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PSI National Exam for Real Estate 2024/2025 (100% verified) A+ grade assured
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PSI National Exam for Real Estate 2024/2025 (100% verified) A+ grade assured
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PSI National Exam for Real EstateA written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
ANSa contract
Antitrust laws prohibit competing brokers from all of the following - ANS1. boycotting other
brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will probably be shared by -
ANSall current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - ANSa suicide that occurred in
the house last year.
A lawsuit for inverse condemnation may be brought by - ANSa homeowner
When is racial discrimination in the rental of rooms or apartments permitted? - ANSUnder no
circumstances
The real estate broker who is listing a house for sale should personally verify - ANSthe
number of square feet in the building
Real property can be converted to personal property by - ANSSeverance
Prospective buyers made an offer on a property. The seller did NOT accept, but made a
counteroffer. The
prospective buyers signed the counteroffer and the real estate agent delivered their
acceptance to the seller.
In the interim, the same buyers had found another house that they liked better and made an
offer on it, which was accepted. Which of the following is TRUE? - ANSBoth contracts are
valid
Although states make specific laws governing water rights and the rights in land that borders
water, most states
generally follow one of two basic doctrines regarding water rights. In many states, the
common law doctrine of riparian and littoral rights dictates that water rights are automatically
conveyed with property. In others, all water rights are controlled by the state under the
doctrine of - ANSprior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is to -
ANSprovide evidence of the buyer's intention to carry out the contract.
,A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan
for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - ANS$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause.
This permits the lender to - ANSdemand immediate payment of the entire note
The FHA functions MOST like - ANSan insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - ANSdiscount points
When land is conveyed to a trustee, the trustee may - ANSdo whatever is permitted under
the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if - ANSthe owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the
agreement may be unenforceable because - ANSthe agreement does not comply with the
Statute of Frauds
Earnest money should be deposited into a trust account - ANSin a timely manner, according
to state laws
A deed restriction is applicable to the activities of - ANSall owners, present and future
An easement can be terminated by - ANSprescription
Depreciation is calculated based on the - ANScost of the building only
Which of the following approaches MOST reliably estimates the sales price of a single-family
residence? - ANSMarket data
A seller mentions to his agent that the previous owners of his property may have dumped
hazardous waste on the site. Under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - ANSSeller
The escrow officer or closing agent MUST give information regarding the sales price and
seller's social security number to - ANSIRS
,A broker supplies the financing for a project to build condominiums with the stipulation that
he has the exclusive right to sell the completed condos. Which of the following BEST
describes this relationship? - ANSAgency coupled with an interest
If you own a building free and clear that is worth $115,000 and want an annual return of
12%, what net income is needed each month? - ANS$1,150
Usury laws were enacted to protect the - ANSborrower
At the time of listing, the seller tells the listing agent they are moving because the neighbor
has loud parties every weekend.
The agent should - ANStell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions, that contract
is deemed to be - ANSbreached
Which of the following is NOT a consideration in the definition of market value? - ANSBuyer
and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest in dual
representation is - ANSallowing a broker to designate separate salespeople within the
company as legal representatives of each of the clients.
Ownership of common stock in a corporation gives - ANSan interest that is classified as
personal property
At the closing on June 15, the buyer is assuming a mortgage presently on the property, on
which the monthly interest charge
is currently $600. The seller has made the payment due on June 1. Assuming a VA
mortgage, what is the adjustment
made at closing? - ANSDebit seller $300; credit buyer $300
Too much leverage may result in - ANSnegative cash flow
A major reason for buying and owning a condominium rather than a detached single-family
home is that - ANSa condominium tends to be more affordable
An adjustable rate loan should include all of the following elements - ANS1. margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following - ANS1. loan
fees.
2 .the origination fee.
3. the annual percentage rate
, A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain
an automatic renewal clause. The couple plans to move out at the end of the lease rather
than renew it. How much notice MUST they give to comply with
the lease term? - ANSNo notice is required
The relationship in which the agent is placed in the position of trust and confidence to the
principal is known by the term - ANSfiduciary
A couple are moving to a new city. They have decided to rent temporarily before buying a
house to see which part of the city
they would like to live in. What type of lease would BEST suit the couple's needs? -
ANSMonth-to-month lease
A broker says, while showing a rural property, "This property has the world's purest well
water." This would be an example of - ANSan expression of opinion, or puffing, which could
lead to misrepresentation
A contract has been drawn which obliges the sellers to convey title to their land to the buyers
if the buyers come up with
$22,000 on or before December 31st. This is called - ANSan option contract
Errors and Omissions insurance covers the broker for - ANSunintentional misrepresentations
The land description T3N, R4W Principal Meridian refers to what method of property
description? - ANSRectangular survey.
All of the following are methods to calculate the reproduction or replacement cost of a
building EXCEPT - ANSstraight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000.
What is the adjustment made at closing? - ANSCredit buyer $110,000; debit seller $110,000
A salesperson lists a property with a contract that allows for subagency and dual agency.
The salesperson is - ANSan agent to the broker and a subagent to the principal.
The amount of commission to be paid is - ANSagreed upon by the seller and agent on the
contract.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than - ANS$250,000
An odorless, radioactive gas that can cause cancer - ANSRadon
The document used in a real estate sale that establishes the legal rights of the buyer and
seller is the - ANSpurchase contract
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