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

The right of the government to take property for public use

Answer

The right of owners to use property as they wish

Answer

The ability of lenders to foreclose on defaulted loans

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

The transfer of property through a will

Answer

A lender's right to take property upon loan default

Answer

A government taking of private property for public use

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 easement

Answer

A license

Answer

A dedication

Question 4

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

Accepted Answer

Anticipation

Answer

Scarcity

Answer

Desire

Answer

Utility

Question 5

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

Accepted Answer

Losing property through foreclosure

Answer

Selling a home through a real estate agent

Answer

Gifting property to a family member

Answer

Transferring property via a deed

Question 6

Under the rectangular survey system, a township contains how many sections?

Accepted Answer

36

Answer

16

Answer

48

Answer

64