©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM
PSI National Exam Practice Study Guide
with Complete Solutions
BOOT - Answer✔️✔️-What is money or property given to make up any difference
in value or equity between two properties in exchange?
1031 exchange - Answer✔️✔️-What is a tax deferred exchange of like kind
property, where any additional monies are taxable to receiver?
ACCELERATION CLAUSE - Answer✔️✔️-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 - Answer✔️✔️-What is the acquiring of real property as a result of
annexation of fixtures or accretion?
ACCRETION - Answer✔️✔️-What is the increase or addition of land by deposit of
sand or soil washed up naturally from river, lake or sea?
ACCRUED DEPRECIATION - Answer✔️✔️-What is the loss in value resulting
from property's physical deterioration, external depreciation and functional
obsolescence?
ACKNOWLEDGEMENT - Answer✔️✔️-What is done in front of a notary as a
formal declaration?
Acre - Answer✔️✔️-What is 43,560 square feet?
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,©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM
Actual Eviction - Answer✔️✔️-What is the legal process that results in tenant being
physically removed from leased premises?
Actual Notice - Answer✔️✔️-When a person expresses information or fact. Thant
which is known, direct knowledge?
AD Valorem Tax - Answer✔️✔️-What is the tax levied according to value,
generally used to refer to real estate tax, also called the general tax.
ARM - Answer✔️✔️-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 - Answer✔️✔️-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 - Answer✔️✔️-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 - Answer✔️✔️-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 - Answer✔️✔️-A person who acts or does business for another.
Alienation - Answer✔️✔️-What is the act of transferring property to another. May
be voluntary (gift or sale) or involuntary (eminent domain or adverse possession).
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,©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM
Alienation Clause - Answer✔️✔️-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 - Answer✔️✔️-A change to the existing content of a contract (words
added or deleted). Must be initialed by all parties.
ADA - Answer✔️✔️-American with Disabilities Act addresses rights of individuals
with disabilities in employment and public accommodations.
Amortized Loan - Answer✔️✔️-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 - Answer✔️✔️-Change personal property to real property, such as
mixing sand, stone and cement, and making a sidewalk.
Anticipation - Answer✔️✔️-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 - Answer✔️✔️-designed to prevent companies from fixing prices,
sharing markets, and gaining unfair monopoly advantages.
Appraisal - Answer✔️✔️-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 - Answer✔️✔️-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 - Answer✔️✔️-Peoples desire for one area over another. location
location location.
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, ©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM
Four Economic Characteristics of Real Estate - Answer✔️✔️-Scarcity,
Improvements, Permanence, area preference/location.
Three Physical Characteristics of real Estate - Answer✔️✔️-Immobility,
indestructibility, Uniqueness
Bundle of Rights - Answer✔️✔️-What is PCEED, possession, control, enjoyment,
exclusion and disposition.
Asbestos - Answer✔️✔️-once used in insulation and other materials that can cause
respiratory diseases.
assemblage - Answer✔️✔️-The combining of two or more adjoining lots.
Assessed Value - Answer✔️✔️-What is the value set on a property for taxation
purposes.
Assessment - Answer✔️✔️-Tax charge or levy according to established rates.
Assignment - Answer✔️✔️-What is the transfer in writing of interest in a mortgage
or lease?
Attachment - Answer✔️✔️-Items of personal property that can become real
property. ie: construction materials.
Balloon Payment - Answer✔️✔️-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 - Answer✔️✔️-A deed that contains no stated warranties but
implies that the grantor has the legal authority to transfer title
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