PSI NATIONAL EXAM FOR REAL
ESTATE QUESTIONS WITH
COMPLETE SOLUTIONS
A type of freehold estate which exists until the death of a certain specified person is -
Answer-life estate
A clause in a deed that provides for the property to revert to the original owner if
conditions of
ownership are not met is called a: - Answer-reverter clause
True or False
Because of the right of survivor-ship, joint tenancy is sometimes called "a poor man's
will". - Answer-True
Tenancy by the entirety is ownership by - Answer-a husband and wife
A stockholder's use of a unit in a co-operative is secured by: - Answer-a proprietary
lease
Highrise developments which combine offices, stores, theaters, and apartments, and
other facilities in a single building are called - Answer-Mixed Unit Developments
(MUD's)
A form of ownership involving several owners holding fee simple title to individual units
in a property and common ownership in the property's common grounds is called -
Answer-condominium
A development where different land uses are combined in one area, for example,
housing,
recreation and businesses in one development is called a - Answer-Planned Unit
Development (PUD)
A business which is held by one person and is not incorporated is a - Answer-sole
proprietorship
True or False
A corporation is considered a legal entity. - Answer-True
Which type of business ownership has the disadvantage of being subject to double
taxation? - Answer-Corporation
,A type of ownership in which the owner owns shares of stock rather than real property is
called - Answer-co-operative
In which type of partnership is each partner responsible for the debts up to the limits of
his own private resources? - Answer-general partnership
True or False
In community property, any property acquired outside the marriage, such as an
inheritance, is
called separate property. - Answer-True
True or False
A corporation is managed by a board of directors. - Answer-True
Ownership by a husband and wife in which the husband and wife each have separate,
equal ownership in anything acquired by the marriage is called - Answer-community
property
Three owners own a property as joint tenants. One of the owners sells his interest to a
fourth party.
The fourth party is a - Answer-tenant in common
Two investors buy a building as joint tenants. One of the investors dies. Which of the
following is true as to ownership of the building? - Answer-The remaining investor owns
the building in severalty
A determinable fee estate is ownership with - Answer-conditions
Two investors own an apartment building as joint tenants. One man dies leaving his
entire estate to his two children. Which of the following best describes what will happen
as to ownership of the apartment building? - Answer-The children do not inherit the
apartment building.
Ownership along non-navigable riparian waterways is - Answer-to the midpoint
A free-standing china cabinet built to fit into a corner of a dining room would be
considered - Answer-personal property
Ownership along navigable riparian waterways is - Answer-to the water's edge
A property owner owns land near a waterway with no access to the water. He obtains
permission
from the state to use the waterway under the doctrine of prior appropriation. How does
he obtain
,access to the waterway? - Answer-he must negotiate an easement with the owner of
the waterfront property.
Mr. Baker and Mr. Adams are partners in a business which sells golf balls. Mr. Baker
owns 60% of the business and Mr. Adams holds 40%. Who must sign in order to sell
the business? - Answer-both
Tenancy by the entirety is most similar to - Answer-joint tenancy
A man conveys his interest in a pharmaceutical company to his ailing sister's son with
the condition that the income from the company be used for his sister's medical care.
Which of the following is
true? - Answer-The man is the trustee with his sister as the beneficiary
A tenant was renting a property for use as a beauty shop. When she moved out of the
property she
failed to remove the chairs that she used for her business. The chairs, although trade
fixtures, are
now the property of the owner. Under what principle does the landowner acquire the
trade - Answer-annexation
A man owns a life estate dependent on his own life. He leases the property for 3 years
and dies
one year later. Which is true concerning the lease? - Answer-The lease is no longer
valid
Ownership of real estate by a corporation would be - Answer-in severalty
Which of the following would not transfer with the sale of a house at closing? - Answer-
emblements
Two investors can own an investment property in unequal shares as - Answer-tenants
in common
Which estate is ALWAYS inheritable? - Answer-fee simple
A husband and wife own their home as tenants in the entireties. The wife dies and
names their two
children to inherit her interest in the home. Which of the following statements is true? -
Answer-The children have no ownership in the home
What type of real estate investment has no real property ownership? - Answer-
cooperative
Possession, interest, time and title (or PITT) are associated with what type of
ownership? - Answer-joint tenancy
, Which of the following statements would be true of both joint tenancy and tenancy by
the entirety? - Answer-They both have the right of survivorship
A man is a co-owner with three others of a warehouse. The man dies and his interest in
the warehouse is inherited by his heirs. The man's interest in the warehouse was as a: -
Answer-tenant in common
True or False
The right of disposition gives an owner the right to sell, will, lease, or give away his
property rights - Answer-True
A developer may transfer ownership of the streets and parks in a subdivision through a -
Answer-public dedication
When the government gives land to a private party it is called a public grant. When a
private party gives land to the government it is known as a - Answer-public dedication
A general warranty deed contains how many covenants? - Answer-Five
A type of deed that guarantees more than the quitclaim but less than the special
warranty deed is
the - Answer-bargain and sale deed
What type of deed is the best one for the grantee? - Answer-general warranty deed
What type of deed provides the LEAST protection for the grantee? - Answer-quitclaim
deed
A written instrument by which title to real property is formally transferred from one party
to another
is a - Answer-deed
True or False
A general warranty deed absolutely guarantees good title regardless of flaws of title,
unrecorded claims, undisclosed encumbrances, or fraud - Answer-False
In which type of deed does the grantor guarantee the title only during the time that he
actually owned the property? - Answer-special warranty deed
What signatures are required on a deed or conveyance? - Answer-The grantor only
The party conveying title is known as the - Answer-grantor
Administrator's deed, executor's deed, and sheriff's deed are all what type of deed? -
