PSI Maryland Practice Exam
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
1. If an older building cannot be air-conditioned, it is an B. Functional obsoles-
example of ___________ ? cence.
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration
2. An appraiser MUST be licensed or certified to handle B. $250,000.
Federally related work on residential property valued
at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000.
3. The main difference between tenancy in common and A. His undivided interest
joint tenancy is that with tenancy in common, when a passes to his heirs.
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.
4. A buyer wants to purchase a home for $160,000 with a D. $26,720
15% down payment. The lender charges 2 points. How
much money does the buyer need up front to make
the purchase?
, PSI Maryland Practice Exam
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
A. $2,720
B. $24,000
C. $24,408
D. $26,720
5. When a home is purchased using an ARM, the monthly D. Vary over the life of the
loan payment on the mortgage will ____________ ? loan depending on fluctu-
ations in the interest rate
A. Rise slightly in each adjustment period until the cap to which the loan is refer-
is reached. enced.
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 fluctu-
ations in the interest rate to which the loan is refer-
enced.
6. An exception to title insurance coverage is ___________? D. Defects that clearly ap-
pear in the title search.
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search.
7. Under the common law of agency, licensees owe the C. Indemnification.
broker with whom they are associated all of the follow-
ing duties EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnification.
D. Full disclosure.
, PSI Maryland Practice Exam
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
8. The buyer is assuming a mortgage presently on the A. Credit buyer $110,000;
property in the amount of $110,000. What is the ad- debit seller $110,000.
justment 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.
9. A mentally disabled person who has been declared C. The person appointed
incompetent by a judge wishes to enter into a contract. by the court to act for
Under what conditions can such a person do so? the disabled person must
contract on his or her be-
A. The person must obtain prior written approval by a half.
licensed psychiatrist or psychologist.
B. The person must be capable of understanding the
transaction.
C. The person appointed by the court to act for the
disabled person must contract on his or her behalf.
D. The person may enter a contract under any condi-
tions, because the law prohibits discrimination against
persons with disabilities.
10. Even if a loan applicant's current income seems ad- B. Commission sales.
equate to qualify for a certain loan, the Equal Credit
Opportunity Act allows a lender to refuse the loan as
a high risk if the applicant's main source of income is
___________?
A. Alimony.
B. Commission sales.
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
1. If an older building cannot be air-conditioned, it is an B. Functional obsoles-
example of ___________ ? cence.
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration
2. An appraiser MUST be licensed or certified to handle B. $250,000.
Federally related work on residential property valued
at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000.
3. The main difference between tenancy in common and A. His undivided interest
joint tenancy is that with tenancy in common, when a passes to his heirs.
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.
4. A buyer wants to purchase a home for $160,000 with a D. $26,720
15% down payment. The lender charges 2 points. How
much money does the buyer need up front to make
the purchase?
, PSI Maryland Practice Exam
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
A. $2,720
B. $24,000
C. $24,408
D. $26,720
5. When a home is purchased using an ARM, the monthly D. Vary over the life of the
loan payment on the mortgage will ____________ ? loan depending on fluctu-
ations in the interest rate
A. Rise slightly in each adjustment period until the cap to which the loan is refer-
is reached. enced.
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 fluctu-
ations in the interest rate to which the loan is refer-
enced.
6. An exception to title insurance coverage is ___________? D. Defects that clearly ap-
pear in the title search.
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search.
7. Under the common law of agency, licensees owe the C. Indemnification.
broker with whom they are associated all of the follow-
ing duties EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnification.
D. Full disclosure.
, PSI Maryland Practice Exam
PSI Maryland Practice Exam
Study online at https://quizlet.com/_9p7yxi
8. The buyer is assuming a mortgage presently on the A. Credit buyer $110,000;
property in the amount of $110,000. What is the ad- debit seller $110,000.
justment 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.
9. A mentally disabled person who has been declared C. The person appointed
incompetent by a judge wishes to enter into a contract. by the court to act for
Under what conditions can such a person do so? the disabled person must
contract on his or her be-
A. The person must obtain prior written approval by a half.
licensed psychiatrist or psychologist.
B. The person must be capable of understanding the
transaction.
C. The person appointed by the court to act for the
disabled person must contract on his or her behalf.
D. The person may enter a contract under any condi-
tions, because the law prohibits discrimination against
persons with disabilities.
10. Even if a loan applicant's current income seems ad- B. Commission sales.
equate to qualify for a certain loan, the Equal Credit
Opportunity Act allows a lender to refuse the loan as
a high risk if the applicant's main source of income is
___________?
A. Alimony.
B. Commission sales.
