PSI National Real Estate 2027 Exam Updated Complete
Questions and 100% Correct Answers (Exam Ready Pack)
Question 1.
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of
Correct Answer: anticipation.
Question 2.
A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of
Correct Answer: economic or external obsolescence.
Question 3.
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which
Correct Answer: most homes are larger than the sale home.
Question 4.
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest
Correct Answer: a competitive market analysis to determine the property's
value.
Question 5.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price?
Correct Answer: Business district zoned for a six story office building.
Question 6.
When the sellers are lending part of the purchase price, they may secure the debt either
with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust is that
Correct Answer: foreclosure is usually simpler and faster.
Question 7.
Even if a loan applicant's current income seems adequate 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
, Correct Answer: commission sales.
Question 8.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation?
Correct Answer: Confirm with the seller's broker, the lender and the closing
entity that the closing must be delayed to allow for a new seven-day waiting
period because of the interest rate revision.
Question 9.
The FHA functions MOST like
Correct Answer: an insurance company.
• Federal Truth-in-Lending laws are also known as -✓✓Regulation Z.
Question 10.
Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)?
Correct Answer: Regulation Z.
Question 11.
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.
Question 12.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the
Correct Answer: prepayment penalties and rebates.
Question 13.
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called
Correct Answer: a mechanic's lien.
Questions and 100% Correct Answers (Exam Ready Pack)
Question 1.
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of
Correct Answer: anticipation.
Question 2.
A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of
Correct Answer: economic or external obsolescence.
Question 3.
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which
Correct Answer: most homes are larger than the sale home.
Question 4.
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest
Correct Answer: a competitive market analysis to determine the property's
value.
Question 5.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price?
Correct Answer: Business district zoned for a six story office building.
Question 6.
When the sellers are lending part of the purchase price, they may secure the debt either
with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust is that
Correct Answer: foreclosure is usually simpler and faster.
Question 7.
Even if a loan applicant's current income seems adequate 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
, Correct Answer: commission sales.
Question 8.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation?
Correct Answer: Confirm with the seller's broker, the lender and the closing
entity that the closing must be delayed to allow for a new seven-day waiting
period because of the interest rate revision.
Question 9.
The FHA functions MOST like
Correct Answer: an insurance company.
• Federal Truth-in-Lending laws are also known as -✓✓Regulation Z.
Question 10.
Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)?
Correct Answer: Regulation Z.
Question 11.
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.
Question 12.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the
Correct Answer: prepayment penalties and rebates.
Question 13.
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called
Correct Answer: a mechanic's lien.
