PSI Real Estate Practice Exam rated A
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - correct answer ✅$250,000
A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest - correct answer ✅a competitive
market analysis to determine the property's value.
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.
If an older building cannot be air-conditioned, it is an example of - correct answer
✅functional obsolescence.
All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT the - correct answer ✅straight-line method.
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.
,PSI Real Estate Practice Exam rated A
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - correct answer ✅demand
immediate payment of the entire note.
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.
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? - correct 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.
Federal Truth-in-Lending laws are also known as - correct answer ✅Regulation Z.
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
, PSI Real Estate Practice Exam rated A
recommend a mortgage banker, instead of a mortgage broker, for all of the
following reasons EXCEPT - correct answer ✅more variety of loan programs
available.
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 - correct answer
✅prepayment penalties and rebates.
The FHA functions MOST like - correct answer ✅an insurance company.
A property is encumbered by a first mortgage of $60,000 and a second mortgage
of $23,500. The property has just been sold at a foreclosure auction to a
speculating investor for $88,000. Assume that all costs of the foreclosure sale are
included in these balances. Which of the following statements is FALSE regarding
the distribution of funds? - correct answer ✅The second mortgagee receives
nothing unless he forced the foreclosure auction.
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.
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - correct answer ✅$250,000
A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest - correct answer ✅a competitive
market analysis to determine the property's value.
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.
If an older building cannot be air-conditioned, it is an example of - correct answer
✅functional obsolescence.
All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT the - correct answer ✅straight-line method.
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.
,PSI Real Estate Practice Exam rated A
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - correct answer ✅demand
immediate payment of the entire note.
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.
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? - correct 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.
Federal Truth-in-Lending laws are also known as - correct answer ✅Regulation Z.
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
, PSI Real Estate Practice Exam rated A
recommend a mortgage banker, instead of a mortgage broker, for all of the
following reasons EXCEPT - correct answer ✅more variety of loan programs
available.
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 - correct answer
✅prepayment penalties and rebates.
The FHA functions MOST like - correct answer ✅an insurance company.
A property is encumbered by a first mortgage of $60,000 and a second mortgage
of $23,500. The property has just been sold at a foreclosure auction to a
speculating investor for $88,000. Assume that all costs of the foreclosure sale are
included in these balances. Which of the following statements is FALSE regarding
the distribution of funds? - correct answer ✅The second mortgagee receives
nothing unless he forced the foreclosure auction.
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.
