PSI NATIONAL CORE EXAM TEST QUESTIONS AND
ANSWERS GRADED A+
✔✔All the following are protected classifications except - ✔✔Homosexuals
✔✔As licensees usually work as independent contractors, a broker will have a contract
for the independent contractor which (for federal purposes) must outline - ✔✔Statement
that FICA (taxes) are the associates responsibility
✔✔In a rescission agreement: - ✔✔All parties return to original position and earnest
money is refunded
✔✔Agent A has been working at Brokerage for 4 years. Agent has listed and sold many
but desires to try industrial office sales. What is the best course of action for houses
Agent A? - ✔✔Move license to an industrial/office
company and train under them
✔✔A seller is listing their $350,000 house. They state their property tax bill is $1,110
per year. What should the agent do? - ✔✔Verify the information with the county
✔✔A home warranty will typically provide coverage for which of the following: -
✔✔Electrical and plumbing systems
✔✔The local governments have authority to ensure that properties are being built
properly. Under the authority of police power, the government can adapt and implement:
- ✔✔Construction standards
✔✔A married couple owns a property together as tenancy in entirety. Which of the
following about selling a property as tenancy in entirety is true? - ✔✔Both spouses must
sign the conveyance
✔✔What statement is true about asbestos removal - ✔✔Encapsulation is the safest
tactic
✔✔An easement is - ✔✔The right to use another's land
✔✔The amount to list a property is best determined by: - ✔✔Competitive Market
Analysis (CMA)
✔✔Interest on a security deposit Starts: - ✔✔The month the Property Manager receives
the security deposit
✔✔Racial discrimination is allowed: - ✔✔NEVER
, ✔✔An agent goes door knocking in a subdivision. As part of his presentation, he makes
mention of the fact that many families with children are moving into the area and that
house prices are rising. He then recommends the owner should sell because he has a
nice quiet subdivision of older, mature families that are quiet. Is this discrimination -
✔✔Yes- he is blockbusting by playing on the fears of consumers of protected class.
✔✔The purpose of an Agency Disclosure is: - ✔✔To inform the consumer of their
representation choices
✔✔The purpose of Regulation Z is: - ✔✔Disclose loan costs
✔✔interest rates on credit cards, loans, car loans, etc. are established by: - ✔✔Usury
✔✔The ways to terminate an Agency Agreement include all except: - ✔✔Unilateral
cancellatio
✔✔Title Insurance covers all matters that are: - ✔✔Itemized on the title report
✔✔A purchaser in the secondary mortgage market is - ✔✔Federal National Mortgage
Association
✔✔While performing an analysis of value for listing a house, all of the following would
be
included in the Market Data Approach except: - ✔✔Capitalization
✔✔A developer of a subdivision does not want "clotheslines" to be installed in the
houses in the subdivision. A way for the developer to have control to limit and fine
people who want to install clotheslines would be: - ✔✔Covenant
✔✔Seller is selling their property. Their outstanding loan balance is $240,000. The
house has a value of $200,000. Assuming the seller pays realty fees, closing fees, state
fees, the amount left over is only $180,000 to pay off the loan. What statement -
✔✔Lender may pursue the seller for a deficiency judgment of $60,000
✔✔A seller has received an offer at 80% of list price. Seller counter offers at 90% of list
the response, an offer of 98% of list price comes in from another buyer. The seller
wishes to sell to the second buyer. What is true? - ✔✔Withdraw the first buyer's
counter-offer and then accept the second offer
✔✔A buyer makes an offer on a property that the seller accepts. While waiting for an
inspection, the buyers see another property that they like even better. They draft an
offer on that property which is accepted by that seller. What statement about the offers
is true? - ✔✔Both offers are Valid Offers
ANSWERS GRADED A+
✔✔All the following are protected classifications except - ✔✔Homosexuals
✔✔As licensees usually work as independent contractors, a broker will have a contract
for the independent contractor which (for federal purposes) must outline - ✔✔Statement
that FICA (taxes) are the associates responsibility
✔✔In a rescission agreement: - ✔✔All parties return to original position and earnest
money is refunded
✔✔Agent A has been working at Brokerage for 4 years. Agent has listed and sold many
but desires to try industrial office sales. What is the best course of action for houses
Agent A? - ✔✔Move license to an industrial/office
company and train under them
✔✔A seller is listing their $350,000 house. They state their property tax bill is $1,110
per year. What should the agent do? - ✔✔Verify the information with the county
✔✔A home warranty will typically provide coverage for which of the following: -
✔✔Electrical and plumbing systems
✔✔The local governments have authority to ensure that properties are being built
properly. Under the authority of police power, the government can adapt and implement:
- ✔✔Construction standards
✔✔A married couple owns a property together as tenancy in entirety. Which of the
following about selling a property as tenancy in entirety is true? - ✔✔Both spouses must
sign the conveyance
✔✔What statement is true about asbestos removal - ✔✔Encapsulation is the safest
tactic
✔✔An easement is - ✔✔The right to use another's land
✔✔The amount to list a property is best determined by: - ✔✔Competitive Market
Analysis (CMA)
✔✔Interest on a security deposit Starts: - ✔✔The month the Property Manager receives
the security deposit
✔✔Racial discrimination is allowed: - ✔✔NEVER
, ✔✔An agent goes door knocking in a subdivision. As part of his presentation, he makes
mention of the fact that many families with children are moving into the area and that
house prices are rising. He then recommends the owner should sell because he has a
nice quiet subdivision of older, mature families that are quiet. Is this discrimination -
✔✔Yes- he is blockbusting by playing on the fears of consumers of protected class.
✔✔The purpose of an Agency Disclosure is: - ✔✔To inform the consumer of their
representation choices
✔✔The purpose of Regulation Z is: - ✔✔Disclose loan costs
✔✔interest rates on credit cards, loans, car loans, etc. are established by: - ✔✔Usury
✔✔The ways to terminate an Agency Agreement include all except: - ✔✔Unilateral
cancellatio
✔✔Title Insurance covers all matters that are: - ✔✔Itemized on the title report
✔✔A purchaser in the secondary mortgage market is - ✔✔Federal National Mortgage
Association
✔✔While performing an analysis of value for listing a house, all of the following would
be
included in the Market Data Approach except: - ✔✔Capitalization
✔✔A developer of a subdivision does not want "clotheslines" to be installed in the
houses in the subdivision. A way for the developer to have control to limit and fine
people who want to install clotheslines would be: - ✔✔Covenant
✔✔Seller is selling their property. Their outstanding loan balance is $240,000. The
house has a value of $200,000. Assuming the seller pays realty fees, closing fees, state
fees, the amount left over is only $180,000 to pay off the loan. What statement -
✔✔Lender may pursue the seller for a deficiency judgment of $60,000
✔✔A seller has received an offer at 80% of list price. Seller counter offers at 90% of list
the response, an offer of 98% of list price comes in from another buyer. The seller
wishes to sell to the second buyer. What is true? - ✔✔Withdraw the first buyer's
counter-offer and then accept the second offer
✔✔A buyer makes an offer on a property that the seller accepts. While waiting for an
inspection, the buyers see another property that they like even better. They draft an
offer on that property which is accepted by that seller. What statement about the offers
is true? - ✔✔Both offers are Valid Offers
