National PSI EXAM
PRACTICE TEST
CORRECT 100%
Real Estate law governing advertising applies to all of these EXCEPT:
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media - ANSWER A. In-house notes for showing are not seen by consumers an so do not have to
follow state or federal laws.
A couple accompanies a property inspector during an inspection of a house on which they have a
contract. The inspector points to a six-inch crack at the corner of a dining room window. The crack is an
example of :
A. A structural defect
B. A patent Defect
C. a latent defect
D. an environmental defect - ANSWER B. A patent defect is easily visible when inspecting a property.
(another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home contingent upon obtaining a no-down
payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was
accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for the property. In this
case, the veteran may:
A. withdraw from the sale with a three-point penalty
, B. withdraw from the sale on payment of a commission to the seller's broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000 - ANSWER C. When the purchase price of a property is greater
than the VA-issued (CRV), the veteran may pay the difference in cash to purchase the property because
secondary financing is somewhat restricted under VA regulations.
General real estate property taxes levied for the operation of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes - ANSWER B.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A document that protects against hidden risk such as forgeries and loss due to defects in title, subject to
specific exclusions, is called:
A. a title insurance policy
B. an abstract of title
C. a chain of title
D. a certificate of title - ANSWER A.
Last month's loan payment included $412.50 interest on a $60,000 loan balance. What is the annual rate
of interest?
A. 7.75%
B. 8.25%
PRACTICE TEST
CORRECT 100%
Real Estate law governing advertising applies to all of these EXCEPT:
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media - ANSWER A. In-house notes for showing are not seen by consumers an so do not have to
follow state or federal laws.
A couple accompanies a property inspector during an inspection of a house on which they have a
contract. The inspector points to a six-inch crack at the corner of a dining room window. The crack is an
example of :
A. A structural defect
B. A patent Defect
C. a latent defect
D. an environmental defect - ANSWER B. A patent defect is easily visible when inspecting a property.
(another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home contingent upon obtaining a no-down
payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was
accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for the property. In this
case, the veteran may:
A. withdraw from the sale with a three-point penalty
, B. withdraw from the sale on payment of a commission to the seller's broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000 - ANSWER C. When the purchase price of a property is greater
than the VA-issued (CRV), the veteran may pay the difference in cash to purchase the property because
secondary financing is somewhat restricted under VA regulations.
General real estate property taxes levied for the operation of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes - ANSWER B.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A document that protects against hidden risk such as forgeries and loss due to defects in title, subject to
specific exclusions, is called:
A. a title insurance policy
B. an abstract of title
C. a chain of title
D. a certificate of title - ANSWER A.
Last month's loan payment included $412.50 interest on a $60,000 loan balance. What is the annual rate
of interest?
A. 7.75%
B. 8.25%
