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PSI National Real Estate Salesperson Practice Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is "alienation" in real estate?✔✔ Alienation refers to the transfer of ownership or interest in real property from one party to another, either voluntarily or involuntarily.
What is "community property"?✔✔ Community property is a legal term for property acquired by a married couple during their marriage, where both spouses have equal ownership rights.
What is a "mortgage contingency clause"?✔✔ A mortgage contingency clause allows a buyer to back out of a contract if they are unable to secure financing within a specified time frame.
What is the "right of survivorship" in joint tenancy?✔✔ The right of survivorship means that when one joint tenant dies, their share of the property automatically passes to the surviving joint tenants. 1 / 3
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What is "appraisal" in real estate?✔✔ An appraisal is an unbiased evaluation of a property's value, usually conducted by a licensed appraiser, based on factors such as location, condition, and comparable sales.
What is the purpose of "zoning laws" in real estate?✔✔ Zoning laws are regulations that govern land use in a particular area, determining how properties can be used (e.g., residential, commercial, industrial) to promote organized community growth.
What is the "FHA loan"?✔✔ An FHA loan is a government-backed mortgage designed to help low- to moderate-income individuals or families buy homes, offering lower down payments and easier qualifying criteria.
What is "escrow" in real estate transactions?✔✔ Escrow refers to a neutral third party holding funds, documents, or instructions until the terms of the real estate transaction are fulfilled.
What is a "short sale"? 2 / 3
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✔✔ A short sale occurs when a homeowner sells a property for less than the amount owed on the mortgage, with the lender's approval.
What is "eminent domain" in real estate?✔✔ Eminent domain allows the government to take private property for public use, such as building roads or schools, with compensation provided to the owner.
What is "title insurance"?✔✔ Title insurance protects property buyers and lenders from financial loss due to defects in the property's title, such as fraud, errors, or undiscovered liens.
What is the purpose of a "home inspection" in real estate transactions?✔✔ A home inspection is conducted to assess the condition of a property, identifying any necessary repairs or maintenance issues that may affect the buyer's decision.
What is "due diligence" in a real estate transaction?✔✔ Due diligence refers to the process by which a buyer investigates a property before finalizing the purchase, checking for potential issues like structural defects or zoning restrictions.
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