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PSI National Exam for Real Estate Questions and Answers.
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PSI National Exam for Real Estate Questions and Answers.
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PSI National Exam for Real Estate Questions andAnswers
A .written .agreement .in .which .a .purchaser .agrees .to .buy .and .a .seller .agrees .to .sell .is .called .- .
(correct .answer) .-a .contract
Antitrust .laws .prohibit .competing .brokers .from .all .of .the .following .- .(correct .answer) .-
1. .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 .- .
(correct .answer) .-all .current .owners .of .real .estate .fronting .on .that .road
State .laws .differ .on .whether .a .buyer .is .entitled .to .know .about .- .(correct .answer) .-
a .suicide .that .occurred .in .the .house .last .year.
A .lawsuit .for .inverse .condemnation .may .be .brought .by .- .(correct .answer) .-a .homeowner
When .is .racial .discrimination .in .the .rental .of .rooms .or .apartments .permitted? .- .(correct .answer) .-
Under .no .circumstances
The .real .estate .broker .who .is .listing .a .house .for .sale .should .personally .verify .- .(correct .answer) .-the
.number .of .square .feet .in .the .building
Real .property .can .be .converted .to .personal .property .by .- .(correct .answer) .-Severance
Prospective .buyers .made .an .offer .on .a .property. .The .seller .did .NOT .accept, .but .made .a .counteroffe
r. .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? .- .(correct .answer) .-
Both .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 .pro
perty. .In .others, .all .water .rights .are .controlled .by .the .state .under .the .doctrine .of .- .
(correct .answer) .-prior .appropriation
The .purpose .of .requiring .an .earnest .money .deposit .in .a .real .estate .sales .contract .is .to .- .
(correct .answer) .-provide .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 .paymen
ts .for .these .two .loans?
.(BE .SURE .TO .USE .THE .AMORTIZATION .TABLE.) .- .(correct .answer) .-$409.20.
A .borrower .has .defaulted .on .the .mortgage. .The .mortgage .contains .an .acceleration .clause. .This .per
mits .the .lender .to .- .(correct .answer) .-demand .immediate .payment .of .the .entire .note
The .FHA .functions .MOST .like .- .(correct .answer) .-an .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. .- .(correct .answer) .-discount .points
When .land .is .conveyed .to .a .trustee, .the .trustee .may .- .(correct .answer) .-
do .whatever .is .permitted .under .the .trust .agreement
A .prospective .buyer .made .an .offer .to .purchase .a .property. .The .owner .responded .with .a .counteroff
er. .While .the .buyer .
was .reviewing .the .counteroffer, .the .owner .received .a .better .offer. .The .owner .can .accept .the .secon
d .offer .if .- .(correct .answer) .-the .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 .f
or .the .purchase .of .the .home. .If .a .dispute .over .the .terms .arises .later, .the .agreement .may .be .unenf
orceable .because .- .(correct .answer) .-the .agreement .does .not .comply .with .the .Statute .of .Frauds
,Earnest .money .should .be .deposited .into .a .trust .account .- .(correct .answer) .-
in .a .timely .manner, .according .to .state .laws
A .deed .restriction .is .applicable .to .the .activities .of .- .(correct .answer) .-all .owners, .present .and .future
An .easement .can .be .terminated .by .- .(correct .answer) .-prescription
Depreciation .is .calculated .based .on .the .- .(correct .answer) .-cost .of .the .building .only
Which .of .the .following .approaches .MOST .reliably .estimates .the .sales .price .of .a .single-
family .residence? .- .(correct .answer) .-Market .data
A .seller .mentions .to .his .agent .that .the .previous .owners .of .his .property .may .have .dumped .hazardou
s .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? .- .(correct .answer) .-Seller
The .escrow .officer .or .closing .agent .MUST .give .information .regarding .the .sales .price .and .seller's .soci
al .security .number .to .- .(correct .answer) .-IRS
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 .relation
ship? .- .(correct .answer) .-Agency .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? .- .
(correct .answer) .-$1,150
Usury .laws .were .enacted .to .protect .the .- .(correct .answer) .-borrower
At .the .time .of .listing, .the .seller .tells .the .listing .agent .they .are .moving .because .the .neighbor .has .lou
d .parties .every .weekend.
.The .agent .should .- .(correct .answer) .-tell .potential .buyers .about .the .parties
When .one .of .the .parties .to .an .agreement .fails .to .perform .one .of .its .conditions, .that .contract .is .dee
med .to .be .- .(correct .answer) .-breached
Which .of .the .following .is .NOT .a .consideration .in .the .definition .of .market .value? .- .(correct .answer) .-
Buyer .and .seller .must .agree .to .appraised .value
One .common .method .for .controlling .the .problems .created .by .conflict .of .interest .in .dual .representa
tion .is .- .(correct .answer) .-
allowing .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 .- .(correct .answer) .-
an .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 .th
e .monthly .interest .charge
.is .currently .
$600. .The .seller .has .made .the .payment .due .on .June .1. .Assuming .a .VA .mortgage, .what .is .the .adjust
ment .
made .at .closing? .- .(correct .answer) .-Debit .seller .$300; .credit .buyer .$300
Too .much .leverage .may .result .in .- .(correct .answer) .-negative .cash .flow
A .major .reason .for .buying .and .owning .a .condominium .rather .than .a .detached .single-
family .home .is .that .- .(correct .answer) .-a .condominium .tends .to .be .more .affordable
An .adjustable .rate .loan .should .include .all .of .the .following .elements .- .(correct .answer) .-1. .margin
2. .life-of-the-loan .cap
3. .index
Regulation .Z .requires .that .the .borrower .be .fully .informed .of .all .of .the .following .- .(correct .answer) .-
1. .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 .aut
omatic .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? .- .(correct .answer) .-No .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 .- .(correct .answer) .-fiduciary
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? .- .
(correct .answer) .-Month-to-month .lease
A .broker .says, .while .showing .a .rural .property, ."This .property .has .the .world's .purest .well .water." .Thi
s .would .be .an .example .of .- .(correct .answer) .-
an .expression .of .opinion, .or .puffing, .which .could .lead .to .misrepresentation
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