PSI MA Real Estate Exam Study
Guide -NSREA, Real Estate
Vocabulary Questions and Answers
100% PASS
Appraisal - CORRECT ANSWER-An estimation of a property's value, usually
prepared by a professional who is licensed in this field.
Brokerage - CORRECT ANSWER-The business of bringing people together in a
real estate transaction.
Commerical - CORRECT ANSWER-The types of properties that include office
spaces, shopping centers, stores, theaters, hotels, parking facilities, etc.
Development - CORRECT ANSWER-The term for the construction of
improvements upon the land.
Elevation Certificate - CORRECT ANSWER-Insurance agents are required to
obtain one of these on any property before issuing quotes for flood insurance.
Financing - CORRECT ANSWER-The pledging of real property and collateral for
the repayment of a loan through a mortgage or deed of trust.
,Flood Insurance - CORRECT ANSWER-This type of homeowner's insurance
policy covers "rising water" problems such as a burst water main, overloaded
drains, and melting snow. It is usually an optional add-on policy that becomes
effective 30 days after purchase, unless the property is in a specific area and is
collateral for a federal loan, in which case it is a mandatory policy and effective
immediately.
Improvements - CORRECT ANSWER-Additions to property that increase its
value or enhance its appearance. It can include buildings, fixtures, and landscaping.
Property Management - CORRECT ANSWER-A broad term for a person or
company hired to maintain and manage a property on behalf of its owners, and
who are to maximize the owner's returns.
Special Flood Hazard Area - CORRECT ANSWER-Properties in this area are
required by federal law to have special insurance as part of any federally-backed
mortgages.
Subdivision - CORRECT ANSWER-The process of splitting a single property into
smaller parcels.
Residential - CORRECT ANSWER-The type of properties that include single and
multi-family homes.
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,Industrial - CORRECT ANSWER-The types of properties that include
warehouses, factories, power plants, and other manufacturing areas, even if the
property has a storefront attached.
Agricultural - CORRECT ANSWER-The types of properties that include
farmlands, timberlands, orchards, and ranches.
Special Purpose - CORRECT ANSWER-The types of properties that include
churches, schools, cemeteries, and government-held lands.
Real Estate Market - CORRECT ANSWER-The setting where real property is
bought and sold and prices are established.
Submarket - CORRECT ANSWER-A real estate market defined by property type
and/or geographic location.
National Association of Realtors - CORRECT ANSWER-A professional real
estate organization that requires members to uphold a specific set of ethics and pay
dues. In turn, the members can call themselves Realtors.
Seller's Market - CORRECT ANSWER-The situation where demand for real
property is greater than the supply, which causes sale prices to rise and builders to
become more motivated to build.
Location - CORRECT ANSWER-This characteristic of real property is important
because a parcel's value is impacted by surrounding land uses.
, Demographics - CORRECT ANSWER-This factor determines the quantity and
type of housing in demand in a particular area. It evaluates family sizes, ratio of
adults to children, number of senior citizens, family incomes, lifestyles, etc.
Property - CORRECT ANSWER-This term refers to both a physical article and
the rights and interests involved in its use of ownership.
Rights of Ownership - CORRECT ANSWER-A "bundle" of legal rights associated
with owned property. These rights include possession, control of the property
(within legal bounds), enjoyment of the property, exclusion, and disposition.
Appurtenance - CORRECT ANSWER-Anything that is used with land for its
benefits. Examples include subsurface, air, and water rights, as well as gardens and
certain easements.
Exclusion - CORRECT ANSWER-The right to legally ban other people from
entering your property without your consent.
Air Rights - CORRECT ANSWER-These rights are for the use of space above a
piece of real property. They can be transferred and subdivided.
Subsurface Rights - CORRECT ANSWER-These rights are for the use of anything
found beneath a piece of real property, such as oil, coal, or gas. These rights can be
transferred separately from the property itself, and include an implied easement
that allows the owner access to the property so that they can exercise their rights.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Guide -NSREA, Real Estate
Vocabulary Questions and Answers
100% PASS
Appraisal - CORRECT ANSWER-An estimation of a property's value, usually
prepared by a professional who is licensed in this field.
