PSI REAL ESTATE SALESPERSON PRACTICE EXAM
WITH ACCURATE SOLUTIONS
A couple listed their home with a broker. After 2 months, the seller found a buyer,
and the sale closed. The seller was not obligated to pay a commission to the
broker. This listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing. - ANSWER-an exclusive agency listing
What critical aspect of the property inspection process MUST licensees convey to
prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the contract.
4. Likelihood that the inspection will generate a list of items sellers must repair. -
ANSWER-Need for inspections to be completed within the time stated in the
contract.
An exception to title insurance coverage is
1. forged documents.
,2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. - ANSWER-defects that clearly
appear in the title search.
If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-
1/2%, what is the largest loan (rounded to the nearest $100) this buyer can
afford? (BE SURE TO USE THE AMORTIZATION TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 - ANSWER-$176,100
State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. - ANSWER-a suicide that occurred
in the house last year.
Three identical homes in a neighborhood were listed at the same time in a market
where demand was constant. According to the law of supply and demand, which
would have sold for the lowest price?
, 1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given - ANSWER-The first sold.
A property management plan may serve different purposes for different owners,
and generally has to strike a balance between preservation of the property's value
and generation of income. Which of the following owners would MOST likely
prefer a property manager who emphasizes maintenance of value over
profitability?
1. An individual entrepreneur who owns several apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. - ANSWER-The Department of
Housing and Urban Development.
Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. - ANSWER-Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
WITH ACCURATE SOLUTIONS
A couple listed their home with a broker. After 2 months, the seller found a buyer,
and the sale closed. The seller was not obligated to pay a commission to the
broker. This listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing. - ANSWER-an exclusive agency listing
What critical aspect of the property inspection process MUST licensees convey to
prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the contract.
4. Likelihood that the inspection will generate a list of items sellers must repair. -
ANSWER-Need for inspections to be completed within the time stated in the
contract.
An exception to title insurance coverage is
1. forged documents.
,2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. - ANSWER-defects that clearly
appear in the title search.
If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-
1/2%, what is the largest loan (rounded to the nearest $100) this buyer can
afford? (BE SURE TO USE THE AMORTIZATION TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 - ANSWER-$176,100
State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. - ANSWER-a suicide that occurred
in the house last year.
Three identical homes in a neighborhood were listed at the same time in a market
where demand was constant. According to the law of supply and demand, which
would have sold for the lowest price?
, 1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given - ANSWER-The first sold.
A property management plan may serve different purposes for different owners,
and generally has to strike a balance between preservation of the property's value
and generation of income. Which of the following owners would MOST likely
prefer a property manager who emphasizes maintenance of value over
profitability?
1. An individual entrepreneur who owns several apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. - ANSWER-The Department of
Housing and Urban Development.
Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. - ANSWER-Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
