REVIEW National Exam (PSI) 100 EXAM
QUESTIONS AND ANSWERS 100% PASS
The Simpsons are buying a five-acre tract that has always been part of a larger parcel.
When the owners of the large acreage decided to subdivide it, they needed to have a
legal description created for the five-acre lot. What was used as the starting point for
creating that legal description?
A benchmark
A plat map
A survey
Metes - ✔✔ - A survey
Over how many years is a residential income-producing property depreciated?
27.5 years
29 years
39 years
40 years - ✔✔ - 27.5 years
Regina purchases a farm with 80 acres and owns her property in severalty. What does
this mean for the company that purchased the mineral rights from the previous owner?
Regina and the company that purchased the mineral rights are automatically tenants in
common, since they share ownership of the property.
Regina didn't purchase the mineral rights, which have been severed from the property
by the previous owner.
Regina included the mineral rights in her purchase agreement, since she could not
otherwise own the property in severalty.
,Regina is the sole owner, and the company must accept a fractional portion of the sales
price in return for forfeiting the mineral rights. - ✔✔ - Regina didn't purchase the mineral
rights, which have been severed from the property by the previous owner.
Select the statement that accurately depicts property ownership income tax
implications.
During the ownership stage, both investors and homeowners may be able to deduct
mortgage interest paid.
First-time home buyers can deduct closing costs paid.
Homeowners can deduct depreciation during the ownership stage; investors can't.
When homeowners sell their property, they'll need to calculate the depreciable basis on
the property. - ✔✔ - During the ownership stage, both investors and homeowners may
be able to deduct mortgage interest paid.
Corinne, an escrow agent, is preparing for the Thomas/Trenton closing in four days.
Which of these documents will Corinne prepare?
She'll prepare a seller net sheet to disclose the seller's net profit on the sale.
Working with the lender, she'll prepare the Loan Estimate, which details the costs the
buyer and seller will pay at closing.
Working with the lender, she'll prepare the settlement statement, which details the
costs the buyer and seller will have at closing.
Working with the title company attorney, she'll prepare the preliminary title commitment.
- ✔✔ - Working with the lender, she'll prepare the settlement statement, which details
the costs the buyer and seller will have at closing.
Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified
that he couldn't take possession of or title to the property. What likely happened?
The lender received another offer higher than the one Farquhar made at the auction.
, The lender revised the previous owners' loan and permitted them to remain in the
property.
The other lien holders protested the auction sale, so the lender retained the property.
The previous owners redeemed the property by paying all mortgage payments and
fees. - ✔✔ - The previous owners redeemed the property by paying all mortgage
payments and fees.
Wendell just listed Barb's home. Barb told him that there weren't any easements on the
property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility
relative to the disclosure of any easements?
He only needs to disclose easements if they're known.
He should commission a survey if an existing one can't be found.
He should do a title search to confirm any easements.
He should require his seller to do online research in the county records database. - ✔✔
- He only needs to disclose easements if they're known.
A closing agent has several duties to perform both before and after the closing. Which
of the following is a task the closing agent must complete after the closing?
Obtain title insurance
Pay the existing loan off
Perform a title search
Prepare a closing statement - ✔✔ - Pay the existing loan off
The title search, closing statement preparation, and title insurance purchase must all be
completed prior to closing. After closing, the closing agent makes arrangements to pay
off the seller's existing loan with the proceeds from the buyer. "We're recorded and
funded" is music to a licensee's ears.
Which of the following situations may result in inverse condemnation?
QUESTIONS AND ANSWERS 100% PASS
The Simpsons are buying a five-acre tract that has always been part of a larger parcel.
When the owners of the large acreage decided to subdivide it, they needed to have a
legal description created for the five-acre lot. What was used as the starting point for
creating that legal description?
A benchmark
A plat map
A survey
Metes - ✔✔ - A survey
Over how many years is a residential income-producing property depreciated?
27.5 years
29 years
39 years
40 years - ✔✔ - 27.5 years
Regina purchases a farm with 80 acres and owns her property in severalty. What does
this mean for the company that purchased the mineral rights from the previous owner?
Regina and the company that purchased the mineral rights are automatically tenants in
common, since they share ownership of the property.
Regina didn't purchase the mineral rights, which have been severed from the property
by the previous owner.
Regina included the mineral rights in her purchase agreement, since she could not
otherwise own the property in severalty.
,Regina is the sole owner, and the company must accept a fractional portion of the sales
price in return for forfeiting the mineral rights. - ✔✔ - Regina didn't purchase the mineral
rights, which have been severed from the property by the previous owner.
Select the statement that accurately depicts property ownership income tax
implications.
During the ownership stage, both investors and homeowners may be able to deduct
mortgage interest paid.
First-time home buyers can deduct closing costs paid.
Homeowners can deduct depreciation during the ownership stage; investors can't.
When homeowners sell their property, they'll need to calculate the depreciable basis on
the property. - ✔✔ - During the ownership stage, both investors and homeowners may
be able to deduct mortgage interest paid.
Corinne, an escrow agent, is preparing for the Thomas/Trenton closing in four days.
Which of these documents will Corinne prepare?
She'll prepare a seller net sheet to disclose the seller's net profit on the sale.
Working with the lender, she'll prepare the Loan Estimate, which details the costs the
buyer and seller will pay at closing.
Working with the lender, she'll prepare the settlement statement, which details the
costs the buyer and seller will have at closing.
Working with the title company attorney, she'll prepare the preliminary title commitment.
- ✔✔ - Working with the lender, she'll prepare the settlement statement, which details
the costs the buyer and seller will have at closing.
Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified
that he couldn't take possession of or title to the property. What likely happened?
The lender received another offer higher than the one Farquhar made at the auction.
, The lender revised the previous owners' loan and permitted them to remain in the
property.
The other lien holders protested the auction sale, so the lender retained the property.
The previous owners redeemed the property by paying all mortgage payments and
fees. - ✔✔ - The previous owners redeemed the property by paying all mortgage
payments and fees.
Wendell just listed Barb's home. Barb told him that there weren't any easements on the
property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility
relative to the disclosure of any easements?
He only needs to disclose easements if they're known.
He should commission a survey if an existing one can't be found.
He should do a title search to confirm any easements.
He should require his seller to do online research in the county records database. - ✔✔
- He only needs to disclose easements if they're known.
A closing agent has several duties to perform both before and after the closing. Which
of the following is a task the closing agent must complete after the closing?
Obtain title insurance
Pay the existing loan off
Perform a title search
Prepare a closing statement - ✔✔ - Pay the existing loan off
The title search, closing statement preparation, and title insurance purchase must all be
completed prior to closing. After closing, the closing agent makes arrangements to pay
off the seller's existing loan with the proceeds from the buyer. "We're recorded and
funded" is music to a licensee's ears.
Which of the following situations may result in inverse condemnation?