Brokerage - CORRECT ANSWER-The business of bringing people together in a
real estate transaction.
Commerical - CORRECT ANSWER-The types of properties that include office
spaces, shopping centers, stores, theaters, hotels, parking facilities, etc.
Development - CORRECT ANSWER-The term for the construction of
improvements upon the land.
Elevation Certificate - CORRECT ANSWER-Insurance agents are required to
obtain one of these on any property before issuing quotes for flood insurance.
Financing - CORRECT ANSWER-The pledging of real property and collateral for
the repayment of a loan through a mortgage or deed of trust.
,Flood Insurance - CORRECT ANSWER-This type of homeowner's insurance
policy covers "rising water" problems such as a burst water main, overloaded
drains, and melting snow. It is usually an optional add-on policy that becomes
effective 30 days after purchase, unless the property is in a specific area and is
collateral for a federal loan, in which case it is a mandatory policy and effective
immediately.
Improvements - CORRECT ANSWER-Additions to property that increase its
value or enhance its appearance. It can include buildings, fixtures, and landscaping.
Property Management - CORRECT ANSWER-A broad term for a person or
company hired to maintain and manage a property on behalf of its owners, and
who are to maximize the owner's returns.
Special Flood Hazard Area - CORRECT ANSWER-Properties in this area are
required by federal law to have special insurance as part of any federally-backed
mortgages.
Subdivision - CORRECT ANSWER-The process of splitting a single property into
smaller parcels.
Residential - CORRECT ANSWER-The type of properties that include single and
multi-family homes.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,Industrial - CORRECT ANSWER-The types of properties that include
warehouses, factories, power plants, and other manufacturing areas, even if the
property has a storefront attached.
Agricultural - CORRECT ANSWER-The types of properties that include
farmlands, timberlands, orchards, and ranches.
Special Purpose - CORRECT ANSWER-The types of properties that include
churches, schools, cemeteries, and government-held lands.
Real Estate Market - CORRECT ANSWER-The setting where real property is
bought and sold and prices are established.
Submarket - CORRECT ANSWER-A real estate market defined by property type
and/or geographic location.
National Association of Realtors - CORRECT ANSWER-A professional real
estate organization that requires members to uphold a specific set of ethics and pay
dues. In turn, the members can call themselves Realtors.
Seller's Market - CORRECT ANSWER-The situation where demand for real
property is greater than the supply, which causes sale prices to rise and builders to
become more motivated to build.
Location - CORRECT ANSWER-This characteristic of real property is important
because a parcel's value is impacted by surrounding land uses.
, Demographics - CORRECT ANSWER-This factor determines the quantity and
type of housing in demand in a particular area. It evaluates family sizes, ratio of
adults to children, number of senior citizens, family incomes, lifestyles, etc.
Property - CORRECT ANSWER-This term refers to both a physical article and
the rights and interests involved in its use of ownership.
Rights of Ownership - CORRECT ANSWER-A "bundle" of legal rights associated
with owned property. These rights include possession, control of the property
(within legal bounds), enjoyment of the property, exclusion, and disposition.
Appurtenance - CORRECT ANSWER-Anything that is used with land for its
benefits. Examples include subsurface, air, and water rights, as well as gardens and
certain easements.
Exclusion - CORRECT ANSWER-The right to legally ban other people from
entering your property without your consent.
Air Rights - CORRECT ANSWER-These rights are for the use of space above a
piece of real property. They can be transferred and subdivided.
Subsurface Rights - CORRECT ANSWER-These rights are for the use of anything
found beneath a piece of real property, such as oil, coal, or gas. These rights can be
transferred separately from the property itself, and include an implied easement
that allows the owner access to the property so that they can exercise their rights.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
