PSI National Exam for Real Estate| 544 QUESTIONS| WITH COMPLETE SOLUTIONS

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called correct answer: a contract Antitrust laws prohibit competing brokers from all of the following correct answer: 1. boycotting other brokers in the marketplace. 2. dividing the market to restrict competition. 3. agreeing to set sales commissions and management rates. When a sewer line is installed down a rural road, the cost will probably be shared by correct answer: all current owners of real estate fronting on that road State laws differ on whether a buyer is entitled to know about correct answer: a suicide that occurred in the house last year. A lawsuit for inverse condemnation may be brought by correct answer: a homeowner When is racial discrimination in the rental of rooms or apartments permitted? correct answer: Under no circumstances The real estate broker who is listing a house for sale should personally verify correct answer: the number of square feet in the building Real property can be converted to personal property by correct answer: Severance Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE? correct answer: Both contracts are valid Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. In many states, the common law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with property. In others, all water rights are controlled by the state under the doctrine of correct answer: prior appropriation The purpose of requiring an earnest money deposit in a real estate sales contract is to correct answer: provide evidence of the buyer's intention to carry out the contract. A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) correct answer: $409.20. A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to correct answer: demand immediate payment of the entire note The FHA functions MOST like correct answer: an insurance company 1. They are used to buy down interest rate. 2. They are a function of the marketpla