PSI Real Estate Exam & TN Exam Review
Questions with Correct Answers
Broker
A person or company licensed to buy, sell, exchange, or lease real property for others and to
charge a fee for these services.
Salesperson / affiliate broker
employed by or associated with the broker to perform brokerage activities on behalf of or for
the broker
Appraisal
process of developing an opinion (estimate of value) of a property's market value, based on
established methods and the appraiser's professional judgement.
Property Manager
A person or company hired to maintain and manage property on behalf of the property
owner; must have a license in the state of TN
Subdivision
the act of dividing land into pieces that are easier to sell or otherwise develop.
Development
involves preparation of a site and construction of structures or other improvements
Home Inspection/Inspector
conducts a thorough visual survey of a property's structures, systems, and site conditions and
prepares an analytical report that is valuable to both purchasers and homeowners
,Types of Real Property
residential, commercial, mixed-use, industrial, agricultural, and special purpose
Residential Real property
all property used for single-family or multifamily housing, whether in urban, suburban, or
rural areas
Commercial Real Property
Business property, including office space, shopping centers, stores, theaters, hotels, and
parking facilities
Mixed-Use Real Property
property that allows for two uses, commercial and residential, in the same building
Industrial Real Property
Warehouses, factories, land in industrial districts, and power plants
Agricultural Real Property
farms, timberland, ranches, and orchards
Special Purpose Real Property
Privately owned properties, such as places of worship, schools, and cemeteries, as well as
publicly held properties, such as schools, municipal service buildings, and parks.
Single-family detached house
one of the most popular housing types; has been adapted in urban areas to take the form of
row housing that may share a wall with an adjoining property.
Accessory Dwelling Unit (ADU)
, A separate housing arrangement within a single-family home. The ADU is a complete living
unit and includes a private kitchen and bath.
Condominium
condo owner owns an individual unit and also shares ownership with other unit owners of
common facilities, (halls, elevators, pools, laundry room, gym, etc.); conventional
ownership/deed
Cooperative (co-op)
units that share common walls and facilities within a larger building. owners do not own the
units , but each owner instead gets a share in the corporation that holds title to the real estate.
(proprietary lease)
Planned Unit Development (PUD)
master planned communities; might consist entirely of residences, but they can also serve to
merge diverse land usage such as, housing, recreation, and commercial units into one self-
contained development; may be a small development of just a few homes, or an entire
planned community
Mixed-Use Developments (MUDs)
Highrise developments that combine office space, stores, theaters, and apartment units into a
single vertical community.
Converted-use properties
Factories, warehouses, office buildings, hotels, schools, churches, and other structures that
have been converted to residential use. CONVERTED TO RESIDENTIAL USE
Factory Built
Questions with Correct Answers
Broker
A person or company licensed to buy, sell, exchange, or lease real property for others and to
charge a fee for these services.
Salesperson / affiliate broker
employed by or associated with the broker to perform brokerage activities on behalf of or for
the broker
Appraisal
process of developing an opinion (estimate of value) of a property's market value, based on
established methods and the appraiser's professional judgement.
Property Manager
A person or company hired to maintain and manage property on behalf of the property
owner; must have a license in the state of TN
Subdivision
the act of dividing land into pieces that are easier to sell or otherwise develop.
Development
involves preparation of a site and construction of structures or other improvements
Home Inspection/Inspector
conducts a thorough visual survey of a property's structures, systems, and site conditions and
prepares an analytical report that is valuable to both purchasers and homeowners
,Types of Real Property
residential, commercial, mixed-use, industrial, agricultural, and special purpose
Residential Real property
all property used for single-family or multifamily housing, whether in urban, suburban, or
rural areas
Commercial Real Property
Business property, including office space, shopping centers, stores, theaters, hotels, and
parking facilities
Mixed-Use Real Property
property that allows for two uses, commercial and residential, in the same building
Industrial Real Property
Warehouses, factories, land in industrial districts, and power plants
Agricultural Real Property
farms, timberland, ranches, and orchards
Special Purpose Real Property
Privately owned properties, such as places of worship, schools, and cemeteries, as well as
publicly held properties, such as schools, municipal service buildings, and parks.
Single-family detached house
one of the most popular housing types; has been adapted in urban areas to take the form of
row housing that may share a wall with an adjoining property.
Accessory Dwelling Unit (ADU)
, A separate housing arrangement within a single-family home. The ADU is a complete living
unit and includes a private kitchen and bath.
Condominium
condo owner owns an individual unit and also shares ownership with other unit owners of
common facilities, (halls, elevators, pools, laundry room, gym, etc.); conventional
ownership/deed
Cooperative (co-op)
units that share common walls and facilities within a larger building. owners do not own the
units , but each owner instead gets a share in the corporation that holds title to the real estate.
(proprietary lease)
Planned Unit Development (PUD)
master planned communities; might consist entirely of residences, but they can also serve to
merge diverse land usage such as, housing, recreation, and commercial units into one self-
contained development; may be a small development of just a few homes, or an entire
planned community
Mixed-Use Developments (MUDs)
Highrise developments that combine office space, stores, theaters, and apartment units into a
single vertical community.
Converted-use properties
Factories, warehouses, office buildings, hotels, schools, churches, and other structures that
have been converted to residential use. CONVERTED TO RESIDENTIAL USE
Factory Built
