PSI Real Estate Test MA Exam
Questions and Answers
A farmer temporarily installs produce coolers in a leased farm stand in order to
prevent spoilage. The coolers would be considered which of the following? -
ANSWER-Trade fixtures that are personal property
Property can be converted from real to personal property and from personal to real
property by means of which processes, respectively? - ANSWER-Severance and
affixing
The highest form of ownership interest one can acquire in real estate is the... -
ANSWER-Absolute fee simple estate
The distinguishing feature of a defeasible fee simple estate is the... - ANSWER-The
estate may revert to a grantor or heirs of the prescribed usage changes
Maria acquires a property from her uncle Alfonso. When Maria dies, the estate will
pass to Alfonsos other niece, Serena. The type of estate that Maria has in the
property is a - ANSWER-Conventional life estate
One difference between a cooperative estate and a condominium estate is that -
ANSWER-A condominium owner owns a unit of air space whereas the coop owner
owns a proprietary lease
Who are the essential parties involved in an estate in trust? - ANSWER-Trustor,
trustee, and beneficiary
A condominium owner enjoys... - ANSWER-Fee simple ownership of the airspace in
a unit and an undivided share of the entire property's common areas
With various types of junior liens, the order of payment priority is generally
established according to - ANSWER-The date of recordation
What is a lien-theory state in contrast to a title-theory state? - ANSWER-A state in
which a mortgager retains title to the property when a mortgage lien is created
A property owner has an easement appurtenant on her property. On day the
property is sold to another party who is opposed to the easement. Following the
closing, this particular form of easement... - ANSWER-Transfers with the property
What fundamental legal purpose is fulfilled by title records? - ANSWER-Giving
constructive notice of ones rights and interests in the property
What is "chain of title?" - ANSWER-A chronology of successive owners of record of
a parcel of real estate
, Which of the following provides the strongest evidence of a marketable title? -
ANSWER-Title insurance
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owners gross income from the property, this kind of
lease is a... - ANSWER-Percentage lease
An owner leases a property to a business in exchange for rent. The tenant is
required to pay all operating expenses as well. This is an example of a... - ANSWER-
Net lease
A lease automatically terminates under which of the following circumstances? -
ANSWER-The tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - ANSWER-The construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - ANSWER-Takes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates
that the forested portion of the property must never be razed for development. Three
months later, Rycole proceeds to harvest the trees and turn the area into an effective
golf course. What recourse, if any, does Emily have under the deed condition? -
ANSWER-She has the right to re-possess the property because the grantee has
violated the condition
What is the essential purpose of legal descriptions of real property? - ANSWER-To
create a consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - ANSWER-They identify an
enclosed area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a
contingency to procure financing. The buyer extends the financing period in the offer
by one week, signs the form, and mails it back to the seller. At this point the sellers
offer... - ANSWER-Is void
Real estate contracts that are not personal service contracts - ANSWER-May be
assigned
Which of the following contracts must be in writing to be enforceable? - ANSWER-A
two-year lease
Agent bib, who works for broker bill, obtains an owner listing to lease a building. Bills
other agent, Sue, locates a tenant for Bob's listing. Broker bill in this instance is a -
ANSWER-Dual agent
Questions and Answers
A farmer temporarily installs produce coolers in a leased farm stand in order to
prevent spoilage. The coolers would be considered which of the following? -
ANSWER-Trade fixtures that are personal property
Property can be converted from real to personal property and from personal to real
property by means of which processes, respectively? - ANSWER-Severance and
affixing
The highest form of ownership interest one can acquire in real estate is the... -
ANSWER-Absolute fee simple estate
The distinguishing feature of a defeasible fee simple estate is the... - ANSWER-The
estate may revert to a grantor or heirs of the prescribed usage changes
Maria acquires a property from her uncle Alfonso. When Maria dies, the estate will
pass to Alfonsos other niece, Serena. The type of estate that Maria has in the
property is a - ANSWER-Conventional life estate
One difference between a cooperative estate and a condominium estate is that -
ANSWER-A condominium owner owns a unit of air space whereas the coop owner
owns a proprietary lease
Who are the essential parties involved in an estate in trust? - ANSWER-Trustor,
trustee, and beneficiary
A condominium owner enjoys... - ANSWER-Fee simple ownership of the airspace in
a unit and an undivided share of the entire property's common areas
With various types of junior liens, the order of payment priority is generally
established according to - ANSWER-The date of recordation
What is a lien-theory state in contrast to a title-theory state? - ANSWER-A state in
which a mortgager retains title to the property when a mortgage lien is created
A property owner has an easement appurtenant on her property. On day the
property is sold to another party who is opposed to the easement. Following the
closing, this particular form of easement... - ANSWER-Transfers with the property
What fundamental legal purpose is fulfilled by title records? - ANSWER-Giving
constructive notice of ones rights and interests in the property
What is "chain of title?" - ANSWER-A chronology of successive owners of record of
a parcel of real estate
, Which of the following provides the strongest evidence of a marketable title? -
ANSWER-Title insurance
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owners gross income from the property, this kind of
lease is a... - ANSWER-Percentage lease
An owner leases a property to a business in exchange for rent. The tenant is
required to pay all operating expenses as well. This is an example of a... - ANSWER-
Net lease
A lease automatically terminates under which of the following circumstances? -
ANSWER-The tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - ANSWER-The construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - ANSWER-Takes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates
that the forested portion of the property must never be razed for development. Three
months later, Rycole proceeds to harvest the trees and turn the area into an effective
golf course. What recourse, if any, does Emily have under the deed condition? -
ANSWER-She has the right to re-possess the property because the grantee has
violated the condition
What is the essential purpose of legal descriptions of real property? - ANSWER-To
create a consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - ANSWER-They identify an
enclosed area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a
contingency to procure financing. The buyer extends the financing period in the offer
by one week, signs the form, and mails it back to the seller. At this point the sellers
offer... - ANSWER-Is void
Real estate contracts that are not personal service contracts - ANSWER-May be
assigned
Which of the following contracts must be in writing to be enforceable? - ANSWER-A
two-year lease
Agent bib, who works for broker bill, obtains an owner listing to lease a building. Bills
other agent, Sue, locates a tenant for Bob's listing. Broker bill in this instance is a -
ANSWER-Dual agent
