PSI Real Estate Exam Prep 2024-2025 Questions
and Answers.
What is it called when a borrower attempts to sell a property without paying off the loan?
- Correct Answers Alienation
Vincent and Wendy are married and are buying a property. Their combined annual
income is $60,000. Subsequently, a lender determines that Vincent and Wendy qualify
for payments that constitute 23% of their income. What is the value of the monthly
payments? - Correct Answers $1,150.00
Global Company X wants to purchase several large tracts of adjacent properties but
does not want to reveal interest in the land until the deals are done. Global Company X
contracts with an agent, Alice, to act the principal in the transactions. In this scenario,
which term best describes Alice's role? - Correct Answers Undisclosed principal
Which of the following is not personal property? - Correct Answers Fixture
Russell owns land right next to a stream of water that passes across Russell's vast land.
However, Russell does not use the water and just lets the water flow its natural course.
Summer is a cattle farmer that lives five miles away down-stream and travels to the
stream to collect water so that summer may water her cattle. One day, Russell decides
that he's going to divert the stream so that he may grow a garden. Under a riparian
jurisdiction, may Russell do this? - Correct Answers No
A building that is valued at $120,000 is being depreciated over 27.5 years. After 17
years, how much will the building have depreciated? - Correct Answers $74,181.88
Wendy lives in a constructed home that was built ten years ago and was purchased
from a builder. The written sales contract did not state any additional warranties
regarding the property. Does the home have a warranty of fitness? - Correct Answers
No, because the home was built ten years ago.
Betsy is selling their grandmother's house to Christopher because Betsy's grandmother
has since moved to Boat Raton. The house was built in 1963, but Betsy's grandmother
did not own the property until 1982, after Betsy's grandfather was deceased. What must
be given to Christopher during the escrow phase? - Correct Answers EPA lead-based
paint pamphlet
What is the one major difference between lien theory states? - Correct Answers the
deed does not remain with the buyer in title theory states.
Which document shows the chain of title of a property? - Correct Answers Abstract
, Dillon, a non-licensed professional, discovers an open source of asbestos in their
commercial property. Which of the following actions should Dillon immediately take? -
Correct Answers Encapsulation
Which type of loan requires PMI until the borrower has 20% equity in the property? -
Correct Answers Insured conventional loan
Recently a homeowner's house suffered damage in a grease fire. What offers coverage
for this type of property damage? - Correct Answers Home insurance
A developer recently developed land and homes to be sold on the market. In the
covenants they recorded into record, they stated that the homes may be used only as
single-family homes. Is this a lawful exercise of private regulation on land? - Correct
Answers Yes
What is the term for the money that was lent to a borrower in exchange for the promise
of future repayment? - Correct Answers Loan
Javier and Karina own property and have the right of survivorship. What type of
ownership to Javier and Karina share? - Correct Answers Joint Tenancy
What obligation is discharged when an eviction has occurred? - Correct Answers
Obligation to pay
Briana and Cadena are in a dispute on who owns a certain property. What type of
lawsuit should be filed? - Correct Answers Quiet title action
In which approach is the value of the land calculated independently of the structure? -
Correct Answers Cost approach
Giselle holds a lease from January 13, 2002 to December 15, 2002. On September 12
2002, what type of lease tenancy does Gisselle have? - Correct Answers Tenancy for
years
A seller has prepaid landscaper service fees for a 3-month duration. The prepayment
amount was $900. At the end of the 1st month, the property was sold to a buyer. What
is the prorated amount that will be debited to the buyer? - Correct Answers $600
When is there a seller's market? - Correct Answers fewer houses are for sale than there
are buyers to buy them
If the GRM of a property is 110 and the monthly potential gross income for that property
is $1,400, what is the estimated value of that property? - Correct Answers $154,000
Which of the following is a valid lease? - Correct Answers -Written
-Unwritten lease
and Answers.
What is it called when a borrower attempts to sell a property without paying off the loan?
- Correct Answers Alienation
Vincent and Wendy are married and are buying a property. Their combined annual
income is $60,000. Subsequently, a lender determines that Vincent and Wendy qualify
for payments that constitute 23% of their income. What is the value of the monthly
payments? - Correct Answers $1,150.00
Global Company X wants to purchase several large tracts of adjacent properties but
does not want to reveal interest in the land until the deals are done. Global Company X
contracts with an agent, Alice, to act the principal in the transactions. In this scenario,
which term best describes Alice's role? - Correct Answers Undisclosed principal
Which of the following is not personal property? - Correct Answers Fixture
Russell owns land right next to a stream of water that passes across Russell's vast land.
However, Russell does not use the water and just lets the water flow its natural course.
Summer is a cattle farmer that lives five miles away down-stream and travels to the
stream to collect water so that summer may water her cattle. One day, Russell decides
that he's going to divert the stream so that he may grow a garden. Under a riparian
jurisdiction, may Russell do this? - Correct Answers No
A building that is valued at $120,000 is being depreciated over 27.5 years. After 17
years, how much will the building have depreciated? - Correct Answers $74,181.88
Wendy lives in a constructed home that was built ten years ago and was purchased
from a builder. The written sales contract did not state any additional warranties
regarding the property. Does the home have a warranty of fitness? - Correct Answers
No, because the home was built ten years ago.
Betsy is selling their grandmother's house to Christopher because Betsy's grandmother
has since moved to Boat Raton. The house was built in 1963, but Betsy's grandmother
did not own the property until 1982, after Betsy's grandfather was deceased. What must
be given to Christopher during the escrow phase? - Correct Answers EPA lead-based
paint pamphlet
What is the one major difference between lien theory states? - Correct Answers the
deed does not remain with the buyer in title theory states.
Which document shows the chain of title of a property? - Correct Answers Abstract
, Dillon, a non-licensed professional, discovers an open source of asbestos in their
commercial property. Which of the following actions should Dillon immediately take? -
Correct Answers Encapsulation
Which type of loan requires PMI until the borrower has 20% equity in the property? -
Correct Answers Insured conventional loan
Recently a homeowner's house suffered damage in a grease fire. What offers coverage
for this type of property damage? - Correct Answers Home insurance
A developer recently developed land and homes to be sold on the market. In the
covenants they recorded into record, they stated that the homes may be used only as
single-family homes. Is this a lawful exercise of private regulation on land? - Correct
Answers Yes
What is the term for the money that was lent to a borrower in exchange for the promise
of future repayment? - Correct Answers Loan
Javier and Karina own property and have the right of survivorship. What type of
ownership to Javier and Karina share? - Correct Answers Joint Tenancy
What obligation is discharged when an eviction has occurred? - Correct Answers
Obligation to pay
Briana and Cadena are in a dispute on who owns a certain property. What type of
lawsuit should be filed? - Correct Answers Quiet title action
In which approach is the value of the land calculated independently of the structure? -
Correct Answers Cost approach
Giselle holds a lease from January 13, 2002 to December 15, 2002. On September 12
2002, what type of lease tenancy does Gisselle have? - Correct Answers Tenancy for
years
A seller has prepaid landscaper service fees for a 3-month duration. The prepayment
amount was $900. At the end of the 1st month, the property was sold to a buyer. What
is the prorated amount that will be debited to the buyer? - Correct Answers $600
When is there a seller's market? - Correct Answers fewer houses are for sale than there
are buyers to buy them
If the GRM of a property is 110 and the monthly potential gross income for that property
is $1,400, what is the estimated value of that property? - Correct Answers $154,000
Which of the following is a valid lease? - Correct Answers -Written
-Unwritten lease
