PSI Michigan real estate exam practice
test
In the sale of property, there is often confusion over whether an item is a fixture or personal property.
What is the best way to avoid this confusion? - correct answer ✔✔Specify questionable items of
property in the written sales contract.
Three people buy a house as tenants in common. Subsequently, two of the owners want to sell, but the
third discourages each potential purchaser. The two owners who wish to sell the house can - correct
answer ✔✔file an action for partition against the third owner.
A major difference between freehold and nonfreehold estates is that all freehold estates - correct
answer ✔✔are of indeterminable duration.
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? - correct answer
✔✔Tenancy at will.
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the
permission permanent in case he dislikes others who might move next door in the future. What should
he give his neighbor? - correct answer ✔✔A license.
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern
part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access
and receives a deed. This is an easement - correct answer ✔✔appurtenant.
A deed restriction is applicable to the activities of - correct answer ✔✔present and future owners.
Ordinances that specify construction standards are - correct answer ✔✔building codes.
An environmental impact statement typically describes the effects of a proposed project on factors such
as - correct answer ✔✔public health and safety.
, Building codes are - correct answer ✔✔ordinances that specify construction standards.
A competitive market analysis takes into consideration - correct answer ✔✔square footage of the
subject property.
A formal appraisal will ALWAYS be REQUIRED when the - correct answer ✔✔lender wants to sell the
mortgage to the secondary market.
Depreciation is calculated based on the - correct answer ✔✔cost of the building only.
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? -
correct answer ✔✔The first sold.
All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT
the - correct answer ✔✔straight-line method.
An appraiser MUST be licensed or certified to handle Federally related work on residential property
valued at more than - correct answer ✔✔$250,000.
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 - correct answer ✔✔commission sales.
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is
documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead
of a mortgage broker, for all of the following reasons EXCEPT - correct answer ✔✔more variety of loan
programs available.
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 - correct answer
✔✔foreclosure is usually simpler and faster.
test
In the sale of property, there is often confusion over whether an item is a fixture or personal property.
What is the best way to avoid this confusion? - correct answer ✔✔Specify questionable items of
property in the written sales contract.
Three people buy a house as tenants in common. Subsequently, two of the owners want to sell, but the
third discourages each potential purchaser. The two owners who wish to sell the house can - correct
answer ✔✔file an action for partition against the third owner.
A major difference between freehold and nonfreehold estates is that all freehold estates - correct
answer ✔✔are of indeterminable duration.
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? - correct answer
✔✔Tenancy at will.
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the
permission permanent in case he dislikes others who might move next door in the future. What should
he give his neighbor? - correct answer ✔✔A license.
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern
part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access
and receives a deed. This is an easement - correct answer ✔✔appurtenant.
A deed restriction is applicable to the activities of - correct answer ✔✔present and future owners.
Ordinances that specify construction standards are - correct answer ✔✔building codes.
An environmental impact statement typically describes the effects of a proposed project on factors such
as - correct answer ✔✔public health and safety.
, Building codes are - correct answer ✔✔ordinances that specify construction standards.
A competitive market analysis takes into consideration - correct answer ✔✔square footage of the
subject property.
A formal appraisal will ALWAYS be REQUIRED when the - correct answer ✔✔lender wants to sell the
mortgage to the secondary market.
Depreciation is calculated based on the - correct answer ✔✔cost of the building only.
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? -
correct answer ✔✔The first sold.
All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT
the - correct answer ✔✔straight-line method.
An appraiser MUST be licensed or certified to handle Federally related work on residential property
valued at more than - correct answer ✔✔$250,000.
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 - correct answer ✔✔commission sales.
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is
documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead
of a mortgage broker, for all of the following reasons EXCEPT - correct answer ✔✔more variety of loan
programs available.
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 - correct answer
✔✔foreclosure is usually simpler and faster.
