PSI REAL ESTATE EXAM (MD STATE PORTION) QUESTIONS AND ANSWERS
Severance - (ANSWER)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? - (ANSWER)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? - (ANSWER)Tenancy at
will
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? - (ANSWER)prior appropriation
Legal description using the government survey system are not generally used in? - (ANSWER)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? - (ANSWER)a mechanic's lien
Building codes are? - (ANSWER)ordinances that specify construction standards
An environmental impact statement (IES) - (ANSWER)projects the impact on environment or proposed
project
A lawsuit for inverse condemnation may be brought by - (ANSWER)the homeowner
A deed restriction is applicable to the activities of? - (ANSWER)all owners present and future
, PSI REAL ESTATE EXAM (MD STATE PORTION) QUESTIONS AND ANSWERS
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? -
(ANSWER)Conditional use permit or zoning variance
When preparing a market data estimate of value, what category of adjustment is NOT essential? -
(ANSWER)the original cost of the building
Depreciation is calculated based on the? - (ANSWER)cost of the building only
A competitive market analysis is MOST often used for? - (ANSWER)setting a listing price
A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson
should suggest? - (ANSWER)a competitive market analysis to determine the property's value
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 - (ANSWER)anticipation
A formal appraisal will ALWAYS be REQUIRED when the - (ANSWER)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? -
(ANSWER)Business district zoned for a six-story office building
Federal Truth-in-lending laws are also known as? - (ANSWER)regulation z.
Which of the following consumers would be able to derive the most benefit from a reverse mortgage? -
(ANSWER)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? - (ANSWER)an insurance company
Severance - (ANSWER)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? - (ANSWER)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? - (ANSWER)Tenancy at
will
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? - (ANSWER)prior appropriation
Legal description using the government survey system are not generally used in? - (ANSWER)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? - (ANSWER)a mechanic's lien
Building codes are? - (ANSWER)ordinances that specify construction standards
An environmental impact statement (IES) - (ANSWER)projects the impact on environment or proposed
project
A lawsuit for inverse condemnation may be brought by - (ANSWER)the homeowner
A deed restriction is applicable to the activities of? - (ANSWER)all owners present and future
, PSI REAL ESTATE EXAM (MD STATE PORTION) QUESTIONS AND ANSWERS
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? -
(ANSWER)Conditional use permit or zoning variance
When preparing a market data estimate of value, what category of adjustment is NOT essential? -
(ANSWER)the original cost of the building
Depreciation is calculated based on the? - (ANSWER)cost of the building only
A competitive market analysis is MOST often used for? - (ANSWER)setting a listing price
A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson
should suggest? - (ANSWER)a competitive market analysis to determine the property's value
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 - (ANSWER)anticipation
A formal appraisal will ALWAYS be REQUIRED when the - (ANSWER)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? -
(ANSWER)Business district zoned for a six-story office building
Federal Truth-in-lending laws are also known as? - (ANSWER)regulation z.
Which of the following consumers would be able to derive the most benefit from a reverse mortgage? -
(ANSWER)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? - (ANSWER)an insurance company
