SC PSI Real Estate Exam Prep Questions and Answers

SC PSI Real Estate Exam Prep Questions and Answers Which of the following describes the term appreciation? - Correct Answer ️️ -An increase in the value of property When ownership of a mortgage is transferred from one company or individual to another, it is called: - Correct Answer ️️ -An assignment A mortgage loan which requires the remaining balance be paid at a specific point in time is called a: - Correct Answer ️️ -Balloon mortgage The following reason accounts for why bridge loans are not used much anymore: - Correct Answer ️️ -More second mortgage lenders now will lend at a high to loan value. Sellers would rather accept offers from buyers who have already sold their property. A title which is free of liens or legal questions as to ownership of the property is called a_______________title. - Correct Answer ️️ -Clear title What is the collateral in a home loan? - Correct Answer ️️ -The property itself The adjustment date on adjustable rate mortgage is: - Correct Answer ️️ -The date the interest rate changes What is the deposit made by potential buyer to show he is serious about buying a house called? - Correct Answer ️️ -Earnest money deposit A right-of-way which gives persons other than the owner access to our over a property is known as an: - Correct Answer ️️ -Easement Which best describes a subdivision? - Correct Answer ️️ -A housing development created by dividing a tract of land into individual lots When someone contributes to the construction or rehabilitation of a property with labor or services rather than cash, that contribution is called: - Correct Answer ️️ -Sweat equity A two-step mortgage is defined as: - Correct Answer ️️ -An adjustable rate mortgage with one interest rate for the first five or seven years and a different rate for the remainder of the term A legal document evidencing a person's right to or ownership of a property is called a: - Correct Answer ️️ -Title If you were buying a house that include furnishing, you would receive a written document transferring title to the personal property. This document is called a: - Correct Answer ️️ -Bill of sale An oral or written agreement that is binding in a court of law is called a: - Correct Answer ️️ -Contract The part of the purchase price of a property that the buyer pays in cash and does not finance with the mortgage is called the: - Correct Answer ️️ -Down payment A female named in a will to administer an estate is called an: - Correct Answer ️️ - Executrix The greatest possible interest a person can have in real estate is called: - Correct Answer ️️ -Fee simple Required for properties located in federally designated flood areas, this type of insurance compensates for physical property damage resulting from flooding. It is called - Correct Answer ️️ -Flood insurance The following is true of a government loan: - Correct Answer ️️ -Guaranteed by the Department of veteran affairs. (VA) Guaranteed by the rural housing service. (RHS) It is insured by the Federal housing administration. (FHA) The person conveying an interest in real property is called: - Correct Answer ️️ -The grantor Insurance that covers in the event of physical damage to property from fire, wind, vandalism, or other hazards is called: - Correct Answer ️️ -Hazard insurance A liquid asset is: - Correct Answer ️️ -A cash asset or an asset easily turned into cash Another term for the lender in a mortgage agreement is the: - Correct Answer ️️ - Mortgagee If you are buying a house and asking the seller to provide all or part of the financing, you're asking for_____________ financing. - Correct Answer ️️ -Owner A point is: - Correct Answer ️️ -1% of the amount of the mortgage What does a power of attorney grant someone? - Correct Answer ️️ -Complete or limited authority on behalf of someone else The principal is: - Correct Answer ️️ -The amount borrowed or remaining unpaid. Part of monthly payment that reduces the remaining balance of a mortgage. A promissory note is: - Correct Answer ️️ -A written pro