Real Estate National PSI practice exam 2| 80 QUESTIONS| WITH COMPLETE SOLUTIONS

What is the duration of a home warranty's coverage? 1. the expected life of the purchaser 2. the expected life of the product or system covered 3. as disclosed in the contract that offers the warranty 4. a minimum of 5 years or the duration of the purchaser's ownership, whichever is shorter correct answer: 3 The Civil Rights Act of 1866 prohibits any type of discrimination based on: 1. gender. 2. race. 3. race and gender. 4. religion. correct answer: 2 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 answer: 4 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: 1. substitution. 2. contribution. 3. conformity. 4. anticipation. correct answer: 4 A seller's statement in a property disclosure document means: 1. the owner is disclosing known latent defects. 2. nothing, because the seller will not be responsible for any defects. 3. the property is fully suitable for the uses contemplated by the buyer. 4. the owner creates a warranty that there are no defects in the property. correct answer: 1 A major difference between freehold and nonfreehold estates is that all freehold estates: 1. are of indeterminable duration. 2. terminate upon the death of the person on whose life they are based. 3. are inheritable by the holder's heirs. 4. are estates for a fixed term. correct answer: 1 Which of the following real estate contracts is a service contract? 1. a purchase agreement 2. a listing agreement 3. an option contract 4. a mortgage correct answer: 2 A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with: 1. the builder. 2. the buyers. 3. the builder and the buyers. 4. neither the builder nor the buyers. correct answer: 1 When a home is purchased using an ARM, the