SC PSI Real Estate Exam Prep Questions With Correct Answers

SC PSI Real Estate Exam Prep Questions
With Correct Answers
Which |of |the |following |describes |the |term |appreciation? |- |CORRECT |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: |- |CORRECT |ANSWER✔✔-An |assignment




A |mortgage |loan |which |requires |the |remaining |balance |be |paid |at |a |specific |point |in |time |is |
called |a: |- |CORRECT |ANSWER✔✔-Balloon |mortgage



The |following |reason |accounts |for |why |bridge |loans |are |not |used |much |anymore: |- |CORRECT |
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. |- |CORRECT |ANSWER✔✔-Clear |title



What |is |the |collateral |in |a |home |loan? |- |CORRECT |ANSWER✔✔-The |property |itself



The |adjustment |date |on |adjustable |rate |mortgage |is: |- |CORRECT |ANSWER✔✔-The |date |the |
interest |rate |changes



What |is |the |deposit |made |by |potential |buyer |to |show |he |is |serious |about |buying |a |house |
called? |- |CORRECT |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: |- |CORRECT |ANSWER✔✔-Easement



Which |best |describes |a |subdivision? |- |CORRECT |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: |- |CORRECT |ANSWER✔✔-Sweat |equity



A |two-step |mortgage |is |defined |as: |- |CORRECT |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: |- |
CORRECT |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: |- |CORRECT |ANSWER✔✔-
Bill |of |sale



An |oral |or |written |agreement |that |is |binding |in |a |court |of |law |is |called |a: |- |CORRECT |
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: |- |CORRECT |ANSWER✔✔-Down |payment




A |female |named |in |a |will |to |administer |an |estate |is |called |an: |- |CORRECT |ANSWER✔✔-
Executrix

,The |greatest |possible |interest |a |person |can |have |in |real |estate |is |called: |- |CORRECT |
ANSWER✔✔-Fee |simple



Required |for |properties |located |in |federally |designated |flood |areas, |this |type |of |insurance |
compensates |for |physical |property |damage |resulting |from |flooding. |It |is |called |- |CORRECT |
ANSWER✔✔-Flood |insurance



The |following |is |true |of |a |government |loan: |- |CORRECT |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: |- |CORRECT |ANSWER✔✔-The |
grantor



Insurance |that |covers |in |the |event |of |physical |damage |to |property |from |fire, |wind, |vandalism, |
or |other |hazards |is |called: |- |CORRECT |ANSWER✔✔-Hazard |insurance



A |liquid |asset |is: |- |CORRECT |ANSWER✔✔-A |cash |asset |or |an |asset |easily |turned |into |cash



Another |term |for |the |lender |in |a |mortgage |agreement |is |the: |- |CORRECT |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. |- |CORRECT |ANSWER✔✔-Owner



A |point |is: |- |CORRECT |ANSWER✔✔-1% |of |the |amount |of |the |mortgage

, What |does |a |power |of |attorney |grant |someone? |- |CORRECT |ANSWER✔✔-Complete |or |limited |
authority |on |behalf |of |someone |else



The |principal |is: |- |CORRECT |ANSWER✔✔-The |amount |borrowed |or |remaining |unpaid. |

Part |of |monthly |payment |that |reduces |the |remaining |balance |of |a |mortgage.



A |promissory |note |is: |- |CORRECT |ANSWER✔✔-A |written |promise |to |repay |a |specified |amount |
over |specified |period |of |time



Which |of |the |following |best |describes |a |real |estate |agent? |- |CORRECT |ANSWER✔✔-A |licensed |
person |who |negotiates |and |transact |the |sale |of |real |estate



When |an |assumption |takes |place? |- |CORRECT |ANSWER✔✔-When |the |buyer |assumes |the |
sellers |mortgage



A |legal |document |conveying |title |to |a |property |is |called |a: |- |CORRECT |ANSWER✔✔-Deed



If |you |have |a |loan |and |transfer |the |title |to |another |individual |without |informing |the |lender, |it |
is |likely |that |the |lender |will |demand |payment |of |the |outstanding |loan |balance. |He |is |able |to |
do |this |because |of |a |clause |in |your |mortgage |called |the: |- |CORRECT |ANSWER✔✔-Acceleration |
clause.



The |most |common |type |of |bankruptcy |is |called: |- |CORRECT |ANSWER✔✔-Chapter |7 |no |asset |
bankruptcy



Which |of |the |following |best |describes |a |broker? |- |CORRECT |ANSWER✔✔-Someone |who |owns |
a |real |estate |firm. |

Some |real |estate |agents |working |for |brokers. |