PSI Practice Test Answers
Real property can be converted to personal property by - ANS- severance
A legal easement can be created by any of the following EXCEPT - ANS- merger of titles
Although states make specific laws governing water rights and the rights in land that
borders water, most states generally follow one of two basic doctrines regarding water
rights. Either riparian and littoral rights are automatically conveyed with property, or all
water rights are controlled by the state under the doctrine of prior appropriation. The
doctrine of prior appropriation is MOST likely to be followed in states where - ANS- Prior
appropriation
A tenant rented an apartment, signing a 15 - month lease. After the lease expired, the
tenant paid 1 months rent and got a receipt. What kind of leasehold does the tenant
have? - ANS- Tenancy at will
legal descriptions using the government survey system are NOT generally used in -
ANS- The original 13 states
A judgement has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been - ANS- Constructive Notice
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - ANS- his individual interest passes to his heirs
A deed restriction is applicable to the activities of - ANS- all owners, present and future
An Environmental Impact Statement (EIS) - ANS- projects the impact on the environment
of a proposed project.
Ordinances that specify construction standards when repairing or erecting buildings are
known as: - ANS- building codes
An escheat occurs when - ANS- a property owner dies without heirs or a valid will
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would be most likely be used to obtain
permission for this store? - ANS- Conditional use permit or zoning variance
, A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest - ANS- a competitive market analysis to determine the
property's value.
When preparing a market data estimate of value, which of the following categories of
adjustment is NOT essential - ANS- The original cost of the building.
If an older building cannot be air-conditioned, it is an example of - ANS- functional
obsolescence.
Which rule-of-thumb formula for estimating property value is being offered to an investor
who is told that a house renting for $900 a month should sell for about $90,000? - ANS-
GRM
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of - ANS-
Anticipation
According to the principle of progression, a three bedroom, one story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - ANS- most
homes are larger that the sale home.
A formal appraisal will ALWAYS be REQUIRED when the - ANS- lender wants to sell the
mortgage to the secondary market.
A competitive market analysis is MOST often used for - ANS- setting a listing price
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANS- prepayment penalties
and rebates
The FHA functions MOST like - ANS- an insurance company
Federal Truth-in-Lending laws are also known as - ANS- Regulation Z
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documented as a salary and by tax returns, the licensee might recommend a
mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT -
ANS- more variety of loan programs available
which of the following consumers would be able to derive the most benefit from a
reverse mortgage - ANS- A couple in their late 60's who need to tap their home equity to
help cover their expenses but do not want to sell their house.
Real property can be converted to personal property by - ANS- severance
A legal easement can be created by any of the following EXCEPT - ANS- merger of titles
Although states make specific laws governing water rights and the rights in land that
borders water, most states generally follow one of two basic doctrines regarding water
rights. Either riparian and littoral rights are automatically conveyed with property, or all
water rights are controlled by the state under the doctrine of prior appropriation. The
doctrine of prior appropriation is MOST likely to be followed in states where - ANS- Prior
appropriation
A tenant rented an apartment, signing a 15 - month lease. After the lease expired, the
tenant paid 1 months rent and got a receipt. What kind of leasehold does the tenant
have? - ANS- Tenancy at will
legal descriptions using the government survey system are NOT generally used in -
ANS- The original 13 states
A judgement has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been - ANS- Constructive Notice
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - ANS- his individual interest passes to his heirs
A deed restriction is applicable to the activities of - ANS- all owners, present and future
An Environmental Impact Statement (EIS) - ANS- projects the impact on the environment
of a proposed project.
Ordinances that specify construction standards when repairing or erecting buildings are
known as: - ANS- building codes
An escheat occurs when - ANS- a property owner dies without heirs or a valid will
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would be most likely be used to obtain
permission for this store? - ANS- Conditional use permit or zoning variance
, A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest - ANS- a competitive market analysis to determine the
property's value.
When preparing a market data estimate of value, which of the following categories of
adjustment is NOT essential - ANS- The original cost of the building.
If an older building cannot be air-conditioned, it is an example of - ANS- functional
obsolescence.
Which rule-of-thumb formula for estimating property value is being offered to an investor
who is told that a house renting for $900 a month should sell for about $90,000? - ANS-
GRM
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of - ANS-
Anticipation
According to the principle of progression, a three bedroom, one story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - ANS- most
homes are larger that the sale home.
A formal appraisal will ALWAYS be REQUIRED when the - ANS- lender wants to sell the
mortgage to the secondary market.
A competitive market analysis is MOST often used for - ANS- setting a listing price
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANS- prepayment penalties
and rebates
The FHA functions MOST like - ANS- an insurance company
Federal Truth-in-Lending laws are also known as - ANS- Regulation Z
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documented as a salary and by tax returns, the licensee might recommend a
mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT -
ANS- more variety of loan programs available
which of the following consumers would be able to derive the most benefit from a
reverse mortgage - ANS- A couple in their late 60's who need to tap their home equity to
help cover their expenses but do not want to sell their house.
