PSI NATIONAL REAL ESTATE LICENSING
ASSESSMENT COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
●● A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of
Answer: anticipation.
●● A commercial property lost value because a recently constructed
highway moved traffic away from the property. This is an example of
Answer: economic or external obsolescence.
●● According to the principle of progression, a three-bedroom, one-
story home is MOST likely to bring the highest sales price if located in a
neighborhood in which
Answer: most homes are larger than the sale home.
●● A prospective seller asks a salesperson to recommend a listing price
for a property. The salesperson should suggest
Answer: a competitive market analysis to determine the property's value.
,●● If all other factors are equal, in which location is a parking lot likely
to bring the highest sales price?
Answer: Business district zoned for a six story office building.
●● 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 if a loan applicant's current income seems adequate to qualify
for a certain loan, the Equal Credit Opportunity Act allows a lender to
refuse the loan as a high risk if the applicant's main source of income is
Answer: commission sales.
●● A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan Estimate
and Closing Disclosure forms from the lender, indicating the Annual
Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker
take in this situation?
Answer: Confirm with the seller's broker, the lender and the closing
entity that the closing must be delayed to allow for a new seven-day
waiting period because of the interest rate revision.
●● The FHA functions MOST like
, Answer: an insurance company.
●● Federal Truth-in-Lending laws are also known as
Answer: Regulation Z.
●● Which of these Federal laws regulates the advertisement of a lender's
credit terms (rates, payment, etc.)?
Answer: Regulation Z.
●● A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to
Answer: demand immediate payment of the entire note.
●● According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the ad
EXCEPT the
Answer: prepayment penalties and rebates.
●● An owner hired a construction company to build a swimming pool at
a new home. The owner failed to pay the bill once the work was
completed and the construction company filed a lien to obtain payment
of the debt. The encumbrance created is called
Answer: a mechanic's lien.
ASSESSMENT COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
●● A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of
Answer: anticipation.
●● A commercial property lost value because a recently constructed
highway moved traffic away from the property. This is an example of
Answer: economic or external obsolescence.
●● According to the principle of progression, a three-bedroom, one-
story home is MOST likely to bring the highest sales price if located in a
neighborhood in which
Answer: most homes are larger than the sale home.
●● A prospective seller asks a salesperson to recommend a listing price
for a property. The salesperson should suggest
Answer: a competitive market analysis to determine the property's value.
,●● If all other factors are equal, in which location is a parking lot likely
to bring the highest sales price?
Answer: Business district zoned for a six story office building.
●● 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 if a loan applicant's current income seems adequate to qualify
for a certain loan, the Equal Credit Opportunity Act allows a lender to
refuse the loan as a high risk if the applicant's main source of income is
Answer: commission sales.
●● A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan Estimate
and Closing Disclosure forms from the lender, indicating the Annual
Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker
take in this situation?
Answer: Confirm with the seller's broker, the lender and the closing
entity that the closing must be delayed to allow for a new seven-day
waiting period because of the interest rate revision.
●● The FHA functions MOST like
, Answer: an insurance company.
●● Federal Truth-in-Lending laws are also known as
Answer: Regulation Z.
●● Which of these Federal laws regulates the advertisement of a lender's
credit terms (rates, payment, etc.)?
Answer: Regulation Z.
●● A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to
Answer: demand immediate payment of the entire note.
●● According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the ad
EXCEPT the
Answer: prepayment penalties and rebates.
●● An owner hired a construction company to build a swimming pool at
a new home. The owner failed to pay the bill once the work was
completed and the construction company filed a lien to obtain payment
of the debt. The encumbrance created is called
Answer: a mechanic's lien.
