PSI National Real Estate UPDATED ACTUAL Exam Questions and CORRECT Answers

PSI National Real Estate
UPDATED ACTUAL Exam Questions and CORRECT Answers

Question 1.
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.


Question 2.
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


Question 3.
State laws differ on whether a buyer is entitled to know about

Correct Answer: a suicide that occurred in the house last year.


Question 4.
A lawsuit for inverse condemnation may be brought by

Correct Answer: a homeowner


Question 5.
When is racial discrimination in the rental of rooms or apartments permitted?

Correct Answer: Under no circumstances


Question 6.
The real estate broker who is listing a house for sale should personally verify

Correct Answer: the number of square feet in the building


Question 7.
Real property can be converted to personal property by

Correct Answer: Severance


Question 8.
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


Question 9.
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


Question 10.
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.


Question 11.
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.


Question 12.
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 13.
The FHA functions MOST like

Correct Answer: an insurance company


Question 14.
They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller.

Correct Answer: discount points

,Question 15.
When land is conveyed to a trustee, the trustee may

Correct Answer: do whatever is permitted under the trust agreement


Question 16.
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer was reviewing the counteroffer, the owner received a
better offer. The owner can accept the second offer if

Correct Answer: the owner withdraws the counteroffer before it is accepted.


Question 17.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the
agreement may be unenforceable because

Correct Answer: the agreement does not comply with the Statute of Frauds


Question 18.
Earnest money should be deposited into a trust account

Correct Answer: in a timely manner, according to state laws


Question 19.
A deed restriction is applicable to the activities of

Correct Answer: all owners, present and future


Question 20.
An easement can be terminated by

Correct Answer: prescription


Question 21.
Depreciation is calculated based on the

Correct Answer: cost of the building only


Question 22.
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence?

Correct Answer: Market data

, Question 23.
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages from the
dumping prior to the sale of the property?

Correct Answer: Seller


Question 24.
The escrow officer or closing agent MUST give information regarding the sales price and
seller's social security number to

Correct Answer: IRS


Question 25.
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following BEST
describes this relationship?

Correct Answer: Agency coupled with an interest


Question 26.
If you own a building free and clear that is worth $115,000 and want an annual return of
12%, what net income is needed each month?

Correct Answer: $1,150


Question 27.
Usury laws were enacted to protect the

Correct Answer: borrower
• At the time of listing, the seller tells the listing agent they are moving
because the neighbor has loud parties every weekend. The agent should
-✓✓tell potential buyers about the parties


Question 28.
When one of the parties to an agreement fails to perform one of its conditions, that
contract is deemed to be

Correct Answer: breached


Question 29.
Which of the following is NOT a consideration in the definition of market value?

Correct Answer: Buyer and seller must agree to appraised value