PSI National Exam-Questions with Correct Answers/ Verified/ 100% Pass
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Course
PSI NATIONAL REAL ESTATE
Institution
PSI NATIONAL REAL ESTATE
BOOT -️️What is money or property given to make up any difference in value or equity
between two properties in exchange?
1031 exchange -️️What is a tax deferred exchange of like kind property, where any additional
monies are taxable to receiver?
ACCELERATION CLAUSE -️️What is the cl...
PSI National Exam-Questions with Correct Answers/ Verified/ 100%
Pass
BOOT - ✔️✔️What is money or property given to make up any difference in value or equity
between two properties in exchange?
1031 exchange - ✔️✔️What is a tax deferred exchange of like kind property, where any additional
monies are taxable to receiver?
ACCELERATION CLAUSE - ✔️✔️What is the clause in a mortgage or deed of trust that can be
enforced to make the entire debt due immediately if the the borrower defaults on an installment
payment or other covenant.
ACCESSION - ✔️✔️What is the acquiring of real property as a result of annexation of fixtures or
accretion?
ACCRETION - ✔️✔️What is the increase or addition of land by deposit of sand or soil washed up
naturally from river, lake or sea?
ACCRUED DEPRECIATION - ✔️✔️What is the loss in value resulting from property's physical
deterioration, external depreciation and functional obsolescence?
ACKNOWLEDGEMENT - ✔️✔️What is done in front of a notary as a formal declaration?
Acre - ✔️✔️What is 43,560 square feet?
Actual Eviction - ✔️✔️What is the legal process that results in tenant being physically removed
from leased premises?
Actual Notice - ✔️✔️When a person expresses information or fact. Thant which is known, direct
knowledge?
AD Valorem Tax - ✔️✔️What is the tax levied according to value, generally used to refer to real
estate tax, also called the general tax.
,ARM - ✔️✔️Adjustable Rate Mortgage - Alternative Mortgage form where the interest rate is tied
to an indexed rate over the life of the loan, allowing interest rate risk to be shared by borrowers and
lenders
Adverse Possession - ✔️✔️A person takes possession & use of a property belonging to another.
Possession must be open, notorious, hostile & uninterrupted for a certain period of time.
Affidavit of Title - ✔️✔️A written statement, made under oath by a seller or guarantor of real
property and acknowledged by a notary public, in which the grantor 1.) identifies himself and
indicates martial status, 2.) certifies that since the examination of the title no defects have occurred
on the title, and 3.) certifies that he is in possession of the property. (401)
AGENCY - ✔️✔️A relationship in which one party (the principal) authorizes another party (the
agent) to act as the principal's representative in dealing with third parties.
Agent - ✔️✔️A person who acts or does business for another.
Alienation - ✔️✔️What is the act of transferring property to another. May be voluntary (gift or sale)
or involuntary (eminent domain or adverse possession).
Alienation Clause - ✔️✔️Also know as "due on sale" clause permits lender to declare balance of
loan immediately due if property is sold; prevents loan assumption without lender approval
Amendment - ✔️✔️A change to the existing content of a contract (words added or deleted). Must
be initialed by all parties.
ADA - ✔️✔️American with Disabilities Act addresses rights of individuals with disabilities in
employment and public accommodations.
Amortized Loan - ✔️✔️A loan in which the principal as well as the interest is payable in monthly or
other periodic installments over the term of the loan.
Annexation - ✔️✔️Change personal property to real property, such as mixing sand, stone and
cement, and making a sidewalk.
,Anticipation - ✔️✔️Appraisal principle that holds that value can increase or decrease based on the
expectation that some future event may or may not occur.
Anti Trust Law - ✔️✔️designed to prevent companies from fixing prices, sharing markets, and
gaining unfair monopoly advantages.
Appraisal - ✔️✔️An estimate of the quantity, quality, or value of something. The process through
which conclusions of property value are obtained; also refers to the report that sets forth the
process of estimation and conclusion of value.
Appurtenance - ✔️✔️What is "runs with the land" ? s a right or privilege associated with the
property although not necessarily a part of it. ( ie parking space, easement) irrevocable
Area Preference - ✔️✔️Peoples desire for one area over another. location location location.
Four Economic Characteristics of Real Estate - ✔️✔️Scarcity, Improvements, Permanence, area
preference/location.
Three Physical Characteristics of real Estate - ✔️✔️Immobility, indestructibility, Uniqueness
Bundle of Rights - ✔️✔️What is PCEED, possession, control, enjoyment, exclusion and disposition.
Asbestos - ✔️✔️once used in insulation and other materials that can cause respiratory diseases.
assemblage - ✔️✔️The combining of two or more adjoining lots.
Assessed Value - ✔️✔️What is the value set on a property for taxation purposes.
Assessment - ✔️✔️Tax charge or levy according to established rates.
Assignment - ✔️✔️What is the transfer in writing of interest in a mortgage or lease?
, Attachment - ✔️✔️Items of personal property that can become real property. ie: construction
materials.
Balloon Payment - ✔️✔️The remaining balance, at maturity, on a loan that has not been completely
repaid through periodic payments. Once paid, the outstanding balance is zero. Partially amortized
loan.
Bargain & Sale Deed - ✔️✔️A deed that contains no stated warranties but implies that the grantor
has the legal authority to transfer title
Base line - ✔️✔️Imaginary line running east and west used by surveyors as a reference in describing
land under the rectangular survey system
Benchmarks - ✔️✔️Permanent reference marks or established points used by surveyors in
measuring differences in elevation. Metes & Bound
BPO - ✔️✔️What is a broker price opinion, drive by value of real estate.
Brownfields - ✔️✔️Defunct, derelict, or abandoned commercial or industrial sites; many have toxic
wastes.
Buffer Zone - ✔️✔️A tract of land between two differently zoned areas. For example, a city might
position a park between a commercial and residential district.
Capitalization - ✔️✔️A mathematical process for estimating the value of a property using a proper
rate of return on the investment and the annual net operating incomes expected to be produced by
the property. The formula is expressed as: Income ÷ Rate = Value.
Capitalization Rate - ✔️✔️The rate of return a property will produce on the owner's investment.
Capping - ✔️✔️Process of laying two to four feet of soil over the top of a landfill site and planting
grass to enhance aesthetic value and to prevent erosion
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