PSI NATIONAL REAL ESTATE EXAM
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || GUARANTEE PASS
<LATEST UPDATE>
A commercial property lost value because a recently constructed highway moved
traffic away from the property. This is an example of - ANSWER ✔ economic or
external obsolescence
A managing broker can be held responsible for - ANSWER ✔ all real estate
activities of salespersons.
What is the term used for the person or organization who acts as an intermediary
for the purpose of obtaining
Financing? - ANSWER ✔ Mortgage broker
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all
of the following disclosures
MUST appear in the ad - ANSWER ✔ 1. cash price or amount of the loan
2. amount of down payment required
3. number, amount, and frequency of payments
In an exclusive right-to-sell listing, an owner lists the property for sale with how
many brokers - ANSWER ✔ One
A seller tells the listing agent that her home was treated for termites 10 years ago,
so there are no termites now.
Before listing the property, the agent should - ANSWER ✔ tell the seller to
disclose the termite treatment on the property disclosure
When a principal authorizes an agent to perform a particular act or transaction, it
is an example of a - ANSWER ✔ special agency
, The day after a broker's listing on a house expired, it was listed with another
broker and offered in the MLS.
Several days later, a third licensee called the first broker and asked for the key to
show the home. The broker should inform the caller that - ANSWER ✔ he is no
longer the listing agent
If conditions for purchase are included in a deed and these conditions are violated,
what is the penalty? - ANSWER ✔ Return of the property to the original owner
Which is true of BOTH special assessments and ad valorem taxes - ANSWER ✔
Deliquent payment is grounds for sale of property
Why was the Jones vs. Mayer decision of 1968 important? - ANSWER ✔ By
upholding the Civil Rights Act of 1866, the Supreme Court removed all exceptions
to racial discrimination in housing
An Environmental Impact Statement (EIS - ANSWER ✔ projects the impact on
the environment of a proposed project.
Which of the following BEST illustrates the concept and intent of a buffer zone? -
ANSWER ✔ Garden apartments located between a single-family residential
neighborhood and a shopping center.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing
contracts, the broker has earned his commission when - ANSWER ✔ the seller
accepts the offer
Which rule-of-thumb version is being offered to an investor who is told that a
house renting for $900 a month
should sell for about $90,000? - ANSWER ✔ GRM
A judgment has been properly recorded. Any subsequent purchasers, whether they
have actually examined the
record or not, have been given - ANSWER ✔ constructive notice
When a property owner uses his home as collateral for a loan and creates a lien in
favor of the lender, title is held
by the - ANSWER ✔ mortgagor
, The buyer wants to make the purchase offer contingent on a complex mortgage
arrangement. The buyer's agent Who is drawing up the contract should - ANSWER
✔ suggest the buyer ask a lawyer to furnish the wording
The practice of inducing panic selling in a neighborhood for financial gain is -
ANSWER ✔ blockbusting.
The real estate contract for a specific property for use as an unlicensed whiskey
sales operation was forced to terminate. The termination was the result of -
ANSWER ✔ impossibility of performance
The sellers have agreed to give the buyer a carpet allowance to replace the family
room carpet. They will allow $19.95 per square yard for carpet plus $5 per square
yard for pad and installation. If the family room is 22'6"x 15', how much will it
cost the sellers (to the nearest cent)? - ANSWER ✔ $935.63
The Department of Housing and Urban Development estimates that most private
homes built before 1978 contain potentially dangerous levels of lead. Because of
this, some Federal agencies, such as FHA, - ANSWER ✔ require the buyer to
acknowledge disclosure of the presence of any known lead paint
A tenant rented an apartment, signing a 15-month lease. After the lease expired,
the tenant paid 1 month's rent and got a receipt. What kind of leasehold goes the
tenant have? - ANSWER ✔ Holdover tenancy
How does a creditor who has obtained a judgment get satisfaction against a debtor
who will not pay? - ANSWER ✔ Writ of execution
Timeshare ownership programs MOST often use which of the following
ownership forms? - ANSWER ✔ tenancy in common
In every real estate transaction, a legal description of the real estate MUST appear
in the transaction documents. What kind of legal description should be used in
MOST transactions? - ANSWER ✔ the same one used in prior transfers of the
parcel, verified by a surveyor
, A landowner wishes to build a neighborhood grocery store on a busy street in an
area zoned for residential use. Which of the following would MOST likely be used
to obtain permission for this store? - ANSWER ✔ Conditional use permit or
zoning varience
An environmental impact statement typically describes the effects of a proposed
project on factors such as - ANSWER ✔ public health and safety
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. Either riparian and littoral rights are automatically
conveyed with property, or all water rights are controlled by the state under the
doctrine or prior appropriation. The doctrine of prior appropriation is MOST likely
to be followed in states where - ANSWER ✔ water is scarce
When more than one approach to value is applied to a property and different
indications of value are produced, how should the final estimate of value be
determined? - ANSWER ✔ Reconciliation
When preparing a market data estimate of value, which of the following categories
of adjustment is essential? - ANSWER ✔ 1. the date of sale of the comparables
2. the amount of square footage
3. the location of the property
If all other factors are equal, in which location is a parking lot likely to bring the
highest sales - ANSWER ✔ business district zoned for a six-story office building
Parcels A, B, and C are located side by side and owned by three different owners.
A is worth $20,000, B is worth $27,000, and C is worth $16,000 for a total of
$63,000. A developer believes that if all three can be purchased, the larger parcel
would be worth $85,000. By assembling these under one owner they would be
worth $22,000 more than their individual values. This demonstrates which
principle of value? - ANSWER ✔ plottage
A loan which requires the borrower to pay interest only until the maturity date (or
due date), and then pay the entire principal on the maturity date, is called a -
ANSWER ✔ term loan
