PSI Maryland Practice Exam (National Real Estate Salesperson Practice Exam (80 questions) with complete solutions

If an older building cannot be air-conditioned, it is an example of ___________ ? A. Economic obsolescence. B. Functional obsolescence. C. Physical deterioration. D. External deterioration correct answer: B. Functional obsolescence. An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than ___________? A. $100,000. B. $250,000. C. $500,000. D. $1,000,000. correct answer: B. $250,000. The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, _____________ A. His undivided interest passes to his heirs. B. The last surviving owner holds title in severalty. C. His undivided interest passes to the surviving co-owners. D. The principle of the right to survivorship determines the rights of the surviving co-owners. correct answer: A. His undivided interest passes to his heirs. A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase? A. $2,720 B. $24,000 C. $24,408 D. $26,720 correct answer: D. $26,720 When a home is purchased using an ARM, the monthly loan payment on the mortgage will ____________ ? A. Rise slightly in each adjustment period until the cap is reached. B. Be adjusted automatically to ensure that negative amortization does not occur. C. Be based on a very low interest rate to begin with, but will rise to the market rate at the first adjustment. D. Vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced. correct answer: D. Vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced. An exception to title insurance coverage is ___________? A. Forged documents. B. Defects found in public newspapers. C. Incorrect records of marital status. D. Defects that clearly appear in the title search. correct answer: D. Defects that clearly appear in the title search. Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT _________? A. Loyalty. B. Competence. C. Indemnification. D. Full disclosure. correct answer: C. Indemnification. The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing? A. Credit buyer $110,000; debit seller $110,000. B. Credit seller $110,000; debit buyer $110,000. C. Credit buyer $110,000; no adjustment to seller. D. Credit seller $110,000; no adjustment to buyer. corr