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SC PSI Real Estate Exam Prep Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of a real estate appraisal?✔✔ To estimate the market value of a property based on various factors such as location, condition, and comparable sales.
What does the term "eminent domain" refer to in real estate?✔✔ The right of the government to take private property for public use, with compensation provided to the owner.
What is a "quitclaim deed"?✔✔ A deed used to transfer ownership of a property without guaranteeing the title is free of encumbrances or claims.
What is the definition of "escrow" in a real estate transaction?✔✔ A neutral third-party service that holds funds or documents until all conditions of the transaction are met and the sale is completed.
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What does "joint tenancy" mean in real estate ownership?✔✔ A form of property ownership where two or more individuals hold equal shares with the right of survivorship.
What is a "leasehold estate"?✔✔ A type of property interest where the tenant holds rights to use and occupy the property for a specified period under a lease agreement.
What is the difference between a "deed of trust" and a "mortgage"?✔✔ A deed of trust involves a third-party trustee who holds the legal title until the debt is paid, while a mortgage involves a direct agreement between the lender and borrower.
What does the term "title search" mean?✔✔ The process of examining public records to determine the legal ownership of a property and to identify any encumbrances, such as liens or claims.
What is a "real estate broker"?✔✔ A professional who is licensed to help people buy, sell, and rent properties, and can work independently or employ real estate agents. 2 / 4
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What is the purpose of "property disclosure" in a real estate transaction?✔✔ To inform the buyer about any known defects or issues with the property, allowing for an informed decision about the purchase.
What is a "homeowners association" (HOA)?✔✔ A governing body that manages and enforces rules and regulations for properties within a specific community or development.
What is the term "amortization" in relation to a mortgage?✔✔ The process of gradually paying off a loan through regular payments, which cover both principal and interest over the term of the loan.
What is a "forbearance" in mortgage terms?✔✔ An agreement by the lender to temporarily suspend or reduce mortgage payments for a borrower facing financial hardship.
What is meant by "home equity"? 3 / 4
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✔✔ The difference between the market value of a property and the amount owed on the mortgage, representing the homeowner's ownership stake in the property.
What is a "right of survivorship" in joint tenancy?✔✔ The automatic transfer of a deceased co-owner's share of the property to the surviving co- owner(s).
What does "property tax assessment" involve?✔✔ The process of evaluating the value of a property for tax purposes, typically conducted by the local government.
What is a "real estate investment trust" (REIT)?✔✔ A company that owns or finances income-producing real estate, allowing investors to purchase shares in a diversified portfolio of properties.
What is the role of an "escrow officer" in a real estate transaction?✔✔ A neutral third-party professional who manages the escrow process, ensuring all conditions of the sale are met before funds and documents are transferred.
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