©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:46 AM A+
SC PSI Real Estate Exam Prep Questions
And Answers |Latest 2025 | Guaranteed Pass
Which of the following describes the term appreciation? - Answer✔An increase in the value of
property
When ownership of a mortgage is transferred from one company or individual to another, it is
called: - Answer✔An assignment
A mortgage loan which requires the remaining balance be paid at a specific point in time is
called a: - Answer✔Balloon mortgage
The following reason accounts for why bridge loans are not used much anymore: -
Answer✔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. - Answer✔Clear title
What is the collateral in a home loan? - Answer✔The property itself
The adjustment date on adjustable rate mortgage is: - Answer✔The date the interest rate
changes
1|Page
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:46 AM A+
What is the deposit made by potential buyer to show he is serious about buying a house called?
- Answer✔Earnest money deposit
A right-of-way which gives persons other than the owner access to our over a property is
known as an: - Answer✔Easement
Which best describes a subdivision? - Answer✔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: - Answer✔Sweat equity
A two-step mortgage is defined as: - Answer✔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: -
Answer✔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: - Answer✔Bill of sale
An oral or written agreement that is binding in a court of law is called a: - Answer✔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: - Answer✔Down payment
A female named in a will to administer an estate is called an: - Answer✔Executrix
The greatest possible interest a person can have in real estate is called: - Answer✔Fee simple
2|Page
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:46 AM A+
Required for properties located in federally designated flood areas, this type of insurance
compensates for physical property damage resulting from flooding. It is called - Answer✔Flood
insurance
The following is true of a government loan: - Answer✔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: - Answer✔The grantor
Insurance that covers in the event of physical damage to property from fire, wind, vandalism, or
other hazards is called: - Answer✔Hazard insurance
A liquid asset is: - Answer✔A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is the: - Answer✔Mortgagee
If you are buying a house and asking the seller to provide all or part of the financing, you're
asking for_____________ financing. - Answer✔Owner
A point is: - Answer✔1% of the amount of the mortgage
What does a power of attorney grant someone? - Answer✔Complete or limited authority on
behalf of someone else
The principal is: - Answer✔The amount borrowed or remaining unpaid.
3|Page
SC PSI Real Estate Exam Prep Questions
And Answers |Latest 2025 | Guaranteed Pass
Which of the following describes the term appreciation? - Answer✔An increase in the value of
property
When ownership of a mortgage is transferred from one company or individual to another, it is
called: - Answer✔An assignment
A mortgage loan which requires the remaining balance be paid at a specific point in time is
called a: - Answer✔Balloon mortgage
The following reason accounts for why bridge loans are not used much anymore: -
Answer✔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. - Answer✔Clear title
What is the collateral in a home loan? - Answer✔The property itself
The adjustment date on adjustable rate mortgage is: - Answer✔The date the interest rate
changes
1|Page
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:46 AM A+
What is the deposit made by potential buyer to show he is serious about buying a house called?
- Answer✔Earnest money deposit
A right-of-way which gives persons other than the owner access to our over a property is
known as an: - Answer✔Easement
Which best describes a subdivision? - Answer✔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: - Answer✔Sweat equity
A two-step mortgage is defined as: - Answer✔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: -
Answer✔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: - Answer✔Bill of sale
An oral or written agreement that is binding in a court of law is called a: - Answer✔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: - Answer✔Down payment
A female named in a will to administer an estate is called an: - Answer✔Executrix
The greatest possible interest a person can have in real estate is called: - Answer✔Fee simple
2|Page
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:46 AM A+
Required for properties located in federally designated flood areas, this type of insurance
compensates for physical property damage resulting from flooding. It is called - Answer✔Flood
insurance
The following is true of a government loan: - Answer✔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: - Answer✔The grantor
Insurance that covers in the event of physical damage to property from fire, wind, vandalism, or
other hazards is called: - Answer✔Hazard insurance
A liquid asset is: - Answer✔A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is the: - Answer✔Mortgagee
If you are buying a house and asking the seller to provide all or part of the financing, you're
asking for_____________ financing. - Answer✔Owner
A point is: - Answer✔1% of the amount of the mortgage
What does a power of attorney grant someone? - Answer✔Complete or limited authority on
behalf of someone else
The principal is: - Answer✔The amount borrowed or remaining unpaid.
3|Page
