PSI NATIONAL REAL ESTATE EXAM 2024
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS WITH RATIONALE ALREADY
GRADED A+
Li Meng purchased a property that had been owned by the same
man for more than 40 years. The title search was clean. In the
spring, she started seeing traffic on the path to her dock and
discovered that the previous owner had always allowed the locals
to use his path to get to the lake. What covenant may have been
breached - CORRECT ANSWER >>Against Encumbrances
In an amortized loan, the interest portion of the mortgage
payment generally ______ over the life of the loan. - CORRECT
ANSWER >>Decreases
Which act created an agency to investigate antitrust practices? -
CORRECT ANSWER >>Federal Trade Commission Act
Which real property ownership right protects the owner from
harassment or interference? - CORRECT ANSWER
>>Enjoyment
,What's usury? - CORRECT ANSWER >>When a loan's interest
rate is higher than the maximum allowable rate
Centennial Development is constructing a new condo. The
exterior of the building is 60 feet square. Which of these about the
air lot is true? - CORRECT ANSWER >>The air lot is the same
perimeter as the condo and the lot on which it's built.
Steven owns 114 acres of wooded, rural land. The abundance of
wildlife on his property means that his friends are always asking
for permission to hunt on it during various game seasons. If
Steven gives a friend permission to hunt on his land, it can be
said that he has given his friend a ______. - CORRECT
ANSWER >>License
Property ownership gives the title holder a bundle of rights.
What's significant about the concept of a bundle of rights? -
CORRECT ANSWER >>It describes the ability to separate one
right from the others while leaving the rest of the bundle intact.
_______ is an increase in property value caused by the joining of
two neighboring parcels of land. - CORRECT ANSWER
>>Plottage
,Which of these statements about frontage is true? - CORRECT
ANSWER >>The frontage for a lot that's 120 feet by 85 feet is
120 feet.
Margot and Steve owned several rental properties at the time of
their divorce. The divorce decree gave ownership to Margot in
return for a cash payment by Steve. Fast forward six years, and
Margot is ready to sell the properties. She soon discovers,
though, that Steve's name is still on the title. What's her best
course of action? - CORRECT ANSWER >>Ask Steve to
generate quit-claim deeds on the properties.
Marge's broker, Geoffrey, told her that the lease on the property
she wants to buy runs with the land. What does that mean? -
CORRECT ANSWER >>If property ownership changes, the new
owner must abide by the lease terms.
Jorge accepted a seller's offer of insurable title. The transaction
hasn't reached closing, and a previously unknown title defect has
been revealed. What happens now? - CORRECT ANSWER
>>The seller may not be required to attempt to clear the defect
before closing.
, Kristin has been unable to make her mortgage payments. Her
property went to auction, but the lender didn't accept the high bid.
What stage of the foreclosure process is this property now in? -
CORRECT ANSWER >>Real Estate Owned (REO)
How does title insurance affect the lender? - CORRECT
ANSWER >>It protects the lender from loss due to defective
titles.
Which of these guarantees is offered by a general warranty deed
but not a special warranty deed? - CORRECT ANSWER >>The
seller will defend against all claims against the property's title.
Which of the following statements about material facts is true? -
CORRECT ANSWER >>A material fact may have more or less
effect on a buyer based on the buyer's needs and values.
Juan secures a fixed rate amortized 30-year loan for $295,000 at
4.25%. If his monthly P&I payment is $1,750, how much interest
does he pay in the second month of the loan?
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS WITH RATIONALE ALREADY
GRADED A+
Li Meng purchased a property that had been owned by the same
man for more than 40 years. The title search was clean. In the
spring, she started seeing traffic on the path to her dock and
discovered that the previous owner had always allowed the locals
to use his path to get to the lake. What covenant may have been
breached - CORRECT ANSWER >>Against Encumbrances
In an amortized loan, the interest portion of the mortgage
payment generally ______ over the life of the loan. - CORRECT
ANSWER >>Decreases
Which act created an agency to investigate antitrust practices? -
CORRECT ANSWER >>Federal Trade Commission Act
Which real property ownership right protects the owner from
harassment or interference? - CORRECT ANSWER
>>Enjoyment
,What's usury? - CORRECT ANSWER >>When a loan's interest
rate is higher than the maximum allowable rate
Centennial Development is constructing a new condo. The
exterior of the building is 60 feet square. Which of these about the
air lot is true? - CORRECT ANSWER >>The air lot is the same
perimeter as the condo and the lot on which it's built.
Steven owns 114 acres of wooded, rural land. The abundance of
wildlife on his property means that his friends are always asking
for permission to hunt on it during various game seasons. If
Steven gives a friend permission to hunt on his land, it can be
said that he has given his friend a ______. - CORRECT
ANSWER >>License
Property ownership gives the title holder a bundle of rights.
What's significant about the concept of a bundle of rights? -
CORRECT ANSWER >>It describes the ability to separate one
right from the others while leaving the rest of the bundle intact.
_______ is an increase in property value caused by the joining of
two neighboring parcels of land. - CORRECT ANSWER
>>Plottage
,Which of these statements about frontage is true? - CORRECT
ANSWER >>The frontage for a lot that's 120 feet by 85 feet is
120 feet.
Margot and Steve owned several rental properties at the time of
their divorce. The divorce decree gave ownership to Margot in
return for a cash payment by Steve. Fast forward six years, and
Margot is ready to sell the properties. She soon discovers,
though, that Steve's name is still on the title. What's her best
course of action? - CORRECT ANSWER >>Ask Steve to
generate quit-claim deeds on the properties.
Marge's broker, Geoffrey, told her that the lease on the property
she wants to buy runs with the land. What does that mean? -
CORRECT ANSWER >>If property ownership changes, the new
owner must abide by the lease terms.
Jorge accepted a seller's offer of insurable title. The transaction
hasn't reached closing, and a previously unknown title defect has
been revealed. What happens now? - CORRECT ANSWER
>>The seller may not be required to attempt to clear the defect
before closing.
, Kristin has been unable to make her mortgage payments. Her
property went to auction, but the lender didn't accept the high bid.
What stage of the foreclosure process is this property now in? -
CORRECT ANSWER >>Real Estate Owned (REO)
How does title insurance affect the lender? - CORRECT
ANSWER >>It protects the lender from loss due to defective
titles.
Which of these guarantees is offered by a general warranty deed
but not a special warranty deed? - CORRECT ANSWER >>The
seller will defend against all claims against the property's title.
Which of the following statements about material facts is true? -
CORRECT ANSWER >>A material fact may have more or less
effect on a buyer based on the buyer's needs and values.
Juan secures a fixed rate amortized 30-year loan for $295,000 at
4.25%. If his monthly P&I payment is $1,750, how much interest
does he pay in the second month of the loan?
