PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
A couple listed their home with a broker. After 2 months,
the seller found a buyer, and the sale closed. The seller
was not obligated to pay a commission to the broker. This
listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing. - CORRECT ANSWERS ✔✔an
exclusive agency listing
What critical aspect of the property inspection process
MUST licensees convey to prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and
brokers.
3. Need for inspections to be completed within the time
stated in the contract.
4. Likelihood that the inspection will generate a list of
items sellers must repair. - CORRECT ANSWERS
✔✔Need for inspections to be completed within the time
stated in the contract.
,PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. -
CORRECT ANSWERS ✔✔defects that clearly appear in
the title search.
If a borrower can afford to make monthly principal and
interest payments of $1,000 and the lender will make a
30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what
is the largest loan (rounded to the nearest $100) this
buyer can afford? (BE SURE TO USE THE AMORTIZATION
TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 - CORRECT ANSWERS ✔✔$176,100
State laws differ on whether a buyer is entitled to know
about
,PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. -
CORRECT ANSWERS ✔✔a suicide that occurred in the
house last year.
Three identical homes in a neighborhood were listed at
the same time in a market where demand was constant.
According to the law of supply and demand, which would
have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given - CORRECT
ANSWERS ✔✔The first sold.
A property management plan may serve different
purposes for different owners, and generally has to strike
a balance between preservation of the property's value
and generation of income. Which of the following owners
, PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
would MOST likely prefer a property manager who
emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several
apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. - CORRECT
ANSWERS ✔✔The Department of Housing and Urban
Development.
Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. - CORRECT ANSWERS ✔✔Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
3. an investment group.
PRACTICE EXAM QUETION &
Answers
A couple listed their home with a broker. After 2 months,
the seller found a buyer, and the sale closed. The seller
was not obligated to pay a commission to the broker. This
listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing. - CORRECT ANSWERS ✔✔an
exclusive agency listing
What critical aspect of the property inspection process
MUST licensees convey to prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and
brokers.
3. Need for inspections to be completed within the time
stated in the contract.
4. Likelihood that the inspection will generate a list of
items sellers must repair. - CORRECT ANSWERS
✔✔Need for inspections to be completed within the time
stated in the contract.
,PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. -
CORRECT ANSWERS ✔✔defects that clearly appear in
the title search.
If a borrower can afford to make monthly principal and
interest payments of $1,000 and the lender will make a
30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what
is the largest loan (rounded to the nearest $100) this
buyer can afford? (BE SURE TO USE THE AMORTIZATION
TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 - CORRECT ANSWERS ✔✔$176,100
State laws differ on whether a buyer is entitled to know
about
,PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. -
CORRECT ANSWERS ✔✔a suicide that occurred in the
house last year.
Three identical homes in a neighborhood were listed at
the same time in a market where demand was constant.
According to the law of supply and demand, which would
have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given - CORRECT
ANSWERS ✔✔The first sold.
A property management plan may serve different
purposes for different owners, and generally has to strike
a balance between preservation of the property's value
and generation of income. Which of the following owners
, PSI REAL ESTATE SALESPERSON
PRACTICE EXAM QUETION &
Answers
would MOST likely prefer a property manager who
emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several
apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. - CORRECT
ANSWERS ✔✔The Department of Housing and Urban
Development.
Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. - CORRECT ANSWERS ✔✔Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
3. an investment group.
