PSI National Exam for Real Estate - Questions and Answers (Complete Solutions)

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PSI National Exam for Real Estate - Questions and Answers (Complete Solutions) An appurtenant easement that arises when an owner has no access to the street except across his neighbor's land is call... ed: easement by necessity The state's authority to enact and enforce police powers is passed on the municipalities through: enabling acts An easement appurtenant involves at least two tracts of land The period for redemption of property sold for taxes in Louisiana is a minimum of 3 years Real property may be encumbered by conditions or restrictions that are written into the deed. These encumbrances are often called: CCR An unpaid swimming pool lien placed by the installer would be an example of involuntary specific lien Which is the LEAST acceptable form of property description? street address What is the BEST feature of the metes and bounds method of describing land? It can be used to describe land of any shape. The distance between township lines is 6 miles Townships are created by range lines and township lines A township has a theoretical area of 36 square miles Every fourth township line serves as a correction line A description that reads "Lot 5, Block B, Wildwood Heights" would be which type of description? lot, block and tract A section is one square mile and 640 acres How many sections are in a township? 36 Given a description: "the SW ¼ of the NE ¼ of the SE ¼ of Section 16". Which quarter of Section 16 is this land in? the southeast Meridians and range lines both run parallel to each other and north-south How many square feet are there in an acre? 43,560 The symbol T3NR2E would be used in a rectangular survey description How many acres are there in a section? 640 If a property is in a good location we say it has positive situs An estimate of value which is NOT a formal appraisal but uses the same principles and many of the same methods as the sales comparison approach is a competitive market analysis or CMA The most probable price in terms of money which a property should bring in a competitive and open market is: market value True or False Transferability refers to the ability to transfer the title from the seller to the buyer. True The desire to purchase along with the ability is called Demand The principle that states that the value of an inferior property is increased by being near a better property, and the value of the better property is decreased by being near an inferior property, is called Progression and regression True or False Generally, the greater the supply, the lower the demand. True The theory that there is one particular use for each property that will bring the highest value, is called highest and best use The principle of value that is the basis for subdivision restrictions is Conformity The additional value between two similar income properties that is due to the land or the location is called surplus productivity The process of determining the worth of something is called: Valuation The single most important thing in determining the value of a property is Situs Things that are near a property and affect the value of the property are called Externalities The value that one particular component of a structure contributes to the total value is Contribution The four factors of production are: capital, management, labor, and land The principle of value that is the basis for the Income Approach to value is Anticipation The form in which a residential appraisal is usually done is called the: Checksheet If two lots are combined resulting in an increase in the value of the lots, this is called: plottage increment True or False Commercial appraisals are usually written as a narrative report. True True or False Reproduction cost is usually much higher than replacement cost. True The method of arriving at a value by calculating the cost to build an exact replica of the building is called reproduction cost The method of arriving at a value by estimating the cost to build a similar structure at today's prices is: replacement cost True or False You cannot use the Cost Approach to appraise land. True When two or more lots are combined to form one larger parcel, this is called: Assemblage Which of the following methods of estimating cost is the most accurate and the most time consuming? quantity survey method When an appraiser uses more than one of the approaches to value on a single property, the process by which he combines the results from each is called: Reconciliation A type of depreciation that results from outdated design or technology is called functional depreciation True or False Land is never depreciated True If your property is located next to a toxic waste dump, you might expect to have which of the following types of depreciation? external depreciation The period of time over which a property is considered to be useful is the: economic life. An investor's rate of return on his investment is called the: capitalization rate The Income Approach is based on the principle of Anticipation The annual gross income minus all operating expenses for the year is the net annual income How old a property "looks", that is, the age based on what condition the property is in is called: effective age A type of depreciation that results from normal wear and tear and is always physical depreciation True or False Incurable depreciation is a loss in value because of things that would cost more to repair than the resulting increase in value. True If the cost of repairs is greater than the resulting increase in value, then we say the depreciation is Incurable Which method of determining value is generally the best one and the most used? Sales Comparison True or False The Sales Comparison Approach is not normally used for properties not sold on the open market such as churches. True The principle which states that the difference in value between two similar properties is attributed to the location of the land is surplus productivity When depreciating a property you would normally depreciate the building only The four determinants of value are demand, utility scarcity, transferability The type of depreciation which is NEVER curable is called External When appraising a special purpose building such as a school or church, the appraiser would most likely have to use which approach to value? Cost [Show More]

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