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. - ANS☑☑---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. - ANS☑☑---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. - ANS☑☑---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 - ANS☑☑---$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. - ANS☑☑---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 - ANS☑☑---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. - ANS☑☑---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. - ANS☑☑---Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
, 2. a mortgage company.
3. an investment group.
4. an insurance company. - ANS☑☑---an insurance company.
In the sale of property, there is often confusion over whether an item is a
fixture or personal property. What is the best way to avoid this confusion?
1. Apply the legal tests of a fixture.
2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales contract.
4. Use the legal definition of a fixture as any permanently attached item. -
ANS☑☑---Specify questionable items of property in the written sales
contract.
A salesperson in a branch office is sued for damages by a buyer after the
salesperson misrepresents a property. Who has the ultimate responsibility for
the salesperson's actions?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson - ANS☑☑---the supervising broker
A seller's statement in a property disclosure document means
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. - ANS☑☑---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. - ANS☑☑---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. - ANS☑☑---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 - ANS☑☑---$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. - ANS☑☑---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 - ANS☑☑---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. - ANS☑☑---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. - ANS☑☑---Regulation Z.
The FHA functions MOST like
1. a bank or savings and loan association.
, 2. a mortgage company.
3. an investment group.
4. an insurance company. - ANS☑☑---an insurance company.
In the sale of property, there is often confusion over whether an item is a
fixture or personal property. What is the best way to avoid this confusion?
1. Apply the legal tests of a fixture.
2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales contract.
4. Use the legal definition of a fixture as any permanently attached item. -
ANS☑☑---Specify questionable items of property in the written sales
contract.
A salesperson in a branch office is sued for damages by a buyer after the
salesperson misrepresents a property. Who has the ultimate responsibility for
the salesperson's actions?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson - ANS☑☑---the supervising broker
A seller's statement in a property disclosure document means
