PSI PSI Real Estate Principles and Practices 1 — Questions and Answers
Question 1: Which type of property ownership gives two or more people equal, undivided interest with the right of survivorship?
- Tenancy in common
- Joint tenancy (Correct answer)
- Tenancy by the entirety
- Community property
Correct answer: Joint tenancy
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:
- Quitclaim deed
- Bargain and sale deed
- General warranty deed (Correct answer)
- Special warranty deed
Correct answer: General warranty deed
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?
- Escheat
- Eminent domain (Correct answer)
- Police power
- Adverse possession
Correct answer: Eminent domain
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?
- Month-to-month tenancy
- Estate for years
- Fee simple absolute (Correct answer)
- Tenancy at sufferance
Correct answer: Fee simple absolute
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:
- Easement
- Lien (Correct answer)
- Encroachment
- Restriction
Correct answer: Lien
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.
Question 6: Which form of legal description uses a reference point, base lines, and principal meridians to identify land?
- Lot and block
- Metes and bounds
- Rectangular survey (Correct answer)
- Plat map
Correct answer: Rectangular survey
The rectangular (government) survey system divides land using principal meridians, base lines, townships, and ranges to create a grid-based legal description.
PSI PSI Real Estate Principles and Practices 1
Which type of property ownership gives two or more people equal, undivided interest with the right of survivorship?