grantor
Insurance that covers in the event of physical damage to property from fire, wind,
vandalism, or other hazards is called: - (answers)Hazard insurance
, 4
A liquid asset is: - (answers)A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is the: -
(answers)Mortgagee
If you are buying a house and asking the seller to provide all or part of the
financing, you're asking for_____________ financing. - (answers)Owner
A point is: - (answers)1% of the amount of the mortgage
What does a power of attorney grant someone? - (answers)Complete or limited
authority on behalf of someone else
The principal is: - (answers)The amount borrowed or remaining unpaid.
Part of monthly payment that reduces the remaining balance of a mortgage.
A promissory note is: - (answers)A written promise to repay a specified amount
over specified period of time
Which of the following best describes a real estate agent? - (answers)A licensed
person who negotiates and transact the sale of real estate
SC PSI Real Estate Exam Prep. QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Which of the following describes the term appreciation? - (answers)An increase in
the value of property
When ownership of a mortgage is transferred from one company or individual to
another, it is called: - (answers)An assignment
A mortgage loan which requires the remaining balance be paid at a specific point
in time is called a: - (answers)Balloon mortgage
The following reason accounts for why bridge loans are not used much anymore: -
(answers)More second mortgage lenders now will lend at a high to loan value.
Sellers would rather accept offers from buyers who have already sold their
property.
A title which is free of liens or legal questions as to ownership of the property is
called a_______________title. - (answers)Clear title
What is the collateral in a home loan? - (answers)The property itself
The adjustment date on adjustable rate mortgage is: - (answers)The date the
interest rate changes
,2
What is the deposit made by potential buyer to show he is serious about buying a
house called? - (answers)Earnest money deposit
A right-of-way which gives persons other than the owner access to our over a
property is known as an: - (answers)Easement
Which best describes a subdivision? - (answers)A housing development created
by dividing a tract of land into individual lots
When someone contributes to the construction or rehabilitation of a property
with labor or services rather than cash, that contribution is called: -
(answers)Sweat equity
A two-step mortgage is defined as: - (answers)An adjustable rate mortgage with
one interest rate for the first five or seven years and a different rate for the
remainder of the term
A legal document evidencing a person's right to or ownership of a property is
called a: - (answers)Title
If you were buying a house that include furnishing, you would receive a written
document transferring title to the personal property. This document is called a: -
(answers)Bill of sale
,3
An oral or written agreement that is binding in a court of law is called a: -
(answers)Contract
The part of the purchase price of a property that the buyer pays in cash and does
not finance with the mortgage is called the: - (answers)Down payment
A female named in a will to administer an estate is called an: - (answers)Executrix
The greatest possible interest a person can have in real estate is called: -
(answers)Fee simple
Required for properties located in federally designated flood areas, this type of
insurance compensates for physical property damage resulting from flooding. It is
called - (answers)Flood insurance
The following is true of a government loan: - (answers)Guaranteed by the
Department of veteran affairs. (VA)
Guaranteed by the rural housing service. (RHS)
It is insured by the Federal housing administration. (FHA)
The person conveying an interest in real property is called: - (answers)The grantor
Insurance that covers in the event of physical damage to property from fire, wind,
vandalism, or other hazards is called: - (answers)Hazard insurance
, 4
A liquid asset is: - (answers)A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is the: -
(answers)Mortgagee
If you are buying a house and asking the seller to provide all or part of the
financing, you're asking for_____________ financing. - (answers)Owner
A point is: - (answers)1% of the amount of the mortgage
What does a power of attorney grant someone? - (answers)Complete or limited
authority on behalf of someone else
The principal is: - (answers)The amount borrowed or remaining unpaid.
Part of monthly payment that reduces the remaining balance of a mortgage.
A promissory note is: - (answers)A written promise to repay a specified amount
over specified period of time
Which of the following best describes a real estate agent? - (answers)A licensed
person who negotiates and transact the sale of real estate
