PSI REAL ESTATE EXAM: COMPREHENSIVE
PRACTICE TEST WITH ANSWERS &
EXPLANATIONS
1. A homeowner has negotiated with a neighbor to obtain the permanent right to
pass over the northern part of the neighbor's land to gain access to the river. He
pays the neighbor $9,000 for the right of access and receives a deed. This is an
easement
A. Appurtenant ✔
B. In gross
C. By necessity
D. Prescriptive
Explanation: An easement appurtenant benefits the dominant parcel (access to
river) and runs with the land.
2. A tenant rented an apartment, signing a 15-month lease. After the lease
expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold
does the tenant have?
A. Periodic tenancy
B. Tenancy for years
C. Tenancy at will ✔
D. Tenancy at sufferance
Explanation: Without a new lease, payment and acceptance creates a tenancy at
will (month-to-month only if implied; here, general at-will).
,3. The main difference between tenancy in common and joint tenancy is that with
tenancy in common, when a co-owner dies,
A. the surviving co-owners automatically own the deceased's share
B. his undivided interest passes to his heirs ✔
C. the property is sold
D. the share escheats to the state
Explanation: Tenancy in common has no right of survivorship; interest passes to
heirs or devisees.
4. Although states make specific laws governing water rights and the rights in land
that borders water, most states generally follow one of two basic doctrines
regarding water rights. Either riparian and littoral rights are automatically
conveyed with property, or all water rights are controlled by the state under the
doctrine of prior appropriation. The doctrine of prior appropriation is MOST likely
to be followed in states where
A. water is abundant
B. water is scarce ✔
C. land is flat
D. land is mountainous
Explanation: Prior appropriation ("first in time, first in right") is common in arid
western states where water is scarce.
5. A legal easement can be created by any of the following EXCEPT
A. prescription
B. necessity
C. merger of the titles ✔
D. express grant
,Explanation: Merger extinguishes an easement; it does not create one.
6. Legal descriptions using the government survey system are NOT generally used
in
A. the Midwest
B. the original 13 states ✔
C. Alaska
D. California
Explanation: The Public Land Survey System (PLSS) was not used in the original 13
colonies, which use metes and bounds.
7. Real property can be converted to personal property by
A. annexation
B. severance ✔
C. accretion
D. attachment
Explanation: Severance detaches an item from the land (e.g., cutting down a
tree), turning it into personal property.
8. A lawsuit for inverse condemnation may be brought by
A. a developer
B. a homeowner ✔
C. a utility company
D. a bank
Explanation: Inverse condemnation is brought by a property owner when
government takes property without compensation.
, 9. Building codes are
A. federal statutes
B. state criminal laws
C. ordinances that specify construction standards ✔
D. common law rules
Explanation: Building codes are local ordinances regulating construction safety
and standards.
10. A landowner wishes to build a neighborhood grocery store on a busy street in
an area zoned for residential use. Which of the following would MOST likely be
used to obtain permission for this store?
A. Conditional use permit or zoning variance ✔
B. Rezoning
C. Nonconforming use designation
D. Spot zoning waiver
Explanation: A conditional use permit allows a use not normally permitted, or a
variance modifies zoning requirements.
11. An environmental impact statement typically describes the effects of a
proposed project on factors such as
A. public health and safety ✔
B. property values
C. school enrollment
D. traffic only
Explanation: EIS analyzes environmental, health, and safety impacts, not just
traffic or economics.
PRACTICE TEST WITH ANSWERS &
EXPLANATIONS
1. A homeowner has negotiated with a neighbor to obtain the permanent right to
pass over the northern part of the neighbor's land to gain access to the river. He
pays the neighbor $9,000 for the right of access and receives a deed. This is an
easement
A. Appurtenant ✔
B. In gross
C. By necessity
D. Prescriptive
Explanation: An easement appurtenant benefits the dominant parcel (access to
river) and runs with the land.
2. A tenant rented an apartment, signing a 15-month lease. After the lease
expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold
does the tenant have?
A. Periodic tenancy
B. Tenancy for years
C. Tenancy at will ✔
D. Tenancy at sufferance
Explanation: Without a new lease, payment and acceptance creates a tenancy at
will (month-to-month only if implied; here, general at-will).
,3. The main difference between tenancy in common and joint tenancy is that with
tenancy in common, when a co-owner dies,
A. the surviving co-owners automatically own the deceased's share
B. his undivided interest passes to his heirs ✔
C. the property is sold
D. the share escheats to the state
Explanation: Tenancy in common has no right of survivorship; interest passes to
heirs or devisees.
4. Although states make specific laws governing water rights and the rights in land
that borders water, most states generally follow one of two basic doctrines
regarding water rights. Either riparian and littoral rights are automatically
conveyed with property, or all water rights are controlled by the state under the
doctrine of prior appropriation. The doctrine of prior appropriation is MOST likely
to be followed in states where
A. water is abundant
B. water is scarce ✔
C. land is flat
D. land is mountainous
Explanation: Prior appropriation ("first in time, first in right") is common in arid
western states where water is scarce.
5. A legal easement can be created by any of the following EXCEPT
A. prescription
B. necessity
C. merger of the titles ✔
D. express grant
,Explanation: Merger extinguishes an easement; it does not create one.
6. Legal descriptions using the government survey system are NOT generally used
in
A. the Midwest
B. the original 13 states ✔
C. Alaska
D. California
Explanation: The Public Land Survey System (PLSS) was not used in the original 13
colonies, which use metes and bounds.
7. Real property can be converted to personal property by
A. annexation
B. severance ✔
C. accretion
D. attachment
Explanation: Severance detaches an item from the land (e.g., cutting down a
tree), turning it into personal property.
8. A lawsuit for inverse condemnation may be brought by
A. a developer
B. a homeowner ✔
C. a utility company
D. a bank
Explanation: Inverse condemnation is brought by a property owner when
government takes property without compensation.
, 9. Building codes are
A. federal statutes
B. state criminal laws
C. ordinances that specify construction standards ✔
D. common law rules
Explanation: Building codes are local ordinances regulating construction safety
and standards.
10. A landowner wishes to build a neighborhood grocery store on a busy street in
an area zoned for residential use. Which of the following would MOST likely be
used to obtain permission for this store?
A. Conditional use permit or zoning variance ✔
B. Rezoning
C. Nonconforming use designation
D. Spot zoning waiver
Explanation: A conditional use permit allows a use not normally permitted, or a
variance modifies zoning requirements.
11. An environmental impact statement typically describes the effects of a
proposed project on factors such as
A. public health and safety ✔
B. property values
C. school enrollment
D. traffic only
Explanation: EIS analyzes environmental, health, and safety impacts, not just
traffic or economics.
