PSI PSI Real Estate Principles and Practices 3

Question 1

Which of the following best describes 'police power' as it relates to real estate?

Accepted Answer

The government's authority to regulate property use for public welfare

Answer

Police power is the government's inherent authority to enact laws and regulations that restrict property use to protect the health, safety, and welfare of the public.

Question 2

What is 'escheat' in real property law?

Accepted Answer

The reversion of property to the state when an owner dies without heirs or a will

Answer

Escheat is the legal process by which a state claims ownership of property when the owner dies intestate with no legal heirs.

Question 3

A property owner builds a fence that extends two feet onto a neighbor's land. This is an example of:

Accepted Answer

An encroachment

Answer

An encroachment occurs when a structure or improvement physically intrudes onto an adjoining owner's property without permission.

Question 4

Which characteristic of value refers to the present worth of future benefits from property ownership?

Accepted Answer

Anticipation

Answer

Anticipation holds that value is created by the expectation of future benefits, such as income or personal use, that a property will provide.

Question 5

Which of the following is an example of an involuntary alienation of real property?

Accepted Answer

Losing property through foreclosure

Answer

Involuntary alienation is the transfer of property without the owner's consent, such as through foreclosure, eminent domain, or adverse possession.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI PSI Real Estate Principles and Practices 3