PSI NATIONAL REAL ESTATE COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS GRADED A+
✔✔A listing which is illegal in some states, and allows the broker to keep all proceeds of
the sale in excess of a net amount is called - ✔✔net listing.
✔✔A listing contract may be terminated if - ✔✔both parties agree
✔✔Ordering a meal in a restaurant and being expected to pay for it would be an
example of what type
of contract? - ✔✔implied
✔✔A contract in which the owner gives a purchaser the right to purchase within a
specified time period
is called - ✔✔an option
✔✔A buyer submits an offer to purchase accompanied by earnest money in the amount
of $1000. The
seller accepts, but later changes his mind. What happens to the earnest money? -
✔✔The seller must return the $1000 plus a like amount (that is, $2000 total) to the
buyer
✔✔In what type of listing does the seller hire one broker but retains the right to sell the
property
himself without paying a commission to the broker? - ✔✔exclusive agency listing
✔✔A sales contract in which either party can sue to have the sale completed should the
other party
default on the contract is called - ✔✔specific performance contract
✔✔Conditions that must be met before a sales contract is fully enforceable are called -
✔✔contingencies
✔✔True or False
The Purchase Agreement is the basis for the closing statement. - ✔✔True
✔✔A Bill of Sale is used for: - ✔✔personal property.
✔✔What type of interest, if any, does a purchaser have in a property he has contracted
to buy, but the
sale has not yet been executed? - ✔✔equitable title
,✔✔The term that means that the contract must be performed within the time limit
specified - ✔✔Time is of the essence
✔✔In the closing statement, new loan proceeds are listed as - ✔✔credit to the buyer
✔✔A contract is signed for the purchase of a house, but before the sale is closed the
seller dies. The heirs do not wish to sell. The buyer can - ✔✔sue for specific
performance
✔✔Another term for "offer and acceptance" is: - ✔✔meeting of the minds.
✔✔A contract that is signed by a 16 year old is - ✔✔voidable
✔✔Which of the following is an example of a unilateral contract? - ✔✔option
✔✔A contract is signed between buyer and seller. The contract would become
impossible to perform if - ✔✔the house burns down
✔✔A purchase money mortgage is used in - ✔✔owner financing
✔✔If a property is sold for an illegal purpose, that contract is - ✔✔void
✔✔When one party has substantially performed the terms of the contract, but has not
completed every
detail exactly as the contract states, this is known as - ✔✔substantial performance
✔✔A buyer purchases a property "as is". The seller and the broker both knew that the
house had bad wiring but did not tell the buyer. Which of the following statements is
true? - ✔✔Selling "as is" does not relieve the seller or the agent of the duty to disclose
material
defects
✔✔An example of a service contract is - ✔✔listing agreement
✔✔A contract for the sale of a property which does not state the consideration to be
paid and is not signed by the parties would be - ✔✔void
✔✔When does a listing contract terminate? - ✔✔upon expiration of the contract date.
✔✔A broker in listing a house, wanted an exclusive right to sell the property for 90 days.
The seller wanted to retain the right to sell the property himself. What type of listing
would be best? - ✔✔exclusive agency
, ✔✔Procuring cause would not be required in order for a broker to receive a commission
in a - ✔✔exclusive right to sell listing
✔✔A buyer becomes obligated when - ✔✔the agent presents him with the accepted
contract
✔✔A purchase agreement is signed for the purchase of a $400,000 house. A deposit of
$10,000 is given to the broker and put in his escrow account. A month later, the buyer
and seller agree not to go through with the sale. Which of the following should the agent
do? - ✔✔The broker must return the deposit to the buyer.
✔✔A contract signed under duress is - ✔✔voidable
✔✔True or False
Handicap status does NOT include illegal drug users. - ✔✔True
✔✔Refusing to make loans or issue insurance policies in certain areas is known as -
✔✔redlining
✔✔Is a person who is recovered from mental illness protected by the handicap status? -
✔✔Yes.
✔✔True or False
A pregnant woman would be protected under the familial status class - ✔✔True
✔✔Legislation that was specifically designed to provide for a national policy of fair
housing was the: - ✔✔Fair Housing Act of 1968.
✔✔True or False
Appraisers are not bound by the fair housing laws. - ✔✔False
✔✔Panic selling for financial gain by insinuating that a minority group is moving into a
neighborhood is known as - ✔✔blockbusting.
✔✔What is the penalty for a second fair housing offense within the past 5 years? -
✔✔$27,500
✔✔What are the 7 protected classes? - ✔✔race, color, religion, national origin, sex,
familial status, handicapped
✔✔What act prohibits discrimination on the basis of race, color, nationality, sex, marital
status or age
in the granting of credit? - ✔✔Equal Credit Opportunity Act
QUESTIONS AND ANSWERS GRADED A+
✔✔A listing which is illegal in some states, and allows the broker to keep all proceeds of
the sale in excess of a net amount is called - ✔✔net listing.
