PSI TN (State) Exam Questions with Correct
Answers
What is the purpose of an escrow account?
Keep money that doesn't belong to you SEPARATE from personal account/money
Who is responsible for looking after Escrow Accounts for property?
Broker
Another name for Escrow Money (earnest money, security deposits) is_________?
Trust Money
When a Broker gets Escrow/Trust money and deposit into the Escrow Account they
MUST do what as well?
The Broker must write on the check and the deposit slip either the word Escrow or Trust
When an Affiliate broker gets Escrow/ Trust money (ie Earnest or Deposit money) they
must do what IMMEDIATELY?
Give it to their Broker
***TN State law states that a Broker must deposit money into an Escrow account?
Prometily after their is a Binding Agreement unless there is something in the Sales Contract
for a different date***
Commingling
Illegally mixing deposits or monies, collected from a client, with one's personal or business
account. Taking money out too soon or putting it into escrow too late (10 banking days).
Conversion
,Illegally spending money that does not belong to you
Fair Housing Act of 1968
Prohibited discrimination concerning the sale, rental, and financing of housing based on race
***Fair Housing Amendments Act of 1988
Expansion of the Fair Housing Act to include Pregant women, families with children under
the age of 18/ Familial Status and those with physical or mental disabilities.
***Fair Housing Laws
Anti-discrimination legislation designed to ensure equal opportunity in housing to all home
buyers.
***What are the 7 protected classes?
Race,
Color,
Religion
National origin,
Sex,
Familial status,
Handicapped/ Disability
***Civil Rights Act of 1966
Prohibited Racial Discrimination
(Has NO exemptions allowed)
***A single woman that owns a duplex and lives in one side and would like to ONLY
have woman rent out the other side, is this Sexual Discrimination?
, NO, she is allowed to only woman rent out the other side of the duplex she owns.
***Can an add that states "NO MEN ALLOWED" be placed on a for rent sign?
NO, however the person may say "Female Roommate wanted"
Housing and Community Development Act of 1974
Added sex (gender) to the list of protected classes
***Senior Communities
Living for people that are 62 years age or older
***If someone who is disabled needs a modification for a place where they are where
they are going to live, is the owner responsible for this?
NO they are NOT required to
( They have to do it at there expense)
***Are disabled tenants required to return the property to its original conditions (Free
of Modifications) once they are moved out?
YES, they are required by law to bring the property back to its original condition
(They also can pay the landlord money to restore it if they are unable to do so)
A Licensee MAY or MAY NOT disclose that a buyer or a seller is a member of a
protected class?
MAY NOT DISCLOSE
Can Drug Addicts or Alcoholics be refused rental property to live at?
Answers
What is the purpose of an escrow account?
Keep money that doesn't belong to you SEPARATE from personal account/money
Who is responsible for looking after Escrow Accounts for property?
Broker
Another name for Escrow Money (earnest money, security deposits) is_________?
Trust Money
When a Broker gets Escrow/Trust money and deposit into the Escrow Account they
MUST do what as well?
The Broker must write on the check and the deposit slip either the word Escrow or Trust
When an Affiliate broker gets Escrow/ Trust money (ie Earnest or Deposit money) they
must do what IMMEDIATELY?
Give it to their Broker
***TN State law states that a Broker must deposit money into an Escrow account?
Prometily after their is a Binding Agreement unless there is something in the Sales Contract
for a different date***
Commingling
Illegally mixing deposits or monies, collected from a client, with one's personal or business
account. Taking money out too soon or putting it into escrow too late (10 banking days).
Conversion
,Illegally spending money that does not belong to you
Fair Housing Act of 1968
Prohibited discrimination concerning the sale, rental, and financing of housing based on race
***Fair Housing Amendments Act of 1988
Expansion of the Fair Housing Act to include Pregant women, families with children under
the age of 18/ Familial Status and those with physical or mental disabilities.
***Fair Housing Laws
Anti-discrimination legislation designed to ensure equal opportunity in housing to all home
buyers.
***What are the 7 protected classes?
Race,
Color,
Religion
National origin,
Sex,
Familial status,
Handicapped/ Disability
***Civil Rights Act of 1966
Prohibited Racial Discrimination
(Has NO exemptions allowed)
***A single woman that owns a duplex and lives in one side and would like to ONLY
have woman rent out the other side, is this Sexual Discrimination?
, NO, she is allowed to only woman rent out the other side of the duplex she owns.
***Can an add that states "NO MEN ALLOWED" be placed on a for rent sign?
NO, however the person may say "Female Roommate wanted"
Housing and Community Development Act of 1974
Added sex (gender) to the list of protected classes
***Senior Communities
Living for people that are 62 years age or older
***If someone who is disabled needs a modification for a place where they are where
they are going to live, is the owner responsible for this?
NO they are NOT required to
( They have to do it at there expense)
***Are disabled tenants required to return the property to its original conditions (Free
of Modifications) once they are moved out?
YES, they are required by law to bring the property back to its original condition
(They also can pay the landlord money to restore it if they are unable to do so)
A Licensee MAY or MAY NOT disclose that a buyer or a seller is a member of a
protected class?
MAY NOT DISCLOSE
Can Drug Addicts or Alcoholics be refused rental property to live at?
