PSI National Exam for Real Estate/ 544 Quizzes
with Certified Ans.
When land is conveyed to a trustee, the trustee may - Answer: do whatever is
permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded
with a counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can
accept the second offer if - Answer: the owner withdraws the counteroffer before
it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an
oral agreement for the purchase of the home. If a dispute over the terms arises
Page 1 of 76
,later, the agreement may be unenforceable because - Answer: the agreement
does not comply with the Statute of Frauds
Earnest money should be deposited into a trust account - Answer: in a timely
manner, according to state laws
A deed restriction is applicable to the activities of - Answer: all owners, present
and future
An easement can be terminated by - Answer: prescription
Depreciation is calculated based on the - Answer: cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? - Answer: Market data
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? - Answer: Seller
The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to - Answer: IRS
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,A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of
the following BEST describes this relationship? - Answer: Agency coupled with an
interest
If you own a building free and clear that is worth $115,000 and want an annual
return of 12%, what net income is needed each month? - Answer: $1,150
Usury laws were enacted to protect the - Answer: borrower
At the time of listing, the seller tells the listing agent they are moving because the
neighbor has loud parties every weekend.
The agent should - Answer: tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions,
that contract is deemed to be - Answer: breached
Which of the following is NOT a consideration in the definition of market value? -
Answer: Buyer and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest
in dual representation is - Answer: allowing a broker to designate separate
salespeople within the company as legal representatives of each of the clients.
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, Ownership of common stock in a corporation gives - Answer: an interest that is
classified as personal property
At the closing on June 15, the buyer is assuming a mortgage presently on the
property, on which the monthly interest charge
is currently $600. The seller has made the payment due on June 1. Assuming a VA
mortgage, what is the adjustment
made at closing? - Answer: Debit seller $300; credit buyer $300
Too much leverage may result in - Answer: negative cash flow
A major reason for buying and owning a condominium rather than a detached
single-family home is that - Answer: a condominium tends to be more affordable
An adjustable rate loan should include all of the following elements - Answer: 1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following -
Answer: 1. loan fees.
2 .the origination fee.
3. the annual percentage rate
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with Certified Ans.
When land is conveyed to a trustee, the trustee may - Answer: do whatever is
permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded
with a counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can
accept the second offer if - Answer: the owner withdraws the counteroffer before
it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an
oral agreement for the purchase of the home. If a dispute over the terms arises
Page 1 of 76
,later, the agreement may be unenforceable because - Answer: the agreement
does not comply with the Statute of Frauds
Earnest money should be deposited into a trust account - Answer: in a timely
manner, according to state laws
A deed restriction is applicable to the activities of - Answer: all owners, present
and future
An easement can be terminated by - Answer: prescription
Depreciation is calculated based on the - Answer: cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? - Answer: Market data
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? - Answer: Seller
The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to - Answer: IRS
Page 2 of 76
,A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of
the following BEST describes this relationship? - Answer: Agency coupled with an
interest
If you own a building free and clear that is worth $115,000 and want an annual
return of 12%, what net income is needed each month? - Answer: $1,150
Usury laws were enacted to protect the - Answer: borrower
At the time of listing, the seller tells the listing agent they are moving because the
neighbor has loud parties every weekend.
The agent should - Answer: tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions,
that contract is deemed to be - Answer: breached
Which of the following is NOT a consideration in the definition of market value? -
Answer: Buyer and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest
in dual representation is - Answer: allowing a broker to designate separate
salespeople within the company as legal representatives of each of the clients.
Page 3 of 76
, Ownership of common stock in a corporation gives - Answer: an interest that is
classified as personal property
At the closing on June 15, the buyer is assuming a mortgage presently on the
property, on which the monthly interest charge
is currently $600. The seller has made the payment due on June 1. Assuming a VA
mortgage, what is the adjustment
made at closing? - Answer: Debit seller $300; credit buyer $300
Too much leverage may result in - Answer: negative cash flow
A major reason for buying and owning a condominium rather than a detached
single-family home is that - Answer: a condominium tends to be more affordable
An adjustable rate loan should include all of the following elements - Answer: 1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following -
Answer: 1. loan fees.
2 .the origination fee.
3. the annual percentage rate
Page 4 of 76
