PSI PA REAL ESTATE EXAM
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✔️✔️anticipation
Even after an offer has accepted and is binding, the buyer and seller may still choose to
sign mutual release papers rather then proceed to closing. Which of the following
circumstances would NOT give either party a justifiable reason to insist on a mutual
release? - ✔️✔️the buyer finds a better property for better terms
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
Severance - ✔️✔️the performance of turning real property into personal property
What is the main difference between tendency in common and joint tendency is that
with tendency in common, when a co-owner dies? - ✔️✔️the undivided interest passes
to his heirs
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 this tenant
have? - ✔️✔️Tenancy at will
Legal description using the government survey system are not generally used in? -
✔️✔️the original 13 states
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called? - ✔️✔️a
mechanic's lien
Building codes are? - ✔️✔️ordinances that specify construction standards
An environmental impact statement (IES) - ✔️✔️projects the impact on environment or
proposed project
A lawsuit for inverse condemnation may be brought by - ✔️✔️the homeowner
, A deed restriction is applicable to the activities of? - ✔️✔️all owners present and future
A land owner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. What would most likely be used to obtain permission for this
store? - ✔️✔️Conditional use permit or zoning variance
When preparing a market data estimate of value, what category of adjustment is NOT
essential? - ✔️✔️the original cost of the building
Depreciation is calculated based on the? - ✔️✔️cost of the building only
A competitive market analysis is MOST often used for? - ✔️✔️setting a listing price
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest? - ✔️✔️a competitive market analysis to determine the
property's value
A formal appraisal will ALWAYS be REQUIRED when the - ✔️✔️lender wants to sell
the mortgage to the secondary market
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ✔️✔️Business district zoned for a six-story office building
Federal Truth-in-lending laws are also known as? - ✔️✔️regulation z.
Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? - ✔️✔️A couple in their late 60's who need to tap their home equity
to help cover their expenses but do not want to sell their house.
The FHA functions MOST like? - ✔️✔️an insurance company
According to the Truth-in-lending act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ✔️✔️prepayment penalties
and rebates
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to? - ✔️✔️demand immediate payment of the entire
note
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT? - ✔️✔️more variety loan programs available
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✔️✔️anticipation
Even after an offer has accepted and is binding, the buyer and seller may still choose to
sign mutual release papers rather then proceed to closing. Which of the following
circumstances would NOT give either party a justifiable reason to insist on a mutual
release? - ✔️✔️the buyer finds a better property for better terms
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
Severance - ✔️✔️the performance of turning real property into personal property
What is the main difference between tendency in common and joint tendency is that
with tendency in common, when a co-owner dies? - ✔️✔️the undivided interest passes
to his heirs
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 this tenant
have? - ✔️✔️Tenancy at will
Legal description using the government survey system are not generally used in? -
✔️✔️the original 13 states
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called? - ✔️✔️a
mechanic's lien
Building codes are? - ✔️✔️ordinances that specify construction standards
An environmental impact statement (IES) - ✔️✔️projects the impact on environment or
proposed project
A lawsuit for inverse condemnation may be brought by - ✔️✔️the homeowner
, A deed restriction is applicable to the activities of? - ✔️✔️all owners present and future
A land owner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. What would most likely be used to obtain permission for this
store? - ✔️✔️Conditional use permit or zoning variance
When preparing a market data estimate of value, what category of adjustment is NOT
essential? - ✔️✔️the original cost of the building
Depreciation is calculated based on the? - ✔️✔️cost of the building only
A competitive market analysis is MOST often used for? - ✔️✔️setting a listing price
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest? - ✔️✔️a competitive market analysis to determine the
property's value
A formal appraisal will ALWAYS be REQUIRED when the - ✔️✔️lender wants to sell
the mortgage to the secondary market
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ✔️✔️Business district zoned for a six-story office building
Federal Truth-in-lending laws are also known as? - ✔️✔️regulation z.
Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? - ✔️✔️A couple in their late 60's who need to tap their home equity
to help cover their expenses but do not want to sell their house.
The FHA functions MOST like? - ✔️✔️an insurance company
According to the Truth-in-lending act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ✔️✔️prepayment penalties
and rebates
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to? - ✔️✔️demand immediate payment of the entire
note
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT? - ✔️✔️more variety loan programs available
