PSI Real Estate Salesperson Exam
Questions with correct Answers
Eminent Domain - Answer- The ability of the government to acquire real property
against the owner for the benefit of the public.
Fee Simple - Answer- What is the most complete estate in real property?
Puffing - Answer- What is an exaggerated statement.
Reconciliation - Answer- What is the process of arriving at a final market value
conclusion from the estimates of three appraisal approaches to value?
Adverse Possession - Answer- The actual, visible, hostile, notorious, taking of another's
land under a claim of title for a statutory period of time.
Time is of the essence - Answer- A phrase in a contract that requires the performance
of a certain act within a stated period of time.
Leverage - Answer- The use of borrowed money to finance the bulk of an investment
that one could not have afforded otherwise.
Truth in Lending Act - Answer- What is another name for Regulation Z?
Holdover Tenant - Answer- What is the official name of a tenant who remains in a
leased property after the lease expires.
Syndicate - Answer- A typical business arrangement that is created when individual
persons invest money for real estate investments.
Capital Gain - Answer- What is the profit from the sale of real estate called according to
the IRS.
Deficiency Judgement - Answer- What legal action can be sought in court by a
mortgagee to recover lost money when the public sale of a forced foreclosed property
does not pay off the entire mortgage debt?
Ingress & Engress - Answer- Rights to enter and exit land?
Foreclosure - Answer- What is it called when a lender initiates a court process that will
result in the public sale of real property.
, Principal or Client - Answer- What is the name of the party being represented in an
agency relationship?
Wraparound Mortgage - Answer- What the type of mortgage represents a junior lien in
which the second lender is used to payoff the first lender?
Subordination Agreement - Answer- What is the contract that allows a junior lien to take
priority over the first mortgage?
Severalty - Answer- When title to real property is held by a single person, it is referred to
as what form of ownership?
A Setback - Answer- The difference in the boundary of real property and the location
where a home or improvements can be built.
Net Lease - Answer- What type of lease requires the lessee to pay the rent as well as
the other cost in maintaining a rented property, i.e. taxes, insurance, utilities, repairs,
etc.?
Cost Approach - Answer- What approach to value is used when an appraiser
determines the replacement amount of a building, minus depreciation, plus the
estimated land amount.
Equitable Title - Answer- After a buyer's offer to purchase is accepted but before the
buyer acquires legal title, what type of interest is held by the buyer?
Equity - Answer- The difference between the market value of real property and the
mortgage debt. It represents the value to the owner?
Package Mortgage - Answer- What kind of mortgage is secured by real property as well
as (personal property) appliances?
Open Listing - Answer- What is the type of listing in which a seller can employ 16 real
estate offices simultaneously? The office that procures the buyer is the only office that
gets paid.
Deed Restrictions - Answer- Clauses in a deed limiting the futures uses of the real
property?
Servient Easment - Answer- What is a particular parcel of land called over which an
easement runs that benefits an adjacent property?
Steering - Answer- What is the act of directing prospective buyers toward particular
areas of a community without regard to financial qualification?
Questions with correct Answers
Eminent Domain - Answer- The ability of the government to acquire real property
against the owner for the benefit of the public.
Fee Simple - Answer- What is the most complete estate in real property?
Puffing - Answer- What is an exaggerated statement.
Reconciliation - Answer- What is the process of arriving at a final market value
conclusion from the estimates of three appraisal approaches to value?
Adverse Possession - Answer- The actual, visible, hostile, notorious, taking of another's
land under a claim of title for a statutory period of time.
Time is of the essence - Answer- A phrase in a contract that requires the performance
of a certain act within a stated period of time.
Leverage - Answer- The use of borrowed money to finance the bulk of an investment
that one could not have afforded otherwise.
Truth in Lending Act - Answer- What is another name for Regulation Z?
Holdover Tenant - Answer- What is the official name of a tenant who remains in a
leased property after the lease expires.
Syndicate - Answer- A typical business arrangement that is created when individual
persons invest money for real estate investments.
Capital Gain - Answer- What is the profit from the sale of real estate called according to
the IRS.
Deficiency Judgement - Answer- What legal action can be sought in court by a
mortgagee to recover lost money when the public sale of a forced foreclosed property
does not pay off the entire mortgage debt?
Ingress & Engress - Answer- Rights to enter and exit land?
Foreclosure - Answer- What is it called when a lender initiates a court process that will
result in the public sale of real property.
, Principal or Client - Answer- What is the name of the party being represented in an
agency relationship?
Wraparound Mortgage - Answer- What the type of mortgage represents a junior lien in
which the second lender is used to payoff the first lender?
Subordination Agreement - Answer- What is the contract that allows a junior lien to take
priority over the first mortgage?
Severalty - Answer- When title to real property is held by a single person, it is referred to
as what form of ownership?
A Setback - Answer- The difference in the boundary of real property and the location
where a home or improvements can be built.
Net Lease - Answer- What type of lease requires the lessee to pay the rent as well as
the other cost in maintaining a rented property, i.e. taxes, insurance, utilities, repairs,
etc.?
Cost Approach - Answer- What approach to value is used when an appraiser
determines the replacement amount of a building, minus depreciation, plus the
estimated land amount.
Equitable Title - Answer- After a buyer's offer to purchase is accepted but before the
buyer acquires legal title, what type of interest is held by the buyer?
Equity - Answer- The difference between the market value of real property and the
mortgage debt. It represents the value to the owner?
Package Mortgage - Answer- What kind of mortgage is secured by real property as well
as (personal property) appliances?
Open Listing - Answer- What is the type of listing in which a seller can employ 16 real
estate offices simultaneously? The office that procures the buyer is the only office that
gets paid.
Deed Restrictions - Answer- Clauses in a deed limiting the futures uses of the real
property?
Servient Easment - Answer- What is a particular parcel of land called over which an
easement runs that benefits an adjacent property?
Steering - Answer- What is the act of directing prospective buyers toward particular
areas of a community without regard to financial qualification?