✔✔A listing contract may be terminated if - ✔✔both parties agree
✔✔Ordering a meal in a restaurant and being expected to pay for it would be an
example of what type
of contract? - ✔✔implied
✔✔A contract in which the owner gives a purchaser the right to purchase within a
specified time period
is called - ✔✔an option
✔✔A buyer submits an offer to purchase accompanied by earnest money in the amount
of $1000. The
seller accepts, but later changes his mind. What happens to the earnest money? -
✔✔The seller must return the $1000 plus a like amount (that is, $2000 total) to the
buyer
✔✔In what type of listing does the seller hire one broker but retains the right to sell the
property
himself without paying a commission to the broker? - ✔✔exclusive agency listing
✔✔A sales contract in which either party can sue to have the sale completed should the
other party
default on the contract is called - ✔✔specific performance contract
✔✔Conditions that must be met before a sales contract is fully enforceable are called -
✔✔contingencies
✔✔True or False
The Purchase Agreement is the basis for the closing statement. - ✔✔True
✔✔A Bill of Sale is used for: - ✔✔personal property.
✔✔What type of interest, if any, does a purchaser have in a property he has contracted
to buy, but the
sale has not yet been executed? - ✔✔equitable title
,✔✔The term that means that the contract must be performed within the time limit
specified - ✔✔Time is of the essence
✔✔In the closing statement, new loan proceeds are listed as - ✔✔credit to the buyer
✔✔A contract is signed for the purchase of a house, but before the sale is closed the
seller dies. The heirs do not wish to sell. The buyer can - ✔✔sue for specific
performance
✔✔Another term for "offer and acceptance" is: - ✔✔meeting of the minds.
✔✔A contract that is signed by a 16 year old is - ✔✔voidable
✔✔Which of the following is an example of a unilateral contract? - ✔✔option
✔✔A contract is signed between buyer and seller. The contract would become
impossible to perform if - ✔✔the house burns down
✔✔A purchase money mortgage is used in - ✔✔owner financing
✔✔If a property is sold for an illegal purpose, that contract is - ✔✔void
✔✔When one party has substantially performed the terms of the contract, but has not
completed every
detail exactly as the contract states, this is known as - ✔✔substantial performance
✔✔A buyer purchases a property "as is". The seller and the broker both knew that the
house had bad wiring but did not tell the buyer. Which of the following statements is
true? - ✔✔Selling "as is" does not relieve the seller or the agent of the duty to disclose
material
defects
✔✔An example of a service contract is - ✔✔listing agreement
✔✔A contract for the sale of a property which does not state the consideration to be
paid and is not signed by the parties would be - ✔✔void
✔✔When does a listing contract terminate? - ✔✔upon expiration of the contract date.
✔✔A broker in listing a house, wanted an exclusive right to sell the property for 90 days.
The seller wanted to retain the right to sell the property himself. What type of listing
would be best? - ✔✔exclusive agency
, ✔✔Procuring cause would not be required in order for a broker to receive a commission
in a - ✔✔exclusive right to sell listing
✔✔A buyer becomes obligated when - ✔✔the agent presents him with the accepted
contract
✔✔A purchase agreement is signed for the purchase of a $400,000 house. A deposit of
$10,000 is given to the broker and put in his escrow account. A month later, the buyer
and seller agree not to go through with the sale. Which of the following should the agent
do? - ✔✔The broker must return the deposit to the buyer.
✔✔A contract signed under duress is - ✔✔voidable
✔✔True or False
Handicap status does NOT include illegal drug users. - ✔✔True
✔✔Refusing to make loans or issue insurance policies in certain areas is known as -
✔✔redlining
✔✔Is a person who is recovered from mental illness protected by the handicap status? -
✔✔Yes.
✔✔True or False
A pregnant woman would be protected under the familial status class - ✔✔True
✔✔Legislation that was specifically designed to provide for a national policy of fair
housing was the: - ✔✔Fair Housing Act of 1968.
✔✔True or False
Appraisers are not bound by the fair housing laws. - ✔✔False
✔✔Panic selling for financial gain by insinuating that a minority group is moving into a
neighborhood is known as - ✔✔blockbusting.
✔✔What is the penalty for a second fair housing offense within the past 5 years? -
✔✔$27,500
✔✔What are the 7 protected classes? - ✔✔race, color, religion, national origin, sex,
familial status, handicapped
✔✔What act prohibits discrimination on the basis of race, color, nationality, sex, marital
status or age
in the granting of credit? - ✔✔Equal Credit Opportunity Act
