PSI NATIONAL REAL ESTATE AND ANSWERS GRADED A+
✔✔Which type of business ownership has the disadvantage of being subject to double
taxation? - ✔✔Corporation
✔✔A type of ownership in which the owner owns shares of stock rather than real
property is called - ✔✔co-operative
✔✔In which type of partnership is each partner responsible for the debts up to the limits
of his own private resources? - ✔✔general partnership
✔✔True or False
In community property, any property acquired outside the marriage, such as an
inheritance, is
called separate property. - ✔✔True
✔✔True or False
A corporation is managed by a board of directors. - ✔✔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 -
✔✔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 - ✔✔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? - ✔✔The remaining investor owns the
building in severalty
✔✔A determinable fee estate is ownership with - ✔✔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? - ✔✔The children do not inherit the
apartment building.
✔✔Ownership along non-navigable riparian waterways is - ✔✔to the midpoint
✔✔A free-standing china cabinet built to fit into a corner of a dining room would be
considered - ✔✔personal property
,✔✔Ownership along navigable riparian waterways is - ✔✔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? - ✔✔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? - ✔✔both
✔✔Tenancy by the entirety is most similar to - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔The lease is no longer valid
✔✔Ownership of real estate by a corporation would be - ✔✔in severalty
✔✔Which of the following would not transfer with the sale of a house at closing? -
✔✔emblements
✔✔Two investors can own an investment property in unequal shares as - ✔✔tenants in
common
✔✔Which estate is ALWAYS inheritable? - ✔✔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? -
✔✔The children have no ownership in the home
✔✔What type of real estate investment has no real property ownership? -
✔✔cooperative
✔✔Possession, interest, time and title (or PITT) are associated with what type of
ownership? - ✔✔joint tenancy
✔✔Which of the following statements would be true of both joint tenancy and tenancy
by the entirety? - ✔✔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: - ✔✔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 - ✔✔True
✔✔A developer may transfer ownership of the streets and parks in a subdivision
through a - ✔✔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 - ✔✔public dedication
✔✔A general warranty deed contains how many covenants? - ✔✔Five
✔✔A type of deed that guarantees more than the quitclaim but less than the special
warranty deed is
the - ✔✔bargain and sale deed
✔✔What type of deed is the best one for the grantee? - ✔✔general warranty deed
✔✔What type of deed provides the LEAST protection for the grantee? - ✔✔quitclaim
deed
✔✔A written instrument by which title to real property is formally transferred from one
party to another
is a - ✔✔deed
✔✔True or False
✔✔Which type of business ownership has the disadvantage of being subject to double
taxation? - ✔✔Corporation
✔✔A type of ownership in which the owner owns shares of stock rather than real
property is called - ✔✔co-operative
✔✔In which type of partnership is each partner responsible for the debts up to the limits
of his own private resources? - ✔✔general partnership
✔✔True or False
In community property, any property acquired outside the marriage, such as an
inheritance, is
called separate property. - ✔✔True
✔✔True or False
A corporation is managed by a board of directors. - ✔✔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 -
✔✔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 - ✔✔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? - ✔✔The remaining investor owns the
building in severalty
✔✔A determinable fee estate is ownership with - ✔✔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? - ✔✔The children do not inherit the
apartment building.
✔✔Ownership along non-navigable riparian waterways is - ✔✔to the midpoint
✔✔A free-standing china cabinet built to fit into a corner of a dining room would be
considered - ✔✔personal property
,✔✔Ownership along navigable riparian waterways is - ✔✔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? - ✔✔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? - ✔✔both
✔✔Tenancy by the entirety is most similar to - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔The lease is no longer valid
✔✔Ownership of real estate by a corporation would be - ✔✔in severalty
✔✔Which of the following would not transfer with the sale of a house at closing? -
✔✔emblements
✔✔Two investors can own an investment property in unequal shares as - ✔✔tenants in
common
✔✔Which estate is ALWAYS inheritable? - ✔✔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? -
✔✔The children have no ownership in the home
✔✔What type of real estate investment has no real property ownership? -
✔✔cooperative
✔✔Possession, interest, time and title (or PITT) are associated with what type of
ownership? - ✔✔joint tenancy
✔✔Which of the following statements would be true of both joint tenancy and tenancy
by the entirety? - ✔✔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: - ✔✔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 - ✔✔True
✔✔A developer may transfer ownership of the streets and parks in a subdivision
through a - ✔✔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 - ✔✔public dedication
✔✔A general warranty deed contains how many covenants? - ✔✔Five
✔✔A type of deed that guarantees more than the quitclaim but less than the special
warranty deed is
the - ✔✔bargain and sale deed
✔✔What type of deed is the best one for the grantee? - ✔✔general warranty deed
✔✔What type of deed provides the LEAST protection for the grantee? - ✔✔quitclaim
deed
✔✔A written instrument by which title to real property is formally transferred from one
party to another
is a - ✔✔deed
✔✔True or False
