PSI EXAM TEST PREP QUESTIONS AND ANSWERS
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over
the northern part of the neighbor's land to gain access to the river. He pays the neighbor
$9,000 for the right of access and receives a deed. This is an easement - Answers-
appurtenant
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 the tenant
have? - Answers- Tenancy at will
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - Answers- his undivided interest passes to his heirs
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. The
doctrine of prior appropriation is MOST likely to be followed in states where - Answers-
water is scarce
A legal easement can be created by any of the following EXCEPT - Answers- merger of
the titles
Legal descriptions using the government survey system are NOT generally used in -
Answers- the original 13 states
Real property can be converted to personal property by - Answers- severance
A lawsuit for inverse condemnation may be brought by - Answers- homeowner
Building codes are - Answers- ordinances that specify construction standards
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - Answers- Conditional use permit or zoning variance.
An environmental impact statement typically describes the effects of a proposed project
on factors such as - Answers- public health and safety.
A deed restriction is applicable to the activities of - Answers- all owners, present and
future
, A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of - Answers- economic or external
obsolescence.
A competitive market analysis is MOST often used fo - Answers- setting a listing price.
When compiling a competitive market analysis, a broker would look for comparable
properties that - Answers- were located near the property being listed.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - Answers- Business district zoned for a six-story office building.
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 - Answers- more variety of loan programs available.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - Answers- demand immediate payment of the entire
note.
ccording 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 - Answers- prepayment
penalties and rebates.
Federal Truth-in-Lending laws are also known as - Answers- Regulation Z
Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? - Answers- 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 - Answers- an insurance company.
Which of the following real estate contracts is a service contract? - Answers- a listing
agreement
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - Answers- an agent to the broker and a subagent to the
principal.
The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked
for the key to show the home. The broker should inform the caller that - Answers- he is
no longer the listing agent.
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over
the northern part of the neighbor's land to gain access to the river. He pays the neighbor
$9,000 for the right of access and receives a deed. This is an easement - Answers-
appurtenant
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 the tenant
have? - Answers- Tenancy at will
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - Answers- his undivided interest passes to his heirs
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. The
doctrine of prior appropriation is MOST likely to be followed in states where - Answers-
water is scarce
A legal easement can be created by any of the following EXCEPT - Answers- merger of
the titles
Legal descriptions using the government survey system are NOT generally used in -
Answers- the original 13 states
Real property can be converted to personal property by - Answers- severance
A lawsuit for inverse condemnation may be brought by - Answers- homeowner
Building codes are - Answers- ordinances that specify construction standards
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - Answers- Conditional use permit or zoning variance.
An environmental impact statement typically describes the effects of a proposed project
on factors such as - Answers- public health and safety.
A deed restriction is applicable to the activities of - Answers- all owners, present and
future
, A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of - Answers- economic or external
obsolescence.
A competitive market analysis is MOST often used fo - Answers- setting a listing price.
When compiling a competitive market analysis, a broker would look for comparable
properties that - Answers- were located near the property being listed.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - Answers- Business district zoned for a six-story office building.
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 - Answers- more variety of loan programs available.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - Answers- demand immediate payment of the entire
note.
ccording 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 - Answers- prepayment
penalties and rebates.
Federal Truth-in-Lending laws are also known as - Answers- Regulation Z
Which of the following consumers would be able to derive the most benefit from a
reverse mortgage? - Answers- 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 - Answers- an insurance company.
Which of the following real estate contracts is a service contract? - Answers- a listing
agreement
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - Answers- an agent to the broker and a subagent to the
principal.
The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked
for the key to show the home. The broker should inform the caller that - Answers- he is
no longer the listing agent.