Answer-Specialty Deed
ESTATE QUESTIONS WITH
COMPLETE SOLUTIONS
A type of freehold estate which exists until the death of a certain specified person is -
Answer-life estate
A clause in a deed that provides for the property to revert to the original owner if
conditions of
ownership are not met is called a: - Answer-reverter clause
True or False
Because of the right of survivor-ship, joint tenancy is sometimes called "a poor man's
will". - Answer-True
Tenancy by the entirety is ownership by - Answer-a husband and wife
A stockholder's use of a unit in a co-operative is secured by: - Answer-a proprietary
lease
Highrise developments which combine offices, stores, theaters, and apartments, and
other facilities in a single building are called - Answer-Mixed Unit Developments
(MUD's)
A form of ownership involving several owners holding fee simple title to individual units
in a property and common ownership in the property's common grounds is called -
Answer-condominium
A development where different land uses are combined in one area, for example,
housing,
recreation and businesses in one development is called a - Answer-Planned Unit
Development (PUD)
A business which is held by one person and is not incorporated is a - Answer-sole
proprietorship
True or False
A corporation is considered a legal entity. - Answer-True
Which type of business ownership has the disadvantage of being subject to double
taxation? - Answer-Corporation
,A type of ownership in which the owner owns shares of stock rather than real property is
called - Answer-co-operative
In which type of partnership is each partner responsible for the debts up to the limits of
his own private resources? - Answer-general partnership
True or False
In community property, any property acquired outside the marriage, such as an
inheritance, is
called separate property. - Answer-True
True or False
A corporation is managed by a board of directors. - Answer-True
Ownership by a husband and wife in which the husband and wife each have separate,
equal ownership in anything acquired by the marriage is called - Answer-community
property
Three owners own a property as joint tenants. One of the owners sells his interest to a
fourth party.
The fourth party is a - Answer-tenant in common
Two investors buy a building as joint tenants. One of the investors dies. Which of the
following is true as to ownership of the building? - Answer-The remaining investor owns
the building in severalty
A determinable fee estate is ownership with - Answer-conditions
Two investors own an apartment building as joint tenants. One man dies leaving his
entire estate to his two children. Which of the following best describes what will happen
as to ownership of the apartment building? - Answer-The children do not inherit the
apartment building.
Ownership along non-navigable riparian waterways is - Answer-to the midpoint
A free-standing china cabinet built to fit into a corner of a dining room would be
considered - Answer-personal property
Ownership along navigable riparian waterways is - Answer-to the water's edge
A property owner owns land near a waterway with no access to the water. He obtains
permission
from the state to use the waterway under the doctrine of prior appropriation. How does
he obtain
,access to the waterway? - Answer-he must negotiate an easement with the owner of
the waterfront property.
Mr. Baker and Mr. Adams are partners in a business which sells golf balls. Mr. Baker
owns 60% of the business and Mr. Adams holds 40%. Who must sign in order to sell
the business? - Answer-both
Tenancy by the entirety is most similar to - Answer-joint tenancy
A man conveys his interest in a pharmaceutical company to his ailing sister's son with
the condition that the income from the company be used for his sister's medical care.
Which of the following is
true? - Answer-The man is the trustee with his sister as the beneficiary
A tenant was renting a property for use as a beauty shop. When she moved out of the
property she
failed to remove the chairs that she used for her business. The chairs, although trade
fixtures, are
now the property of the owner. Under what principle does the landowner acquire the
trade - Answer-annexation
A man owns a life estate dependent on his own life. He leases the property for 3 years
and dies
one year later. Which is true concerning the lease? - Answer-The lease is no longer
valid
Ownership of real estate by a corporation would be - Answer-in severalty
Which of the following would not transfer with the sale of a house at closing? - Answer-
emblements
Two investors can own an investment property in unequal shares as - Answer-tenants
in common
Which estate is ALWAYS inheritable? - Answer-fee simple
A husband and wife own their home as tenants in the entireties. The wife dies and
names their two
children to inherit her interest in the home. Which of the following statements is true? -
Answer-The children have no ownership in the home
What type of real estate investment has no real property ownership? - Answer-
cooperative
Possession, interest, time and title (or PITT) are associated with what type of
ownership? - Answer-joint tenancy
, Which of the following statements would be true of both joint tenancy and tenancy by
the entirety? - Answer-They both have the right of survivorship
A man is a co-owner with three others of a warehouse. The man dies and his interest in
the warehouse is inherited by his heirs. The man's interest in the warehouse was as a: -
Answer-tenant in common
True or False
The right of disposition gives an owner the right to sell, will, lease, or give away his
property rights - Answer-True
A developer may transfer ownership of the streets and parks in a subdivision through a -
Answer-public dedication
When the government gives land to a private party it is called a public grant. When a
private party gives land to the government it is known as a - Answer-public dedication
A general warranty deed contains how many covenants? - Answer-Five
A type of deed that guarantees more than the quitclaim but less than the special
warranty deed is
the - Answer-bargain and sale deed
What type of deed is the best one for the grantee? - Answer-general warranty deed
What type of deed provides the LEAST protection for the grantee? - Answer-quitclaim
deed
A written instrument by which title to real property is formally transferred from one party
to another
is a - Answer-deed
True or False
A general warranty deed absolutely guarantees good title regardless of flaws of title,
unrecorded claims, undisclosed encumbrances, or fraud - Answer-False
In which type of deed does the grantor guarantee the title only during the time that he
actually owned the property? - Answer-special warranty deed
What signatures are required on a deed or conveyance? - Answer-The grantor only
The party conveying title is known as the - Answer-grantor
Administrator's deed, executor's deed, and sheriff's deed are all what type of deed? -
Answer-Specialty Deed
