PSI REAL ESTATE SALESPERSON PRACTICE EXAM CORRECT 100%

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. - ANSWER 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. - ANSWER Need for inspections to be completed within the time stated in the contract. 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. - ANSWER 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 - ANSWER $176,100 State laws differ on whether a buyer is entitled to know about 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. - ANSWER 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 - ANSWER 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 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. - ANSWER 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. - ANSWER Regulation Z.