PSI PSI Real Estate Principles and Practices 1

Question 1

Which type of property ownership gives two or more people equal, undivided interest with the right of survivorship?

Accepted Answer

Joint tenancy

Answer

Joint tenancy includes the right of survivorship, meaning a deceased owner's share automatically passes to the surviving co-owners.

Question 2

A deed that contains the greatest number of warranties and provides the most protection to a buyer is called a:

Accepted Answer

General warranty deed

Answer

A general warranty deed provides the broadest protection, with the grantor warranting title against all claims, even those arising before the grantor owned the property.

Question 3

What term describes the process by which the government acquires private property for public use with just compensation?

Accepted Answer

Eminent domain

Answer

Eminent domain is the government's constitutional power to take private property for public use, provided just compensation is paid to the owner.

Question 4

Which of the following is an example of a freehold estate?

Accepted Answer

Fee simple absolute

Answer

A fee simple absolute is a freehold estate because it represents ownership of real property for an indefinite duration.

Question 5

An encumbrance that makes property security for the repayment of a debt is called a:

Accepted Answer

Lien

Answer

A lien is a financial encumbrance that gives a creditor the right to have a debt satisfied from the property if the debt is not paid.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI PSI Real Estate Principles and Practices 1