NATIONAL PSI EXAM PRACTICE TEST
QUESTIONS AND ANSWERS
1. Real Estate law governing advertising applies to all of these EXCEPT
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media
ANS A. In-house notes for showing are not seen by consumers an so do not have to follow state
or federal laws.
2. A couple accompanies a property inspector during an inspection
of a house on which they have a contract. The inspector points to a
six-inch crack at the corner of a dining room window. The crack is
an example of
A. A structural defect
B. A patent Defect
C. a latent defect
D.an environmental defect
ANS B. A patent defect is easily visible when inspecting a property. (another) term for material)
3. An eligible veteran made an offer of $225,000 to purchase a home
contingent upon obtaining a no-down payment U.S department of
,Veterans Affairs (VA) guaranteed loan. Three weeks after the offer
was accepted, the VA issued a certificate of reasonable value (CRV)
for the $222,000 for the property. In this case, the veteran may
A. withdraw from the sale with a three-point penalty
B. withdraw from the sale on payment of a commission to the seller's
broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000
ANS C. When the purchase price of a property is greater than the VA-issued (CRV), the
veteran may pay the difference in cash to purchase the property because secondary financing is
somewhat restricted under VA regulations.
4. General real estate property taxes levied for the operation of the
government
are called
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes
ANS B.
5. Under current Regulations, a U.S. department of Veteran Affairs
, (VA) loan is assumable if
A. The VA approves both the buyer and the assumption agreement
B. the veteran agrees not to request a releases of liability for
repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the agreement only
ANS A.
for VA loans made after March 1, 1988 the VA must approve both the buyer and the assumption
agreement before the loan may be assumed.
6. During the period of time after a real estate sales contract is signed,
but
before title actually passes, the status of the contract is
A. executory
B. voidable
C. executed
D. unilateral
ANS A.
A contract is in executory status when its terms of agreement have not yet been carried out.
7. If there is a discrepancy between a residential lot size quoted
QUESTIONS AND ANSWERS
1. Real Estate law governing advertising applies to all of these EXCEPT
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media
ANS A. In-house notes for showing are not seen by consumers an so do not have to follow state
or federal laws.
2. A couple accompanies a property inspector during an inspection
of a house on which they have a contract. The inspector points to a
six-inch crack at the corner of a dining room window. The crack is
an example of
A. A structural defect
B. A patent Defect
C. a latent defect
D.an environmental defect
ANS B. A patent defect is easily visible when inspecting a property. (another) term for material)
3. An eligible veteran made an offer of $225,000 to purchase a home
contingent upon obtaining a no-down payment U.S department of
,Veterans Affairs (VA) guaranteed loan. Three weeks after the offer
was accepted, the VA issued a certificate of reasonable value (CRV)
for the $222,000 for the property. In this case, the veteran may
A. withdraw from the sale with a three-point penalty
B. withdraw from the sale on payment of a commission to the seller's
broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000
ANS C. When the purchase price of a property is greater than the VA-issued (CRV), the
veteran may pay the difference in cash to purchase the property because secondary financing is
somewhat restricted under VA regulations.
4. General real estate property taxes levied for the operation of the
government
are called
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes
ANS B.
5. Under current Regulations, a U.S. department of Veteran Affairs
, (VA) loan is assumable if
A. The VA approves both the buyer and the assumption agreement
B. the veteran agrees not to request a releases of liability for
repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the agreement only
ANS A.
for VA loans made after March 1, 1988 the VA must approve both the buyer and the assumption
agreement before the loan may be assumed.
6. During the period of time after a real estate sales contract is signed,
but
before title actually passes, the status of the contract is
A. executory
B. voidable
C. executed
D. unilateral
ANS A.
A contract is in executory status when its terms of agreement have not yet been carried out.
7. If there is a discrepancy between a residential lot size quoted
