PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
The economic characteristics of land are Correct Answer-scarcity, location,
and durability
A major difference between freehold and nonfreehold estates is that all freehold
estates Correct Answer-are of indeterminable duration
An easement can be terminated by Correct Answer-merger of titles
The land description T3N, R4W Principal Meridian refers to what method of
property description? Correct Answer-Rectangular survey
Tenants are still in their rental property even though their lease has expired. The
landlord has given them written notice to quit and refused to accept rent. They
are Correct Answer-tenants at sufferance
A property is encumbered by a first mortgage of $60,000 and a second mortgage
of $23,500. The property has just been sold at a foreclosure auction to a
speculating investor for $88,000. Assume that all costs of the foreclosure sale
are included in these balances. Which of the following statements is FALSE
regarding the distribution of funds? Correct Answer-The second mortgage
receives nothing unless he forced the foreclosure auction.
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
At the time of harvest, crops that require annual planting are generally
considered to be Correct Answer-personal property
A property owner died, having willed his property to his two daughters. There is
still a chance that they could lose the land for a variety of reasons, but it
CANNOT be taken through Correct Answer-escheat
An environmental impact statement typically describes the effects of a proposed
on factors such as Correct Answer-public health and safety
A lawsuit for inverse condemnation may be brought by Correct Answer-a
homeowner
A deed restriction is applicable to the activities of Correct Answer-all owners,
present and future
The terms "littoral," "riparian," and "appropriative" refer to Correct Answer-
water rights
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
If conditions for purchase are included in a deed and these conditions are
violated, what is the penalty? Correct Answer-Return of the property to the
original owner.
The PRIMARY purpose of zoning ordinances is to Correct Answer-implement a
local master plan
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than Correct Answer-$250,000
If all other factors are equal, in which location is a parking lot likely to bring the
highest sales price? Correct Answer-Business district zoned for a six-story
office building.
A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest Correct Answer-a competitive
market analysis to determine the property's value.
A formal appraisal will ALWAYS be REQUIRED when the Correct Answer-
lender wants to sell the mortgage to the secondary market.
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
When compiling a competitive market analysis, a broker would look for
comparable properties that Correct Answer-were located near the property
being listed.
All of the following are methods to calculate the reproduction or replacement
cost of a building EXCEPT the Correct Answer-straight-line method
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? Correct Answer-Market data
The purpose of usury laws is to regulate Correct Answer-interest rates
charged by lenders.
Regulation Z addresses all of the following issues EXCEPT Correct Answer-
usury.
Which of the following statements about discount points is FALSE? Correct
Answer-They are computed as a percentage of the selling price.
with Complete Solutions
The economic characteristics of land are Correct Answer-scarcity, location,
and durability
A major difference between freehold and nonfreehold estates is that all freehold
estates Correct Answer-are of indeterminable duration
An easement can be terminated by Correct Answer-merger of titles
The land description T3N, R4W Principal Meridian refers to what method of
property description? Correct Answer-Rectangular survey
Tenants are still in their rental property even though their lease has expired. The
landlord has given them written notice to quit and refused to accept rent. They
are Correct Answer-tenants at sufferance
A property is encumbered by a first mortgage of $60,000 and a second mortgage
of $23,500. The property has just been sold at a foreclosure auction to a
speculating investor for $88,000. Assume that all costs of the foreclosure sale
are included in these balances. Which of the following statements is FALSE
regarding the distribution of funds? Correct Answer-The second mortgage
receives nothing unless he forced the foreclosure auction.
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
At the time of harvest, crops that require annual planting are generally
considered to be Correct Answer-personal property
A property owner died, having willed his property to his two daughters. There is
still a chance that they could lose the land for a variety of reasons, but it
CANNOT be taken through Correct Answer-escheat
An environmental impact statement typically describes the effects of a proposed
on factors such as Correct Answer-public health and safety
A lawsuit for inverse condemnation may be brought by Correct Answer-a
homeowner
A deed restriction is applicable to the activities of Correct Answer-all owners,
present and future
The terms "littoral," "riparian," and "appropriative" refer to Correct Answer-
water rights
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
If conditions for purchase are included in a deed and these conditions are
violated, what is the penalty? Correct Answer-Return of the property to the
original owner.
The PRIMARY purpose of zoning ordinances is to Correct Answer-implement a
local master plan
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than Correct Answer-$250,000
If all other factors are equal, in which location is a parking lot likely to bring the
highest sales price? Correct Answer-Business district zoned for a six-story
office building.
A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest Correct Answer-a competitive
market analysis to determine the property's value.
A formal appraisal will ALWAYS be REQUIRED when the Correct Answer-
lender wants to sell the mortgage to the secondary market.
, PSI PA Real Estate Practice Exam; Questions
with Complete Solutions
When compiling a competitive market analysis, a broker would look for
comparable properties that Correct Answer-were located near the property
being listed.
All of the following are methods to calculate the reproduction or replacement
cost of a building EXCEPT the Correct Answer-straight-line method
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? Correct Answer-Market data
The purpose of usury laws is to regulate Correct Answer-interest rates
charged by lenders.
Regulation Z addresses all of the following issues EXCEPT Correct Answer-
usury.
Which of the following statements about discount points is FALSE? Correct
Answer-They are computed as a percentage of the selling price.
