PSI PRACTICE EXAM STUDY GUIDE WITH CORRECT
ANSWERS!!
Providing buyers with a limited set of choices based upon the real estate
professionals decision, not the buyers instructions, is known as
blockbusting
redlining
puffing
steering
answers: Steering
An appraiser provides a homeowner the current value of their home at $ 525,000
The homeowner owes $ 330,00 on their primary mortgage has an equity line at $
75,000 and is needing a new roof estimated at $ 12,500 What is the current equity
they currently in this home ?
$ 107,500
$ 195,000
$ 125,000
$ 120,000
answers: $120,000
$75,000+$330,000 = 405,000
$525,000-$405,000= $120,000
An executed sales contract may be assigned under what conditions ?
,Unless the contract prohibits it . Under no conditions.
Only if the contract provides for it . Only with the seller's permission .
answers: Under no conditions
Executed contracts are closed and cannot be assigned. Only executory contract
may be assigned.
A quitclaim deed can be used to convey:
Both implied and express title warranty,
Only certain types of estates in property,
Full title warranty,
Any interest in real property
answers: Any interest in real property
Transfers, whatever ownership the grantor has in the property. It is typically used
to clear title clouds, or for transfers in a divorce.
A buyers agent who is calling to set up a showing on a listed property, should
disclose the fact that the agent represents the buyer so that the listing agent can
avoid:
Divulging confidential info
,Paying commission
A dual agency
Disclosing material fax
answers: Divulging, confidential information
If a seller has already accepted one offer and another offer comes in, the listing
agent should:
Submit the new offer
Hold the new offer
Reject the new offer
Submit, the new offer if better than the current contract
answers: Submit the new offer
Listing agents must promptly submit all written offers for real property to the seller
up to closing. In this situation, the seller may want to accept a "back up"contract.
An agreement between competent parties based upon legal consideration creating
legally enforceable duties and obligations is a definition of:
Specific performance
Legality of object
Offer
Contract
, answers: Contract
Four elements are needed for a contract
Competent parties
Mutual consent
Legal consideration
Legal object
A home built before 1978 has been confirmed to contain peeling, lead-based paint.
According to the Residential Lead Based-Paint Hazard Reduction Act, the sellers:
Are only required to remove the lead-based paint if they were leasing rather than
selling,
Are required to remove the lead base paint prior to closing,
Are exempt from the law since the house was built before 1978,
Are not required to remove the lead-based paint prior to closing
answers: Are not required to remove the lead-based paint prior to closing
Lead-base paint law requires the seller to disclose If the home may have lead based
paint and give the buyer the required booklet. It does not require removal of paint.
The cost approach an appraisal is based on:
Value in use
Value in exchange
ANSWERS!!
Providing buyers with a limited set of choices based upon the real estate
professionals decision, not the buyers instructions, is known as
blockbusting
redlining
puffing
steering
answers: Steering
An appraiser provides a homeowner the current value of their home at $ 525,000
The homeowner owes $ 330,00 on their primary mortgage has an equity line at $
75,000 and is needing a new roof estimated at $ 12,500 What is the current equity
they currently in this home ?
$ 107,500
$ 195,000
$ 125,000
$ 120,000
answers: $120,000
$75,000+$330,000 = 405,000
$525,000-$405,000= $120,000
An executed sales contract may be assigned under what conditions ?
,Unless the contract prohibits it . Under no conditions.
Only if the contract provides for it . Only with the seller's permission .
answers: Under no conditions
Executed contracts are closed and cannot be assigned. Only executory contract
may be assigned.
A quitclaim deed can be used to convey:
Both implied and express title warranty,
Only certain types of estates in property,
Full title warranty,
Any interest in real property
answers: Any interest in real property
Transfers, whatever ownership the grantor has in the property. It is typically used
to clear title clouds, or for transfers in a divorce.
A buyers agent who is calling to set up a showing on a listed property, should
disclose the fact that the agent represents the buyer so that the listing agent can
avoid:
Divulging confidential info
,Paying commission
A dual agency
Disclosing material fax
answers: Divulging, confidential information
If a seller has already accepted one offer and another offer comes in, the listing
agent should:
Submit the new offer
Hold the new offer
Reject the new offer
Submit, the new offer if better than the current contract
answers: Submit the new offer
Listing agents must promptly submit all written offers for real property to the seller
up to closing. In this situation, the seller may want to accept a "back up"contract.
An agreement between competent parties based upon legal consideration creating
legally enforceable duties and obligations is a definition of:
Specific performance
Legality of object
Offer
Contract
, answers: Contract
Four elements are needed for a contract
Competent parties
Mutual consent
Legal consideration
Legal object
A home built before 1978 has been confirmed to contain peeling, lead-based paint.
According to the Residential Lead Based-Paint Hazard Reduction Act, the sellers:
Are only required to remove the lead-based paint if they were leasing rather than
selling,
Are required to remove the lead base paint prior to closing,
Are exempt from the law since the house was built before 1978,
Are not required to remove the lead-based paint prior to closing
answers: Are not required to remove the lead-based paint prior to closing
Lead-base paint law requires the seller to disclose If the home may have lead based
paint and give the buyer the required booklet. It does not require removal of paint.
The cost approach an appraisal is based on:
Value in use
Value in exchange
