Affiliate Broker TN National Exam Practice
(PSI) Questions with Correct Answers
1. The fewer properties on the market, the greater the scarcity. What's the effect on
prices?
Prices are pushed upward
1. Frank owns a property on which there is walkway to the beach shared by his
neighbors on either side. What is Frank's property?
· Servient estate
1. Simon is looking for a facility for a large grocery distribution operation. He found
two options, one of which is offering him a triple net lease, and the other an absolute net
lease. Why is his attorney arguing against the latter?
· An absolute net lease has no legal defenses if Simon fails to pay.
1. The Johnsons have owned a small restaurant for more than 20 years. It's open for
lunch and dinner six days a week, and 80% of its weekday revenue comes from the
happy hour drink and appetizer specials. The town in which their restaurant is located
recently constructed a new middle school and stripped the liquor license from the
Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet
from a school property. The Johnsons have accused the town of _____.
· Inverse condemnation
1. Local authorities lack police power over which of the following?
· Federal government construction projects
,1. The economic principle of ______ says that when there are two houses in the same
neighborhood with the same size, appeal, and utility, the lower-priced one will tend to
sell first.
· Substitution
1. Which type of agent is an escrow officer?
Limited agent
1. Which of these regarding the impact of the Brownfields Law is true?
· The Smiths have discovered chemical contamination on the property deed to them by their
late parents. The Brownfields Law may provide funds to help them clean up the site.
1. If a property's income value is $200,000 and it's earning a net operating income of
$40,000, what is the cap rate?
· 20%
1. A property is 330 feet long by 100 feet wide. How many square feet is the property?
· 33,000
1. Picture a drawing of a section of land. Where is Township 1 located?
· Upper right (NE) corner
1. Donald and Martina decided to purchase a newly built home, and their agent, Ed,
recommended that they get a professional home inspection done. The couple tells Ed
that they thought inspections were only for older homes. How should Ed respond to
that?
· Ed should remind them that every dwelling, no matter the age or size, should have a home
inspection.
, 1. Which one of these statements accurately represents one of the required elements in a
deed?
· The deed includes an act of conveyance.
1. Alison and Brent are financing their house purchase of $232,500 with an FHA loan.
Their credit score qualifies them for the minimum down payment. What do they need to
put down?
· $8,137.50
1. Dean and Michael have an oral contract. Dean said he would sell Michael his bike in
return for Michael's vinyl album collection. What does the record collection represent?
· Consideration
1. Which of the following is true about the security of your clients' information?
· Client data can be compromised if the brokerage's computer system is compromised.
1. The Crows gave their son, Gibson, the family property, so long as he doesn't join his
friend's rock band. If he joins the band, the property goes back to them. What type of
estate is this?
· Fee simple determinable
1. A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly
principal and interest payment is $3,078.59. What's the total amount of interest he'll
pay over the course of the loan?
· $608,292.40
1. When representing the seller, what duty do you owe a buyer?
· Present offers from the buyer to your seller.
(PSI) Questions with Correct Answers
1. The fewer properties on the market, the greater the scarcity. What's the effect on
prices?
Prices are pushed upward
1. Frank owns a property on which there is walkway to the beach shared by his
neighbors on either side. What is Frank's property?
· Servient estate
1. Simon is looking for a facility for a large grocery distribution operation. He found
two options, one of which is offering him a triple net lease, and the other an absolute net
lease. Why is his attorney arguing against the latter?
· An absolute net lease has no legal defenses if Simon fails to pay.
1. The Johnsons have owned a small restaurant for more than 20 years. It's open for
lunch and dinner six days a week, and 80% of its weekday revenue comes from the
happy hour drink and appetizer specials. The town in which their restaurant is located
recently constructed a new middle school and stripped the liquor license from the
Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet
from a school property. The Johnsons have accused the town of _____.
· Inverse condemnation
1. Local authorities lack police power over which of the following?
· Federal government construction projects
,1. The economic principle of ______ says that when there are two houses in the same
neighborhood with the same size, appeal, and utility, the lower-priced one will tend to
sell first.
· Substitution
1. Which type of agent is an escrow officer?
Limited agent
1. Which of these regarding the impact of the Brownfields Law is true?
· The Smiths have discovered chemical contamination on the property deed to them by their
late parents. The Brownfields Law may provide funds to help them clean up the site.
1. If a property's income value is $200,000 and it's earning a net operating income of
$40,000, what is the cap rate?
· 20%
1. A property is 330 feet long by 100 feet wide. How many square feet is the property?
· 33,000
1. Picture a drawing of a section of land. Where is Township 1 located?
· Upper right (NE) corner
1. Donald and Martina decided to purchase a newly built home, and their agent, Ed,
recommended that they get a professional home inspection done. The couple tells Ed
that they thought inspections were only for older homes. How should Ed respond to
that?
· Ed should remind them that every dwelling, no matter the age or size, should have a home
inspection.
, 1. Which one of these statements accurately represents one of the required elements in a
deed?
· The deed includes an act of conveyance.
1. Alison and Brent are financing their house purchase of $232,500 with an FHA loan.
Their credit score qualifies them for the minimum down payment. What do they need to
put down?
· $8,137.50
1. Dean and Michael have an oral contract. Dean said he would sell Michael his bike in
return for Michael's vinyl album collection. What does the record collection represent?
· Consideration
1. Which of the following is true about the security of your clients' information?
· Client data can be compromised if the brokerage's computer system is compromised.
1. The Crows gave their son, Gibson, the family property, so long as he doesn't join his
friend's rock band. If he joins the band, the property goes back to them. What type of
estate is this?
· Fee simple determinable
1. A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly
principal and interest payment is $3,078.59. What's the total amount of interest he'll
pay over the course of the loan?
· $608,292.40
1. When representing the seller, what duty do you owe a buyer?
· Present offers from the buyer to your seller.
