PSI REAL ESTATE EXAM 1 COMPLETE GUIDE WITH 100% RATED
250 QUESTIONS AND CORRECT ANSWERS| GRADED A+ | 2025
LATEST VERSION
Which of the following would NOT be considered Real Property?
1. Mineral Rights
2. A Leasehold Estate
3. Fixtures
4. Air - (CORRECT ANSWER)2. A Leasehold Estate
The servient estate in an easement appurtenant is the property
1. owned by the landlord
2. on which the easement is placed
3. owned by the tenant
4. that benefits from the easement - (CORRECT ANSWER)2. on which the easement is placed
Which of the following statements concerning encumbrances is NOT true
1. All encumbrances are liens
2. All liens are encumbrances
3. Restrictions beneficial to the grantee are encumbrances
4. An easement is a physical encumbrance - (CORRECT ANSWER)1. All encumbrances are
liens
Which of the following is not a specific lien?
,1. Mortgage Lien
2. State inheritance tax
3. Real Estate taxes
4. Mechanic's Lien - (CORRECT ANSWER)2. State Inheritance tax
You have entered into a lease that requires you to pay 20% of the owners expenses. Your lease
would be an example of
1. variable lease
2. net lease
3. percentage lease
4. gross lease - (CORRECT ANSWER)2. Net lease
If a husband and wife own an apartment building and the husband owns an undivided three-
fourths interest and the wife owns a one-fourth interest, what type of tenancy exists?
1. Leasehold Estate
2. Joint tenancy
3. Tenancy in common
4. Tenancy by the entirety - (CORRECT ANSWER)3. Tenancy in common
The highest form of ownership a person may hold in Real Estate is?
1. Life Estate
2. Fee Simple
3. Legal life estate
4. base fee - (CORRECT ANSWER)2. Fee simple
,Two unrelated people own a three-unit apartment building as tenants in common. One wants to
sell but the others do not. Which of the following statements describes the legal rights of the
party who wants to sell?
1. The party may request a court to partition the building
2. The party may require the co-owner to sell
3. The party may record a lis penden on the property
4. The party may refinance the mortgage in his or her own name, thus eliminating the co-owner's
interest in the property - (CORRECT ANSWER)1. The party may request a court to partition the
building
Your aunt died intestate and you inherited her house. The way in which you acquired the title to
her house is by:
1. curtsey
2. descent
3. escheat
4. laches - (CORRECT ANSWER)2. descent
Which of the following statements does NOT correctly describe a legal life estate?
1. During his or her life estate the life tenant is generally answerable to the holder of the future
interest.
2. The life tenant may not commit any acts that would permanently injure the property.
3. There may be a reversionary interest.
4. There may be a remainder interest. - (CORRECT ANSWER)1. During his or her life estate the
life tenant is generally answerable to the holder of the future interest.
, Which of the following is NOT a leasehold estate?
1. An estate for years
2. Periodic estate
3. Time-Share estate
4. Estate from year to year - (CORRECT ANSWER)3. A Time-Share estate
You are married and own a house under a form of ownership that prohibits you from selling it
without the signature of your spouse. Your form of ownership is LEAST likely to be?
1. in severalty
2. a joint tenancy
3. tenancy in common
4. tenancy by the entirety - (CORRECT ANSWER)1. in severalty
A state wants to build a publicly owned convention center to attract private development in its
largest city. Can the state use eminent domain to acquire the land?
1. No, because private investments aren't allowed.
2. Yes, if just compensation is paid to the owners of the land.
3. No, because eminent domain can only be used for highway expansion.
4. Yes, if the owners hold fee-simple interest in the land. - (CORRECT ANSWER)2. Yes, if just
compensation is paid to the owners of the land.
Which of the following grants zoning authority to municipal governments?
1. Eminent domain
2. State enabling acts
250 QUESTIONS AND CORRECT ANSWERS| GRADED A+ | 2025
LATEST VERSION
Which of the following would NOT be considered Real Property?
1. Mineral Rights
2. A Leasehold Estate
3. Fixtures
4. Air - (CORRECT ANSWER)2. A Leasehold Estate
The servient estate in an easement appurtenant is the property
1. owned by the landlord
2. on which the easement is placed
3. owned by the tenant
4. that benefits from the easement - (CORRECT ANSWER)2. on which the easement is placed
Which of the following statements concerning encumbrances is NOT true
1. All encumbrances are liens
2. All liens are encumbrances
3. Restrictions beneficial to the grantee are encumbrances
4. An easement is a physical encumbrance - (CORRECT ANSWER)1. All encumbrances are
liens
Which of the following is not a specific lien?
,1. Mortgage Lien
2. State inheritance tax
3. Real Estate taxes
4. Mechanic's Lien - (CORRECT ANSWER)2. State Inheritance tax
You have entered into a lease that requires you to pay 20% of the owners expenses. Your lease
would be an example of
1. variable lease
2. net lease
3. percentage lease
4. gross lease - (CORRECT ANSWER)2. Net lease
If a husband and wife own an apartment building and the husband owns an undivided three-
fourths interest and the wife owns a one-fourth interest, what type of tenancy exists?
1. Leasehold Estate
2. Joint tenancy
3. Tenancy in common
4. Tenancy by the entirety - (CORRECT ANSWER)3. Tenancy in common
The highest form of ownership a person may hold in Real Estate is?
1. Life Estate
2. Fee Simple
3. Legal life estate
4. base fee - (CORRECT ANSWER)2. Fee simple
,Two unrelated people own a three-unit apartment building as tenants in common. One wants to
sell but the others do not. Which of the following statements describes the legal rights of the
party who wants to sell?
1. The party may request a court to partition the building
2. The party may require the co-owner to sell
3. The party may record a lis penden on the property
4. The party may refinance the mortgage in his or her own name, thus eliminating the co-owner's
interest in the property - (CORRECT ANSWER)1. The party may request a court to partition the
building
Your aunt died intestate and you inherited her house. The way in which you acquired the title to
her house is by:
1. curtsey
2. descent
3. escheat
4. laches - (CORRECT ANSWER)2. descent
Which of the following statements does NOT correctly describe a legal life estate?
1. During his or her life estate the life tenant is generally answerable to the holder of the future
interest.
2. The life tenant may not commit any acts that would permanently injure the property.
3. There may be a reversionary interest.
4. There may be a remainder interest. - (CORRECT ANSWER)1. During his or her life estate the
life tenant is generally answerable to the holder of the future interest.
, Which of the following is NOT a leasehold estate?
1. An estate for years
2. Periodic estate
3. Time-Share estate
4. Estate from year to year - (CORRECT ANSWER)3. A Time-Share estate
You are married and own a house under a form of ownership that prohibits you from selling it
without the signature of your spouse. Your form of ownership is LEAST likely to be?
1. in severalty
2. a joint tenancy
3. tenancy in common
4. tenancy by the entirety - (CORRECT ANSWER)1. in severalty
A state wants to build a publicly owned convention center to attract private development in its
largest city. Can the state use eminent domain to acquire the land?
1. No, because private investments aren't allowed.
2. Yes, if just compensation is paid to the owners of the land.
3. No, because eminent domain can only be used for highway expansion.
4. Yes, if the owners hold fee-simple interest in the land. - (CORRECT ANSWER)2. Yes, if just
compensation is paid to the owners of the land.
Which of the following grants zoning authority to municipal governments?
1. Eminent domain
2. State enabling acts
