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PSI National Exam for Real Estate Newest Edition | Updated 2024/25
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PSI National Exam for Real Estate Newest Edition | Updated 2024/25
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PSI National Exam for Real EstateNewest Edition | Updated 2024/25
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
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- Correct Answers a contract
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Antitrust laws prohibit competing brokers from all of the following - Correct Answers 1.
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boycotting other brokers in the marketplace.
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2. dividing the market to restrict competition.
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3. agreeing to set sales commissions and management rates.
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When a sewer line is installed down a rural road, the cost will probably be shared by -
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Correct Answers all current owners of real estate fronting on that road
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State laws differ on whether a buyer is entitled to know about - Correct Answers a suicide
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that occurred in the house last year.
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ll A lawsuit for inverse condemnation may be brought by - Correct Answers a homeowner
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When is racial discrimination in the rental of rooms or apartments permitted? - Correct
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Answers Under no circumstances
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The real estate broker who is listing a house for sale should personally verify - Correct
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Answers the number of square feet in the building
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ll Real property can be converted to personal property by - Correct Answers Severance
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Prospective buyers made an offer on a property. The seller did NOT accept, but made a
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counteroffer. The
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prospective buyers signed the counteroffer and the real estate agent delivered their
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acceptance to the seller.
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In the interim, the same buyers had found another house that they liked better and made
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an offer on it, which was accepted. Which of the following is TRUE? - Correct Answers
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Both contracts are valid
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Although states make specific laws governing water rights and the rights in land that
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borders water, most states
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generally follow one of two basic doctrines regarding water rights. In many states, the
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common law doctrine of riparian and littoral rights dictates that water rights are
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automatically conveyed with property. In others, all water rights are controlled by the state
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under the doctrine of - Correct Answers prior appropriation
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, The purpose of requiring an earnest money deposit in a real estate sales contract is to -
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Correct Answers provide evidence of the buyer's intention to carry out the contract.
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A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan
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for 15 years at 5 1/2%
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or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
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payments for these two loans?
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(BE SURE TO USE THE AMORTIZATION TABLE.) - Correct Answers $409.20.
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A borrower has defaulted on the mortgage. The mortgage contains an acceleration
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clause. This permits the lender to - Correct Answers demand immediate payment of the
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entire note
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ll The FHA functions MOST like - Correct Answers an insurance company
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1. They are used to buy down interest rate.
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2. They are a function of the marketplace.
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3. They are paid by either the buyer or the seller. - Correct Answers discount points
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When land is conveyed to a trustee, the trustee may - Correct Answers do whatever is
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permitted under the trust agreement
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A prospective buyer made an offer to purchase a property. The owner responded with a
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counteroffer. While the buyer
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was reviewing the counteroffer, the owner received a better offer. The owner can accept
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the second offer if - Correct Answers the owner withdraws the counteroffer before it is
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accepted.
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While an agent is showing a listed property, the seller and the buyer enter into an oral
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agreement for the purchase of the home. If a dispute over the terms arises later, the
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agreement may be unenforceable because - Correct Answers the agreement does not
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comply with the Statute of Frauds
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Earnest money should be deposited into a trust account - Correct Answers in a timely
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manner, according to state laws
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A deed restriction is applicable to the activities of - Correct Answers all owners, present
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and future
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ll An easement can be terminated by - Correct Answers prescription
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ll Depreciation is calculated based on the - Correct Answers cost of the building only ll ll ll ll ll ll ll ll ll ll ll ll ll ll ll ll
Which of the following approaches MOST reliably estimates the sales price of a single-
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family residence? - Correct Answers Market data
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, A seller mentions to his agent that the previous owners of his property may have dumped
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hazardous waste on the site. Under the Comprehensive Environmental Response,
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Compensation, and Liability Act (CERCLA), who is liable for damages from
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the dumping prior to the sale of the property? - Correct Answers Seller
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The escrow officer or closing agent MUST give information regarding the sales price and
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seller's social security number to - Correct Answers IRS
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A broker supplies the financing for a project to build condominiums with the stipulation that
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he has the exclusive right to sell the completed condos. Which of the following BEST
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describes this relationship? - Correct Answers Agency coupled with an interest
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If you own a building free and clear that is worth $115,000 and want an annual return of
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12%, what net income is needed each month? - Correct Answers $1,150
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ll Usury laws were enacted to protect the - Correct Answers borrower
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At the time of listing, the seller tells the listing agent they are moving because the neighbor
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has loud parties every weekend.
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The agent should - Correct Answers tell potential buyers about the parties
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When one of the parties to an agreement fails to perform one of its conditions, that contract
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is deemed to be - Correct Answers breached
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Which of the following is NOT a consideration in the definition of market value? - Correct
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Answers Buyer and seller must agree to appraised value
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One common method for controlling the problems created by conflict of interest in dual
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representation is - Correct Answers allowing a broker to designate separate salespeople
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within the company as legal representatives of each of the clients.
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Ownership of common stock in a corporation gives - Correct Answers an interest that is
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classified as personal property
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At the closing on June 15, the buyer is assuming a mortgage presently on the property, on
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which the monthly interest charge
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is currently $600. The seller has made the payment due on June 1. Assuming a VA
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mortgage, what is the adjustment
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made at closing? - Correct Answers Debit seller $300; credit buyer $300
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ll Too much leverage may result in - Correct Answers negative cash flow
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A major reason for buying and owning a condominium rather than a detached single-family
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home is that - Correct Answers a condominium tends to be more affordable
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, An adjustable rate loan should include all of the following elements - Correct Answers 1.
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margin
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2. life-of-the-loan cap
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3. index ll
Regulation Z requires that the borrower be fully informed of all of the following - Correct
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Answers 1. loan fees.
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2 .the origination fee.
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3. the annual percentage rate
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A couple signed a lease on an apartment for a period of 1 year. The lease does NOT
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contain an automatic renewal clause. The couple plans to move out at the end of the lease
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rather than renew it. How much notice MUST they give to comply with
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the lease term? - Correct Answers No notice is required
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The relationship in which the agent is placed in the position of trust and confidence to the
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principal is known by the term - Correct Answers fiduciary
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A couple are moving to a new city. They have decided to rent temporarily before buying a
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house to see which part of the city
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they would like to live in. What type of lease would BEST suit the couple's needs? - Correct
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Answers Month-to-month lease
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A broker says, while showing a rural property, "This property has the world's purest well
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water." This would be an example of - Correct Answers an expression of opinion, or
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puffing, which could lead to misrepresentation
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A contract has been drawn which obliges the sellers to convey title to their land to the
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buyers if the buyers come up with
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$22,000 on or before December 31st. This is called - Correct Answers an option contract
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Errors and Omissions insurance covers the broker for - Correct Answers unintentional
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misrepresentations
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The land description T3N, R4W Principal Meridian refers to what method of property
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description? - Correct Answers Rectangular survey.
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All of the following are methods to calculate the reproduction or replacement cost of a
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building EXCEPT - Correct Answers straight-line method
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The buyer is assuming a mortgage presently on the property in the amount of $110,000.
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What is the adjustment made at closing? - Correct Answers Credit buyer $110,000; debit
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seller $110,000
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