National PSI EXAM PRACTICE TEST (Latest
Update ) Questions & Answers
{Grade A} 100% Correct
The rent collected on a 9 Unit building is as follows: Three apartments, $550; three
apartments, $600; three apartments, $650. There is a vacancy rate of of 4%, additional
income of $2,400, and annual expenses of $5,000. With a cap rate of 9%, how much
should the buyer pay for this property?
A. $661,244
B. $717,866
C. $698,534
D. $773,422 - correct answer A.
Find NOI then Divide by cap rate
,Property mangers must be aware and knowledgeable of a variety of issues. When
considering asbestos, radon, and urea formaldehyde, the manager should be aware
they are all:
A. classified as environmental hazards
B. produced as a result of the natural decay of radioactive substances
C. produced a result of the natural decay of organic substances
D. classified as hazardous substances. - correct answer A.
Asbestos, Radon and Urea Formaldehyde are environmental hazards
When a seller takes back a purchase money mortgage from a buyer:
A. the seller agrees to collect the buyer's payments directly from the lender.
,B.the terms and conditions of the mortgage are included in the borrowers first
mortgage.
C. the terms and conditions of the mortgage must be set forth in writing.
D. the seller and the buyer may enter into an enforceable oral agreement. - correct
answer C.
In order for the purchase money mortgage to be enforceable, the terms and conditions,
such as principal and interest, must be set forth in detail in writing.
A developer grants a local power company the right to install necessary transmission
lines. This right is an example of a(n)
A) license.
B) easement in gross.
C) easement by prescription.
D) conditional use permit. - correct answer D.
An easement in gross is a company's right to use another's land.
, A person who has complete control of a parcel of real estate is said to own:
A. a life estate
B. a defeasible fee estate
C. a leasehold estate
D. a fee simple estate - correct answer D.
the highest interest in real estate recognized by law is the fee simple or fee simple
absolute estate.
The essential elements of a contract include all of these except:
A. competent grantor
B. consideration
Update ) Questions & Answers
{Grade A} 100% Correct
The rent collected on a 9 Unit building is as follows: Three apartments, $550; three
apartments, $600; three apartments, $650. There is a vacancy rate of of 4%, additional
income of $2,400, and annual expenses of $5,000. With a cap rate of 9%, how much
should the buyer pay for this property?
A. $661,244
B. $717,866
C. $698,534
D. $773,422 - correct answer A.
Find NOI then Divide by cap rate
,Property mangers must be aware and knowledgeable of a variety of issues. When
considering asbestos, radon, and urea formaldehyde, the manager should be aware
they are all:
A. classified as environmental hazards
B. produced as a result of the natural decay of radioactive substances
C. produced a result of the natural decay of organic substances
D. classified as hazardous substances. - correct answer A.
Asbestos, Radon and Urea Formaldehyde are environmental hazards
When a seller takes back a purchase money mortgage from a buyer:
A. the seller agrees to collect the buyer's payments directly from the lender.
,B.the terms and conditions of the mortgage are included in the borrowers first
mortgage.
C. the terms and conditions of the mortgage must be set forth in writing.
D. the seller and the buyer may enter into an enforceable oral agreement. - correct
answer C.
In order for the purchase money mortgage to be enforceable, the terms and conditions,
such as principal and interest, must be set forth in detail in writing.
A developer grants a local power company the right to install necessary transmission
lines. This right is an example of a(n)
A) license.
B) easement in gross.
C) easement by prescription.
D) conditional use permit. - correct answer D.
An easement in gross is a company's right to use another's land.
, A person who has complete control of a parcel of real estate is said to own:
A. a life estate
B. a defeasible fee estate
C. a leasehold estate
D. a fee simple estate - correct answer D.
the highest interest in real estate recognized by law is the fee simple or fee simple
absolute estate.
The essential elements of a contract include all of these except:
A. competent grantor
B. consideration
