PSI NATIONAL EXAM SCRIPT VERIFIED
QUESTIONS WITH COMPLETE SOLUTION
REVIEW
●● A contract for the sale of a home has been signed by both parties.
This contract will remain executory until
Answer: the transaction has closed.
●● A broker is showing a buyer one of his residential listings. The buyer
says he wants to establish a day care center for seniors in the property.
The property has been used as a day care center for no more than five
children. How should the broker advise this buyer?
Answer: Provide the buyer with contact information for the local
planning and zoning office to confirm the zoning and determine whether
it permits his use.
●● A broker hires a salesperson as an independent contractor. In order
for the salesperson to be considered an independent contractor for
federal income tax purposes, the broker's written contract with the
salesperson MUST specify
Answer: that the salesperson will not be treated as an employee for
federal income tax purposes.
,●● The sellers want to accept a purchase offer, but only if the price is
raised by $5,000. What should they give the prospective buyer?
Answer: Counteroffer.
●● When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the seller,
one benefit of the deed of trust is that
Answer: foreclosure is usually simpler and faster.
●● Even after an offer has been accepted and is binding, the buyer and
seller may still choose to sign mutual release papers rather than proceed
to closing. Which of the following circumstances would NOT give either
party a justifiable reason to insist on a mutual release?
Answer: The buyer finds a better property for better terms.
●● 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 does the tenant have?
Answer: Tenancy at will.
●● MOST closed real estate transactions should be reported to the IRS.
REQUIRED information includes seller name(s) and social security
number(s) and
Answer: the sale price.
, ●● A minority couple come to a salesperson looking for a house. The
salesperson has some properties for which the couple qualify but avoids
showing or mentioning these listings. Instead, the salesperson shows
only properties in low-priced and integrated neighborhoods. This
practice is known as
Answer: steering.
●● Failure of a real estate agent to comply with Fair Housing practices
is punishable by
Answer: license revocation and criminal prosecution.
●● A salesperson qualified a minority couple with two children and
defined their price range as between $110,000 and $120,000 for the
three-bedroom house they wanted. They asked to look at two listings in
a nonminority neighborhood. The salesperson did not show them the
properties because they were priced under $90,000 and had only two
small bedrooms. Did the salesperson act appropriately and why or why
not?
Answer: No, because it is appropriate to show any property for which
the buyer is qualified.
●● A company agrees to lease a property to be used as a gambling
casino. State laws prohibit gambling. This particular contract would be
legally defined as
Answer: void.
QUESTIONS WITH COMPLETE SOLUTION
REVIEW
●● A contract for the sale of a home has been signed by both parties.
This contract will remain executory until
Answer: the transaction has closed.
●● A broker is showing a buyer one of his residential listings. The buyer
says he wants to establish a day care center for seniors in the property.
The property has been used as a day care center for no more than five
children. How should the broker advise this buyer?
Answer: Provide the buyer with contact information for the local
planning and zoning office to confirm the zoning and determine whether
it permits his use.
●● A broker hires a salesperson as an independent contractor. In order
for the salesperson to be considered an independent contractor for
federal income tax purposes, the broker's written contract with the
salesperson MUST specify
Answer: that the salesperson will not be treated as an employee for
federal income tax purposes.
,●● The sellers want to accept a purchase offer, but only if the price is
raised by $5,000. What should they give the prospective buyer?
Answer: Counteroffer.
●● When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the seller,
one benefit of the deed of trust is that
Answer: foreclosure is usually simpler and faster.
●● Even after an offer has been accepted and is binding, the buyer and
seller may still choose to sign mutual release papers rather than proceed
to closing. Which of the following circumstances would NOT give either
party a justifiable reason to insist on a mutual release?
Answer: The buyer finds a better property for better terms.
●● 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 does the tenant have?
Answer: Tenancy at will.
●● MOST closed real estate transactions should be reported to the IRS.
REQUIRED information includes seller name(s) and social security
number(s) and
Answer: the sale price.
, ●● A minority couple come to a salesperson looking for a house. The
salesperson has some properties for which the couple qualify but avoids
showing or mentioning these listings. Instead, the salesperson shows
only properties in low-priced and integrated neighborhoods. This
practice is known as
Answer: steering.
●● Failure of a real estate agent to comply with Fair Housing practices
is punishable by
Answer: license revocation and criminal prosecution.
●● A salesperson qualified a minority couple with two children and
defined their price range as between $110,000 and $120,000 for the
three-bedroom house they wanted. They asked to look at two listings in
a nonminority neighborhood. The salesperson did not show them the
properties because they were priced under $90,000 and had only two
small bedrooms. Did the salesperson act appropriately and why or why
not?
Answer: No, because it is appropriate to show any property for which
the buyer is qualified.
●● A company agrees to lease a property to be used as a gambling
casino. State laws prohibit gambling. This particular contract would be
legally defined as
Answer: void.
