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PSI National Real Estate Questions and Answers | Latest Version | 2025/2026 | Complete & Verified
What is the definition of "marketable title" in real estate?✔✔ Marketable title is a title that is free from significant defects, claims, or encumbrances, ensuring the buyer can take full ownership without risk.
What is the role of a "real estate agent"?✔✔ A real estate agent assists buyers and sellers in transactions by providing advice, handling negotiations, and helping with paperwork.
What is the purpose of a "preliminary title report"?✔✔ A preliminary title report is a document issued before a sale that outlines the legal status of the property, including any liens, encumbrances, or claims.
What is a "comparative market analysis" (CMA)?✔✔ A comparative market analysis is a method used by real estate agents to estimate a property's market value by comparing it to similar properties recently sold in the same area.
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What is the "right of survivorship" in a joint tenancy?✔✔ The right of survivorship means that if one joint tenant dies, their share of the property automatically passes to the surviving joint tenants.
What does "equity" mean in real estate?✔✔ Equity is the difference between the current market value of a property and the amount still owed on any mortgages or liens attached to the property.
What is an "amortized loan"?✔✔ An amortized loan is a type of loan where payments are made over a set period, with each payment partially reducing both the principal and the interest.
What is a "deed of trust"?✔✔ A deed of trust is a legal document that secures a loan by transferring the title of the property to a trustee, who holds it until the loan is repaid.
What does "contingent" mean in real estate contracts?✔✔ Contingent means that the completion of the contract is dependent on certain conditions being met, such as financing or a satisfactory home inspection. 2 / 3
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What is "escrow" in real estate transactions?✔✔ Escrow is a neutral third-party service that holds funds, documents, or property during a real estate transaction until all terms of the agreement are satisfied.
What is the difference between "personal property" and "real property"?✔✔ Personal property refers to movable items, while real property refers to land and any permanent structures attached to it, such as buildings.
What is the purpose of a "home inspection"?✔✔ A home inspection is an evaluation of a property’s condition, typically conducted before purchase, to identify potential issues or defects.
What is "zoning" in real estate?✔✔ Zoning refers to local government regulations that define how property in specific geographic zones can be used, such as residential, commercial, or industrial purposes.
What is a "quitclaim deed"?
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